BOOK
Exploring Strategy
Gerry Johnson | Richard Whittington | Patrick Regnér | Kevan Scholes | Duncan Angwin
(2017)
Additional Information
Book Details
Abstract
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.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Front Cover\r | Front Cover | ||
| Title Page\r | iii | ||
| Copyright Page\r | iv | ||
| Brief Contents\r | v | ||
| Contents\r | vii | ||
| Illustrations and Thinking Differently | xvii | ||
| Figures | xix | ||
| Tables | xxiii | ||
| Preface | xxv | ||
| Exploring Strategy features | xxvii | ||
| Exploring Strategy online | xxviii | ||
| 1 INTRODUCING STRATEGY | 2 | ||
| 1.1 Introduction | 3 | ||
| 1.2 What is strategy? | 4 | ||
| 1.2.1 Defining strategy | 4 | ||
| 1.2.2 The purpose of strategy: mission, vision, values and objectives | 7 | ||
| 1.2.3 Strategy statements | 8 | ||
| 1.2.4 Levels of strategy | 10 | ||
| 1.3 The Exploring Strategy Framework | 11 | ||
| 1.3.1 Strategic position | 12 | ||
| 1.3.2 Strategic choices | 13 | ||
| 1.3.3 Strategy in action | 14 | ||
| 1.4 Working with strategy | 16 | ||
| 1.5 Studying strategy | 18 | ||
| 1.6 Exploring strategy further | 20 | ||
| 1.6.1 Exploring strategy in different contexts | 20 | ||
| 1.6.2 Exploring strategy through different ‘strategy lenses’ | 21 | ||
| Summary | 22 | ||
| Work assignments | 22 | ||
| Recommended key readings | 23 | ||
| References | 23 | ||
| Case example: The rise of a unicorn – Airbnb | 24 | ||
| PART I THE STRATEGIC POSITION | 29 | ||
| Introduction to Part I | 30 | ||
| 2 MACRO-ENVIRONMENT ANALYSIS | 32 | ||
| 2.1 Introduction | 33 | ||
| 2.2 PESTEL analysis | 34 | ||
| 2.2.1 Politics | 35 | ||
| 2.2.2 Economics | 38 | ||
| 2.2.3 Social | 39 | ||
| 2.2.4 Technology | 43 | ||
| 2.2.5 Ecological | 44 | ||
| 2.2.6 Legal | 45 | ||
| 2.2.7 Key drivers for change | 48 | ||
| 2.3 Forecasting | 48 | ||
| 2.3.1 Forecast approaches | 49 | ||
| 2.3.2 Directions of change | 50 | ||
| 2.4 Scenario analysis | 51 | ||
| Summary | 55 | ||
| Work assignments | 55 | ||
| Recommended key readings | 56 | ||
| References | 56 | ||
| Case example: Alibaba – the Yangtze River Crocodile | 58 | ||
| 3 INDUSTRY AND SECTOR ANALYSIS | 62 | ||
| 3.1 Introduction | 63 | ||
| 3.2 The competitive forces | 64 | ||
| 3.2.1 Competitive rivalry | 65 | ||
| 3.2.2 The threat of entry | 66 | ||
| 3.2.3 The threat of substitutes | 66 | ||
| 3.2.4 The power of buyers | 68 | ||
| 3.2.5 The power of suppliers | 69 | ||
| 3.2.6 Complementors and network effects | 69 | ||
| 3.2.7 Defining the industry | 71 | ||
| 3.2.8 Implications of the Competitive Five Forces\r | 73 | ||
| 3.3 Industry types and dynamics | 74 | ||
| 3.3.1 Industry types | 76 | ||
| 3.3.2 Industry structure dynamics | 77 | ||
| 3.4 Competitors and markets | 81 | ||
| 3.4.1 Strategic groups | 81 | ||
| 3.4.2 Market segments | 84 | ||
| 3.4.3 Critical success factors and ‘Blue Oceans’ | 85 | ||
| 3.5 Opportunities and threats | 87 | ||
| Summary | 88 | ||
| Work assignments | 89 | ||
| Recommended key readings | 89 | ||
| References | 90 | ||
| Case example: Global forces and the advertising industry | 92 | ||
