Strategy: Analysis and practice

Strategy:
Analysis and practice
SECOND EDITION

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Strategy:
Analysis and practice
SECOND EDITION

John McGee, Howard Thomas and
David Wilson

London Boston Burr Ridge, IL Dubuque, IA Madison, WI New York San Francisco
St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon Madrid Mexico City
Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto

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Strategy: Analysis and Practice, 2nd Edition
John McGee, Howard Thomas and David Wilson
ISBN-13 978-0-07-712691-9
ISBN-10 0-07-712691-2

Published by McGraw-Hill Education
Shoppenhangers Road
Maidenhead
Berkshire
SL6 2QL
Telephone: 44 (0) 1628 502 500
Fax: 44 (0) 1628 770 224
Website: www.mcgraw-hill.co.uk
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloguing in Publication Data
The Library of Congress data for this book has been applied for from the Library of Congress
Acquisitions Editor: Leiah Batchelor
Development Editor: Tom Hill
Marketing Manager: Alice Duijser
Senior Production Editor: James Bishop
Cover design by Adam Renvoize
Printed and bound in Great Britain by Ashford Colour Press
Published by McGraw-Hill Education (UK) Limited an imprint of The McGraw-Hill Companies, Inc.,
1221 Avenue of the Americas, New York, NY 10020. Copyright © 2010 by McGraw-Hill Education
(UK) Limited. All rights reserved. No part of this publication may be reproduced or distributed in any
form or by any means, or stored in a database or retrieval system, without the prior written consent of The
McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or
transmission, or broadcast for distance learning.
Fictitious names of companies, products, people, characters and /or data that may be used herein (in case
studies or in examples) are not intended to represent any real individual, company, product or event.
ISBN-13 978-0-07-712691-9
ISBN-10 0-07-712691-2
© 2010. Exclusive rights by The McGraw-Hill Companies, Inc. for manufacture and export. This book
cannot be re-exported from the country to which it is sold by McGraw-Hill.

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Dedication
To our colleagues and students, past and present, who have shaped our thinking and to Jenny,
Lynne and Jo, who have always inspired us.

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Brief Table of Contents
Preface
Cases
Guided tour
Technology to enhance learning and teaching
Custom Publishing Solutions: Let us help make our content your solution
Make the grade!
Acknowledgements
About the authors
1 What is strategy? Concepts and practices
2 A systemic analysis of strategy and practice

3
4
5
6
7
8
9

10
11
12
13
14
15
16

x
xiii
xv
xvii
xviii
xix
xx
xxi
1
23

PART 1
Strategy Analysis
Industry analysis and competitive advantage
The macroeconomics of strategy
Competitive strategy: the analysis of strategic position
Competitive strategy: the analysis of strategic capability
Strategy for the digital economy
Corporate strategy: adding value in multi-business firms
Global strategies and international advantage

55
59
99
137
182
215
253
295

PART 2
Strategy Implementation and Practice
Organizational models and strategy
Risk, uncertainty and strategy
Strategic decision making: process analyses
Strategic decision making: managing strategic change
Strategy as knowledge: innovation and learning
Strategy and corporate governance
Analysing and measuring strategic performance

333
337
359
390
419
451
490
520

Case Study Section
Index

547
703

vi

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Detailed Table of Contents
Preface
Cases
Guided tour
Technology to enhance learning
and teaching
Custom Publishing Solutions
Make the grade!
Acknowledgements
About the authors
1

2

PART 1
Strategy Analysis
3

xvii
xviii
xix
xx
xxi

What is strategy? Concepts and practices
Introduction
The nature of strategy
Characteristics of strategic problems
Key definitions of strategy
Basic strategy analysis
Summary
Key terms
Recap questions and assignments
Case study 1.1: Building the
‘Centrica model’
References
Further reading
A systemic analysis of strategy and
practice
Introduction
Thinking about strategy: schools
of thought
The strategy systems framework
Linking organization and strategy
The role of management systems
The role of management thought
processes
Managerial agency and practice
Summary
Key terms
Recap questions and assignments
References
Further reading

Industry analysis and competitive
advantage
Introduction
The economic underpinnings of
strategy

