instructor manual foundations of strategy 1st_canadian edition

Instructor Manual for v v v




Foundations of Strateg v v




y, 1st Canadian Edition
v v v




, 1e Robert Grant, Judit
v v v v




h Jordan, Phil Walsh (
v v v v




All Chapters) v

, Chapter 1 v




THE CONCEPT OF STRATEGY
v v v




INTRODUCTION
Thevmajorvgoalvofvthisvfirstvclassvinvstrategyvisvtovconveyvanvappreciationvofvwhatvstrategyvis,vb
yvintroducingvstudentsvtovavrangevofvdifferentvperspectivesvandvtovsomevofvthevkeyvdebatesvinvt
hisvfieldvofvstudy.

Thevprincipalvthemesvthatvwevemphasisevare:
 Thevcontributionvofvstrategyvtovthevsuccessvofvindividualsvandvorganizations;
 Thevoriginsvandvlineagevofvstrategyv–
vthev waysv inv whichv ideasvaboutv ‘strategy’v havevdevelopedv overvtime;

 Keyvquestionsvandvdebatesvinvstrategyvwhichvinclude:
 Whatvisvstrategy?
 Howvdovwevdescribevavfirm’svstrategy?
 Howvdovwevidentifyvavfirm’svstrategy?
 Howvisvstrategyvmade?vDesignvversusvemergence
 Whatvrolesvdoesvstrategyvperform?
 Strategy:vinvwhosevinterest?vShareholdersvversusvstakeholders
 Strategy:vwhosevinterestsvshouldvbevprioritized?
 Profitvandvpurpose;
 Thevdebatevovervcorporatevsocialvresponsibility;
 Strategicvmanagementvofvnot-for-profitvorganizations.


LECTURE/INSTRUCTOR-LED ACTIVITY v




Therevarevavnumbervofvdifferentvwaysvofvintroducingvstrategyvbutvthevmainvaimvisvtovgetvstudent
svengagedvandvreflectingvcriticallyvonvthevmaterialvfromvthevstart.vWevoutlinevtwovapproachesvth
atvseemvtovworkvwell.vWhichvonevisvadoptedvdependsvtovavlargevextentvonvthevnaturevandvsizevo
fvthevstudentvgroupvasvwellvasvthevinstructor’svindividualvpreference.vThevfirstvapproachvisvtovsta
rtvthevsessionvbyvaskingvstudentsvtovwritevdownvwhatvtheyvunderstandvbyvthevtermv‘strategy’vi.e
.,vhowvtheyvinterpretvthevtermvinveverydayvspeech.vTheyvarevthenvaskedvtovworkvinvpairsvorvsma
llvgroupsvcomparingvtheirvdifferentvstatements.vThevinstructorvinvitesvselectedvgroupsvtovsharev
theirvthoughtsvwithvthev wholev classvandvbuildsv upvavlistvofvkeyvtermsvassociatedvwithv‘strategy’.v
Studentsvtendvtovdefinevstrategyvinvtermsvofvplans,vroutesvtovachievingvgoals,vcompetitivevtactic
s,vandvsovon.vDistillingvpointsvofvsimilarityvandvdifferencevbetweenvdifferentvstudents’vcommons
ensevunderstandingsvleadsvnicelyvintovavdiscussionvofvthevhistoryvofvstrategyvandvthevwayvdiffer
entvperspectivesvonvstrategyvhavevemergedvovervtime.vItvalsovhighlightsvthevfactvthatvtherevisvn
ovuniversallyvagreedvdefinitionvofvstrategyvandvthatvthevperspectivevorvdefinitionvthatvyouvadoptv
shapesvthevquestionsvyouvaskvandvthevrolevyouvthinkvstrategyvplaysvwithinvbusinessvorganizati
ons.vThisvactsvasvavlogicalvbridgevtovthevnextvstepvofvthevsessionvthatvlooksvmorevsystematically
vatvdifferentvdefinitionsvofv
strategyvandvthevrolevthatvstrategyvplaysvwithinvorganizations.

