School of Management

MN2201K
Strategic Management

Course Outline and Study Guide

Course Tutors:
Ailson De Moraes
Module Leader and tutor
Ailson.DeMoraes@rhul.ac.uk
Endrit Kromidha
Tutor
Endrit.kromidha@rhul.ac.uk
Brief Outline and Aims of the Course
The course will analyse the principal theories of strategic management
and set them in the context of key developments in which contemporary
business operates, including political and regulatory developments,
technological change, financialisation, the development of new business
models and the changes in the framework for assessing corporate
performance.
The course aims:
1. To discuss key concepts and debates in the theory of corporate and
business strategy.
2. To examine the changing context in which the corporate strategy is
formulated and implemented.
3. To illustrate how theoretical debates can be related to corporate
strategies via the analysis of case studies covering a variety of
industrial settings and situations.
4. To enable students to analyse financial and non-financial data relevant
to the analysis of corporate performance.
Learning outcomes
By the end of the course unit students should be able to:

Understand the major approaches to analysing corporate strategy

and the debates between proponents of these positions.
Analyse the ways in which regulatory practices relate to corporate
strategy.
Comprehend the variety of product market situations in which
corporate strategies are formulated and implemented.
Understand the debate on the impact of electronic business on
business strategy.
Comprehend the impact of financialisation on the evaluation of
corporate performance and on strategic management practices.

Week
Number

Lecture

Week 15

Introduction: What is Strategy and Why Is It Important?

Gaining and Sustaining Competitive Advantage
Strategic management context: Product and capital
market
Strategic analysis: An overview
Strategic analysis (external): Industry analysis
Strategic choice: Generic strategies
Strategic analysis (internal): Resource-Based View and
innovation
Resource-Based View: Architecture as a distinctive
capability
Resource-Based View: Strategic assets
Core competences
Competing for the future
Introduction: what is management and business
analysis?
1980s Porter and strategy as classification
Strategy and organisation(al) learning
Stakeholder analysis, distributive conflict and value
added
Globalisation and the macro economy

Week 16

Meso analysis: production chain v sector matrix

Week 17
Week 18

Shareholder value and Financialisation

Restructuring for capital and against labour
The Banking Crisis: The New Economy, Private Equity
and Hedge Funds and how they change business
calculations
Synthesis: sustainable advantage and what
management can do?

Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10
Week 11
Week 12
Week 13
Week 14

Week 19
Week 20

Workshops
Students will attend two sessions of eight hours of workshops making a
total of 16 hours. The workshops will happen in December and February,
and will be taught by Royal Holloway academics.
The workshops will provide an opportunity to discuss issues related to the
lecture and to develop your understanding of the topic while deepening
grasp of the subject. As a pre-requisite, you are expected to prepare
before attending and to participate in discussions. The teaching structure
and methods will vary, but will include discussion of key issues, individual
and group work and a group presentation based on a case study. You will
receive a worksheet containing tasks that you must complete for
3

workshop on the course Moodle page, as it will serve as a basis for

discussion.
Assessment
This course will be assessed by the following:
Assignment One: Group work
Case study based report of max. 2,000 words. The Case Study
materials can be found on the course Moodle page.
All cases can be found in De Moraes, A. (2013) Compilations Case Studies
on Strategic Management McGraw-Hill with which you will have already
been provided.
This assignment carries 15% of the total grades
For deadline: Please check with your administrator
Assignment Two: Individual Essay
Select ONE question and submit a maxim 2,000 words essay.
(These essay questions are from previous years MN2201K exam papers).
1. If o firm is to attain competitive advantage, it must make a choice between the types
of competitive advantage it seeks. (Porter 1985). Discuss using an example.
2. To what extent is market maturity the cause for an organization restructuring?
Critically examine the extent the new strategy transformed market, productive and
financial performance. Your analysis should incorporate a specific example.
3. Institutional investor double standards led to new economy businesses receiving near
limitless funding for investment while old economy companies restricted investment.
Use examples to illustrate how the difference in funding distorted corporate strategy
and performance.
4. During the 10 years before the financial crash in 2007/8, nearly all large listed
companies failed to reach pre and post-tax return on capital employed targets set by
large institutional investors. Critically examine the reasons for this failure.

