De Wit – Strategy: An International Perspective – Summary
Chapter 1 – Introduction
The Nature of Strategy
- There are strongly differing opinions on most of the key issues, and the disagreements run so deep
that even a common definition of the term ‘strategy’ is illusive
- Intention: acknowledge the disagreements and encourage thinking about the value of each of the
different point of view
Identifying the Strategy Issues
- Tool-driven learning: understand all major theories separately first, so that they can be compared or
combined later when using then in practice
- Each key issue is identified and then looked at form the perspective of the most appropriate
theories. 11 issues are identified for the next 11 chapters:
Strategizing
Missioning and visioning
Strategy dimensions:
Content: the combined decisions and choices that lead a company into the future,
the what of strategy (business, corporate and network levels)
Process: the manner in which strategies come about, the how, when, and who
(forming, changing and innovating)
Context: the set of circumstances under which both the content and process are
determined, the where (industry, organisation and international)
Context
Purpose Process Content
Context, content and process are not different parts of strategy, but are
distinguishable dimensions. Each strategic problem situation is three dimensional
Structuring the Strategy Debates
- Three possibilities for explaining the existing theoretical disagreements: select the valid theory;
combine various theories; combine various theories
- Assumptions about strategy tensions: fundamental tensions between opposites. Although these
opposites confront strategizing managers with conflicting pressures, somehow, they must be dealt
with simultaneously.
- Identifying strategy perspectives: strategy issues can be view from many perspectives. Two
perspectives in each chapter represent the two extreme ways of dealing with a strategy tension,
emphasizing one side or the other
1
, Strategy Topics Strategy Paradoxes Strategy Perspectives
Chapter 2 Strategizing Logic vs Intuition Analytic Reasoning vs
Holistic Reasoning
Chapter 3 Mission and Visioning Profitability vs Shareholder Value vs
Responsibility Stakeholder Value
Chapter 4 Business Level Strategy Market vs Resources Outside-in vs Inside-out
Chapter 5 Corporate Level Strategy Responsiveness vs Portfolio Organization vs
Synergy Integrated Organization
Chapter 6 Network Level Strategy Competition vs Discrete Organization vs
Cooperation Embedded Organisation
Chapter 7 Strategy Formation Deliberateness vs Strategic Planning vs
Emergence Strategic Incrementalism
Chapter 8 Strategic Change Revolution vs Evolution Discontinuous Renewal vs
Continuous Renewal
Chapter 9 Strategic Innovation Exploitation vs Strategic Improvement vs
Exploration Radical Rejuvenation
Chapter 10 Industry Context Compliance vs Choice Industry Dynamics vs
Industry Leadership
Chapter 11 Organizational Context Control vs Chaos Organisational Leadership vs
Organisational Dynamics
Chapter 12 International Context Globalization vs Global Convergence vs
Localization International Diversity
- Strategy tensions (paradoxes in this book) as both/and problems
Either/or problems: a puzzle, a dilemma, can be solved by analysing and choosing
And/or problems: trade-offs, paradoxes, can only be managed
- Taking a dialectical approach: using two opposite points of view to arrive at a better understanding
of the issue and a higher-level resolution that integrates both the thesis and antithesis. Advantages:
Range of ideas, clarify how diverse the thinking is, frame a full set of views (book-end)
Points of contention, rapidly gain insight into major points of contention (contrast)
Stimulus for bridging, incorporate both views into more sophisticated synthesis (integrative)
Stimulus for creativity, creatively deal with the paradoxical situation (generative)
Managing Strategy Paradoxes
- Dealing with paradoxes: judging which option might work in a particular situation is an important
capability, but the range of options is not infinite
- Managing paradoxes taxonomy
Options Alternative terminologies In Chapter
Navigating Temporal separation; Punctuated 2, 5, 6, 8, 9, 12
equilibrium
Parallel processing Spatial separation 2, 4, 6, 9
Balancing Yin Yang Balancing; Blending; Trade-off; 5, 7, 9, 11, 12
Dilemma; Accepting contradictions
Juxtaposing Manage opposites simultaneously 4, 6, 7, 10, 11
Resolving Synthesis; Resolving the paradox; Beyond 3, 5, 12
trade-off; Best-of-both
Embracing Dialectic; Combining; Exploit the tension 2, 11, 12
- Being able to manage strategy paradoxes is not a goal in itself, it is a necessary means to managing
paradoxes and creating an advantage over competitors
2
, Developing an International Perspective
- In a highly integrated world economy, in which many firms operate across national boundaries,
strategy is by nature an international affair.
- There is a danger that theories are based on local assumptions that are not true or appropriate in
other nations, at threat that could be called ‘think local, generate global’.
- The international validity of locally formulated strategy theories has gone largely unquestioned in
international journals and forums
Chapter 7 – Strategy Formation
- Definition strategy introduction Section III: ‘strategy is a course of action for achieving an
organizations purpose’. A major distinction can be observed between people who see strategy as an
intended course of action and those who regard strategy as realized course of action (views are not
contradictory, but complimentary).
- Intended strategy: what individuals or organizations formulate prior to action (pattern of decisions)
- Realized strategy: strategic behaviour exhibited in practice (pattern of actions)
- The process by which an intended strategy is created is called ‘strategy formulation’ and is normally
followed by strategy implementation
- The process by which a realized strategy is formed is called ‘strategy formation’, might be bases on
intended strategy but can also be unintended. The entire process leading to strategic behaviour in
practice.
The Issue of Realized Strategy
Strategy formation activities
- Identification: all activities contributing to a better understanding of what should be viewed as
problematic, key activities:
Mission setting: mission is the basis of an organization’s identity, sets the basic conditions
under which it wishes to function
Agenda setting: which issues are picked up on the organisational radar screen, discussed and
looked into further
- Diagnosis: try to comprehend the structure and underlying causes of a problem/issue
External assessment: investigating the structure and dynamics of the environment
surrounding the organization, in which direction external circumstances are developing (OT)
Internal assessment: investigating the capabilities and functioning of the organization (SW)
- Conception/conceiving: all activities that contribute to determining which course of action should
be pursued
Option generation: creating potential strategies
Option selection: evaluating potential solutions
- Realization: practical actions performed by the organization
Action taking: carrying out of a potential solution
Performance control: measure whether the actions being taken are in line with the selected
option and whether the results are in line with what was anticipated
Strategy formation roles
- Top vs middle vs bottom roles
- Line vs staff roles
- Internal vs external roles
The Paradox of Deliberateness and Emergence
3
