1.

OSA Framework (Objectives, Strategies, and Action Plans): The OSA Framework is a
strategic management tool that helps organizations align their objectives, strategies, and
action plans for effective decision-making. It involves three key components:
 Objectives: These are the specific, measurable goals that an organization aims to
achieve. Objectives provide clarity on what the organization wants to accomplish.
 Strategies: Strategies are the high-level approaches or plans that outline how an
organization intends to achieve its objectives. They set the direction for decision-
making and resource allocation.
 Action Plans: Action plans are detailed, specific steps and activities that need to
be executed to implement the chosen strategies. They provide a roadmap for the
tactical execution of the strategy.
Organizations use the OSA Framework to ensure that their strategies are aligned with
their objectives and that there is a clear path for implementing those strategies. It helps
in breaking down broad goals into actionable steps, making it easier to track progress
and measure success.
2. Porter's Five Forces Framework: Developed by Michael Porter, this framework is used
to analyze the competitive dynamics of an industry and the attractiveness of entering or
competing in that industry. The five forces are:
 Threat of New Entrants: Examines how easy or difficult it is for new competitors
to enter the market, considering barriers to entry like capital requirements and
government regulations.
 Bargaining Power of Suppliers: Assesses the influence suppliers have on
industry players in terms of pricing, quality, and availability of inputs.
 Bargaining Power of Buyers: Analyzes the power that customers have to
influence prices and demand better quality products or services.
 Threat of Substitutes: Looks at the possibility of alternative products or services
that can fulfill the same need as the ones offered in the market.
 Rivalry Among Existing Competitors: Examines the intensity of competition
among existing firms in the industry.
The framework helps organizations understand their competitive position, identify
potential threats and opportunities, and develop strategies to gain a competitive
advantage.
3. VRIO Framework: The VRIO framework is used to assess the resource-based capabilities
and competencies of an organization. VRIO stands for Valuable, Rare, Inimitable, and
Organized. The framework evaluates whether a resource or capability can provide a
sustained competitive advantage:
 Valuable: Resources must add value to the organization and its customers. They
should enable the organization to exploit opportunities or mitigate threats.
 Rare: Resources that are rare or unique are less likely to be possessed by
competitors, giving the organization a competitive edge.
 Inimitable: Resources that are difficult to imitate or replicate by competitors
enhance the organization's competitive advantage.
 Organized: Resources should be effectively organized and leveraged to create
value for the organization.
The VRIO framework helps organizations identify their core competencies and allocate
resources to areas where they can achieve a competitive edge.
4. Value Chain Analysis: Value chain analysis is a framework that assesses an organization's
internal activities and processes to understand how it creates value for customers. It
involves two main components:
  Primary Activities: These activities are directly involved in creating, delivering,
and supporting the product or service. They include inbound logistics, operations,
outbound logistics, marketing and sales, and service.
 Support Activities: These activities provide the necessary support for the primary
activities to function efficiently. They include infrastructure, human resources,
technology, procurement, and firm infrastructure.
By analyzing the value chain, organizations can identify areas where they can reduce
costs, improve quality, and enhance overall value creation. It helps in making strategic
decisions to gain a competitive advantage.
5. Valuable Uniqueness vs. Cost Position Matrix: The Valuable Uniqueness vs. Cost
Position Matrix is a strategic planning tool that helps organizations assess their
competitive position in the market. It combines two dimensions:
 Valuable Uniqueness: This dimension focuses on how unique or differentiated a
product or service is in the market and the value it provides to customers.
 Cost Position: This dimension assesses the organization's cost efficiency and
competitiveness in terms of production and operations.
The matrix typically categorizes organizations into four quadrants: "Stuck in the Middle,"
"Differentiation," "Low Cost," and "Best Cost Provider." This matrix helps organizations
determine their strategic focus, whether it's differentiation, cost leadership, or a
combination of both.
6. Value Stick: The Value Stick is a concept used to describe an organization's ability to
create and capture value in its chosen market. It represents the organization's position in
terms of providing unique value to customers and capturing a portion of that value in the
form of profits.
The Value Stick concept implies that organizations should aim to create more value for
customers than their competitors while also ensuring they capture a substantial share of
that value in the form of profits. It highlights the importance of aligning value creation
and value capture strategies to achieve long-term success and profitability.
Organizations with a strong Value Stick can sustain a competitive advantage and achieve
higher profitability.
7. Four Drivers of Red Queen Effect and Mitigation Strategies: The Red Queen Effect
refers to the constant need for organizations to evolve and adapt in a competitive
environment to maintain their competitive advantage. There are four primary drivers of
the Red Queen Effect:
 Competitive Pressure: Organizations face constant competitive pressures,
forcing them to improve and innovate to stay ahead.
 Changing Customer Preferences: As customer preferences change,
organizations must adapt their products and services to meet new demands.
 Technological Advancements: Rapid technological advancements can make
existing products and services obsolete, requiring organizations to keep pace.
 Regulatory Changes: Changes in regulations can impact industries, necessitating
adaptations in business models and practices.
Mitigation strategies involve being proactive and adaptable, continually scanning the
competitive landscape, investing in research and development, and remaining flexible in
responding to changes.
8. Balanced Scorecard: The Balanced Scorecard is a performance measurement framework
that includes financial and non-financial metrics to provide a comprehensive view of an
organization's performance. It incorporates four key perspectives:
  Financial Perspective: Focuses on financial metrics like revenue, profitability, and
return on investment.
 Customer Perspective: Concentrates on customer-related measures such as
customer satisfaction, retention, and market share.
 Internal Process Perspective: Evaluates the efficiency and effectiveness of
internal processes, emphasizing process improvement and innovation.
 Learning and Growth Perspective: Assesses the organization's ability to adapt,
learn, and innovate, including employee training and development.
The Balanced Scorecard helps organizations align their strategies with their performance
measures, ensuring a balanced approach to evaluating and improving overall
performance.
9. 7S Model: The 7S Model is a strategic framework developed by McKinsey & Company to
assess and improve organizational effectiveness. It consists of seven interconnected
elements:
 Strategy: The organization's plan for achieving its objectives.
 Structure: The arrangement of roles, responsibilities, and reporting relationships
within the organization.
 Systems: The formal and informal processes and procedures that guide how
work is done.
 Shared Values: The core beliefs, principles, and values that underpin the
organization's culture.
 Skills: The competencies and capabilities of the organization's employees.
 Staff: The organization's workforce and their attributes.
 Style: The leadership and management approach within the organization.
The 7S Model helps organizations analyze and align these elements to improve overall
performance and achieve their strategic objectives.
10. Better Off Test and Best Alternative Test: The Better Off Test and Best Alternative Test
are strategic assessments used during decision-making processes:
 Better Off Test: This test evaluates whether a proposed decision or strategic move will
make the organization better off compared to its current state. It considers the impact on
stakeholders, financial outcomes, and alignment with the organization's objectives.
 Best Alternative Test: This test involves assessing the best alternative options available
to the organization. It ensures that the chosen decision is the most favorable compared
to other possible courses of action.