Anvalternativevstartingvpointvwhichvtendsvtovworkvwellvwithvlargevgroupsvofvundergraduatesvinvav
lecturevsettingvisvtovstartvwithvavdiscussionvofvwhatvstudentsvhadvhopedvtovachievevbyvcompleti
ngvtheirvstudies;vwhenvtheyvfirstvbeganvattendingvuniversityvwhatvdidvtheyvhopevtovspecializevin
?vThisvisvfollowedvbyvavdiscussionvofvanyvchangesvinvtheirvareavofvinterestvorvspecialization.vPe
rhapsvavstudentvhadventeredvschoolvwithvgoalvofvbecomingvanvaccountant.




Copyrightv©v2015vJohnvWileyv&vSonsvCanada,vLtd.vUnauthorizedvcopying,vdistribution,vorvtransmissionvofvthisvpagevisvprohibite

,1v-v6 Instructor’svManualvforvFoundationsvofvStrategy,vCanadianvEdition


Then,vaftervavfewvcoursesvinvaccounting,vthevstudentvchangedvtheirvgoalvtovbecomevavfinancevm
ajor.vThevinstructorvcanvthenvleadvavdiscussionvofvstrategyvversusvtactics.vInitially,vthev“strategy
”,vthevlongvtermvgoal,vwasvtovgetvavdegreevinvAccounting.vThevtacticsvwerevtovtakevavnumbervofv
accountingvcoursesv eachv yearvleadingvtovanvAccountingvdegree.vWhenvthevstudentvchangedvt
heirvmindvtovbecomevavfinancevmajor,vthevstrategyvwasvsimilarvwithvregardsvtovobtainingvavdegr
eevbutvinvavdifferentvareavofvspecialization.vThevtacticsvchangedvasvavdifferentvsetvofvcoursesvw
erevrequiredvtovachievevthevobjective.vIfvavformervstudentvtheyvknewvdroppedvoutvofvschool,vthat
vstudentvabandonedvtheirvinitialv strategyv invitsventiretyv tovpursuevothervoptions.




Thisvleadsvtovavdiscussionvofvthevrolevthatvstrategyvplaysvinvsuccessvandvsomevofvthevkeyvc
haracteristicsvofvstrategy.

Having,vhopefully,vcapturedvthevstudent’svattention,vthevsessionvproceedsvbyvposingvsomevf
undamentalvquestions,vinvparticular:
1. Howvdoesvstrategyvcontributevtovthevsuccessvofvindividualsvandvorganizations?
2. Whatvisvstrategy?
3. Howvdovwevdescribevavfirm’svstrategy?
4. Howvdovwevidentifyvavfirm’svstrategy?
5. Whatvrolesvdoesvstrategyvperform?
6. Strategy:vwhosevinterestsvshouldvbevprioritized?
7. Thevdebatevovervcorporatevsocialvresponsibility;
8. Strategicvmanagementvofvnot-for-profitvorganizations.

Itvisvworthwhilevspendingvavlittlevtimevonvquestionsv3vandv4vparticularlyvif,vatvavlatervstagevinvthev
course,vstudentsvarevaskedvtovundertakevassignmentvworkvthatvrequiresvthemvtovgathervinform
ationvofvselectedvcompanies.vManyvstudentsvfindvthevnotionvofv‘strategy’vhardvtovgetvtovgripsvwit
hvinitially,vsovthevmorevconcretevexamplesvthatvcanvbevgivenvatvthevstart,vthevbetter.vConcludin
gvthevfirstvsessionvbyvconnectingv‘strategy’vtovtopicalvdebatevaboutvshareholdervcapitalismvandv
corporatevsocialvresponsibilityvalertsvstudentsvtovthevcurrencyvandvimportancevofvthevsubjectvm
attervtovwhichvtheyvwillvbevintroducedvinvsubsequentvsessions.vItvalsovcreatesvthevopportunityvfo
rvthevinstructorvtovprovidevavroadvmapvforvsubsequentvclassesvandvtovexplainvhowvthemesvintro
ducedvinvthisvfirstvsessionvarevsubsequentlyvpickedvupvandvdevelopedvinvmorevdetail.vAtvtheven
dvofvthevclassvthevinstructorvmightvaskvstudentsvtovreflectvonvtheirvownvgoalsvandvstrategiesvforv
success,vparticularlyvgivenvthevrathervturbulentveconomicvconditionsvmostveconomiesvhavevfa
cedvinvrecentvyears.


