Chapter 1: The Concept of Strategy
Instructor Manual
Introduction
The major goal of this first class in Strategy is to convey an appreciation of what strategy is,
by introducing students to a range of different perspectives and to some of the key debates
in this field of study.
The principal themes that we emphasise are:
The contribution of strategy to the success of individuals and organizations
The origins and lineage of strategy - the ways in which ideas about ‘strategy’ have
developed over time
Key questions and debates in strategy which include:
o What is strategy?
o What role does strategy play in business organisations?
o How can we describe and identify a firm’s strategy?
o What role does strategy perform?
o Whose interests does strategy serve?
Lecture/Instructor-led activity
There are a number of different ways of introducing strategy but the main aim is to get
students engaged and reflecting critically on the material from the start. We outline two
approaches that seem to work well. Which one is adopted depends to a large extent on the
nature and size of the student group as well as the tutor’s individual preference. The first
approach is to start the session by asking students to write down what they understand by
the term ‘strategy’ i.e. how they interpret the term in everyday speech. They are then asked
to work in pairs or small groups comparing their different statements. The instructor invites
selected groups to share their thoughts with the whole class and builds up a list of key terms
associated with ‘strategy’. Students tend to think define strategy in terms of plans, routes to
achieving goals, competitive tactics and so on. Distilling points of similarity and difference
between different students’ commonsense understandings leads nicely into a discussion of
the history of strategy and the way different perspectives on strategy have emerged over
time. It also highlights the fact that there is no universally agreed definition of strategy and
that the perspective or definition that you adopt shapes the questions you ask and the role
,you think strategy plays within business organisations. This acts as a logical bridge to the
next step of the session that looks more systematically at different definitions of strategy
and the role that strategy plays within organisations.
An alternative starting point which tends to work well with large groups of undergraduates
in a lecture setting is to start with images (or video clips) of successful individuals – in the
text we focus on Lady Gaga, James Dyson and Alex Ferguson. The instructor invites members
of the audience to identify these individuals, say something about what they do and why
they think the instructor has chosen them as examples of successful individuals. The
instructor then asks the audience to consider whether these individuals, despite their
obvious differences, have anything in common. This leads to a discussion of the role that
strategy plays in success and some of the key characteristics of strategy.
Having, hopefully, captured the student’s attention, the session proceeds by posing some
fundamental questions, in particular
1. What is strategy?
2. What role does strategy play in business organisations
3. How can we describe strategy?
4. How can we identify strategy?
5. Whose interests are/should be prioritised?
It is worthwhile spending a little time on questions 3 and 4 particularly if, at a later stage in
the course, students are asked to undertake assignment work that requires them to gather
information of selected companies. Many students find the notion of ‘strategy’ hard to get
to grips with initially so the more concrete examples that can be given at the start, the
better. Concluding the first session by connecting ‘strategy’ to topical debate about
shareholder capitalism and corporate social responsibility alerts students to the currency
and importance of the subject matter to which they will be introduced in subsequent
sessions. It also creates the opportunity for the instructor to provide a road map for
subsequent classes and to explain how themes introduced in this first session are
subsequently picked up and developed in more detail. At the end of the class the instructor
might ask students to reflect on their own goals and strategies for success, particularly given
the rather turbulent economic conditions most economies have faced in recent years.
Tutorial/Student-led activity
,The mini-case that accompanies this session is ‘King of Shaves’. It goes without saying that it
is a good idea to get students to read the mini-case in advance but in one of the video clips
accompanying this chapter Will King, the founder of King of Shaves talks about his business
and reinforces some of the information contained within the case. King of Shaves was
chosen as an introductory case, even though some students may be unfamiliar with the
brand, because the product is easily understood and the industry context, where a small
start-up enters an industry dominated by two multi-national players, is one that appeals to
students.
The main aim of the case session is to draw out issues of business success, giving
consideration to goals and values, the industry environment and organizational resources.
The case allows the instructor to draw out both analytical aspects of strategy and also
human and processual ones and invites us to pose the question ‘did Will King have a
strategy?’ Suggested answers to the case questions are provided in the teaching and
learning materials for this chapter.
Instructors that like to give students a more substantial case at the start of their programme
may prefer to use the Madonna case which is available as part of the on-line materials
accompanying this text. The Madonna case focuses on much the same issues as the King of
Shaves case and examines Madonna’s continuing success over three decades. Case
questions and suggested answers accompany are available on the web site.
