The end of the 'Sony Ericsson' Affair

This is a good case study of JV that never really worked as expected. One of the most interesting pieces of information was the fact that Sony was reluctant to link the handsets to the rest of its products which are very successful, fearing that Ericsson would had been benefited. This is also a very good example of how companies seeks to develop synergies based on their core competence. Sony has a great range of unique resources and core competences which should be linked to the handset.
It is quite interesting that when this JV was established the handset industry was not linked to any of other products by Sony.

Some articles for the full story: http://www.bbc.co.uk/news/business-15473954; http://www.bbc.co.uk/news/business-15285258

Nokia bets on Windows Phone future

Quite a few interesting lessons from Nokia's new strategy:
i) new strategy was developed by the new CEO which links to leadership styles;
ii) Nokia seems to be trying to develop a new segment in the market, which is a gamble, but its potential 'billion people';
iii) interesting to note how Nokia tries to differentiate from direct competitors with services (think VCA);
iv) Nokia's new strategy is based on a strategic alliance. This strategic alliance is particularly interesting because Microsoft does not have its own handsets (in contrast to Apple and Google).

Nokia bets on Windows Phone future

Finnish mobile phone maker Nokia has launched two new smartphones based on Microsoft's new Windows Phone 7.5 operating system.
The Lumia 800 and the Lumia 710 mark the beginning of Nokia's fightback against Apple's iPhone and rivals using Google's Android software

Read the whole article at: http://www.bbc.co.uk/news/business-15459118

Amazon unveils £130 iPad rival

The 'battle' of the tablets has some very interesting points (from strategic management). Although, the tablets are not technologically superior to existing devices (ie laptops), they are entertainment items, and Apple has create a new segment in the market. The success of these products lays with the complimentarities that are to be developed with the rest of the products (ie iPad and iphone). Amazon offers the new tablet as 'ungrade' to kiddle which quite dominant in its market. Amazon seeks to establish synergies between the Kindle Fire and its e-books, mp3s businesses. It is quite interesting that Amazon is expected to seek access to the mobile handsets for greater coverage of the market (as Google recently did with buying Motorola's handset business unit). Also, amazon's strategy is a very good example of 'low cost leadership' as it is losing about $50 per device.

Hewlett Packard to exit computing and buy Autonomy

This is a good case study for a number of strategic management concepts:
i) planned and emergent strategies: a few months ago HP had announced that they will concentrate on WebOS which has not produced the expected results; HP is quick in changing strategy, even if it must be very financially painful for them.
ii) exit from its cash-cow business: selling pc BU which is considered the biggest in the world. Interpreting the justification from a strategic management perspective, it seems that the software segment has larger profit margins. Interesting to note that this refocusing is a combined with the acquisition of Autonomy.
iii) the refocusing of the business is based on the expertise of its new CEO who has joined from SAP.
The article draws the parallel between HP and IBM a decate ago, but there is a fundamental difference; IBM was not No. 1 when decided to diversify. Also, HP's history of mergers has shown that it is not the most adaptable and flexible company.

Hewlett Packard to exit computing and buy Autonomy

Hewlett Packard has confirmed plans to stop making PCs, tablets and phones, in order to refocus on software.
It has also emerged that the US company has agreed to buy UK software firm Autonomy for £7.1bn ($11.7bn).

Read the whole article at: http://www.bbc.co.uk/news/business-14584428

Google to buy Motorola Mobility for $12.5bn

Good example of an acquisition which serves as diversification-focus strategy by Motoral and an external growth strategy by Google. Motoral has lost the battle for the handsets, so focuses in the corporate and government solutions sector where it is well placed. Google does not have the time to grow organically its handset SBU to compete with the other smartphones and hopes that its existing core competences and SBUs could help develop synergies.

Google to buy Motorola Mobility for $12.5bn
Internet giant Google has announced a deal to buy Motorola Mobility for $12.5bn (£7.7bn).
A joint statement said the boards of both companies had unanimously approved the deal, which should be completed by the end of this year, or early in 2012.
Earlier this year, Motorola split into two separate companies.
Mobility develops and manufactures mobile phones, while Motorola Solutions covers wider technologies for corporate customers and governments.

News Corporation and BSkyB takeover

Let aside the political issues of this takeover or merger, what is interesting from a strategic management perspective is the efforts of News Corp to develop synergies (http://www.bbc.co.uk/news/business-14104397) between different media platforms. This is a clear corporate direction (see a good review of the various attempts http://www.guardian.co.uk/media/organgrinder/2011/jan/05/news-corp-bskyb-david-elstein). An interesting question is why BSkyB was not part of the News Corp from the beginning since it was established by the same company (for a brief history/evolution of the company see: http://en.wikipedia.org/wiki/File:UK_satellite_TV_evolution_vector.svg), which should probably be attributed to risk management by News Corp. The other point which worth taking is that merger is the only strategic option as the legislation would not allow for collaborations and synergies via some sort of strategic alliance.

