Ebook PDF Strategic Management 5th Australia Edition by Graham Hubbard PDF

(eBook PDF) Strategic Management 5th
Australia Edition By Graham Hubbard

Visit to download the full and correct content document:
https://ebooksecure.com/download/ebook-pdf-strategic-management-5th-australia-edi
tion-by-graham-hubbard/
STRATEGIC
STRATEGIC management
management
Thinking, Analysis, Action
Graham Hubbard, John Rice and Peter Galvin
Thinking, Analysis, Action Hubbard, Rice and Galvin

5th edition
5th edition
Copyright © Pearson Australia (a division of Pearson Australia Group Pty Ltd) 2015 – 9781486010806 - Hubbard/Strategic Management 5e
CVR_HUBB0806_05_SE_CVR.indd 1 30/06/14 11:47 AM

A01_HUBB0806_05_SE_FM.indd Page 7 02/07/14 4:27 PM user /203/PE01789/9781486010806_HUBBARD/HUBBARD_STRATEGIC_MANAGEMENT5_SE_9781486010806 ...
CONTENTS vii
Summary 224
End of chapter questions 224
Chapter 8 Dynamic competitive strategy 227

An introduction to game theory and its applications to competitive strategy 229
A general multi-competitor framework of business relationships:
the PARTS model 233
Some specific games: the case of hypercompetition 239
Industry evolution 245
Sustainability and dynamic competitive strategy 246
Summary 248
PART 2—Corporate strategy 251

Chapter 9 Corporate/multi-business strategy 252
The golden rules for corporate strategy 253
Reasons for developing corporations: the diversification process 255
The four questions (4Qs) of corporate strategy 257
The central role of the corporate centre: how to add value 258
How is diversification ‘related’? 259
Unrelated diversification 268
Implementation: head office role and size 270
Advantages claimed for diversification 271
Evidence of success 272
Evaluating the performance of a multi-business portfolio 275
Summary 279
Chapter 10 Acquisitions and alliances 283

Acquisitions 285
Managing the integration process 292
Alliances 299
Divestment 310
Summary 311
Chapter 11 International strategy 314

Forces leading to the internationalisation of business 315
Why go international? 316
Barriers to international expansion 318
Four international strategic options 319
Alternative international strategic options 324
Implementing international business strategy 329
Sustainability and international strategic options 336
Summary 336
viii CONTENTS
PART 3—Implementation 339

Chapter 12 Capabilities, systems and structure 340
A model of strategic implementation: what to change 342
Capabilities 347
Systems 348
Structure 358
Non-traditional structures 362
Summary 369
Chapter 13 Leadership, people and culture 372

Leadership 373
People 383
Culture 388
Perception 394
Communication 396
Corporate governance: the role of the board of directors 398
Ethics 403
Sustainability and implementation 404
Summary 404
Chapter 14 Change management 408

Perspectives on change 409
A general model of the process of change management 412
Incremental change processes 416
Transformational change processes 420
Change over time: punctuated equilibrium change 423
Resistance to change 425
Summary 429
Cases 433
Case 1 The ore wars: the Australian iron ore industry 434
Case 2 Coursera and MOOCs: what is the business model? 450
Case 3 Taylors Wines: from good to great? 467
Case 4 Berry Street: we never give up 484
Case 5 Cochlear: Hear now. And always 498
Case 6 Main Roads Western Australia: rebuilding organisational capabilities 508
Case 7 BHP Billiton: managing a corporate business portfolio 519
Case 8 Mittal Steel: the takeover of Arcelor 531
Case 9 Renault–Nissan alliance: developing electric vehicles 543
Case 10 Marriott Corporation: a model of distinctive growth 554
Glossary 568
Index 573
This book is different.

Preface
We know you have a choice. Why choose this book to teach strategy at postgraduate or
undergraduate level? The following features will make this book the one you should choose.
General advantages

The text:
is rigorous, yet concise and easy to read

is comprehensive, yet understandable
is theoretically strong, covering all theories and major research, yet has a practical, uni-
fying and integrated theme in the environment–strategy–capability gap analysis model
covers all types of organisations, not just listed companies
incorporates sustainability as an integrated concept for strategy throughout the book
considers dynamic and interactive aspects of strategy over time, as well as the traditional
perspectives
has an effective balance of Australian and international content, both in the text and
the cases
has a great set of cases from renowned international and local case writers
has a set of questions at the end of each chapter to test your knowledge of key concepts.
For postgraduates
The text:
is written with practical usage in mind, highlighting issues that people with experience
will understand
includes worksheets and templates that can be used in real organisations, not just
classrooms
provides challenging alternative perspectives on major strategic issues, so that experi-
enced students have more than one perspective to consider
has access via the website to an outline for preparing a strategic business plan, perhaps
the most used tool in practical strategy.
For undergraduates
The text:
makes strategy concepts comprehensible to students without practical experience

has real life mini-cases to open each chapter, making the material accessible to those
with limited working backgrounds
is theoretically strong, for those seeking to teach and learn from a theoretical perspective
includes learning objectives, illustration capsules of strategy at work, and summaries for
each chapter.
x PREFACE
This fifth edition of Strategic Management: Thinking, Analysis, Action reflects the com-
bination of the major thoughts I have had about the teaching and practice of strategy and
strategic management over the 25 years I have been working in this area. This is the eighth
major strategy textbook I have authored over that period. It reflects the stream of thinking
of all its predecessors. I have tried to capture the developments that I have seen and expe-
rienced in my thinking, research and consulting, as well as to highlight those issues that will
influence strategic thinking and practice in the future.
In this edition, I have worked with Associate Professor John Rice from Griffith University
and Professor Peter Galvin from Curtin University. John researches in areas of strategic
alliances and networks, particularly in technology. Peter has just returned from three years
in the United Kingdom and he has a focus on public sector organisations and the resource-
based theory of strategy. Together, the three of us bring a variety of perspectives to this
book, consistent with the needs of practical strategic solutions. In the title, the term thinking
reflects a critical element of strategy, which is considerably under-emphasised in the field.
Most texts concentrate on developing tools of analysis, but mere mechanical application of
good analytical tools will not give the insights needed for successful strategy development.
It is the thinking in the choice and use of tools, or in understanding the analysis that can
emerge from those tools, which is necessary for analytical success.
The title also emphasises action, or implementation. Three chapters are devoted to this
area of strategy, which is critical for strategy to succeed. Many people can successfully
conduct strategic analysis, but too few can successfully implement strategy, so these three
chapters are very important and might easily have been six, such is the volume of issues
raised.
Though written primarily for Australian or New Zealand students, or students studying
under Australian or New Zealand curricula, whether here or in Asian countries, the book
assumes an international perspective. Virtually all organisations these days are affected by
international issues, whether through suppliers, operations, competitors or customers, but
we view them here from a local perspective.
If desired, the book allows lecturers to take a more theoretical perspective than is nor-
mally possible in strategy texts. This suits undergraduate courses where students have little
practical experience and where conceptual principles are being developed. However, expe-
rience has shown that postgraduate students seeking a more conceptual understanding also
find this emphasis valuable. Chapter 1, in particular, outlines the wide variety of different
theoretical approaches that currently coexist in the strategy field, and uses the assessment
of a common strategic issue to demonstrate how the perspective taken will affect the analy-
sis and resulting recommendations for improvement. While a consistent approach is taken
throughout the book, where possible, each chapter introduces the effects of different theo-
ries to demonstrate to students the importance of understanding the implicit assumptions
they may be making in their own analysis. References to much of the research literature are
included in chapter endnotes for those students or instructors with a research orientation or
wishing to follow up a particular topic.
For undergraduate students, each chapter has learning objectives, opening mini-cases
and illustrative features (called ‘Strategy @ work’) for students and instructors to use. The
learning objectives simply outline the main issues to be covered in the chapter. The opening
mini-cases at the start of each chapter provide small, accessible illustrations of practical
examples of issues covered in the chapter. The ‘Strategy @ work’ illustrative features pro-
vide examples of key ideas.
PREFACE xi
For postgraduate students the book features many practical worksheets, which have
been popular and successful for real strategic analysis and implementation and which I use
in my own consulting practice. Experienced students will find that these worksheets can
be used to develop a practical, but theoretically sound, business plan that actually works!
In this way, we have tried to keep a balance between introducing a strong theoretical and
conceptual background, and making the book valuable to practitioners and experienced
postgraduate students.
The book features chapters on several important practical issues that are not well high-
lighted in most texts:
The book is based on the integrated environment–strategy–capability gap analysis