These tests help organizations make informed and rational decisions by evaluating the potential
benefits and drawbacks of different choices.

11. Corporate Strategy (3 Scopes): Corporate strategy refers to an organization's long-term

plan for achieving its goals. There are three main scopes of corporate strategy:
 Corporate Level Strategy: This scope focuses on the organization as a whole and
involves decisions related to diversification, mergers and acquisitions, and market entry or
exit.
 Business Level Strategy: This scope concentrates on how the organization competes in
specific markets or industries. It involves decisions related to competitive positioning,
pricing, and differentiation.
  Functional Level Strategy: At this scope, the strategy pertains to individual functions or
departments within the organization, such as marketing, operations, or human resources.
It aims to align these functions with broader corporate and business-level strategies.

Corporate strategy helps organizations set clear directions, allocate resources effectively, and
achieve their long-term objectives by coordinating actions across different levels of the
organization.

1. OSA Framework

Objectives:

 Fairphone aims to create sustainable smartphones that are durable,

repairable, and ethically produced.
 The company also aims to reduce the environmental impact of the
smartphone industry and educate consumers about the importance of
sustainability.

Strategies:

 Fairphone uses recycled materials in its smartphones and sources

components from responsible suppliers.
 The company designs modules that can be easily replaced and offers a five-
year warranty.
 Fairphone publishes a transparency report each year and provides free repair
guides on its website.

Actions:

 Fairphone has partnered with suppliers to develop and produce recycled

materials for use in its smartphones.
 Fairphone has a code of conduct for suppliers that includes requirements for
ethical labor practices and environmental protection.
 Fairphone smartphones are designed to be easily repaired, with modules that
can be replaced by users or by Fairphone certified repair partners.
 Fairphone offers a five-year warranty on its smartphones, which is longer than
the industry standard.
 Fairphone publishes a transparency report each year that details its progress
on sustainability goals.
2. Porter Five Forces Framework

Supplier power: High. Fairphone relies on a small number of suppliers for key
components, such as batteries and screens. This gives suppliers a lot of power in
the relationship.