Why is Tesco struggling in the US?

Good example of MNEs and how companies struggle to apply their business model in (theoretically) similar markets. Also, it is worth noticing how Tesco has changed its strategy in US in order to position itself to a segment of the market which was pretty saturated.



Read the whole article at: http://www.bbc.co.uk/news/magazine-13190124

Product placement ban on British TV lifted

Interesting to follow the evolution of this Legal factor. Firstly, there was Economical pressures both at macro and micro level and then there is the Political as there was a clear indication in 2009 that a change in the Political Environment (government change) would change the Legal factors (see the FT article from 2009http://www.ft.com/cms/s/0/0fb9de6c-a15b-11de-a88d-00144feabdc0.html#axzz1FGxSQQOd).


Product placement ban on British TV lifted
A ban on product placement has been lifted, allowing advertisers to pay for their goods to be seen on British TV.
Paid-for references to products and services are now permitted for the first time in shows produced in the UK, including soaps and one-off dramas.

Read the whole article at http://www.bbc.co.uk/news/uk-12593061

Diageo to buy Turkish spirits firm Mey Icki

Good example of how a large established player in mature markets, seeks expansion in emerging markets via M&A. This acquisition is consistent with Diageos previous international strategies.


Diageo’s Turkish Delight
Diageo’s acquisition of Turkey’s Mey Içki from private equity firm TPG Capital today was not a real surprise, as nascent talks between the drink makers were first reported here back in December last year.
For the London-based drinks giant the numbers appear to add up.

Read the whole article at:http://blogs.wsj.com/source/2011/02/21/diageo%E2%80%99s-turkish-delight/

Peugeot and BMW form hybrid components joint-venture

Good example of Collaboration, Network Level Strategy. This is a Joint Venture between to well established rival companies in the automarket. This collaboration concerns a segment of the market that none of them entered in the early stages. It concerns a Macro-External factor (technology) which was an uncertainty in the previous decade and has now created a new segment in the market. As usual most of JV are driven by R&D needs. It is also interesting to note that in other industry these companies would had considered a stronger collaboration (Merger?) but it is well established that European governmenets will not give in easily on such mergers.


Peugeot and BMW form hybrid components joint-venture

French car maker PSA Peugeot Citroen and Germany's BMW have extended their engine partnership by creating a joint venture to develop, purchase and produce powertrain components for hybrid vehicles.

Read the whole article at: http://www.reuters.com/article/2011/02/02/us-peugeot-bmw-idUSTRE71124V20110202

additional article with more analysis on the same topic: http://uk.ibtimes.com/articles/110912/20110210/bmw-group-psa-peugeot-citro-n-electrification-venture-hybrid-technology.htm

Easyjet paint job makes fuel bills less of a drag

This is an example of how macro external factor (technology) can impact operations. It is an interesting one because nano-technology is always an uncertainty for scenario planning.

Easyjet paint job makes fuel bills less of a drag
By Jonathan Sumberg Transport reporter, BBC News

How to cut the costs of flying? It's one of the key questions facing the aviation industry.
With the price of a barrel of oil at about $100, airlines are having to think of new - and often ingenious - ways to save money.

Read the whole article at: http://www.bbc.co.uk/news/business-12428667

Nokia and Microsoft form partnership

Very interesting development in the mobile phones industry. Good example of how to companies which have traditionally been leaders in their industries, and now are falling behind, have decided to react. It is interesting to note that Microsoft has continued its recent corporate strategy of responding to dynamics in industries (mobile phones and internet) which are not core for it (software) with strategic alliances.
Quite interesting and insightful commentary by Cellan-Jones, on the impact of organisational culture for the choice of partner on behalf of Nokia. It links well with the theories on Network Level Strategies which suggest that collaborations are more successful if organisational cultures are close between the partnering companies. Moveover, also useful to emphasise that there is significant difference in the organisational culture between two companies for the same country and environment (Microsoft and Google).

Nokia and Microsoft form partnership

Nokia has joined forces with Microsoft in an attempt to regain ground lost to the iPhone and Android-based devices.
The deal will see Nokia use the Windows phone operating system for its smartphones, the company said.
It means that Nokia's existing operating systems will be sidelined

Read the whole article at: http://www.bbc.co.uk/news/business-12427680

Britain's changing High Street

Interesting facts and figure. Some of these could be sources of uncertainty particularly on the socio-cultural front.

Britain's changing High Street
The UK economy continued to grow, according to the latest figures, but consumer spending has slowed and retailers across the country are still feeling the effects of the recession. And research commissioned by the BBC into the number of vacant shops in England, Wales and Scotland suggests our changing consumer habits, as well as the downturn, are transforming the face of our High Streets.