framework for business strategy analysis. This integrated E–S–C gap analysis approach
favourably surprises most experienced strategy students whose previous experience is
with interesting strategic concepts, but ones that are not well integrated. This E–S–C gap
framework provides a comprehensive integration of strategy concepts at the business
strategy level—the main level for strategy analysis.
We have always found that students have a poor understanding of organisational
performance, despite its fundamental importance to the field. Consequently, a whole
chapter—Chapter 5—covering shareholder value, stakeholder theory, balanced score-
card and sustainability conceptual approaches, together with important practical issues
of presentation, communication and traps in performance communication, is devoted to
this issue.
Chapter 6 includes a practical section on identifying gaps between the elements of the
conceptual analytical framework. This concept is often ignored in texts, but it is very
important—both for organisations with real strategic issues, and for ensuring that a logi-
cal and comprehensive approach is taken—that all the points of analysis are in fact
captured.
Chapter 7 is devoted to decision-making processes, critical to what choices are under-
taken. Consideration of this step in strategic thinking, analysis and action is usually
omitted.
Chapter 8 introduces a higher level of business strategy analysis—dynamic strategic
interactions between competitors played out over time—using game theory principles as
the theoretical base.
Chapter 10 is devoted to the very important issues of mergers and acquisitions and
alliances, including their implementation. These strategic activities are now integral to
the growth, development and performance of organisations.
Chapter 11 addresses international strategy issues, which are now commonplace for
most organisations, whether in terms of production, sales or suppliers.
Chapters 12 to 14 cover the undervalued implementation process, which is vital for true
success in strategic management.
A practical framework for preparing a business plan—one of the most important practi-
cal tasks for many students who become involved in strategy within their organisations—
is accessible on the website. This issue of great practical importance is rarely addressed
in texts.
Opening mini-cases begin each chapter to bring life to the issues in the chapter.
The issue of sustainability is incorporated specifically in each chapter, recognising the
new environment that organisations will have to deal with in the future.
xii PREFACE
Throughout the book, the findings of our major research into long-term successful organ-
isations in Australia (Hubbard, Samuel, Cocks & Heap, 2007, The First XI: winning
Organisations in Australia, 2nd ed, Wiley 2007) are included.
Ten brand-new cases have been written, covering a wide variety of international and
Australian situations, industries and organisation types.
In terms of producing this edition in particular, we would like to thank Delyth Samuel
(University of Melbourne), Sandie de Wolf (Berry Street), Chris Roberts (Cochlear), Mitchell
Taylor (Taylors Wines) and John Taya (Main Roads WA) for their assistance in developing
new cases for this book. We would also like to thank Elise Carney, Katherine Horsey, Ber-
nadette Chang, Kim Morgan, and Kathryn Lamberton for their roles in the various stages of
the publishing process. Their enthusiastic support and efficient and helpful processing has
been greatly appreciated!
We hope that this fifth edition of the book continues to be well received by instructors
and students, and we encourage you, the reader, to provide us with direct feedback in the
hope of continuing to improve the ideas incorporated here and their representation in future.
Graham Hubbard
ghubbard@bigpond.net.au
<http://grahamhubbard.com.au>
About the authors

Graham Hubbard
Graham Hubbard was Professor of Strategic Management in the School of Business at the

University of Adelaide. Previously he was Head of the Graduate School of Business at the Uni-
versity of Adelaide, Professor of Strategic Management at Mt Eliza Business School and Head
of the Marketing Group at RMIT University. He has also taught at Monash, Melbourne, Deakin
and Swinburne Universities in Australia, Cranfield School of Management in the UK and the
Carlson School of Management, University of Minnesota. He has consulted to many organisa-
tions, including AAMI, IAG, Medtronic Australia, BHP Billiton, Monash University, the
National Wine Centre, Chartered Institute of Purchasing and Supply, Taylors Wines and CGU.
Graham Hubbard is the author or co-author of numerous books, mainly in the area of
strategic management, including The first XI: winning organisations in Australia and
Practical Australian strategy and three books of case studies of real organisations designed
for MBA and executive programs. He is the co-designer of the Environment-Strategy-
Capability (ESC) Gap Analysis strategic framework, the Performance Cube and sustainable
balanced scorecard organisational performance measurement frameworks and the Win-
ning Wheel framework for managing winning organisations.
In 2013, Graham was awarded a Citation of Excellence—one of only 50 in the world—for
his article, ’Measuring organizational performance: beyond the triple bottom line’.
Professor Hubbard holds a PhD from the University of Melbourne, for his work ’A strate-
gic analysis of takeover behaviour in Australia’, an MBA from Cranfield University, UK and
BEc from the University of Adelaide.
John Rice
John Rice is an Associate Professor in Strategic Management at Griffith University’s Gold
Coast campus. He has previously worked at the Universities of Adelaide, South Australia
and Canberra. He has taught at undergraduate and postgraduate levels for more than two
decades, in Australia, Singapore, Hong Kong and China. He has authored three strategic
management texts and numerous teaching cases in the strategy area.
John’s research interests include innovation, strategic management, climate change and
education policy. He has worked in an executive leadership role in a government research
agency and has also worked in local government and funds management. He has published
widely, including more than fifty refereed journal articles in many leading academic journals.
John’s PhD (in strategic alliance management) was awarded by Curtin University. He has
other postgraduate degrees from the University of Adelaide, QUT and Griffith University.
Peter Galvin
Peter Galvin is Professor of Strategic Management at the Graduate School of Business,
Curtin University and has held the roles of Deputy Dean and MBA Director at the same. He
has previously held positions in Newcastle Business School, Northumbria University,
xiv ABOUT THE AUTHORS
California Polytechnic State University (part of the California State University system) and
Queensland University of Technology (QUT). Peter has held visiting positions at Ilmanau
University of Technology (Germany), ESC Toulouse (France) and the Hariman School of
Management, State University of New York, at Stony Brook. Outside of these positions,
Peter has taught in South Africa, Malaysia, Singapore, Brunei, Indonesia, Hong Kong and
Thailand.
Peter has won university and faculty level teaching awards and in 2009 was a recipient
of a National Citation for ’Outstanding Contribution to Student Learning’ from the
Australian University Learning and Teaching Council. Peter has subsequently been an
assessor for the same organisation to assist in determining the winners of different national
teaching awards.
In 2011, Peter moved into the role of Editor-in-Chief of the Journal of management and
organization (Cambridge University Press) following a period as an Associate Editor. His
research covers a range of strategic management topics has been published in a number of
outlets ranging from the Journal of business ethics to Managerial and decision economics.
Peter has supervised over 20 doctoral students to successful completion of their degrees.
Prior to moving into academia, Peter worked in management consulting and he contin-
ues to consult through Curtin to a range of local and international organisations. He has
been a Board member of the Australian and New Zealand Academy of Management and is
a member of the Strategic Management Society and the Academy of Management.
Peter has PhD and BCom (Hons) from the University of Western Australia.
M01_HUBB0806_05_SE_C01.indd Page 1 09/05/14 7:33 PM user /203/PE01789/9781486010806_HUBBARD/HUBBARD_STRATEGIC_MANAGEMENT5_SE_9781486010806 ...
PART 1
Business strategy
Chapter 1 What is ‘strategy’?
Chapter 2 analysing business strategy: creating value
Chapter 3 analysing the external environment
Chapter 4 analysing the organisation’s resources and

