Undergraduate

Department of Management

Study Guide
Semester 1 2011

MGC2110
Principles of Strategic Management

Dr Linda McGuire
Unit Coordinator
Clayton Campus
Contents

PAGE
Unit Coordinator and Lecturer 3
Class Times 3
Unit Synopsis 3
Assessment Summary 4
Assignment 1 Essay 4
Assignment 2 Debates 6
Examination 8
Lecture Schedule 9
Tutorial Schedule 10
Reading 11
Week 1 12
Week 2 13
Week 3 15
Week 4 16
Week 5 17
Week 6 18
Week 7 19
Week 8 20
Week 9 21
Week 10 22
Week 11 23
Week 12 24

MGC2110 Strategic Management Study Guide 2011 2

Unit Coordinator and Lecturer
Dr Linda McGuire
Room: 479 Menzies Building
Phone: 9905 5177
Email: linda.mcguire@buseco.monash.edu.au

Class Times
Students are required to attend the lecture (two hours) and a tutorial (one hour) each week. In
addition to classes, students are expected to spend 8 hours each week in private study, preparing
for tutorials and completing assignments.

Lecture: Wednesday 9-11 AM Rotunda Building Theatre R4

Tutorials: Wednesday 11 AM Menzies Building E453

Wednesday 2 PM Menzies Building W210

Allocate+ is a reservation system.

Students must attend the first tutorial to confirm their place, or contact the
Linda McGuire before the tutorial.

Unit synopsis
This unit examines the management of enterprises from a strategic rather than an organisational
or functional perspective. Strategy links activities to performance. The focus of study is the
content, processes, context and purpose of strategic decisions and actions. In contrast to
organisation theory, which studies the problem of how firms organise, strategic management
studies why firms organise. The central question, of interest to academics and practitioners, is
why some enterprises are more successful than others.

Strategic management is a social science. Our knowledge and understanding of strategic

management is derived from theory and practice. Theories about strategy are a mixture of
description and prescription. Descriptive theories explain the relationship between strategy and
performance based on observation of particular events. Prescriptive or normative theories set out
how strategic decisions should be made and what factors should be considered. Practice is
observed through survey research, systematic case studies and reports in the business press.

However, strategy concepts are ambiguous. Academics, consultants and practitioners disagree
about how strategic management works in theory and in practice. These disagreements are
reflected in debates about research findings reported in academic journals, and in debates about
what works in practice in practitioner oriented journals and the business press. These debates
reflect different perspectives on management that lead to different analytical frameworks and
prescriptions about what organisations should do to sustain and improve performance.

This unit examines these arguments by looking at ten key strategic issues identified by De Wit &
Meyer (2010). The debates introduce students to the practical implications of different
perspectives on strategy. The objective is to develop students’ skills in critical thinking about the
application of strategic management principles. MGC3110 requires students to apply these skills
to strategic problem solving in cases.

MGC2110 Strategic Management Study Guide 2011 3

Assessment Summary

Assessment Task Due Date Value

Essay 9 AM Wednesday 23 March 2011 20%
1500 words (Week 4)
Debate 1 Week 7/8/9 10%
Group Assessment
Debate 2 Week 10/11/12 10%
Group Assessment
Final Examination Official Examination Period 60%
180 minutes closed book

Total 100%

Assignment 1 Essay

Topic: Explain the concept of a social paradox and discuss the practical relevance for strategic
management.

The recommended reading for Topics 1 and 2 and the tutorial questions in Week 2 are relevant
for this assignment. Students are required to retain a copy of all assignments until results are
finalised. Further instructions on this assignment will be provided in the lectures and tutorials.

Criteria for assessment:

Essays will be assessed on the following criteria:
1. Definition of concepts and issues
2. Clear structure based on logical arguments and evidence
3. Ability to evaluate and draw a conclusion
4. Credibility and relevance of references to the topic
5. Readability

Submission details:
A hard copy of the essay should be submitted to Dr McGuire at the beginning of the lecture.
Electronic lodgement will require written permission from Dr McGuire. Late assignments should
be posted in the mail box of Dr McGuire will be recorded as received on the date the box is
cleared.

Return of marks:
Assignments will be returned to students in the lecture or tutorial.

Penalties for late lodgment:

A maximum penalty of 10% of the mark allocated to this assessment task will be deducted
for each day that the assessment is late.

Assessment coversheet:
Work submitted for assessment must be accompanied by a completed copy of the Assessment
Cover sheet.

MGC2110 Strategic Management Study Guide 2011 4

MGC2110 Essay Evaluation 2011

Name___________________________________________________

Grade __________________________________________________

Topic: Strategy Paradoxes

Explain the concept of a social paradox and discuss the practical relevance for strategic
management.
.