This assignment carries 15% of the total grades

For deadline: Please check with your administrator
All coursework is to be handed in electronically via the course
Moodle Page. A booklet detailing this process will have been
given to you at Welcome Orientation.
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Examination: The paper will contain two sections not necessarily of

equal length and you are required to answer at least one question from
each section. Each section corresponds to one ten week session.
The three-hour examination requires three essay style answers chosen
from an unseen exam paper containing eight questions within two
sections.
This examination carries 70% of the total grades
For more information on exams, please check online some previous years
exam papers.

Textbooks
First Section 10 weeks
There are two main books for the First Section of 10 weeks.
De Moraes, A. (2013), Compilations Case Studies on Strategic
Management, McGraw-Hill. Highly RECOMMENDED.
Rothaermel, Frank T. (2016 3e), Strategic Management, McGraw-Hill.
Highly RECOMMENDED.
Second Section 10 weeks
The second terms teaching uses widely dispersed readings, although
Froud, J. et al (2006) Strategy and Financialisation: Narrative and
Numbers, Routledge, is strongly recommended. Furthermore we
suggest that any of the following are useful:
Besanko, D., Dranove, D., Shanley, M. and Schaefer, S. (2003) Economics
of Strategy, Third Edition, John Wiley
Hill, C. and Jones, G. (2004) Strategic Management Theory: an Integrated
Approach, Houghton-Mifflin
McGee, J, Thomas, H and Wilson, D. (2005) Strategy: Analysis & Practice,
McGraw Hill,
Grant, Robert, M. (2004) Contemporary Strategy Analysis, Fifth Edition,
Blackwell.

Lecture Programme

Lecture 1

Introduction: What is Strategy and Why Is It Important?

Gaining and Sustaining Competitive Advantage

Discussion issues:
The concept of strategic management; the distinctiveness of strategic
as against functional management; criteria for the evaluation of strategic
decisions.
Basic reading:
Besanko, D., Dranove, D., Shanley, M. and Schaefer, S. (2003) Economics
of Strategy, Third Edition, John Wiley, pp1-2. (Future references to this text
will be as Besanko et al. (2003)
Grant, R. (2002) Contemporary Strategy Analysis, 4th edition, Blackwell,
pp.16-17.
Further reading:
Shaoul, J. (1998) Critical financial analysis and accounting for
stakeholders, Critical Perspectives on Accounting, 9, 235-249.
Stoney, C. and Winstanley, D. (2001) Stakeholding: Confusion or Utopia?
Mapping the Conceptual Terrain, Journal of Management Studies, 38 (5),
603-626.
Lynch, Richard (2009) Strategic Management, 5th Edition, Prentice Hall.

Lecture 2

Strategic management context: Product and capital

market

Discussion issues:
The concept of cost recovery and the role of product markets in relation to
cost recovery. Introduction to the role of capital markets in assessing
corporate performance.
Basic reading:
Williams, K, Haslam, C., Johal, S and Williams, J. (1995) The crisis of cost
recovery and the waste of the advanced economies, Competition and
Change, 1 (1) pp. 67-93.
Further reading
Cutler, T. (2004) The Wages of Capital: the Rise and Rise of Corporate
Governance, Competition and Change, 8 (1), 65-83 (particularly the
discussion of stakeholding and shareholder primacy in pp. 67-71).

