Strategy & Formulation Final Exam Study Guide: Ethics and Internal

Analysis
Introduction
The Strategy & Formulation final exam in business school is a rigorous
assessment of your ability to apply strategic frameworks and ethical
reasoning to real-world business scenarios. This comprehensive study guide
is designed to help you master the core concepts, frameworks, and practical
tools required for success, especially in open-book exam settings. Drawing
on authoritative strategy textbooks and current best practices, the guide
covers internal analysis frameworks (VRIO, SWOT, Value Chain), ethical
decision-making models (utilitarianism, deontology, stakeholder theory,
virtue, care), and exam strategies. It also provides templates, tables, sample
case walkthroughs, and examiner expectations, ensuring you are fully
prepared to analyze, synthesize, and justify your answers with clarity and
depth.
Exam Structure and Formatting Guidance
Understanding the Strategy & Formulation Final Exam
Business school strategy exams typically require students to analyze case
studies, diagnose organizational strengths and weaknesses, and recommend
strategic actions using established frameworks. Ethics questions challenge
you to evaluate dilemmas from multiple perspectives and justify your
reasoning. Exams may be open-book, allowing reference to notes and
textbooks, but demand higher-order thinking, synthesis, and application
rather than rote recall2.
Key exam formats:
 Case study analysis (short or extended)
 Framework application (VRIO, SWOT, Value Chain)
 Ethical dilemma evaluation (using multiple models)
  Short-answer and essay questions requiring structured argumentation
Open-book exam tips:
 Organize your materials for rapid access (summary sheets, color-coded
tabs, concise tables)
 Prepare concise definitions and memory aids for key concepts
 Practice structuring answers with clear headings, logical flow, and
explicit citations
 Focus on analysis and synthesis, not just description2
Internal Analysis Frameworks: Overview and Application
The Role of Internal Analysis in Strategy
Internal analysis is the foundation of strategic diagnosis. It enables
organizations to identify their unique resources, capabilities, and activities
that drive competitive advantage. The three most widely used frameworks—
VRIO, SWOT, and Value Chain Analysis—each offer distinct perspectives
and can be integrated for a holistic view5.
VRIO Framework: Deep Dive
What is VRIO?
The VRIO framework, developed by Jay Barney, is a cornerstone of the
resource-based view (RBV) of strategy. It evaluates a firm's resources and
capabilities across four dimensions:
VRIO
Key Question Implication
Dimension
Does the resource enable the Valuable resources are
Value firm to exploit opportunities or essential for competitive
neutralize threats? advantage.
Rarity Is the resource controlled by few Rare resources provide
VRIO
Key Question Implication
Dimension
or no competitors? differentiation.
Is it costly or difficult for Inimitable resources sustain
Imitability
competitors to imitate? advantage.
Is the firm organized to capture Organizational alignment is
Organization
value from the resource? required to realize potential.
Outcome Mapping:
 Valuable only: Competitive parity
 Valuable + Rare: Temporary advantage
 Valuable + Rare + Inimitable: Unused advantage (if not organized)
 All four: Sustained competitive advantage791113
Step-by-Step VRIO Application
1. Identify Resources and Capabilities
o Catalog tangible (e.g., patents, machinery) and intangible (e.g.,
brand, culture, know-how) assets5.
2. Evaluate Each Resource
o Ask the four VRIO questions for each asset.
o Use a standardized rubric or scoring system for consistency10.
3. Map Competitive Implications
o Place resources in a VRIO matrix to visualize which drive
sustained advantage.
4. Develop Enhancement Strategies
o Invest in protecting and leveraging VRIO resources.
 o Address gaps in organization or imitability.
5. Monitor and Update
o Reassess resources regularly as markets and technologies
evolve4.
VRIO Matrix Template
Competitive
Resource/Capability Value Rarity Inimitability Organization
Implication
Sustained
Brand Reputation ✔️ ✔️ ✔️ ✔️
Advantage
Temporary
Proprietary Tech ✔️ ✔️ ❌ ✔️
Advantage
Efficient Supply Competitive
✔️ ❌ ❌ ✔️
Chain Parity
How to use: For each resource, mark whether it meets each VRIO criterion.
