1. © 2014, Cengage Learning EMEA, ISBN 97814082683
Chapter 1 Introduction
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© 2014, Cengage Learning EMEA, ISBN

2. © 2014, Cengage Learning EMEA, ISBN 97814082683
Contents
The nature of strategy
Identifying the strategy issues
Structuring the strategy debates
Managing strategy paradoxes
Developing an international perspective
Readings and Case 1
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

3. © 2014, Cengage Learning EMEA, ISBN 97814082683
Introduction
As conflict – difference – is here in the world, as we cannot avoid it, we should, I think, use it.
Mary Parker Follett (1968–1933), American social worker, management consultant and pioneer in organizational theory and organizational behaviour
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4. © 2014, Cengage Learning EMEA, ISBN 97814082683
The nature of strategy
There is no widespread agreement about what strategy is
There is no common definition of the term ‘strategy’
Understanding of the topic can only be gained by examining the diversity of insights and acknowledging that there is no simple answer to the question of what strategy is
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5. Identifying the Strategy Issues
If the only tool you have is a hammer, you treat everything like a nail.
Abraham Maslow (1908–1970), American psychologist
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6. Identifying the Strategy Issues
Two ways of viewing strategic questions:
Tools-driven
Problem-driven
Problem-driven approach used. Key strategy issues are identified and examined from the perspective of the most appropriate theories.
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

7. Identifying the Strategy Issues
Strategizing = Cognitive processes of individual strategists
Missioning and visioning = purpose as the impetus for strategy activities
Strategy content = combined decisions and choices that lead a company into the future
Strategy process = the manner in which strategies come about
Strategy context = set of circumstances under which the strategy content and the strategy process are determined
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

8. Identifying the Strategy Issues
Dimensions of strategy and the organizational purpose
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

9. Identifying the Strategy Issues
Levels of strategy
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

10. Identifying the Strategy Issues
Aspects of the strategy process
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

11. Identifying the Strategy Issues
Aspects of the strategy context
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
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12. Structuring the strategy debates
Where there is much desire to learn, there of necessity will be much arguing, much writing, many opinions; for opinion in good men is but knowledge in the making.
John Milton (1608–1674), English poet
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13. Structuring the strategy debates
For every set of strategic issues, there is a fundamental tension between apparent opposites.
Network strategy – competition and cooperation
Industry context – compliance and choice
Challenge of strategic management is to wrestle with these tensions.
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

14. Structuring the strategy debates
Chapter topics and strategy tensions
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

15. Structuring the strategy debates
Strategy topics, paradoxes and perspectives
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

16. Structuring the strategy debates
Identifying strategy perspectives
Either/or problems:
Puzzle – a challenging problem with an optimal solution
Dilemma – a vexing problem with two possible solutions
Both/and problems:
Trade-off – a problem in which there are many possible solutions
Paradox – A situation in which two seemingly contradictory factors appear to be true at the same time
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

17. Managing strategy paradoxes
Conflict is latent. Only by profound and meticulous ordering of aims, in advance, can it be prevented from emerging.
Ching, Book of Changes, 3rd to 2nd millennium BC
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

18. Managing strategy paradoxes
Strategy tensions as puzzles, dilemmas, trade-offs and paradoxes
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

19. Managing strategy paradoxes
Managing paradoxes taxonomy
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

20. Managing strategy paradoxes
A paradox has no answer or set of answers
Six different ways of dealing with a paradox
Navigating – focus on one contrary element at a time
Parallel processing – separate the contrary demands in different internal or external organizational units
Balancing – trade off elements of the opposing demands
Juxtaposing – manage opposite demands
Resolving – develop a new synthesis between competing demands
Embracing – embrace and actively use the
tension as a source of creativity and
opportunity
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© 2014, Cengage Learning EMEA, ISBN

21. Structuring the strategy debates
In the book strategy tensions will be presented as strategy paradoxes. The two opposite positions challenge the reader to search for an appropriate option to manage the two tensions.
Advantages of this approach:
Range of ideas
Points of contention
Stimulus for bridging
Stimulus for creativity
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

22. Managing strategy paradoxes
Strategy synthesis
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
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23. Developing an international perspective
Every man takes the limits of his own field of vision for the limits of the world.
Arthur Schopenhauer (1788–1860), German philosopher
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© 2014, Cengage Learning EMEA, ISBN

24. Developing an international perspective
Important to question whether theories ‘travel’
Try to employ the strategy perspectives in a variety of national settings
Read carefully Exhibit 1.1 Disney: Is magic back in the mouse house?
Only to be used with Strategy : An International Perspective 5th edn by Bob de Wit
© 2014, Cengage Learning EMEA, ISBN

25. © 2014, Cengage Learning EMEA, ISBN 97814082683
Readings and Case 1
‘Complexity: The nature of real world problems’, from Chapter 1, R Mason and I Mitroff, Challenging Strategic Planning Assumptions
‘Managing strategic contradictions’ Wendy K Smith and Michael L Tushman, ‘Managing Strategic Contradictions’ Organization Science, Vol. 16(5)
‘Cultural constraints in management theories’, Geert Hofstede, from G Hofstede, ‘Cultural Constraints in Management Theories’, Academy of Management Executive, Vol. 7(1)
Case 1: ‘ZARA: Staying fast and fresh’,
Felipe Caro
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© 2014, Cengage Learning EMEA, ISBN