Teaching Note and Suggested Answers to the King of Shaves case questions
At the start of the course it is good for students to get to know each other by working in
small groups. The instructor can either assign individuals to groups or allow them to self-
select. Students discuss the case questions within their work groups and then engage in a
general class discussion, with groups taking it in turns to lead the initial discussion.
How would you account for Will King’s success in building the King of Shaves business?
, An obvious place to start is with a discussion of what constitutes success. Is success about
profits, market share, survival, personal fulfilment or other factors?
Students usually offer a variety of reasons why King of Shave has been successful despite its
unpromising starting position. These can be grouped under the four headings used in
Chapter 1 Figure 1.1.
Clear, consistent long-term goals (King sets himself clear targets and establishes milestones;
has had the long term aim of making King of Shaves a global, million dollar brand; has a
sense of purpose and vision that is not wholly based on profit)
Profound understanding of the business environment (King developed the product because
of his own frustration with existing products so had a appreciation of his target customers;
he recognised the overarching importance of access to retail distribution; he critically
appraised his competitors product portfolios and market positions)
Appreciation of own resources and capabilities (bootstrap financing; recognising and
overcoming the problems with packaging; using viral and social media to market the
product)
Effective implementation (active engagement with customers through blogs and social
media; a step by step approach to product and market expansion; building a trusted team)
What role do you think luck played in Will King’s success?
Some students will see King as having a number of ‘lucky breaks’ including:
His chance discovery of the soothing properties of essential oils for shaving
Meeting Hiten Dayal, who subsequently becomes a close business partner
Getting Harrods to stock his product on an initial trial basis
Others will argue that he created his own luck by recognising and seizing opportunities when
they presented themselves and by being tenacious in his pursuit of investors, suitable
suppliers and retail distributors. Instructors may wish to draw students’ attention to Barney’s
famous comment1 that any competitive advantage that does not arise from ‘special insights
into the future value of strategies’ must instead be a ‘manifestation of a firm’s good fortune
or luck’. The problem, of course, for strategists is that linkages between strategy and
performance are identified after the fact and it is difficult to establish whether the
relationship between these variables is causal. If we seek to offer useful managerial
prescriptions for strategy, by definition, we are assuming that managers are not the
prisoners of fate.
1
Barney, Jay, B. (1986) Strategic Factor Markets: Expectations, Luck and Business
Strategy. Management Science 32(10), 1231-1241
Instructor Manual
Introduction
The major goal of this first class in Strategy is to convey an appreciation of what strategy is,
by introducing students to a range of different perspectives and to some of the key debates
in this field of study.
The principal themes that we emphasise are:
The contribution of strategy to the success of individuals and organizations
The origins and lineage of strategy - the ways in which ideas about ‘strategy’ have
developed over time
Key questions and debates in strategy which include:
o What is strategy?
o What role does strategy play in business organisations?
o How can we describe and identify a firm’s strategy?
o What role does strategy perform?
o Whose interests does strategy serve?
Lecture/Instructor-led activity
There are a number of different ways of introducing strategy but the main aim is to get
students engaged and reflecting critically on the material from the start. We outline two
approaches that seem to work well. Which one is adopted depends to a large extent on the
nature and size of the student group as well as the tutor’s individual preference. The first
approach is to start the session by asking students to write down what they understand by
the term ‘strategy’ i.e. how they interpret the term in everyday speech. They are then asked
to work in pairs or small groups comparing their different statements. The instructor invites
selected groups to share their thoughts with the whole class and builds up a list of key terms
associated with ‘strategy’. Students tend to think define strategy in terms of plans, routes to
achieving goals, competitive tactics and so on. Distilling points of similarity and difference
between different students’ commonsense understandings leads nicely into a discussion of
the history of strategy and the way different perspectives on strategy have emerged over
time. It also highlights the fact that there is no universally agreed definition of strategy and
that the perspective or definition that you adopt shapes the questions you ask and the role
,you think strategy plays within business organisations. This acts as a logical bridge to the
next step of the session that looks more systematically at different definitions of strategy
and the role that strategy plays within organisations.
An alternative starting point which tends to work well with large groups of undergraduates
in a lecture setting is to start with images (or video clips) of successful individuals – in the
text we focus on Lady Gaga, James Dyson and Alex Ferguson. The instructor invites members
of the audience to identify these individuals, say something about what they do and why
they think the instructor has chosen them as examples of successful individuals. The
instructor then asks the audience to consider whether these individuals, despite their
obvious differences, have anything in common. This leads to a discussion of the role that
strategy plays in success and some of the key characteristics of strategy.
