Foundations of Corporate Success : How Business Strategies Add Value - John Kay

Foundations of Corporate Success

How Business Strategies Add Value

By: John Kay

Paperback | 20 April 1995

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Presenting a different approach to questions of business strategy, this book answers vital questions about success and failure in industry. It gives an analysis of the source of 'competitive advantage' and examines how the business strategies of the world's leading companies affect their financial performance.

How did BMW recover from the edge of bankruptcy to become on of Europe's strongest companies? Why did Saatchi and Saatchi's global strategy bring the company to its knees? Why has Philips's outstanding record in innovation not been translated into success in the market? What can be learnt 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 a fresh approach to questions of business strategy. He 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.

John Kay 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 gives insights into the creation of effective business strategies, but sheds light on the success - and failure - of national economies.

As the single market develops, this book - full of insight and rigour, yet lively in style - is probably the most important European contribution to strategic thinking for many years.

It will be vital reading for all who want to understand what distinguishes the successful company.

Review: one of the most important 'strategic thinking" books in years...I can think of no better way of preparing for an examination in business strategy The Director You must read ... Foundations of Corporate Success. Kay is the currently the best management theorist in Britain, bar none. Business Age
Industry Reviews
`it is hard to remember a book which has such richness of penetrating (and well-written) comments on such a varied and complex research literature. If you are a business historian with no strategy text on your shelves, buy this one and you will be well served ... you will find within its covers freshness of critical perspective, not arid duplication ... Kay has produced the thinking business historian's strategy text: vital reading' Business History `An exceptionally powerful contribution to thinking on business strategy' Ian Hay Davison, Chairman of Storehouse `a powerfully argued book, which casts a fresh light on a range of practical business challenges Financial Times `in the same league as Michael Porter's celebrated volumes on competitive strategy...a certain coming of age of business education in Brtian' Observer `one of the most important `strategic thinking' books in years...I can think of no better way of preparing for an examination in business strategy' The Director `Any review must begin by applauding the verve and proficiency with which this eclecticism has been performed ... this is by no means a work of pure analysis. It is also an exercise in iconoclasm ... stimulating and lucidly argued book which is sure to grace management bookshelves for many years to come.' Long Range Planning `Good, update book of modern business strategy.' Kaare Sandvik, Buskerud College `This is a well written book, which covers most of the aspects in corporate strategies.' Chris Simango, Business and Management School, Regent's Park. London `it is hard to remember a book which has such richness of penetrating (and well-written) comments on such a varied and complex research literature. If you are a business historian with no strategy text on your shelves, buy this one and you will be well served ... you will find within its covers freshness of critical perspective, not arid duplication ... Kay has produced the thinking business historian's strategy text: vital reading' Business History `A lot of fresh thinking is coming from less familiar people, ranging from academics such as John Kay and Sumantra Ghsoshal (both at the London Business School) to manager pundits such as Percy Barnevik.' The Economist `Mr Kay is well on the way to turning himself into a European Michael Porter, Harvard's top showman.' The Economist 'This is a splendid book. Kay shows his colours. He dissociates himself from the American obsession with advantages of scale and its attendant zeal for buying businesses and amalgamating them. He speaks in favour of stable, less destructive competitive relationships. This is a highly sound piece of work. It is thoroughly researched. The theoretical foundation is impressive. The case studies are strongly developed, the examples well chosen. On the jacket it says: 'This book is probably the most important European contribution to strategic thinking for many years.' Only the word probably is to my mind superfluous. It could safely be changed to 'certainly' ... this is in every way a giant intellectual feat.' Prof Dr Marc Buelen, De Financieel-Ekonomische Tijd 'cet ouvrage est de qualité ... Treize ans aprés la parution de The mind of the strategist (K. Ohmae), J. Kay donne une version des raisons du succès des entreprises excellentes. L'analyse économique moderne collabore utilement avec les disciplines de gestion.' Alain Bienaymé, Analyses de la S.É.D.É.I.S., No. 104, Mars 1995 `For a long time, I and other colleagues have looked for a book on business strategy which we could recommend unreservedly to MBA and final year undergraduate students. In Kay's book we have found one.' Books for MBAs `It is an intelligently written book, worth writing. In paperback it has the potential to reach a wider audience ... it does make a contribution to entrepreneurship practice and theory ... It is very comprehensive in its application of current theory and many extremely intelligent points are made.' International Small Business Journal `It approaches its subject in a way which is characteristic of the economist: that is to say, in a rigorous, analytical fashion, and thus in a style which sets it apart from that often preferred by practitioners in business or academics working within other disciplines ... the argument that there exists concepts and models which provide valuable insights into the sources of business success and that it would be almost perverse not to use them, is very persuasive, and ... Kay presents it very well.' The Economic Journal `It approaches its subject in a way which is characteristic of the economist: that is to say, in a rigorous, analytical fashion, and thus in a style which sets it apart from that often preferred by practitioners in business or academics working within other disciplines ... the argument that there exist concepts and models which provide valuable insights into the sources of business success and that it would be almost perverse not to use them, is very persuasive, and ... Kay presents it very well.' Economic Journal `A very interesting approach, cutting across traditional boundaries by using `The Theme of Success'' D.F. Ridchards Southampton Institue `Kay covers most aspects of business strategy including mergers and acquisitions, pricing and positioning of products, and advertising and marketing. If you are considering taking an MBA programme then this book will provide you with an insight to the core subject of strategy.' Management; The British Journal of Administrative Management

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