In our first edition, we set out to produce a difi~rent kind of textbook in the field

of business policy or, as it is now more popularly called, strategic management. We

tried to provide the reader with a richness of theory, a richness of practice, and a

strong basis for linkage between the two. We rejected the strictly case study ap-

proach, which leaves theory out altogether, or soft-pedals it, and thereby denies the

accumulated benefits of many years of careful research and thought about man-

agement processes. We also rejected an alternate approach that forces on readers a

highly rationalistic model of how the strategy process should function. We colla-

borated on this book because we believe that in this complex world of organiza-

tions a range of concepts is needed to cut through and illuminate particular aspects

0fthat complexity. There is no "one best way" to create strategy, nor is there "one

best form" of organization. Quite different forms work well in particular contexts.

We believe that exploring a fuller variety systematically will create a deeper and

more useful appreciation of the strategy process. In this revised edition, we remain

loyal to these beliefs and objectives, having concentrated our efforts on improving

the material we have included to reflect them. While maintaining the basic outline

of the book, we replaced, added, and revised a great many of its specific compo-

nents. In particular, 14 of the readings are new to this edition and 13 have been re-

vised; about one-third of the cases are likewise new, while another one-third more

have been shortened, revised, or updated based on the last few years teaching ex-

perience and professors suggestions. Most important, all the new cases contain a

strong international competitive focus representing the global dimensions of

today s major strategy issues. There are new cases involving both Japanese and Eu-

ropean companies, as well as the new joint ventures used in worldwide competi-

tion in both professional services and manufacturing companies. You will find that

cases on Honda Motor, Ford: Team Taurus, New Steel Corp., Biogen N.V., and

PRA&D rais~ issues on the cutting edge of strategy for the 1990s.