Class Assignment. During this specialization, I learned and applied different frameworks for environmental and internal analysis; scenario and trade-off analysis; strategy formulation and implementation priorities.

1. Strategic Management
Coursera/CBS
Presented by: Delmy Alvarenga
Date: August 2017
FINAL ASSIGNMENT: E-TYPES
Tell us which design you think e-Types should present to the client, and why.
BACKGROUND
e-Types, a creative firm known by identity design, has the opportunity to gain massive
exposure, reputation and economical gains by creating the “Team Danmark” identity.
However, the mechanics for earning these rewards are ackward to the firm values.
First of all, the project is competition-based, which means that all participant design firms
work on the same information (creative brief). This allows equal competition, but works
against e-Types values: “dive deep into the client’s businesses”. This condition puts e-
Types in uncharted territories since they are used to control every step in the process.
However ambitious the project may be, e-Types finds itself in a crucial dilemma:
a) Shall e-Types remain loyal to their values? After all, it is their edgy workstyle what
might have awarded them the right to compete in the first place.
b) Shall e-Types trade their values and win the competition by presenting “mediocre
work”? They might win money and exposure, but lose their “edgy reputation”, which is
what differentiates them from other firms.
TRADE-OFF ANALYSIS
e-Types is a firm that values quality creative work. To deliver on their value proposition,
they adhere to intangible intellectual assets such as human talent, unique creative
processes and production quality. Whenever they trade off what makes them unique,
they follow the path to creative commoditization.
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Average Work
aka “Mediocre Work”
Edgy Work
aka “Best Work”

2. CHART 1. TRADE-OFFS ANALYSIS
ANALYSIS
a) If the client selects what e-Types considers their “Best Work”, the firm wins the
money, the exposure and remain edgy to the public eye, keeping their reputation safe.
b) If the client selects what e-Types considers their “Mediocre Work”, the firm wins the
money and the exposure. Their reputation might suffer for a while, but they can
always build a case in their website presenting the “director’s cut”, meaning,
presenting both options presented to the client.
c) If the client selects what e-Types considers their “Best Work” and loses, no reputation
is compromised. They remain edgy.
d) If the client selects what e-Types considers their “Mediocre Work” and loses, they
walk home with a hurt ego and can learn that they’re not fit for the client.
BEST SCENARIO: PRESENT BOTH WORKS THE GREATEST RISK IS AMBIGUITY.
CHART 2. SCENARIO ANALYSIS
Options Scenarios
Tangible
Trade-Off
Tangible
trade-Off
Intangible
Trade-Off
“Best Work”
Win Competition Win Money Win Exposure Remain Edgy
Lose Competition Lose Money Lose Exposure Remain Edgy
“Mediocre Work”
Win Competition Win Money Win Exposure Lose Edginess
Lose Competition Lose Money Lose Exposure Remain Edgy
“Both Works”
Win Competition
Mediocre Work
Win Money Win Exposure Lose Edginess
Lose Competition
Mediocre Work
Lose Money Lose Exposure Remain Edgy
Win Competition
Best Work
Win Money Win Exposure Remain Edgy
Lose Competition
Mediocre Work
Lose Money Lose Exposure Remain Edgy
Risk Assessment Win Assessment
SCENARIO A
Remain loyal to firm values
and present their “Best Work”
LOSE TODAY
• Lose the competition
• Lose economic profit
• Lose exposure
• Lose new business opportunities.
…WIN TOMORROW
• Stand up to their core beliefs.
• Keep positioning as “Edgy" firm.
• Use PR in strategic ways to attract
interest by niche clients.
SCENARIO B
Trade-off values and
present "Mediocre Work”
LOSE TOMORROW
• Compromise Quality.
• Lose their “Edge” Reputation.
• Lose differentiation.
• No defensible Value Proposition.
WIN TODAY…
• Win the Competition
• Win Economic Rents
• Win Exposure
• Win new businesses opportunities.
SCENARIO C
Present “Both Works” and let
the client decide
AMBIGUITY TOMORROW
• Compromise Quality.
• Diferentiation erosion.
• Leave Value Proposition into the
clients hand.
• Route to Commoditization.
WIN TODAY…
• Win the Competition
• Win Economic Rents
• Win Exposure
• Win new businesses opportunities.