The intersection determines its strategic value11.
VRIO Case Study Example: Hermès
Hermès’ Leather Craftsmanship:
 Value: Iconic products command premium prices and long waitlists.
 Rarity: Limited roster of artisans, strict output control.
 Imitability: Proprietary techniques, causal ambiguity, social
complexity.
 Organization: Decentralized ateliers, family governance, embedded
culture of excellence.
Result: Hermès achieves sustained competitive advantage by aligning unique
capabilities with organizational support.
Step-by-step application:
 1. Identify Hermès’ key resource: artisanal leather craftsmanship.
2. Evaluate VRIO criteria: all met.
3. Strategic implication: invest in artisan training, protect supply chain,
reinforce culture.
4. Monitor: periodic reviews, adapt to market trends.
Common VRIO Pitfalls
 Confusing VRIO with external analysis (SWOT/PESTEL)
 Failing to justify why a resource is valuable, rare, or inimitable
 Overlooking the ‘organization’ factor (structure, culture, incentives)
 Listing too many resources without prioritization15
SWOT Analysis: Linking Internal and External Factors
What is SWOT?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a
versatile tool for mapping a firm’s internal capabilities
(strengths/weaknesses) against external conditions (opportunities/threats)17.
SWOT
Description Example
Quadrant
Internal assets/capabilities that Strong brand, proprietary
Strengths
provide advantage tech
High costs, outdated
Weaknesses Internal gaps or limitations
systems
New markets, regulatory
Opportunities External trends or openings
changes
Intense competition,
Threats External risks or challenges
economic downturn
How to Apply SWOT
1. Identify Internal Strengths and Weaknesses
o Use VRIO and Value Chain to pinpoint core competencies and
gaps.
2. Scan External Opportunities and Threats
o Use PESTEL, Five Forces, market research.
3. Link Internal to External
o Match strengths to opportunities (leverage for growth).
o Address weaknesses to defend against threats.
4. Develop Strategic Options
o Prioritize actions that exploit strengths and mitigate weaknesses.
SWOT Case Study Example: Lululemon
Strengths: Strong brand identity, premium product offering, community
engagement, supply chain management. Weaknesses: High price point,
limited diversification, dependence on North America. Opportunities:
Global expansion, product line growth, e-commerce, sustainability. Threats:
Intense competition, economic downturns, changing fashion trends, supply
chain disruptions.
Strategic insight: Lululemon should leverage its brand and supply chain
strengths to expand globally and diversify products, while addressing price
sensitivity and market dependence.
Integrating SWOT and VRIO
 Use SWOT for horizon scanning; apply VRIO for deep analysis of
strengths.
  Example: A strength identified in SWOT (e.g., proprietary technology)
should be tested with VRIO to determine if it is a source of sustained
advantage4.
Value Chain Analysis: Mapping Activities for Advantage
What is Value Chain Analysis?
Michael Porter’s Value Chain model breaks down a firm’s activities into
primary and support functions, revealing how each contributes to value
creation and competitive advantage19.
Primary Activities Description
Inbound Logistics Receiving, storing, and distributing inputs
Operations Transforming inputs into products/services
Outbound Logistics Warehousing, distribution, delivery
Marketing & Sales Promoting and selling products/services
Service Post-sale support, maintenance, customer care
Support Activities Description
Firm Infrastructure Finance, management, legal systems
Human Resource Mgmt Recruitment, training, retention
Technology Development R&D, process improvement, innovation
Procurement Acquiring inputs, equipment, resources
How to Apply Value Chain Analysis
1. Map All Activities
o List each primary and support activity in your organization.
2. Identify Cost and Differentiation Drivers
o Analyze which activities drive costs or create differentiation.
 3. Benchmark Against Competitors
o Compare efficiency, quality, and innovation.
4. Pinpoint Core Competencies
o Activities that are hard to imitate and drive value are potential
sources of advantage.
