Exploring Strategy

Front Cover
Welcome to Exploring Strategy
Title Page
Copyright Page
Brief contents
Contents
Illustrations and Thinking Differently
List of figures
List of tables
Preface
Exploring Strategy features
Exploring Strategy Online
Digital Courseware
1 Introducing strategy
1.1 Introduction
1.1.1 Why 'Exploring Strategy'?
1.2 What is strategy?
1.2.1 Defining strategy
1.2.2 The purpose of strategy: mission, vision, values and objectives
1.2.3 Strategy statements
1.2.4 Levels of strategy
1.3 The Exploring Strategy Framework
1.3.1 Strategic position
1.3.2 Strategic choices
1.3.3 Strategy in action
1.4 Working with strategy
1.5 Studying strategy
1.6 Exploring strategy further
1.6.1 Exploring strategy in different contexts
1.6.2 Exploring strategy through different 'strategy lenses'
Summary
Work assignments
Recommended key readings
References
Case example: The rise of a unicorn: Airbnb
Part I The strategic position
Introduction to Part I
2 Macro-environment analysis
2.1 Introduction
2.2 PESTEL analysis
2.2.1 Politics
2.2.2 Economics
2.2.3 Social
2.2.4 Technology
2.2.5 Ecological
2.2.6 Legal
2.2.7 Key drivers for change
2.3 Forecasting
2.3.1 Forecast approaches
2.3.2 Directions of change
2.4 Scenario analysis
Summary
Work assignments
Recommended key readings
References
Case example: Alibaba: the Yangtze River Crocodile
3 Industry and sector analysis
3.1 Introduction
3.2 Industry analysis
3.2.1 Defining the industry
3.2.2 The competitive forces
3.2.3 Complementors and network effects
3.2.4 Implications of the Competitive Five Forces
3.3 Industry types and dynamics
3.3.1 Industry types
3.3.2 Industry structure dynamics
3.4 Competitors and markets
3.4.1 Strategic groups
3.4.2 Market segments
3.4.3 Critical success factors and 'Blue Oceans'
3.5 Opportunities and threats
Summary
Work assignments
Recommended key readings
References
Case example: Game-changing forces and the global advertising industry
4 Resources and capabilities analysis
4.1 Introduction
4.2 Foundations of resources and capabilities
4.2.1 Resources and capabilities
4.2.2 Threshold and distinctive resources and capabilities
4.3 Distinctive resources and capabilities as a basis of competitive advantage
4.3.1 V – value of resources and capabilities
4.3.2 R – rarity
4.3.3 I – inimitability
4.3.4 O – organisational support
4.4 Analysing resources and capabilities
4.4.1 VRIO analysis
4.4.2 The value chain and value system
4.4.3 Activity systems
4.4.4 Benchmarking
4.4.5 SWOT
4.5 Dynamic capabilities
Summary
Work assignments
Recommended key readings
References
Case example: Rocket Internet – will the copycat be imitated?
5 Stakeholders and governance
5.1 Introduction
5.2 Stakeholders
5.2.1 Stakeholder groups
5.2.2 Stakeholder mapping
5.2.3 Owners
5.3 Corporate governance
5.3.1 The governance chain
5.3.2 Different governance models
5.3.3 How boards of directors influence strategy
5.4 Social responsibility
Summary
Work assignments
Recommended key readings
References
Case example: Petrobras and the Lizards
6 History and culture
6.1 Introduction
6.2 History and strategy
6.2.1 Historical relationships
6.2.2 Historical analysis
6.3 Culture and strategy
6.3.1 Geographically based cultures
6.3.2 Organisational fields
6.3.3 Organisational culture
6.3.4 Culture's influence on strategy
6.3.5 Analysing culture: the cultural web
6.3.6 Undertaking cultural analysis
6.4 Strategic drift
Summary
Work assignments
Recommended key readings
References
Case example: Uber and the ubermensch
Commentary on Part I The strategy lenses
Case example: How does Facebook make strategy?