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3. SYNTHESIS: A CALCULATED RISK
• The best case scenario for e-Types is to present “Both Works”.
• Winning this competition will broaden e-Types exposure and the firm might risk signaling
2 messages: one of quality work; one of “just-ok” work.
• Although winning the competition will opens lots of doors for new businesses, e-Types
should build a contingency plan not to sacrifice their long-term value proposition
(identity creation) over a short-term exposure tactic (winning the competition).
• To avoid confusion, e-Types should use this competition as an exposure, door-opener
tactic and should avoid the trap of accepting every design work that knocks on their
door.
• e-Types should use this competition as a Controlled Experiment where they allow
themselves to get out of their comfort zone, compete under new conditions and more
importantly, establish the levels of “edginess” they are willing to let go.
• Although e-Types might win this competition with “mediocre work”, they should arrange
permission to build a design case about e-Types design process, showcase both works,
and show prospects their edgy side.
• e-Types should measure the kind of new business that will require their services. They
should establish new business controls to measure how many prospects are clients
searching for stock identity and how many are open for disruption.
• e-Types should use their new exposure to advertise and showcase their edgy projects.
CHART 3. ROADMAP TO THE FUTURE
Short Term Middle Term Long Term
e-Types probability of winning is
higher if they present Both Works.
They might work by “Mediocre Work”
e-Types earns an agreement with
“Team Danmark” to build a design
case, showing both, the original edgy
proposal and the selected proposal.
e-Types protects it’s “edgy”
reputation by presenting flexible
thinking and design capabilities.
e-Types wins economic profit that allows them to raise capital to invest
in firm capabilities, talent acquisition and communications
e-Types wins exposure that allows
them to broaden their potential
customers base.
e-Types will start getting “do-what-I-
want” kind of prospects.
e-Types starts measuring the kind of
new business that will require their
services. They should establish new
business controls to measure how
many prospects are clients searching
for stock identity and how many are
open for disruption.
e-Types rejects mediocre clients and
focuses ony on clients that listens to
their edgy recommendations.
e-Types should use their new
exposure to advertise and showcase
their edgy projects.
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4. Strategy Formulation
Coursera/CBS
Presented by: Delmy Alvarenga
Date: August 2017
COURSE ASSIGNMENT: E-TYPES STRATEGY
What kind of company does e-Types growth into? The kind of company that
complies with whatever the client wants or a company that challenges clients?
What should e-Types do going forward?
BACKGROUND
e-Types is a Copenhagen based design consultancy that creates relevant brands based on
strong ideas, strategy and creative edge. Their main focus is the creation of strong brands
that move the world forward through visionary ideas. To deliver on their promise, they work
along 4 units:
e-Types Studio
Brand development.
We create concepts, strategies, design, communication, space, campaigns and films. From
a strategic standpoint, we develop the creative ideas that propel the identity of a brand
forward. The power of beauty.
e-Types Digital
Digital branding.
We conceptualize and create digital solutions – corporate websites, commerce, campaign-
sites and more – to build a full brand experience. Digital to the bone.
e-Types Daily
Brand implementation.
We design and conceptualize magazines, annual reports, packaging, posters,
books, signage & wayfinding. We make brands come alive with huge precision and a deep
respect for design craftsmanship. The devil is in the detail.
Playtype
Type foundry and concept store.
We develop iconic typefaces and combine them with lifestyle products. We put a playful
spin on the classic world of typography, bringing life, colour and edge to the craft. We love
type.
SOURCE: http://www.e-types.com/about
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5. DESIGN INDUSTRY IN DENMARK
Status of creative industries, according to the “Denmark at Work, Plan for Growth in the
Creative Industries ”, by The Danish Government (2013).1
Denmark’s creative industries are strong.
• The creative industries in Denmark span a wide range of areas, comprising a total of 11
sectors: architecture, books & press, design, film & video, digital content production &
computers, arts & crafts, music, fashion & clothing, furniture & interior design, radio &
TV and advertising. The sectors vary greatly and include manufacturing companies,
knowledge service companies and companies that create artistic content.
• Internationally, the creative industries have seen strong growth in the past decade,
reflecting factors such as increased global prosperity and new information and
communication technologies. This trend is expected to continue in future years, keeping
pace with the growing middle class in the emerging economies. This is a potential
source of increased growth for the creative industries, resulting especially from greater
demand for lifestyle and design products. One example is the increasing Danish export
of fur to the Asian market. Furthermore, the spread of smartphones, tablets and PCs etc.
is expected to increase the demand for computer games, learning games, apps and other
creative digital content.