Industry analysis
Strategy as imperfections
Sources of competitive advantage
From competitive advantage to
competitive strategy: the market
positioning view
Summary
Key terms
Recap questions and assignments
References
Further reading

x
xiii
xv

1
1
2
3
4
7
18
19
19

4

19
21
22

23
23

5
24
27
33
35
39
45
50
51
51
51
53

55

59
59
60

6

The macroeconomics of strategy
Introduction
The basics of macroeconomics
Aggregate supply and the end of
booms
Long-run macroeconomic performance
Macroeconometric forecasting and
business
Summary
Recap questions and assignments
Case study 4.1: The Big Mac Index
References
Further reading
Appendix A: The basics of banking
Competitive strategy: the analysis
of strategic position
Introduction
Describing strategy
The internal logic of competitive
strategy
Strategic market segments
Strategic groups
Strategy making in practice
The business model
Summary
Key terms
Recap questions and assignments
Case study 5.1: The Novotel value chain
Case study 5.2: Molecular weight:
BASF and the chemical industry
References
Further reading
Competitive strategy: the analysis of
strategic capability
Introduction
The resource-based view in theory

67
71
78

81
95
96
96
97
97
99
99
100
109
121
125
128
128
129
132
132
133

137
137
138
141
148
153
162
166
172
173
173
173
176
179
180

182
182
183

vii

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viii

DETAILED TABLE OF CONTENTS

The language of the resource-based
view: what is core competence?
Related issues and the management
of core competences
Linking core competence to
competitive advantage
Competitive strategy in practice
Summary
Key terms
Recap questions and assignments
Case study 6.1: Google: fuzzy maths
References
Further reading
7

8

9

Strategy for the digital economy
Introduction
The emergence of a network economy
Networks in a digital economy
The technological infrastructure of
network industries
Networks and standards: competition
and regulation
Implications for strategy
Summary
Key terms
Recap questions and assignments
Case study 7.1: Surviving the net:
Yahoo!, eBay and Amazon
Case study 7.2: Browser wars are back
References
Further reading
Corporate strategy: adding value in
multi-business firms
Introduction
The changing organizational structure
Theory and concepts
Managing the multi-business firm
Practical frameworks and applications
Evidence and experience
The role of headquarters: the case of
GE in the post Jack Welch era
Changing the business portfolio:
acquisitions and strategic alliances
Summary
Key terms
Recap questions and assignments
Case study 8.1: Fiat’s ambitions:
the Italian solution
References
Further reading
Global strategies and international
advantage
Introduction
International business: the context for
international strategy

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184
190
196
201
207
209
209
209
213
214
215
215
216
218
226
235
242
246
246
247
247
249
251
252

253
253
254
259
260
267
270
271
276
287
288
289
289
292
293

295
295
296

Globalization
Strategic choices
Managing international organizations
Summary
Key terms
Recap questions and assignments
Case study 9.1: Leahy’s global shopping
spree: interview with Sir Terry Leahy
References
Further reading
PART 2
Strategy Implementation and Practice

303
312
322
327
327
328
328
331
332

333

10 Organizational models and strategy
Introduction
Strategy as a behavioural process
Strategy as a process
Strategy and organizational structure
Strategy as an organizational culture
Strategy as practice
Summary
Key terms
Recap questions and assignments
Case study 10.1: The cash-register guy
References
Further reading

337
337
340
345
345
349
351
353
354
354
355
356
358

11 Risk, uncertainty and strategy
Introduction
Different images of risk
Uncertainty
Risk analysis and assessment techniques
Risk indices
Using scenarios to help reduce risk and
uncertainty
Back to the organization:
identifying gaps
Summary
Key terms
Recap questions and assignments
Case study 11.1: Svante Arrenhius,
climate change and global warming:
what’s the risk?
References
Further reading

359
359
361
365
368
372

12 Strategic decision making:
process analyses
Introduction
What are strategic decisions?
Choice selection and strategic
decision making
The processes of strategic
decision making
The organizational context

373
381
383
384
384

384
387
388

390
390
391
396
399
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DETAILED TABLE OF CONTENTS

