Typical class structure – pedagogy of learning

Repeat last session

Learning control
Starter: short example

Slides
 Maximum 15-20 content slides
Exercise
 Main points only: You need to
take your own notes
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Slides
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Exercise
Highly experiential and applied
Slides with real life examples.
Exercise  Merit of “old” examples
 Up to date material
Questions/quiz
ClimateWhat
changeiswith
strategy for
focus on you?transition
energy

https://about.bnef.com/blog/global-low-carbon-energy-technology-investment-surges-past-1-trillion-for-the-first-time/

Is it relevant for businesses?

Do firms talk about climate change?

 What
Climate riskis(CR)
strategy forreports
in annual you?coverage

Matsumura et al. (2022) Climate-risk materiality and firm risk in Review of Accounting Studies
 What
Task force forisclimate-rel.
strategy financial
for you?disclosure

Source: https://assets.bbhub.io/company/sites/60/2021/07/2021-Metrics_Targets_Guidance-1.pdf
 What
Brittany andisRE:
strategy
from thefor you?
past to the future
 What is strategy for you?
LEARNING OBJECTIVES
After this session you will be able to
- Define strategy
- Distinguish between functional, business and corporate strategy
- Understand different people’s role in strategy work
What is WHAT
strategy for you?FOR YOU?
IS STRATEGY
 HOW DOES THIS The
RELATE TO STRATEGY?
two-mode
Researchnetwork
setting

https://www.youtube.com/watch?v=Kq65aAYCHOw

What about this?

 WHAT
The IS STRATEGY?
two-mode
Researchnetwork
setting

“Strategy is a deliberate search for a plan of action that will

develop a business’s competitive advantage.”
Bruce Henderson, founder Boston Consulting Group

“…the determination of the long-run goals and objectives

of an enterprise of courses of action and the allocation of
resources necessary for carrying out these goals.
Alrfed D. Chandler , Harvard Business School

“Competitive strategy is about being different. It means

deliberately choosing a different set of activities to
deliver a unique mix of value.”
Michael Porter, Harvard Business School

“Long term direction of an organization.”

Textbook
 “LONG-TERM DIRECTION OF AN ORGANIZATION”

Three horizons
- Extend and defend current core
Long-term - Build emerging business
- Create viable options

- Long-term objectives; deliberate choices

financial and non-financial objectives
Directions - Emerging patterns of actions
Changing conditions

- “Organization” implies various entities

- Many relationships – internal & external
Organization - Different interests and views
- Organization’s boundary
What isa strategy
Nexans: forenergy
company of you?transition

https://investors.nexans.com/strategy/
 THE PURPOSE OF STRATEGY

Strategic goals

Vision

Mission

Values and culture

 THE PURPOSE OF STRATEGY

Aspiration for the future – rather long horizon

- Enthuses and creates commitment
Vision - “to create a better everyday life for the many
people.” (IKEA)

What is the company there to do

Mission - What business are we in?
Statement - What would be lost if we did not exist?
- How do we make a difference?

Core principles - guide strategy and behavior

- Independent of circumstances
Values - Can be costly
- “don’t be evil” (Alphabet)
 What is strategy for you?its values
Nexans:

https://www.nexans.com/en/career.html

What is the vision of Nexans?

What is the mission, the purpose of Nexans?

Do the values support the vision, mission and

strategic goals of Nexans? Explain, why or why not?
 STRATEGY DEVELOPMENT
The two-mode PROCESS
Researchnetwork
setting

1 Mission, vision and values

Strategic
3
goals

n o
ati
ul
rm
fo
ic
g
te
ra
St

Generic strategies
Diversification
4

Strategic Internationalization
2
analysis M&A and alliances
 SETS
The OF OBJECTIVES
two-mode
Researchnetwork
setting

Mission, vision and values

Objectives

Financial Strategic

external

internal examples

Tension?
 TCFD metrics: Totalenergies

https://totalenergies.com/sustainability/
reports-and-indicators/reporting-standards/
tcfd
 LEVELS
The OF STRATEGY
two-mode
Researchnetwork
setting

Corporate-level
Geography and scope
M&A, divestment

Business-level
Individual business in
its market

Functional
Resources, processes,
people
 WHO IS INVOLVED The
IN STRATEGY
two-mode MAKING?
Researchnetwork
setting

Chief Executive Officer (CEO)

• Ultimate responsibility
• Example: Christophe Guerin, CEO and president of Nexans

The Executive Committee is chaired by CEO, Christopher

Guérin. Its primary role is to define the strategy, the
resources allocation and the Group’s organization. It is in
charge of the proper process of the management of the
Group.

Managers of subsidiaries, divisions,

geographic regions, plants, operating units
• Familiar with their business
• Orchestrate their pieces of strategy

Source: https://www.nexans.fr/en/:
 The TCFD - Governance
two-mode
Researchnetwork
setting

Source: https://www.fsb-tcfd.org/recommendations/
 TheSTRATEGY
two-mode PROCESS
Researchnetwork
setting

Strategy framework and process

Analysis Formulation Execution

Monitoring and measuring

 THE ROADnetwork
The two-mode
Research AHEAD
setting

• Strategy is about asking the right questions.

– What must managers do, and do well, to make
a firm a winner in the marketplace and meet climate
targets?
• Strategy requires getting the right answers.
– Good strategic thinking and good management of the
strategy-making, strategy-executing process
– First-rate capabilities and skills in crafting and executing
strategy are essential to managing successfully
• Welcome and best wishes for your success!

© McGraw-Hill Education.
 Strategy development
The two-mode process
Researchnetwork
setting

1 Mission, vision and values

Session 1

Strategic
3
goals

n o
ati
ul
rm
fo Session 5-8
gic
te

Session 2
ra
St

external Generic strategies

Diversification
4

Strategic Internationalization
2
analysis Session 3+4 M&A and alliances
internal