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Strategic Change

Strat. Change, 8, 243±247 (1999)

David Hussey Basic and practical


books on strategic
management:
book review
article

Several books, which are intended mainly most of which was taken up with teaching
for managers rather than students and case studies, but generally if the books were
academics, have crossed my desk recently. I not reporting research into the best way to
thought it would be interesting to discuss a proceed (for example Scott, 1965 and Warren,
few of these, and have rather arbitrarily 1966), they were trying to give guidance to
made my own classi®cation into basic books, managers on how to plan (Argenti, 1968,
usually of around 100 pages, and more Steiner, 1969, and Hussey, 1971, although the
substantial books written for managers. The last book is included because much of it was
criterion for inclusion in this list is that the written in 1969, and because it will appear in
books aim to help managers use existing its ®fth edition next year), or reporting what
concepts. They do not try to present new companies said as they explained their plan-
ideas or approaches, although they may draw ning processes (Steiner, 1963). Even Ansoff,
heavily on the way the author has made the (1965), which many see as the book which laid
concepts work in real situations. the foundations for the study of strategy as a
Books of this type have an honourable subject was aimed at top management.
history, which does not mean that they are all Of course there were more books than I have
of equal merit. Before strategic management listed, particularly towards the end of the
became an academic as well as a practical 1960s, and thereafter the stream became a
subject, most books on strategy or planning ¯ood, until by today the ¯ood has become an
were written with managers in mind. The book ocean.
designed for teaching strategy did not begin to This tradition of writing books which are
become commonplace until the 1970s, and both comprehensive and intelligible, and
books which explored new theories of which set out to help managers apply strategic
strategic management were few and far be- management has continued until the present
tween until the 1980s. In fact in the 1960s, day, although in the 1980s and 1990s there has
when the subject might be said to have begun, also been a vast increase in academic text
there were very few books. Of course someone books (some of which do little more than
may prove me wrong, but I would argue that present theories), and in books which try to
all the books written in this decade were promote the author's new concept and demol-
concerned about the practical aspect of ish all others. As the subject has expanded,
strategic planning. I might allow one exception there has also been an increase in books which
in Christensen, Andrews and Bowers, 1965, focus on one aspect of strategy, such as a

Copyright # 1999 John Wiley & Sons, Ltd. Strategic Change, June±July 1999
244 David Hussey

technique of analysis, implementation, or paperback, 134pp, ISBN 1-86152-192-8, price


