Applied Strategy Class

Adjunct Professor Max Lapin 2020 Class Timeline

Feb 8 Feb 22 Mar 7 Mar 21 Apr 18 Apr 25

Intro Two banks Two M&M Two retail Two digital Two cellular stories stories stories stories networks Strategy compared compared compared compared compared framework

Case Tinkoff vs MMK vs vs vs MTS vs VIP example re Sber X5 Mail.ru MoEx

Multiple Midterm Final exam choice test case

maxlapin.com 1 BRM class was about the value chain Corporations have value chain organizational blocks that use models and research to take decisions

Purchasing Operations Sales

• Category management • Production planning • Pricing decisions • Total Cost of Ownership • Maintenance mgmt • Volumes delivery • Tender process • Ongoing improvement • Product PnLs HR & Strategy Invest-s Marktng Finance career • Value chain • Valuation • Market size • Reporting • Selection • Alternatives • Capex • Channel • Analysis • Talent mgmt • Prioritization Planning Selection • Value • EVP • Capital • Funnel and management • Career Structure Conversions choices maxlapin.com 2 Applied Strategy Looks Into Value Chain Advantages To Understand The Winners Key questions Usual sources Step 1. Do Basic What it does, what are the Annual reports and the Research assets, what is the history press

Step 2. Find Its What are the resources, Investor presentations and Value Chain key processes and results own research

Step 3. Understand What is the market size, B2C. B2B sites. Its products what is the customer value IFRS products notes.

Step 4. Find the How does the value chain IFRS notes, financial Money make money from products models, analyst coverage

Step 5. How It Why the company survived Strategy presentations and Beats Competitors and will survive earnings call minutes maxlapin.com 3 Step 1. Do Basic Research …may easy take an hour or more…

‘About’ section of the website https://www.moex.com/s348 http://fs.moex.com/files/8610

‘Annual report’ download https://www.moex.com/s1354

Newsfeed ‘bout the company

maxlapin.com 4 Step 2. Find Its Value Chain …or draw it yourself… ‘Investors’ section of the website https://www.moex.com/en/exchange/ investors.aspx

‘Strategy’ section of the website

maxlapin.com 5 Step 3. Understand Its Products

See for yourself

Download the apps

See the customer feedback https://smart-lab.ru/

Find what the customers rage and vent about

maxlapin.com 6 Step 4. Find The Money

Get the PnL https://www.moex.com/s1355

See the products notes in the reporting

Find the segment note if any

maxlapin.com 7 Step 5. How It Beats Competitors

Read ‘About’ the history one more time

Look up the competitors websites & data

Sum it all up maxlapin.com 8 Answer the control questions • How far and why Vertical • Now vs past integration • Future vs now

• Got wider Product range • Got narrower • Why so

• How big is the market size Customer • Does it grow faster or slower than economy base • Can it disappear • Is it profitable Money • Why so • Getting better or worse

• Who are they Competitors • Where are they • Can they win in a foreseeable future maxlapin.com 9 Homework = get ready for the next class …please mind, it takes an hour easy… Research Tinkoff and Sber. Be ready for class to handle the questions below • What Tinkoff has that Sber does not Vertical • What Sber has that Tinkoff does not integration • Why is so

• Fundamental differences Product range • Why

• Who got whom Customer • Where is the growth base • Who wins • Who is profitable Money • What is the driver of the profitability • Which product / segment is the money generator • Do they compete Competitors • Who are the competitors for them as well • Who is stronger maxlapin.com 10 Class Timeline

Feb 8 Feb 22 Mar 7 Mar 21 Apr 18 Apr 25

Intro Two banks Two M&M Two retail Two digital Two cellular stories stories stories stories networks Strategy compared compared compared compared compared framework

Case Tinkoff vs MMK vs Magnit vs Yandex vs MTS vs VIP example re Sber Severstal X5 Mail.ru MoEx

Multiple Midterm Final exam choice test case

maxlapin.com 11 Step 1. Do Basic Research on Sber

maxlapin.com 12 Step 2. Find Its Value Chain @ Sber

maxlapin.com 13 Step 3. Understand its products @ Sber

maxlapin.com 14 Step 4. Find The Money @ Sber

maxlapin.com 15 Step 5. How It Beats Competitors @ SBER

maxlapin.com 16 Step 1. Do Basic Research on Tinkoff

maxlapin.com 17 Step 2. Find Its Value Chain @ Tinkoff

maxlapin.com 18 Step 3. Understand its products @ Tinkoff

maxlapin.com 19 Step 4. Find the money @ Tinkoff

maxlapin.com 20 Step 5. How It Beats Competitors @ Tinkoff

maxlapin.com 21 Answer the control questions • How far and why Vertical • Now vs past integration • Future vs now

• Got wider Product range • Got narrower • Why so

• How big is the market size Customer • Does it grow faster or slower than economy base • Can it disappear • Is it profitable Money • Why so • Getting better or worse