5. Optimize and Invest
o Streamline inefficient activities, invest in differentiators.
Value Chain Table Example
Differentiation Strategic
Activity Cost Driver
Driver Importance
Inbound Supplier
Quality of inputs High
Logistics integration
Operations Automation Product quality High
Marketing &
Digital channels Brand reputation Medium
Sales
Service 24/7 support Customer loyalty High
How to use: For each activity, note whether it is a major source of cost
savings or differentiation, and prioritize accordingly19.
Value Chain Case Study Example: Amazon
 Inbound Logistics: Advanced warehousing, supplier integration.
 Operations: Automated fulfillment centers, robotics.
 Outbound Logistics: Rapid delivery (Prime, same-day).
 Marketing & Sales: Personalized recommendations, targeted ads.
 Service: Easy returns, customer support, subscription services.
Strategic insight: Amazon’s tightly integrated value chain creates efficiency,
cost savings, and customer loyalty, driving sustained competitive advantage.
Integrating VRIO, Value Chain, and SWOT
A robust internal analysis combines all three frameworks:
 Start with Value Chain: Map activities to identify where value is
created.
 Apply VRIO: Test key activities/resources for value, rarity, imitability,
and organization.
 Use SWOT: Link strengths and weaknesses to external opportunities
and threats.
Example integration:
 Value Chain identifies proprietary logistics as a key activity.
 VRIO confirms logistics are valuable, rare, inimitable, and well-
organized.
 SWOT links this strength to the opportunity of expanding into new
markets.
Result: Strategic recommendation to invest in logistics for global expansion.
Ethical Decision-Making Models: Overview and Application
Why Ethics Matter in Strategy
Ethical reasoning is integral to strategic decision-making. Companies face
complex dilemmas involving stakeholders, societal impacts, and long-term
consequences. Business school exams test your ability to analyze these
dilemmas using multiple frameworks and justify your recommendations21.
Core Ethical Frameworks
1. Utilitarianism (Consequentialism)
  Principle: Maximize aggregate welfare (“greatest good for the greatest
number”).
 Application: Weigh net benefits and harms across all affected parties.
 Business examples: Cost-benefit analyses, layoff decisions,
environmental trade-offs, CSR initiatives23.
Strengths: Focuses on outcomes, practical for policy decisions. Limitations:
May justify harmful actions if overall benefit is positive; difficulty in
predicting consequences.
2. Deontology (Duty-Based Ethics)
 Principle: Adherence to moral rules and duties, regardless of
outcomes.
 Application: Compliance, professional codes, fiduciary duties, rights
protection.
 Business examples: Whistleblower protection, privacy, anti-
discrimination21.
Strengths: Provides clear rules, protects individual rights. Limitations: Can
be rigid, may ignore context or consequences.
3. Stakeholder Theory
 Principle: All affected parties deserve consideration; balance
competing interests.
 Application: Corporate governance, CSR, board responsibilities.
 Business examples: Employee benefits, community impact, supplier
relations.
Strengths: Holistic, promotes long-term value creation. Limitations:
Difficult to prioritize among stakeholders.
4. Virtue Ethics
  Principle: Focus on moral character and virtues (honesty, courage,
fairness).
 Application: Leadership, organizational culture, ethical role modeling.
 Business examples: Integrity in decision-making, cultivating ethical
culture.
Strengths: Encourages consistent ethical behavior. Limitations: Lacks clear
decision rules; subjective.
5. Care-Based Ethics
 Principle: Prioritizes relationships, empathy, and responsiveness to
others’ needs.
 Application: Power imbalances, dependent relationships, social
responsibility.
 Business examples: Employee welfare, customer care, diversity and
inclusion.
Strengths: Context-sensitive, addresses vulnerability. Limitations: May
conflict with impartial rules.
6. Rights-Based and Social Contract Theories
 Principle: Respect inherent individual rights; ethical norms arise from
social agreements.
 Application: Privacy, autonomy, due process, labor standards.