| 4 RESOURCES AND CAPABILITIES | 96 | ||
| 4.1 Introduction | 97 | ||
| 4.2 Foundations of resources and capabilities | 98 | ||
| 4.2.1 Resources and capabilities | 98 | ||
| 4.2.2 Threshold and distinctive resources and capabilities | 100 | ||
| 4.3 Distinctive resources and capabilities as a basis of competitive advantage | 101 | ||
| 4.3.1 V – value of resources and capabilities | 101 | ||
| 4.3.2 R – rarity | 102 | ||
| 4.3.3 I – inimitability | 102 | ||
| 4.3.4 O – organisational support | 104 | ||
| 4.3.5 Organisational knowledge as a basis of competitive advantage | 105 | ||
| 4.4 Diagnosing resources and capabilities | 107 | ||
| 4.4.1 VRIO analysis | 107 | ||
| 4.4.2 The value chain and value system | 107 | ||
| 4.4.3 Activity systems | 111 | ||
| 4.4.4 Benchmarking | 114 | ||
| 4.4.5 SWOT | 115 | ||
| 4.5 Dynamic capabilities | 119 | ||
| Summary | 124 | ||
| Work assignments | 124 | ||
| Recommended key readings | 125 | ||
| References | 125 | ||
| Case example: Rocket Internet – will the copycat be imitated? | 128 | ||
| 5 STAKEHOLDERS AND GOVERNANCE | 132 | ||
| 5.1 Introduction | 133 | ||
| 5.2 Stakeholders | 134 | ||
| 5.2.1 Stakeholder groups | 134 | ||
| 5.2.2 Stakeholder mapping | 136 | ||
| 5.2.3 Owners | 139 | ||
| 5.3 Corporate governance | 141 | ||
| 5.3.1 The governance chain | 143 | ||
| 5.3.2 Different governance models | 144 | ||
| 5.3.3 How boards of directors influence strategy | 149 | ||
| 5.4 Social responsibility and ethics | 150 | ||
| 5.4.1 Corporate social responsibility | 150 | ||
| 5.4.2 The ethics of individuals and managers | 153 | ||
| Summary | 155 | ||
| Work assignments | 156 | ||
| Recommended key readings | 156 | ||
| References | 157 | ||
| Case example: Drinking Partners – India’s United Breweries Holdings Ltd | 159 | ||
| 6 HISTORY AND CULTURE | 162 | ||
| 6.1 Introduction | 163 | ||
| 6.2 Why is history important? | 164 | ||
| 6.2.1 Path dependency | 164 | ||
| 6.2.2 History as a resource | 167 | ||
| 6.2.3 Historical analysis | 167 | ||
| 6.3 What is culture and why is it important? | 168 | ||
| 6.3.1 Geographically-based cultures | 169 | ||
| 6.3.2 Organisational fields | 170 | ||
| 6.3.3 Organisational culture | 171 | ||
| 6.3.4 Culture’s influence on strategy | 174 | ||
| 6.3.5 Analysing culture: the cultural web | 175 | ||
| 6.3.6 Undertaking cultural analysis | 177 | ||
| 6.4 Strategic drift | 180 | ||
| Summary | 184 | ||
| Work assignments | 184 | ||
| Recommended key readings | 185 | ||
| References | 185 | ||
| Case example: Culture clashes at Barclays Bank | 187 | ||
| Commentary on Part I The strategy lenses | 190 | ||
| Case example: Nokia’s evolving strategy through the lenses | 202 | ||
| PART II STRATEGIC CHOICES | 205 | ||
| Introduction to Part II | 206 | ||
| 7 BUSINESS STRATEGY AND MODELS | 208 | ||
| 7.1 Introduction | 209 | ||
| 7.2 Generic competitive strategies | 210 | ||
| 7.2.1 Cost-leadership strategy | 211 | ||
| 7.2.2 Differentiation strategy | 215 | ||
| 7.2.3 Focus strategy | 216 | ||
| 7.2.4 Hybrid strategy | 218 | ||
| 7.2.5 The Strategy Clock | 220 | ||
| 7.3 Interactive strategies | 221 | ||
| 7.3.1 Interactive price and quality strategies | 221 | ||