• Who are they Competitors • Where are they • Can they win in a foreseeable future maxlapin.com 22 Homework = get ready for the next class …please mind, it takes an hour easy… Research MMK and Severstal. Be ready for class to handle the questions below • What MMK has that Severstal does not Vertical • What Severstal has that MMK does not integration • Why is so

• Fundamental differences Product range • Why

• Who got whom Customer • Where is the growth base • Who wins • Who is profitable Money • What is the driver of the profitability • Which product / segment is the money generator • Do they compete Competitors • Who are the competitors for them as well • Who is stronger maxlapin.com 23 Class Timeline

Feb 8 Feb 22 Mar 7 Mar 21 Apr 18 Apr 25

Intro Two banks Two M&M Two retail Two digital Two cellular stories stories stories stories networks Strategy compared compared compared compared compared framework

Case Tinkoff vs MMK vs Magnit vs Yandex vs MTS vs VIP example re Sber Severstal X5 Mail.ru MoEx

Multiple Midterm Final exam choice test case

maxlapin.com 24 Step 1. Do Basic Research on MMK

maxlapin.com 25 Step 2. Find Its Value Chain @ MMK

maxlapin.com 26 Step 3. Understand its products @ MMK

maxlapin.com 27 Step 4. Find the money @ MMK

maxlapin.com 28 Step 5. How To Beat Competitors @ MMK

maxlapin.com 29 Step 1. Do Basic Research on Severstal

maxlapin.com 30 Step 2. Find Its Value Chain @ Severstal

maxlapin.com 31 Step 3. Understand its products @ SVRSTL

maxlapin.com 32 Step 4. Find the money @ Severstal

maxlapin.com 33 Step 5. How To Beat Competitors @ SVRST

maxlapin.com 34 Answer the control questions • How far and why Vertical • Now vs past integration • Future vs now

• Got wider Product range • Got narrower • Why so

• How big is the market size Customer • Does it grow faster or slower than economy base • Can it disappear • Is it profitable Money • Why so • Getting better or worse

• Who are they Competitors • Where are they • Can they win in a foreseeable future maxlapin.com 35 Homework = get ready for the next class …please mind, it takes an hour easy… Research X5 and Magnit. Be ready for class to handle the questions below • What X5 has that Magnit does not Vertical • What Magnit has that X5 does not integration • Why is so

• Fundamental differences Product range • Why

• Who got whom Customer • Where is the growth base • Who wins • Who is profitable Money • What is the driver of the profitability • Which product / segment is the money generator • Do they compete Competitors • Who are the competitors for them as well • Who is stronger maxlapin.com 36 MidTerm Assignment

Up to date we have studied 5 companies. MoEx, Sber, Tinkoff, MMK and Severstal

Create a one-pager write-up summary on any one of these companies with:

The value chain map as per framework we used. Draw it.

And then answer the five questions:

• What is happening to the vertical integration? Before, now and then. • How wide is the range of products and why? • Who are the customers? How are they changing? • Where are the money? What products or segments generate profits? • And finally, identify how the company beats competitors.

The write-up should be limited to the one-pager format with your name and class # on it. Please do not forget to do that as in the last class there have been some cases.

• The rough format is enclosed further: maxlapin.com 37 Class Timeline

Feb 8 Feb 22 Mar 7 Mar 21 Apr 18 Apr 25

Intro Two banks Two M&M Two retail Two digital Two cellular stories stories stories stories networks Strategy compared compared compared compared compared framework

Case Tinkoff vs MMK vs Magnit vs Yandex vs MTS vs VIP example re Sber Severstal X5 Mail.ru MoEx

Multiple Midterm Final exam choice test case

maxlapin.com 38 Step 1. Do Basic Research on Magnit

maxlapin.com 39 Step 2. Find The Value Chain @ Magnit

maxlapin.com 40 Step 3. Understand its products @ Magnit

maxlapin.com 41 Step 4. Find the money @ Magnit

maxlapin.com 42 Step 5. How To Beat Competitors @ Magnit

maxlapin.com 43 Step 1. Do Basic Research on X5

maxlapin.com 44 Step 2. Find The Value Chain @ X5

maxlapin.com 45 Step 3. Understand its products @ X5

maxlapin.com 46 Step 4. Find the money @ X5

maxlapin.com 47 Step 5. How To Beat Competitors @ X5

maxlapin.com 48 Answer the control questions • How far and why Vertical • Now vs past integration • Future vs now

• Got wider Product range • Got narrower • Why so

• How big is the market size Customer • Does it grow faster or slower than economy base • Can it disappear • Is it profitable Money • Why so • Getting better or worse

• Who are they Competitors • Where are they • Can they win in a foreseeable future maxlapin.com 49 Homework = get ready for the next class …please mind, it takes an hour easy… Research Yandex and Mail.ru. Be ready for class to handle the questions below • What Yandex has that Mail.ru does not Vertical • What Mail.ru has that Yandex does not integration • Why is so