Read the whole article at http://www.bbc.co.uk/news/magazine-11915437

China reassures US on key 'rare earth' minerals

Could rare earth materials availability become an uncertainty for the future of some industries?

China reassures US on key 'rare earth' minerals
China has reassured the US it has no intention of withholding "rare earth" minerals from the market, the US Secretary of State has said.
China suspended export of the metals, key to the global high-tech industry, to Japan after a diplomatic spat.

Read the whole artile at: http://www.bbc.co.uk/news/world-asia-pacific-11657982

Terrorism and cyber attacks among top threats to UK

For businesses that rely on online transactions, the cyber-terrorism is a significant uncertainty for the future.

Terrorism and cyber attacks among top threats to UK

Terrorism and attacks on computer networks are among the biggest threats to the UK, Home Secretary Theresa May has said ahead of the publication of a new National Security Strategy
The strategy will form the background for Tuesday's Strategic Defence Review, setting out the shape of UK forces after expected budget cuts of 8%.

Read the whole article at: http://www.bbc.co.uk/news/uk-11562969##

Microsoft's Bing deepens ties with Facebook

Good example of how Microsoft creates synergies between one of its SBUs (search engine) and facebook.com (which they do not own 100% but they are one of the main shareholders). This actually workds as a good example of how strategic alliances work, too. Interesting to note, that Microsoft has spent almost a decade trying to catch up Google and it seems that are not capable of developing the reource/capability in terms of technology and they are definetely lacking in terms of reputation; however creating synergies with the most popular networking site could help them boost Bing's popularity and usage.

Microsoft's Bing deepens ties with Facebook

Microsoft's Bing search engine has begun showing US users which sites and products their Facebook friends like.
The move is an attempt to make web search results more personal.
It is part of a four-year alliance between the two companies and marks another step in Microsoft's attempt to displace market leader Google.

Read the whole article at: http://www.bbc.co.uk/news/technology-11540661

Edward E. Whitacre Jr.

Whitacre is a good example of 'expertise' leadership, he is brought in problematic companies and helps them recover.

Edward E. Whitacre Jr.
Edward E. Whitacre, the former chairman of AT&T, was named the chairman of the "New G.M.'' on June 9, 2009, as the federal government continued to shake up the bankrupt auto giant. The company said in January 2010 that he would become G.M.'s permanent chief executive. The move was not unexpected given how he had taken control of management since the ouster of G.M.'s former chief executive, Fritz Henderson.

Read the whole article at: http://topics.nytimes.com/topics/reference/timestopics/people/w/edward_e_whitacre_jr/index.html?inline=nyt-per

This is a classic example of strategic management. A series of factors in the macro environment increase the attaractiveness of an industry. BHP enters this industry, with an aquicition (note the bidding process). This is a vertical integration. Their strategy is justified by their long the vision.

BHP Billiton launches hostile bid for Potash

Mining giant BHP Billiton has launched a $40bn (£25.8bn) hostile takeover bid of Canadian firm Potash Corp after having had an initial offer rejected.
On Tuesday, Potash, the world's largest fertiliser producer snubbed BHP's offer, saying it undervalued the firm.

Read the whole article at: http://www.bbc.co.uk/news/business-11009145

“Straddling” bus–a cheaper, greener and faster alternative to commute

Not really an uncertainty as the key word indicates, but for those working on scenario planning it may provide some inspiration on uncertainty regarding forms of transportation, urbanisation, city life development, technology etc.

“Straddling” bus–a cheaper, greener and faster alternative to commute

A big concern on top of urban transportation planner’s mind is how to speed up the traffic: putting more buses on the road will jam the roads even worse and deteriorate the air; building more subway is costly and time consuming. Well, here is an cheaper, greener and fast alternative to lighten their mind up a bit: the straddling bus, first exhibited on the 13th Beijing International High-tech Expo in May this year. In the near future, the model is to be put into pilot use in Beijing’s Mentougou District (bjnews). (The official site of the high-tech expo put it as 3D fast bus, which I think is more confusing, for now I’ll just call it the straddling bus.)

Read the whole article at: http://www.chinahush.com/2010/07/31/straddling-bus-a-cheaper-greener-and-faster-alternative-to-commute/

Google enters travel market with flight data purchase

Google is diversifying while building on its core competences.

Google enters travel market with flight data purchase
By Daniel EmeryTechnology reporter, BBC News

Search engine giant Google has entered the travel market after acquiring flight information firm ITA Software.
ITA provides software that organises fares, flight and journey times that are used by airlines, travel agents and flight comparison sites such as Orbitz.
Google said it may well expand the scope, enabling users to search directly for flight destinations.

Read the whole article at: http://news.bbc.co.uk/1/hi/technology/10486358.stm