Grade N P C D HD
Less than 50% 50-59% 60-69% 70-79% 80%+
Criteria Fails to satisfy Largely More Good critical Excellent
minimum descriptive description evaluation critical
requirements than critical skills evaluation
evaluation skills
Definition of Little evidence Issues not Issues identified Good survey of Comprehensive
concepts and of clearly but not clearly relevant issues survey of
issues understanding identified linked to topic relevant issues
of the topic
Clear structure Narrow in Summary rather Some analysis Good use of Excellent use of
conception than analysis of of arguments arguments and arguments and
arguments and and evidence evidence to evidence to
evidence in the but not clearly evaluate issues evaluate issues
readings linked to issues identified identified
identified
Conclusions No evidence of Conclusion not Some evidence Demonstrates Demonstrates
evaluation skills supported by evaluation skills good evaluation excellent
evaluation of skills evaluation skills
topic
References No evidence of Limited Satisfactory Good selection Comprehensive
relevant reading selection that selection of of relevant selection of
on the topic does not include relevant reading reading relevant reading
some relevant but not always effectively used very effectively
reading on the used to support to support used to support
topic arguments analysis analysis
Readability Inadequate Adequate Good Very Good Excellent

Presentation Inadequate Adequate Good Very Good Excellent

MGC2110 Strategic Management Study Guide 2011 5

Assignment 2 Debates
Group task
Teams will be marked with a grade only.

Students are required to participate in two debates and will be assessed on group performance.
Debating teams and allocation of topics will be decided in the tutorials. According to the Oxford
Dictionary a debate is “a contention in words”. A debate is also an exercise in public speaking.
The essence of debating is active argument, not just the statement of two different points of view.
In addition to presenting an argument, each team must refute the argument of the opposition
team. The objective of the debates is to develop skills in:
– public speaking - communication by clear and effective expression
– ability to argue logically and persuasively
– using evidence to support an argument
– critique
– team work

Assessment Criteria
The format for the debates and the size of the teams will depend on number of students in each
tutorial. The tutor will chair the debates and assess the teams based on three criteria:
– matter 60%
– method 20%
– manner 20%

The debates will be assessed by the Tutor and students will receive feedback in class. Each
member of a team will receive the same grade. Teams will be notified of the grade in the
Lectures at the conclusion of each round of debates.

MGC2110 Debate Evaluating Rubric

(Source: http://www.etni.org.il/teachers/jennifer/debating.htm)
SCORE:
0 = not demonstrated
1 = poor
2 = satisfactory
3 = good
4 = excellent

The team was well organised and each speaker performed their role Score
effectively
The speeches were clearly organised
The case line was clear
The case line well supported by clear arguments
The arguments were well supported by clear evidence/examples
The opposing argument’s main point was anticipated by the first speaker
Rebuttal speeches clearly responded to each point made by the opposing
team
Clearly stated summaries were given by the team
Speakers used clear voices and had eye contact with the audience
Total Score

Debates MGC2110 Semester 1 2011 Teams & Topics

MGC2110 Strategic Management Study Guide 2011 6
Week & Topic Team Thesis Perspective
Round 1
7. Business Level Strategy Team 1 Markets Outside-in
Should business strategy be
driven by the market Team 2 Resources Inside-out
adaptation or resource
leveraging?

8. Corporate Level Strategy Team 3 Responsiveness Portfolio

Should strategy in Organisation
diversified firms be driven Team 4 Synergy Integrated
by business responsiveness Organisation
or multi-business synergy?

9. Network Level Strategy Team 5 Cooperation Embedded

Should collaboration Organisation
between firms be tactical or Team 6 Competition Discrete
strategic? Organisation

Round 2
10. Industry Context Team 2 Compliance Industry Dynamics
Do successful firms shape
industry structure or adapt Team 3 Choice Industry Leadership
to industry dynamics?

11. Organisational Context Team 6 Control Organisational

Do successful leaders Leadership
control strategic Team 1 Chaos Organisational
development or facilitate Dynamics
self organisation?

12. International Context Team 4 Global synergy Global Convergence

Is international competitive
advantage driven by global Team 5 Local International
integration or local market responsiveness Diversity
responsiveness?

