BTA 2022
Individual Exam
Class Notes & All Power Point summarized
1
,Contents
Digital Transformation – MC1.................................................................................10
Industrial Revolution..........................................................................................10
New Digital Technologies....................................................................................11
Digital trends have an enormous impact on all industries........................................14
Three impact on industries..................................................................................14
Digitalization on Porters Five Force Model.............................................................14
Digital Transformation – MC2.................................................................................15
Reason of difficulties in digital transformation........................................................15
Digital Maturity Assessment = starting point Digital transformation..........................16
Digital Maturity Assessment can measure dig. capabilities.......................................16
Assessment.........................................................................................................16
1.Questionaire...................................................................................................16
2.Six capability dimensions.................................................................................16
3.Five levels of maturity.....................................................................................16
4.Conclusion Example.........................................................................................16
To what levels do they use data analytics (my questions).......................................17
New capabilities needed in the digital age.............................................................17
Key competencies..............................................................................................17
Lifelong Learning is the solution...........................................................................17
MC3 – Digital Transformation: Digital Business Models..............................................18
Digital Business Models that create a competitive advantage...................................18
Business Model...............................................................................................18
Interrelated Business Model components............................................................18
Impact of digital technologies on business models (why earn money, service etc.). .18
8 Digital business models that create competitive advantage................................18
Case Study – Digital showroom Audi.................................................................19
Understanding External Environment - STR MCI A....................................................21
Strategy...........................................................................................................22
3 different levels of strategy in an organisation (PYRAMID).....................................22
MC1 B Strategy Understanding the industry.............................................................26
Analyse Strategic Position...................................................................................26
Overall Strategic Process (indicative)....................................................................26
Porter’s Five Forces framework............................................................................26
Factors of Barging power....................................................................................28
Usage of Porter’s 5 forces framework...................................................................28
Industry Analysis...............................................................................................28
Critical Success Factors......................................................................................30
MC2 Strategy: Understanding Resources (internal) and Capabilities............................32
2
, RBV vs MBV......................................................................................................32
Threshold and distinctive capabilities....................................................................32
Core competencies (bundle resources & capabilities)..............................................32
VIRO Model (evaluate potential skill not find one)..................................................32
Benchmarking...................................................................................................34
Dynamic capabilities...........................................................................................35
Developing Strategic Capabilities.........................................................................35
Identify what creates Value.................................................................................36
SWOT...............................................................................................................36
MC3 Strategy: Understanding Strategic Choices.......................................................38
Preparation.......................................................................................................38
Video Jeff Bezos..............................................................................................38
Video Competitive Advantage Porter’s Generic Strategies.....................................38
Making strategic choices.....................................................................................39
Overall Strategy process..................................................................................39
Business Strategy...........................................................................................39
Competitive Strategy & - Advantage..................................................................39
Porter’s Three Generic Strategies (cost)................................................................39
1.Cost Leadership Strategy..............................................................................40
Economies of Scale – what causes in that industry? (market share)......................40
Parity vs Proximity..........................................................................................40
3b. Differentiation Strategy..............................................................................40
Mix Differentiation & Low-Cost 2 Hybrid Strategy................................................41
Bowman’s Strategy Clock (PRICE Customer Perception)..........................................41
Business Model..................................................................................................41
Steps to achieve sustainable business models.....................................................42
Corporate Strategy............................................................................................42
Corporate Strategy & Diversification..................................................................42
How to grow a business: Ansoffs Growth Matrix: current Str & future option.............43
Constraint to Diversification..............................................................................43
Value-creating drivers of diversification................................................................43
Value-destroying drivers of diversification.............................................................43
Diversification & Performance..............................................................................44
Vertical Integration............................................................................................44
BCG (Growth/Share) Matrix................................................................................44
MC1 – Strategic Marketing.....................................................................................46
B2B & B2C........................................................................................................46
STP Marketing...................................................................................................47
MCI Law & Regulation: Privacy & Intellectual Property...............................................50
