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Solution Manual for Exploring Strategy Text And Cases 12th Edition Gerry Johnson, Richard Whittington
Solution Manual for Exploring Strategy Text And Cases 12th Edition Gerry Johnson, Richard Whittington
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Instructor’s ManualExploring Strategy
Text and Cases
Twelfth edition
Richard Whittington
Patrick Regnér
Duncan Angwin
Gerry Johnson
Kevan Scholes
With the assistance of Clive Kerridge and Jason Evans
For further instructor material
please visit:
go.pearson.com/uk/he/resources
© Pearson Education Limited 2020
Lecturers adopting the main text are permitted to download and photocopy the manual as required.
,PEARSON EDUCATION LIMITED
KAO Two
KAO Park
Harlow CM17 9SR
United Kingdom
Tel: +44 (0)1279 623623
Web: www.pearson-books.com
This edition published 2020
© Pearson Education Limited 2020
The rights of Richard Whittington, Patrick Regnér, Duncan Angwin, Gerry Johnson and Kevan
Scholes to be identified as authors of this work have been asserted by them in accordance with the
Copyright, Designs and Patents Act 1988.
ISBN 978-1-292-28249-7
All rights reserved. Permission is hereby given for the material in this publication to be
reproduced for OHP transparencies and student handouts, without express permission of the
Publishers, for educational purposes only. In all other cases, no part of this publication may be
reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise without either the prior written permission of
the Publishers or a licence permitting restricted copying in the United Kingdom issued by the
Copyright Licensing Agency Ltd., Barnard’s Inn, 86 Fetter Lane, London EC4A 1EN. This book
may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding
or cover other than that in which it is published, without the prior consent of the Publishers.
Please note that, unless the material is specifically cited with a source, any company names used
within this Instructor’s Manual have been created by the authors and are intended to be fictitious.
Pearson Education is not responsible for the content of third-party internet sites.
The Financial Times. With a worldwide network of highly respected journalists, The Financial
Times provides global business news, insightful opinion and expert analysis of business, finance
and politics. With over 500 journalists reporting from 50 countries worldwide, our in-depth
coverage of international news is objectively reported and analysed from an independent, global
perspective. To find out more, visit www.ft.com/pearsonoffer.
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© Pearson Education Limited 2020
, Contents
Chapter 1 Introducing strategy 23
Part I THE STRATEGIC POSITION 31
Chapter 2 Macro-environment analysis 32
Chapter 3 Industry and sector analysis 41
Chapter 4 Resources and capabilities analysis 56
Chapter 5 Stakeholders and governance 71
Chapter 6 History and culture 80
Part II STRATEGIC CHOICES 92
Chapter 7 Business strategy and models 93
Chapter 8 Corporate strategy 105
Chapter 9 International strategy 125
Chapter 10 Entrepreneurship and innovation 136
Chapter 11 Mergers, acquisitions and alliances 145
Part III STRATEGY IN ACTION 156
Chapter 12 Evaluating strategies 157
Chapter 13 Strategy development processes 170
Chapter 14 Organising and strategy 183
Chapter 15 Leadership and strategic change 190
Chapter 16 The practice of strategy 198
Case Teaching Notes
Glastonbury: from hippy weekend to international festival 209
The global pharmaceutical industry: harnessing the whirlwind 214
Siemens A: exploring the future 220
Relocation, Relocation, Relocation: evolving strategies to deal with shifting shopping
patterns at Vision Express 225
Ricoh Canada Inc. 241
H&M in fast fashion: continued success? 250
The Formula 1 Constructors 261
‘Access to Healthcare’: integrating a CSR programme in Coloplast 268
Manchester United FC: struggling to compete with Europe’s elite clubs 275
Adnams – A Local Company 299
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© Pearson Education Limited 2020
,‘Dare to know’: The integration of Université Paris-Dauphine with Paris Sciences et
Lettres (PSL) University 308
Ryanair: the low fares airline – new directions? 313
Multi-sided platform competition in the video game industry 343
Megabrew: creating an undisputed global brewing champion? 347
AirAsia and the Tune Group: diversifying across industries 356
Severstal: a journey from growth to consolidation within the steel industry 362
Indian Premier League: glitz, glamour and globalisation 370
Handelsbanken – banking done differently 374
Caitec: A Chinese Business in Africa 378
Going for a Ride: Entrepreneurial Journeys in the on-demand transportation sector 386
