Foundations of Corporate Success: How Business Strategies Add Value

A leading business school economist lays bare the complexities of strategic thinking' in business and offers a lucid and innovative analysis of the source ofcompetitive advantage'. Kay engages with and develops the work of Michael Porter, who is regarded by many as the pre-eminent authority on business strategy.
How did BMW recover from the verge of bankruptcy to become one of the Europe's strongest companies? Why did Saatchi and Saatchi's global strategy bring the company to its knees? Why has Philips outstanding record in innovation not been translated into success in the market? What can be learned from the marriage contract about the conduct of commercial negotiations? These are some of the questions addressed as John Kay asks "What makes a business successful?";Drawing on his own business experience and on concepts in economics, legal theory, and sociology, the author presents his approach to questions of business strategy. Kay rejects the military analogy which underpins much strategic thinking, in which success depends on size and share, on vision and leadership, on shifting patterns of mergers and alliances. He argues that outstanding businesses derive their strength from a distinctive structure of relationships with employees, customers and suppliers, and explains why continuity and stability in these relationships is essential for a flexible and co-operative response to change. By integrating organizational and financial perspectives on the performance of the firm, Kay not only g