Recommended Reading
Monash Association of Debaters (MAD), Online Debating Tutorial - Three on Three Debating:
http://home.vicnet.net.au/~madhome/website.htm

ACR Debating Union (ACTDU)About debating and how to get started,

http://www.actdu.org.au/archives/actein_site/aboutd.html

World Debating Website, Debating Tutorial, http://flynn.debating.net/colmmain_tut.htm

MGC2110 Strategic Management Study Guide 2011 7

Assessment 3 Exam
The examination is designed to test your understanding of the practical relevance or application
of the ten strategy paradoxes considered in the unit. For each topic you should be able to identify
the strategic issue, explain the social paradox and discuss the practical implications. This
requires synthesis of both sides of the tutorial debates. Describing the issue and each perspective
is not sufficient. You should be able to explain the tension by comparing and contrasting the
assumptions of each perspective on the particular issue. You are expected to use the readings for
each topic. You should be able to explain how the readings relate to the particular strategy
paradox by comparing and contrasting the arguments, evidence and prescriptions for managing
strategy process, content, context and performance.

The examination will be divided into four sections and you must answer one question from each
section. Each question is worth 15 marks. Your answers must be in a short essay style and not
point form.

Section A Strategy processes (choice of three answer one question)

Topic 3 Strategic thinking
Topic 4 Strategy formation
Topic 5 Strategic change

Section B Strategy content Debates Round 1 (choice of three answer one question)
Topic 6 Business Level strategic
Topic 7 Corporate level strategy
Topic 8 Network level strategy

Section C Strategy context Debates Round 2 (choice of three answer one question)
Topic 10 Industry context
Topic 11 Organisational context
Topic 12 International context

Section D Purpose (no choice compulsory question)

MGC2110 Strategic Management Study Guide 2011 8

Lecture Schedule 2011

Week & Date Topic Required Reading

Part I Strategy Concept
Week 1 Studying Strategic Management
2 March

Week 2 Theory and Practice de Wit & Meyer Chapter 1

9 March

Part II Strategy Process

Week 3 Strategic Thinking de Wit & Meyer Chapter 2
16 March

Week 4 Strategy Formation de Wit & Meyer Chapter 3

23 March

Week 5 Strategic Change de Wit & Meyer

30 March Chapter 4

Part III Strategy Content

Week 6 Business Level Strategy de Wit & Meyer Chapter 5

16 April

Week 7 Corporate Level Strategy de Wit & Meyer Chapter 6

13 April

Week 8 Network Level Strategy de Wit & Meyer Chapter 7

20 April
Part IV Strategy Context

Week 9 Industry Context de Wit & Meyer Chapter 8

4 May

Week 10 Organisational Context de Wit & Meyer Chapter 9

11 May

Week 11 International Context de Wit & Meyer Chapter 10

18 May
Part V Purpose

Week 12 Organisational Purpose de Wit & Meyer Chapter 11

25 May

MGC2110 Strategic Management Study Guide 2011 9

Tutorial Schedule 2011
Week & Date Topic Activity
Week 1 Strategy Strategic Management Debating teams
2 March
Week 2 Strategy paradoxes Class discussion
9 March Topic Assignment

Week 3 Theory and Practice Class discussion

16 March Using classifications

Week 4 Strategic Thinking Class discussion

23 March A-R-E: arguments, reasons &
evidence

Strategy Formation Class discussion

Week 5 Rebuttal
30 March

Week 6 Class discussion

7 April Strategic Change Speakers notes

Week 7 Business Level Strategy Round 1 Team Debate

13 April

Week 8 Corporate Level Strategy Round 1 Team Debate

20 April

Week 9 Network Level Strategy Round 1 Team Debate

4 May

Week 10 Industry Context Round 2 Team Debate

11 May

Week 11 Organisational Context Round 2 Team Debate

18 May

Week 12 International Context Round 2 Team Debate

25 May

MGC2110 Strategic Management Study Guide 2011 10

Reading
The text and recommended reading listed below are available in the reserve collection and on
short loan from the Matheson Library.

Text Book
de Wit, B and Meyer, R (2010) Strategy Synthesis: Resolving Strategy Paradoxes to Create
Competitive Advantage (Text and Readings) Third Edition, Cengage Learning EMEA.

Recommended Reading
Faulkner DO and Campbell A (eds) (2003) Oxford Handbook of Strategy, Oxford, Oxford
University Press.

Kay J (1996) The Business of Economics, Oxford, Oxford University Press. A collection of
essays, newspaper articles and lectures on the application of economics to business.

Micklethwait J and Wooldridge A (1996) The Witch Doctors: what management gurus are
saying, why it matters and how to make sense of it, London, William Heinemann. The authors
are journalist with The Economist, and the book provides a lively critique of the contradictions
in management theory.