• There is increasing focus in Denmark and the rest of the world on how creative
industries, such as architecture and design, can contribute to the green transition, e.g.
by developing environmentally and climate friendly buildings and urban environments or
through products and packaging that are produced from biodegradable or recyclable
materials. The vast majority of a product’s environmental footprint is defined during the
early design phase, and many environmental issues can therefore be solved by focusing
early in the product development process on reducing the environmental impact. Finally
green transition and sustainable production are also gaining ground in the fashion &
clothing industry, which is currently one of the most polluting industries in the world.
The creative industries make up a significant share of the Danish economy.
• In 2010 they employed approx. 85,000 persons in service as well as manufacturing, and
had revenue of about DKK 200 billion. The creative industries thus represent 6-7 per
cent of total revenue and employment in Danish business and industry. This trend has
been particularly strong in parts of the fashion & clothing sector, where productivity is
also higher than the average for Danish business and industry as a whole.
• With strong and internationally recognised skills within design, architecture and fashion,
Denmark has a sound basis for obtaining a share of the increasing market for creative
products and solutions. In recent years, these industries have also experienced
significant growth, while other sectors, including the furniture and interior design sector,
have done less well – in these areas there is a need for change and for developing new
business models.
http://em.dk/english/publications/2013/13-02-07-plan-for-growth-in-the-creative-industries-and-design1
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6. Creative industries contribute to innovation and growth in the rest of the business sector.
• In increasingly intense international competition, businesses are increasing their use
of creative competencies to develop, design and market their products and services.
For example, Danish businesses use designers to develop aesthetic and user-friendly
solutions which differentiate them from competing businesses and which customers
are willing to pay a higher price for, while advertising agencies and developers of digital
content supply communication and marketing solutions to businesses.
• A number of the leading Danish manufacturing companies are leading the way in the use
of design and user-driven innovation as part of the development and differentiation of
their products. With this growth plan, the government, in cooperation with businesses
and organisations within the creative industries, aims to develop the Danish positions of
strength and, especially, boost growth and employment in the areas where global
demand is opening up new opportunities for Danish businesses.
CHART 1. FIVE FORCES ANALYSIS
Threat of Entry
MEDIUM
A number of the leading Danish
manufacturing companies are leading the
way in the use of design and user-driven
innovation as part of the development
and differentiation of their products.
Power of Suppliers Intensity of Rivals Power of Buyers
MEDIUM
Internationally, the creative industries
have seen strong growth in the past
decade, reflecting factors such as
increased global prosperity and new
information and communication
technologies. This trend is expected to
continue in future years, keeping pace
with the growing middle class in the
emerging economies.
HIGH
The creative industries in Denmark span
a wide range of areas, comprising a total
of 11 sectors: architecture, books &
press, design, film & video, digital
content production & computers, arts &
crafts, music, fashion & clothing,
furniture & interior design, radio & TV
and advertising. The sectors vary greatly
and include manufacturing companies,
knowledge service companies and
companies that create artistic content.
MEDIUM
A number of the leading Danish
manufacturing companies are leading the
way in the use of design and user-driven
innovation as part of the development
and differentiation of their products.
Threat of Substitutes
MEDIUM
Danish businesses use designers to
develop aesthetic and user-friendly
solutions which differentiate them from
competing businesses and which
customers are willing to pay a higher
price for, while advertising agencies and
developers of digital content supply
communication and marketing solutions
to businesses.
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7. UNDERSTANDING THE COMPETITIVE LANDSCAPE
Top firms define themselves as torch-bearers of authenticity, purpose, meaning and
functionality. They all use Origin as a value generator and they all articulate their beliefs
in a clear, direct way, showcasing that their value is intangible and not just business.
Firm positioning is out of the main competitors strategic approach. All firms show
Perspective as their guiding strategy, allowing a strong firm vision, risk-friendly and
bold character as principles that build their unique value proposition.
Among these firms, Stupid Studio is the only one to state clearly that they’re not a
money-making machine. Their strategy is so bold that they are willing to lose business
in order to be faithful to their values.