 Business examples: Data protection, fair labor practices, regulatory
compliance.
Practical Ethical Decision-Making Models
Potter Box Model
Step Description
1. Definition Gather facts, identify the ethical issue and stakeholders
Step Description

Identify values of decision-maker, organization, and

2. Values
stakeholders
3. Principles Select relevant ethical principles (utility, rights, justice, care)
Determine to whom loyalty is owed (client, public, profession,
4. Loyalties
self)
Application: Systematic analysis forces separation of facts from values and
identification of competing obligations before deciding25.
PLUS Model
Filter Description
Policies Organizational rules and codes
Legal Laws and regulations
Universal Broadly accepted principles
Self Personal values and conscience
Application: Ensures decisions pass multiple ethical checkpoints before
implementation; practical for compliance contexts.
Blanchard-Peale Three Questions
1. Is it legal?
2. Is it balanced?
3. How does it make me feel?
Application: Quick gut-check for time-pressured decisions; combines legal,
fairness, and intuition.
Seven-Step Guide
 1. Identify problem
2. Gather information
3. Evaluate alternatives
4. Decide
5. Implement
6. Monitor
7. Reflect
Application: Comprehensive process with built-in accountability and
documentation; valuable in organizational settings.
Ethics Comparison Table
Key
Model/Framework Focus Strengths Limitations
Question
What
May justify
produces Practical,
Utilitarianism Outcomes harm, hard to
greatest outcome-based
predict
good?
What rules Clear rules,
Rigid, ignores
Deontology Duties/Rights must be rights
context
upheld? protection
Who is Difficult to
Holistic, long-
Stakeholder Theory Relationships affected balance
term
and how? interests
Virtue Ethics Character What Consistent Lacks
would a behavior decision rules
person of
integrity
 Key
Model/Framework Focus Strengths Limitations
Question
do?
Who needs May conflict
Context-
Care Ethics Empathy care and with
sensitive
support? impartiality
What do
facts, Time-
values, Structured consuming,
Potter Box Process
principles, analysis judgment-
loyalties based
suggest?
Does it
meet
May miss
policy, law, Practical,
PLUS Model Compliance philosophical
universal, comprehensive
depth
self
standards?
Applying Ethical Frameworks to Case Studies
Step-by-Step Ethical Analysis
1. Define the Dilemma
o Gather facts, identify stakeholders, clarify the ethical issue.
2. Select Frameworks
o Choose at least two models (e.g., utilitarianism and deontology)
for analysis.
3. Apply Each Framework
o For utilitarianism: weigh benefits and harms for all parties.
 o For deontology: assess whether actions violate duties or rights.
o For stakeholder theory: map interests and impacts.
o For virtue/care: consider character and relationships.
4. Compare Conclusions
o Note where frameworks agree or diverge.
5. Justify Recommendation
o Argue for the most ethically defensible option, acknowledging
trade-offs.
Sample Ethical Case Walkthrough
Scenario: A multinational discovers its supplier uses child labor, legal in that
country but against company policy.
 Utilitarianism: Ending the relationship may harm local families (lost
income) but benefits children (education, welfare) and protects
company reputation. Net benefit depends on alternatives provided.
 Deontology: Child labor violates universal rights and company duties;
relationship should end regardless of consequences.
 Stakeholder Theory: Must balance interests of children, families,
company, customers, and society.
 Virtue/Care: Compassion for vulnerable children and families; seek
solutions that support welfare.
Recommendation: End relationship but invest in local community support,
education, and alternative employment. Justify using both outcome and duty-
based reasoning, and address stakeholder impacts.
Using Frameworks Effectively in Open-Book Exams
Time Management and Answer Structure
  Survey all questions first: Allocate time based on marks and
complexity.
 Answer confident questions first: Build momentum and secure easy
marks.
 Structure answers with headings: Use clear sections for each
framework or argument.
 Cite frameworks and sources explicitly: Reference textbook concepts
and case facts2.