Strategic decision making and
performance
Putting decisions into practice:
implementation
Summary
Key terms
Recap questions and assignments
Case study 12.1: Magic restored
References
Further reading
13 Strategic decision making: managing
strategic change
Introduction
The characteristics and dimensions of
change processes
Theoretical approaches to change
Levels of change
Analysing and understanding change
from a strategy perspective
Strategic change and organization
Change, individuals and strategic
leadership
Creative organizational contexts
Summary
Key terms
Recap questions and assignments
Case study 13.1: The education of
Andy Grove
References
Further reading
14 Strategy as knowledge: innovation
and learning
Introduction
Concepts of knowledge and innovation
Knowledge as assets
Knowledge as innovation
Knowledge embedded in routines
A knowledge-based view (KBV)
Routines and learning
Summary

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405
410
414
414
414
415
417
418

419
419
420
421
423
425
428
432
440
441
441
441
441
448
450

451
451
452
457
459
463
465
473
479

Key terms
Recap questions and assignments
Case study 14.1: Don’t laugh at gilded
butterflies
References
Further reading
15 Strategy and corporate governance
Introduction
What is corporate governance?
Corporate governance theories
Corporate governance in the UK
The role of the board
Board effectiveness
International corporate governance
Summary
Key terms
Recap questions and assignments
Case study 15.1: Too many turkeys:
executive pay
References
Further reading
16 Analysing and measuring strategic
performance
Introduction
The domain of business performance
Concepts of value and performance
management
How does the strategic management
system work in practice?
Summary
Key terms
Recap questions and assignments
Case study 16.1: The Continental
Household Mortgage Company
References
Further reading
Case Study Section
Index

ix

481
481
481
485
489
490
490
492
495
497
499
501
506
512
514
514
515
517
519

520
520
521
522
534
540
541
541
541
544
545
547
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Preface
The first edition of this book in 2005 deliberately took a broad and eclectic approach to strategy. We
tried to avoid sharp critique of particular perspectives and, instead, attempted to be more holistic,
looking for complementarities between paradigms; integration of perspectives where possible; a
general avoidance of schools of thought and assumptions of paradigm incommensurability. In this
second edition, we have tried to continue and develop this approach but with greater and hopefully
a sharper focus than previously. As a result, there have been some significant changes along the way.
Changes which, we hope, will have resulted in a more focused and accessible text and one which
will usefully support and inform teachers, students and practitioners of strategy alike.
The book has been reduced in length from 21 chapters in the first edition to 16. We have, however,
retained the overall logic of the various sections of the book which were laid out in the first edition.
The Introduction provides the reader with the basic concepts of strategy and introduces the systemic
model to convey both the complexity of strategy as well as how analysis and practice are interrelated
and linked. The model may look complex at first sight, but the rest of the book is largely guided by
the model, so readers can dip into various parts of the text and, at the same time, refer back to the
model to see where their focus fits in the grand scheme of things. Feedback from the first edition
indicated that the model was seen as useful by some readers and as unduly complex by others. On
balance, we decided to keep the model as an orientating device. In this way, readers can emphasise
as much, or as little, as they feel appropriate in the ways they interrogate and teach the subject.
A major simplification of this second edition has been to reduce the sections of the book into two
main parts.
Part One introduces the concepts and tools of strategy analysis. Here we introduce some of the
basic economic and positioning concepts and models of strategy analysis. The overriding concern
of each chapter is to help readers see how to apply the various models introduced (e.g. the value
chain, or macroeconomic theory). Part One also emphasises that one of the key differences between
economics and strategy lies in the assumption of perfect knowledge by the economist and having
to deal with often very imperfect knowledge in the domain of the strategist. In the latter case, exploiting advantage and gaining position are key for organizations to become and remain successful.
We recognise, however, that many educational institutions have parallel courses to strategy (such as
economics and global business). While we have included two separate chapters in this part of the
book to cover macroeconomics and global strategies, they can easily be omitted from any strategy
course where economics and globalization are taught separately. A further feature of the book (and
in particular Part One) is not only to introduce the many models of strategy analysis so that students
can become familiar with them and their use, but also to highlight the limitations of such models
and thus avoid oversimplistic thinking.
Part Two comprises chapters which focus on strategy implementation and practice. From this
perspective, questions of organizational structures, cultures and processes become the focus of
attention. To help the transition from analytical models to organizational thinking, there is a brand
new chapter (Chapter 10) which deals with organization and strategy. The point here is to emphasize
that strategy can be seen both as a behavioural set of processes and as a function of organizational
structures and cultures. We hope this new, linking, chapter helps the transition of the argument
from analysis to practice. We have retained and expanded the chapter on risk which we view as
an inherent part of practice and which is an area skimmed over, or often missing completely, from
x