Buyer power: High. Customers have many choices when buying a smartphone.
There are a number of major brands, such as Apple, Samsung, and Huawei, that
offer a wide range of smartphones at different price points. This gives buyers a lot of
power in the relationship.

Threat of new entrants: Medium. The smartphone market is a high-barrier-to-entry

market. New entrants would need to invest heavily in research and development,
marketing, and distribution in order to compete with established players. However,
there have been some new entrants in the market in recent years, such as OnePlus
and Xiaomi. These new entrants are challenging the established players by offering
high-quality smartphones at competitive prices.

Threat of substitutes: Medium. There are a number of substitutes for smartphones,

such as feature phones and tablets. However, smartphones have become the
primary device for communication, entertainment, and work for many people. As a
result, the threat of substitutes is not as high as it is for some other products.

Competitive rivalry: High. The smartphone market is a highly competitive market.

The major players are constantly innovating and launching new products. This
competition benefits consumers, as it leads to lower prices and better products.
However, it also makes it more difficult for companies to differentiate themselves and
maintain a competitive advantage.

3. VRIO Framework

Valuable: Fairphone's resources are valuable because they allow the company to
produce sustainable smartphones. Fairphone has developed proprietary
technologies for recycling materials and designing repairable modules. Fairphone
also has relationships with suppliers that are committed to ethical labor practices and
environmental protection.

Rare: Fairphone's resources are rare because only a small number of companies are
able to produce sustainable smartphones at scale. Fairphone has a unique
combination of resources and capabilities that allows it to differentiate itself from its
competitors.

Inimitable: Fairphone's resources are inimitable because they are difficult to copy.
Fairphone's proprietary technologies and relationships with suppliers are difficult to
replicate.
Organized: Fairphone's resources are organized to support the company's
objectives. Fairphone has a team of experienced and passionate employees who are
committed to its sustainability goals. Fairphone also has a strong culture of
innovation and collaboration.

4. Value Chain Analysis

Fairphone's value chain can be divided into the following primary and support
activities:

Primary activities:

 Inbound logistics: Fairphone sources components from responsible suppliers.

The company has a strict code of conduct for suppliers, which includes
requirements for ethical labor practices and environmental protection.
 Operations: Fairphone assembles smartphones in a sustainable manner. The
company uses recycled materials in its smartphones and designs modules
that can be easily replaced.
 Outbound logistics: Fairphone distributes smartphones to retailers and
customers. The company works with its logistics partners to reduce the
environmental impact of its distribution network.
 Sales and marketing: Fairphone promotes and sells its smartphones through
a variety of channels, including online and offline retail. The company also
educates consumers about the importance of sustainability and the benefits of
its products.
 Customer service: Fairphone provides customer support and warranty
services. The company offers a five-year warranty on its smartphones and
provides free repair guides.

Support activities:

 Procurement: Fairphone procures materials and components. The company

works with its suppliers to develop and produce recycled materials.
 Human resources management: Fairphone manages its workforce. The
company is committed to providing its employees with good jobs and
opportunities for professional development.
 Technology development: Fairphone develops new technologies and
products. The company invests in research and development to stay ahead of
the competition and develop new sustainable solutions.

5. Valuable Uniqueness vs. Cost Position Matrix

Fairphone's value proposition is based on its unique focus on sustainability. The
company's smartphones are more expensive than traditional smartphones, but they
are also more durable, repairable, and ethically produced.

Valuable Uniqueness Cost Position

Sustainable Higher than traditional

smartphones smartphones

6. Value Stick

Fairphone's value stick shows how the company creates value for its customers,
shareholders, employees, and suppliers.

 Customers: Fairphone provides customers with sustainable smartphones that

are durable, repairable, and ethically produced.
 Shareholders: Fairphone is a profitable company that is growing rapidly.
 Employees: Fairphone provides employees with good jobs and opportunities
for professional development.
 Suppliers: Fairphone works with suppliers to develop and produce sustainable
components.

Fairphone's value stick is based on the company's commitment to sustainability. By

creating sustainable smartphones, Fairphone is creating value for all of its
stakeholders.

7. Four Drivers of Red Queen Effect and Mitigation Strategies

The four drivers of the Red Queen effect are:

 Technology: New technologies are constantly being developed, which can

disrupt existing markets.
 Competition: Companies are constantly competing to innovate and improve
their products and services.
 Customer expectations: Customer expectations are rising all the time.
 Globalization: Companies are operating in increasingly globalized markets.

