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Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-1
CHAPTER 7
Strategy and Strategic Management
Insights and hard work deliver results
Chapter 7 Overview
Each Chapter contains several inset features designed to assist the student reader in applying
the concepts to relevant examples. Management Live illustrates how popular movies
demonstrate management concepts in the chapter. Role Models features a management
professional that illustrates key chapter concepts in a novel, visionary or inspirational way.
Explore Yourself refers students to self assessment activities relevant to concepts in the
chapter. Ethics Check profiles examples of ethical issues in management. Manager's Library
features books that illustrate current events or trends relevant to chapter concepts. Facts to
Consider introduces research or trends that may be used for class discussion in the classroom
or online for distance learning.
Chapter Seven provides a definition of strategy and a review of strategic management and
insights. The chapter explores various levels of strategies, including those for growth, in use
at most organizations. Considerable attention is then devoted to both corporate-level and
business-level strategy formulation. Divestiture and restructuring strategies, used primarily
when an organization runs into difficulties, are reviewed. A brief discussion of firms
pursuing global strategies, cooperative and partnership strategies, and e-business strategies
follows.
This chapter focuses on strategic management and the role that strategy plays in achieving
competitive advantage and maximum organizational performance. The chapter begins by
defining the key terms and concepts in strategic management and describing the strategic
management process. Emphasis is placed on strategy formulation and strategy
implementation. The importance of strategic management for gaining a competitive
advantage is also discussed. This is followed by a discussion of the different levels of
strategies used by an organization. Considerable attention is then devoted to both corporate-
level and business-level strategy formulation. The chapter’s focus then shifts to the process of
strategy implementation, with emphasis being placed on common strategic planning failures
that hinder strategy implementation and the importance and role of strategic leadership.
Next is a review of how managers formulate and implement strategies to accomplish long-
term goals and competitive advantage. The steps of the strategic management process are
defined, along with an explanation of strategy formulation as the basis of organization’s
mission and objectives. A SWOT analysis, tool to analyze company and industry strategy and
competitiveness, details an organization’s internal strengths and weaknesses and external
opportunities and threats is explored further.
Porter’s competitive strategies model and tools to understand the competition position of a
company and challenges within its industry are reviewed. Last is a discussion of strategic
leadership to ensure strategy implementation and control.
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-2
Chapter 7 Takeaway Questions
• Takeaway 7.1 What Types of Strategies Are Used by Organizations?
• Takeaway 7.2 How Do Managers Formulate and Implement Strategies?
Chapter 7 Objectives
• To define and explain strategy as a comprehensive plan to achieve competitive
advantage.
• To categorize and explain corporate, business, and functional strategies used within
organizations.
• To understand how organizations expand and the types of growth strategies utilized.
• To explain strategies organizations employ when they run into performance
difficulties.
• To explain the importance of global growth opportunities and ways organizations can
pursue globalization strategies for further growth.
• To explain how cooperative strategies and further cooperation among organizations
create new areas of mutual interest.
• To explain how companies use the internet or e-business strategies for competitive
advantage.
• To decipher between web-based business models.
• To explain how an organization’s mission and objectives becomes a basis for its
strategy formulation.
• To define and explore how a SWOT analysis is used to examine an organization’s
strengths and weaknesses as a basis for developing strategies.
• To review Michael Porter’s models as useful tools in understanding the competitive
position of a company and the challenges within an industry.
• To explain Porter’s competitive strategies model.
• To understand how companies operating multiple businesses selling many different
products utilize a portfolio planning strategic approach.
• To explain the Boston Consulting Group or BCG Matrix.
• To explain the importance of strategic leadership and how to implement strategies.
• To list the responsibilities of a strategic leader.
Chapter 7 Lecture Outline:
• Takeaway 7.1 What Types of Strategies Are Used By Organizations?
o Strategy is a comprehensive plan for achieving competitive advantage
o Organizations use corporate, business, and functional strategies
o Growth strategies focus on expansion.
o Restructuring and divestiture strategies focus on consolidation
o Global strategies focus on international business initiatives
o Cooperative strategies focus on alliances and partnerships
o E-business strategies focus on using the Internet for business success.
