T O P I C S F O R YO U R PA P E R Welcome to this list of possible topics for your strategy paper. Please remember that you should write either a ´short paper´ - appr. 3.500 words for the main part – in addition to an exam to finish your lecture on ´Strategic Management´ to get three credits. If you are interested in additional credits you have to write a more extensive paper with appr. 1520 pages for the main part ( + one or two credits) and to hold a presentation ( + 1 credit). On the whole you may get five/six credits. If you prefer other topics, please let me know. Please never start writing your paper without my approval to your preferred topic. Until Dec. 1, 2014 you should have submitted your 15/ 20-pages-term paper to my e-mail adress : info@malyseminare.de . If everyone of you will stay in Mannheim in December we may shift the appointment to Dec. 15, 2014. Presentations may be hold in one of our seminar rooms as soon as possible after our delivery date. DEFINITELY OBSERVE: The principles of writing a scientific paper are always the same. It doesn't matter whether it's length is about five or twenty pages. Try to get a first impression, reading the following: http://issuu.com/malyhart/docs/writing_good_scientific_papers_v2 Try to read the following excellent papers to get an impression how your paper could look like: 1. 2.
Barranco, Ainhoa, ´Blue Ocean Strategy´, http://issuu.com/malyhart/docs/blue_oceans Soyanov, Ilyan, Porter´s Generic Strategies, http://issuu.com/malyhart/docs/porters_generic_strategies_by_iliya
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
LECTURE STRATEGIC MANAGEMENT
-1-
Topic
Page
1.
Management of innovations using ´TechnologyS- Curve´- concept. When to jump into the consecutive technique and why?
3- 4
5.
Is there any chance to manage a multi cultural project team efficiently? How?
2.
How to diversify a company´s strategy with Hamel and Prahalad´s concept of ´Core Competencies´ ? Fictional cooperation between Motorola and Roche Diagnostics.
5
6.
Nike used Michael Porter´s ´Value Chain´ in a very professional way. Explain the organisational success story .
10- 14
3.
Predicting the development of a company´s share prices using the ´Cybernetic Regulatory Circuits ´- technique.
6- 7
7.
The miracle of the ´Long- Tail Strategy´. When does this strategy – approach makes sense?
15- 16
4.
Is psychopathy a dominating factor to suceed as top manager in a company obeying e.g. ´Sharholder Value´- concept?
8
8.
Guerilla Strategies – the answer for start- up companies to survive in highly competitive markets with big companies?
17- 18
© Dr. Hartwig Maly | info@maly-seminare.de
Topic
DHBW: Lecture ´Strategic Management
Page 9
Strategic Management
O v e r v i e w To p i c s
-2-
Big picture:
Technology-S-Curve-Concept: It´s difficult to forcast and to manage disruptive innovations. The ´Technology-S-curve´´ concept seems to be an interesting tool.
Short explanation:
The s-curve derives from an assumption that new products are likely to have “product life”. i.e. a startup phase, a rapid increase in revenue and eventual decline. In fact the great majority of innovations never get off the bottom of the curve, and never produce normal returns. Innovative companies will typically be working on new innovations that will eventually replace older ones. Successive s-curves will come along to replace older ones and continue to drive growth upwards. In the figure above the first curve shows a current technology. The second shows an emerging technology that currently yields lower growth but will eventually overtake current technology and lead to even greater levels of growth. The length of life will depend on many factors.
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
1 . I n n o v a t i o n S t r a t e g i e : Te c h n o l o g y - S - C u r v e
-3-
Point of interest:
Please explain the constraints, under which the S-curve works and whether there are scaled x-axis, representative for industrial segments like automobile, pharmacy, electronic components to predict the growth of innovation. Is there a preferred point on the curve for current technologies with the best cost/ benefit ratio to move to the emerging technology? Does it make any sense to use the Scurve for strategic planning?
Literature:
1. Sandstrom, Chris, Technology- S- Curve, 2013, http://de.slideshare.net/Christiansandstrom/technology-s-curves 2. http://www.12manage.com , The executive fast track
Š Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
I n n o v a t i o n S t r a t e g i e s : Te c h n o l o g y - S - C u r v e
-4-
Big picture:
Hamel and Prahalad’s Intellectual-Leadership-Concept and its meaning for diversification strategies: 30 years of strategic management with questionable success. Ansoff focussing on markets and products, BCG on market growth and market share in the 60 th, Porter´s ´Competition Strategy´ in the 80th focussing on competition. It was time to think about another approach, e.g. employee´s brains as unique proposition. Hamel and Prahalad´s concept of ´Core Competencies´ came into being.
