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Strategy 101
Doing what matters
Course: 2584-Strategy, Fall Semester, 202223

Dr. Wayne Borchardt

The Decision Advisory Group
Introduction: Wayne Borchardt 2

B.Sc (Eng) M.Sc (Eng)

Transtel
Engineer 1986 1990 1992 1994

Partner

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Accenture
consultant 1994 2001 2005

CEOs fired
Accenture
Strategy
consultant 2005 2010 2012 2016

Independent
consultant Ph.D. (behavioral strategy)
and adjunct
faculty
2017 2019 2021 2023

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Cape Town

Carcavelos
Introduction: Pedro Sena-Dias 4

Pedro Sena-Dias is a PhD candidate at NOVA SBE

• Contact info: pedro.sena-dias@novasbe.pt
• Office hours: by appointment
Academic interests
• How managers and founders influence the internationalization of a firm’s system of activities.

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• His research is at the border of international business and organizational behavior.
• He likes to use qualitative methodologies to access phenomena.
Teaching assistant experience
• Strategy, International Management, International Corporate Strategy and Positive Organizational Behavior.
• He is particularly interested in the Case Study methodology, having written award-winning teaching Case Studies.
Prior experience
• Education: Industrial engineer (IST)
• Work: logistics engineer - CTT (Portugal); product manager CIDC (Boston); product marketing manager - EGMS
(London); Founder & Manager - BCure (Lisbon)
Introduction: Diogo Marques 5

Diogo Marques Teaching Assistant experience

• Contact info: diogo.marques@novasbe.pt • Strategy (September, 2022 – Present)
• Office hours: by appointment • Corporate Strategy and Transformation (Feb – June, 2022)
Academic background • Strategy Consulting (September, 2021 – January, 2022)
• Bachelors in Business Administration at Católica-Lisbon SBE

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• Masters in Management with expertise in Strategy and International Business at Nova SBE
• Co-Founder, Project Developer and Head of Consulting at Nova Hospitality Club
• Project Coordinator at Nova Social Consulting
Professional Experience
• Business Analyst at Cluster Advisory (January, 2022 – Present)
• Invited Teaching Assistant at Nova SBE (September, 2021 – Present)
• Business Development Intern at OMNY (June-July, 2021)
• Brand Manager Trainee at Nestlé Portugal (August-September, 2019)
• Digital Marketing Trainee at Altice Portugal (July, 2019)
Introduction: students 6

1 1
Nationality Inferred home language
2 1
3 2 1 11 1 1
4
11 1
2 11 1
1 1 11

3 3 12 German
19
7 Portugese
88
81 27 French
8

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11 Other
Italian
12
71 Spanish

69 Gender

German Portuguese Italian Belgian French

Austrian Chinese Indian Spanish Luxembourger
94
Moroccan Swedish Angolan Brazilian Bulgarian Female

Cameroonian Canadian Colombian Dutch Finnish Male

127
Ghanaian Greek Japanese Lebanese Nigerian
Russian Slovenian Tunisian Turkish Ukranian
What to expect 7

Content expectations Delivery expectations

• Broad, but shallow • Slides are backdrops for discussions
• Blend of classic and contemporary • Presenter knowledge gaps
• Some conflicting views • A mixture of boring and scintillating

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• How to think, not what to think • Learning from each other
• Class consolidates / your reading matters! • Your contribution counts!
• To be challenged • To be challenged

Your expectations?
Course objective 8

• To appreciate the importance and challenges of strategy

• To develop skills and experience in how to answer this question …

choices decision-makers actions environment

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What should managers do to position their
firm for the best performance prospects?
business values uncertainty
 • Introduction to the course • Sustainable competitive
• The importance of strategy advantage
Course
• Strategycontent
definition structure • Trends, challenges, and • Decision quality 9

• Big ideas • PESTEL and scenarios opportunities • Conditions for the reliability
• Guiding policy of intuition
• Porter’s five forces
Why

Strategy definition Reasons to care Mindsets

• The industry lifecycle • Growth cube and directions
• Strategic groups and market • Vertical integration
segments External analysis Ideas Evaluation
• Portfolio analysis • Build, borrow, or buy
• Strategy under uncertainty • Measuring firm performance • Internationalization • Innovation and corporate
Where to
• The “big picture” venturing

