Global Strategy - blog

How big a deal is IT? Is it really a ‘game changer’ for business? And if it is, does it change the game in a way that leaves the players looking more similar, or more differentiated from each other? 

The academic world is often considered to be isolated from the real world. However, now that the world is struggling with an unprecedented financial crisis, one must (at last) pay attention to the role that academic theories may have in the real-world developments.

The presentation was given by Prof. Robert Shiller the other day. Chaired by the director of the LSE, Howard Davies, this very topical and interesting public lecture may have practical consequences as well.

Why the Europeans will miss Bush? An Obama presidency will be greeted in Europe with enthusiasm, but as some Europeans have put it to me, "We realize that we won't have the excuse of George Bush."...  [Obama is] going to want Europe to stand up and do more... And Europeans will have a problem, in that they will embrace him, and they will not be able to say: "Well, this is the Bush administration. We have to resist."

Finnish foreign minister Alexander Stubb paid LSE a visit last week. Continuing the already well-developed political debate in this blog, I now make a brief re-cap of what was the message of a politician.

Does this sound familiar: one language and cultural heritage dominates business, arts and science across regional borders; first national leader who has African origins; increasingly complex and sophisticated economic system has diffused to the most peripheral regions of the globe; the leading nation is tied in a variety of military conflicts in South West Asia and simultaneously prepares for possible / probable conflicts in Balkan and North-East Europe?

The success of technology based firms hinges greatly upon their strategic fitness within two key domains: output markets and technology. First and foremost, the better the firms are able to develop and deliver valuable outputs (i.e. products and services) to customers within a focal target market, the better chances of success they have. Market based success is a function of an optimal market position and coverage and thus the demand potential underlying the targeted market. However, the value-added that that technology based firms ultimately deliver to their customers is based on an extensive and complex platform of technological knowledge and routines. Technology thus represents the inputs to a firm's productive process, whereby routines are required to turn the technological-scientific knowledge into tradable outputs that are perceived valuable by the customers. Despite normal mechanisms of market-based competition, much of competitive racing actually takes place in the technological domain.

The dynamics between a firm's strategy and finance is one major research focus in GloStra (see e.g. http://www.glostra.fi/research/business-model-evolution, as well as http://www.glostra.fi/faculty/hse/120-jaakko-aspara). Therefore, it is interesting to ponder what implications the current financial crisis and looming recession have for the relationships between firms' strategies and finance options, such as venture capital.

Since the political thread of this blog has been opened, I thought it is time to discuss Finland - at arm's length. It seems to be the general opinion in the Finnish society to see the underlying adaptive-submissive tendencies of the people as a bringer of strength in the society. One should sneer upon trouble-makers and show appropriate respect to the carrying forces of the society. If I remember correctly, ‘national consensus' was claimed to be the main source of efficiency by one of the contributors in a fairly recent issue of Kanava. Unfortunately I do not have the access to this issue right now.

As everyone knows, it is the ultimate honour of a Briton to have one's portrait in a banknote. The Guardian raised an issue today, as there seems to be a problem with the ten pound note, which has Charles Darwin and a hummingbird printed on it.