Part 1 : The competitive advantage of nations Based on Michael E Porter (1998)

1. “Nærings- og forretningsutvikling”Business strategy II - enterprise development3ØM45510 ”studiepoeng” - ECTS • Subject teachers : • Harald Romstad (part 2) – macro business strategy • Andrew Criswell (part 2) – international economics Part 1: The competitive advantage of nations Based on Michael E Porter (1998) Lectures given by Harald Romstad

2. About my self • About my self: • Business experience from banking and industry • Management experience from industry and principal Hedmark Regional College 5 years and dean at ØSIR for 3 years • Teaching in business studies, entrepreneurship, strategy, specialist studies in forest industry, human capital, project and master studies in planning • Hobbies • Coach in athletics and handball • Fishing and hunting • e-mail:Harald.Romstad@osir.hihm.no • Telephone: 950 30 732 (m), 624 30 450 (j) • Url: http://www.osir.hihm.no/sfo/ansatte/haraldr/

3. Further education course • The approach for this course (part two): • Integrated knowledge about: • Strategy • From the business point of view • From the nations point of view • Industry development (fx car industry in Germany) • Business development (fx Volvo industries in Sweden) • Plant development (the single enterprise) • The means to success: • Competitive advantages • Nations • Industry • “Survival of the fittest” • Innovations and creative entrepreneur ship • Skill • Technology • Luck • Wages

4. The approach of the course • Understanding – what improve a comprehensive industry development • General criteria • International trends • Processes • Social development – nations and community conditions • Industry comprehensive • Competitive advantages • Strategy • Growth is a must • The driving forces: • Technology development • Competition itself • Demanding suppliers, costumers and government • Understand how enterprise business can develop competitive advantages under these conditions

5. Accomplishment • 5 lectures • A brief summery on The competitive advantage of nations • Cases given by Romstad • Class discussions • A student paper on ca. 20 pages, three students on each group (deadline sending in: 15. December) • Theoretical part (Porter chapter; 1-4, 6 and 10) • The theories spend on one particular international competing industry from “your” country (Porter chapter; 5 and 7-9) • A more general analysis of the potential of comprehensive industry development in “your” country on a international level (Porter; 10) • “Examine” (oral: 13-15. December) • Presentation of the paper and defending your presentation towards two other student groups (opponents) An open evolution from Harald • You are going to do your own research by copying the methods from Porter chapter 5, 7, 8 and 9 (industry) and chapter 10 National Economies

6. Accomplishment Readings: Michael E Porter (1998) “The competitive advantage of nations”, ca. 600 p. Harald Romstad (2005): Handouts, ca. 50 p. • 1.lecture (14.october) • Introduction • How to write the student paper • Cases • 2.lecture (28.october) • Porter chapter 1-4 • 3.lecture (4.november) • Porter chapter 1-4 • 4.lecture (11.november) • Porter chapter 5-6 • 5.lecture (18.november) • Porter chapter 7-10 • Discussions • Approach • There are no miracle cure, but adopting the environment, combined with own skill, experience, innovation and entrepreneurship might be useful • Understanding trends are important

7. On your own • Learning by research by your own in groups • Guidance from teacher when you need it • On campus on Wednesdays, Thursdays and Fridays • On mail, I will try to answer within 24 hours • I am occupied with other teaching on Mondays and Thursdays and Fridays • I am occupied with many projects • 1 am occupied with community politics on Mondays • Before meeting/guidance • Be prepared • Have your own suggestions on how you will solve the problems • Use e-mail and my mobile 950 30 732

8. Emphasize • The aim of business development is not • Increasing labour of hands / labour places • But • Increasing revenue, gross product “Every individual endeavours to employ his capital so that its produce may be of greatest value. He generally neither intends to promote the public interest, nor knows how much he is promoting it. He intends only his own gain. And he is in this led by an INVISIBLE HAND to promote an end which was no part of his intention. By pursuing his own interest he frequently promotes that of society more effectually than when he really intends to promote it” ADAM SMITH, The Wealth of Nations (1776)

9. The examine • Evaluation of the student paper - rules

10. This examine counts 70% • The papers (counts equal) 70% • Evaluation of oral examine (10%) • Defence only improving the oral marks • Opponents (opposing ca. 7,5% - twice) • The opponents will not be able to bring down the marks to the defending group. The opponents can only improve/worsen their own marks • The student paper • Ca. 20 pages, font 12 and line space one

11. An economic joke • The Poverty of Economics?! • George Stigler Nobel laureate and a leader of Chicago School was asked why there were no Nobel Prizes awarded in the other social sciences, sociology, psychology, history, etc. • "Don't worry", Stigler said, "they already have a Nobel Prize in ... literature"

12. An economic joke • Man walking along a road in the countryside comes across a shepherd and a huge flock of sheep. Tells the shepherd: "I will bet you $100 against one of your sheep that I can tell you the exact number in this flock." The shepherd thinks it over; it's a big flock so he takes the bet. "973," says the man. The shepherd is astonished, because that is exactly right, and says: "OK, I'm a man of my word, take an animal." Man picks one up and begins to walk away. • "Wait," cries the shepherd, "Let me have a chance to get even. Double or nothing that I can guess your exact occupation." Man says sure. "You are an economist for a government think tank," says the shepherd. "Amazing!" responds the man, "You are exactly right! But tell me, how did you deduce that?" • "Well," says the shepherd, • "put down my dog and I will tell you."