capabilities
Chapter 5 Measuring strategic organisation performance
Chapter 6 Gap analysis and business-level strategic options
Chapter 7 Strategic decision making
Chapter 8 Dynamic competitive strategy
CHAPTER 1
What is ‘strategy’?
Your learning objectives for this chapter are to be able to:
• define strategy
• highlight the major aspects that are essential to strategy
• understand the development of strategic thought
• identify the major theoretical approaches to strategy
• identify three levels of strategy
• understand a model of business strategy analysis and management
• explain why strategy might be different in countries with smaller economies
Chapter 1 What is ‘strategy’? 3
Facebook and ‘strategy’

The 2010 film, The Social Network, captured the heady early days of Facebook. Established in a dorm
room at Harvard University in autumn 2003 by Mark Zuckerberg, few could have predicted the ebul-
lient years ahead for what was to become an extraordinary success story.
When Facebook was established, it was aimed only at Harvard University students, before opening
to other university students and later to anyone over 13 years of age. Today, it is truly global in reach,
with members from every nation.
According to its March 2013 accounts, Facebook had more than 1.1 billion users, 4000 employ-
ees, US$5 billion annual revenues (mostly from advertising, not from individual users), around US$2.5
billion in annual earnings fit and a listed market value of over US$60 billion.
So what is Facebook’s ‘strategy’? Several different representations of Facebook’s ‘strategy’ are
given by its organisation and its people, and by analysts. Facebook itself says that its mission ‘is to give
people the power to share and make the world more open and connected.’ Many people think of it as
a social networking facilitation organisation. More prosaically, its steady stream of ‘traffic’ makes it a
valuable place to advertise just about anything. Some see Facebook’s strategy as being a hub site for
customer interaction through the internet—with Facebook offering a means by which they will connect
by voice and video with one another, further driving regular visits by their customers to the site. But it
is also the largest gaming organisation in the world and some analysts think it could be a new breed
of telco. Or is Facebook’s strategy to be an open technology platform—a digital content exchange
platform for social networking? Clearly it does a lot of things and does them very well to attract such a
large global market.
Additionally, when the Facebook IPO was launched on the NASDAQ stock exchange, founder
Mark Zuckerberg, who still owns more than 20% of the shares and has more than 50% voting rights,
posted a vision statement of sorts on his own Facebook profile page. He said:
People use Facebook to stay connected with friends and family, to discover what's going on in the
world, and to share and express what matters to them.
Contrary to the financial aims of most traditional organisations, Zuckerberg, aged 27, said in his letter
to potential IPO investors:
We don't build services to make money. We make money to build better services.
In many ways, Facebook is a new breed of company that challenges our notions of what it means
to have an organisational strategy. Its growth was so steep and unexpected that its corporate leaders
had to continuously go back to the drawing board, thinking again about what it could, and should,
aim to achieve with its access to its 1 billion regular users.
It has deep and complex competencies in programming and in the commercialisation of content.
Facebook saw off early challengers by MySpace and others, and now dominates the social networking
‘industry’. As such, it is in a position to create, to a great degree, its own strategic destiny.
In accounting, every organisation uses the same income statement, balance sheet and cash flow
statement, in the same format. In marketing, everyone learns the same 4 Ps and the expanded 7 Ps. But
with strategy, each company has a different view of what strategy is, what content it embraces, how it
is expressed. What is Facebook’s strategy? Is it a good strategy? What makes it ‘good’? Or is it just
very good at doing things? If it does have a good strategy, which would help to explain its phenomenal
performance, why is it so hard to agree on it?
4 part 1 Business strategy
‘Strategy’ defined and its major aspects