Short explanation:
Core competencies and success: In September 1983, Motorola made history when they approved the world’s first and only commercial cellular device. They had core competencies in the area of videocompression, battery- and flat screen technology. Unfortunately they did not succeed to apply their intellectual leadership (= core competencies) e. g. to develop new products for new markets. Igor Ansoff would have called this strategic new-product/ new-market-approach, diversification. 1998, Motorola was overtaken by Nokia as the world’s biggest seller of mobile phone handsets.
Point of interest:
Try to do a better job. Please explain the intellectual leadership approach for a nanotech company trying to diversify in cooperation with a company like Roche Diagnostics. Are there any opportunities for our nanotech company to persuade Roche. Which revolutionary technologies could our nanotech company develop? Nano-Robots for diagnostic purposes? Estimating blood sugar level or hundreds of other parameters? Always moving through our bodies?
Literature:
Ansoff, I., Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5, Sep-Oct 1957, pp.113-124 Gary Hamel, C.K. Prahalad, Competing for the Future, Harvard Business School; Sept .1994
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
2. Innovation Strategies: Core Competencies
-5-
Big picture:
Privatisation of public infrastructural services: British Rail, Understanding the Development of Share Prices
Short explanation:
„ … the one positive development since the old British Rail was abandoned was that the total number of passengers increased steadily. But the rail companies, some of whom are not far from bankruptcy, will shortly face an awful vicious circle. They will need to invest in order to attract customers back to the rails, yet will not have the resources to do this if their income is shrinking.” The Times, 24 November, 2000
Development of share prices British Rail, 1997- 20011
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
3. Strategies in Complex Systems: Cybernetic Regulatory Circuits
-6-
Point of interest:
Develop the appropriate cybernetic regulatory circuit to explain the development of the British Rail shares between 1997 and 2001
Literature:
Sherwood, Dennis, Seeing the Forest For the Trees”, 2003 http://books.google.de/books?id=vQcvzuKfB0oC&printsec=frontcover&dq=%22seeing+the+forest+for +the+trees%22+dennis+sherwood&hl=de&sa=X&ei=0Nt_UvadOIan4ATZ94DwBA&ved=0CEMQ6AEwA A#v=onepage&q=%22seeing%20the%20forest%20for%20the%20trees%22%20dennis%20sherwood& f=false
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
Strategies in Complex Systems: Cybernetic Regulatory Circuits
-7-
Big picture:
Impact of psychopathic top managers on strategy business
Short explanation:
Psychopaths are people, polite and charming as George Clooney. Without any emotions. Like Hannibal Lecter, a serial killer in an american psychological thriller film directed by Ridley Scott. Psychopaths are capable to read other person´s mind to manipulate them to achieve their personal extraordinary selfish targets to speed up their career. A psychopathic profile seems to be an advantage for a career in some specific branches of business. High risk, high profit in a volatile business like investment banking seems to be an ideal environment for psychopaths. Shareholder Value, a method to increase profit in the short term significantly, trying to become number one could be method of choice for psychopaths.
Point of interest:
Is there any correlation between extraordinary success in volatile business branches obeying ´Shareholder Value´ and psychopathy?
Literature:
Snakes in Suits: When Psychopaths Go to Work by Paul Babiak and Robert D. Hare (May 8, 2007 The Wisdom of Psychopaths: What Saints, Spies, and Serial Killers Can Teach Us About Success by Kevin Dutton(Sep 3, 2013) Hannibal (film), http://en.wikipedia.org/wiki/Hannibal_(film)#Anthony_Hopkins_as_Hannibal_Lecter
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
4 . S h a r e h o l d e r Va l u e a n d P s y c h o p a t h y
-8-
Big picture:
It´s a common standard in companies to cooperate in international project teams. Often problems occur because cultural difference have been neglected.
Short explanation:
Imagine an international project team of three members from different cultures, responsible for a strategic analysis as we did it in our lecture regarding more efficiently running processes between back- office and front- office in an investment bank. Only you are responsible as project leader for the team result.
Point of interest:
What´s important under cultural perspectives for an efficiently working multi cultural team under time pressure to avoid great tensions?
Literature:
- Wikipedia- Geert Hofstede (Definition of Culture) - http://www.geert-hofstede.com/countries.html (Comparison of countries regarding five different criteria.)
