,PEARSON k EDUCATION k LIMITED
KAO
kTwo
kKAO
kPark
Harlow kCM17 k9SR
kUnited kKingdom
Tel: k+44 k(0)1279 k623623
Web: k www.pearson-books.com
This kedition kpublished k2020
© kPearson kEducation kLimited k2020
The krights kof kRichard kWhittington, kPatrick kRegnér, kDuncan kAngwin, kGerry kJohnson kand
kKevan kScholes kto kbe kidentified kas kauthors kof kthis kwork khave kbeen kasserted kby kthem kin
kaccordance kwith kthe kCopyright, kDesigns kand kPatents kAct k1988.
ISBN k 978-1-292-28249-7
All krights kreserved. kPermission kis khereby kgiven kfor kthe kmaterial kin kthis kpublication kto
kbe kreproduced kfor kOHP ktransparencies kand kstudent khandouts, kwithout kexpress
kpermission kof kthe kPublishers, kfor keducational kpurposes konly. kIn kall kother kcases, kno
kpart kof kthis kpublication kmay kbe kreproduced, kstored kin ka kretrieval ksystem, kor
ktransmitted kin kany kform kor kby kany kmeans, kelectronic, kmechanical, kphotocopying,
krecording, kor kotherwise kwithout keither kthe kprior kwritten kpermission kof k the kPublishers kor
ka klicence kpermitting krestricted kcopying kin kthe kUnited kKingdom kissued kby kthe
kCopyright kLicensing kAgency kLtd., kBarnard‟s kInn, k86 kFetter kLane, kLondon kEC4A k1EN.
kThis kbook kmay knot kbe klent, kresold, khired kout kor kotherwise kdisposed kof kby kway kof ktrade
kin kany kform kof kbinding kor kcover kother kthan kthat kin kwhich kit kis kpublished, kwithout kthe
kprior kconsent kof kthe kPublishers.
Please knote kthat, kunless kthe kmaterial kis kspecifically kcited kwith ka ksource, kany kcompany
knames kused kwithin k this k Instructor‟s k Manual k have k been k created k by k the k authors k and k are
k intended k to k be k fictitious.
Pearson kEducation kis knot kresponsible kfor kthe kcontent kof kthird-party kinternet ksites.
The kFinancial kTimes. kWith ka kworldwide knetwork kof khighly krespected kjournalists, kThe
kFinancial kTimes kprovides kglobal kbusiness knews, kinsightful kopinion kand kexpert kanalysis
kof kbusiness, kfinance kand kpolitics. kWith kover k500 kjournalists kreporting kfrom k50
kcountries kworldwide, kour kin-depth kcoverage kof kinternational knews kis kobjectively
kreported kand kanalysed kfrom kan kindependent, kglobal kperspective. kTo kfind kout kmore, kvisit
kwww.ft.com/pearsonoffer.
2
© kPearson kEducation kLimited
k2020
, Contents
Chapter k1 Introducing kstrategy 23
Part kI THE kSTRATEGIC kPOSITION 31
Chapter k2 Macro-environment k analysis 32
Chapter k3 Industry kand ksector kanalysis 41
Chapter k4 Resources kand kcapabilities kanalysis 56
Chapter k5 Stakeholders kand kgovernance 71
Chapter k6 History kand kculture 80
Part kII STRATEGIC kCHOICES 92
Chapter k7 Business kstrategy kand kmodels 93
Chapter k8 Corporate kstrategy 105
Chapter k9 International kstrategy 125
Chapter k10 Entrepreneurship kand kinnovation 136
Chapter k11 Mergers, kacquisitions kand kalliances 145
Part kIII STRATEGY kIN kACTION 156
Chapter k12 Evaluating kstrategies 157
Chapter k13 Strategy kdevelopment kprocesses 170
Chapter k14 Organising kand kstrategy 183
Chapter k15 Leadership kand kstrategic kchange 190
Chapter k16 The kpractice kof kstrategy 198
Case kTeaching kNotes
Glastonbury: k from k hippy k weekend k to k international k festival 209
The k global k pharmaceutical k industry: k harnessing k the k whirlwind 214
Siemens k A: k exploring k the k future 220
Relocation, kRelocation, kRelocation: kevolving kstrategies kto kdeal kwith kshifting kshopping
patterns kat kVision kExpress 225
Ricoh kCanada kInc. 241
H&M k in k fast k fashion: k continued k success? 250
The k Formula k 1 k Constructors 261
