Good strategy can be illustrated by the example of Wal-Mart. Wal-Mart's success is attributed to its coherent structure, policy, and actions. It's not about isolated practices like introducing barcode scanners, but about a total strategy that makes the entire network the basic unit of management. On the other hand, a bad strategy can be exemplified by Kmart. Despite having similar practices like barcode scanners, Kmart lacked the coherent strategy that Wal-Mart had, focusing on individual best practices rather than a comprehensive strategy.

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Good Strategy, Bad Strategy

Even some of the world’s biggest organizations do strategy poorly, and incorrectly credit their success to personal decision-making skills. We read th...

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Overall, it is the coherence of structure, policy, and actions that made Wal-Mart so difficult to compete with. Isolated examples, such as the introduction of barcode scanners at checkout, are not enough; Kmart also had barcode scanners in the early '80s. The difference between it and Wal-Mart is coherence, a total strategy as opposed to "some imagined 'best practice' form. … The network, not the store, became Wal-Mart's basic unit of management."

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Companies might face several obstacles when applying the concepts from Good Strategy, Bad Strategy. These could include resistance to change, lack of understanding of the strategy, poor communication, and lack of resources. To overcome these obstacles, companies could ensure clear communication of the strategy, provide adequate training and resources, and foster a culture that embraces change and strategic thinking.

The book 'Good Strategy, Bad Strategy' presents several innovative ideas. One of the most surprising is the emphasis on coherence in strategy. It's not enough to have isolated examples of good practices, like the introduction of barcode scanners at checkout. The difference between successful companies like Wal-Mart and others is a coherent, total strategy. Another innovative idea is the shift in perspective from the store to the network as the basic unit of management. These ideas challenge conventional wisdom and provide fresh insights into strategic management.

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