Book reviews
The third aspect of the aesthetic dimension is
the ability to lead mythologically. As a typology
the authors present an overview of the Greek
gods and their virtues. So, there is for instance
the god Athena. She seems nearly perfect, except
her lack of emotion that leaves her remote from
the people who revere her. From her Olympian
vantage point she has a strategic overview. At
the same time she is not fully connected with
every day life. According to the authors, for
instance Shapiro, the CEO of Monsanto, can be
identified as an Athena type. They illustrate this
with several quotes. One of the citations of
Shapiro that, to my opinion, perfectly fits to the
Athena character, although the authors presented
it in the context of ‘dramatizing leadership’, is
the following: ‘We are entering a time of per-
haps unprecedented discontinuity. Businesses
grounded in the old model will become obsolete
and die. At Monsanto we are trying to invent
some new businesses around the concept of en-
vironmental sustainability. We may not yet know
exactly what those businesses will look like, but
we’re willing to place some bets because the world
cannot avoid needing sustainability in the long
run’ (HBR, 1997). This double use of a quote, in
this case both in the context of ‘leading mytholo-
gically’ and ‘dramatizing leadership’, indicates the
subjective character of the authors’ method of
interpretation and labelling as well as the plural
character of CEO’s opinions and behaviour.
Contemporary Strategy Analysis (5th ed.). Edi-
ted by Robert M. Grant, Blackwell Publishing,
2004, ISBN 1405119985 hardback, 1405119993
paperback, d65 hardback, d29 softback, pp
548.
Cases to Accompany Contemporary Strategy
Analysis (5th ed.). Edited by Robert M. Grant,
Blackwell Publishing, 2004, ISBN 14051 2408 3,
d22.99, pp 377.
This popular text has now moved into its fifth
edition and has a companion text titled Cases to
Accompany Contemporary Strategy Analysis.
Previous readers of this latter text may recognise
the format as Cases in Contemporary Strategy
Analysis. The new title reflects a tighter fit with
the text book and as such, its primary role is to
548 R&D Management 36, 5, 2006
This brings me to a critical remark next to my
appreciation and overall positive evaluation of
the book. The authors see both creativity (as
represented by the artist) and ethics (as repre-
sented by the priest) as two aesthetic domains.
I don’t see any reason for this conceptual combi-
nation of creativity and ethics under the heading
of aesthetic leadership. Even more, it is rather
confusing. It is a pity that ethics, seen as a
subcategory of aesthetics, lacks the importance
and attention that it serves and needs these days.
That counts for western countries as well as for
eastern European countries.
A methodological point relates to the norma-
tive impact of the HBR-interviews. The authors
discuss this already themselves, and they conclude
as follows: ‘It seemed to us that, in the interviews
with CEO’s, HBR names the gods and goddesses
and produces, disseminates and protects their
mythology. Furthermore, the theories, concepts,
ideas, stories and heroes selected by HBR’s edi-
tors for inclusion in their magazine provide key
elements of modern management mythology’.
As a final conclusion I may say that the book
reflects both a conceptual and practical interest
regarding modern leadership. And, although it
lacks its own sound and recent empirical basis, it
is really worthwhile reading it.
OLAF FISSCHER
University of Twente
complement the new fifth edition of the text. That
is not to say that the ‘cases’ book cannot stand
alone because it can. It just makes sense to take
advantage of the author’s consideration and
thought in selecting cases which illustrate the
key points in his main text.
I will confess to liking this text from the outset
as its stated aim is ‘to equip managers and
students of management with the core concepts,
frameworks and techniques of strategic manage-
ment which will allow them to make better
decisions both for their companies and them-
selves’. In other words, this is not a theory text
for theory sake and that can’t be a bad thing.
Many writers are quite able to produce a text
which is deep in obscure theory, intellectual
gymnastics and mathematical equations to show
off their misguided belief that numbers are the
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only thing which counts in business, but will all
that make a difference to a firm’s performance? If
not, then that produces a truly inaccessible text
which is of no practical use to anyone. Texts like
this abound in the strategic management field.
Robert Grant has produced no such text and his
effort to explain and analyse different approaches
to differing business and market situations is to be
applauded. Throughout the text the author draws
attention to two driving forces evident in business
today and they are competition and turbulence.
This affects how a firm might be able to achieve
competitive advantage and determines not only
how many, but which, routes might be open for
consideration. The link between strategy formu-
lation and strategy implementation is afforded
great attention which is not normally the case.
Often, a text can run out of steam when it gets to
the implementation stage. Of great concern these
days are issues of ethics and standards of beha-
viour. As the author contends, this does not
necessarily negate the view of strategy as a profit
driver, but it does pay attention to the wider
context within which strategy is implemented.