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
5 . M a n a g e m e n t o f M u l t i C u l t u r a l Te a m s
-9-
Big picture:
To increase a company´s competitive position in a market, Michael Porter´s ´Value Cahin´is very useful.
Short explanation:
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
6 . T h e S u c c e s s S t o r y o f N i ke .
- 10 -
Strategic Management
T h e S u c c e s s S t o r y o f N i ke .
Short explanation:
Š Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
- 11 -
Strategic Management
T h e S u c c e s s S t o r y o f N i ke .
Short explanation:
Š Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
- 12 -
Point of interest:
Nike is of course a strong brand and seems to be a very big company as well. Although it has more or less a virtual organisation. Úsing Michael Porter´s concept of ´Value Chain´to outsource activities like operations or logistics or administration to other companies in other countries. How does this powerful concept of outsourcing work?
Literature:
- Wikipedia- Value Chain - www.books.google.com –> Naomi Klein, No Logo, 2002 - http://issuu.com/malyhart/docs/lecture_oct._1__2013
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
T h e S u c c e s s S t o r y o f N i ke .
- 13 -
Strategic Management
T h e S u c c e s s S t o r y o f N i ke .
Š Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
- 14 -
Big picture:
“The future of entertainment is in the millions of niche markets a the shallow end of a bit stream”. Chris Anderson
Short explanation:
The focus of the ´Short- Tail´ strategy is on few important products, customers or services. This approach derives from the Pareto Principle (20/ 80- principle). The Pareto principle is as well basis of the ABC- analysis. A e.g. means 10% of items (customers e.g.) generating 66,6% of value. Imagine few products or customers responsible for a big popularity or sales contribution. This would mean type A regarding the ABC analysis. The associates strategy would be the short- term strategy. The focus of the ´Long- Tail´ strategy is on many remaining stocks. Just the opposite of the short- tail strategy. In terms of the Pareto principle we are talking about B or C-type products or customers. Amazon obeys the long- term strategy. © Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
7 . T h e m i r a c l e o f t h e ´ L o n g - Ta i l - S t r a t e g y ´
- 15 -
Point of interest:
Describe the benefits of long- tail strategies. Its strength and weaknesses compared with short- tail strategies. In which branches of business could they be useful.
Literature:
Chris Anderson, long- tail Magazine WIRED Talks in www.TED.com
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
T h e m i r a c l e o f t h e ´ L o n g - Ta i l - S t r a t e g y ´
- 16 -
Big picture:
To survive as a smaller company , maybe a start- up or as a bigger in a highly competitive total market with constandt volume.
Short explanation:
Mao Zedong one of the most important communist revolutionists had a consequent focus on Guerilla strategies in the chinese war against the emperor. Mao organised small, very mobile combat troops, to attract hostile troops on unknown territory and defeat them without mercy. Under a business perspective Guerilla strategy means: mobile, flexible actions with poor means. Surprise or shock effects. Unfair destroying practices to secure its own strategic advantage. These techniques have been establised successfully e.g. in marketing. Extraordinary actions for achieving big effects. Guerilla marketing is surprising, fkexible, simple and above all different. Guerilla Marketing always bases on psychological knowledge of human behaviour. Some examples: Guerilla Action
Explanation
Blue- Jacking
Transission of advertising messages via Bluetooth.
Headvertising
Advertising messages on the forehead or as tattoo.
Very favourable price
For a short time a radical reduction of prices.
Guerilla – Tubes
Promotional films on Youtube.
C- Marketing
Marketing on social media platforms, in news groups, blogs or chats
Viral Marketing
Advertising cmpaigns via e-mail, SMS, podcasts or by traditional word of mouth
Attacs
Negative messages about competitors and their products or services.
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
8. Guerilla Strategies
- 17 -
Point of interest:
Guerilla Strategies – the answer for start- up companies to survive in highly competitive markets with big companies? Or to defame a competitor. With lies e.g. .
Literature:
- Ryan Holiday, Trust Me I´m Lying, 2012 (How to develop and implement a direction script to manipulate customers. What spin doctors very often do.) - http://en.wikipedia.org/wiki/Guerilla_marketing
© Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
Guerilla Strategies
- 18 -
. . . all the best for your future career.
Š Dr. Hartwig Maly | info@maly-seminare.de
DHBW: Lecture ´Strategic Management
Strategic Management
Thank you very much for your committed participation in our lecture.
- 19 -