This book is about the key concepts, issues, techniques and tools involved in strategic think-
ing, analysis and action. As you will see, there are many different definitions of ‘strategy’.
strategy We define strategy as:
Those decisions
Those decisions that have high medium-term to long-term impact on the activities of the
that have high
organisation, including the analysis leading to the resourcing and implementation of those
medium-term to
long-term impact decisions, to create value for key stakeholders and to outperform competitors.
on the activities of This definition highlights seven aspects of strategy:
the organisation,
including the 1 Strategy is about decision making—with decisions based on rational analysis of organi-
analysis leading to sations, their customers and their industry competitors. Because strategic decisions are
the resourcing and based on future expectations and are wide ranging in their effects, uncertainty is always
implementation of present. It is always tempting to seek more information before making a decision.
those decisions, However, a complete set of relevant information is never available. Strategy is not
to create value for simply about analysis. It involves action. For strategic action to occur and for strategy to
key stakeholders be implemented, decisions must be made.
and to outperform 2 Strategy is about long-term impacts of important decisions for the organisation.
competitors.
Strategy involves commitment.1 Strategic decisions cannot easily be reversed and have
long-term impacts (positive or negative) once they are made. Such decisions might
include what product range to sell, which geographic market to serve, where to locate
operating facilities, how to structure the compensation/reward system, what activities to
outsource/insource, or what information systems to use.
But what is the definition of ‘long term’? ‘Long term’ depends on the nature of the
industry. In high-tech industries with short product life cycles, two years may be long
term. In other industries, such as resources, the decision to develop a resource can take
several years before production can commence, so 10 years may be long term. As a rule
of thumb, in practice we find that three years normally qualifies as long term for strategic
plans and decisions for most organisations.
3 Strategy is about ‘organisations’ and not simply ‘businesses’ or ‘corporations’. Strategy
principles and practice are needed for all types of organisations—large and small,
private and public, profit and not-for-profit (NFP). The development and focus of
strategy will vary according to organisation type. We see ‘businesses’ as a subset of
the more general ‘organisations’. For businesses, profits and shareholders are more
important than for other types of organisations, but stakeholders, performance and
beating competitors (current or potential) are important for all organisations.
4 Strategy is about creating value for customers and key stakeholders. Organisations do
not carry out activities for their own interest. They carry them out because customers
and key stakeholders want them to, or need them to, perform those activities. Organisa-
tions in the same industry with different types of customers and key stakeholders will
carry out different activities and act differently, because they will have different views
of what is value/valuable.
5 Strategy is about the integration and focus of organisation functions. Strategic decisions
are designed to impact on the whole organisation, not just a particular function or
activity. Decisions about what particular geographic market to serve do not simply
affect the marketing function. They also affect operations (where to produce), logistics
(how to store and transport to serve the market), personnel (which market to hire in),
finance (where to locate accounting) and other functions.
6 Strategy is about implementation of the decisions. While many organisations are good
at strategic thinking and analysis, if they do not implement, they will not achieve the
expected outcomes from their strategy. Many organisations want to be ‘world class’
or ‘number 1’, but very few achieve it. Implementation—often the forgotten part of
strategy—is critical to successful strategy. This aspect is the ‘management’ part of
strategic management.
7 Strategy is about outperforming competitors. If the organisation is satisfied being a
‘me-too’ competitor, it does not need strategy. It simply needs to copy its competitors’
actions unthinkingly. However, if the organisation does nothing different, it is unlikely
to create any special value for its customers and key stakeholders. Most restaurants
and cafes are good examples of organisations where strategy is either not used or not
wanted (but consider the McDonald’s restaurant and Starbucks coffee shop chains
as examples of applying strategy to those industries). The end purpose of strategy
is to do something better than competitors and so to outperform them. Public sector
organisations often do not have ‘competitors’, but their work can be outsourced, and
they can be closed down, privatised or opened up to competition, so even public sector
organisations in monopoly positions need to consider what might happen if they are
not efficient.
Strategy @ work 1.1 on Singapore Airlines gives an example of some of the strategic
decisions that have resulted in Singapore Airlines being consistently voted one of the best
airlines in the world for many years.
Together, the elements of strategy aim to assist an organisation to achieve its long-term
aims, which is the essence of operating an organisation, whatever its size or nature.
STRATEGY @ WORK 1.1 ThE BuSinESS STRATEGY Of SinGApORE AiRlinES And hOW iT iS
SuppORTEd BY funcTiOnA l STRATEGiES
Singapore Airlines’ (SIA’s) business strategy is to anywhere in the global industry), its modern and
deliver the highest quality of customer service that technologically leading fleet, its support for high-
is safe and reliable, and to deliver a satisfactory quality, fast-service maintenance, catering, train-
return to its shareholders. Consistent strategic deci- ing and other support facilities from having a
sions have been taken over more than 40 years strong home base at Changi Airport in Singapore
that have created a highly successful company in (an airport renowned for high-quality customer
an industry that is dogged by volatility and poor service) and strong long-term capital support from
performance.2 the Singapore government (helping to avoid short-
SIA’s core competency is its service excellence. term industry volatility). This set of consistent, glo-
This is based on its innovation capabilities (in bally benchmarked functional strategies has
terms of continually upgrading its service quality enabled SIA to rise from nothing to global industry
on and off board), its aligned and supportive leader and retain its position over the last 15
human resource management practices (focusing years. SIA’s recent development of entering the
on customer service excellence), its diversified glo- low-cost sector of the industry through launching
bal revenue base (meaning it is not impacted by Silk Air and Tiger Airways demonstrates continued
regional downturns and is aware of new trends product innovation as the market changes.
However, the essential question in strategy is not just achieving its aims but:
Why do some organisations perform better than others?
For individual organisations, this translates to:
How can my organisation perform better than my competitors?
Some organisations perform better than their competitors, whatever their aims are. For
instance, some sports teams perform better than others consistently, over long time periods:
for example, Manchester United, Real Madrid and Inter Milan in football; Australian swim-
ming and cricket teams; New Zealand rugby teams and Chinese gymnastics teams. Strat-
egy is concerned with understanding what factors enable such outperformance, highlighting
the thinking, analysis and action that brings those results, whatever the field of endeavour,
and implementing them appropriately in our own organisation.
In this chapter, we first outline how the field of strategy has developed and built its
ideas over its relatively short history as an identifiable academic discipline. We then out-
line the wide variety of current theoretical perspectives in the discipline. It is the existence
of this wide variety of perspectives and the lack of agreement in the field that causes us to
be cautious about the use of the term ‘strategy’ in the title of this chapter and throughout
the book.3
Next, we discuss the three levels of strategy that exist within a typical organisation. We then
outline the environment–strategy–capability gap analysis model of strategic thinking, analysis
and action that we will use as the main framework for discussion in this book. Finally, since the
development and most of the main concepts of strategy have originated in the United States, a
country with a large economy, we consider to what extent the concepts, issues and solutions of
strategic management might be different for countries with small economies, which is pertinent,
in fact, to most countries in the world. We also consider how strategy is developed in China,
given the important role China and Chinese organisations now play in most industries.
Strategic management is an exciting subject, critical for delivering good performance for
most organisations. It requires understanding and integration of material from functional
areas such as marketing, operations, human resources, finance, accounting and information
technology, which you have probably already studied.
A warning, however! Strategy looks easy, but it requires an understanding of and an
ability to integrate and manage many variables in a world of rapid change, widening scope
and uncertainty about the future. It requires an ability to critically evaluate—and not just
accept—analysis, and to be flexible and adaptable as organisation circumstances change in
the dynamic world in which we live. In fact, it is very difficult to be a good strategist and to
implement good strategy. This book will help you to understand the nature of strategy and
improve your strategic skills.
The development of strategic thought: a brief history

Strategy as the task of the top manager
The history of strategy can be traced to the military in ancient times. Sun Tzu’s The Art of
War dates back to 500 BC, while stories from Greek and Roman military campaigns dem-
onstrate the importance of strategy.4 However, as an academic discipline, the first books in
the field are considered to be the Learned, Christensen, Andrews and Guth book devel-
oped for teaching business policy at the Harvard Business School5 and Ansoff’s book on
corporate planning,6 both published in 1965. The essence of the model in both books was
to match the internal resources and capabilities of the organisation (referred to then as the
organisation’s strengths and weaknesses) with the demands of the environment (referred
to then as its opportunities and threats). Crafting the resulting organisational strategy was
seen as the province of the chief executive officer. The CEO had to evaluate the organisa-
tion’s position, decide which strategy to choose and arrange for implementation of that
strategy (see Figure 1.1).
fiGuRE 1.1 Strategy as the task of the top manager
External Internal
appraisal appraisal
Threats and Strengths and

opportunities weaknesses of
in environment organisation
Key success Distinctive

factors competences
Creation of strategy
by top management
Social Top management

responsibility values
Evaluation and
choice of strategy
Implementation
of strategy
Source: Based on Mintzberg, H 1990, ‘The design school: reconsidering the basic premises of strategic management’, Strategic
Management Journal, 11:171–95.
This model, along with the continuing work of the staff at the Harvard Business School
where the model originated, has remained enormously influential in the field.7 Described as
complex by its originators, it is viewed by others as a simple model because:
it is linear, with implementation following strategic analysis

it presumes that all strategic information is available to the top management, originally
perceived to be only the CEO
it presumes that the enormously complex environment that exists outside the organisa-
tion can be satisfactorily analysed and summarised
it presumes that the future is closely related to the past, so that analysis of past perfor-
mance is a useful guide to future action.8
This model was appropriate for developing strategy in a generally favourable post-
World War II environment, where satisfying demand was a major theme for most organisa-
tions. It led to the development of long-range planning, which was based on the extrapolation
of existing or known trends. The position of corporate planner was created and planning
departments came into existence in organisations at this time to assist the CEO with the
detailed tasks of strategic planning.
Development of corporate strategy and associated techniques

In the late 1960s, many industries in the United States underwent a conglomerate diversifi-
cation merger and acquisition wave. As a result, many multi-business corporations emerged
as they sought growth within other industries to avoid anti-trust laws, which discouraged
high market shares in any particular industry. However, the techniques of strategy at this
time were largely designed for business strategic analysis and it was unclear what tech-
niques or processes a multi-business corporation could use to determine its multi-business,
or corporate, strategy. As a result, in the period of the late 1960s and early 1970s, consulting
firms developed business portfolio techniques for multi-business corporations. For instance,
the Boston Consulting Group (BCG) developed a 2 × 2 market growth/relative market share
matrix, which categorised businesses as dogs, question marks, stars or cash cows, depend-
ing on the analysis of their relative positions. From this analysis, corporations tried to bal-
ance their portfolio mix of businesses.
BCG also developed the concept of the experience curve, which showed that unit costs in
some industries declined with accumulated volume of production because of productivity
improvements occurring due to cumulative production experience. This encouraged corpora-
tions to go for size to develop economies of scale. The Profit Impact of Market Strategy (PIMS)
industry analysis, which related profitability of a firm within an industry to market share and
other operating variables, was also developed.9 Profitability was found to be related to mar-
ket share, which also encouraged corporations to seek size growth. Notably, each of these
concepts was developed by large-scale empirical data analysis, rather than having any
underlying theoretical base from which scientific hypotheses could be developed and tested.
Focusing on industry and competitive analysis

