Managers must develop the resources and capabilities needed to gain and sustain advantage in competitive markets. The way in which organizations attempt to develop such competitive advantage constitutes the essence of their strategy. This course on strategic management presents theories, principles, techniques and models of organizational and environmental analysis, that allow future managers to formulate a successful competitive and corporate strategy.

Fran Ackermann is a Professor in the Management Science Department at Strathclyde University, Scotland. She is interested in the role that group decision support systems and cause mapping can play in supporting the development and implementation of strategy. She has worked extensively with both public and private organizations from a consultancy/action research basis, helping groups work together more effectively, develop a sense of shared meaning and begin to negotiate towards action. She has written widely in strategy, operational research and information systems arenas. With Colin Eden she is the author of Making Strategy: The Journey of Strategic Management (Sage, 1998).


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Mark Jenkins is Professor of Competitive Strategy and Director of the DBA programme at Cranfield School of Management, UK. Prior to joining Cranfield he worked for the Lex Service Group and Massey Ferguson Tractors Ltd. His teaching focuses on the areas of competitive strategy, knowledge management and innovation. His consulting activities reflect these specializations, where he has worked throughout Europe, the USA and in parts of the Far East and Middle East. In addition to his work at Cranfield he has been a visiting Professor in Strategic Management at the University of Colorado and has contributed to the MBA programme at Warwick Business School. He is currently researching the role of knowledge and innovation in the development of Formula One motor sport. He has published and presented a wide range of work in the areas of strategy and marketing. He is a founding editor of the Journal of Marketing Practice,[Page xv]a member of the editorial review board for the European Journal of Marketing and is author of The Customer Centred Strategy (Pitman, 1997).

Gerry Johnson is Professor of Strategic Management at the University of Strathclyde Graduate School of Business, Scotland. After graduating from University College London, he worked for several years in management positions in Unilever and Reed International before becoming a management consultant. He taught at Aston University Management Centre, where he obtained his PhD, and Manchester Business School before joining Cranfield School of Management in 1988, where he remained until taking up his current appointment in 2000. Professor Johnson is co-author of Europe's best-selling strategic management textbook, Exploring Corporate Strategy (Prentice Hall, 5th edn, 1999) and co-editor of a book series that develops themes in that text. He is also author of Strategic Change and the Management Process, editor of Business Strategy and Retailing, The Challenge of Strategic Management and Strategic Thinking, author of numerous papers on strategic management and a member of the editorial board of the Strategic Management Journal. His research work is primarily concerned with processes of strategy development and change in organizations. He also works extensively as a consultant at a senior level on issues of strategy development and strategic change with UK and international firms and public sector organisations.

Phyllis Johnson is a Research Fellow at the Graduate School of Business, University of Strathclyde, Scotland. She gained her MSc and PhD from Cranfield University. Her PhD addressed shared thinking in top management teams and its impact on the strategic decision-making process. She is a chartered psychologist and works as a psychotherapist for HM Naval Base Clyde. Her areas of interest are top team interaction and emotional life in organizations, in particular in the corporate board. She has presented her work at many international conferences and contributed chapters to several key research texts in the field. She acts as a reviewer for the British Journal of Management, the Journal of Management Studies and the Journal of Occupational and Organizational Psychology.

Yuri Mishina is a doctoral student in organizational behavior with a minor in strategic management at the University of Illinois at Urbana-Champaign, USA. His research interests lie in the intersections of strategy, [Page xvi]entrepreneurship and cognition. Current projects explore the social construction of capabilities, symbolic protests within an institutional framework, the tactics of challenge and delegitimation, and the effects of resources, strategies and environments upon rates of growth.

Timothy G. Pollock is an Assistant Professor in the Management and Human Resources Department at the University of Wisconsin-Madison, USA. Pollock's research focuses on the role that social and political factors, such as reputation, social networks and power, play in shaping executive compensation, corporate governance activities and market transactions. He is also interested in exploring how the cognitive processes of managers interact with firm resources to affect the performance and survival of high-growth firms. Pollock's research has been published in Administrative Science Quarterly, Human Communication Research, the Journal of Organizational Behavior, the Corporate Reputation Review, the British Journal of Management and the Academy of Management Executive.

Olaf G. Rughase is a partner with Panlogos GmbH, Offenbach, Germany, a strategy consulting firm. Prior to his consulting activities, he worked for Deutsche Bank Germany, Dresdner Bank Brazil and several other companies in Germany and the United States. He is completing his doctoral studies at the University of Witten-Herdecke, Germany. His research interests include strategic change, issue management and cognitive contributions to strategy theory.

This paper examines how established firms use their core competences to diversify their business by exploring and ultimately developing green technologies. In contrast to start-ups dedicated to a green mission, diversifying into green markets by developing new products based on existing core competences has proven to be challenging. This is because the exploration processes to find a match between green technology opportunities and internal competences is complex and new to most established firms. This paper gains insights into exploration processes for green technologies and the learning modes and outcomes linked to these processes. We examined exploration processes at the microlevel in an embedded case study of an engineering firm using a combination of the "fireworks" innovation process model and organizational learning theory. First, we found that developing green technologies involves a long-term exploratory process without guarantee of (quick) success and likely involves many exploration failures. Second, as exploration unfolds along multiple technology trajectories, learning occurs in individual exploration paths (on-path), when new paths are pursued (path-initiation), and when knowledge from one path is spilled over to subsequent paths (across-paths). Third, to increase their chances for success, firms can increase the efficiency of exploration by fostering a failure-friendly organizational culture, deliberately experimenting, and purposefully learning from failures.

What does space exploration have to do with business strategy? More than you'd think. The Economist recently featured Peter Madsen, BYU assistant professor of organizational behavior and strategy, for his research using orbital launch attempts to investigate how organizations learn from both successful and failed ventures.

Organizational behavior and strategy faculty at Brigham Young University were ranked fourth in the nation for their 2009 publications in the top academic journals of the field, according to a list published by the University of Texas at Dallas.

Claremont Graduate University honored Warner P. Woodworth, professor of organizational leadership and strategy at Brigham Young University, as the first Peter F. Drucker Centennial Global Entrepreneur in Residence. e24fc04721

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