Foundations of Corporate Success: How Business Strategies Add Value

By John A. Kay | Go to book overview

VI THE STRATEGIC AUDIT

Successful strategy requires the firm to choose the markets in which its distinctive capabilities yield competitive advantage. But the adaptive, incremental nature of strategy means that the starting-point is where the firm is now. Every firm is part of an industry, a member of a strategic group, and serves a variety of product and geographic markets. The strategic audit of the firm begins (in Chapter 18) with the analysis of that industry, that strategic group, these markets. Chapter 19 goes on to consider the firm's own distinctive capabilities and strategic assets, the markets in which they are, and might be, deployed, and the extent to which they yield appropriable and sustainable competitive advantages. The strategic audit of the firm determines the extent to which these competitive advantages are maximized, and realized.

In this way, Chapters 18 and 19 bring together the analysis contained in earlier chapters of the book and display their practical application. There are dangers in describing a process of strategy formation. The determination of strategy is not a checklist which can be handed over to the planning department, or to a firm of consultants. It emerges from the firm's analysis of its own capabilities, and is part of its everyday decision- making. Nor are there recipes for strategy, or a menu of generic strategies. Effective strategy, based on distinctive capabilities, is unique to the firm that pursues it.

Chapter 20 asks what light the structure of strategy throws on the competitive advantage, not of firms, but of nations. This issue falls into two distinct, though related, parts. To what extent does the competitive advantage of individual firms represent the creation of wealth for the national, or international, economy? And when is it simply an appropriation of wealth to the stakeholders of the firm? I go on to consider more directly how the competitive advantage of nations, or groups of nations, rests on their own distinctive capabilities.

-283-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Foundations of Corporate Success: How Business Strategies Add Value
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 416

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.