In 1980, building on his industrial organisation economics background, Porter produced a
book which changed the focus of strategic analysis.10 The industrial organisation field of
economics deals with the structure of markets, the conduct of firms in those markets and the
industry performance that results. This structure–conduct–performance model of economics
assumes that firms largely replicate each other and that industry performance depends on
the structure of the market. In this model, firms are seen as little more than ‘black boxes’
following paths determined by market structures.
Porter turned this deterministic economic model on its head and concluded that manag-
ers within firms could use a variety of tools to make unique decisions that would influence
conduct within the industry and even influence the structure of the industry. Firms could
position themselves within an industry by offering products or services that gave them a
sustainable competitive advantage, which would enable them to achieve superior perform-
ance to that of competitors.
The persistence of differing profit levels by firms within an industry had long worried
economists, who dismissed it as a short-term phenomenon. Porter’s work suggested that it
could be a long-term phenomenon. The ‘five forces’ model of industry analysis that he
developed (see Chapter 3) focused managers on analysing their industries, but used a range
of standard microeconomic tools to isolate ways for firms to achieve a sustainable competi-
tive advantage.
In 1985, Porter produced another book which focused more on the specifics of how to
compete within an industry. He suggested that there were only three generic strategies—
low delivered cost, differentiation and focus—available for achieving sustainable competi-
tive advantage.11 Organisations needed to adopt one of these three strategies to outperform
competitors. This concept was equally influential in the field and remains so today.
In 1990, Porter completed a third book, this time focusing on how countries could
develop appropriate structures so that whole industries made up of clusters of competing
but cooperating firms, and not just isolated large ‘national champion’ firms, could be
internationally competitive.12 Based on extensive empirical analysis of internationally
competitive industries in a variety of countries, this book moved the previously domesti-
cally focused industry analysis to the issue of how internationally competitive firms and
industries were developed, an issue which has become more and more important over
the last 25 years as trade barriers between countries and regions have been progres-
sively reduced.
Another focus from this work was on how networks or clusters of firms in the same
industry, supported by government policy setting, cooperated and competed to develop
international competitive advantages for the whole industry. This led to the development of
a strategic focus on the value of networks of organisations and of strategic alliances.
Focusing internally: the resource-based view

In 1990, Prahalad and Hamel's concept of the ‘core competence’ of an organisation, cou-
pled with work by Wernerfelt and Barney, developed the concept that strategy could be
developed from within, by leveraging the resources of the organisation.13, 14 Unlike tradi-
tional economics, the assumptions of what became known as the resource-based view of
the firm were that firms in an industry were heterogeneous and unique in their makeup
due to the specific set of resources available to each firm. Resources, including tangible
and intangible assets and know-how, could, if well managed, be ‘bundled together’ to
form a unique and defensible portfolio of capabilities that would sustain competitive
advantage over time.
Since resources were not perfectly mobile between organisations due to asset specificity,
stickiness, transaction costs, sunk costs and information asymmetry, sustainable competi-
tive advantage based on this heterogeneity could well remain for long periods without
being eroded by the competition.
Extending to dynamic processes and capabilities: learning

and knowledge
Both the industry analysis and the resource-based views have been criticised as providing
only a static analysis of the current position of organisations. They do not explicitly address
the issues of (externally) how competition will develop in the future and (internally) how
current resources have been developed and how necessary future resources will be
developed.
In 1990, Senge developed the concept of the learning organisation, based on systems
theory.15 He argued that organisations should not simply react to observed problems, but
should understand the systemic cause(s) of the problem and address those causes. For
instance, poor quality could be ‘solved’ by introducing quality inspectors. However, a better
solution would be to find/learn what caused the poor quality (e.g. substandard machinery,
untrained workers, poor-quality raw materials) and fix that, rather than introduce extra
processes and extra costs, such as checking procedures.
Senge’s work, together with the focus on the total quality management (TQM) move-
ment at the time, led many organisations to focus on processes and the role of learning
within the organisation as a cause of strategic success. In 1997, after studying organisations
that had survived for centuries, de Geus argued that the main reason most organisations did
not survive for very long (12.5 years on average) was that they had a ‘learning disability’
and were unable to adapt or evolve.16
In the late 1990s, the concept of dynamic capabilities was developed to investigate how
firm capabilities could emerge over time. Eisenhardt and Martin noted that capabilities
needed to be developed dynamically over time through careful processes of accumulation
or investment and unlearning or divestment.17
A knowledge-based view of strategy was also developed, focusing on the organisational
knowledge of the organisation (in the form of operational know-how, organisational cul-
ture, routines, documents, etc.) as an important organisational resource.18 This approach
emphasised knowledge as a special, unique and complex capability that could create com-
petitive advantage by itself.
External focus revisited

In 1994, Hamel and Prahalad, reacting against the operationally-oriented focus of TQM and
benchmarking, argued that, while improving operational efficiency, this would not lead to
any sustainable competitive advantage. They argued that organisations should be con-
cerned with stretching themselves for the future of their industry, rather than having others
create the future for them.19
This approach stressed the important roles of innovation and growth for those organi-
sations that wanted to survive in an increasingly uncertain and fast-changing world. Inno-
vation was necessary to stay ahead of competitors, even if a competitive advantage had
been obtained. Growth was necessary, simply to hold one’s position. Failure to grow
would mean that the organisation would actually decline or slip back relative to
competitors.
Also focusing on the external drivers of strategy, some authors argued that the rate of
change was resulting in more intense competition and the loss of any long-term sustaina-
ble competitive advantage, the assumed Holy Grail of strategy. In 1994 D’Aveni, applying
Another random document with
no related content on Scribd:
The Project Gutenberg eBook of How to become
a scientist
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.
Title: How to become a scientist

Giving interesting and instructive experiments in
chemistry, mechanics, acoustics and pyrotechnics
Author: Aaron A. Warford
Release date: August 30, 2023 [eBook #71522]
Language: English
Original publication: New York: Frank Tousey, 1900
Credits: Demian Katz, Craig Kirkwood, and the Online

Distributed Proofreading Team at https://www.pgdp.net
(Images courtesy of the Digital Library@Villanova
University.)
*** START OF THE PROJECT GUTENBERG EBOOK HOW TO

BECOME A SCIENTIST ***
Transcriber’s Notes:
The Table of Contents was created by the transcriber and placed in the public
domain.
Additional Transcriber’s Notes are at the end.
CONTENTS
How to Become a
Scientist.
Pneumatic Amusements.
Amusements in
Mechanics.
Arithmetical Amusements.
How to Become a
Chemist.
Acoustics.
Fireworks.
How to Become a Scientist.
GIVING
Interesting and Instructive Experiments

IN
CHEMISTRY,
Mechanics, Acoustics
AND
PYROTECHNICS.
ALSO CONTAINING
MATHEMATICAL PROBLEMS and PUZZLES