Mintzberg H, Ahlstrand B and and Lamprel J (1998) Strategy Safari. A Guided Tour Through
the Wilds of Strategic Management, New York, Free Press. A comprehensive guide to different
perspectives on strategic management based on a classification of ten schools of thought
developed by Mintzberg.

Pettigrew A, Thomas H and Whittington R (eds) (2002) Handbook of Strategy and Management,
London, Sage. An overview of research and writing on strategy and management. Chapter 1
provides a general overview of the field and Chapters 2 provides an overview of the history and
evolution strategic management.

Raynor ME (2007) The Strategy Paraox Why committing to success leads to failure...and what to
do about it, New York, Doubleday Books.

Whittington R (2001) What is Strategy and does it matter? London, International Thompson
Business Press. Chapters 1 and 3 explore the theoretical and practical implications of four
fundamentally different ways of thinking about strategy.

Electronic Reading List

Reading for the lectures and tutorials and resources for the debates that can be accessed
electronically are available at:
http://www.lib.monash.edu.au/resourcelists/m/mgc2110.html

MGC2110 Strategic Management Study Guide 2011 11

Week 1

Lecture - Studying Strategic Management

• Strategy concepts
• Strategy processes, content, context and purpose
• Strategy debates

Required Reading
de Wit & Meyer (2010) Preface & Chapter 1 Introduction

Recommended Reading

Grant RM (2005) Chapter 1 The Concept of Strategy in Contemporary Strategic

Analysis, Fifth Edition,
http://www.blackwellpublishing.com/grant/pdfs/CSA5eC01.pdf

Serwer A (2002) Inside the Rolling Stones Inc., Fortune, 30 September, page 58.

Tutorial - Debates
Debating teams will be formed in the first tutorial.

Recommended Reading
Monash Association of Debaters (MAD), Online Debating Tutorial - Three on Three Debating:
http://home.vicnet.net.au/~madhome/website.htm

ACR Debating Union (ACTDU) About debating and how to get started,
http://www.actdu.org.au/archives/actein_site/aboutd.html

World Debating Website, Debating Tutorial,

http://flynn.debating.net/colmmain_tut.htm

MGC2110 Strategic Management Study Guide 2011 12

Week 2
Tutorial – Strategy Paradoxes
Compare the four approaches to dealing with strategy tensions identified by de Wit & Meyer
(Figure 1.7).
Discuss the practical implications of the different ways of dealing with strategy tensions.
Explain the difference between a logical and a social paradox and the four methods of working
with paradox discussed by Poole & van de Ven.
Explain the strategy paradox identified by Raynor and discuss the practical implications of the
principles of requisite uncertainty and strategic flexibility.

Required Reading
de Wit & Meyer (2010) Chapter 1: Introduction to the nature of strategy

Raynor ME (2007) The Strategy Paradox Why committing to success leads to failure...and what
to do about it, Chapter 1, available at: http://www.deloitte.com/assets/Dcom‐
Shared%20Assets/Documents/us_consulting_so_StrategyParadoxChapter1.pdf

Donlon JP (1995) The paradox paradigm - interview with author-philosopher Charles Handy,
Chief Executive, January- February, http://findarticles.com/p/articles/mi_m4070/is_/ai_16636992

Poole MS. and van de Ven AH (1989) Using Paradox to Build Management and Organizational
Theory, Academy of Management Review, Vol. 14, No. 4, 562-578. (This is a long and
complex paper. The section that is useful for this unit is pages 562-569 which provides a
definition of social paradox and discusses four ways of working with paradox.)

Lecture – Theory and Practice

• History of strategic management
• Classifying the strategy literature
• Ten strategy paradoxes
• Great Debate: Management fashions – fad or new practice?

Recommended Reading
History of strategic management
Bowan, E, Singh, H and Thomas, H (2002) Chapter 2 The Domain of Strategic Management:
History and Evolution, in Pettigrew, A Thomas, H and Whittington, R (eds) Handbook of
Strategy and Management.

Perspectives on strategy
Mintzberg H, Ahlstrand & Lampel J (1998) Chapter 1 The Strategic Management Beast and
Chapter 12 The Whole Beast in Strategy Safari. A Guided Tour Through the Wilds of Strategic
Management.

Mintzberg H and Lampel J (1999) Reflecting on the Strategy Process, Sloan Management
Review Spring, 21- 30.
Whittington R (2001) Chapter 2 Theories of strategy in What is Strategy – and does it
matter?
MGC2110 Strategic Management Study Guide 2011 13
Great Debate: Management fashions – fad or new practice?
Kay J (1996) Can There be a Science of Business? Chapter 5 in The Business of Economics, 26-
31.

