Solution Manual for Exploring Strategy Text And Cases
12th Edition by Whittington
strategy - ANSWER: is the long-term direction of an organisation
the three-horizons framework - ANSWER: suggests
organisations should think of themselves as comprising three types of business or
activity,
defined by their 'horizons' in terms of years.
*Horizon 1:*
businesses are basically the current
core activities.
businesses need defending and extending, but the
expectation is that in the long term they will likely be flat or declining in terms of
profits
*Horizon 2:*
businesses are emerging activities
that should provide new sources of profit.
*Horizon 3:*
possibilities, for which nothing is sure. These are
typically risky research and development (R&D) projects, start-up ventures, test-
market
pilots or similar.
might generate
profits a few years from the present time.
strategic direction - ANSWER: managers and entrepreneurs try to set the direction of
their strategy according to long-term objectives
mission statement - ANSWER: aims to provide employees and stakeholders with
clarity about what the organisation is fundamentally there to do.
'What business are we in?'
vision statement - ANSWER: is concerned with the future the organisation seeks to
create.
'What do we want to achieve?'
,statement of corporate values - ANSWER: communicate the underlying and enduring
core 'principles' that guide an organisation's strategy and define the way that the
organisation should
operate.
objectives - ANSWER: are statements of specific outcomes that are to be achieved.
strategy statements - ANSWER: should have three main themes: the fundamental
goals (mission, vision or objectives) that the organisation seeks; the scope or domain
of the organisation's activities; and the particular advantages or capabilities it has to
deliver all of these.
scope - ANSWER: refers to three dimensions: customers or clients;
geographical location; and extent of internal activities ('vertical integration').
advantage - ANSWER: describes how the organisation will achieve
the objectives it has set for itself in its chosen domain. In competitive environments,
this refers to the competitive advantage
corporate-level strategy - ANSWER: is concerned with the overall scope of an
organisation and how value is added to the constituent businesses of the
organisational whole.
business-level strategy - ANSWER: is about how the individual businesses should
compete in their particular markets (this is often called 'competitive strategy')
functional strategies - ANSWER: are concerned with how the components of an
organisation deliver effectively the corporate- and business-level strategies in terms
of resources, processes and people
strategic position - ANSWER: is concerned with the impact on strategy of the macro-
environment,
the industry environment, the organisation's strategic capability (resources and
competences),
the organisation's stakeholders and the organisation's culture.
macro-environment - ANSWER: consists of broad environmental factors that impact
to a greater or lesser extent many organisations, industries and sectors.
organisations are influenced by political, economic, social, technological, ecological
and legal forces
opportunities and threats
PESTEL analysis - ANSWER: highlights six environmental factors in particular:
,- political
- economic
- social
- technological
- ecological
- legal
-> opportunities & threats
This list underlines that the environment includes not
only the economics of markets, but also nonmarket factors
industry environment - ANSWER: At this level of analysis, competitors, suppliers and
customers present challenges to an organisation.
present opportunities and threats
strategic capability - ANSWER: made up of its resources (e.g. machines and buildings)
and competences (e.g. technical and managerial skills)
strengths and
weaknesses
stakeholders - ANSWER: are those individuals or groups that depend on an
organisation to fulfil their own goals and on whom, in turn, the organisation depends
should define the organization's purpose
how can the organisation be aligned around a common
purpose?
strategic choices - ANSWER: involve the options for strategy in terms of both the
directions in which
strategy might move and the methods by which strategy might be pursued.
business strategy and models - ANSWER: There are strategic choices in terms of how
the organisation seeks to compete at the individual business level.
strategy in action - ANSWER: is about how strategies are formed and how they are
implemented.
strategy performance and evaluation - ANSWER: Managers have to decide whether
existing and forecast
performance is satisfactory and then choose between options that might improve it.
strategy development processes - ANSWER: Strategies are often developed through
formal planning processes. But sometimes the strategies an organisation actually
, pursues are emergent - in other words, accumulated patterns of ad hoc decisions,
bottom-up initiatives and rapid responses to the unanticipated.
strategic position questions - ANSWER: ● What are the macro-environmental
opportunities and threats?
● How can the organisation manage industry forces?
● How are stakeholders aligned to the organisational purpose?
● What resources and capabilities support the strategy?
● How does culture fit the strategy?
strategic choice questions - ANSWER: ● How should business units compete?
● Which businesses to include in a portfolio?
● Where should the organisation compete internationally?
● Is the organisation innovating appropriately?
● Should the organisation buy other companies, ally or go it alone?
strategy in action questions - ANSWER: ● Are strategies suitable, acceptable and
feasible?
● What kind of strategy-making process is needed?
● What are the required organisation structures and systems?
● How should the organisation manage necessary changes?
● Who should do what in the strategy process?
strategy lenses - ANSWER: are ways of looking at strategy issues differently in order
to generate additional insights
the market environment - ANSWER: - consists mainly of suppliers, customers and
competitors
- primarily economic
- compete for resources, revenues and profits
-> pricing and innovation are key strategies here
nonmarket environment - ANSWER: social, political, legal and ecological factors, but
can also be impacted by economic factors.
other businesses, but non-governmental organisations (NGOs),
politicians, government departments, regulators, political activists, campaign groups
and the media
-> reputation, connections, influence and legitimacy
-> lobbying, public relations, networking and collaboration
are key strategies
political risk analysis - ANSWER: the analysis of threats and opportunities arising
from potential political change
12th Edition by Whittington
strategy - ANSWER: is the long-term direction of an organisation
the three-horizons framework - ANSWER: suggests
organisations should think of themselves as comprising three types of business or
activity,
defined by their 'horizons' in terms of years.