Mitigation strategies:
  Technology: Invest in research and development to stay ahead of the
competition and develop new sustainable technologies.
 Competition: Partner with other companies to develop and produce
sustainable components.
 Customer expectations: Educate customers about the importance of
sustainability and the benefits of sustainable products.
 Globalization: Expand into new markets to reach a wider range of customers.

8. Balance Scorecard

The Balance Scorecard is a performance management framework that helps

companies align their activities with their strategic goals. It is based on the four
perspectives of financial, customer, internal business process, and learning and
growth.

Fairphone's Balance Scorecard:

Analysis

Fairphone's balance scorecard is well-aligned with its corporate strategy of creating

a more sustainable smartphone industry. The scorecard includes objectives and
metrics for all four perspectives of the balanced scorecard: financial, customer,
internal business processes, and learning and growth.

The financial objective of increasing revenue from sales of sustainable smartphones

is important for Fairphone to maintain its financial viability and continue to invest in
its business. The customer objective of increasing customer satisfaction with
sustainable smartphones is important for Fairphone to attract and retain customers.
The internal business process objective of reducing the environmental impact of
smartphone manufacturing is important for Fairphone to achieve its goal of creating
a more sustainable smartphone industry. The learning and growth objective of
increasing employee engagement and satisfaction is important for Fairphone to
attract and retain talented employees.

The targets for each objective are ambitious but achievable. Fairphone is already
well on its way to achieving its financial target, with revenue from sales of
sustainable smartphones expected to reach $75 million in 2023. Fairphone is also
making good progress on its customer target, with an NPS score of 65% in 2022.
Fairphone's internal business process target is more challenging, but the company
has a number of initiatives in place to reduce the environmental impact of its
manufacturing operations. Fairphone's learning and growth target is also
challenging, but the company is investing in employee training and development to
improve employee engagement and satisfaction.

Overall, Fairphone's balance scorecard is a well-designed tool that is helping the

company to achieve its corporate strategy of creating a more sustainable
smartphone industry.

Recommendations

Fairphone should continue to monitor its progress against its balance scorecard
objectives and targets. The company should also regularly review its balance
scorecard to ensure that it is aligned with its corporate strategy.

One area where Fairphone could improve its balance scorecard is by adding a
metric to measure the impact of its business on the communities in which it operates.
For example, Fairphone could track the number of jobs it creates in developing
countries or the amount of money it invests in local communities.

Another area where Fairphone could improve its balance scorecard is by adding a
metric to measure the company's progress towards its goal of creating a more
sustainable smartphone industry. For example, Fairphone could track the
percentage of its smartphones that are made from recycled materials or the
percentage of its suppliers that are certified ethical.
9. 7S Model

7S Model of Strategy on Fairphone: Dialing Up Sustainability in Smartphones

The 7S model of strategy is a framework for analyzing and developing an

organization's strategy. The model consists of seven factors: structure, strategy,
systems, style, staff, skills, and shared values.

Structure

Fairphone has a relatively flat organizational structure, with few layers of

management. This allows for quick decision-making and collaboration. Fairphone
also has a number of cross-functional teams that work on specific projects. This
helps to break down silos and promote innovation.

Strategy

Fairphone's strategy is to create a more sustainable smartphone industry. The

company is focused on the production and sale of its own smartphones, but it is also
working to partner with other smartphone manufacturers and lobby for government
regulations that would require smartphone manufacturers to adopt more sustainable
practices.

Systems

Fairphone has a number of systems in place to support its strategy. These systems
include:

 A sustainable supply chain management system that ensures that Fairphone's

suppliers meet ethical and environmental standards.
 A modular smartphone design that makes it easy to repair and replace
components.
 A take-back program that allows Fairphone customers to recycle their old
smartphones.

Style

Fairphone's management style is collaborative and empowering. The company

encourages employees to share their ideas and to take ownership of their work.
Fairphone also has a strong culture of social responsibility.

Staff

Fairphone has a team of experienced and passionate employees who are committed
to the company's mission. Fairphone also invests in training and development to help
its employees grow their skills.

Skills
Fairphone's employees have a wide range of skills and expertise. This includes skills
in engineering, design, manufacturing, marketing, and sales. Fairphone's employees
are also skilled at working collaboratively and solving problems.

Shared Values

Fairphone's shared values are:

 Sustainability: Fairphone is committed to creating a more sustainable

smartphone industry.
 Fairness: Fairphone is committed to treating all of its stakeholders
fairly, including its employees, suppliers, and customers.
 Innovation: Fairphone is committed to developing new and innovative ways to
make smartphones more sustainable.

