Corporate strategy

Cover......Page 1
Corporate strategy......Page 2
Brief contents......Page 8
Contents......Page 10
About this book......Page 16
How to use this book......Page 21
Guided tour of the book......Page 23
Guided tour of companion website......Page 26
Guide to the main focus of case studies......Page 27
Acknowledgements......Page 29
Publisher’s acknowledgements......Page 32
Part 1 Introduction......Page 36
Introduction......Page 37
Case study 1.1......Page 38
What is corporate strategy?......Page 40
Case study 1.2......Page 45
Core areas of corporate strategy......Page 48
Process, content and context......Page 50
Process: linking the three core areas......Page 51
What makes ‘good’ strategy?......Page 55
Strategy development in public and non-profit organisations......Page 56
Case study 1.3......Page 58
Critical reflection......Page 63
Questions......Page 64
Notes and references......Page 65
Introduction......Page 67
Case study 2.1......Page 68
Historical context of strategy......Page 69
Case study 2.2......Page 72
Prescriptive corporate strategy in practice......Page 73
Case study 2.3......Page 77
Emergent corporate strategy in practice......Page 78
Case study 2.4......Page 82
Some prescriptive theories of corporate strategy......Page 83
Case study 2.5......Page 90
Some emergent theories of corporate strategy......Page 91
Strategy as history – the contributions of Penrose and Chandler......Page 97
Case study 2.6......Page 98
Summary......Page 103
Further reading......Page 105
Notes and references......Page 106
Part 2 Analysis of the environment......Page 110
Introduction......Page 111
Case study 3.1......Page 112
Exploring the competitive environment......Page 113
Strategic environment – the basics......Page 116
Degree of turbulence in the environment......Page 117
Analysing the general environment......Page 118
Case study 3.2......Page 121
Analysing the stages of market growth......Page 122
Case study 3.3......Page 125
Key factors for success in an industry......Page 127
Analysing the competitive industry environment – the contribution of Porter......Page 128
Analysing the co-operative environment......Page 134
Analysing one or more immediate competitors in depth......Page 138
Analysing the customer and market segmentation......Page 139
Conclusions......Page 141
Case study 3.4......Page 142
Summary......Page 146
Further reading......Page 147
Notes and references......Page 148
Introduction......Page 149
Case study 4.1......Page 150
Sustainable competitive advantage......Page 152
Dynamics of competitive advantage......Page 156
Case study 4.2......Page 157
The nature and intensity of competition in an industry......Page 158
Aggressive competitive strategies......Page 160
Analysing an organisation’s portfolio of competing products and services......Page 165
Case study 4.3......Page 169
Developing co-operation strategies......Page 171
Distributor analysis......Page 174
Analysing the role of government......Page 175
Analysing international competitors and co-operators......Page 178
Case study 4.4......Page 179
Summary......Page 184
Questions......Page 185
Notes and references......Page 186
Introduction......Page 189
Case study 5.1......Page 190
Customers and customer-driven strategy – the contribution of Theodore Levitt......Page 193
Customer profiling and sustainable competitive advantage......Page 196
Market segmentation......Page 200
Case study 5.2......Page 202
Competitive positioning......Page 204
Strategy implications: analysing branding and reputation......Page 205
Strategy implications: communicating with customers and stakeholders......Page 207
Strategy implications: strategic pricing and value for money......Page 209
International customer considerations......Page 214
Case study 5.3......Page 215
Critical reflection......Page 218
Summary......Page 219
Questions......Page 220
Notes and references......Page 221
Part 3 Analysis of resources......Page 224
Introduction......Page 225
Case study 6.1......Page 226
Prescriptive and emergent approaches to resource issues......Page 228
Key factors for success in an industry......Page 229
Analysing the resources of an individual organisation......Page 232
Case study 6.2......Page 234
Resource analysis and adding value......Page 236
Adding competitive value: the value chain and the value system – the contribution of Porter......Page 237
Resource analysis and economic rent – the contribution of David Ricardo......Page 243
Case study 6.3......Page 247
Resource analysis and competitive advantage – the resource-based view......Page 250
Identifying which resources deliver sustainable competitive advantage......Page 257
Resource analysis – improving competitive advantage......Page 263
Case study 6.4......Page 266