The author himself does not promise significant
originality in this text, but the application of
concepts, frameworks, theories and ideas is well
accomplished. This in itself makes this text stand
out from the crowd.
Part I introduces the concept of strategy and
provides a good overview of the process. The
author brings in such hoary chestnuts as: what is
wrong with SWOT? The military tendency of
most strategic language and the meaning of
strategy, yet the emphasis is still current, with
the goal being to understand how the historical
concepts can aid strategic decision making.
The evolution of strategic planning is traced
from the 1950s which saw budgetary planning,
financial budgeting and systems running the firm
to the early 2000s where innovation, alliances,
networks and co-operation strategies dominate
the thinking. The delineation between corporate
and business strategy is explained, as are the
various levels within a firm which will affect the
decision making powers of those concerned.
A mature discussion ensues regarding how
strategy is made. This is an interesting use of
words and not one which is usually made. I am
reminded of a very famous photographer who
rather than talk about taking photographs talked
about making photographs. The distinction
was quite clear in his mind. The former was a
mechanical act and the latter was more of a
creative process. In that respect, the author is
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Book reviews
putting a marker down in the sand, in that his
stance is one of creating strategy, not robotically
engineering it.
Part II concentrates on the tools of strategic
analysis embracing, goals, values and perfor-
mance measures within a firm, industry analysis,
competitive analysis, resource/capability analysis
alongside structure and management systems re-
views. The author, having claimed nothing espe-
cially new in the text, does introduce additional
concepts such as the balanced scorecard and also
provides a comprehensive ‘value metrics’ frame-
work which should keep the accountants happy!
The various roles of how stakeholders, share-
holders and accounting drive influences are iden-
tified and discussed reminding the reader that
they simply cannot do just as they wish in this
process. In most cases, there are the objectives of
others to be taken into account.
The usual frameworks such as industry analy-
sis, segmentation analysis are debated fully, as is
strategic group analysis, with game theory and
competitor analysis given some attention within
this section. One might argue that in today’s
dynamic strategic decision making world, the
latter two topics perhaps deserve a little more
attention but then again, where do you stop? A
similar focus is placed on resource and capability
analysis, including knowledge management and
organisational structure options. This gives a
rounded approach to the ‘what do we want to
do?’ and ‘can we do it?’ conundrum. Several
applied examples are given in this section to
illustrate the points made.
Part III looks at the analysis of competitive
advantage. This is perhaps the more predictable
section of the book as the focus is on cost vs
differentiation. No author in their right mind is
going to leave this out, and ours is no exception,
but I do wonder if it is really necessary to work
through each and every possible method again, as
well as the good old value chain? In any case, it is
about time that somebody pointed out that dif-
ferentiation is nothing more than segmentation
on a grander scale. Such decisions, along with
product range and customer service offerings
which deliver such an advantage, generally lie
within the realms of the marketing function,
rather than the corporate strategy framework.
Without an understanding and intimate knowl-
edge of the finer points of the marketing strategy,
such decisions, taken in isolation, could be posi-
tively dangerous to the firm’s health.
Of significantly more value is Part IV where
different industry contexts are identified and
R&D Management 36, 5, 2006 549

Book reviews
evaluated. A thorough discussion on industry
evolution is provided and attention is drawn to
a plethora of influencing factors such as under-
standing demand growth along with the creation
and diffusion of knowledge. More familiar con-
cepts such as product differentiation, industry
structure, international trade and alternative ap-
proaches to understanding the dynamics of an
industry are provided. One of the more recent
issues for managers in technology-based indus-
tries has been the management of innovation and
the challenge of disruptive technology. This is
handled in some detail with again, an entire
chapter devoted to the profitability of innovation,
the process and mechanisms for the effective
protection of innovation. Risk management and
alternative strategies to exploit innovation are
discussed fully.
The author refers to work done by Clayton
Christenson in this respect and interested readers
may enjoy his latest text ‘Seeing What’s Next’
which focuses on using theories of innovation to
predict industry change.
The timing of innovation and the persistent
dilemma of whether to lead or follow is debated
with some interesting examples of differing sce-
narios and the eventual outcome. It is interesting
to see from this that followers appear to win more
frequently than leaders so maybe there are lessons
for us all here. The organisational characteristics
of an ‘operating’ style are contrasted with an
‘innovating’ style of firm, which gives a good
indication of the type of management style which
is most effective in each case.
It is commonly believed that most industries in
the western world are in maturity, if not satura-
tion with respect to demand and growth potential.
