Lecture 4 - Corporate Strategy Notes

CORPORATE STRATEGY
Presentation Notes
Date: 13 Sep 2021
Lecture No: 3
Topic: Chapter 3: Evaluating a company’s external

environment
Specific Points Covered
Strategy as a Overall strategy is more than a set of technique it is social, political

whole and and organizational in nature. It is a cultural product and made after
Economic Theory behavioral research.
Why study economic theory:
The economic theory talks about maximizing returns, We want as

many players in the society to create welfare economy by reducing
cost and this is done by increasing the market players. Economic
theory is over presented hence strategy as practice emerged. Strategy
is more than a set of techniques; it is irredeemably social.
Strategy in Strategy in Practice: one strategy does not fit all; you need to adopt.
practice VS Strategy in Practice provides new insight into the strategy process and
Strategy as explores how strategic thinking contributes to the creation of a
Practice differentiated value offering. Strategy in practice is about strategic
thinking.
Strategy as Practice: Strategy as practice is an approach that focuses

on the micro activities of the people behind the strategizing, as
opposed to taking an organizational perspective. Strategy as practice
can be regarded as an alternative to the mainstream strategy research
via its attempt to shift attention away from the effects of strategies on
performance alone to a more comprehensive, in-depth analysis of
what takes place in strategy formulation, planning and implementation
and other activities.
CORPORATE STRATEGY
 3 P Framework- Focuses on practice, practitioner, praxis
Micro Sensing: It is necessary to sense- opportunity via RnD & New

foundations: Technology, tapping external innovations
Organizational Siezing: Then seize the opportunity by delineating business model,
and managerial selecting decision making rules
processes
Reconfiguring: adapting to the new opportunity while considering
internal and external capabilities.
Example: Iphone- realized need for smartphone with multimedia

technology (Sense), implementation of the new interface, intuitive
technology (sieze), entering the market and offering competitive
features like music on demand etc.
Strategy in Strategy is about winning on the basis of research and that is done by
practice offering value either through tangible or intangible benefits. Intangible
benefits are not just for satisfying but for delighting the customer.
Strategy is not a strategy until the whole organization owns it,

otherwise it’s just an inspiration
Strategy in practice is a continuous process. The process is as below:
Step 1 is analyze: It includes sensing the external and internal driver.

Strategizing is about the options.
Step 2 is execution: the most important part as you need metrics to

measure your strategies. Metrics are measurement.
CORPORATE STRATEGY
Step 3 is Strategy Formulation: it is about creating options
Critical Questions What is our unique competing space?

for Strategic Rosche is among top 10, GETZ pharma is top after measuring the
Thinking parameters
Who is our stakeholder?
Everyone especially doctors.
What is the relevant external competitive marketing?
Digital marketing during covid while focusing on the competition
What is our basis of competition?
Where does your product lie in Product lifecycle, who is the

competition and how to focus on it?
Where does your growth happens due to branding, eg: at maturity-

new innovations or advancement is done in the product. Eg: in pharma
-new molecules are introduced.
How do we get the organization together?
Entire org must be pulling in the same direction. Everybody must be

clear on the strategic objectives and where to head to.
What is strategic The strategic thinking is about understanding whether any change
Thinking will make any substantial difference to my bottom line
Identify the problem: packaged milk was introduced but it was

expensive and people did not wanted to buy but then olpers
introduced pouch packaged milk to reduce cost.
Challenges: hurdles and constraints that limits you
Next find strategically relevant issues and create strategic questions

CORPORATE STRATEGY
and data around it. On the basis of which you can tap the senses.
Value Curve Value Bundling: bundling value of each attribute as per their weight.
This is subjective to individual preferences.
Where “a” is weightage, Vi is the attribute or feature and the price
Composition of value offered: is an amalgamation of brand,

functionality and price
Value Premium: competitive relevance of individual brand bundles x

composition of Individual Value bundles (since every individual values
differently)
Value Curve: Value Proposition- talks about what attributes are offered
and what impact can be created, whether it is eco friendly or has low
price.
You have to change the value curve and try to shift the focus from
what is offered and what can be offered
Eg: Sony TV were more popular as it had RGB technology. Only those
with sharp eyes can see images on sony tv. Other tv brands had elipse
technology. Hence, sony had 10% brand premium. Philips released
pixel plus Technology and slowly all the other brands started
competing so the brand premium for sony lowered
Eg: Graphic user interphase has number of commands which helps in

simple features like drag and drop
Non Profit Orgnization value impact.

CORPORATE STRATEGY
Eg: how many people you catered(seylan)i
Defining core Value premium is the overall competitive impact achieved from
value- value multiple value offerings. Formula is available on the slides. It is a
premium mixtuture of multiple individual value bundles
HBR Article by Business Model- it is based on logic of making money and 3

Enza Siddiqui questions are to be answered for it
Tactics- in value chain you apply multiple action plans and align how
functional department will act
Strategy- plan of action designed to achieve a goal
Provide integrated framework which clearly specifies how you are

different
Strategy Framework:
Framework was of 2 stages which included strategy in phase 1 and

tactics in phase 2
E.g.: distribution was before as well but what new happened-

Ecommerce has been introduced
Difference between operational strategy and business strategy:
Operational strategy is about improving productivity to increase

efficiency is operational strategy
For Business Strategy you have distinct choice you make to provide
competitive advantage. For eg: fedex delivery overnight is a brand
promise wich is on consumer suiide. so customer fulfillment is
necessary. Emirates assure six sigma performance by ensuring flights
are running.

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CORPORATE STRATEGY

Topic: Chapter 3: Evaluating a company’s external

Specific Points Covered

Strategy as a Overall strategy is more than a set of technique it is social, political

Why study economic theory:

The economic theory talks about maximizing returns, We want as

Strategy as Practice: Strategy as practice is an approach that focuses

 3 P Framework- Focuses on practice, practitioner, praxis

Micro Sensing: It is necessary to sense- opportunity via RnD & New

Example: Iphone- realized need for smartphone with multimedia

Strategy is not a strategy until the whole organization owns it,

Strategy in practice is a continuous process. The process is as below:

Step 1 is analyze: It includes sensing the external and internal driver.

Step 2 is execution: the most important part as you need metrics to

Step 3 is Strategy Formulation: it is about creating options

Critical Questions What is our unique competing space?

Who is our stakeholder?

Everyone especially doctors.

What is the relevant external competitive marketing?

Digital marketing during covid while focusing on the competition

What is our basis of competition?

Where does your product lie in Product lifecycle, who is the

Where does your growth happens due to branding, eg: at maturity-

How do we get the organization together?

Entire org must be pulling in the same direction. Everybody must be

Identify the problem: packaged milk was introduced but it was

Challenges: hurdles and constraints that limits you

Next find strategically relevant issues and create strategic questions

Where “a” is weightage, Vi is the attribute or feature and the price

Composition of value offered: is an amalgamation of brand,

Value Premium: competitive relevance of individual brand bundles x

Eg: Graphic user interphase has number of commands which helps in

Non Profit Orgnization value impact.

Eg: how many people you catered(seylan)i

HBR Article by Business Model- it is based on logic of making money and 3

Strategy- plan of action designed to achieve a goal

Provide integrated framework which clearly specifies how you are

Framework was of 2 stages which included strategy in phase 1 and

E.g.: distribution was before as well but what new happened-

Difference between operational strategy and business strategy:

Operational strategy is about improving productivity to increase

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