Contemporary Strategic Management

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Contemporary Strategic Management (6 ed.)
Robert M. Grant

Book Summary by:Pavan Soni Doctoral Student, IIM Bangalore www.pavansoni.net innovation.evangelist@gmail.com

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Quotes
Strategy is the great work of the organization. In situations of life or death, it is the Tao of survival or extinction. Its study cannot be neglected -

Sun Tzu, The Art of War

The strategic aim of business is to earn a return on capital, and if in any particular case the return in the long run is not satisfactory, then the deficiency should be corrected or the activity abandoned for a more favorable one -

Alfred P Sloan, My Years with General Motors

Diversification is like sex; its attractions are obvious, often irresistible. Yet, the experience is often disappointing. -

Robert Grant

Book Summary by Pavan Soni (www.pavansoni.net )

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Definitions
 

The term strategy derives from the Greek word strategia, meaning „generalship‟ Strategy is not detailed plan or program of instructions; it is underlying theme that gives coherence and direction to the actions and decisions of an individual or an organization

Book Summary by Pavan Soni (www.pavansoni.net )

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Index
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The Concept of Strategy Goals, Values and Performance Industry Analysis: The Fundamentals Further Topics in Industry and Competitive Analysis Analyzing Resources and Capabilities









Industry Evolution and Strategic Change Technology-based Industries and Management of Innovation Competitive Advantage in Mature Industries Vertical Integration and the Scope of the Firm









Organizational Structure and Management Systems The Nature and Sources of Competitive Advantage Cost Advantage Differentiation Advantage



 



Global Strategies and Multinational Corporation Diversification Strategy Managing Multi-business Corporation Current Trends in Strategic Management

Book Summary by Pavan Soni (www.pavansoni.net )

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The Concept of Strategy (1/…)


Characteristics of a strategy




Strategic fit


Simple, consistent and long term goals Profound understanding of competitive environment Objective appraisal of resources Effective implementation Goals and values Resources and capabilities Structure and systems Customer, competitors and suppliers 

Link between firm and external environment



 



Problem with SWOT analysis (too simplistic a classification) Commonality between strategy in military and business  



Internal environment
  

Are important Involve a significant commitment of resources Not easily revisable





External environment


Book Summary by Pavan Soni (www.pavansoni.net )

5

The Concept of Strategy (2/…)


1950s- 60s (Financial Budgeting)
 



DCF- based capital budgeting Financial control through operating budget Medium term economic forecasting Formal corporate planning Diversification and quest for synergy Creation of corporate planning departments 

1970s= 80s (Quest for Competitive Advantage)


Analysis of resources and capabilities Shareholder value maximization Restructuring and re-engineering Alliances



1960s- 70s (Corporate Planning)
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1990s- 2000s (Strategy for the New Economy)
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Strategic innovation New business models Disruptive technologies



1970s- 80s (Strategy as Positioning)





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Industry analysis Market segmentation The experience curve PIMS Analysis Planning through portfolios

2000s (Strategy in the New Millennium)

  

CSR and business ethics
Competing for standards Winner-take-all markets Global strategy 6

Book Summary by Pavan Soni (www.pavansoni.net )

The Concept of Strategy (3/…)


Two questions of strategic choices
 

Where to compete? How to compete? Corporate strategy (domain selection)- industry attractiveness Business strategy (domain navigation)- competitive...
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