3
, GDPR – European Privacy Law.............................................................................50
Intellectual Property (IP)....................................................................................51
Strategic Finance – MC1........................................................................................56
Preparation - DCF (Discounted Cash Flow Analysis) Model.......................................56
Importance of Strategic Finance..........................................................................57
Source of capital (in BS)..................................................................................57
Financial Position Freedom...............................................................................57
Do we have fiscal structuring advantages (increased profit, CF)............................57
[WACC – Weig. Av. Cost of Capital (financing of company]..................................57
Fiscal structuring advantage – go where you are treated best...............................58
Strategic financial analysis...............................................................................58
Willingness & Ability to pay..............................................................................58
Valuations Models..............................................................................................58
Key Financial Indicators decision foundation: Continuous Improvement.................58
Key Financial Indicators – Decision Making Revenue Growth.................................58
Capital Budgeting Model...................................................................................58
Financial Risk....................................................................................................59
Measure the financial risk.................................................................................59
Credit Rating (AA+ to D)..................................................................................59
Scenario Analysis/ FCST.....................................................................................59
WS1 – Strategic Finance........................................................................................60
Strategic Finance – Fin. Str. Growth Options MC2.....................................................60
Recap............................................................................................................60
Relationship Strategy & Value Creation.................................................................61
Mis- Measurement of Options..............................................................................61
NPV (doesn’t show you total value)...................................................................61
DCF...............................................................................................................61
Optionality (not considered in NPV/ CF).............................................................62
Strategic Valuation of a firm after having chosen a Growth Options.......................62
Valuations of chosen Strategies...........................................................................62
NPV Model “ingredient list”...............................................................................62
Free Cash Flow to Firm.......................................................................................62
ESG Environmental, Social and Governance – MCI Introduction..................................63
Preparation.......................................................................................................63
ESG Explanation................................................................................................64
Key takeaways...............................................................................................64
Value Creation...................................................................................................64
Strategic Importance ESG................................................................................64
ESG can clash with value creation.....................................................................64
4
Individual Exam
Class Notes & All Power Point summarized
1
,Contents
Digital Transformation – MC1.................................................................................10
Industrial Revolution..........................................................................................10
New Digital Technologies....................................................................................11
Digital trends have an enormous impact on all industries........................................14
Three impact on industries..................................................................................14
Digitalization on Porters Five Force Model.............................................................14
Digital Transformation – MC2.................................................................................15
Reason of difficulties in digital transformation........................................................15
Digital Maturity Assessment = starting point Digital transformation..........................16
Digital Maturity Assessment can measure dig. capabilities.......................................16
Assessment.........................................................................................................16
1.Questionaire...................................................................................................16
2.Six capability dimensions.................................................................................16
3.Five levels of maturity.....................................................................................16
4.Conclusion Example.........................................................................................16
To what levels do they use data analytics (my questions).......................................17
New capabilities needed in the digital age.............................................................17
Key competencies..............................................................................................17
Lifelong Learning is the solution...........................................................................17
MC3 – Digital Transformation: Digital Business Models..............................................18
Digital Business Models that create a competitive advantage...................................18
Business Model...............................................................................................18
Interrelated Business Model components............................................................18
Impact of digital technologies on business models (why earn money, service etc.). .18
8 Digital business models that create competitive advantage................................18
Case Study – Digital showroom Audi.................................................................19
Understanding External Environment - STR MCI A....................................................21
Strategy...........................................................................................................22
3 different levels of strategy in an organisation (PYRAMID).....................................22
MC1 B Strategy Understanding the industry.............................................................26
Analyse Strategic Position...................................................................................26
Overall Strategic Process (indicative)....................................................................26
Porter’s Five Forces framework............................................................................26
Factors of Barging power....................................................................................28
Usage of Porter’s 5 forces framework...................................................................28
Industry Analysis...............................................................................................28
Critical Success Factors......................................................................................30
MC2 Strategy: Understanding Resources (internal) and Capabilities............................32
2