James D (2002) All hail the gurus, Business Review Weekly, 11-17 July, 66-69.

Micklethwait J & Wooldridge A (1996) Introduction The World of the Witch Doctors in The
Witch Doctors: what management gurus are saying, why it matters and how to make sense of it.

MGC2110 Strategic Management Study Guide 2011 14

Week 3

Tutorial – Using classification to understand diversity in the strategy

literature
Compare the four theoretical perspectives on strategy in Whittington (2001).
What are the similarities and differences? (Explain Table 2.1)
What are the implications for strategic management practitioners? (Compare the way
each perspective frames strategic issues and decisions.)

Required Reading
Whittington R (2001) Chapter 2 Theories of strategy in What is Strategy – and does it
matter?

Lecture - Strategic Thinking

• Great Debates: What is the real Honda story?
• Issue of strategic reasoning
• Paradox of logic and creativity
• Rational thinking perspective
• Generative thinking perspective

Recommended Reading
de Wit & Meyer (2010) Chapter 2 Strategic Thinking.

Mintzberg H. (1987) Crafting Strategy, Harvard Business Review, July-August, 66-76.

Mintzberg H (1994) The Rise and Fall of Strategic Planning, Harvard Business Review 1994
January-February, 107-114.

Rigby D and Bilodeau B (2007) Selecting Management Tools Wisely, Harvard Business Review,
December, 20-23.

Bain & Company Management Tools, http://www.bain.com/management_tools/home.asp

Great Debates: What is the real Honda story – strategy or experience?

Pascale R (1984) Perspectives on Strategy: The Real Story Behind Honda’s Success, California
Management Review, Vol.26, No. 47-72.

California Management Review (1996) Special Issue ‘The Honda Effect Revisited’, Vol. 38, No.
4, 80-91.

Mair A (1999) Learning from Honda, Journal of Management Studies, Vol. 36, No. 1, 8-30.

MGC2110 Strategic Management Study Guide 2011 15

Week 4

Tutorial – Strategic Thinking

Explain the paradox of logic and creativity.
Compare the assumptions about strategic reasoning in the rational and generative perspectives.
Compare the arguments and the supporting evidence of Andrews (1987) and Ohmae (1982).
Compare the three approaches to decision-making in Mintzberg & Westley (2001).
What are the practical insights and limitations of each approach?

Required Reading
de Wit & Meyer (2010) Chapter 2 Strategic Thinking
ƒ Reading 2.1 Andrews (1987) The Concept of Corporate Strategy
ƒ Reading 2.2 Ohmae (1982) The Mind of the Strategist.

Mintzberg H and Westley F (2001) Decision-making: Its not what you think, Sloan Management
Review, Vol. 42, No. 3, Spring, 89-93.

Lecture: Strategy Formation

• Great Debates: Igor Ansoff and Henry Mintzberg - Planning or Learning?
• Issue of realized strategy
• Paradox of deliberate and emergent strategy
• Planning perspective
• Incrementalism perspective

Recommended Reading
de Wit & Meyer (2010) Chapter 3 Strategy Formation.

Mintzberg H and Waters J (1985) Of Strategies Deliberate and Emergent, Strategic Management
Journal, Vol. 6, 257-72.

Ocasio W and Joseph J (2008) Rise and Fall - or Transformation? The Evolution of Business
Planning at the General Electric Company 1940-2006, Long Range Planning, Volume 41, Issue
3, 248-72.

Great Debates: Henry Mintzberg and Igor Ansoff –Planning or learning?

Mintzberg H (1994) Rethinking Strategic Planning Part I: Pitfalls and Fallacies, Long Range
Planning, Vol. 27, No. 3, 12-21.

Mintzberg H (1994) Rethinking Strategic Planning Part II: New Roles for Planners, Long Range
Planning, Vol. 27, No. 3, 22-30.

Ansoff I (1994) Comment on Henry Mintzberg’s Rethinking Strategic Planning, Long Range
Planning, Vol. 27, No. 3, 31-32.

MGC2110 Strategic Management Study Guide 2011 16

Week 5

Tutorial - Strategy Formation

Explain the paradox of deliberate and emergent strategy.
Compare the assumptions about strategy formation activities and roles in the strategic planning
and strategic incrementalism perspectives.
Compare the arguments and the supporting evidence of Chakravarthy& Lorange (1991) and
Quinn (1978).
Compare the three models of decision-making in Allison’s study of the Cuban Missile Crisis.
What are the insights and limitations of each model for practitioners?