*Horizon 1:*
businesses are basically the current
core activities.
businesses need defending and extending, but the
expectation is that in the long term they will likely be flat or declining in terms of
profits
*Horizon 2:*
businesses are emerging activities
that should provide new sources of profit.
*Horizon 3:*
possibilities, for which nothing is sure. These are
typically risky research and development (R&D) projects, start-up ventures, test-
market
pilots or similar.
might generate
profits a few years from the present time.
strategic direction - ANSWER: managers and entrepreneurs try to set the direction of
their strategy according to long-term objectives
mission statement - ANSWER: aims to provide employees and stakeholders with
clarity about what the organisation is fundamentally there to do.
'What business are we in?'
vision statement - ANSWER: is concerned with the future the organisation seeks to
create.
'What do we want to achieve?'
,statement of corporate values - ANSWER: communicate the underlying and enduring
core 'principles' that guide an organisation's strategy and define the way that the
organisation should
operate.
objectives - ANSWER: are statements of specific outcomes that are to be achieved.
strategy statements - ANSWER: should have three main themes: the fundamental
goals (mission, vision or objectives) that the organisation seeks; the scope or domain
of the organisation's activities; and the particular advantages or capabilities it has to
deliver all of these.
scope - ANSWER: refers to three dimensions: customers or clients;
geographical location; and extent of internal activities ('vertical integration').
advantage - ANSWER: describes how the organisation will achieve
the objectives it has set for itself in its chosen domain. In competitive environments,
this refers to the competitive advantage
corporate-level strategy - ANSWER: is concerned with the overall scope of an
organisation and how value is added to the constituent businesses of the
organisational whole.
business-level strategy - ANSWER: is about how the individual businesses should
compete in their particular markets (this is often called 'competitive strategy')
functional strategies - ANSWER: are concerned with how the components of an
organisation deliver effectively the corporate- and business-level strategies in terms
of resources, processes and people
strategic position - ANSWER: is concerned with the impact on strategy of the macro-
environment,
the industry environment, the organisation's strategic capability (resources and
competences),
the organisation's stakeholders and the organisation's culture.
macro-environment - ANSWER: consists of broad environmental factors that impact
to a greater or lesser extent many organisations, industries and sectors.
organisations are influenced by political, economic, social, technological, ecological
and legal forces
opportunities and threats
PESTEL analysis - ANSWER: highlights six environmental factors in particular:
,- political
- economic
- social
- technological
- ecological
- legal
-> opportunities & threats
This list underlines that the environment includes not
only the economics of markets, but also nonmarket factors
industry environment - ANSWER: At this level of analysis, competitors, suppliers and
customers present challenges to an organisation.
present opportunities and threats
strategic capability - ANSWER: made up of its resources (e.g. machines and buildings)
and competences (e.g. technical and managerial skills)
strengths and
weaknesses
stakeholders - ANSWER: are those individuals or groups that depend on an
organisation to fulfil their own goals and on whom, in turn, the organisation depends
should define the organization's purpose
how can the organisation be aligned around a common
purpose?
strategic choices - ANSWER: involve the options for strategy in terms of both the
directions in which
strategy might move and the methods by which strategy might be pursued.
business strategy and models - ANSWER: There are strategic choices in terms of how
the organisation seeks to compete at the individual business level.
strategy in action - ANSWER: is about how strategies are formed and how they are
implemented.
strategy performance and evaluation - ANSWER: Managers have to decide whether
existing and forecast
performance is satisfactory and then choose between options that might improve it.
strategy development processes - ANSWER: Strategies are often developed through
formal planning processes. But sometimes the strategies an organisation actually
, pursues are emergent - in other words, accumulated patterns of ad hoc decisions,
bottom-up initiatives and rapid responses to the unanticipated.
strategic position questions - ANSWER: ● What are the macro-environmental
opportunities and threats?
● How can the organisation manage industry forces?
● How are stakeholders aligned to the organisational purpose?
● What resources and capabilities support the strategy?
● How does culture fit the strategy?
strategic choice questions - ANSWER: ● How should business units compete?
● Which businesses to include in a portfolio?
● Where should the organisation compete internationally?
● Is the organisation innovating appropriately?
● Should the organisation buy other companies, ally or go it alone?
strategy in action questions - ANSWER: ● Are strategies suitable, acceptable and
feasible?
● What kind of strategy-making process is needed?
● What are the required organisation structures and systems?
● How should the organisation manage necessary changes?
● Who should do what in the strategy process?
strategy lenses - ANSWER: are ways of looking at strategy issues differently in order
to generate additional insights
the market environment - ANSWER: - consists mainly of suppliers, customers and
competitors
- primarily economic
- compete for resources, revenues and profits
-> pricing and innovation are key strategies here
nonmarket environment - ANSWER: social, political, legal and ecological factors, but
can also be impacted by economic factors.
other businesses, but non-governmental organisations (NGOs),
politicians, government departments, regulators, political activists, campaign groups
and the media
-> reputation, connections, influence and legitimacy
-> lobbying, public relations, networking and collaboration
are key strategies
political risk analysis - ANSWER: the analysis of threats and opportunities arising
from potential political change