CHART 2. COMPETITORS ANALYSIS
Firm Vision Strategy Specialties Size
eTypes
e-Types is a
Copenhagen based
design consultancy.
We create beautiful and
relevant brands based
on strong ideas and
strategy.
We crystallize big ideas to build
strong brands. Brands that stand
out and clearly communicate
what they’re all about. Brands
that move the world forward.
We challenge your ways and
encourage new thinking. We
craft bold solutions that inspire
the people around us.
We don’t follow trends, but work
hard to make others follow you.
digital design
strategic design
graphic design
strategic branding
digital experiences
51-200
employees
Kontrapunkt
Kontrapunkt is a
leading Scandinavian
design agency.
We believe in the value
of being genuine and
always seek the true
essence of a brand.
We admire those, who
have the courage to
stand up for who they
really are.
In a world that is becoming more
and more transparent, you need
inspiring and honest brands, you
feel like spending time with.
Brands that foster lasting trust
and loyalty.
brand strategy
corporate identity
graphic design
branded spaces
digital design
digital strategy
service design
brand typeface
51-200
employees
Stupid Studio
Stupid Studio is a
Danish design agency.
We design with purpose
and meaning, and we
have fun along the way.
Actually, we don’t really
believe you can make
something great without
being in love with it.
Loving our work is our
reason for being.
We’re not desperate to take just
any customer, and we’re not
driven by a demand for ever-
increasing profits. We are here to
pursue our passion, and that
means an honest and
straightforward collaboration
with you. If our company
personalities click, we’ll
continue working together. If
not, that’s okay too.
Design
Animation
Identity
Motion Graphics
Web
Webdesign
Webdevelopment
App design
UI
UX
Strategy
Campaigns
11-50
employees
Hello Monday
Hello Monday is an
independently owned
company with entities
in the US and
Denmark.
We believe in a world
that is experimental,
innovative and fun.
Our agency is built on the
premise that it is possible to
make a creative playground
rather than a production factory.
The equation is simple: happy
people create joyful digital
experiences.
We specialize in digital
experiences and
products across web,
tablet and mobile
devices.
11-50
employees
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8. UNDERSTANDING E-TYPES VALUE PROPOSITION
e-Types present itself as a local firm, establishing its Danish origin as part of their brand
value. As we identified before, Denmark, as a country, has build a strong identity through
its creative industry development, allowing firms to capitalize and develop an Origin
Branding identity. They define themselves as a “consultancy” firm, placing their business
as intangible. They deliver their main proposition in the form of ideas and concept creation
and materialize their offer in the form of design, campaigns, films, websites, magazines,
reports, packaging, posters, books and typefaces design, among other specific products.
Furthermore, e-Types main value is not what they do, but on how they do what they do.
Their real strategic value lays in their People, Culture, Systems and Processes, making
imitation hard for other industry players.
CHART 3. ETYPES PROPOSITION
eTypes Strategy Business Units Team Process & Tech
About
• e-Types is a Copenhagen
based design consultancy.
• We create beautiful and
relevant brands based on
strong ideas and strategy.
e-Types Studio
Brand Development
• We create concepts,
strategies, design,
communication, space,
campaigns and films.
• From a strategic standpoint,
we develop the creative
ideas that propel the identity
of a brand forward.
• The power of beauty.
Who we are
• We are a family of four –
allowing us the level of
specialization we need to be
the very best at what we do
How we work
• We challenge your ways and
encourage new thinking.
• We craft bold solutions that
inspire the people around
us.
• We don’t follow trends, but
work hard to make others
follow you.
What we do
• We crystallize big ideas
to build strong brands.
• Brands that stand out and
clearly communicate what
they’re all about.
• Brands that move the world
forward.
e-Types Digital
Digital Studio
• We conceptualize and create
digital solutions – corporate
websites, commerce,
campaign-sites and more –
to build a full brand
experience.
• Digital to the bone.
Latest Hiring Openings
• Digital Designer
• Senior Front-End Developer
• Digital Design Intern
• Senior Designer
• Brand Consultant
e-Types Daily
Brand Implementation
• We design
and conceptualize magazine
s, annual reports, packaging,
posters, books, signage
& wayfinding.
• We make brands come alive
with huge precision and a
deep respect for design
craftsmanship.