Required Reading
de Wit & Meyer (2010) Chapter 3 Strategic Thinking
• Reading 3.1 Chakravarthy & Lorange (1991) Managing the strategy process
• Reading 3.2 Quinn (1978) Logical Incrementalism

Allison G and Zelikow P (1999) Chapter 7 Conclusion in Essence of Decision: explaining the
Cuban Missile Crisis, Second Edition, New York, Longman.

Lecture - Strategic Change

• Great Debates: Re-engineering – revolution or fad?
• Issue of strategic renewal
• Paradox of revolution and evolution
• Continuous change perspective
• Discontinuous change perspective

Recommended Reading
de Wit & Meyer (2010) Chapter 4.

Beer M and Nohria N (2000) Cracking the Code of Change, Harvard Business Review, May-
June, 133-141.

Garvin D, Levesque L and Gillan C (2007) Meeting the challenge of corporate entrepreneurship,
Australian Financial Review Boss, 6-7 January, 60-61.

Great Debates – Re-engineering: failure of logic or execution?

Micklethwait J and Wooldridge A (1996) Chapter 1 The Fad in Progress: Re-engineering in The
Witch Doctors.

Valentine R and Knoghts D (1998) TQM and BPR – can you spot the difference? Personnel
Review, Vol 27, No 1, 78-85.

MGC2110 Strategic Management Study Guide 2011 17

Week 6

Tutorial - Strategic Change

Explain the paradox of evolutionary and revolutionary change.
Explain the insights and limitations of the discontinuous renewal and continuous renewal
perspectives.
Compare the arguments and the supporting evidence of Hammer (1990) and Imai (1986).
Explain the pattern of organisational evolution identified by Tushman & O’Reilly (1996).
Why is strategic renewal successful for some firms while others fail?

Required Reading
de Wit & Meyer (2010) Chapter 4 Strategic Change
• Reading 4.1 Hammer (1990) Re-engineering Work
• Reading 4.2 Imai (1986) Kaizen

Hammer M (1990) Reengineering Work: Don’t Automote, Obliterate, Harvard Business Review,
vol. 68, no. 4, 1990. p104-112.

Tushman M. and O’Reilly C. (1996) Ambidextrous Organizations: Managing Evolutionary and

Revolutionary Change, California Management Review, Vol. 38, No. 4, 8-30.

Lecture - Business Level Strategy

• Great debates: Generic strategies
• Issue of competitive advantage
• Paradox of markets and resources
• Outside-in perspective
• Inside-out perspective

Recommended Reading
de Wit & Meyer (2010) Chapter 5 Business Level Strategy

Day GS (1994) The Capabilities of Market-Driven Organizations, Journal of Marketing, Vol. 58

(October), 37-52.

Barney J (1995) Looking Inside for Competitive Advantage, Academy of Management Executive
Vol. 9, No. 4, 49-62.

Porter M (1996) What is Strategy? Harvard Business Review, November-December,

61-78.

Great Debates: Generic Strategies

James D (2004) To ape, or not to ape, Business Review Weekly, July 1-7, pages 66-67.

Trinca, H (2002) Michael Porter Holding the Line on Strategy, Australian Financial Review
Boss, September, 58-63.

Argyres N and McGahan A (2002) An Interview with Michael Porter, Academy of Management
Executive, Vol. 16 No. 2, pages 43-52.

MGC2110 Strategic Management Study Guide 2011 18

Week 7

Tutorial – Business Level Strategy

Debate Round 1
Should business strategy be driven by the market adaptation or resource leveraging?

Required Reading
de Wit & Meyer (2010) Chapter 5 Business Level Strategy
• Reading 5.1 Porter (1985) Competitive Strategy
• Reading 5.2 Miller, Eisenhardt & Foote (2002) Strategy from the Inside out

Miller E (2002) Strategy from the inside outbuilding capability-creating organizations,

California Management Review, Vol. 33, No. 3, 37-54.

Lecture - Corporate Level Strategy

• Issue of corporate configuration
• Paradox of responsiveness and synergy
• Portfolio organisation perspective
• Integrated organisation perspective
• Great Debates: Diversification –value adding or value destruction?

Recommended Reading
de Wit & Meyer (2010) Chapter 6 Corporate level strategy

Porter M (1987) From Competitive Advantage to Corporate Strategy, Harvard Business Review,
May-June, 43-59.

Collis DJ and Montgomery CA (1998) Creating Corporate Advantage, Harvard Business

Review, May-June, 71-179.

Great Debates: Diversification or focus?

James D. (2004) Spread to thin, Business Review Weekly, May 6-12, pages 64-67.

Campbell A and Goold M and Luchs K (1993) Why Diversify? Four Decades of Management
Thinking, Academy of Management Review, Vol. 7, No. 3, 7-25.