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PREFACE

xi

many strategy texts. This section also retains chapters from the first edition on governance and
performance but both are substantially rewritten. In particular, the chapter on governance has
substantially greater coverage of international aspects of governance (as opposed to the first edition’s
focus primarily on UK governance models and processes). The chapter on performance now is an
amalgamation of two previous chapters from the first edition and is, we hope, an appropriate and
accessible finale for any strategy text. Taking the balanced scorecard as its central leitmotiv, this
chapter completes the circle around the systemic model introduced in the first chapters of the
book. More behavioural approaches are contained in chapters on decision making, strategic change
and innovation and learning. We feel these are an integral part of strategy and we try to maintain
the perspective of introducing the models (and the jargon) as well as turning a critical eye towards
their limitations. This sometimes means introducing the reader to complex perspectives, such as
seeing innovation as effectively growth in a multi-dimensional space, consisting of products/services,
their features and user needs for example. Hence innovation becomes a trade-off activity with
competitors often blind-sided by rivals who innovate on other combinations of these factors.
Decision making and change are introduced as two of the key issues any strategist (as a manager)
has to face and deal with successfully. There is many a slip between cup and lip and impeccable
strategic analysis can easily founder on the rocks of poor decision making, implementation and the
management of change necessary during implementation.
Many end of chapter cases and in-chapter vignettes have been updated and changed to fit the
substantial revisions contained in this second edition. We hope you find them useful aids and
exemplars for your teaching and understanding of strategy. Although our eclectic approach to
strategy may not suit all readers, we have consistently tried to avoid fads and fashions as well
as schools of thought which, in our view, limit the field of inquiry. We feel this second edition is
a significant improvement on the first, but we have stayed true to what we feel are the defining
characteristics of the first edition:
■

Strong emphasis on strategy in practice: An innovative approach which is informed by academic
research but remains highly practical and ‘hands on’. Dedicated chapters on risk management,
managing strategic change, strategy and the learning organization, and corporate governance.

■

An analytical approach to strategy: A thorough study of competitive advantage provides students
with the level of analysis fundamental to understanding business and corporate level strategy.

■

An understanding of the link between strategy, knowledge and technological change, and value
and performance. Value and value-based management is shown as central to strategic management.
Three themes are treated explicitly because they are particularly close to the core of strategic
management thinking. These are (i) performance assessment; (ii) organizational knowledge,
learning and value innovation; and (iii) total quality management and customer value.

■

A range of contemporary and relevant cases throughout: Illustrative case examples and end of
chapter cases offer insights into a variety of globally recognized companies such as Google,
Yahoo!, eBay, Amazon, Fiat, Tesco, Gillette and more.

■

A section of longer cases places strategy into a variety of contemporary international contexts
and offers students the opportunity to analyse strategic decisions across an array of international
businesses including Renault, Apple, Honda, Citigroup and Canon.

■

Clear and well-developed pedagogy: An introduction to each part orients the student to the
landscape of the chapters that follow. To aid learning, each chapter introduces its themes and
concepts, and leads the student through the topic with key terms highlighted in bold for easy
reference. Case examples contained within the chapters provide illustrations of strategy in
practice within real organizations, and at the end of each chapter, a summary and assignments

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xii

PREFACE

draw together the overarching themes and test understanding. A concluding chapter-end case
study encourages the student to analyze how some of the concepts raised in the chapter can be
applied within an organization. See the Guided Tour for more information.
■

An unparalleled range of supporting resources: The book is accompanied by an Online Learning
Centre website, www.mcgraw-hill.co.uk/textbooks/mcgee, which provides a range of resources
for lecturers and students. Lecturers will find PowerPoint presentations, lecture guides and case
study notes to assist them in teaching with the textbook. The student area contains a wealth of
extra resources including test questions, help with studying cases, guide answers to the end of
chapter assignments questions and more. For more information see our guide to technology to
enhance teaching and learning on the following pages.