Framework Application Checklist
Step Action
Identify relevant frameworks for the question (VRIO, SWOT, Value
1
Chain, ethics)
2 Apply each framework systematically (step-by-step)
3 Use tables or matrices for clarity, but always elaborate in paragraphs
4 Link analysis to case facts and strategic recommendations
5 Justify conclusions with evidence and reasoning
6 Review and proofread for completeness and clarity
Templates and Cheat-Sheet Tables
VRIO Matrix
Resource/ Inimitabi Organizat Competitive
Value Rarity
Capability lity ion Implication
[Sustained/
[Insert] [✔️/❌] [✔️/❌] [✔️/❌] [✔️/❌]
Temporary/Parity]
Value Chain Table
Activity Cost Driver Differentiation Driver Strategic Importance
[Insert] [✔️/❌] [✔️/❌] [High/Medium/Low]
SWOT Grid
Strengths Weaknesses
[Insert] [Insert]
Opportunities Threats
[Insert] [Insert]
Ethics Comparison Table
Model/Framework Focus Key Question Strengths Limitations
[Insert] [Insert] [Insert] [Insert] [Insert]
Sample Case Study Walkthroughs: Internal Analysis and Ethics
Case 1: Tech Startup VRIO and Ethics
Scenario: A tech startup has developed a proprietary AI algorithm for
personalized healthcare recommendations.
VRIO Analysis:
 Value: Addresses market need for personalized care.
 Rarity: Few competitors have similar technology.
 Imitability: Algorithm is protected by patents and complex data sets.
 Organization: Startup has agile teams, strong data infrastructure.
Result: Sustained competitive advantage.
Ethical Dilemma: Should the startup sell user data to pharmaceutical
companies for revenue?
 Utilitarianism: Selling data could fund further innovation and benefit
users with better products, but risks privacy harm.
  Deontology: Violates user privacy rights if done without consent.
 Stakeholder Theory: Must balance interests of users, company,
pharma partners, and society.
Recommendation: Only sell anonymized data with explicit user consent;
invest in privacy safeguards.
Case 2: Retailer SWOT and Value Chain
Scenario: A retailer faces declining sales due to online competition.
SWOT Analysis:
 Strengths: Established brand, loyal customer base.
 Weaknesses: Outdated e-commerce platform, high overhead costs.
 Opportunities: Growth in online shopping, potential for digital
transformation.
 Threats: Intense competition from online-only retailers.
Value Chain Analysis:
 Inbound Logistics: Efficient supplier relationships.
 Operations: Need for automation and digital integration.
 Marketing & Sales: Strong in-store experience, weak online presence.
 Service: High customer satisfaction in stores.
Strategic Recommendation: Invest in e-commerce platform, leverage brand
for omnichannel experience, streamline operations for cost savings.
Ethical Dilemma: Should the retailer automate jobs, risking layoffs?
 Utilitarianism: Automation may improve efficiency and long-term
viability, but harms employees.
 Deontology: Duty to treat employees fairly; consider retraining and
support.
  Stakeholder Theory: Balance interests of employees, shareholders,
customers.
Recommendation: Implement automation with retraining programs and
phased transitions.
Common Pitfalls and Examiner Expectations
Pitfalls to Avoid
 Superficial application: Merely describing frameworks without
applying them to the case.
 Forcing frameworks: Using a model where it does not fit the question.
 Lack of justification: Failing to explain why a resource is valuable,
rare, or inimitable.
 Ignoring organization: Overlooking the need for structure and culture
to exploit resources.
 Neglecting stakeholder impacts: Focusing only on shareholders or
profits in ethics questions.
 Poor answer structure: Disorganized, unclear, or incomplete
responses.
