Exploring Strategy: Text and Cases (11th Edition)

With over one million copies sold worldwide, Exploring Strategy has long been the essential strategy text for managers of today and tomorrow. From entrepreneurial start-ups to multinationals, charities to government agencies, this book raises the big questions about organisations- how they grow, how they innovate and how they change. Exploring Strategy: Texts and Cases also provides a wealth of extra case studies written by experts in the subject to aid and enrich your understanding. Examples are taken from events and organisations as diverse as Glastonbury, Mondelez and Formula 1 racing. The full text downloaded to your computer With eBooks you can: search for key concepts, words and phrases make highlights and notes as you study share your notes with friends eBooks are downloaded to your computer and accessible either offline through the Bookshelf (available as a free download), available online and also via the iPad and Android apps. Upon purchase, you will receive via email the code and instructions on how to access this product. Time limit The eBooks products do not have an expiry date. You will continue to access your digital ebook products whilst you have your Bookshelf installed. Front Cover......Page 1 Title Page......Page 4 Copyright Page......Page 5 Brief Contents......Page 6 Contents......Page 8 Illustrations and Thinking Differently......Page 18 Figures......Page 20 Tables......Page 24 Preface......Page 26 Exploring Strategy features......Page 28 Exploring Strategy online......Page 29 1 INTRODUCING STRATEGY......Page 31 1.1 Introduction......Page 32 1.2.1 Defining strategy......Page 33 1.2.2 The purpose of strategy: mission, vision, values and objectives......Page 36 1.2.3 Strategy statements......Page 37 1.2.4 Levels of strategy......Page 39 1.3 The Exploring Strategy Framework......Page 40 1.3.1 Strategic position......Page 41 1.3.2 Strategic choices......Page 42 1.3.3 Strategy in action......Page 43 1.4 Working with strategy......Page 45 1.5 Studying strategy......Page 47 1.6.1 Exploring strategy in different contexts......Page 49 1.6.2 Exploring strategy through different ‘strategy lenses’......Page 50 Work assignments......Page 51 References......Page 52 Case example: The rise of a unicorn – Airbnb......Page 53 PART I THE STRATEGIC POSITION......Page 58 Introduction to Part I......Page 59 2 MACRO-ENVIRONMENT ANALYSIS......Page 61 2.1 Introduction......Page 62 2.2 PESTEL analysis......Page 63 2.2.1 Politics......Page 64 2.2.2 Economics......Page 67 2.2.3 Social......Page 68 2.2.4 Technology......Page 72 2.2.5 Ecological......Page 73 2.2.6 Legal......Page 74 2.3 Forecasting......Page 77 2.3.1 Forecast approaches......Page 78 2.3.2 Directions of change......Page 79 2.4 Scenario analysis......Page 80 Work assignments......Page 84 References......Page 85 Case example: Alibaba – the Yangtze River Crocodile......Page 87 3 INDUSTRY AND SECTOR ANALYSIS......Page 91 3.1 Introduction......Page 92 3.2 The competitive forces......Page 93 3.2.1 Competitive rivalry......Page 94 3.2.3 The threat of substitutes......Page 95 3.2.4 The power of buyers......Page 97 3.2.6 Complementors and network effects......Page 98 3.2.7 Defining the industry......Page 100 3.2.8 Implications of the Competitive Five Forces......Page 102 3.3 Industry types and dynamics......Page 103 3.3.1 Industry types......Page 105 3.3.2 Industry structure dynamics......Page 106 3.4.1 Strategic groups......Page 110 3.4.2 Market segments......Page 113 3.4.3 Critical success factors and ‘Blue Oceans’......Page 114 3.5 Opportunities and threats......Page 116 Summary......Page 117 Recommended key readings......Page 118 References......Page 119 Case example: Global forces and the advertising industry......Page 121 4 RESOURCES AND CAPABILITIES......Page 125 4.1 Introduction......Page 126 4.2.1 Resources and capabilities......Page 127 4.2.2 Threshold and distinctive resources and capabilities......Page 129 4.3.1 V – value