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
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