BOTH
USEFUL AND AMUSING.
New York:
FRANK TOUSEY, Publisher,
24 Union Square.
Entered according to Act of Congress, in the year 1900, by
FRANK TOUSEY,
in the Office of the Librarian of Congress at Washington, D. C.
How to Become a Scientist.
Chemistry, optics, pneumatics, mechanics, and mathematics, all
contribute their share towards furnishing recreation and sport for the
social gathering, or the family fireside. The magical combinations
and effects of chemistry have furnished an almost infinite variety of
pleasant experiments, which may be performed by our youthful
friends with great success if a little care be taken; and the other
branches of natural science are nearly as replete with interest.
The following repertoire of such tricks and illusions will be found
exceedingly complete, although pains have been taken to select only
the best and most startling of them. A large number are entirely new,
but are described with sufficient clearness to enable any person of
ordinary intelligence to become expert in them, with a little practice.
Chemical Amusements.
Chemistry is one of the most attractive sciences. From the beginning
to the end the student is surprised and delighted with the
developments of the exact discrimination, as well as the power and
capacity, which are displayed in various forms of chemical action.
Dissolve two substances in the same fluid, and then, by evaporation
or otherwise, cause them to reassume a solid form, and each
particle will unite with its own kind, to the entire exclusion of all
others. Thus, if sulphate of copper and carbonate of soda are
dissolved in boiling water, and then the water is evaporated, each
salt will be reformed as before. This phenomenon is the result of one
of the first principles of the science, and as such is passed over
without thought; but it is a wonderful phenomenon, and made of no
account, only by the fact that it is so common and so familiar.
It is by the action of this same principle, “chemical affinity,” that we
produce the curious experiments with
Sympathetic Inks.
By means of these, we may carry on a correspondence which is
beyond the discovery of all not in the secret. With one class of these
inks, the writing becomes visible only when moistened with a
particular solution. Thus, if we write to you with a solution of the
sulphate of iron, the letters are invisible. On the receipt of our letter,
you rub over the sheet a feather or sponge, wet with a solution of
nut-galls, and the letters burst forth into sensible being at once, and
are permanent.
2. If we write with a solution of sugar of lead, and you moisten with a
sponge or pencil, dipped in water impregnated with sulphureted
hydrogen, the letters will appear with metallic brilliancy.
3. If we write with a weak solution of sulphate of copper, and you
apply ammonia, the letters assume a beautiful blue. When the
ammonia evaporates, as it does on exposure to the sun, the writing
disappears, but may be revived again as before.
4. If you write with the oil of vitriol very much diluted, so as to prevent
its destroying the paper, the manuscript will be invisible except when
held to the fire, when the letters will appear black.
5. Write with cobalt dissolved in diluted muriatic acid; the letters will
be invisible when cold, but when warmed they will appear a bluish
green.
We are almost sure that our secrets thus written will not be brought
to the knowledge of a stranger, because he does not know the
solution which was used in writing, and, therefore, does not know
what to apply to bring out the letters.
To Light a Candle Without Touching the Wick.

Let the candle burn until it has a good long snuff; then blow it out
with a sudden puff, a bright wreath of white smoke will curl up from
the hot wick. Now, if a flame be applied to this smoke, even at a
distance of two or three inches from the candle, the flame will run
down the smoke and rekindle the wick in a very fantastic manner. To
perform this experiment nicely, there must be no draught or
“banging” doors while the mystic spell is rising.
Magic Milk.
Lime-water is quite transparent, and clear as common spring water;
but if we breathe or blow into it, the bright liquid becomes opalescent
and as white as milk.
The best way to try this simple experiment is to put some powdered
quicklime into a wine bottle full of cold water; shake them well
together, now and then, for a day; then allow the bottle to remain
quiet till the next day, when the clear lime-water may be poured off
from the sediment. Now fill a wine-glass or tumbler with the lime-
water thus made, and blow through the liquid with a glass tube, a
piece of new tobacco-pipe, or a clean straw, and in the course of a
minute or so—as the magicians say—“the water will be turned into
milk.” By means of this pastime “Wise Men” can ascertain which
young ladies are in love and which young gentlemen are not. With a
shrewd guess they present, as a test, a glass of lime-water to the
one and of pure water to the other, with unerring effect.
The Mimic Vesuvius.

This experiment is a demonstration of the heat and light which are
evolved during chemical combination. The substance phosphorus
has a great affinity for oxygen gas, and wherever it can get it from it
will, especially when aided by the application of heat. To perform this
experiment, put half a drachm of solid phosphorus into a Florence
oil-flask, holding the glass slantingly, that the phosphorus may not
take fire and break the glass; pour upon it a gill and a half of water,
and place the whole over a tea-kettle lamp, or any common lamp
filled with spirits of wine; light the wick, which should be about half an
inch from the flask; and as soon as the water is boiling hot, streams
of fire, resembling sky-rockets, will burst at intervals from the water;
some particles will also adhere to the sides of the glass, immediately
displaying brilliant rays, and thus continue until the water begins to
simmer, when a beautiful imitation of the aurora borealis will
commence and gradually ascend until it collects into a pointed cone
at the mouth of the flask; after a half a minute, blow out the flame of
the lamp, and the apex of fire that was formed at the mouth of the
flask will rush down, forming beautiful illumined clouds of fire, rolling
over each other for some time; and when these disappear, a
splendid hemisphere of stars will present itself. After waiting a
minute or two, light the lamp again, and nearly the same phenomena
will be displayed as at the beginning. Let a repetition of lighting and
blowing out the lamp be made for three or four times, so that the
number of stars may be increased; and after the third or fourth act of
blowing out the lamp, the internal surface of the flask will be dry.
Many of the stars will shoot with great splendor from side to side,
while others will appear and burst at the mouth of the flask. What
liquid remains in the flask will serve for the same experiment three or
four times, without adding any water. Care should be taken, after the
operation is over, to put the flask in a cool and secure place.
The Real Will-o’-the-Wisp.

Into a small retort place about an ounce of strong liquor of potash;
that is, pure potash dissolved in water, together with about a drachm
of phosphorus. Let the neck or beak of the retort dip into a saucer of
water, say half an inch deep; now very gently heat the liquid in the
retort with a spirit-lamp until it boils. In a few minutes the retort will be
filled with a white cloud; then the gas generated will begin to bubble
at the end of the saucer; a minute more, each bubble, as it issues
from the boiling fluid, will spontaneously take fire as it comes into the
air, forming at the same time the philosopher’s ring of phosphoric
acid. Care is required in handling phosphorus; but our young
chemical readers will, we think, not forego this wonderful experiment
for the want of due attention; for, without proper care on their part,
we must give up showing them wonders even greater than these.
The Paper Oracle.

Some amusement may be obtained among young people by writing,
with common ink, a variety of questions, on different bits of paper,
and adding a pertinent reply to each, written with nitro-muriate of
gold. The collection should be suffered to dry, and put aside, until an
opportunity offers for using them. When produced, the answers will
be invisible; desire different persons to select such questions as they
may fancy, and take them home with them; then promise, if they are
placed near the fire during the night, answers will appear written
beneath the questions in the morning; and such will be the fact, if the
paper be put in any dry, warm situation.
The Mimic Gas-House.