of resources and capabilities......Page 130 4.3.3 I – inimitability......Page 131 4.3.4 O – organisational support......Page 133 4.3.5 Organisational knowledge as a basis of competitive advantage......Page 134 4.4.2 The value chain and value system......Page 136 4.4.3 Activity systems......Page 140 4.4.4 Benchmarking......Page 143 4.4.5 SWOT......Page 144 4.5 Dynamic capabilities......Page 148 Work assignments......Page 153 References......Page 154 Case example: Rocket Internet – will the copycat be imitated?......Page 157 5 STAKEHOLDERS AND GOVERNANCE......Page 161 5.1 Introduction......Page 162 5.2.1 Stakeholder groups......Page 163 5.2.2 Stakeholder mapping......Page 165 5.2.3 Owners......Page 168 5.3 Corporate governance......Page 170 5.3.1 The governance chain......Page 172 5.3.2 Different governance models......Page 173 5.3.3 How boards of directors influence strategy......Page 178 5.4.1 Corporate social responsibility......Page 179 5.4.2 The ethics of individuals and managers......Page 182 Summary......Page 184 Recommended key readings......Page 185 References......Page 186 Case example: Drinking Partners – India’s United Breweries Holdings Ltd......Page 188 6 HISTORY AND CULTURE......Page 191 6.1 Introduction......Page 192 6.2.1 Path dependency......Page 193 6.2.3 Historical analysis......Page 196 6.3 What is culture and why is it important?......Page 197 6.3.1 Geographically-based cultures......Page 198 6.3.2 Organisational fields......Page 199 6.3.3 Organisational culture......Page 200 6.3.4 Culture’s influence on strategy......Page 203 6.3.5 Analysing culture: the cultural web......Page 204 6.3.6 Undertaking cultural analysis......Page 206 6.4 Strategic drift......Page 209 Work assignments......Page 213 References......Page 214 Case example: Culture clashes at Barclays Bank......Page 216 Commentary on Part I The strategy lenses......Page 219 Case example: Nokia’s evolving strategy through the lenses......Page 231 PART II STRATEGIC CHOICES......Page 234 Introduction to Part II......Page 235 7 BUSINESS STRATEGY AND MODELS......Page 237 7.1 Introduction......Page 238 7.2 Generic competitive strategies......Page 239 7.2.1 Cost-leadership strategy......Page 240 7.2.2 Differentiation strategy......Page 244 7.2.3 Focus strategy......Page 245 7.2.4 Hybrid strategy......Page 247 7.2.5 The Strategy Clock......Page 249 7.3.1 Interactive price and quality strategies......Page 250 7.3.2 Cooperative strategy......Page 253 7.3.3 Game theory......Page 255 7.4.1 Value creation, configuration and capture......Page 258 7.4.2 Business model patterns......Page 261 Work assignments......Page 263 References......Page 264 Case example: The IKEA approach......Page 266 8 CORPORATE STRATEGY AND DIVERSIFICATION......Page 271 8.1 Introduction......Page 272 8.2 Strategy directions......Page 273 8.2.1 Market penetration......Page 274 8.2.2 Product development......Page 276 8.2.4 Conglomerate diversification......Page 277 8.3 Diversification drivers......Page 279 8.4 Diversification and performance......Page 281 8.5.1 Forward and backward integration......Page 282 8.5.2 To integrate or to outsource?......Page 283 8.6.1 Value-adding and value-destroying activities of corporate parents......Page 285 8.6.2 The portfolio manager......Page 287 8.6.3 The synergy manager......Page 288 8.7 Portfolio matrices......Page 290 8.7.1 The BCG (or growth/share) matrix......Page 292 8.7.2 The directional policy (GE–McKinsey) matrix......Page 293 8.7.3 The parenting matrix......Page 294 Work assignments......Page 297 References......Page 298 Case example: Virgin – is the brand more than Richard Branson?......Page 300 9 INTERNATIONAL STRATEGY......Page 305 9.1 Introduction......Page 306 9.2 Internationalisation drivers......Page 307 9.3.1 Locational advantage: Porter’s Diamond......Page 311 9.3.2 The international value system......Page 313 9.4 International strategies......Page 315 9.5.1 Country and market characteristics......Page 318 9.5.2 Competitive characteristics......Page 