Leadership at Apple Inc 392
Has Teva been saved? Responding to challenges and problems in generic pharmaceuticals 400
Managing M&A: Elekta’s acquistion of Neuromag 403
CRH plc: Optimising value through corporate strategy 409
Counterstrategy: resisting the Mexican narco-trafficking business 417
Oak Tree Inn: Growth challenges facing a family-run tourism business 427
Strategic planning at King Faisal Hospital and Research Centre Saudi Arabia 435
Mormor Magda’s ice cream – can you be hot in a cool market? 445
Emmaus: the founder as a resource? 450
Siemens B: ‘making real what matters’ 459
Cultivating a rich harvest at Orchard 468
Strategy Work in Dörr och Portbolaget – How open can you be? 473
In the boardroom at HomeCo 480
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© Pearson Education Limited 2020
,1. Introduction
Exploring Strategy represents one of the most comprehensive packages of material and support
for teachers and students of strategy. The following materials and assistance are now available:
• The text with improved design and layout to assist readers – including objectives for each
part of the book and chapter learning outcomes, concept definitions, chapter summaries,
additional reading and much more.
• Over seventy illustrations and fifteen Thinking Differently sections, each including
questions to facilitate their use as mini cases or class discussions.
• Sixteen end-of-chapter case examples with specific relevance to the content of the chapter
and with questions relating to the major learning issues in the chapter.
• End-of-chapter work assignments, which provide further opportunities for student
assessment, additional work or self-assessment.
• Thirty case studies (text and cases version only) together with comprehensive teaching notes
(in this manual and on the website). The case collection contains a rich mixture of material,
including long and short cases from many different sectors and different countries.
• A number of ‘classic cases’ from past editions (where they are not carried forward into the
twelfth edition but are still useful to tutors and students).
• The Strategy Experience simulation gives students hands-on experience of strategic analysis
and decision making. The simulation can be used by individual students, or as part of a
wider classroom exercise.
For students:
• Revision aids (flashcards, key concepts and glossary (in six languages))
• Multiple-choice questions, work assignments and grade book
• Help with case studies (web links, FT articles and advice on analysing cases).
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For tutors:
• This Instructor’s Manual
• PowerPoint slides
• Tutors’ workshops led by the authors are held annually. These are practical days
concerned with how teachers might gain most advantage from the book and associated
materials. They also act as a forum in which to meet other strategy teachers.
Details on all of these items and extensive tutors’ debriefs of work assignments, illustrations,
case examples and case studies are included in this manual.
Many of these materials are also relevant to our shorter version, Fundamentals of Strategy. This
shorter version has the advantage of consistent definitions and frameworks and the same
illustrations and end-of-chapter case examples. It should therefore be very easy for teachers using
Exploring Strategy or Fundamentals of Strategy to switch between these two texts according to
the needs of a particular course.
2. Using this manual
This manual is designed for the assistance of teachers of strategy in planning how to gain
maximum advantage from the text Exploring Strategy and the associated teaching and learning
materials. It should provide help with:
• planning a teaching approach to suit the type of participants, time available, etc.;
• deciding on how to use the text, illustrations, case examples, readings and case studies in a
teaching scheme;
• choosing additional material to include in a course;
• using the work assignments for the illustrations, case examples and those at the end of
each chapter;
• preparing to teach the case studies;
• using the Exploring Strategy website.
The next two sections are intended to be of particular use to teachers who are relatively new to
teaching strategy or are designing new courses. Experienced teachers may wish to pass over
Sections 3 and 4.
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3. Planning your approach
This section provides some general guidance on how the design of a strategy course can be varied
to meet the requirements of the participants and the practicalities of the situation. The factors
listed below will also influence the way in which the text, readings, work assignments, case
examples, case studies and videos can be used to best advantage.
