How can customers be retained can the offer be

 How can
customers be
retained?
 Can the offer be
relaunched ,
repackaged or
streamlined?
Product /
Service Mix
Post patent strategy
 Managing complexity as a constant task

Striving for cost improvements
The product life cycle
17

© Han Zheng, 2019
18
The PESTEL Framework

© Han Zheng, 2019
General PESTEL analysis for China
(relevant aspects differ for each company)
• Strategic priorities of China`s 5-year plan
• Economic policies
• …
• Investment in R&D
• International patents
• …
• Urbanization
• Aging society
• Dependency ratio
• Gini-coefficient
• …
• GDP development
• Exports
• Wages
• Service sector development
• Industrial output
• …
• Air pollution
• Energy intensity
• Ecological footprint
• …
• Business license
• Import license
• M&A policies
• …
19
The PESTEL Framework

© Han Zheng, 2019
• VUCA is an acronym used by the U.S. Military in the 1990s to
describe extreme conditions in Afghanistan and Iraq.
• The acronym has been adopted in the business world, as we have to
deal with constantly changing challenges brought on by politics,
economics, society and the environment.
FROM …
TO …
Problem solving and planning aimed
at reducing uncertainty
Actively engaging with uncertainty, requiring
higher levels of leadership agility
V
olatility
U
ncertainty
C
omplexity
A
mbiguity
20
„VUCA“ challenges for strategic decisions

© Han Zheng, 2019
Complexity
Characteristics: The
situation has many
interconnected parts and
variables. Some
information is available,
but its volume & nature
can be overwhelming to
process.
Ambiguity
Characteristics: Causal
relationships are unclear
and no precedents exist.
Volatility
Characteristics: The
challenge is unexpected
or unstable and may be
of unknown duration.
Knowledge about it is
often available.
Uncertainty
Characteristics: Despite
a lack of other
information, the event`s
basic cause and effect
are known. Change is
possible but not given.
+
+
-
How much do you know about
the situation?
How well can you predict the results of
your decision?
V
C
U A
21
„VUCA“ challenges for strategic decisions

© Han Zheng, 2019
22
Volatility - Volatility refers to the speed of change in an industry,
market or the world in general. It is associated with fluctuations in
demand, turbulence and short time to markets. The more volatile
the world is, the more and faster things change.
Uncertainty - Uncertainty refers to the extent to which we can
confidently predict the future. Truly uncertain environments are
those that don’t allow any prediction, also not on a statistical
basis. The more uncertain the world is, the harder it is to predict.
Complexity - Complexity refers to the number of factors that we
need to take into account, their variety and the relationships
between them. Under high complexity, it is impossible to fully
analyze the environment and come to rational conclusions. The
more complex the world is, the harder it is to analyze.