321 9.5.3 Entry modes strategies......Page 324 9.6 Subsidiary roles in an international portfolio......Page 326 9.7 Internationalisation and performance......Page 328 Summary......Page 329 References......Page 330 Case example: China goes to Hollywood – Wanda’s moves into the US movie industry......Page 333 10 ENTREPRENEURSHIP AND INNOVATION......Page 337 10.1 Introduction......Page 338 10.2.1 Opportunity recognition......Page 339 10.2.2 Steps in the entrepreneurial process......Page 342 10.2.3 Stages of entrepreneurial growth......Page 343 10.2.4 Social entrepreneurship......Page 345 10.3 Innovation dilemmas......Page 346 10.3.1 Technology push or market pull......Page 347 10.3.2 Product or process innovation......Page 349 10.3.3 Open or closed innovation......Page 350 10.4.1 The pace of diffusion......Page 353 10.4.2 The diffusion S-curve......Page 354 10.5.1 First-mover advantages and disadvantages......Page 356 10.5.2 The incumbent’s response......Page 357 Summary......Page 360 References......Page 361 Case example: Rovio Entertainment – going back to the entrepreneurial roots......Page 364 11 MERGERS, ACQUISITIONS AND ALLIANCES......Page 367 11.1 Introduction......Page 368 11.2 Organic development......Page 369 11.3.1 Types of M&A......Page 370 11.3.3 Motives for M&A......Page 371 11.3.4 M&A processes......Page 374 11.3.5 M&A strategy over time......Page 379 11.4 Strategic alliances......Page 380 11.4.2 Motives for alliances......Page 382 11.4.3 Strategic alliance processes......Page 384 11.5.1 Buy, ally or DIY?......Page 388 11.5.2 Key success factors......Page 389 Work assignments......Page 391 References......Page 392 Case example: Future-proofing business? Sainsbury acquires Argos......Page 394 Commentary on Part II Strategic choices......Page 397 PART III STRATEGY IN ACTION......Page 400 Introduction to Part III......Page 401 12 EVALUATING STRATEGIES......Page 403 12.1 Introduction......Page 404 12.2.1 Performance measures......Page 405 12.2.3 Gap analysis......Page 406 12.2.4 Complexities of performance analysis......Page 408 12.3 Suitability......Page 409 12.3.3 Screening for bases of competitive advantage......Page 413 12.3.5 Life cycle analysis......Page 414 12.4 Acceptability......Page 416 12.4.1 Risk......Page 417 12.4.2 Return......Page 419 12.4.3 Reaction of stakeholders......Page 427 12.5.1 Financial feasibility......Page 428 12.5.2 People and skills......Page 429 12.6 Evaluation criteria: four qualifications......Page 430 Work assignments......Page 432 References......Page 433 Case example: ITV – DIY, buy or ally?......Page 435 13 STRATEGY DEVELOPMENT PROCESSES......Page 439 13.1 Introduction......Page 440 13.2.1 The role of the strategic leader......Page 441 13.2.2 Strategic planning systems......Page 442 13.2.3 Externally imposed strategy......Page 447 13.3.1 Logical incrementalism......Page 448 13.3.2 Strategy as the outcome of political processes......Page 451 13.3.3 Strategy as the product of structures and systems......Page 452 13.4 Implications for managing strategy development......Page 454 13.4.1 Strategy development in different contexts......Page 456 13.4.2 Managing deliberate and emergent strategy......Page 458 Work assignments......Page 460 References......Page 461 Case example: Alphabet – who and what drives the strategy?......Page 463 14 ORGANISING AND STRATEGY......Page 467 14.1 Introduction......Page 468 14.2.1 The functional structure......Page 469 14.2.2 The divisional structure......Page 471 14.2.3 The matrix structure......Page 473 14.2.4 Multinational/transnational structures......Page 474 14.2.6 Strategy and structure fit......Page 477 14.3.1 Planning systems......Page 480 14.3.2 Cultural systems......Page 482 14.3.3 Performance targeting systems......Page 483 14.3.4 Market systems......Page 485 14.4 Configurations and adaptability......Page 487 14.4.1 The McKinsey 7-Ss......Page 488 14.4.2 Agility and resilience......Page 489 Recommended key readings......Page 491 References......Page 