3.1 Purpose of the course
Strategy courses can be designed to meet many different needs. At one extreme, the course may
mainly be concerned with raising awareness of why organisations need to change and develop over
time and some of the ways in which this occurs. Alternatively, a course may be designed to improve
the skills of participants in the formulation and implementation of strategy. Between these extremes
are other purposes for strategy courses. For example, improving managers’ understanding of how
their job function fits the overall strategic development of the organisation, helping to break down the
very narrow operational outlook of many managers or integrating material from other parts of a
business or management course. The following is some guidance on how the use of text and cases
might be adapted to these various purposes.
• If awareness is the key purpose, the text can be used to provide a basic framework (say through a
lecture series), devoting as much time as possible to illustrative work. The illustrations and case
examples in the text should prove valuable resources and teachers try to supplement these with
their own topical material (media sources, company websites, etc.). Where participants have access
to live organisations, use of issues from those organisations should be encouraged (e.g. student
research and presentations). Guest speakers could also prove valuable – particularly, interesting
success stories. The case studies and videos can be used mainly to encourage discussion and
illustrate particular aspects of strategy. Work assignments should be useful to consolidate some of
the key concepts in strategic management.
• If skills development is most important, then the purpose of the text should be to help participants
understand concepts and analytical tools which they can apply and practice. Most of the case
examples and case studies lend themselves to an analytical approach, and participants should be
set tasks that require them to produce detailed and practical solutions. Work assignments for the
illustrations and at end of the chapters should be useful to test skills development and the
understanding of key concepts. With some groups, it may be possible to require participants to
develop their skills on real, company-based issues, through a project. For example, students can
be asked to undertake an analysis of a particular industry or company (which could be done on
the basis of secondary data), to assess the strategic choices available to an organisation and
propose how issues of implementation would be managed. Many of the advanced level work
assignments are specifically designed to test readers’ in-depth understanding of issues and/or
ability to use them in a project situation.
• Where the relationship between strategy and the separate business functions is of primary
importance, group work (preferably with cross-functional teams) could be very helpful. This
could be for work on the case studies, in-company work or business simulations.
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3.2 Level of participant
The purpose of a strategy course is likely to differ with the level of participant (see Table 1). For
example, this could relate to their age, job function or type of course which they are studying.
• For younger people with little full-time work experience the text should prove useful in
providing a systematic approach and illustrations of strategy in practice. The illustrations and
case examples in the text (and associated work assignments) should be used to relate theory to
practice. Case studies and the video material should be used in fairly focused ways to consolidate
stages in the learning rather than in an all-embracing way until later in the course. Selected
readings should also prove helpful. The standard level work assignments will be the most
appropriate for this group.
• Where participants have some work experience but are nevertheless fairly junior (e.g. final year
sandwich course students and many young manager courses), the same comments are relevant
except that there are more opportunities to encourage participants to relate to real-life situations
through presentations, in-company projects, etc.
• For more experienced managers (e.g. in many part-time or executive MBA programmes or in-
company courses) it should be possible to reduce the formal inputs of concepts and methods.
Many experienced managers will have some knowledge of the basic concepts and tools already,
although their understanding may be quite unreliable. It is often effective therefore to invite
attendees to read the relevant text before the session, either as a refresher or as an introduction.
It is then possible to devote the majority of time to applied work (the case studies, group projects,
presentations, etc.). For in-house courses, application can be directed at the organisation’s own
issues; it may be possible to do the same amongst the more diverse participants in an open
executive MBA course. It is also likely that the content in Chapters 12–16 will warrant more
emphasis since they raise critical issues of processes of strategic management confronting
practising managers. It may also make sense to begin the course by discussing different ways of
understanding strategy and strategic management. The strategy lenses introduced in the
Commentary at the end of Part I provide a basis for this since they reflect on how strategy might
be seen and interpreted in different ways.