This shows a simple way of making illuminating gas, by means of a
tobacco-pipe. Bituminous coal contains a number of chemical
compounds, nearly all of which can, by distillation, be converted into
an illuminating gas; as with this gas nearly all our cities are now
lighted in the dark hours of night. To make it, obtain some coal-dust
(or walnut or butternut meats will answer), and fill the bowl of a pipe
with it; then cement the top over with some clay; place the bowl in
the fire, and soon smoke will be seen issuing from the end of the
stem; when that has ceased coming apply a light and it will burn
brilliantly for several minutes; after it has ceased, take the pipe from
the fire and let it cool, then remove the clay, and a piece of coke will
be found inside: this is the excess of carbon over the hydrogen
contained in the coal, for all the hydrogen will combine with carbon at
a high temperature, and make what are called hydrocarbons—a
series of substances containing both these elemental forms of
matter.
Alum Basket.
Make a small basket, about the size of the hand, of iron wire or split
willow; then take some lamp-cotton, untwist it, and wind it around
every portion of the basket. Then mix alum, in the proportion of one
pound with a quart of water, and boil it until the alum is dissolved.
Pour the solution into a deep pan, and in the liquor suspend the
basket, so that no part of it touch the vessel or be exposed to the air.
Let the whole remain perfectly at rest for twenty-four hours; when, if
you take out the basket, the alum will be found prettily crystallized
over all the limbs of the cottoned frame.
In like manner, a cinder, a piece of coke, the sprig of a plant, or any
other object, suspended in the solution by a thread, will become
covered with beautiful crystals.
If powdered tumeric be added to the hot solution, the crystals will be
of a bright yellow; if litmus be used instead, they will be of a bright
red; logwood will yield them of a purple, and common writing-ink, of
a black tint; or, if sulphate of copper be used instead of alum, the
crystals will be of fine blue.
But the colored alum crystals are much more brittle than those of
pure alum, and the colors fly; the best way of preserving them is to
place them under a glass shade, with a saucer containing water.
This keeps the atmosphere constantly saturated with moisture, the
crystals never become too dry, and their texture and color undergo
but little change.
The Magic Bottle.

This trick, if well managed, is one of the most wonderful that can be
performed in a drawing-room without apparatus; but it requires
dexterity at the conclusion.
The person performing the trick offers to pour from a common wine-
bottle, port-wine, sherry, milk, and champagne, in succession, and in
any order.
To accomplish the trick, you must make solutions of the following
chemicals, and label the bottles with numbers, thus:
No. 1. A mixture of two parts perchloride of iron, and one part
sulphuric acid (vitriol).
No. 2. A strong solution of the sulphocyanate of potash.
No. 3. A strong solution of acetate of lead.
No. 4. A solution of bicarbonate of soda, or potash.
No. 5. A clear solution of gum arabic.
Procure a champagne-bottle, and wash it out well; then pour three
teaspoonfuls of No. 1 into it. As the quantity is very small, it will not
be observed, especially if you are quick in your movements. Pour
some distilled or rain water into a common water-bottle, or jug, and
add a tablespoonful of No. 5 to it; then set it aside, ready for use.
Provide some wine-glasses, of four different patterns, and into one
pattern put one drop of solution No. 2; into another, three drops of
solution No. 2; rinse the third with solution No. 3, and the fourth with
solution No. 4.
Arrange the glasses on a small tray, remembering the solutions that
were poured into each pattern.
Everything being ready, take the champagne bottle that you have
prepared, from two or three others, and holding it up, to show the
company that it is clear and empty; you must desire some person to
hand you the water-bottle or jug, and then fill up the bottle with the
water.
Pour some of the contents of the bottle into an unprepared glass, in
order to show that it is water; then say: “Change to champagne,” and
pour the liquid from the bottle into one of the glasses rinsed with No.
4; then pour into the glass containing three drops of No. 2, and it will
change to port wine; but if poured into the glass rinsed with No. 3, it
will change to milk; and if into the glass with one drop of No. 2, it will
produce sherry.
Be careful in pouring the fluid from the bottle, not to hold it high
above the glasses, but to keep the mouth of it close to the edges,
otherwise persons will observe that it undergoes change of color
after it is poured into them; and, on this account, the glasses should
be held rather high.
As all the solutions used in the above trick are deleterious, they
should not be left about in the way of children, and, of course, the
fluid in the wine-glasses must not even be tasted; but if any of the
company wish to drink the wines you have made, then the tray must
be adroitly exchanged for another with the proper wines placed on it.
The Faded Rose Restored.

Take a rose that is quite faded, and throw some sulphur on a
chafing-dish of hot coals; then hold the rose over the fumes of the
sulphur, and it will become quite white; in this state dip it into water,
put it into a box, or drawer, for three or four hours, and when taken
out it will be quite red again.
The Protean Liquid.

A red liquor, which, when poured into different glasses, will become
yellow, blue, black, and violet, may be thus made: Infuse a few
shavings of logwood in common water, and when the liquor is red,
pour it into a bottle; then take three drinking-glasses, rinse one of
them with strong vinegar, throw into the second a small quantity of
pounded alum, which will not be observed if the glass has been
newly washed, and leave the third without any preparation. If the red
liquor in the bottle be poured into the first glass it will assume a straw
color; if into the second, it will pass gradually from bluish-gray to
black, provided it be stirred with a bit of iron, which has been
privately immersed in good vinegar; in the third glass the red liquor
will assume a violet tint.
The Changeable Ribbon.

Dip a rose-colored ribbon into nitric acid, diluted with eight or ten
parts of water, and as soon as the color disappears, which it will do
in a short time, take out the ribbon and put it into a very weak
alkaline solution, when the alkali will quickly neutralize the acid, and
the color will reappear.
The Chemical Chameleon.

Put a drachm of powdered nitrate of cobalt into a vial, containing an
ounce of the solution of caustic potash, when the decomposition of
the salt, and precipitation of a blue oxide of cobalt will take place.
Cork the vial, and the liquid will assume a blue color, from which it
will pass to a lilac, afterward to a peach tint, and finally to a light red.
Musical Flame.
Fit a good cork into a wine-bottle; burn a hole through the cork with a
round iron skewer, and into it fix a piece of tobacco pipe about eight
inches long. Put into the bottle about two or three ounces of zinc, in
slips, such as the waste cuttings from a zinc-worker; now pour water
on to the zinc until the bottle is more than half full; then add about
three parts of a wine-glassful of sulphuric acid (oil of vitriol); this
causes a rapid effervescence at first, but which subsides to a
moderate and continuous boiling for a lengthened period; as soon as
the boiling is regular, the cork with the pipe through it may be
inserted into the bottle. If a light be placed to the end of the pipe, a
flame will be produced, which will continue to burn so long as there
is any visible action in the bottle. This flame is the ignited hydrogen
gas (water gas), resulting from the decomposition of water by the
acid and zinc, and as such is an exceedingly interesting experiment.
Now, to be musical, procure a glass or metal pipe, about sixteen or
eighteen inches long, and from half to three-quarters of an inch in
diameter; place the tube over the flame, and allow the pipe to be
about three to five inches up the tube, which will act as a kind of high
chimney; it must be held perfectly steady and upright, at a particular
distance up the tube, which varies according to the size of the flame.
A beautiful sound is thus produced, similar to an organ-pipe. This
sound, or “musical flame,” varies in note according to the diameter of
the tube, being deeper or more bass as the tube is increased in size.
By using various-sized tubes, different sounds are thus readily
produced. The true explanation of this singular experiment remains
yet to be solved.
Optical Amusements.
The science of optics affords an infinite variety of amusements,
which cannot fail to instruct the mind, as well as delight the eye. By
the aid of optical instruments we are enabled to lessen the distance
to our visual organs between the globe we inhabit and “the wonders
of the heavens above us;” to watch “the stars in their courses,” and
survey at leisure the magnificence of “comets importing change of
times and states;” to observe the exquisite finish and propriety of
construction which are to be found in the most minute productions of
the earth;—to trace the path of the planet, in its course around the
magnificent orb of day, and to detect the pulsation of the blood, as it
flows through the veins of an insect. These are but a few of the
powers which this science offers to man; to enumerate them all
would require a space equal to the body of our work; neither do we
propose to notice the various instruments and experiments which are
devoted to purposes merely scientific; it being our desire only to call
the attention of our juvenile readers to such things as combine a vast
deal of amusement with much instruction, to inform them as to the
construction of the various popular instruments; to show the manner
of using them, and to explain some of the most attractive
experiments which the science affords. By doing thus much, we
hope to offer a sufficient inducement to extend inquiry much further
than the information which a work of this nature will enable us to
afford.
The Camera Obscura.