Summary......Page 268
Questions......Page 269
Notes and references......Page 270
Introduction......Page 273
Case study 7.1......Page 274
Human resource analysis and corporate strategy......Page 277
Human resource audit......Page 278
Analysis of organisational culture......Page 280
Case study 7.2......Page 287
Analysis of strategic change in organisations......Page 290
Analysis of politics, power and strategic change......Page 295
International cultural perspectives......Page 297
Case study 7.3......Page 299
Case study 7.4......Page 300
Summary......Page 303
Further reading......Page 304
Notes and references......Page 305
Introduction......Page 307
Case study 8.1......Page 308
Analysing the sources of finance......Page 310
Cost of capital and the optimal capital structure......Page 316
Case study 8.2......Page 319
Financial appraisal of strategy proposals......Page 321
Financial management and added value: maximising shareholder wealth......Page 325
Relationship between financial and corporate objectives......Page 328
Case study 8.3......Page 329
International aspects of financial resources......Page 331
Case study 8.4......Page 333
Summary......Page 337
Questions......Page 338
Appendix 1: Checklist of the main financial ratios......Page 339
Notes and references......Page 340
Introduction......Page 342
Case study 9.1......Page 343
Operations and corporate strategy......Page 345
Analysis of the operations environment......Page 346
Case study 9.2......Page 350
The role of operations in adding value and achieving sustainable competitive advantage......Page 353
Operations activities and corporate strategy......Page 357
Case study 9.3......Page 363
Service operations strategy......Page 365
Critical reflection......Page 367
Summary......Page 368
Further reading......Page 369
Notes and references......Page 370
Part 4 The purpose of the organisation......Page 374
Introduction......Page 375
Case study 10.1......Page 376
Shaping the purpose of the organisation......Page 377
Case study 10.2......Page 383
Developing a strategic vision for the future......Page 386
Case study 10.3......Page 389
Purpose and the role of leadership......Page 390
Case study 10.4......Page 395
Corporate governance and the purpose of the organisation......Page 397
Purpose shaped by ethics and corporate social responsibility......Page 402
Summary......Page 406
Questions......Page 407
Notes and references......Page 408
Introduction......Page 410
Case study 11.1......Page 411
The nature of knowledge......Page 412
Case study 11.2......Page 417
Knowledge creation and purpose......Page 419
Using technology to develop purpose and competitive advantage......Page 424
Case study 11.4......Page 429
Innovation and purpose......Page 431
Case study 11.5......Page 434
How to innovate: the ‘ideas’ process......Page 436
Summary......Page 441
Further reading......Page 442
Notes and references......Page 443
Introduction......Page 445
Case study 12.1......Page 446
Clarifying the purpose of the organisation......Page 448
Corporate purpose and corporate-level strategy......Page 451
Stakeholder analysis......Page 454
Case study 12.2......Page 458
Developing the mission......Page 460
Developing the objectives......Page 464
Case study 12.3......Page 466
Quality objectives and strategic purpose......Page 469
Emergent strategy perspectives......Page 471
Stakeholder power around the world and its influence on mission and objectives......Page 472
Critical reflection......Page 473
Summary......Page 474
Questions......Page 475
Notes and references......Page 476
Part 5 Developing the strategy......Page 480
Introduction......Page 481
Case study 13.1......Page 483
Purpose and the SWOT analysis – the contribution of Andrews......Page 485
Environment-based options: generic strategies – the contribution of Porter......Page 486
Case study 13.2......Page 491
Case study 13.3......Page 493
Environment-based strategic options: the market options matrix......Page 496
Environment-based strategic options: the expansion method matrix......Page 501
Case study 13.4......Page 504
Resource-based strategic options: the value chain......Page 508
Resource-based strategic options: the resource-based view......Page 511
Resource-based strategic options: cost reduction......Page 513
Resource-based options in some special types of organisation......Page 518
Summary......Page 519
Notes and references......Page 521
Introduction......Page 523
Case study 14.1......Page 524
Prescriptive strategy content: evaluation against six criteria......Page 528
Case study 14.2......Page 533
Prescriptive strategy content: procedures and techniques......Page 535
Applying empirical evidence and guidelines......Page 542
Case study 14.3......Page 546