Table 1 Using the text and cases with different participants
No work experience Limited work Experienced
experience managers
1. Typical groups Undergraduates Sandwich degree Part-time MBA, in-company
students, supervisory courses
level, full-time MBA
2. Sequencing of In chapter sequence In chapter sequence In chapter sequence
material from text (possibly highlighting of
Chapters 12–16 earlier)
3. Relative Main emphasis on More balanced Greater emphasis on
emphasis of Chapters 1–11 emphasis ‘process issues’ and
issues Commentaries
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4. Text to read After class sessions After class sessions Before or after class
sessions
5. Applied work Illustrate issues from Practice analytical As a way of improving
(case studies, the text in a carefully and conceptual practical skills, especially as
etc.) used to focused way understanding applied to their own
organisations
6. Additional Selected key readings Selected key Selected key readings
reading readings (typically from Harvard
Business Review or similar)
3.3 Study mode
The mode of study should also influence course design.
• For full-time courses, a good level of preparation of case study work should normally be
expected. Such preparation provides an opportunity for smaller groups to work together on
tasks for significant periods of time. A tightly organised package of student work (the case
studies, group work, presentations, etc.) is, therefore, possible as an important way of
consolidating the concepts/approaches from the text. However, the chance of live in-
company work may be more limited – although projects based largely on secondary data
can be very effective.
• In contrast, part-time or executive students should be more in touch with ongoing
management issues but may have less preparation time available and find it more difficult
to meet in groups. It may be, therefore, that some group time needs to be built into the
programme and/or online discussion forums should be set up. It can also be helpful to
provide selected readings linking theory and practice to part-time students as a basis for
group/class discussions or presentations. Assignments and exercises can be directed at
students’ employing organisations.
• Increasingly, online and distance learning elements are being used in business and
management programmes. The structured nature of the text together with the illustrations,
case examples readings, case studies, work assignments and website material can form the
backbone of learning modules. Section 4 below, which reviews work assignments, provides
guidelines on how the issues and materials in the book can be used to provide a structured
learning ‘path’ for students.
3.4 Time available
The study hours available will also influence the course design and the use of text and cases.
• For long programmes (50 hours+) it should prove possible to use the text and cases extensively
and to supplement the course with other materials and activities.
• For shorter programmes, a more selective use of the materials is likely to be necessary. For
example, a course concerned largely with strategy formulation could confine the use of the text
to Chapters 1–11 (or 12) and the associated illustrations, case examples, readings, case studies,
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video, work assignments and website material. In this case, our related book Fundamentals of
Strategy might be considered as a course text. A course on strategic change and implementation
would be centred on Chapters 13–16. The other chapters would be recommended as follow-up
or contextual reading.
• Where time is very limited – particularly with more experienced managers – sessions may
consist of an introduction to some basic ideas through the frameworks from the text together
with a case study (or similar activity). More extensive use of the text would be in the
participants’ own time either pre- or post-course. The authors regularly use such an
approach on short courses for senior managers. The work assignments also provide a
valuable checklist and/or self-study guide around these basic concepts. Although
experienced managers may appreciate the relative brevity of Fundamentals of Strategy, they
often find the more detailed attention to the practicalities of process available in Exploring
Strategy very useful as a reference source: it has been our (surprising) experience that the
longer book is preferred.
4. Designing the teaching scheme
4.1 Pre-course work
It should be clear from the above that there are many circumstances where pre-course work could
be essential. The text and case studies are designed to facilitate this. Where pre-course work is
needed, it is suggested that it is prescribed in the following way:
• The appropriate chapters of the book with a few suggested issues to bear in mind. For
example, it might prove useful for participants to read Chapter 1 and be expected to discuss
what is meant by ‘strategy’ or to read Chapter 4 and discuss what strategic capabilities
matter most in organisations in different sectors.
• Preparation of illustrations, case examples or case study material. Here, specific guidance
can be found in the teaching notes in Section 6 and in the work assignment debriefs.
• Any company-specific data that they might need. For example, if participants are to
undertake project work they may need to access company reports, accounts and websites.
To accompany the reading of Chapter 1 and/or Chapters 13 and 16, students could be asked
to reflect on how strategic issues are managed in their own organisation. Or students could
be asked to bring some topical data (e.g. media articles or blog posts) that might be used to
develop a presentation on the course.
4.2 Starting the course
The specific requirements of each course will vary but here is some guidance on how courses in
strategy might be started:
• A traditional approach would be to run through the issues in Chapter 1 and relate them to
the structure of the course. This is most successful if the course follows the text quite closely
and in chapter sequence.
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