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• The value driver tree play
• Role of stakeholders • Structural types and parental
Purpose

• The “gap” / “burning

Values

Vision
Strategic Strategic plan
How

objectives advantage & scorecard

• Strategy & society platform” How to win

• Purpose, vision, and values • Strategic diagnosis • Generic strategies

Organisation
• Musk vs. Buffet debate • Blue Ocean enablement
• Coherent actions
Internal analysis • Business model • Converting to execution
• Resources and capabilities • Platforms & digital disruption • Measurement frameworks
• Competitive advantage
Good / bad strat:
• Value chain and value
Diagnosis Policy • Pressure test: Actions
“Do we have a
Big questions: What is our aspiration? What is our reality? What are our objectives? What is our strategy? What is our plan?
good strategy?”
system
Lenses

6 Is: Information → Insight → Ideas → Implications → Imperatives → Implement.

Decision Science:
• Dynamic capabilities Frame Alternatives Evaluation Plan
Consulting: Define the problem Solve the problem
Your opportunity to … 10

• Engage – strategy is not natural science

• Argue/sell – strategy is argumentation and selling
• Listen – strategy is understanding multiple perspectives
• Make hard decisions – in a safe environment to prepare for a more unsafe environment

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• Team – strategy is seldom done in isolation; it’s a group effort
Course evaluation (1/3) 11

Overall evaluation [20]

Class participation [5] H&M group project [8] Written exam [7]

Completing surveys Quality of the strategy Quality of the presentation

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Questions and contributions Quality of the
Clarity
in class diagnosis

Quality of the guiding

Debate Impact
policy

Executable actions Punctuality

Logical consistency
1 point
0.5 point
Course evaluation (2/3) 12

Class participation [5 points] will be assessed as follows:

• 10% (of the 25%) [0.5 points] Completing surveys. Measured using participation rate.

• 50% (of the 25%) [2.5 points] Questions and contributions in class. Questions and contributions will be scored on
the volume and value of the questions asked. More is better, but dominating is BAD. Students should use their

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discretion and be mindful of allowing others the opportunity to ask questions and contribute.

• 40% (of the 25%) [2 points] Debate. Students will submit their debate notes and some will present their
arguments. The presenters will be scored on their oral content quality (clarity, logic, impact) (50%) as well as their
debate style (speaking clearly and convincingly) (50%). The students who do not present will be scored on their
written content quality (clarity, logic, impact) (80%) as well as on their style in asking questions / posing challenges
to the presenters (20%). For those who do not get a chance to ask questions, their entire assessment will be on
their written content quality.

Written exam [7 points]

• The exam is mandatory. The exam will cover all articles and lectures’ material. Passing this course requires a
minimum grade of 50% in the exam.
Course evaluation (3/3) 13

H&M strategic analysis and recommendation project [8 points] will be assessed as follows:

• A score will be assigned to each group's project. All members in the group will receive that score.

• To counter free-riding in groups, all students will do a peer evaluation of their group members. Using a 4-point
scale, they will assess the contribution of their group members from 1 (very low) to 4 (very high). This assessment

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will be aggregated to adjust group members' final score from the project by a factor ranging from 0.75 to 1.0.

• The score will be based on the quality of the strategy (70% of the 40%, [~5.5 points]) and the quality of the
presentation (30% of the 40%, [~2.5 points])

• The quality of the strategy will be based on how relevant, insightful, and substantiated the diagnosis is [2 points],
how sensible, creative, and substantiated the broad strategy (guiding policy) is [1.5 points], and whether there are
good executable actions [0.5 points].

• In addition, the logical consistency from diagnosis to guiding policy to actions will be scored [1.5 points].