„Access k to k Healthcare‟: k integrating k a k CSR k programme kin k Coloplast 268
Manchester k United k FC: k struggling k to k compete k with k Europe‟s k elite k clubs 275
Adnams k – k A k Local k Company 299
3
© kPearson kEducation kLimited
k2020
, „Dare kto kknow‟: kThe kintegration kof kUniversité kParis-Dauphine kwith kParis kSciences ket
Lettres k(PSL) kUniversity 308
Ryanair: kthe klow kfares kairline k– knew kdirections? 313
Multi-sided kplatform kcompetition kin kthe kvideo kgame kindustry 343
Megabrew: kcreating kan kundisputed kglobal kbrewing kchampion? 347
AirAsia kand kthe kTune kGroup: kdiversifying kacross kindustries 356
Severstal: ka kjourney kfrom kgrowth k to kconsolidation k within kthe ksteel k industry 362
Indian kPremier kLeague: kglitz, kglamour kand kglobalisation 370
Handelsbanken k– kbanking kdone kdifferently 374
Caitec: kA kChinese kBusiness kin kAfrica 378
Going kfor ka kRide: kEntrepreneurial kJourneys kin kthe kon-demand ktransportation ksector 386
Leadership kat kApple kInc 392
Has kTeva kbeen ksaved? kResponding kto kchallenges kand kproblems kin kgeneric kpharmaceuticals
400
Managing kM&A: kElekta‟s kacquistion kof kNeuromag 403
CRH k plc: k Optimising kvalue kthrough kcorporate k strategy 409
Counterstrategy: kresisting kthe kMexican knarco-trafficking kbusiness 417
Oak kTree kInn: kGrowth kchallenges kfacing ka kfamily-run ktourism kbusiness 427
Strategic kplanning kat kKing kFaisal kHospital kand kResearch kCentre kSaudi kArabia 435
Mormor kMagda‟s kice kcream k– kcan kyou kbe khot kin ka kcool kmarket? 445
Emmaus: kthe kfounder kas ka kresource? 450
Siemens kB: k„making kreal kwhat kmatters‟ 459
Cultivating ka krich kharvest kat kOrchard 468
Strategy kWork kin kDörr koch kPortbolaget k– kHow kopen kcan kyou kbe? 473
In kthe kboardroom kat kHomeCo 480
4
© kPearson kEducation kLimited
k2020
KAO
kTwo
kKAO
kPark
Harlow kCM17 k9SR
kUnited kKingdom
Tel: k+44 k(0)1279 k623623
Web: k www.pearson-books.com
This kedition kpublished k2020
© kPearson kEducation kLimited k2020
The krights kof kRichard kWhittington, kPatrick kRegnér, kDuncan kAngwin, kGerry kJohnson kand
kKevan kScholes kto kbe kidentified kas kauthors kof kthis kwork khave kbeen kasserted kby kthem kin
kaccordance kwith kthe kCopyright, kDesigns kand kPatents kAct k1988.
ISBN k 978-1-292-28249-7
All krights kreserved. kPermission kis khereby kgiven kfor kthe kmaterial kin kthis kpublication kto
kbe kreproduced kfor kOHP ktransparencies kand kstudent khandouts, kwithout kexpress
kpermission kof kthe kPublishers, kfor keducational kpurposes konly. kIn kall kother kcases, kno
kpart kof kthis kpublication kmay kbe kreproduced, kstored kin ka kretrieval ksystem, kor
ktransmitted kin kany kform kor kby kany kmeans, kelectronic, kmechanical, kphotocopying,
krecording, kor kotherwise kwithout keither kthe kprior kwritten kpermission kof k the kPublishers kor
ka klicence kpermitting krestricted kcopying kin kthe kUnited kKingdom kissued kby kthe
kCopyright kLicensing kAgency kLtd., kBarnard‟s kInn, k86 kFetter kLane, kLondon kEC4A k1EN.
kThis kbook kmay knot kbe klent, kresold, khired kout kor kotherwise kdisposed kof kby kway kof ktrade
kin kany kform kof kbinding kor kcover kother kthan kthat kin kwhich kit kis kpublished, kwithout kthe
kprior kconsent kof kthe kPublishers.
Please knote kthat, kunless kthe kmaterial kis kspecifically kcited kwith ka ksource, kany kcompany
knames kused kwithin k this k Instructor‟s k Manual k have k been k created k by k the k authors k and k are
k intended k to k be k fictitious.
Pearson kEducation kis knot kresponsible kfor kthe kcontent kof kthird-party kinternet ksites.