The classic prescriptive model of corporate strategy: exploring the process......Page 549
International corporate strategy selection......Page 553
Case study 14.4......Page 554
Summary......Page 559
Questions......Page 560
Appendix......Page 561
Notes and references......Page 562
Introduction......Page 564
Case study 15.1......Page 565
The importance of strategy context......Page 566
Case study 15.2......Page 569
The survival-based strategic route forward......Page 572
The uncertainty-based strategic route forward......Page 575
Case study 15.3......Page 578
The network-based strategic route forward......Page 581
The game theory-based route forward......Page 585
The learning-based strategic route forward......Page 589
International considerations......Page 596
Case study 15.4......Page 598
Summary......Page 602
Questions......Page 603
Appendix......Page 604
Notes and references......Page 605
Introduction......Page 608
Case study 16.1......Page 609
Strategy before structure?......Page 611
Building the organisation’s structure: basic principles......Page 616
The choice of management style and culture......Page 621
Types of organisational structure......Page 624
Case study 16.2......Page 630
Organisational structures for innovation......Page 632
Motivation and staffing in strategy implementation......Page 634
Strategy and structure in international organisations – the role of headquarters......Page 636
Case study 16.3......Page 637
Summary......Page 639
Notes and references......Page 641
Part 6 The implementation process......Page 644
Introduction......Page 645
Case study 17.1......Page 646
The implementation process......Page 648
Relationship between implementation and the strategy development process......Page 650
Case study 17.2......Page 657
Objectives, task setting and communicating the strategy......Page 660
Resource allocation......Page 663
Case study 17.3......Page 665
Strategic planning......Page 667
Information, monitoring and control......Page 672
Summary......Page 674
Further reading......Page 676
Notes and references......Page 677
Introduction......Page 678
Case study 18.1......Page 680
Analysing the strategic environment in public sector strategy......Page 682
Analysing resources in the public and not-for-profit sectors......Page 688
Case study 18.2......Page 693
Exploring the purpose of public and not-for-profit organisations......Page 696
Context, content and process in public sector strategy......Page 698
Implementation in public sector strategy......Page 701
Case study 18.3......Page 703
Summary......Page 708
Questions......Page 710
Notes and references......Page 711
Introduction......Page 714
Case study 19.1......Page 715
International expansion and globalisation: their meaning and importance......Page 716
Case study 19.2......Page 722
World trade and the international expansionstrategies of companies......Page 724
Influence of institutions involved ininternational trade......Page 729
Case study 19.3......Page 732
International and global expansion strategies: the company perspective......Page 736
International and global expansion strategies: organisation structures......Page 743
Developing international relationships such as alliances and joint ventures......Page 746
Case study 19.4......Page 750
Critical reflection......Page 753
Summary......Page 754
Further reading......Page 755
Notes and references......Page 756
Introduction......Page 758
Case study 20.1......Page 759
The dynamics of purpose......Page 761
The dynamics of resource development......Page 762
The dynamics of environmental development......Page 767
Case study 20.2......Page 771
The dynamics of fast-moving markets......Page 773
Case study 20.3......Page 776
The dynamics of entrepreneurial activity......Page 778
Summary......Page 780
Notes and references......Page 782
Introduction......Page 784
Case study 21.1......Page 785
The basic concept of strategic change......Page 787
Analysing the causes of strategic change......Page 792
Case study 21.2......Page 793
Prescriptive approaches to managing strategic change......Page 797
Case study 21.3......Page 801
Emergent approaches to managing change......Page 802
Developing a strategic change programme......Page 807
Case study 21.4......Page 812
Critical reflection......Page 818
Summary......Page 819
Questions......Page 820
Notes and references......Page 821
Introduction......Page 822
Case study 22.1......Page 823
Cohesion in prescriptive and emergent processes......Page 825
Combining the elements of corporate strategy: the ‘Seven S Framework’......Page 826
Longer-term strategy issues......Page 832
Case study 22.2......Page 835
Summary......Page 837
Notes and references......Page 838
Glossary......Page 840
Name index......Page 850
Subject index......Page 852