• The quality of the presentation will be based on clarity [1 point], impact [1 point], and punctuality [0.5 points].
Be it resolved: sustainable competitive advantage is a fool’s errand 14

Prepare
• Everyone to prepare a 5-minute presentation; last names A-L prepare for the
affirmative (against pursuit of SCA), last names M-Z prepare for the against (in favour
of pursuit of SCA)
• Everyone to send presentations (Word or PPT) in advance

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Conduct ~90-min
• Opening, reminder of debate question and instructions on the event
• Random draw of 3 people for each side; selection of timekeeper
• Everyone to vote
• [30] Opening presentations delivered; alternating affirmative / negative (5-min each)
• [20] Questions / rebuttal from the audience
• [10] Responses from the presenters
• [12] Closing arguments from the presenters (2-min each)
• Everyone to vote
• Count and report results – affirmative vs against, Adam Grant
how much have the numbers moved? Professor of Management
and Psychology at Wharton
• Closing
 The EU could put fast fashion out of business: What should H&M do? 15

Group project: A strategy for H&M

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30 March 2022

30 March 2022

4 April 2022

https://www.bbc.com/news/science-environment-60913226
https://www.theguardian.com/environment/2022/mar/30/eu-wants-to-force-fashion-firms-to-make-clothes-more-durable-and-recyclable
https://www.bloomberg.com/news/articles/2022-04-04/shein-s-100-billion-valuation-would-top-h-m-and-zara-combined
Pedagogical approach and content expectations 16

Pedagogical approach Content expectations

• Broad, but shallow
Prepare Participate Project work
• Blend of classic and
contemporary
Read & listen Listen & discuss Review & act

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• Some conflicting views
Individual Individual Individual • How to think, not what to think
• To work in breakout groups
• We might skip over some slides
Group Faculty Group
• To be challenged

Feedback
Preparing, Participating, and Project work
Preparing
• Readings are assigned for each
lesson. Some are required, some
are recommended. You know
what to do.
• Lots to read. Be guided by each
lesson’s questions.
• There is a group project. Work
constructively within your group.
It’s not easy, but it’s important.
Participating
• Lessons are an opportunity for
discussion.
• If you don’t understand, ask.
• Do not dominate the discussion;
allow others to be heard.
• Respect other people’s views.
• Attack ideas, not people.
• The more you prepare, the more
valuable the discussions.
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Project work
• Strategy is often formulated and
implemented by teams.
• Strategists should be able to
present and defend their views.
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• Students will be pre-assigned
into groups of five or six.
• Groups will analyze and develop
strategic recommendations for
H&M by applying the relevant
core tools and concepts.
• Groups will prepare a report (in
Word) and a presentation (in
PowerPoint).
Expected work effort 18

Activity Approx. time to be

spent (hours)
Participation
Lecture sessions (12 lessons @ 3 hours each; each lesson is covered in 2 lectures) 36
Preparation

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Individual time: readings and preparation for lectures and group work
About 6 hours per lesson for the first 10 lessons; last 2 lessons are group presentations 60
Project
Individual project work – SCA debate and other class activities 10
Project: Group work (per individual); start from lesson 1 30
Exam
Study and write 24
TOTAL 160 - 175
Course schedule 19

Class dates Lesson Topics Class dates Lesson Topics

Sept 7/8, 1 Introduction Oct 26/27, 7 Diagnosis and objectives

2022 2022
Sept 14/15, 2 Mindsets Nov 2/3, 8 Business model

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2022 2022
Sept 21/22, 3 Big ideas Nov 9/10, 9 Organizational enablement
2022 2022
Sept 28/29, 4 Aspiration Nov 16/17, 10 Execution and quality
2022 2022
Oct 6/12*, 5 External analysis Nov 23/24, 11 H&M strategy project
2022 2022
Oct 13/18, 6 Internal analysis Nov 30, 12 H&M strategy project
2022 Dec 7, 2022

* Guest lecture: Why should a strategist care about the energy transition?
Guest lecturer: Anton-Louis Olivier 20

Experienced CEO and entrepreneur with 25+ years of international experience in

renewable energy.
Past
• Established NuPlanet, a sustainable energy project development company (Netherlands) in 2000.

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• Founded and served as CEO of the REH Group (South Africa) in 2006. Established REH as a hydropower
development business and the group grew become a leading developer, owner, and operator of small hydropower
plants across Southern Africa. Exited in 2021 via sale to a European project developer.
• Founded New Africa Power (Mauritius) in 2017, in a $10 million joint venture with Norfund (Norway) and
responsAbility (Switzerland) to develop hydropower projects in Zambia.
Currently
• Non-executive director in listed energy fund
• Senior advisor to several independent power producers
• Founded a $133 million private fund providing senior debt to the renewable energy power sector
• Moderator and speaker at local and international energy sector conferences and workshops
• Board Member and Vice President of the International Hydropower Association