International Business Administration year 2 - Jynthe Beijer
(all chapters and articles are included, except Chapter 11 and its enclosed readings. The readings are
adapted versions of articles/books that are used in this book only. )
Chapter 1: Introduction
This book does not present us with a clear cut definition of what strategy is, and how scholars think
about strategy. Instead, they present us with different kinds of ideas and thoughts about strategy. The
first point they make is that there are two different ways of looking at strategy. The first way is tools-
driven, which considers all different theories and ideas separately, and later makes a combination of
these theories to use in practice. The second way is problem-driven, where the most important issues
for strategy are approached first, and later on looked at from the different theoretical perspectives.
The book discusses 11 key issues in the later chapters. The first two chapters deal with strategizing
and missioning & visioning.
The go on with identifying the three dimensions of strategy:
- strategy content, which is the combination of decisions and choices that is aimed at a future
desirable state of the organization. the “what” of the strategy.
- strategy process, which is the way the strategy takes place. Is considered with the “how, who and
when” of the strategy.
- strategy context, which is the external conditions that influence the content and the process of the
strategy. Is the “where” of the strategy.
These three dimensions are interrelated and interact with each other.
The strategy content can be at different levels in an organization. the most used distinction is between
functional level (strategy for specific functional aspects), business level (combination of the strategy
for the functional level for a specific set of products/services for specific groups of customers) and
corporate level (strategy that is aimed at aligning different business level strategies, particularly when
a company operates in two or more businesses).
Above these levels of strategy, there is the network level strategy, where organizations cluster together
with other organizations and define a strategy.
With regards to the strategic process, some scholars state that it is linear (strategy analysis stage,
strategy formulation stage and strategy implementation stage), however this is heavily criticized by
other scholars, who state that the strategy process is a more organic process that organization develop
when they encounter different options. Another topic in the strategy process is whether the overall
organizational strategy can be changed in a drastic, overall way or that it is a more gradual change
throughout the organization.
In the topic of strategy context, the agreement is on that the context is almost always unique for every
organization, and that there has to be some kind of fit between the context, process and the content of
the strategy. The discussion here is in the details of this kind of alignment. There are two distinctions
made in the book with regards to the context, the first being between the industry context and the
organizational context, and the second being between the domestic context and the international
context.
In the debates about strategy, this book takes the approach that in each section of strategy (e.g.
strategizing), there is a fundamental tension between two tensions (e.g. logic vs. intuition). Moreover,
the book presents us with two opposing perspectives for each of these topics and corresponding
tensions (e.g. analytic reasoning vs. holistic reasoning). These tensions can be two different kinds of
problems: ‘either/or problems’ or ‘both/and problems’. Either/or problems can be analysed and there
can be made a decisions (e.g. crossword puzzle, dilemma). Both/and problems cannot be analysed and
solved, rather these problems can only be managed. (e.g. trade-offs, paradoxes)
Managing paradoxes is an important topic in this book. For paradoxes, the best possible answer can
never be found, they will always cope with uncertainty and disagreement. According to the book,
managers can handle paradoxes in 6 different ways:
- navigating: managers focus on one of the opposing elements at the time.