acquisition. £10.99. This book has more depth to it than
Layton et al. It is in a series Self development
for Managers, and manages to pack in an
Basic books introduction to many more approaches to
analysis and, in my opinion, its checklists and
Layton, S., Hurd, A. and Lipsey, W., How to questionnaires are better designed to stimul-
Plan Your Competitive Strategy, Kogan Page, ate thinking. The book approaches the task in
London, 1995, paperback, 93pp, ISBN 0-7494- an interesting way. Each chapter describes a
1907-5, price £6.99. The Better Management concept, and at the end of the chapter are
Skills series, in which this book is published, exercises to help the reader apply the con-
now covers many aspects of management. As cepts to a speci®c organization. The method
an author of another of the books in this series, chapters are followed by some exercises to
I know how frustrating it is to an author to pull the thinking together, which lead into
have to compress a complex subject into a chapters on creating the right strategy and
format which does not allow space to explore enacting strategy.
the situations that do not quite ®t the There is a lot packed into this little book.
approaches recommended. The in-built Perhaps the essential difference between this
assumption in this book is that strategy and the previous book can be summarized in
should be determined on a team basis, and the work sheets on external factors. Layton
this of course is far from a universal truth. My et al. have a worksheet which asks readers to
main criticism of the book is that it trivializes list the factors that affect them, classify them as
most things into checklists and questionnaires. political, economic, social or technological,
The danger is that it invites managers to base indicate the impact as positive or negative, and
plans on their perceptions, which are in my add comments: and that is almost all the
experience rarely the same as the reality. guidance given. Swords and Turner take the
Listing strengths and weaknesses is of course reader through aspects of uncertainty based on
important, but the real issue is not whether Ansoff's recent work, and their PEST work-
items can be listed, but whether these are the sheet is much more speci®c about why and
right items. The three information gathering where the event is likely to affect the company.
steps described are SWOT, PEST and compe- There is then more guidance on what all this
titor intelligence, but the number of pages might mean, followed by an exercise to apply
devoted to these is so small that the reader is the thinking in a real situation. Given the
forced to rely on the checklists and guesswork. limitations of its size, I think that the Swords
Having got the information, the assumption is and Turner book does stimulate learning and
that the team should then head off for a group thinking through a large number of concepts
meeting to determine the strategy. The main and methods, and could be helpful to an
good point in the steps recommended is that organization struggling with its strategy.
the authors stress implementation and control,
once a strategy has been determined. I suppose Wooten, S. and Horne, T., Strategic Planning:
it would be possible for a reasonable strategy the Nine Step Programme, Kogan Page,
to be developed using the steps recom- London, 1997, paperback, 128pp, ISBN
mended, if you have managers who can add 0-7494-2060-X, price £12.99. This book is
all the missing initiatives. But if the managers mainly checklists and questionnaires, with
already had enough knowledge to make the little conceptual underpinning. The nine
necessary adaptations to the text, would they steps are knowing what is going on out
be the people reading the book anyway? there, knowing your organization, bringing it
all together, forecasting where you are going,
Swords, D. and Turner, I., Strategy from the deciding where you are going, ®nding the
Inside Out, Thomson, London, 1997, gaps, considering your options, checking it for

Copyright # 1999 John Wiley & Sons, Ltd. Strategic Change, June±July 1999
Book review article 245

sense, and deciding how to do it. This is a public sector planning. I can quote from a
reasonable way of putting the typical planning review of McNamee by Charles Kingsmill,
model into everyday language. There are some which appeared in Strategy, November, 1998
useful things among the prompt sheets and
questionnaires, although some are simplistic. Any manager following the clear method-
For example the prompt sheet on machines in ologies of this book will certainly have
the knowing your organization section asks powerful analysis on his or her side. And
questions about machines but not methods, that would be an excellent starting point to
processes or manufacturing policy. It would setting out to in¯uence everyone else in
be possible to answer every one of the this business.
questions posed, and miss the most important
points about manufacturing capability. In fact This book, written in the tradition of the best
only 10 of the questions on the list are about practical books described earlier, will be
plant: the remaining eight are about the reviewed separately by a reviewer who has
telephone and fax system. no connection with either the author or the
The other danger of prompt sheets is beyond book. The title, by the way, re¯ects the author's
control of the author, in that it is possible for belief that successful strategy interprets the
managers to guess, or put down what they message from the market. The book is not
think. There is no suggestion in the book that restricted to market planning, and gives a
the prompt sheets should be used as a basis for comprehensive view of the development of
objective analysis, or even having to say `how successful strategies.
do you know this' as part of the answer to each
question. In comparison with Swords and Hardy, L., Successful Business Strategy: How
Turner, this book is far behind. Readers might to Win in the Market-place, 2nd edition,
have a better idea of some useful steps in the Windrush Books, Kingsbridge, Devon, 1997,
planning process, will ®nd some questions to 354pp, hardback, ISBN 0-9525626-1-8, price
answer that they may not have thought of, but £18.99. Len Hardy was formerly with Lever
will not know why some of the questions are Brothers, rising to chairman, a position he
important, or how to think things through for held for 10 years. The books falls in the `it
themselves. worked for me so it must be right for you'
category. Although there is some good advice,
the book is woefully de®cient. The blurb on
Practical books the cover is somewhat misleading, in that it
implies that the book is suitable for all
McNamee, P., Strategic Marketing Planning: a businesses and students, and that it includes
Blue Print for Success, Wiley, Chichester, 40 case studies. In fact it is fair to say that the
1998, hardback, 363pp, ISBN 0-471-97932-5, bias of the whole book is to fast moving
price £19.99. This, the ®rst of the three consumer goods, and that there are no normal
comprehensive books I want to mention, is case studies. There are 40 short examples,
one that I cannot with integrity review in drawn from consumer products, mainly
depth, because I am the general editor of the detergents and household cleaning products.
Wiley Practical Series in which it appears. The There is not much of value for any organiz-
practical series is written for managers, but is ations outside of consumer products, and I
`academically respectable', and so will also be would argue no value for many of them.
used in executive development programmes. In one sense Len Hardy has made a notable
Other books in the series include tightly achievement, to write a book about strategy
focused works on the virtual organization without a single diagram, checklist or table,
and business unit strategy, competitor analysis, and with almost no references. Such refer-
and in the pipeline are books on shareholder ences as there are are very old (1955, 1967,
value, multinational strategic alliances and 1970, 1976, 1978, 1980, 1983). While not