Lecture 3

Strategic analysis: An overview

Discussion issues:
The broad distinction between positioning and resource based
approaches to corporate strategy; debates between positioning and
resource based approaches and their implications for the scope and
efficacy of strategic management.
Basic reading:
Grant, R. (2002) Contemporary Strategy Analysis, 4th edition, Blackwell,
chapters 3 and 5.
Further reading
Hamel, G. and Prahalad, C. (1999) The Core Competencies of the
Corporation in H. Mintzberg, J.Quinn and S.Ghoshal (eds.) The Strategy
Process, Financial Times/Prentice Hall, pp.82-91.
Porter, M. (1999) How Competition Forces Shape Strategy in H.Mintzberg,
J.Quinn and S.Ghoshal (eds.) The Strategy Process, Financial
Times/Prentice Hall, pp.60-69.
Kay, J. (1993) Foundations of Corporate Success, Oxford University Press,
pp.63-5.
Lecture 4

Strategic analysis (external): Industry analysis

Discussion issues:
The role of industry analysis in positioning theory; the key elements in
industry analysis and how it claims to inform strategic management
practice.
Basic reading:
Besanko et al. (2003) Ch.10
Grant, R. (2002) Contemporary Strategy Analysis, 4th edition, Blackwell,
pp. 71-82.
Hill, C. and Jones, G. (2004) Strategic Management Theory: an Integrated
Approach, Houghton-Mifflin, pp.40-50 (future references to this text will be
as Hill and Jones (2004)
McGee, J, Thomas, H and Wilson, D. (2005) Strategy: Analysis & Practice,
McGraw Hill, pp. 149-153 (future references to this text will be as McGee
et al. (2005)
Further reading
Porter, M. (1980) Competitive Strategy, Free Press, chapter 1.
Porter, M. (1985) Competitive Advantage, Free Press, pp.4-10.

Lecture 5

Strategic choice: Generic strategies

Discussion issues:
The concept of generic strategy in positioning theory; types of generic
strategy; problems in combining generic strategies.
Basic reading:
Besanko et al (2003) pp. 397-400
Hill and Jones (2004) pp. 156-172
McGee et al (2005) pp. 157-9.
Porter, M. (1985) Competitive Advantage, Free Press, pp.12-25.
Further reading
Porter, M. (1980) Competitive Strategy, Free Press, chapter 2.
Grant, R. (2002) Contemporary Strategy Analysis, 4th edition, Blackwell,
pp.246-250.
Lecture 6

Strategic analysis (internal): Resource-Based View and

innovation

Discussion issues:
Innovation as a means of generating competitive advantage; problems in
the strategic management of innovation and the role of intellectual
property.
Basic reading:
Angell, M. (2005) The Truth About the Drug Companies, Random House,
Chapters 1-4.
Kay, J. (1993) Foundations of Corporate Success, Oxford University Press,
chapter 1.
Further reading
Schweitzer, S. (1997) Pharmaceutical Economics and Policy, Oxford
University Press, chapters 2 and 9.
Froud, J., Haslam, C., Johal, S., Williams, K. and Willis, R. (1998) British
pharmaceuticals: a cautionary tale, Economy & Society, 27(4), 554-584
(particularly pp.564-575).
Lecture 7

Resource-Based View: Architecture as a distinctive

capability

Discussion issues:
Architecture as a source of competitive advantage; the distinctive
character of relational contracts with workers/suppliers; advantages and
disadvantages of architecture.
Basic reading:
Kay, J. (1993) Foundations of Corporate Success, Oxford University Press,
chapters 4 and 5.
Further reading
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Besanko et al (2003) pp. 119-121

Lecture 8

Resource-Based View: Strategic Assets

Discussion issues:
Strategic assets as a source of competitive advantage; access to
strategic assets; management of strategic assets and the impact of
regulation.
Basic reading:
Kay, J. (1993) Foundations of Corporate Success, Oxford University Press,
chapter 8.
Further reading
Froud, J., Haslam, C., Johal, S., Shaoul, J. and Williams, K. (1996)
Stakeholder Economy? From Utility Privatisation to New Labour, Capital
and Class, No.60, 119-134.
Thatcher, M. (1999) The Politics of Telecommunications, Oxford University
Press, Parts III and IV.
Lecture 9