• Fundamental differences Product range • Why

• Who got whom Customer • Where is the growth base • Who wins • Who is profitable Money • What is the driver of the profitability • Which product / segment is the money generator • Do they compete Competitors • Who are the competitors for them as well • Who is stronger maxlapin.com 50 Class Timeline

Feb 8 Feb 22 Mar 7 Mar 21 Apr 18 Apr 25

Intro Two banks Two M&M Two retail Two digital Two cellular stories stories stories stories networks Strategy compared compared compared compared compared framework

Case Tinkoff vs MMK vs Magnit vs Yandex vs MTS vs VIP example re Sber Severstal X5 Mail.ru MoEx

Multiple Midterm Final exam choice test case

maxlapin.com 51 Step 1. Do Basic Research on Yandex

maxlapin.com 52 Step 2. Find The Value Chain @ Yandex

maxlapin.com 53 Step 3. Understand its products @ Yandex

maxlapin.com 54 Step 4. Find the money @ Yandex

maxlapin.com 55 Step 5. How To Beat Competitors @ Yandex

maxlapin.com 56 Step 1. Do Basic Research on Mail.ru

maxlapin.com 57 Step 2. Find The Value Chain @ Mail.ru

maxlapin.com 58 Step 3. Understand its products @ Mail.ru

maxlapin.com 59 Step 4. Find the money @ Mail.ru

maxlapin.com 60 Step 5. How To Beat Competitors @ Mail.ru

maxlapin.com 61 Answer the control questions • How far and why Vertical • Now vs past integration • Future vs now

• Got wider Product range • Got narrower • Why so

• How big is the market size Customer • Does it grow faster or slower than economy base • Can it disappear • Is it profitable Money • Why so • Getting better or worse

• Who are they Competitors • Where are they • Can they win in a foreseeable future maxlapin.com 62 Homework = get ready for the next class …please mind, it takes an hour easy… Research MTS and VIP. Be ready for class to handle the questions below • What MTS has that VIP does not Vertical • What VIP has that MTS does not integration • Why is so

• Fundamental differences Product range • Why

• Who got whom Customer • Where is the growth base • Who wins • Who is profitable Money • What is the driver of the profitability • Which product / segment is the money generator • Do they compete Competitors • Who are the competitors for them as well • Who is stronger maxlapin.com 63 Class Timeline

Feb 8 Feb 22 Mar 7 Mar 21 Apr 18 Apr 25

Intro Two banks Two M&M Two retail Two digital Two cellular stories stories stories stories networks Strategy compared compared compared compared compared framework

Case Tinkoff vs MMK vs Magnit vs Yandex vs MTS vs VIP example re Sber Severstal X5 Mail.ru MoEx

Multiple Midterm Final exam choice test case

maxlapin.com 64 Step 1. Do Basic Research on MTS

maxlapin.com 65 Step 2. Find The Value Chain @ MTS

maxlapin.com 66 Step 3. Understand its products @ MTS

maxlapin.com 67 Step 4. Find the money @ MTS

maxlapin.com 68 Step 5. How To Beat Competitors @ MTS

maxlapin.com 69 Step 6. Bonus Data on MTS

maxlapin.com 70 Step 7. Bonus Data on MTS

maxlapin.com 71 Step 8. Bonus Data on MTS

maxlapin.com 72 Step 1. Do Basic Research on VEON/VIP

maxlapin.com 73 Step 2. Find The Value Chain @ VEON / VIP

maxlapin.com 74 Step 3. Understand its products @ VEON

maxlapin.com 75 Step 4. Find the money @ VEON / VIP

maxlapin.com 76 Step 4.1. Extra dive in VIP

maxlapin.com 77 Step 5. How To Beat Competitors @ VEON

maxlapin.com 78 Step 6. Bonus Slides on VEON

maxlapin.com 79 Answer the control questions • How far and why Vertical • Now vs past integration • Future vs now

• Got wider Product range • Got narrower • Why so

• How big is the market size Customer • Does it grow faster or slower than economy base • Can it disappear • Is it profitable Money • Why so • Getting better or worse

• Who are they Competitors • Where are they • Can they win in a foreseeable future maxlapin.com 80 Final Exam Assignment

We will have studied 6 companies more. X5, Magnit, Yandex, Mail.ru, MTS, VIP

Create a one-pager write-up summary on any one of these companies with:

The value chain map as per framework we used. Draw it.

And then answer the five questions:

• What is happening to the vertical integration? Before, now and then. • How wide is the range of products and why? • Who are the customers? How are they changing? • Where are the money? What products or segments generate profits? • And finally, identify how the company beats competitors.

The write-up should be limited to the one-pager format with your name and class # on it. Please do not forget to do that as in the last class there have been some cases.

• The rough format is enclosed further: maxlapin.com 81