Copyright # 1999 John Wiley & Sons, Ltd. Strategic Change, June±July 1999
246 David Hussey

questioning the fact that age does not necess- should consider basic theories and concepts.
arily make a reference invalid, the clock does He accepts that some management consult-
appear to have stopped around 20±25 years ancies have brought new strategy concepts
ago. Consequently there is nothing here on the forward to develop their own businesses, and
ideas of Porter, Hamel and Prahalad, Yip, or that the `best of these have had a strong
Ohmae, to name but a few. in¯uence on the strategic thinking of many
So let's get back to what the book is really businessmen'. But
about. The book explores marketing strategies,
and brand management, within a country The younger manager, making his way up
subsidiary of a multinational, whose products the business ladder, is likely to recognise
are a focused area of fast moving consumer that the literature available to help him form
goods. In such a situation global competition is a practical approach to strategy formulation
handled elsewhere, and businesses operate is indeed very limited. A prime aim of this
solely within the geographical boundaries set book is to provide a series of guidelines to
by the head of®ce. Add to this the particular construct a practical approach.
competitive structure of the consumer deter-
gents industry, and you begin to understand the If the new manager is joining Lever Brothers,
content of the book. If you are a marketing the book may be a good buy. For anyone else,
manager in such a company, you may ®nd the my advice is to save your money and invest it in
chosen scope of the content useful. If you are one of the numerous good books that are
not, but are in fast moving consumer products, available, some of which take a late 1990s view
you will get something out of it, but will notice of strategy, rather than the 1970s view of this
many de®ciencies. If you are in neither book.
situation, there is not much here for you.
Examples of the focus are in the chapters on Aaker, D. A., Developing Business Strategies,
product costs and capacity which, together, are 5th edition, John Wiley & Sons, New York,
as close as Hardy comes to considering 1998, 330 pp, hardback, ISBN 0-471-18364-4,
manufacturing strategy, and in the section on price £25.95. This is a considerably better book
company culture. Manufacturing is considered than the Successful Business Strategy:
very much from the traditional viewpoint of a perhaps Len Hardy should note that it is in its
marketing manager, that is not as a strategic 5th edition, and has clearly been around for
driver. There are sections on traditional cost many years. The target audience for Aaker's
components, such as raw materials, but book is managers, either for practical use
nothing at all on manufacturing methods, within their organizations, or for use on
such as JIT, outsourcing, the focused factory, executive development courses. Where Hardy
lean production, or world class performance. saw strategy as a matter mainly of markets and
Similarly corporate culture is declared as brands, Aaker takes a broader view, covering
important: `There is little doubt that the the choice of product market, the level of
development of a sound company culture can investment, the functional strategies needed to
be a major strength for the business con- compete, and `the strategic assets or compe-
cerned.' (page 199.) Of the three pages tencies that underlie the strategy and provide
devoted to it, one describes the evolution of sustainable competitive advantage.' For all but
Unilever, one is a comparison of the history of the most tightly focused organizations, he adds
Lever and Proctor and Gamble, and one says the allocation of resources between business
nothing of value. The question of how you units, and the development of synergistic
develop a sound culture is ignored. effects across the businesses. This view is
On page 16 he asserts that business schools both practical and realistic.
and universities have concentrated on the The book brie¯y traces the evolution of
more fundamental aspects of strategy formu- strategic approaches through the formal
lation, and that it is appropriate that they system of the 1960s and 1970s, to the greater