| 7.3.2 Cooperative strategy | 224 | ||
| 7.3.3 Game theory | 226 | ||
| 7.4 Business models | 229 | ||
| 7.4.1 Value creation, configuration and capture | 229 | ||
| 7.4.2 Business model patterns | 232 | ||
| Summary | 234 | ||
| Work assignments | 234 | ||
| Recommended key readings | 235 | ||
| References | 235 | ||
| Case example: The IKEA approach | 237 | ||
| 8 CORPORATE STRATEGY AND DIVERSIFICATION | 242 | ||
| 8.1 Introduction | 243 | ||
| 8.2 Strategy directions | 244 | ||
| 8.2.1 Market penetration | 245 | ||
| 8.2.2 Product development | 247 | ||
| 8.2.3 Market development | 248 | ||
| 8.2.4 Conglomerate diversification | 248 | ||
| 8.3 Diversification drivers | 250 | ||
| 8.4 Diversification and performance | 252 | ||
| 8.5 Vertical integration | 253 | ||
| 8.5.1 Forward and backward integration | 253 | ||
| 8.5.2 To integrate or to outsource? | 254 | ||
| 8.6 Value creation and the corporate parent | 256 | ||
| 8.6.1 Value-adding and value-destroying activities of corporate parents | 256 | ||
| 8.6.2 The portfolio manager | 258 | ||
| 8.6.3 The synergy manager | 259 | ||
| 8.6.4 The parental developer | 261 | ||
| 8.7 Portfolio matrices | 261 | ||
| 8.7.1 The BCG (or growth/share) matrix | 263 | ||
| 8.7.2 The directional policy (GE–McKinsey) matrix | 264 | ||
| 8.7.3 The parenting matrix | 265 | ||
| Summary | 268 | ||
| Work assignments | 268 | ||
| Recommended key readings | 269 | ||
| References | 269 | ||
| Case example: Virgin – is the brand more than Richard Branson? | 271 | ||
| 9 INTERNATIONAL STRATEGY | 276 | ||
| 9.1 Introduction | 277 | ||
| 9.2 Internationalisation drivers | 278 | ||
| 9.3 Geographic sources of advantage | 282 | ||
| 9.3.1 Locational advantage: Porter’s Diamond | 282 | ||
| 9.3.2 The international value system | 284 | ||
| 9.4 International strategies | 286 | ||
| 9.5 Market selection and entry | 289 | ||
| 9.5.1 Country and market characteristics | 289 | ||
| 9.5.2 Competitive characteristics | 292 | ||
| 9.5.3 Entry modes strategies | 295 | ||
| 9.6 Subsidiary roles in an international portfolio | 297 | ||
| 9.7 Internationalisation and performance | 299 | ||
| Summary | 300 | ||
| Work assignments | 301 | ||
| Recommended key readings | 301 | ||
| References | 301 | ||
| Case example: China goes to Hollywood – Wanda’s moves into the US movie industry | 304 | ||
| 10 ENTREPRENEURSHIP AND INNOVATION | 308 | ||
| 10.1 Introduction | 309 | ||
| 10.2 Entrepreneurship | 310 | ||
| 10.2.1 Opportunity recognition | 310 | ||
| 10.2.2 Steps in the entrepreneurial process | 313 | ||
| 10.2.3 Stages of entrepreneurial growth | 314 | ||
| 10.2.4 Social entrepreneurship | 316 | ||
| 10.3 Innovation dilemmas | 317 | ||
| 10.3.1 Technology push or market pull | 318 | ||
| 10.3.2 Product or process innovation | 320 | ||
| 10.3.3 Open or closed innovation | 321 | ||
| 10.4 Innovation diffusion | 324 | ||
| 10.4.1 The pace of diffusion | 324 | ||
| 10.4.2 The diffusion S-curve | 325 | ||
| 10.5 Innovators and imitators | 327 | ||
| 10.5.1 First-mover advantages and disadvantages | 327 | ||
| 10.5.2 The incumbent’s response | 328 | ||
| Summary | 331 | ||