TUTORIAL/STUDENT-LED ACTIVITY v




TeachingvNotes

Atvthevstartvofvthevcoursevitvisvgoodvforvstudentsvtovgetvtovknowveachvothervbyvworkingvinvsmallvgr
oups.vThevinstructorvcanveithervassignvindividualsvtovgroupsvorvallowvthemvtovself-select.
Studentsvdiscussvthevquestionsvwithinvtheirvworkvgroupsvandvthenvengagevinvavgeneralvclassvdi
scussion,vwithvgroupsvtakingvitv invturnsvtovleadvthevinitialvdiscussion.

ThevfollowingvarevavselectionvofvgroupvactivitiesvandvquestionsvthatvcanvbevdiscussedvusingvC
hapterv1vPowervPointvslidesvasvavbasis:




Copyrightv©v2015vJohnvWileyv&vSonsvCanada,vLtd.vUnauthorizedvcopying,v distribution,vorvtransmissionvofvthisvpagevisvprohibite

, 1v-v6 Instructor’svManualvforvFoundationsvofvStrategy,vCanadianvEdition


PPTvSlidev5
“WevmustvlearnvhowvtovbevthevCEOvofvourvownvcareers.”i
• Successvhasvgonevtovthosevwhovmanagedvtheirvcareersvmostveffectively—
typicallyvbyvcombiningvthevfourvstrategicvfactors:
1. goalsvthatvarevsimple,vconsistent,vandvlongvterm;
2. avprofoundvunderstandingvofvthevcompetitivevenvironment;
3. objectivevappraisalvofvresources;vand
4. effectivevimplementation.

Activity
Invgroupsvofvaboutv4vstudents,vhavevthemvdiscussvwhethervorvnotvtheyvthinkvitvisvimportantvforvth
emvtovplanvforvtheirvfuture,vorvsimplyvallowvrandomnessvtovchartv theirvlife.

Havevstudentsvdiscussvhowvthevfourvstrategicvfactorsvwillvhelpvthemvplanvforvtheirvfuture.

Avquestionvyouvmightvaskvisvwhatvconstitutesvsuccess?vIsvsuccessvaboutvprofits,vmarketvs
hare,vsurvival,v personalvfulfilment,vorvothervfactors?


PPTvSlidev7
Strategicvdecisionsvsharevthreevcommonvcharacteristics:
1. Theyvarevimportant.
2. Theyvinvolvevavsignificantvcommitmentvofvresources.
3. Theyvarevnotveasilyvreversible.

Activity
Havevthevstudentsvapplyvthesevconceptsvtovtheirvdecisionvtovpursuevavsecondaryveducation:
 Theyvarevimportantv–vthevtimevcommitmentvovervavperiodvofvyears;
 Theyvinvolvevavsignificantvcommitmentvofvresourcesv–
vthevdirectvcostvandvthevopportunityvcostvtovattendvschool;

 Theyvarevnotveasilyvreversiblev –vthevconsequencesvofvdroppingvoutvofvschool.


PPTvSlidev13
Howvdovwevidentifyvavfirm’svstrategy?–vavhierarchyvofvstrategyvstatements.
 Thevmissionvstatementvisvthevbasicvstatementvofvorganizationalvpurpose;vitvaddressesv“
Whyvwevexist.”
 Avstatementvofvprinciplesvorvvaluesvoutlinesv“Whatvwevbelievevinvandvhowvwevwillvb
ehave.”
 Thevvisionvstatementvprojectsv“Whatvwevwantvtovbe.”
 Thevstrategyvstatementvarticulatesv“Whatvourvcompetitivevgamevplanvwillvbe.”

Activity
Alonevorvinvavgroup,vhavevthevstudentsvapplyvthesevfourvstrategyvstatementsvtovtheirvpersonalvg
oalsv–vacademicvorvlatervinvlife.


PPTvSlidev16
Whatvrolesvdoesvstrategyvperform?
Thisvslidevisvusefulvtovconsolidatevthevconceptvthatvstrategyvisvequallyvusefulvtovindividualsvand
vtovcorporations,vprovidingvavframeworkvtovevaluatevthevcurrentvsituationv asvwellv asvguidevdecis

ionsvrelatingvtovthevfuture.




Copyrightv©v2015vJohnvWileyv&vSonsvCanada,vLtd.vUnauthorizedvcopying,v distribution,vorvtransmissionvofvthisvpagevisvprohibite