Copyright # 1999 John Wiley & Sons, Ltd. Strategic Change, June±July 1999
Book review article 247

¯exibility required by increasing environ- colleges, police forces, and churches. I would
mental turbulence in the 1980s and 1990s. not give such a strong endorsement of the book
The author's term for the modern requirement for these managers, although there would be
is strategic market management, which he something of value for them.
sees as an approach which embraces all the There are no prizes for forecasting which
previous concepts and adds something more. three of the above books will remain on my
This is refreshing, as so many authors seem to bookshelf, and which will be put in the next
feel that their own views can only succeed if charity collection sack delivered to my house.
they demolish everything that has gone before. What this selection of books does show is that
The book therefore deals adequately with the practical and basic strategy segment of the
traditional aspects of strategic planning such as market is still being served and that, as in the
the internal and external appraisal, including past, there is a wide variation in the quality
market and competitor analysis. It adds of what is offered. The three books I have
environmental uncertainty and then moves endorsed all have one thing in common: they
on to ways of obtaining sustainable competi- are written to cover the problems and issues of
tive advantage. There are ®ve chapters on today. I wish I could say the same for some of
different types of strategy, followed by another the other books on the market.
on global strategy. The ®nal two chapters cover
implementation and the planning system, the
latter being supported by examples of planning Biographical note
checklists and questionnaires. There are many
case examples, from various industries. David Hussey has had a long career in the
That's the outline. How well has he com- strategy area in industry and as a consultant.
pleted it? The ®rst point in his favour is that the He has written or edited 25 books on strategy
book is well written in an undogmatic way. In and other aspects of management, and is
general terms the coverage of each chapter is editor of this journal. One of the founders of
comprehensive and helpful. There are weak- the Strategic Planning Society, and a director
nesses. Most techniques are described only at of Japan Strategic Management Society, he is
the conceptual level, and I would challenge also a visiting professor in strategic manage-
anyone to apply the value chain or portfolio ment at Nottingham Trent University.
analysis solely on the strength of what is
written here. He tends to ignore the `soft'
issues: for example, you will not ®nd a great References
deal about people or culture in the imple-
mentation chapter, although he does use a four Ansoff, H. I. (1965). Corporate Strategy, McGraw
sided variant of the Leavitt diamond (people, Hill, New York.
structure, systems, culture) and at least draws Argenti, J. (1968). Corporate Planning: a Practical
attention to the inter relationship of these Guide, Allen & Unwin, London.
matters with each other and with strategy. Christensen, C. R., Andrews, K. R. and Bower,
It is always easy to say what is omitted from a J. L. (1965). Business Policy: Text and Cases,
book, but much harder to say whether some- Irwin, Homewood, Illinois.
thing else should have been left out to keep the Scott, B. W. (1965). Long Range Planning in
American Industry, American Management
overall length to its target. My view is that the
Association, New York.
strength of the book is its practical concen-
Steiner, G. A. (ed.) (1963). Managerial Long
tration on different strategic situations, and Range Planning, McGraw Hill, New York.
that at least he ¯ags up that other things are Steiner, G. A. (1969). Top Management Planning,
important. This is one that I should recom- Macmillan, New York.
mend, whatever business you might work in. Warren, E. K. (1966). Long Range Planning: the
The preface claims that the book would also be Executive Viewpoint, Prentice Hall, Englewood
useful for not for pro®t organizations, such as Cliffs, NJ.

CCC 1086±1718/99/040243±05$17.50 Strategic Change, June±July 1999


Copyright # 1999 John Wiley & Sons, Ltd.

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