| Work assignments | 332 | ||
| Recommended key readings | 332 | ||
| References | 332 | ||
| Case example: Rovio Entertainment – going back to the entrepreneurial roots | 335 | ||
| 11 MERGERS, ACQUISITIONS AND ALLIANCES | 338 | ||
| 11.1 Introduction | 339 | ||
| 11.2 Organic development | 340 | ||
| 11.3 Mergers and acquisitions | 341 | ||
| 11.3.1 Types of M&A | 341 | ||
| 11.3.2 Timing of M&A | 342 | ||
| 11.3.3 Motives for M&A | 342 | ||
| 11.3.4 M&A processes | 345 | ||
| 11.3.5 M&A strategy over time | 350 | ||
| 11.4 Strategic alliances | 351 | ||
| 11.4.1 Types of strategic alliance | 353 | ||
| 11.4.2 Motives for alliances | 353 | ||
| 11.4.3 Strategic alliance processes | 355 | ||
| 11.5 Comparing acquisitions, alliances and organic development | 359 | ||
| 11.5.1 Buy, ally or DIY? | 359 | ||
| 11.5.2 Key success factors | 360 | ||
| Summary | 362 | ||
| Work assignments | 362 | ||
| Recommended key readings | 363 | ||
| References | 363 | ||
| Case example: Future-proofing business? Sainsbury acquires Argos | 365 | ||
| Commentary on Part II Strategic choices | 368 | ||
| PART III STRATEGY IN ACTION | 371 | ||
| Introduction to Part III | 372 | ||
| 12 EVALUATING STRATEGIES | 374 | ||
| 12.1 Introduction | 375 | ||
| 12.2 Organisational performance | 376 | ||
| 12.2.1 Performance measures | 376 | ||
| 12.2.2 Performance comparisons | 377 | ||
| 12.2.3 Gap analysis | 377 | ||
| 12.2.4 Complexities of performance analysis | 379 | ||
| 12.3 Suitability | 380 | ||
| 12.3.1 Ranking | 384 | ||
| 12.3.2 Screening through scenarios | 384 | ||
| 12.3.3 Screening for bases of competitive advantage | 384 | ||
| 12.3.4 Decision trees | 385 | ||
| 12.3.5 Life cycle analysis | 385 | ||
| 12.4 Acceptability | 387 | ||
| 12.4.1 Risk | 388 | ||
| 12.4.2 Return | 390 | ||
| 12.4.3 Reaction of stakeholders | 398 | ||
| 12.5 Feasibility | 399 | ||
| 12.5.1 Financial feasibility | 399 | ||
| 12.5.2 People and skills | 400 | ||
| 12.5.3 Integrating resources | 401 | ||
| 12.6 Evaluation criteria: four qualifications | 401 | ||
| Summary | 403 | ||
| Work assignments | 403 | ||
| Recommended key readings | 404 | ||
| References | 404 | ||
| Case example: ITV – DIY, buy or ally? | 406 | ||
| 13 STRATEGY DEVELOPMENT PROCESSES | 410 | ||
| 13.1 Introduction | 411 | ||
| 13.2 Deliberate strategy development | 412 | ||
| 13.2.1 The role of the strategic leader | 412 | ||
| 13.2.2 Strategic planning systems | 413 | ||
| 13.2.3 Externally imposed strategy | 418 | ||
| 13.3 Emergent strategy development | 419 | ||
| 13.3.1 Logical incrementalism | 419 | ||
| 13.3.2 Strategy as the outcome of political processes | 422 | ||
| 13.3.3 Strategy as the product of structures and systems | 423 | ||
| 13.4 Implications for managing strategy development | 425 | ||
| 13.4.1 Strategy development in different contexts | 427 | ||
| 13.4.2 Managing deliberate and emergent strategy | 429 | ||
| Summary | 431 | ||
| Work assignments | 431 | ||
| Recommended key readings | 432 | ||
| References | 432 | ||
| Case example: Alphabet – who and what drives the strategy? | 434 | ||
| 14 ORGANISING AND STRATEGY | 438 | ||