Resource-Based View : Core competences

Discussion issues:
The concept of corporate competencies; the development and use of
competencies, core competencies and financial metrics in strategic
decision making.
Basic reading:
Hamel, G. and Prahalad, C. (1994) Competing for the Future, Harvard
Business School Press, chapters 2, 4-7 and 10.
Further reading
Hamel, G. and Prahalad, C. (1993) Strategy as Stretch and Leverage,
Harvard Business Review, 71, March-April, pp.75-86.
Grant, R. (2002) Contemporary Strategy Analysis, 4th edition, Blackwell,
chapter 5.
Lecture 10

Resource-Based View: Competing for the future

Discussion issues:
Future oriented approaches to strategic management, the limitations and
problems of static approaches to strategic decision making, links to new
economy concepts, problems of competing for the future.
Basic reading:
Hamel, G. and Prahalad, C. (1994) Competing for the Future, Harvard
Business School Press, chapters 4, 8 and 9.
10

Further reading
Gordon, R. (2000) Does the new economy measure up to the great
inventions of the past?, Journal of Economic Perspectives, 14(4), 49-74.
Willis, R., Marshall, J. and Richardson, R. (2001) The impact of branchless
banking on building society branch networks, Environment and Planning
A, 33, 1371-1384.
Lecture
11

Introduction: what is management and business

analysis?

Lecture
12

1980s Porter and strategy as classification

Original statement:
Porter M. E. (1985) Competitive Advantage, especially chap.1 pp.1-30 on
the five forces and generic strategies. Reprinted in DeWitt and Meyer,
Strategy Process, Content, Context, pp.344-358 with a useful preceding
introduction and other readings. (Reading used in the first term)
Johnson G. and Scholes K. (1999) Exploring Corporate Strategy (5th
edition) chap 3 on analyzing the environment, pp. 97-141. Especially
pp.115-141 (straightforward textbook account of positioning)
Lecture
13

Strategy and organisation(al) learning

Classic original statements:

Prahalad, C. and Hamel, G. The Core Competences of the Corporation
Harvard Business Review, May/June 1990. (for revision/or as introduction)
Prahalad, C. and Hamel, G. Strategy as stretch and leverage Harvard
Business Review, March/April 1993. (for revision/or as introduction used
in the first term)
Additional optional reading on mainstream strategy usage of RBT:
Baden-Fuller, C. and Stopford, J. (1993) Rejuvenating the Mature Business,
London: Routledge., chap 1 Maturity is a State of mind pp.1-12 and
Chapter 2 The Firm Matters, Not the Industry pp.13-24. Sections
reprinted in Segal-Horn, S. (1999) The Strategy Reader, Oxford: Blackwell,
pp.125-140.
Leaver, A. (2001) Organic Farming: ex post strategy or ex ante business
analysis? Competition and Change.
Barney, J.B. Strategic Factor Markets in Chapter 12 pp.146-160 (a neoclassical view on RBT) in Foss, N. (1997) Resources, Firms and Strategies,
Oxford: OUP (the best advanced text for new and classic interpretations).

11

Lecture
14

Stakeholder analysis, distributive conflict and value

added

Select at least 1 from:

Jensen, M. (1998) The takeover controversy: analysis and evidence: in
Stern, J.M. and Chew, D.H. (eds), The Revolution in Corporate Finance (3rd
edition, 1998) Oxford: Blackwell, pp.351-377. (disciplining managers, from
an agency point of view).
Shleifer A. and Summers L H (1988) Breach of trust in hostile takeovers
in Auerbach, A. J. (ed) Corporate Takeovers: Causes and Consequences,
Chicago: University of Chicago Press, pp.33-68. (takeover as a breach of
implicit contracts with workers and suppliers).
Froud, J., Haslam, C., Johal, S. and Williams, K. (2000) Restructuring for
shareholder value and its implications for labour Cambridge Journal of
Economics, Vol. 24, pp. 771-797 (using accounting data from a
redistribution perspective).
Froud, J, Haslam C, Johal S and Williams K (2001) Accumulation under
conditions of inequality, Review of International Political Economy, Vol. 8,
No 1, Spring, pp. 66-95 (identifies UK and US shareholders as households
in the top 40% by income).
Lecture
15