As such, to have a chapter devoted on how to
achieve competitive advantage in such circum-
stances is valuable. It also addresses strategies for
declining markets, another tough nut to crack. It
is in these circumstances that the finer points of
strategy really start to take effect. Ways of achiev-
ing cost advantages are explained: economies of
scale, low-cost inputs, low overhead management,
asset surgery, product and market pruning. In a
cost-driven industry, sometimes it is more profit-
able to de-market the product than to support
non-economical segments. Altough decisions
have to be made.
Incremental and piecemeal production invest-
ment is needed to take full advantage of what
might be a minimal ‘per unit’ saving but when
multiplied across the entire production capacity,
becomes a significant bottom line contribution.
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Corporate strategy and its multi-faceted
agenda is addressed in Part V. The scope and
requirements for vertical integration, value
chains, cost/benefit analyses and relationship de-
sign are covered in much greater detail than
normally seen. Consideration is also given on
how the overall motives of growth, risk reduction
and profitability can be achieved through diversi-
fication. A historical perspective is provided and
comparisons are drawn between the diversifica-
tion strategies of a sample of Fortune 500 and
larger European firms. A useful road map of the
evolution of management thinking and manage-
ment practice in relation to diversification strate-
gies makes for interesting reading.
As you might expect, global strategies for the
multinational corporation revisit the national
influence on competitiveness debate and run
through familiar models. Throughout this sec-
tion, the emphasis is on relating location for
competitive advantage and addressing the bene-
fits for national differentiation. Options and pat-
terns of how industries have internationalised, as
is the need for consistency between strategy and
national conditions as is the smart identification
of a strong geographical location for production
plants.
The final two chapters are titled ‘managing the
multi-business corporation’ and ‘current trends in
strategic management’. As both these topics are
likely to resonate with most readers, it a shame
that they have been slotted at the end of the text
rather than nearer the front.
Within these final sections the author discusses,
among other topics, portfolio planning, value
creation, SBU strategy formulation, strategic
management styles, corporate style typing,
change drivers, competition and turbulence,
downsizing, complexity theory, capability-based
structures and new modes of leadership.
It could safely be argued that all of these areas
are the foundation for a robust strategy and
should be analysed, addressed and incorporated
into a robust strategy statement for the future
rather than being examined after the event. It is
just a matter of working through the process
logically, and these final two chapters, although
interesting and valuable in themselves, just seem
to be in the wrong place in the interests of creating
a natural flow to the thought process.
Moving on to the cases book we find 17 highly
relevant cases which illustrate the points being
made in the text. Many are suitable for cross-
analysis of themes and can be taught as integrated
cases embracing several concepts. The focus
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throughout though is decision making and not
simply analysis for analysis sake. Being somewhat
shorter than the typical Harvard Business School
case which typically drowns the reader in data
and red-herrings, these cases are entirely suitable
reading for not only the busy executive, but the
lecturer and student looking for an understanding
of a concept in a time constrained environment. It
is not necessary to have pages of data to pose a
sensible question for debate, in fact one could
argue that the mere presence of data focus the
reader on precisely the wrong end of the decision
making continuum. These cases hit the mark just
right.
The subject matter and company names will be
familiar to most and it is good to see a mix of
North American and European firms represented
as well as firms of differing sizes. The line-up is
inviting:-
 Madonna
 Laura Ashley Holding plc: The Battle for
Survival
 The US airline industry in 2004
 Ford and the world automobile industry
 Wal-Mart stores Inc., March 2004
 Eastman Kodak: meeting the digital challenge
 Organisational restructuring within the Royal
Dutch/Shell group
 Harley-Davidson Inc., February 2004
 Online broking strategies: Surviving the
downturn at Merrill Lynch, Charles Schwab
and E* Trade
 EMI and the CT scanner (A) and (B)
 Rivalry in video games
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Book reviews
 Eni SpA: Building an international energy
major
 Bird’s Eye and the UK frozen food industry
 Euro Disney: from dream to nightmare 1987–
1994
 Richard Branson and the Virgin group of
companies in 2004
 General Electric: life after Jack
 AES Corporation: rewriting the rules of man-
agement
The author can take credit for all but two and a
half of these cases so to suggest that he might
know how these fit with the text would potentially
be a significant under-statement. The issues under
consideration within the cases are complex yet
interesting, but isn’t that a fair reflection of
today’s business environment for most firms?
The days of year-on-year steady sales growth
with predictable customer behaviour and a nicely
balanced supply:demand relationship are long
gone.
I commend both books to the interested execu-
tive, the lecturer and the student. There is much of
value within and much to learn.
SHEILA WRIGHT
Leicester Business School
Reference
Clayton, C.M., Scott, A.D. and Erik, R.A. 2004 Seeing
What’s Next, Harvard Business School Press, Bos-
ton, MA, USA, ISBN: 1-59139-185-7.
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