Financial Analysis, Business Network Strategy

1. Business as strategy: the three strategic logics
1. review strategy in terms of the Network model
2. leverage of engagement giving access to scarce knowledge (Honda)
1. engaged engine technology (core competence)
2. cars, motorcycle, and now jets!
3. Leverage alignment though tight knit activity systems (Southwest)
1. convince all stakeholders to follow company strategy of low cost-no frills
2. convince customers that carry-on baggage incurs a charge
3. as we expand the business, this becomes challenging
4. Leverage dynamic capabilities through continuous development (Cisco, Nokia)
1. strategic acquisitions (buy cheap, competent companies)
2. spot opportunities in the market for technology
5. Strategy is about leverage of network strengths (engagement, alignment, development).
6. Leverage increases rewards and risks
7. Conceptual and quasi conceptual companies
1. Baroquelev NY Stern: The best thing for leverage is the company that can expand without a fixed asset base.
2. Facebook expands personnel, but requires very few assets
3. A quasi conceptual company requires more equipment, but its in a position to borrow from the bank. (doesn't need to go to its equity base because its in a strong financial position)
8. Leaders Business Model
1. concatenation of these three business representation
2. Leverage, Engagement, Alignment and Development (strategy)
3. E- Evaluation
4. R- Reshaping S-Stakeholder network