Globalisation and the macro economy

Ther topic is broad and developed from a range of perspectives. Therefore

select at least 1 from:
Amin, A. (1994) Post-Fordism: A Reader, Oxford: Blackwell. Introduction
(standard beginners guide to Regulationism)
Boyer, R. (1990) The Regulation School: A Critical Introduction, New York:
Columbia University Press. Chapter 2, pp.29-46. (statement by one of the
French founders)
Piore, M. and Sabel, C. (1984) The Second Industrial Divide: Possibilities
for Prosperity, Basic Books: USA. Introduction, pp.1-19. (launched
flexible specialisation: hugely influential)
For perspective/ criticism:
Jessop, B. (1995) "The Regulation Approach, Governance and PostFordism: Alternative Perspectives on Economic and Political Change",
Economy and Society, Vol.24, No.3, pp.307-333.(by a British
Regulationist).
Peck, J. and Tickell, A. (1995) Social Regulation After Fordism: Regulation
theory, neo-liberalism and the global-local nexus Economy and Society
Vol.24, No.3, pp.357-386. (critiques Regulationism)

12

Williams, K. Cutler, T. Williams, J. Haslam, C. (1987) The End of Mass

production? Economy and Society, Vol. 16, No.3, pp.405-439. (the
standard critique of Piore and Sabel).
Globalisation:
a)

For the political economy debates see:

Dicken, P. (1998) Global Shift: Transforming the World Economy (3rd

edition) London: Paul Chapman. Chapter 2 The changing global map:
Trends in production and trade pp.16-46. and Prologue of Pt.1 pp.91-96.
See also pt. 3 for some sectoral examples. (balanced overview)
Hirst, P. and Thompson, G. (1999) Globalisation in Question (2nd edition)
Malden: Polity Press. Chapter 1 Globalisation: A necessary myth? pp.118; Chapter 2 Globalisation and the history of the international economy
pp.19-65. (the best known critique of globalisation).
Sutcliffe B and Glyn A. Still underwhelmed: indicators of globalisation and
their misinterpretation Review of Radical Political Economy, 1999, Vl 31,
No 1, pp.111-37. (excellent statistics)
Kaplinsky, R. Is globalization all it is cracked up to be? Review of
International Political Economy, Vol. 8, No.1, Spring 2001, pp.45-65 (on the
implications of bringing China and India into the global system).
b) For the business school debates see:
Levitt, T. (1983) The Globalisation of markets, Harvard Business Review,
May/June 1983, Reprinted in DeWit, B. and Meyer, R. (1999) Strategy:
Process, Content and Context, (1999, 2nd edition) pp.733-741. (The
original statement about globalisation of markets).
Bartlett, C and Ghoshal, S. (1995 2nd edition) Transnational Management:
Text, Cases, and Readings in Cross-Border Management, RD Irwin Inc.
Chapter 5 Transnational management; also reprinted in DeWit and
Meyer (1999, 2nd edition) Strategy: Process, Content and Context, pp.785801. (on the complications of running an international company)
Lecture
16

Meso analysis: production chain v sector matrix

Select at least 1. Various positions on chain and matrix:

Porter, M. E. Competitive Advantage (1985), chap 2 the value chain and
competitive advantage New York: Free Press, pp. 13-61 (started it all)
Gereffi, G. Korzeniewicz, M. and Korzeniewicz, R. (1994) Introduction:
global commodity chains pp. in Gereffi, G. and Korzeniewicz, M. (eds)
Commodity Chains and Global Capitalism, London: Praeger (political
economy takes up chains).
Froud, J. Haslam, C. Johal S. and Williams K. (1998) Breaking the chains?
A sector matrix for motoring Competition and Change, vol. 3. no 3, pp.
293-334 (a different way of thinking, illustrated by cars)
Lecture 17