The kFinancial kTimes. kWith ka kworldwide knetwork kof khighly krespected kjournalists, kThe
kFinancial kTimes kprovides kglobal kbusiness knews, kinsightful kopinion kand kexpert kanalysis
kof kbusiness, kfinance kand kpolitics. kWith kover k500 kjournalists kreporting kfrom k50
kcountries kworldwide, kour kin-depth kcoverage kof kinternational knews kis kobjectively
kreported kand kanalysed kfrom kan kindependent, kglobal kperspective. kTo kfind kout kmore, kvisit
kwww.ft.com/pearsonoffer.
2
© kPearson kEducation kLimited
k2020
, Contents
Chapter k1 Introducing kstrategy 23
Part kI THE kSTRATEGIC kPOSITION 31
Chapter k2 Macro-environment k analysis 32
Chapter k3 Industry kand ksector kanalysis 41
Chapter k4 Resources kand kcapabilities kanalysis 56
Chapter k5 Stakeholders kand kgovernance 71
Chapter k6 History kand kculture 80
Part kII STRATEGIC kCHOICES 92
Chapter k7 Business kstrategy kand kmodels 93
Chapter k8 Corporate kstrategy 105
Chapter k9 International kstrategy 125
Chapter k10 Entrepreneurship kand kinnovation 136
Chapter k11 Mergers, kacquisitions kand kalliances 145
Part kIII STRATEGY kIN kACTION 156
Chapter k12 Evaluating kstrategies 157
Chapter k13 Strategy kdevelopment kprocesses 170
Chapter k14 Organising kand kstrategy 183
Chapter k15 Leadership kand kstrategic kchange 190
Chapter k16 The kpractice kof kstrategy 198
Case kTeaching kNotes
Glastonbury: k from k hippy k weekend k to k international k festival 209
The k global k pharmaceutical k industry: k harnessing k the k whirlwind 214
Siemens k A: k exploring k the k future 220
Relocation, kRelocation, kRelocation: kevolving kstrategies kto kdeal kwith kshifting kshopping
patterns kat kVision kExpress 225
Ricoh kCanada kInc. 241
H&M k in k fast k fashion: k continued k success? 250
The k Formula k 1 k Constructors 261
„Access k to k Healthcare‟: k integrating k a k CSR k programme kin k Coloplast 268
Manchester k United k FC: k struggling k to k compete k with k Europe‟s k elite k clubs 275
Adnams k – k A k Local k Company 299
3
© kPearson kEducation kLimited
k2020
, „Dare kto kknow‟: kThe kintegration kof kUniversité kParis-Dauphine kwith kParis kSciences ket
Lettres k(PSL) kUniversity 308
Ryanair: kthe klow kfares kairline k– knew kdirections? 313
Multi-sided kplatform kcompetition kin kthe kvideo kgame kindustry 343
Megabrew: kcreating kan kundisputed kglobal kbrewing kchampion? 347
AirAsia kand kthe kTune kGroup: kdiversifying kacross kindustries 356
Severstal: ka kjourney kfrom kgrowth k to kconsolidation k within kthe ksteel k industry 362
Indian kPremier kLeague: kglitz, kglamour kand kglobalisation 370
Handelsbanken k– kbanking kdone kdifferently 374
Caitec: kA kChinese kBusiness kin kAfrica 378
Going kfor ka kRide: kEntrepreneurial kJourneys kin kthe kon-demand ktransportation ksector 386
Leadership kat kApple kInc 392
Has kTeva kbeen ksaved? kResponding kto kchallenges kand kproblems kin kgeneric kpharmaceuticals
400
Managing kM&A: kElekta‟s kacquistion kof kNeuromag 403
CRH k plc: k Optimising kvalue kthrough kcorporate k strategy 409
Counterstrategy: kresisting kthe kMexican knarco-trafficking kbusiness 417
Oak kTree kInn: kGrowth kchallenges kfacing ka kfamily-run ktourism kbusiness 427
Strategic kplanning kat kKing kFaisal kHospital kand kResearch kCentre kSaudi kArabia 435
Mormor kMagda‟s kice kcream k– kcan kyou kbe khot kin ka kcool kmarket? 445
Emmaus: kthe kfounder kas ka kresource? 450
Siemens kB: k„making kreal kwhat kmatters‟ 459
Cultivating ka krich kharvest kat kOrchard 468
Strategy kWork kin kDörr koch kPortbolaget k– kHow kopen kcan kyou kbe? 473
In kthe kboardroom kat kHomeCo 480
4
© kPearson kEducation kLimited
k2020