10. Better Offs Test and Best Alternative Test

The Better Offs Test is a framework for evaluating whether a given strategic move
will improve the performance of a company. It asks the question: "Will the company
be better off with the new strategy than it was without it?"

To pass the Better Offs Test, a company must demonstrate that its new strategy will:

 Increase its revenue

 Reduce its costs
 Improve its customer satisfaction
 Strengthen its competitive advantage

The Best Alternative Test is a similar framework that asks the question: "Is the
proposed strategic move the best way to achieve the company's objectives?"

To pass the Best Alternative Test, a company must demonstrate that its proposed
strategy is:

 Feasible
 Desirable
 Sustainable

Applying the Better Offs Test and Best Alternative Test to Fairphone:

Better Offs Test:

 Customers: Fairphone's customers are better off because the company offers
more durable, repairable, and ethically sourced smartphones. Fairphone's
phones may be more expensive than traditional smartphones, but they are also
designed to last longer and have a lower environmental impact.
 Employees: Fairphone's employees are better off because the company pays fair
wages and offers good working conditions. Fairphone also sources its materials
from ethical suppliers, which means that its employees are not involved in the
exploitation of workers.
 Shareholders: Fairphone is a social enterprise, which means that it is not focused
on maximizing profits for its shareholders. However, Fairphone is still a profitable
company, and its shareholders have seen a good return on their investment.
 Suppliers: Fairphone's suppliers are better off because the company pays fair
prices for its materials and commits to ethical sourcing practices. This helps to
ensure that Fairphone's suppliers are able to operate sustainably and profitably.
 Communities: Fairphone's communities are better off because the company is
committed to minimizing its environmental impact. Fairphone also supports local
communities through its ethical sourcing practices.

Overall, Fairphone's business strategy is making all of its stakeholders better off.
Fairphone is providing its customers with more sustainable smartphones, paying its
employees fair wages, offering a good return to its shareholders, supporting its
suppliers, and minimizing its environmental impact.

Best Alternative Test:

 Fairphone's goal is to create a more sustainable smartphone

industry. Fairphone's current strategy is to focus on the production and sale of
its own smartphones. However, Fairphone could also consider other
strategies, such as:
o Partnering with other smartphone manufacturers to help them make
their products more sustainable.
o Lobbying for government regulations that would require smartphone
manufacturers to adopt more sustainable practices.
o Investing in research and development to develop new sustainable
smartphone technologies.

It is difficult to say definitively whether Fairphone's current strategy is the best

possible way to achieve its goal. However, Fairphone's focus on the production and
sale of its own smartphones is a good start. Fairphone is demonstrating that it is
possible to produce sustainable smartphones at scale. The company is also building
a community of consumers who are committed to sustainable smartphone
consumption.
Overall, Fairphone's corporate strategy is sound. However, the company should
continue to explore other alternatives and consider new ways to achieve its goal of
creating a more sustainable smartphone industry.

Conclusion

Fairphone's corporate strategy is making all of its stakeholders better off, and it is a
good start to achieving the company's goal of creating a more sustainable
smartphone industry. However, Fairphone should continue to explore other
alternatives and consider new ways to achieve its goal.

11. Corporate Strategy (Three Scopes)

The three scopes of corporate strategy are:

 Scope 1: This refers to the activities that are directly under the company's
control, such as its production operations and distribution network.
 Scope 2: This refers to the indirect emissions that are associated with the
company's energy consumption, such as the emissions from its suppliers and
customers.
 Scope 3: This refers to all other indirect emissions that are associated with the
company's activities, such as the emissions from the production and disposal
of its products.

Fairphone's corporate strategy is focused on reducing its environmental impact

across all three scopes.

Scope 1: Fairphone uses recycled materials in its smartphones and designs modules
that can be easily replaced. The company also has a strict code of conduct for
suppliers, which includes requirements for environmental protection.

Scope 2: Fairphone sources its energy from renewable sources and is working to
improve the energy efficiency of its operations.

Scope 3: Fairphone is working to reduce the environmental impact of its products

throughout their life cycle. The company offers a five-year warranty on its
smartphones and provides free repair guides. Fairphone also has a take-back
program for its smartphones, which allows customers to recycle their old phones.

Fairphone's corporate strategy is aligned with its goal of becoming a leader in the
sustainable smartphone market. The company is taking a comprehensive approach
to reducing its environmental impact, which is likely to make it more competitive in
the long term.