Anthony E. Henry · Understanding Strategic Management Third Edition UNDERSTANDING STRATEGIC MANAGEMENT Third Edition Anthony E. Henry 3 3 Great Clarendon Street, Oxford, OX2 6DP, United Kingdom Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trade mark of Oxford University Press in the UK and in certain other countries © Anthony E. Henry 2018 The moral rights of the author have been asserted First edition 2007 Second edition 2011 Impression: 1 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by licence or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016, United States of America British Library Cataloguing in Publication Data Data available Library of Congress Control Number: 2017953931 ISBN 978–0–19–251533–9 Printed in Great Britain by Bell & Bain Ltd., Glasgow Links to third party websites are provided by Oxford in good faith and for information only. Oxford disclaims any responsibility for the materials contained in any third party website referenced in this work. ‘and you shall know the truth, and the truth shall set you free.’ John 8:32 Brief Contents Contents in Full ix List of Cases xv Acknowledgements xvii About the Author xviii About the Book xix How to Use this Book xx How to Use the Online Resources xxii PART ONE WHAT IS STRATEGY? 1 What is Strategy? 3 PART TWO STRATEGIC ANALYSIS 2 Evaluating the Macro-environment 35 3 Industry Analysis 57 4 The Internal Environment: Value-creating Activities 85 5 The Internal Environment: A Resource-based View of Strategy 114 PART THREE STRATEGY FORMULATION 6 Business Strategy 143 7 Corporate Strategy 174 8 International Strategy 205 PART FOUR STRATEGY IMPLEMENTATION 9 Organizational Structures and Strategic Change 239 10 Strategic Leadership 271 11 Corporate Governance 301 Glossary ···························································································································································································331 Name Index ····················································································································································································339 Subject Index ·················································································································································································344 Contents in Full List of Cases xv Acknowledgements xvii About the Author xviii About the Book xix How to Use this Book xx How to Use the Online Resources xxii PART ONE WHAT IS STRATEGY? 1 What is Strategy? 3 Introduction 4 1.1 What is Strategy? 4 1.1.1 Defining Strategy 6 1.2 Strategic Management 8 1.2.1 Strategy Analysis 9 1.2.2 Strategy Formulation 9 1.2.3 Strategy Implementation 10 1.3 Vision, Values, and Mission 10 1.3.1 The Theory of the Business 14 1.3.2 Business Models 15 1.4 Types of Strategy 16 1.4.1 Corporate Strategy 16 1.4.2 Business Strategy 16 1.4.3 Functional/Operational Strategy 16 1.5 Changes in the Approach to Strategic Management 16 1.6 Different Perspectives on Strategy Formulation 18 1.6.1 The Rationalist School 18 1.6.2 The Learning School 19 1.7 A Strategic Management Framework 23 PART TWO STRATEGIC ANALYSIS 2 Evaluating the Macro-environment 35 Introduction 36 2.1 The Macro-environment 36 2.2 Scanning, Monitoring, and Forecasting Changes in the Environment 37 2.2.1 Scanning the Environment 38 2.2.2 Monitoring the Environment 40 2.2.3 Forecasting Changes in the Environment 40