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Cases
Strategically placed throughout chapters you will find case boxes that explore the themes and concepts covered on
the preceding pages. At the end of most chapters there is a case study which is slightly longer and draws on a key
concept covered in that chapter. Where appropriate, the case boxes and case studies have questions at the end. Below
is a list of all the cases.
Chapter

Case Title

1 – What is strategy?
Concepts and practices

Case box 1.1: Magazines take on Amazon

✓

Case box 1.2: How Honda became successful

✓

Case study 1.1: Building the ‘Centrica model’

✓

Case box 2.1: The legacy of Russ Ackoff

✓

Case box 3.1: Profitability of UK retailers

✓

Case box 3.2: Wal-Mart’s British accent needs polish

✓

Case box 3.3: Capital intensity in retailing

✓

Case box 3.4: The scale economy brander

✓

Case box 3.5: World of dealcraft – video games

✗

4 – The macroeconomics
of strategy

Case box 4.1: The Swedish banking crisis 1992

✗

Case box 4.2: Lessons from the global banking crisis 2008

✗

Case study 4.1: The Big Mac Index

✓

5 – Competitive strategy:
the analysis of strategic
position

Case box 5.1: The Germans are coming

✗

6 – Competitive strategy:
the analysis of strategic
capability

Case box 6.1: The game of chess

✗

Case box 6.2: Out of Africa

✓

Case study 6.1: Google: fuzzy maths

✓

7 – Strategy for the digital
economy

Case box 7.1: Many-to-many networks

✗

Case box 7.2: Facebook

✗

Case box 7.3: Standards versioning

✗

Case box 7.4: Market power and interoperability

✗

Case box 7.5: The rise of co-evolution and cooperation

✗

Case box 7.6: Lock-in and switching costs

✗

Case box 7.7: Expectations management

✗

Case study 7.1: Surviving the net: Yahoo!, eBay and Amazon

✓

Case study 7.2: Browser wars are back

✓

2 – A systemic analysis of
strategy and practice

Questions

Part 1 – Strategy Analysis
3 – Industry analysis and
competitive advantage

8 – Corporate strategy:
adding value in
multi-business firms

Case box 5.2: The end of the free lunch – again

✗

Case study 5.1: The Novotel value chain

✓

Case study 5.2: Molecular weight: BASF and the chemical industry

✓

Case box 8.1: Conglomerates in the FTSE 100

✗

Case box 8.2: Mars buys Wrigley

✓

Case box 8.3: The case for conglomerates

✗

Case box 8.4: Merck’s manoeuvres

✗

Case box 8.5: Marauding maharajahs: India’s acquisitive companies

✓

Case study 8.1: Fiat’s ambitions: the Italian solution

✓

xiii

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xiv

CASES

9 – Global strategies and
international advantage

Case box 9.1: Emerging multinationals: they’re behind you

✗

Case box 9.2: Flat prospects: pulp and paper

✗

Case box 9.3: US multinationals are regional not global

✗

Case box 9.4: The first multinationals: Assyria circa 2000 bc

✓

Case box 9.5: Asian alliances

✗

Case study 9.1: Leahy’s global shopping spree: interview with
Sir Terry Leahy

✓

Part 2 – Strategic Implementation and Practice
10 – Organizational
models and strategy

Case box 10.1: What Tesco knows and what Woolies forgot

✗

Case box 10.2: The UK car industry: failure to adapt to
the external environment

✗

Case study 10.1: The cash-register guy

✓

11 – Risk, uncertainty
and strategy

Case box 11.1: The Muzak effect of reducing uncertainty and risk

✗

Case box 11.2: Strategic considerations for a European business
in a global economy

✗

Case study 11.1: Svante Arrenhius, climate change and global
warming: what’s the risk?

✓

12 – Strategic decision
making: process analysis

Case box 12.1: Nokia

✗

Case study 12.1: Magic restored

✓

13 – Strategic decision
making: managing
strategic change

Case box 13.1: Where ‘Think different’ is taking Apple

✗

Case box 13.2: Bankruptcy at Sabena

✗

Case box 13.3: Leadership at St George Bank, Australia

✗

Case box 13.4: Mind traps: locked in our own worlds of experience

✗

Case box 13.5: The Gemini model of corporate transformation

✗

14 – Strategy as
knowledge: innovation
and learning

15 – Strategy and
corporate governance

16 – Analyzing and
measuring strategic
performance

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xiv

Case study 13.1: The education of Andy Grove

✓

Case box 14.1: What do we know about the knowledge economy?