What Examiners Look For
 Direct application of frameworks to case facts
 Structured, logical, and well-argued answers
 Explicit justification for recommendations
 Integration of multiple perspectives (internal analysis and ethics)
 Clear citations and reference to textbook concepts
 Critical thinking and synthesis, not just description
  Use of tables for clarity, but always followed by detailed
explanation
Quick Scoring Rubric and Checklist for Exam Answers
Excellent (Full Needs
Criterion Satisfactory
Marks) Improvement
Framework Direct, thorough, Superficial,
Partial, generic
Application case-specific forced
Multiple perspectives,
Analysis Depth Some analysis Descriptive only
critical synthesis
Structure and Clear headings,
Some organization Disorganized
Clarity logical flow
Explicit, evidence- Lacks
Justification Some reasoning
based justification
Ethical Multiple models, Superficial,
One model, limited
Reasoning balanced biased
Tables aid clarity,
Tables present, Tables only, no
Use of Tables followed by
limited explanation context
explanation
Citation of References textbook
Some references No references
Concepts and case facts
Addresses all parts of Misses key
Completeness Most parts
question elements
Checklist:
 [ ] Frameworks applied directly to case
 [ ] Analysis goes beyond description
 [ ] Answer is well-structured and clear
  [ ] Recommendations are justified
 [ ] Multiple ethical perspectives considered
 [ ] Tables used appropriately
 [ ] Concepts and facts cited
 [ ] All question components addressed
Concise Definitions and Memory Aids
Concept Definition Memory Aid
Value, Rarity, Imitability,
VRIO "Very Rare Ideas Organize"
Organization
Strengths, Weaknesses,
SWOT "SWOT: Internal & External"
Opportunities, Threats
"Inbound, Operations,
Sequence of activities
Value Chain Outbound, Marketing,
creating value
Service"
Greatest good for greatest
Utilitarianism "Utility = Happiness"
number
Duty-based ethics, rules
Deontology "Do the right thing, always"
matter
Stakeholder
Consider all affected parties "Stake all interests"
Theory
Focus on character and
Virtue Ethics "Virtue = Good Person"
virtues
Facts, Values, Principles,
Potter Box "Potter’s Four Corners"
Loyalties
PLUS Model Policies, Legal, Universal, "PLUS: Four Filters"
Concept Definition Memory Aid
Self

. Don't misuse philosophy

 Some people misuse ideas (example: Hitler misused Nietzsche's "will
to power" idea and caused the death of 6 million Jews).
 Philosophy is not a set of ready-made answers to copy into your life.
 It helps you think for yourself about important things (love, family,
society, etc.).
3. Vietnam's problems today
 Many cultural "illnesses" in Vietnam come from poor thinking skills.
 People feel more than they think logically.
 Examples: Fake monks doing strange things, people believing weird
ideas without checking.
4. How to think better
 Use reason (logic).
 When you hear information, ask:
o Who said it? Are they an expert?
o Does it match real evidence or accepted knowledge?
 There are two big traditions in Western philosophy:
o Rationalism (duy lý): Some basic truths are already in our mind
(like cause and effect).
o Empiricism (duy nghiệm): All knowledge comes from
experience.
Kant combined both. He said our mind has built-in structures (like cause-
effect) that help us understand the world.
5. Kant's moral theory (the main topic)
Kant wrote famous books about morals. His big idea is the Categorical
Imperative – an unconditional rule that everyone must follow.
There are a few versions, but the most important ones are:
1. Universal law: Act only according to a rule that you would want to
become a universal law for everyone. Example: If you lie, ask yourself:
"What if everyone lied all the time?" → Society would break. So lying
is wrong.
2. Treat people as ends, not means: Never use a person only as a tool for
your own goals. Always respect them as valuable in themselves.
Example: You love your wife not just because she cooks well or makes
you happy (that treats her as a means). You must respect her own
happiness and dignity as an end in itself.
3. Kingdom of ends: Imagine an ideal world where everyone treats
everyone else as an end (valuable person), not just a tool. This is hard
in real life, but it is the goal to aim for.
6. Kant vs Utilitarianism
 Utilitarianism (Bentham, Mill): An action is good if it makes the most
people happy.
 Kant: Good actions come from pure duty and right intention, not from
results or happiness.
 Even if lying would make more people happy, Kant says lying is still
wrong because it breaks the universal rule.