, RBV vs MBV......................................................................................................32
Threshold and distinctive capabilities....................................................................32
Core competencies (bundle resources & capabilities)..............................................32
VIRO Model (evaluate potential skill not find one)..................................................32
Benchmarking...................................................................................................34
Dynamic capabilities...........................................................................................35
Developing Strategic Capabilities.........................................................................35
Identify what creates Value.................................................................................36
SWOT...............................................................................................................36
MC3 Strategy: Understanding Strategic Choices.......................................................38
Preparation.......................................................................................................38
Video Jeff Bezos..............................................................................................38
Video Competitive Advantage Porter’s Generic Strategies.....................................38
Making strategic choices.....................................................................................39
Overall Strategy process..................................................................................39
Business Strategy...........................................................................................39
Competitive Strategy & - Advantage..................................................................39
Porter’s Three Generic Strategies (cost)................................................................39
1.Cost Leadership Strategy..............................................................................40
Economies of Scale – what causes in that industry? (market share)......................40
Parity vs Proximity..........................................................................................40
3b. Differentiation Strategy..............................................................................40
Mix Differentiation & Low-Cost 2 Hybrid Strategy................................................41
Bowman’s Strategy Clock (PRICE Customer Perception)..........................................41
Business Model..................................................................................................41
Steps to achieve sustainable business models.....................................................42
Corporate Strategy............................................................................................42
Corporate Strategy & Diversification..................................................................42
How to grow a business: Ansoffs Growth Matrix: current Str & future option.............43
Constraint to Diversification..............................................................................43
Value-creating drivers of diversification................................................................43
Value-destroying drivers of diversification.............................................................43
Diversification & Performance..............................................................................44
Vertical Integration............................................................................................44
BCG (Growth/Share) Matrix................................................................................44
MC1 – Strategic Marketing.....................................................................................46
B2B & B2C........................................................................................................46
STP Marketing...................................................................................................47
MCI Law & Regulation: Privacy & Intellectual Property...............................................50
3
, GDPR – European Privacy Law.............................................................................50
Intellectual Property (IP)....................................................................................51
Strategic Finance – MC1........................................................................................56
Preparation - DCF (Discounted Cash Flow Analysis) Model.......................................56
Importance of Strategic Finance..........................................................................57
Source of capital (in BS)..................................................................................57
Financial Position Freedom...............................................................................57
Do we have fiscal structuring advantages (increased profit, CF)............................57
[WACC – Weig. Av. Cost of Capital (financing of company]..................................57
Fiscal structuring advantage – go where you are treated best...............................58
Strategic financial analysis...............................................................................58
Willingness & Ability to pay..............................................................................58
Valuations Models..............................................................................................58
Key Financial Indicators decision foundation: Continuous Improvement.................58
Key Financial Indicators – Decision Making Revenue Growth.................................58
Capital Budgeting Model...................................................................................58
Financial Risk....................................................................................................59
Measure the financial risk.................................................................................59
Credit Rating (AA+ to D)..................................................................................59
Scenario Analysis/ FCST.....................................................................................59
WS1 – Strategic Finance........................................................................................60
Strategic Finance – Fin. Str. Growth Options MC2.....................................................60
Recap............................................................................................................60
Relationship Strategy & Value Creation.................................................................61
Mis- Measurement of Options..............................................................................61
NPV (doesn’t show you total value)...................................................................61
DCF...............................................................................................................61
Optionality (not considered in NPV/ CF).............................................................62
Strategic Valuation of a firm after having chosen a Growth Options.......................62
Valuations of chosen Strategies...........................................................................62
NPV Model “ingredient list”...............................................................................62
Free Cash Flow to Firm.......................................................................................62
ESG Environmental, Social and Governance – MCI Introduction..................................63
Preparation.......................................................................................................63
ESG Explanation................................................................................................64
Key takeaways...............................................................................................64
Value Creation...................................................................................................64
Strategic Importance ESG................................................................................64
ESG can clash with value creation.....................................................................64
4