✗

Case box 14.2: Outsource your innovations

✓

Case box 14.3: Does IT matter?

✓

Case box 14.4: Innovation at Apple: the iPod

✓

Case box 14.5: Inertia in organizations through routines

✗

Case box 14.6: 3M’s seven pillars of innovation

✓

Case study 14.1: Don’t laugh at gilded butterflies

✓

Case box 15.1: Goodwin stands firm on £16m RBS pension

✗

Case box 15.2: Starbucks’ CSR statement

✗

Case box 15.3: In Nigeria: Coke is it?

✗

Case study 15.1: Too many turkeys: executive pay

✓

Case box 16.1: Freeserve’s business model

✓

Case box 16.2: Punch Taverns

✓

Case box 16.3: Sales memorandum

✓

Case box 16.4: Business school strategy and the metrics for success

✓

Case study 16.1: The Continental Household Mortgage Company

✓

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Guided Tour

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Part Openers

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At the beginning of each part, the authors
introduce the topics and themes covered
throughout the proceeding chapters.

of Part 1 is the logic of the strategy analyst. In terms of the systemic model in Chapter 2
full in Figure 2.3), the analyst concentrates on the basic elements of the strategy map – as
Figure 2.1. This is where the analyst makes a massive contribution. The analyst assesses
of the economic, market and competitive environment, identifies and assesses major
ptions, and is a prime contributor to the basic thinking behind the ‘theory of the business’
aptured in the strategy statements and the business model. The analyst’s role is cast
e central ideas of competitive advantage – how to be different and yet be successful. The
obsessed with data, with calculations about trade-offs and with testing out alternative
hypotheses. But the analyst also has to be concerned with qualitative data because not
g can be captured by numbers. Alternatives are measured in terms of returns versus risk
of the judgements to be made have to incorporate shrewd assessment alongside objective

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Chapter Introduction
Each introduction section indicates the key
areas that will be discussed within each
chapter and helps to put the chapter
content into a wider perspective.

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Strategy remains one of the most contested and ill-defined concepts in management th
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Figures and Tables
Each chapter has a number of tables and
figures to help you visualise the various
economic models and to illustrate and
summarise important concepts.

3

Case Boxes/Case Studies
Case Boxes appear throughout the chapters
and help relate the theory learnt to real life
situations. Longer Case Studies are at the
back of most chapters and they provide a
more in-depth discussion of organisations
through which to explore the ideas from
the chapter.

228

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3GSM

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xvi

GUIDED TOUR

provision of competitor access to markets, and organization
weigh any advantage. As a result, perhaps 50% of such allianc

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End of Chapter Summary
This briefly reviews and reinforces the main topics you
will have covered in the chapter.

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Key Terms
These are highlighted throughout each chapter and a
list is compiled at the end for reference.

choice
context
formulation
game theory
implementation
influence

392
392
410
391
406
400

A[oj[hci
comparative advantage
country-specific advantage (CSA)
diamond of national advantage
double diamond
factor conditions
firm-specific advantage (FSA)
flagship model
foreign direct investment (FDI)
global markets

311
319
299
317
299
319
320
298
303

global strate
globalizatio
internation
internation
multidomes
multination
national dif
transnation
world Trade

involvement
options
performance
processes
strategic decision

Recap Questions and Assignments

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1 Pick a strategic decision with which you are familiar, or in wh
How would you describe its key process features?
2 Using the same example (or you can choose another strategic d
done and by whom during the process.
3 What, in your view, were the major influences on the decision

These questions encourage you to review and apply the
knowledge you have acquired from the chapter and can be
undertaken to test your understanding.

References and Further Reading
A comprehensive list of references is provided at the
end of each chapter along with suggested further
reading for further exploration into the topic.