Having, hopefully, captured the student’s attention, the session proceeds by posing some
fundamental questions, in particular
1. What is strategy?
2. What role does strategy play in business organisations
3. How can we describe strategy?
4. How can we identify strategy?
5. Whose interests are/should be prioritised?
It is worthwhile spending a little time on questions 3 and 4 particularly if, at a later stage in
the course, students are asked to undertake assignment work that requires them to gather
information of selected companies. Many students find the notion of ‘strategy’ hard to get
to grips with initially so the more concrete examples that can be given at the start, the
better. Concluding the first session by connecting ‘strategy’ to topical debate about
shareholder capitalism and corporate social responsibility alerts students to the currency
and importance of the subject matter to which they will be introduced in subsequent
sessions. It also creates the opportunity for the instructor to provide a road map for
subsequent classes and to explain how themes introduced in this first session are
subsequently picked up and developed in more detail. At the end of the class the instructor
might ask students to reflect on their own goals and strategies for success, particularly given
the rather turbulent economic conditions most economies have faced in recent years.
Tutorial/Student-led activity
,The mini-case that accompanies this session is ‘King of Shaves’. It goes without saying that it
is a good idea to get students to read the mini-case in advance but in one of the video clips
accompanying this chapter Will King, the founder of King of Shaves talks about his business
and reinforces some of the information contained within the case. King of Shaves was
chosen as an introductory case, even though some students may be unfamiliar with the
brand, because the product is easily understood and the industry context, where a small
start-up enters an industry dominated by two multi-national players, is one that appeals to
students.
The main aim of the case session is to draw out issues of business success, giving
consideration to goals and values, the industry environment and organizational resources.
The case allows the instructor to draw out both analytical aspects of strategy and also
human and processual ones and invites us to pose the question ‘did Will King have a
strategy?’ Suggested answers to the case questions are provided in the teaching and
learning materials for this chapter.
Instructors that like to give students a more substantial case at the start of their programme
may prefer to use the Madonna case which is available as part of the on-line materials
accompanying this text. The Madonna case focuses on much the same issues as the King of
Shaves case and examines Madonna’s continuing success over three decades. Case
questions and suggested answers accompany are available on the web site.
Teaching Note and Suggested Answers to the King of Shaves case questions
At the start of the course it is good for students to get to know each other by working in
small groups. The instructor can either assign individuals to groups or allow them to self-
select. Students discuss the case questions within their work groups and then engage in a
general class discussion, with groups taking it in turns to lead the initial discussion.
How would you account for Will King’s success in building the King of Shaves business?
, An obvious place to start is with a discussion of what constitutes success. Is success about
profits, market share, survival, personal fulfilment or other factors?
Students usually offer a variety of reasons why King of Shave has been successful despite its
unpromising starting position. These can be grouped under the four headings used in
Chapter 1 Figure 1.1.
Clear, consistent long-term goals (King sets himself clear targets and establishes milestones;
has had the long term aim of making King of Shaves a global, million dollar brand; has a
sense of purpose and vision that is not wholly based on profit)
Profound understanding of the business environment (King developed the product because
of his own frustration with existing products so had a appreciation of his target customers;
he recognised the overarching importance of access to retail distribution; he critically
appraised his competitors product portfolios and market positions)
Appreciation of own resources and capabilities (bootstrap financing; recognising and
overcoming the problems with packaging; using viral and social media to market the
product)
Effective implementation (active engagement with customers through blogs and social
media; a step by step approach to product and market expansion; building a trusted team)
What role do you think luck played in Will King’s success?
Some students will see King as having a number of ‘lucky breaks’ including:
His chance discovery of the soothing properties of essential oils for shaving
Meeting Hiten Dayal, who subsequently becomes a close business partner
Getting Harrods to stock his product on an initial trial basis
Others will argue that he created his own luck by recognising and seizing opportunities when
they presented themselves and by being tenacious in his pursuit of investors, suitable
suppliers and retail distributors. Instructors may wish to draw students’ attention to Barney’s
famous comment1 that any competitive advantage that does not arise from ‘special insights
into the future value of strategies’ must instead be a ‘manifestation of a firm’s good fortune
or luck’. The problem, of course, for strategists is that linkages between strategy and
performance are identified after the fact and it is difficult to establish whether the
relationship between these variables is causal. If we seek to offer useful managerial
prescriptions for strategy, by definition, we are assuming that managers are not the
prisoners of fate.
1
Barney, Jay, B. (1986) Strategic Factor Markets: Expectations, Luck and Business
Strategy. Management Science 32(10), 1231-1241