| 14.1 Introduction | 439 | ||
| 14.2 Structural types | 440 | ||
| 14.2.1 The functional structure | 440 | ||
| 14.2.2 The divisional structure | 442 | ||
| 14.2.3 The matrix structure | 444 | ||
| 14.2.4 Multinational/transnational structures | 445 | ||
| 14.2.5 Project-based structures | 448 | ||
| 14.2.6 Strategy and structure fit | 448 | ||
| 14.3 Systems | 451 | ||
| 14.3.1 Planning systems | 451 | ||
| 14.3.2 Cultural systems | 453 | ||
| 14.3.3 Performance targeting systems | 454 | ||
| 14.3.4 Market systems | 456 | ||
| 14.4 Configurations and adaptability | 458 | ||
| 14.4.1 The McKinsey 7-Ss | 459 | ||
| 14.4.2 Agility and resilience | 460 | ||
| Summary | 462 | ||
| Work assignments | 462 | ||
| Recommended key readings | 462 | ||
| References | 463 | ||
| Case example: One Sony? | 465 | ||
| 15 LEADERSHIP AND STRATEGIC CHANGE | 468 | ||
| 15.1 Introduction | 469 | ||
| 15.2 Leadership and strategic change | 470 | ||
| 15.2.1 Strategic leadership roles | 470 | ||
| 15.2.2 Leadership styles | 471 | ||
| 15.3 Diagnosing the change context | 473 | ||
| 15.3.1 The change kaleidoscope | 473 | ||
| 15.3.2 Forcefield analysis | 476 | ||
| 15.4 Types of strategic change | 478 | ||
| 15.4.1 Adaptation | 479 | ||
| 15.4.2 Reconstruction | 479 | ||
| 15.4.3 Revolution | 480 | ||
| 15.4.4 Evolution | 481 | ||
| 15.5 Levers for strategic change | 483 | ||
| 15.5.1 A compelling case for change | 483 | ||
| 15.5.2 Challenging the taken for granted | 484 | ||
| 15.5.3 Changing operational processes and routines | 484 | ||
| 15.5.4 Symbolic management | 485 | ||
| 15.5.5 Power and political systems | 486 | ||
| 15.5.6 Timing | 488 | ||
| 15.5.7 Visible short-term wins | 488 | ||
| 15.6 Problems of formal change programmes | 489 | ||
| 15.6.1 Problems in the process | 489 | ||
| 15.6.2 What formal programmes forget | 490 | ||
| Summary | 491 | ||
| Work assignments | 492 | ||
| Recommended key readings | 492 | ||
| References | 493 | ||
| Case example: Sergio Marchionne – motor of change | 495 | ||
| 16 THE PRACTICE OF STRATEGY | 498 | ||
| 16.1 Introduction | 499 | ||
| 16.2 The strategists | 500 | ||
| 16.2.1 Top managers and directors | 500 | ||
| 16.2.2 Strategic planners | 501 | ||
| 16.2.3 Middle managers | 502 | ||
| 16.2.4 Strategy consultants | 505 | ||
| 16.2.5 Who to involve in strategy development? | 506 | ||
| 16.3 Strategising | 508 | ||
| 16.3.1 Strategy analysis | 508 | ||
| 16.3.2 Strategic issue-selling | 509 | ||
| 16.3.3 Strategic decision-making | 512 | ||
| 16.3.4 Communicating the strategy | 513 | ||
| 16.4 Strategy methodologies | 515 | ||
| 16.4.1 Strategy workshops | 515 | ||
| 16.4.2 Strategy projects | 517 | ||
| 16.4.3 Hypothesis testing | 518 | ||
| 16.4.4 Business cases and strategic plans | 520 | ||
| Summary | 522 | ||
| Work assignments | 522 | ||
| Recommended key readings | 523 | ||
| References | 523 | ||
| Case example: Participative strategy process in the city of Vaasa | 525 | ||
| Commentary on Part III Strategy in action | 532 | ||
| Glossary | 535 | ||
| Index of names | 541 | ||
| General index | 547 | ||
| Acknowledgements | 557 | ||
| Back Cover\r | Back Cover |