Grant, R.M. (2013) Contemporary strategy analysis - Chapter 16 Summary
Strategy – Readings
Chapter 16: Goals, values and performance
Grant, R.M. (2013), Contemporary strategy analysis. 8th ed. Chichester: Wiley (The 7th edition is significantly different for this chapter)
Item 1: New Environment of Business
1. Turbulence and unpredictability in business market
2001-2011 was filled with many black swan events (i.e. events that are extremely rare, have a major impact and are unpredicted even if they are rationalised retrospectively) e.g. Sep 11 attack, Lehman Brother collapse, Greece/Iceland bailouts, Arab Spring revolutions, major earthquakes and tsunamis)
Rise of BRIC countries creating a multipolar world
2. Sluggish Economic Growth + Increased Competition
Economic growth in advanced economies sluggish throughout the medium term governments and household sectors are over-leveraged insufficient productive investment from companies sitting on cash excess capacity in most sectors -> resulting in strong price competition
Internationalisation of companies from emerging-market countries e.g. contract manufacturers (OEM) in China and India competing with their customers in final markets.
3. Technology Disruption
Digital technology disrupting incumbents (e.g. Netflix replacing Blockbuster) and redrawing industry barriers (e.g. Apple, Nokia, Nintendo, Blackberry now competing in same mobile device market)
4. Social Pressure and Crisis of Capitalism
Loss of social legitimacy of companies as a result of a fall-out from the 2008/9 financial crisis – disdain for companies (hypocrisy + greed of bankers, traders, etc) and their leaders (e.g. Occupy Wall Street movement)
Rise of alternative forms of business enterprise as better, more sustainable models over limited liability companies – e.g. state-owned firms (China, Brazil) and cooperatives (i.e. businesses mutually owned by consumers or employees).
Challenge faced by companies of whether to unilaterally create/stick to its own values (which may become out of step) or
Chapter 16: Goals, values and performance
Grant, R.M. (2013), Contemporary strategy analysis. 8th ed. Chichester: Wiley (The 7th edition is significantly different for this chapter)
Item 1: New Environment of Business
1. Turbulence and unpredictability in business market
2001-2011 was filled with many black swan events (i.e. events that are extremely rare, have a major impact and are unpredicted even if they are rationalised retrospectively) e.g. Sep 11 attack, Lehman Brother collapse, Greece/Iceland bailouts, Arab Spring revolutions, major earthquakes and tsunamis)
Rise of BRIC countries creating a multipolar world
2. Sluggish Economic Growth + Increased Competition
Economic growth in advanced economies sluggish throughout the medium term governments and household sectors are over-leveraged insufficient productive investment from companies sitting on cash excess capacity in most sectors -> resulting in strong price competition
Internationalisation of companies from emerging-market countries e.g. contract manufacturers (OEM) in China and India competing with their customers in final markets.
3. Technology Disruption
Digital technology disrupting incumbents (e.g. Netflix replacing Blockbuster) and redrawing industry barriers (e.g. Apple, Nokia, Nintendo, Blackberry now competing in same mobile device market)
4. Social Pressure and Crisis of Capitalism
Loss of social legitimacy of companies as a result of a fall-out from the 2008/9 financial crisis – disdain for companies (hypocrisy + greed of bankers, traders, etc) and their leaders (e.g. Occupy Wall Street movement)
Rise of alternative forms of business enterprise as better, more sustainable models over limited liability companies – e.g. state-owned firms (China, Brazil) and cooperatives (i.e. businesses mutually owned by consumers or employees).
Challenge faced by companies of whether to unilaterally create/stick to its own values (which may become out of step) or