7. Kant vs Aristotle
 Aristotle: Virtue (đức hạnh) is the middle way (trung dung) between
extremes. You need wisdom to know the right balance in each situation.
  Kant: Moral rules are absolute. You follow them because of duty, not
because of situation or feelings.
The speaker likes Kant more because the rules are clear and strict.
📊 Internal Analysis Frameworks
 VRIO Framework
o Valuable: Does the resource create value?
o Rare: Is it unique compared to competitors?
o Inimitable: Is it hard to copy?
o Organized: Is the firm structured to exploit it? → Helps identify
sustainable competitive advantages.
 SWOT Analysis
o Strengths: Internal capabilities, brand, resources.
o Weaknesses: Gaps, inefficiencies, lack of resources.
o Opportunities: Market trends, unmet needs.
o Threats: Competitors, regulation, substitutes. → Provides a
snapshot of strategic position.
 Value Chain Analysis (Porter)
o Primary activities: inbound logistics, operations, outbound
logistics, marketing & sales, service.
o Support activities: firm infrastructure, HR, technology,
procurement. → Identifies cost drivers and differentiation points.
🌍 External Analysis Frameworks
 Porter’s Five Forces
o Threat of new entrants
o Bargaining power of suppliers
 o Bargaining power of buyers
o Threat of substitutes
o Industry rivalry → Assesses industry attractiveness and
competitive pressures.
 PESTEL Analysis
o Political, Economic, Social, Technological, Environmental,
Legal factors. → Evaluates macro-environmental influences.
⚖️Ethics & Philosophy in Strategy
 Utilitarianism: Maximize overall happiness.
 Kantian Ethics: Duty-based, categorical imperative (“act only on
maxims you’d want universalized”).
 Virtue Ethics: Focus on moral character (honesty, integrity, courage).
 Stakeholder Theory: Balance interests of all stakeholders, not just
shareholders.
 Corporate Social Responsibility (CSR): Firms have obligations
beyond profit.
 Sustainability: Long-term ecological and social impact.
1. Morality as a Human Construction
Nietzsche rejects the idea that morality comes from God or universal reason.
Instead, he sees moral codes as human creations, shaped by culture, history,
and the collective needs of communities. What people call “conscience” is,
for him, the herd instinct in the individual.
2. Master and Slave Morality
 Master morality: Values strength, vitality, nobility, and excellence.
“Good” means powerful and life-affirming; “bad” simply means weak
or common.
  Slave morality: Emerges from resentment of the weak. It redefines the
strong as “evil” and elevates humility, obedience, and pity as “good.”
Nietzsche argues that most modern moral systems are forms of slave
morality, rooted in Christianity and its emphasis on meekness.
3. Self-Overcoming
For Nietzsche, morality is essentially the process of self-overcoming. This
means restraining some instincts, sublimating drives, and channeling passions
into higher forms of life. Morality is not about preserving the self as it is, but
about transforming into something greater.
4. Will to Power
Nietzsche’s central concept is the will to power — the fundamental drive
underlying all human behavior. Even reason, compassion, and morality are
refinements of deeper impulses. Morality, in this view, is a tool through
which individuals and cultures expand their power and overcome limitations.
5. Critique of Kant
Nietzsche strongly criticizes Kant’s categorical imperative, which bases
morality on duty and universal law. He sees this as lifeless, abstract, and
ultimately an extension of Christian morality disguised in philosophical
language. For Nietzsche, morality should not be about obedience to
impersonal duty, but about creating values that affirm life.
6. The Übermensch (Overman)
Nietzsche’s positive vision is the Übermensch, the individual who
transcends herd morality, creates new values, and embodies self-overcoming.
This figure represents the possibility of a higher human type, beyond
conventional good and evil.
Summary
Nietzsche’s ethics are not prescriptive rules but a critique of existing moral
systems and an exploration of morality as a human, cultural, and instinctual
phenomenon. He emphasizes:
 Morality as herd instinct
 The distinction between master and slave morality
 The role of self-overcoming
 The will to power as the foundation of all values
 The vision of the Übermensch as the creator of new values