Macro analysis (b) capital market, shareholder value

13

and Financialisation

The February 2000 special issue of Economy and Society is a standard

political economy introduction to shareholder value and financialisation
available via metalib. As well as the three articles cited below it includes
articles by Morin and Juergens which cover change in France and
Germany and a full length introduction by Williams which provides an
overview of the issues.
Froud J., Haslam C., Johal S. and Williams K. (2000) Shareholder value and
financialization: consultancy promises and management moves,
Economy and Society, Vol. 29, No 1, February 2000, pp 80-110. (on the
difficulty of generating EVA).
Lazonick, W and OSullivan, M (2000) Maximising shareholder value: A
new ideology for corporate governance Economy and Society Vol. 29,
No.1 Feb 2000, pp.13-35. (on US corporations and downsize and
distribute).
Boyer, R (2000) Is a finance-led growth regime a viable alternative to
Fordism? A preliminary analysis Economy and Society Vol. 29, No.1,
pp.111-145. (theoretically important contribution on the dynamics of a
wealth-based growth regime).
Shiller R J (2000), Irrational Exuberance, Princeton:Princeton University
Press, chap 1 (pp.3-14) on current stock prices, chap 9 (pp.171-190)
attacking efficient markets, chap 11 conclusion (pp.203-233) (a cogent
statement from the behavioural finance camp)
On measures of success after financialisation:
Stern, J. and Chew, D. (1998 3rd ed.) The Revolution in Corporate Finance
Oxford: Blackwell. Read: Stern, J, Stewart III, J. and Chew Jr., D. The EVA
financial management system pp.474-488. (about selling EVA).
Kay, J. (1993) Foundations of Corporate Success, Oxford: Oxford University
Press, chap 1 the structure of strategy (pp.3-18); chap 2 adding
value (pp19-32) and chap 13 the value of competitive advantage
(pp.192-218) (Prestigious English attempt to define success in terms of
abnormal profit i.e. added value).
Lecture
18

Restructuring for capital and against labour

Select at least 1 from:

Jensen, M. (1998) The takeover controversy: analysis and evidence: in
Stern, J.M. and Chew, D.H. (eds), The Revolution in Corporate Finance (3rd
edition, 1998) Oxford: Blackwell, pp.351-377. (disciplining managers, from
an agency point of view).
Shleifer A. and Summers L H (1988) Breach of trust in hostile takeovers
in Auerbach, A. J. (ed) Corporate Takeovers: Causes and Consequences,

14

Chicago: University of Chicago Press, pp.33-68. (takeover as a breach of

implicit contracts with workers and suppliers).
Froud, J., Haslam, C., Johal, S. and Williams, K. (2000) Restructuring for
shareholder value and its implications for labour Cambridge Journal of
Economics, Vol. 24, pp. 771-797 (using accounting data from a
redistribution perspective).
Froud, J, Haslam C, Johal S and Williams K (2001) Accumulation under
conditions of inequality, Review of International Political Economy, Vol. 8,
No 1, Spring, pp. 66-95 (identifies UK and US shareholders as households
in the top 40% by income).
Lecture
19

The Banking Crisis: The New Economy, Private Equity

and Hedge Funds and how they change business
calculations

The readings should be read in conjunction with those on Financialization

and shareholder value.
CRESC (2009) An alternative report on UK banking reform, a special
interest report from the Centre for Research on Socio Cultural Change.
Available from the CRESC website)
Bischoff, W. and Darling, A. (2009), UK international financial services the
future: A report from UK based financial services leaders to the
Government, HM Treasury, London. (Available from the HM Treasury
website)
Wigley, B. (2008), London: winning in a changing world, Merrill Lynch
Europe Limited.
Lecture
20

Synthesis: sustainable advantage and what

management can do?

15