• The devil is in the detail.
e-Types Playtype
Type foundry & concept store
• We develop iconic typefaces
and combine them with
lifestyle products.
• We put a playful spin on the
classic world of typography,
bringing life, colour and
edge to the craft.
• We love type.
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9. LEARNING OBJECTIVE #1: WHY DO WE NEED A STRATEGY?
The Denmark design’s competitive landscape is a tough one not because of saturation,
but because rival firms do not focus on products but on vision and values.
Benchmarked design firms show a strong belief system and strong guiding principles that
instead of placing value on what they sell, they place value on how they work, leading no
firm to be like another, making imitation hard to achieve and capitalising on an ever
evolving strategy where human creative talent, culture and internally developled processes
and systems are the main currency.
LEARNING OBJECTIVE #2: STRATEGY FORMULATION
After the previous findigns and analysis, we present 2 major areas where e-Types shall
focus for its future success:
1. Strategy as Perspective
e-Types shall continue its values-based strategy in order to keep its edge and sustain value
through time. In order to increase value over time, eTypes should trim their perspective
by defining a tweet-like value proposition statement, keeping in mind the following
Non-Tradeable Core Values:
• Never a follower. make others follow you.
• Believe in the power of beauty.
• The devil is in the detail.
2. Digitisation of Business Model
Digitisation and new technology will create new business models and will constitute a
significant driver for productivity growth. The level of digitisation in Danish companies is
high but an accelerating spread of new technologies makes demands on Danish
companies’ capacity for change.
This development is driven by the rapid development in the volume of available data and
the increase in computer power as well as by new technologies such as intelligent robots,
Internet of Things and Big Data. It is therefore important that there is a focus on providing
good framework conditions to ensure that Danish companies can continue to exploit all the
opportunities of digitisation and new technologies.2
eTypes cannot place “digital” as an strategic value. It’s still not the case, but after
technology democratization, digital will be a commodity. Hence, eTypes shall leverage
digital and make it a part of their business model.
a) Digital as Internal Culture Enhancer: eTypes has the oportunity to build a global
community of design, achieving a network of ready-to-hire remote creative talent.
b) Digital for Process Optimization: From client acquisition, billing, communications, and
work management, eTypes shall audit all processes in order to optimize operations.
c) Digital as an Expansion Strategy: eTypes shall consider how digital platforms and
virtualisation of work allows them to expand to new markets and develop proprieatry
software, processes and tools for brand indentity consultancy.
http://em.dk/english/publications/2017/denmark-going-for-growth2
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10. CHART 4. DIGITAL AS EXPANSION STRATEGY
LEARNING OBJECTIVE #3: SUB-OPTIMAL STRATEGIES
Managers too often formulate sub-optimal strategies because multiple paradigms are
overlooked, such as information scarcity, cognitive biases, time, and the human factor of
the strategist. For this project, the primary problems I faced, and fear produce a sub-
optimal strategy are:
• Information availabilty: The specialiazed information regarding Danish design industry.
• Market Foreigness: The language barrier and key success metrics between occidental
and european cultural differences.
• Time: The time available to present a coherent strategy with the available information.
LEARNING OBJECTIVE #4: MEASURES FOR STRATEGY OPTIMIZATION
No strategy survives the enemy, the old saying goes, and it should work as a reminder that
strategies need a mindset that allows managers to execute and modify in real-time. For
this, instead of planning a series of meticulous steps, managers should aim for clear goals
and clear action steps that allow for implementation flexibility.
In the presented strategy, I worked around 2 main areas of focus: First, e-Types has the
opportunity to trim and strengthen a long-term vision based on a clear perspective not only
about what they do, but most importantly highlight their unique values, culture and
processes. Secondly, e-Types has a long digital journey ahead. Here, the recommendation
is to acknowledge digital as a future commodity, and instead of making it a business unit/
product, they should financially evaluate the virtualisation of they primary workflow,
management and services to expand and attract global creative communities and clients.
Face-to-Face Consultancy Virtual Consultancy
Local Market
CURRENT STRATEGY
eTypes tackles design needs in local firms
that value design for product, service and
brand enhancement. However, as design
value increases, competition will increase.
The intangible and digital nature of e-Type’s
businesses allows a feasible virtualisation of
services in order to reach new markets.
This development includes:
- Services redesign.
- Self-service/Client Assessment tools.