MGC2110 Strategic Management Study Guide 2011 19

Week 8

Tutorial – Corporate Level Strategy

Debate Round 1
Should strategy in diversified firms be driven by business responsiveness or multi-business
synergy?

Required Reading
de Wit & Meyer (2010) Chapter 6 Corporate Level Strategy
• Reading 6.1 Hedley (1977) Strategy and the Business Portfolio
• Reading 6.2 Prahald & Hamel (1990) The Core Competencies of the Corporation

Hedley B (1977) Strategy and the Business Portfolio, Long Range Planning, Vol. 10 No. 1, 9-15.

Hamel G (1990) The Core Competencies of the Corporation, Harvard Business Review, Vol. 68,
May-June, p. 79-91.

Lecture – Network Level Strategy

• Great Debates: Outsourcing
• Issue of inter-organisational relationships
• Paradox of competition and cooperation
• Discrete organisation perspective (atomistic)
• Embedded organisation perspective (interdependent)

Recommended Reading
de Wit & Meyer (2010) Chapter 7 Network Level Strategy, pages 359-378.

Hughes J and Weiss J (2008) New approach needed for corporate alliance success, Australian
Financial Review Boss, 25-28 January, 88-89.

Hacki R and Leighton J (2001) The future of the networked company, Business Review Weekly,
30 August – 5 September, 58-62.

Great Debates: Outsourcing

Doig S, Ritter R, Spuckhals K and Woolson, D (2001) Has outsourcing gone too far? McKinsey
Quarterly, Number 4, 25-37.

Quinn, B (1999) Strategic Outsourcing: Leveraging Knowledge Capabilities, Sloan Management

Review, Summer, 9-21.

Quinn, B and Hilmer, F (1994) Strategic Outsourcing, Sloan Management Review, Summer, 43-
55.

MGC2110 Strategic Management Study Guide 2011 20

Week 9

Tutorial – Network Level Strategy

Debate Round 1
Should collaboration between firms be tactical or strategic?

Reading
de Wit & Meyer (2010) Chapter 7
• Reading 7.1 Hamel, Doz & Prahalad (1989) Collaborate with Your Competitors - and Win
• Reading 7.2 Lorenzi & Baden-Fuller (1995) Creating a Strategic Centre to Manage a Web
of Partners

Hamel G, Doz YL and Prahald CK (1989) Collaborate with Your Competitors - and Win,
Harvard Business Review, January-February,

Lorenzi G and Baden-Fuller C (1995) Creating a Strategic Centre to Manage a Web of Partners,
California Management Review, Vol 37, No 3,

Lecture – The Industry Context

• Great Debate: Firms and industries – the evidence?
• Issue of industry development
• Paradox of compliance and choice
• Industry dynamics perspective
• Industry leadership perspective

Recommended Reading
de Wit & Meyer (2010) Chapter 8 The Industry Context

Lovallo DP and Mendonca LT (2007) Strategy's strategist: An interview with Richard Rumelt,
McQuinsey Quarterly, Issue 4.

Great Debate: Firms and industries – the evidence?

These are more challenging articles based on quantitative research. You should look in particular
at the abstract, introduction, discussion of the results and conclusions.

Schmalensee R (1985) Do Markets Matter Much? American Economic Review, June, 341-351.

Rumelt, R (1991) How Much Does Industry Matter? Strategic Management Journal, Vol. 12,
No. 2, 167-85.

McGahon A and Porter M (1997) How Much Does Industry Matter, Really? Strategic
Management Journal, Vol. 18, Summer Special Issue, 15-30.

Hawawini G, Subramanian V and Verdin P (2003) Is Performance Driven by Industry- or Firm-

Specific Factors? A New Look at the Evidence, Strategic Management Journal, Vol. 24, 1-16.

MGC2110 Strategic Management Study Guide 2011 21

Week 10

Tutorial – The Industry Context

Debate Round 2
Do successful firms shape industry structure or adapt to industry dynamics?

Required Reading
de Wit & Meyer (2010) Chapter 8 Industry Context
• Reading 8.1 Michael Porter (1980) Industry Evolution
• Reading 8.2 Baden-Fuller & Stopford (1992) The Firm Matters, Not the Industry

Teams debating should also use the reading listed for “Great Debate: Firms and industries – the
evidence”.

Lecture – The Organisational Context

• Great Debates: Hard and Soft Ss
• Issue of organisational development
• Paradox of control and chaos
• Organisational leadership perspective
• Organisational dynamics perspective

Recommended Reading
de Wit & Meyer (2010) Chapter 9 The organizational context

Snowden D and Boone M (2008) The best leaders are masters of their domain, Australian
Financial Review, Summer Boss, 12-13 January, 60-61.