This is a very pleasing and instructive optical apparatus, and may be
purchased for a small sum. But it may be easily made by the young
optician. Procure an oblong box, about two feet long, twelve inches
wide, and eight high. In one end of this a tube must be fitted
containing a lens, and be made to slide backward and forward, so as
to suit the focus. Within the box should be a plain mirror, reclining
backward from the tube at an angle of forty-five degrees. At the top
of the box is a square of unpolished glass, upon which, from
beneath, the picture will be thrown, and may be seen by raising the
lid. To use the camera, place the tube with the lens on it opposite to
the object, and having adjusted the focus, the image will be thrown
upon the ground glass, as above stated, where it may be easily
copied by a pencil or in colors.
The Magic Lantern.

The object of this ingenious instrument is to represent, in a dark
room, on a white wall or cloth, a succession of enlarged figures of
remarkable, natural, or grotesque objects. It consists of a tin box,
with a funnel on the top, and a door on one side of it. This funnel, by
being bent, serves the double purpose of letting out the smoke and
keeping in the light. In the middle of the bottom of the box is placed a
movable lamp, which must have two or three good lights, at the
height of the center of the polished tin reflector. In the front of the
box, opposite the reflector, is fixed a tin tube, in which there slides
another tube. The sliding tube has, at its outer extremity, a convex
lens fixed in it, of three inches in diameter. The focus of the smaller
of these lenses may be about five inches. Between the stationary
tube and the lamp, there must be a split or opening to admit of the
passage of glass sliders, mounted in paper or wooden frames, upon
which sliders it is that the miniature figures are painted, which are
intended to be shown upon the wall. The distinctness of the enlarged
figures depends not only upon the goodness of the magnifying glass,
but upon the clearness of the light yielded by the lamp. It may be
purchased ready made of any optician.
To Paint the Glasses.—The slides containing the objects usually
shown in a magic lantern are to be bought of opticians with the
lantern, and can be procured cheaper and better in this way than by
any attempt at manufacturing them. Should, however, the young
optician wish to make a few slides, of objects of particular interest to
himself, he may proceed as follows: Draw on a paper the subject you
desire to paint. Lay it on a table or any flat surface, and place the
glass over it; then draw the outlines with a very fine pencil, in varnish
mixed with black paint, and, when dry, fill up the other parts in their
proper colors. Transparent colors must be used for this purpose,
such as carmine, lake, Prussian blue, verdigris, sulphate of iron,
tincture of Brazil wood, gamboge, etc.; and these must be tempered
with a strong white varnish, to prevent their peeling off. Then shade
them with black, or with bistre, mixed with the same varnish.
To Exhibit the Magic Lantern.—The room for the exhibition ought to
be large, and of an oblong shape. At one end of it suspend a large
sheet, so as to cover the whole of the wall. The company being all
seated, darken the room, and placing the lantern with its tube in the
direction of the sheet, introduce one of the slides into the slit, taking
care to invert the figures; then adjust the focus of the glasses in the
tube, by drawing it in or out, as required, and a perfect
representation of the object will appear.
Effects of the Magic Lantern.—Most extraordinary effects may be
produced by means of the magic lantern; one of the most effective of
which is a tempest at sea.
This is effected by having two slides painted, one with the tempest
as approaching on one side, and continuing in intensity till it reaches
the other. Another slide has ships painted on it, and while the lantern
is in use, that containing the ships is dexterously drawn before the
other, and represents ships in the storm.
The effects of sunrise, moonlight, starlight, etc., may be imitated
also, by means of double sliders; and figures may be introduced
sometimes of fearful proportions.
Heads may be made to nod, faces to laugh; eyes may be made to
roll, teeth to gnash; crocodiles may be made to swallow tigers;
combats may be represented; but one of the most instructive uses of
the slides is to make them illustrative of astronomy, and to show the
ratio of the seasons, the cause of the eclipses, the mountains in the
moon, spots on the sun, and the various motions of the planetary
bodies and their satellites.
The Phantasmagoria.
Between the phantasmagoria and the magic lantern there is this
difference: in common magic lanterns the figures are painted on
transparent glass; consequently the image on the screen is a circle
of light, having figures upon it; but in the phantasmagoria all the
glass is opaque, except the figures, which, being painted in
transparent colors, the light shines through them, and no light can
come upon the screen except that which passes through the figure.
There is no sheet to receive the picture, but the representation is
thrown on a thin screen of silk or muslin, placed between the

Ebook PDF Strategic Management 5th Australia Edition by Graham Hubbard PDF

Uploaded by

Copyright:

Available Formats

You might also like

Ebook PDF Strategic Management 5th Australia Edition by Graham Hubbard PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ebook PDF Strategic Management 5th Australia Edition by Graham Hubbard PDF

Uploaded by

Copyright:

Available Formats

(eBook PDF) Strategic Management 5th

Australia Edition By Graham Hubbard

Graham Hubbard, John Rice and Peter Galvin

Thinking, Analysis, Action Hubbard, Rice and Galvin

CVR_HUBB0806_05_SE_CVR.indd 1 30/06/14 11:47 AM

Chapter 8 Dynamic competitive strategy 227

PART 2—Corporate strategy 251

Chapter 10 Acquisitions and alliances 283

Chapter 11 International strategy 314

PART 3—Implementation 339

Chapter 13 Leadership, people and culture 372

Chapter 14 Change management 408

This book is different.

 is rigorous, yet concise and easy to read

 makes strategy concepts comprehensible to students without practical experience

 The book is based on the integrated environment–strategy–capability gap analysis

About the authors  

xiv ABOUT THE AUTHORS

Chapter 1 What is ‘strategy’?

Chapter 2 analysing business strategy: creating value

Chapter 3 analysing the external environment

Chapter 4 analysing the organisation’s resources and

Chapter 5 Measuring strategic organisation performance

Chapter 6 Gap analysis and business-level strategic options

Chapter 7 Strategic decision making

Chapter 8 Dynamic competitive strategy

Your learning objectives for this chapter are to be able to:

• highlight the major aspects that are essential to strategy

• understand the development of strategic thought

• identify the major theoretical approaches to strategy

• identify three levels of strategy

• understand a model of business strategy analysis and management

• explain why strategy might be different in countries with smaller economies

Chapter 1 What is ‘strategy’? 3

Facebook and ‘strategy’

4 part 1 Business strategy

‘Strategy’ defined and its major aspects

Chapter 1 What is ‘strategy’? 5

6 part 1 Business strategy

Why do some organisations perform better than others?

For individual organisations, this translates to:

How can my organisation perform better than my competitors?

The development of strategic thought: a brief history

Chapter 1 What is ‘strategy’? 7

 fiGuRE 1.1 Strategy as the task of the top manager

Threats and Strengths and

Key success Distinctive

Social Top management

8 part 1 Business strategy

 it is linear, with implementation following strategic analysis

Development of corporate strategy and associated techniques

Focusing on industry and competitive analysis

Chapter 1 What is ‘strategy’? 9

Focusing internally: the resource-based view

10 part 1 Business strategy

Extending to dynamic processes and capabilities: learning

External focus revisited

Title: How to become a scientist

is rigorous, yet concise and easy to read

makes strategy concepts comprehensible to students without practical experience

The book is based on the integrated environment–strategy–capability gap analysis

About the authors

fiGuRE 1.1 Strategy as the task of the top manager

it is linear, with implementation following strategic analysis

Development of corporate strategy and associated techniques

Focusing on industry and competitive analysis

Focusing internally: the resource-based view

External focus revisited