- Processes reengineering.
- Global design community.
- Remote Hiring.
- Quality Assurance controls.
- Management/Billing Software.
- Work management platforms i.e. Slack.
- Communication platforms i.e.
GoToMeeting
Global Market N/A
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11. FINAL ASSIGNMENT: E-TYPES
Select 3 out of the 6 aspects of strategy implementation and decide which
strategic option e-Types should proceed with.
BACKGROUND
e-Types, a creative firm known by identity design, has the opportunity to gain massive
exposure, reputation and economical gains by creating the “Team Danmark” identity.
However ambitious the project may be, e-Types finds itself in a crucial dilemma:
Shall e-Types remain loyal to their values and present only egdy work OR
shall they present classical work OR shall they present both works and let
the client decide?
STRATEGY DEFINITION
Denmark’s design firms competitive landscape is tough not because of saturation,
but because of VRIO strategies: competitors focus on how they work, not on what they sell,
increasing firms value by making imitation hard to achieve and capitalising on human
creative talent and internally developed culture, processes and systems.
eType is tied on a win-lose scenario, having greater opportunity to win
by presenting both designs. Client might select the classical work, putting eTypes on
the spotlight. eTypes new reach will attract “classical” prospects and lose edgy ones.
For this, the firm shall prepare their Growth Strategy in 3 steps:
1. Clients Selection: Develop discrimitave frameworks and tools to asses
and select the clients the firm wants to work with.
2. Reputation difussion: strengthen reputation through edgy work cases
difussion to strentghen brand equity.
3. Digital Factory business model: Develop a new brand branch to capture
“classical work” clients while keeping the “edgy work” reputation safe.
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12. IMPLEMENTATION PLAN
In order to implement efficiently, eTypes needs to focus on the following aspects:
RESISTANCE AND RISKS
Who and why could resist the new
strategy? What are other high probability/
high impact risks to implementation?
Substantiate your assessment of
why these risks are high
probability/high impact.
What can be done to mitigate
resistance or other risks?
• Who is affected? Senior creatives
• Why could they resist the strategy?
Reputational damage. Published work
carry their individual signature.
“Conventional work” is a downgrade to
senior creative leaders.
• Other Risks: Producing “conventional
work”might lead edgy designers to lose
interest and identification with the
company, refusing to work, overloading
junior teams with the work they don’t
want to produce, downgrading
productivity and finally leaving the team.
Although the probability seem low,
it should be taken seriously.
Deflated creative teams evolve in a
kind of snowball effect leading to:
- Demoralized team.
- Flat creative products.
- Workload imbalance: junior
teams producing all the
“conventional” work.
- Overproduction and “non-
creative” word of mouth
- Edgy reputational loss.
• Co-creative workshops. Make
management, leadership and
natural team leaders part of the
strategic development. By
allowing them to craft their
path, they will feel motivated to
make the strategy happen.
• Time-frame. Explain why this is
a financial win for everybody.
• Build a strong difussion plan to
protect brand equity.
COMMUNICATION
What cultural values should e-Types foster
to support the implementation of your
recommended strategy?
Why is it important to foster these
cultural values, given your
recommended strategy?
What actions would you take to
foster these cultural values at e-
Types?
eTypes should strengthen 3 key values
among all internal stakeholders:
- Never a follower. Make others follow
you.
- Believe in the power of beauty.
- The devil is in the detail.
Protecting these values is a way to protect
culture.
Values shall remain the same.
It’s the CORE of the company’s
- value proposition
- organizational structure
- proprietary workflows
- processes.
- culture
• 20% office time: Allow work
time to develop internal/personal
projects.
• Creative Innovation Challenges
where everybody in the company
can participate.
• Open communication platform
for Issues Proposals and
knowdledge exchange. (Slack)
POWER & INFORMAL NETWORKS
Which types of networks will you rely on in
implementation?
Why is it important to rely on
these types of informal networks,
given your recommended strategy?
What you would do to uncover and
leverage informal networks?
Informal networks. Team morale is embedded in the
everyday work. People talk in the
bathroom, break-rooms, lunch. By
learning how people feel and what
they talk about eTypes can assess
and morale and improve formal/
informal communication.
Internal survey to identify:
- communicators: those who
spread the news.
- executives: those who make
things happen.
- thought leaders: those who
envision and plan the future.
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