Part II Strategic choices
Introduction to Part II
7 Business strategy and models
7.1 Introduction
7.2 Generic competitive strategies
7.2.1 Cost leadership strategy
7.2.2 Differentiation strategy
7.2.3 Focus strategy
7.2.4 Hybrid strategy
7.2.5 The Strategy Clock
7.3 Interactive strategies
7.3.1 Interactive price and quality strategies
7.3.2 Game theory
7.4 Business models
7.4.1 Value creation, configuration and capture
7.4.2 Business model patterns
7.4.3 Multi-sided platforms
Summary
Work assignments
Recommended key readings
References
Case example: The IKEA approach
8 Corporate strategy
8.1 Introduction
8.2 Strategy directions
8.2.1 Market penetration
8.2.2 Product and service development
8.2.3 Market development
8.2.4 Unrelated diversification
8.3 Diversification drivers
8.4 Diversification and performance
8.5 Vertical integration
8.5.1 Forward and backward integration
8.5.2 To integrate or to outsource?
8.5.3 Divestment
8.6 Value creation and the corporate parent
8.6.1 Value-adding and value-destroying activities of corporate parents
8.6.2 The portfolio manager
8.6.3 The synergy manager
8.6.4 The parental developer
8.7 Portfolio matrices
8.7.1 The BCG (or growth/share) matrix
8.7.2 The directional policy (GE–McKinsey) matrix
8.7.3 The parenting matrix
Summary
Work assignments
Recommended key readings
References
Case example: Grand strategies in vision
9 International strategy
9.1 Introduction
9.2 Internationalisation drivers
9.3 Geographic sources of advantage
9.3.1 Locational advantage: Porter's diamond
9.3.2 The international value system
9.4 International strategies
9.5 Market selection and entry
9.5.1 Country and market characteristics
9.5.2 Competitive characteristics
9.5.3 Entry mode strategies
9.6 Subsidiary roles in an international portfolio
9.7 Internationalisation and performance
Summary
Work assignments
Recommended key readings
References
Case example: China goes to Hollywood: Wanda's move into the US movie industry
10 Entrepreneurship and innovation
10.1 Introduction
10.2 Entrepreneurship
10.2.1 Opportunity recognition
10.2.2 Steps in the entrepreneurial process
10.2.3 Stages of entrepreneurial growth
10.2.4 Social entrepreneurship
10.3 Innovation dilemmas
10.3.1 Technology push or market pull
10.3.2 Product or process innovation
10.3.3 Open or closed innovation
10.4 Innovation diffusion
10.4.1 The pace of diffusion
10.4.2 The diffusion S-curve
10.5 Innovators and imitators
10.5.1 First-mover advantages and disadvantages
10.5.2 The incumbent's response
Summary
Work assignments
Recommended key readings
References
Case example: Rovio's Angry Birds: The evolution of a global entertainment empire
11 Mergers, acquisitions and alliances
11.1 Introduction
11.2 Organic development
11.3 Mergers and acquisitions
11.3.1 Defining M&A
11.3.2 M&A contexts
11.3.3 M&A strategy
11.3.4 M&A processes
11.3.5 M&A strategy over time
11.4 Strategic alliances
11.4.1 Types of strategic alliance
11.4.2 Motives for alliances
11.4.3 Strategic alliance processes
11.5 Comparing acquisitions, alliances and organic development
11.5.1 Buy, ally or DIY?
11.5.2 Key success factors
Summary
Work assignments
Recommended key readings
References
Case example: Future-proofing business? Sainsbury's acquires Argos
Commentary on Part II Strategic choices
Part III Strategy in action
Introduction to Part III
12 Evaluating strategies
12.1 Introduction
12.2 Organisational performance
12.2.1 Performance measures
12.2.2 Performance comparisons
12.2.3 Gap analysis
12.2.4 Complexities of performance analysis
12.3 Suitability
12.3.1 Ranking and screening
12.3.2 Decision trees
12.4 Acceptability
12.4.1 Return
12.4.2 Risk
12.4.3 Reaction of stakeholders
12.5 Feasibility
12.5.1 Financial feasibility
12.5.2 People and skills
12.6 Evaluation
12.6.1 Three qualifications
Summary
Work assignments
Recommended key readings
References
Case example: ITV: DIY, buy or ally?
13 Strategy development processes
13.1 Introduction
13.2 Deliberate strategy development
13.2.1 The role of the strategic leader
13.2.2 Strategic planning systems
13.2.3 Externally imposed strategy
13.3 Emergent strategy development
13.3.1 Logical incrementalism
13.3.2 Strategy as the outcome of political processes
13.3.3 Strategy as the result of organisational structures and systems
13.4 Implications for managing strategy development
13.4.1 Strategy development in different contexts
13.4.2 Managing deliberate and emergent strategy
Summary
Work assignments
Recommended key readings
References
Case example: Alphabet: who and what drives strategy
14 Organising and strategy
14.1 Introduction
14.2 Structural types
14.2.1 The functional structure
14.2.2 The divisional structure
14.2.3 The matrix structure
14.2.4 Multinational/transnational structures
14.2.5 Project-based structures
14.2.6 Strategy and structure fit
14.3 Systems
14.3.1 Planning systems
14.3.2 Cultural systems
14.3.3 Performance targeting systems
14.3.4 Market systems
14.4 Agility and resilience
14.5 Configurations
Summary
Work assignments
Recommended key readings
References
Case example: Tencent: Third Time Lucky?
15 Leadership and strategic change
15.1 Introduction
15.2 Leadership and strategic change
15.2.1 Strategic leadership roles
15.2.2 Leadership styles
15.3 Analysing the change context
15.3.1 The change kaleidoscope
15.3.2 Forcefield analysis
15.4 Types of strategic change
15.4.1 Adaptation
15.4.2 Reconstruction (turnaround)
15.4.3 Revolution
15.4.4 Evolution
15.5 Levers for strategic change
15.5.1 A compelling case for change
15.5.2 Challenging the taken for granted
15.5.3 Changing operational processes and routines
15.5.4 Symbolic management
15.5.5 Power and political systems
15.5.6 Timing
15.5.7 Visible short-term wins
15.6 Problems of formal change programmes
Summary
Work assignments
Recommended key readings
References
Case example: Can the Saturday boy change Marks & Spencer?
16 The practice of strategy
16.1 Introduction
16.2 The strategists
16.2.1 Top managers and directors
16.2.2 Strategic planners
16.2.3 Middle managers
16.2.4 Strategy consultants
16.2.5 Who to involve in strategy development?
16.3 Strategising
16.3.1 Strategy analysis
16.3.2 Strategic issue-selling
16.3.3 Strategic decision making
16.3.4 Communicating strategy
16.4 Strategy methodologies
16.4.1 Strategy workshops
16.4.2 Strategy projects
16.4.3 Hypothesis testing
16.4.4 Business cases and strategic plans
Summary
Work assignments
Recommended key readings
References
Case example: Participative strategy process in the city of Vaasa
Commentary on Part III Strategy in action
Glossary
Name index
General index
Acknowledgements
Back Cover