Senge P (1990) The Leaders New Work: Building Learning Organisations, Sloan Management
Review, Vol. 32, No. 1, 7-23.

Great Debates: In Search of Excellence – science or advocacy?

Peters TJ (1980) Strategy Follows Structure: Developing Distinctive Skills, California
Management Review, Vol. XXVI No 3 Spring, 112-125.

Hitt MA and Ireland RD (1987) Peters and Waterman revisited: The Unended Quest for
Excellence, Academy of Management Executive, Vol 1, No 2, 91-98.

Bogner WC (2002) Tom Peters on the real world of business, Academy of Management
Executive, Vol 16 No 1, 40 44.

Bogner WC (2002) Robert H. Waterman, Jr on being smart and lucky, Academy of Management
Executive, Vol 16 No 1, 45 50.

MGC2110 Strategic Management Study Guide 2011 22

Week 11

Tutorial – The Organisational Context

Debate Round 2
Do successful leaders control strategic development or facilitate self organisation?

Required Reading
de Wit & Meyer (2010) Chapter 9 The international context
• Reading 9.1 Cyert (1990) Defining Leadership and Explicating the Process
• Reading 9.2 Stacey (1993) Strategy as Order Emerging from Chaos

Stacey (1993) Strategy as Order Emerging from Chaos, Long Range Planning, vol. 26, no.1, p.
10-17.

Lecture – The International Context

• Issue of international configuration
• The paradox of globalisation (integration) and localisation (fragmentation)
• Global convergence perspective
• International diversity perspective
• Great Debates: Michael Porter and Keniche Ohmae - location or companies?

Recommended Reading
de Wit & Meyer (2010) Chapter 10 The international context

James D (2003) Secrets and traps of overseas expansion, Business Review Weekly, 5-11 June,
40-45.

James D (2003) Why togetherness works, Business Review Weekly, July 31 – August 6, 42-47.

Rugman A (2001) The Myth of Global Strategy, International Marketing Review, Volume 18
Number 6,583-588.

Great Debates: Michael Porter and Keniche Ohmae - location or companies?

Ohmae K (1989) Managing in a Borderless World, Harvard Business Review, May-June, 152-
161.

Porter M (1990) The Competitive Advantage of Nations, Harvard Business Review, March-
April, 73-93.

Porter, M (1998) Clusters and the New Economics of Competition, Harvard Business Review,
November-December, 77- 90.

MGC2110 Strategic Management Study Guide 2011 23

Week 12

Tutorial – The International Context

Debate Round 2
Is international competitive advantage driven by global integration or local market
responsiveness?

Required Reading
de Wit & Meyer (2010) Chapter 10 The International Context
• Reading 10.1 Theodore Levitt (1983) The Globalization of Markets
• Reading 10.2 Douglas & Wind (1987) The Myth of Globalization

Levitt T (1983) The Globalization of Markets, Harvard Business Review, May-June, 92-102.

Douglas S and Wind Y (1987) The Myth of Globalization, Columbia Journal of World Business,
Winter, 19-29.

Rugman A (2001) The Myth of Global Strategy, International Marketing Review, Volume 18
Number 6,583-588.

Lecture – Organisational Purpose

• Great Debates: Corporate Governance
• Issue of corporate mission
• Paradox of profitability and responsibility
• Shareholder value perspective
• Stakeholder values perspective

Recommended Reading
de Wit & Meyer (2010) Chapter 11 Organizational purpose
• Reading 11.1 Rappaport (1986) Shareholder Value and Corporate Purpose
• Reading 11.2 Freemen & Reed (1993) Stockholders and Stakeholders: A New
Perspective on Corporate Governance

Rappaport A (2006) 10 Ways to create shareholder Value, Harvard Business Review, September,
pp 66-77.

Freemen E. (1983) Stockholders and Stakeholders: A New Perspective on Corporate

Governance, California Management Review, vol. 25, no. 3, p. 68-87.

Great Debates: Corporate social responsibility – economic or social?

Porter ME and Kramer MR (2007) Corporate social responsibility: the competitive advantage,
Australian Financial Review, SummerBoss , January 20-21, pp 60-61.

Smith CN (2003) Corporate Social Responsibility: Whether or How? California Management

Review, Vol 45 No 4, pp52-76.

A handout on a particular case for the examination will be provided in the lecture in Week 12.

MGC2110 Strategic Management Study Guide 2011 24