492 Case example: One Sony?......Page 494 15 LEADERSHIP AND STRATEGIC CHANGE......Page 497 15.1 Introduction......Page 498 15.2.1 Strategic leadership roles......Page 499 15.2.2 Leadership styles......Page 500 15.3.1 The change kaleidoscope......Page 502 15.3.2 Forcefield analysis......Page 505 15.4 Types of strategic change......Page 507 15.4.2 Reconstruction......Page 508 15.4.3 Revolution......Page 509 15.4.4 Evolution......Page 510 15.5.1 A compelling case for change......Page 512 15.5.3 Changing operational processes and routines......Page 513 15.5.4 Symbolic management......Page 514 15.5.5 Power and political systems......Page 515 15.5.7 Visible short-term wins......Page 517 15.6.1 Problems in the process......Page 518 15.6.2 What formal programmes forget......Page 519 Summary......Page 520 Recommended key readings......Page 521 References......Page 522 Case example: Sergio Marchionne – motor of change......Page 524 16 THE PRACTICE OF STRATEGY......Page 527 16.1 Introduction......Page 528 16.2.1 Top managers and directors......Page 529 16.2.2 Strategic planners......Page 530 16.2.3 Middle managers......Page 531 16.2.4 Strategy consultants......Page 534 16.2.5 Who to involve in strategy development?......Page 535 16.3.1 Strategy analysis......Page 537 16.3.2 Strategic issue-selling......Page 538 16.3.3 Strategic decision-making......Page 541 16.3.4 Communicating the strategy......Page 542 16.4.1 Strategy workshops......Page 544 16.4.2 Strategy projects......Page 546 16.4.3 Hypothesis testing......Page 547 16.4.4 Business cases and strategic plans......Page 549 Work assignments......Page 551 References......Page 552 Case example: Participative strategy process in the city of Vaasa......Page 554 Commentary on Part III Strategy in action......Page 561 Glossary......Page 564 Index of names......Page 570 General index......Page 576 Acknowledgements......Page 586 Back Cover......Page 588 The full text downloaded to your computer With eBooks you can: search for key concepts, words and phrases make highlights and notes as you study share your notes with friends eBooks are downloaded to your computer and accessible either offline through the Bookshelf (available as a free download), available online and also via the iPad and Android apps. Upon purchase, you'll gain instant access to this eBook. Time limit The eBooks products do not have an expiry date. You will continue to access your digital ebook products whilst you have your Bookshelf installed. With over one million copies sold worldwide, Exploring Strategy has long been the essential strategy text for managers of today and tomorrow. From entrepreneurial start-ups to multinationals, charities to government agencies, this book raises the big questions about organisations- how they grow, how they innovate and how they change.
With over one million copies sold worldwide, Exploring Strategy has long been the essential strategy text for managers of today and tomorrow. From entrepreneurial start-ups to multinationals, charities to government agencies, this book raises the big questions about organisations- how they grow, how they innovate and how they change.



Texts and Cases also provides a wealth of extra case studies written byexperts in the subjectto aid and enrich your understanding. Examples are taken from events and organisations as diverse as Glastonbury, Mondelez and Formula 1 racing.
With over one million copies sold worldwide, Exploring Strategy has long been the essential strategy text for managers of today and tomorrow. From entrepreneurial start-ups to multinationals, charities to government agencies, this book raises the big questions about organisations- how they grow, how they innovate and how they change. This title includes coverage of key topic areas in this fast-moving discipline such as internationalization, mergers, innovation and entrepreneurship, and corporate strategy and diversification. It is written for students of strategic management at all levels