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In an attempt to build upon existing theory, this paper aims to investigate the potentially reciprocal relationship between negotiation and strategy, and strive to contribute toward a better understanding of the ways in which organizations negotiate.

Built upon the integration of two different bodies of literature, negotiation and strategy, and on the analysis of the case of Ryanair, this paper argues for an integrated approach to negotiation and organizational capabilities.

The case study allows for a clearer understanding of how negotiation capability can play a significant role in supporting the creation and sustainment of competitive advantage, even under unfavorable industry settings.

This paper contributes to theoretical development by offering new and insightful explanations of firms’ behavior, moving beyond the classic interpretation of industry dynamics, such as bargaining power. This study has implications for both practice and research, as it offers a better and more holistic understanding of the strategy-making process and the foundations of its success.

Led by authors Coplin and O'Leary, 85 teams of analysts chart the ebb and flow of political risk on the basis of these critical judgments about the year to come.

Corporate planners rarely incorporate political analysis into the planning process in the same systematic way that they include traditional business factors. Nevertheless, top management knows that politics can affect the bottom line. Reaching a delicate compromise solution within the corporation between labor and management, for example, can mean the difference between growth or decay. Influencing a trade association to adopt a helpful policy or to provide a valuable service to an individual corporation can create new business opportunities. Securing tax breaks from local or state governments or more liberal environmental regulations from the Federal Government can have a profound impact on business costs.

As a result of terrorism, world health scares and war, the air transport industry has been re‐shaped almost beyond recognition. And while much has been written about the impressive achievements of the low‐cost airline operators, up until recently the outlook has looked bleak for the larger, state run airlines.

This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its fatal cost. A company needs to understand its true value proposition and ensure that customers are willing to pay for it. Ryanair was adored by the public when it began its low-cost flights from Dublin to London in 1986. That love nearly drove it to bankruptcy. Today, despite its poor image, it is one of the most successful and profitable companies in the industry.

The article analysis of the changing fortunes of Ryanair from its launch to its near bankruptcy in 1991 and then its revival of fortunes. It draws a parallel with Laker Airlines and the low-cost transatlantic Skytrain. Adulated by the public, the company folded in 1982. It is supplemented with research the airline industry and low-cost business models.

The article shows why companies should not fall into the trap of believing that a good public image will be the necessary condition for maintaining a sustainable competitive advantage. They need to fully understand the value proposition and what a customer is willing to buy.

Firms with extractive businesses abroad dread political instability and sudden government switches in business agreements in the countries in which they operate. The take‐over of copper firms in Chile during the Allende administration in 1971 and the recent decision by Venezuela to reduce Reynolds Metals' equity share in a smelting operation from 50 percent to 28 percent are two examples of hundreds of such events that have determined the profitability of extractive operations over the past decade. Both the risks and opportunities for international firms seeking to produce and market raw materials or firms dependent on raw materials are heavily affected by political conditions.

Recent events have rewritten the political risk map, for the immediate future and perhaps for the 21st century. Regional issues are charted and key risk factors are scored for 86 countries.

The practice of strategic decision‐making has two major perspectives to help managers create and maintain competitive advantage in the face of a range of business challenges. One stresses market position and the other core competence. (1) Market position – the positioning approach to strategy development is associated mainly with the work of Michael Porter; strategic choice is focused primarily on the structure of the industry and how it might be shaped to advantage. The aim is to establish a “privileged”/hard‐to‐replicate position in an industry that is difficult to enter. (2) Core competence – the competence‐led perspective is associated with the work of C.K. Prahalad and Gary Hamel; strategic choice focuses primarily on assessing which distinctive competences should be built, then considers the market opportunities that would exploit them best. It may be tempting to use one approach or the other because the market position and core competence approaches do create perspectives that see things very differently, and their analytical methodologies offer different guidance. But instead of picking one over the other, the astute strategist may be best served to test out both perspectives and generate a wider range of options. This is shown in the article’s illustrations of corporate strategy in the multi‐business firm and strategic renewal. In sum, looking at your business from both approaches will generate two sets of contrasting perspectives and options for action. For many firms, this binocular vision of the available strategic options will lead to a better result than if either perspective was used alone.

Our Political and Economic Forecast Chart (an annual feature in Planning Review), highlights the risks and opportunities to international business as we see them from our perspective as editors of Political Risk Services (PRS) publications, and as the organizers of PRS semiannual conferences on political risk.

Corporate and strategic planners for international businesses have always been aware of the importance of domestic and foreign political conditions in defining both risks and opportunities for their businesses. Unfortunately, the complexity and subjectivity of political analysis, along with the lack of valid, relevant, and up‐to‐date information makes it very difficult to integrate political analysis into the planning process. Yet in recent years, the U.S. business environment has been radically altered time and again by international events such as changes in government, outbreaks of political turmoil, increasing or decreasing restrictions on the operations of international business, changes in protectionism, or basic shifts in fiscal and monetary policy. At the very least, planners need a warning system to alert them to possible serious reversals of the business climate.