H[\[h[dY[i
Barney, J., Wright, M. and Ketchen, D.J. (2001) The resource b
Journal of Management, 27, 6, 625–41.
Bowman, E.H., Singh, H. and Thomas, H. (2001) The domain o
H. Thomas and R. Whittington (eds) Handbook of Strategy
Chandler, A.E. Jr (1962) Strategy and Structure: Chapters i
Enterprise, MIT Press, Cambridge, MA.
Collins, J.C. and Porras, J.I. (1994) Built to Last, Century Boo
Cyert, R.M. and March, J.G. (1963) A Behavioral Theory of t
NJ.
De Wit, B. and Meyer, R. (1999) A Strategy Synthesis, Internat
Deal, T. and Kennedy, A. (1982) Corporate Cultures, AddisonFlynn, F. and Chatman, J.A. (2001) Strong cultures and
In S. Cartwright et al. (eds) International Handbook of O
Chichester, pp. 263–87.
Hall, D.J. and Saias, M.A. (1980) Strategy follows structure! S
Hickson, D., Butler, R., Cray, D., Mallory, G. and Wilson, D

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Case Study Section

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9780077126919_A01.indd

xvi

At the back of the text there are cases from various
industries and organizations, offering real business
situations around which to explore, analyse and critique
strategy in action.

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Technology to enhance learning and teaching

Visit www.mcgraw-hill.co.uk/textbooks/mcgee today

Online Learning Centre (OLC)
After completing each chapter, log on to the supporting Online Learning Centre website. Take
advantage of the study tools offered to reinforce the material you have read in the text, and to
develop your knowledge of strategy in a fun and effective way.
Resources for students include:
■

Multiple Choice Questions

■

A guide to how to interpret case studies

■

Glossary of key terms

■

Learning objectives

■

Suggested answers to end of chapter recap questions and assignments

■

Web links

Also available for lecturers:
■

Case study teaching notes

■

PowerPoint presentations

■

Course outlines

■

Figures and tables from the book

■

A guide on how to teach using case studies

■

Essay questions and solutions

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Custom Publishing Solutions: Let us help
make our content your solution
At McGraw-Hill Education our aim is to help lecturers to find the most suitable content for their
needs delivered to their students in the most appropriate way. Our custom publishing solutions
offer the ideal combination of content delivered in the way which best suits lecturer and students.
Our custom publishing programme offers lecturers the opportunity to select just the chapters or
sections of material they wish to deliver to their students from a database called CREATE™ at
www.mcgrawhillcreate.com

CREATE™ contains over two million pages of content from:
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Case books – Harvard Articles, Insead, Ivey, Darden, Thunderbird and BusinessWeek

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across the following imprints:
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There is also the option to include additional material authored by lecturers in the custom product
– this does not necessarily have to be in English.
We will take care of everything from start to finish in the process of developing and delivering
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Please contact your local McGraw-Hill representative with any questions or alternatively contact
Warren Eels e: [email protected].
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Acknowledgements
Our thanks go to the following reviewers for their comments at various stages in the text’s
development:
John Anchor, Huddersfield University
Lynne Butel, Plymouth University
Charlie Carroll, University of Groningen
Romano Dyerson, University of London, Royal Holloway
Beverly Jones, Keele University
Dr de Jong, University of Groningen
Pikay Richardson, University of Manchester
Dr Van Wijk, Erasmus University
We would also like to thank the following individuals and organisations that granted permission for
material to be reproduced within the textbook:
The Economist Newspaper Limited
INSEAD
John Wiley and Sons, Inc.
Palgrave Macmillan
IMD
The Telegraph Group Limited
Kogan Page Publishers
Blackwell Publishing
Harvard Business School Publishing
Bloomberg BusinessWeek
Fortune Magazine
The Financial Times Limited
Warwick Business School
Thunderbird School of Global Management
Every effort has been made to trace and acknowledge ownership of copyright and to clear permission
for material reproduced in this book. The publishers will be pleased to make suitable arrangements
to clear permission with any copyright holders whom it has not been possible to contact.

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About the Authors
John McGee is Professor of Strategic Management at Warwick Business School, University of
Warwick, UK.
Howard Thomas is Distinguished Chair of Strategic Management, Dean of the Lee Kong Chain
School of Business, Singapore Management University. He is also Emeritus Professor at Warwick
Business School, University of Warwick, UK.
David Wilson is Professor of Strategy and Organization at Warwick Business School, University of
Warwick, UK.

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