September 2014

Dr. Pham Hoanh Son Nguyen

Department of Innovation and Development
Strategy and International
Development
I. Course presentation
3 990
4 334
4 347
4 460
7 824
11 178
11 580
13 441
17 098
20 869
806
3 343
2 893
3 503
4 017
6 929
6 273
8 375
11 348
10 626
Aldi
CBA
Auchan
Ahold
Jernimo Martins
Carrefour
Rewe Group
Tesco
Metro Group
Schwarz Group
Central Europe: Retail Banner Sales, 2009e-2014f (EUR mn)
2009
2014
Note: e - estimate; f - forecast.
Source: Planet Retail Ltd www.planetretail.net
Russia
Ukraine
Belarus
Moldova
Romania
Hungary
Poland
Bulgaria
Greece
Cyprus
FYRO
Macedonia
Albania
Serbia
Bosnia &
Herzegovina
Croatia
Slovenia
Italy
Slovakia
Czech Rep
Germany
Sweden
Lithuania
Latvia
Estonia
Finland
Norway
France
Austria
Switzerland
Luxembourg
Belgium
Netherlands
Spain
Portugal
United
Kingdom
Ireland
Denmark
2

Why these differences in terms of performance?
Why some enterprises experience success
and others failure?

1. How to draw up an effective strategy?
2. How to ensure corporate growth beyond the
evolution of home markets?
3. How can this growth be obtained?
4. How to realize an industry analysis?
5. How to realize a competition analysis?
6. How to formulate international strategies?
7. ..

3
I. Course presentation
Objectives of the
learning process
Students should be able to

1. Structure problematics in
terms of strategy and
organization;

2. Provide strategic and
operational
recommendations for
action.
A twin learning process
How?
Theoretical
Practical
Case
studies/Strategy
formulation

4
Interactive teaching
Prior reading and case preparation is absolutely indispensable








Each session will result in:
1/ Application exercise, or
2/ A small application exercise and an oral PowerPoint presentations and
written report on case treatment (prior preparation in small groups), or
3/Article analysis

I. Course presentation
Lecturer
Students
Theoretical
(e.g. competitive forces,
generic strategies)
Practical
(e.g. Sectoral analysis,
methodologies of case/example
studies)
5
Assessment
I. Course presentation
6
Fifty percent of the assessment is based on a group
project on international development of a French
company, twenty percent on group presentation, and
thirty percent on individual work
Individual work
Participation & mid-term state of progress of the group project (10
%)
Two written article analyses (20%)
Group presentation
Oral PowerPoint presentation of case treatment during the session
and submission of written report at the end of the presentation
(20 %)
Group project = Final exam
Group project: oral defence and submission of written report (50%)

I. Course presentation
Organization of the sessions (1/2)
7

Session Date Theme Activities
1 Sept. 22
2014
Course introduction
Introduction to Strategy
Application case IKEA
2 Sept. 29
2014
Business Definition Application exercise
Presentation n 1 on strategy of Apple
3 Sept. 29
2014
External Environment
Analysis
Application exercise
Industry of Automobile
4 Oct. 6
2014
Industry competition Article analysis n1
5 Oct. 8
2014
Internal organization Application exercise
Presentation n 2 on PESTEL analysis of
Musical (producer) industry
6 Oct. 15
2014
Business-level strategy

Application exercise
Presentation n 3 on pressure in the
environment of Accounting industry (5
forces model of Porter)
7 Oct. 17
2014
Corporate level strategy

Application exercise
Presentation n 4 on business model of
McDonalds
I. Course presentation
Organization of the sessions (2/2)
8
Session Date Theme Activities
8 Oct. 20
2014
Coaching (group project)

Mid-term evaluation of the
group project that will be the
subject of the final
examination
9 Oct. 20
2014
Dynamics of international
competition
Application exercise
Presentation n 5 on
business-level strategy of
PSA Peugeot Citron
10 Oct. 22
2014
Cultural distance Article analysis
11 Dec. 8
2014
Internationalization: Degree
versus Process
Application exercise
Presentation n 6 on
international strategies of
Carrefour
12 Dec. 15
2014
Coaching: project defense
preparation
Group project =
Formulation of international strategies

I. Course presentation

1. Michelin
2. Sanofi
3. Auchan
4. Renault
5. Orange
6. LVMH
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An effective process of international strategy formulation
I. Course presentation
Step 2: Macro Environment Analysis
Suggested model : PESTEL
Step 3: Analysis of Long term trends of the industry
S.m.: Life cycle of an industry
Step 4: Analysis of Competitive Environment
S.m.: Five Forces of Porter
Step 5: Analysis of the strategies of the target company and its main competitors
(Internal analysis, SWOT construction, Business Model, Corporate and Business
strategies, Strategic movements of these firms overtime)
Step 6: Formulating international strategies for the target company

10
Step 1: Business Definition
11
What is Strategy?
12
Our companys
strategy is
to integrate a
set of regional
acquisitions
were
pursuing
a global
strategy
Our strategy is to provide
unrivaled customer service
Putting strategy in its place
II. Fundamentals
Mission
Fundamental purpose
Values
Objectives
Specific targets
Strategy
The central
integrated,
externally
oriented
concept of how
we will achieve
our objectives

Supporting
Organizational
Arrangements
Structure
Process
People
Symbols
Activities
Rewards
Functional policies
Strategic analysis
Industry analysis
Customers/marketplace trends
Environmental forecast
Competitor analysis
Assessment of internal
strengths, weaknesses, resources
Source: Hambrick & Fredrickson (2001)
13
14
II. Fundamentals
Economic
Logic
Arenas
Vehicles
Differentiators
Staging
How will we get there?
Internal development.
Joint ventures?
Licensing/franchising?
Acquisition?
Where will we be active?
Which product categories?
Which markets segments?
Which geographic areas?
Which core technologies?
Which value-creation stages?
What will be our speed
and sequence of moves?
Speed of expansion?
Sequence of initiatives?
How will we win?
Image?
Customization?
Price?
Styling?
Product reliability?
How will we obtain our returns?
Lowest costs through scale advantages?
Lowest costs through scope and
replication advantages?
Premium prices due to unmatchable service?
Premium price due to proprietary product features?
The Five Majors
Elements of Strategy
Source: Hambrick & Fredrickson (2001)
15
Vision and Business of IKEA

16
http://www.ikea.com/ms/en_GB/about-the-
ikea-group/company-information/
II. Fundamentals
Economic
Logic
Arenas
Vehicles
Differentiators
Staging
Vehicles
Organic expansion
Wholly owned stores

Arenas
Inexpensive contemporary furniture
Young, white-collar customers
Worldwide
Staging
Rapid international
expansion, by region
Early footholds in
each country, fill in later
Differentiators
Very reliable quality
Low price
Fun, nonthreatening shopping experience
Instant fulfillment
Economic logic
Economies of scale (global, regional
and individual stores scale)
Efficiencies from replication
IKEAs Strategy
Source: Hambrick & Fredrickson (2001)
17