• Takeaway 7.2 How Do Managers Formulate and Implement Strategies?
o The strategic management process formulates and implements strategies
o Strategy formulation begins with the organization’s mission and objectives
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-3
o SWOT analysis identifies strengths, weaknesses, opportunities, and threats
o Porter’s five forces model examines industry attractiveness
o Porter’s competitive strategies model identifies business or product strategies.
o Portfolio planning examines strategies across multiple businesses or products
o Strategic leadership ensures strategy implementation and control
Chapter 7 Supporting Materials
Figures
• Figure 7.1: What Are the Steps in the Strategic Management Process?
• Figure 7.2: What Does SWOT Analysis Try to Discover?
• Figure 7.3: What Is Porter’s Five Forces Model of Industry Attractiveness?
• Figure 7.4: What are Strategic Options in Porter’s Competitive Strategies Model?
• Figure 7.5: Why is the BCG Matrix Useful in Strategic Planning?
Thematic Boxes and More
• Management Live: Critical Thinking and Tron: Legacy
• Role Models: Wendy Kopp Tackles the Culture of Low Achievement
• Ethics Check: Life and Death at an Outsourcing Factory
• Facts to Consider: Disposable Workers Are Indispensible to Business Profits
• Manager’s Library: Rebooting Work Transform How Your Work in the Age of
Entrepreneurship by Maynard Webb
• Explore Yourself: Critical Thinking
• Tips to Remember: Key Operating Objectives of Organizations
• Find Inspiration: Climbing High With Patagonia, Inc.
• Table 7.1 Web-Based Business Models
Applications
• TestPrep 7 Multiple-Choice Questions
• Skill Building Portfolio
o Self-Assessment 7: Handling Facts and Inferences
o Class Exercise 7: Strategic Scenarios
o Team Project 7: Contrasting Strategies
o Hot Topic: Pro and Con Debate: How about a “double Irish” with a “Dutch
sandwich”?
• Case Snapshot: Dunkin’ Donuts – Growth Feeds a Sweet Tooth
• Sidebar case: Jamba Juice Blends for Fruitful Growth
Chapter Outline:
Takeaway 7.1: What Types of Strategies Are Used by Organizations?
• Strategy is a comprehensive plan for achieving competitive advantage
✓ A strategy is a comprehensive action plan that identifies long-term direction for
an organization and guides resource utilization to accomplish its goals
✓ “Best guess” about what to do to be successful in the face of rivalry and changing
conditions
✓ Strategic intent is a unifying target or goal
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-4
✓ Competitive advantage is an “edge” or method of operations that allows an
organization to outperform rivals
➢ Sustainable Competitive Advantage is a way of operating that is difficult to
imitate
• Organizations use corporate, business and functional strategies
✓ Corporate strategy provides direction and guides resource allocations as a whole
✓ Business strategy provides direction and guides resource allocations for an
individual unit or division within a larger enterprise
✓ Functional strategy guides activities to implement strategies at a detail or
specific operations level
➢ Such as Marketing, Finance, Manufacturing, Marketing, and Human
Resources
• Growth strategies focus on expansion
✓ Growth strategies are those designed to increase the size of current operations
➢ Concentration strategies focus on an existing business area
➢ Diversification strategies focus on entering new business areas
o Related – similar or complementary business areas
o Unrelated – entirely new business areas
o Vertical integration - acquire suppliers (backward) or customers
(forward)
• Role Models: Wendy KoppTackles the Culture of Low Achievement
In an undergraduate thesis at Princeton University, Wendy Kopp, founder of Teach for
America, proposed the creation of her nonprofit. Her strategy included “eliminating
education inequities,” by providing excellent education for kids in low-income
communities. Her goal: to help children growing up in poverty beat the culture of low
achievement. In “What’s the Lesson Here,” students can discuss Kopp’s vision for social
change and the lessons for organizations on the link between vision and strategy. Lastly,
the question of how a leader of a business can gain high levels of employee commitment
to a strategy.
• Restructuring and divestiture strategies focus on consolidation
✓ A retrenchment strategy seeks to correct weaknesses by making radical changes
to current ways of operating
➢ Liquidation – when a business closes and sells is assets to pay creditors
✓ A restructuring strategy seeks to correct weaknesses by reducing the scale or
mix of operations
➢ Chapter 11 bankruptcy - protects an organization from creditors as it re-
organizes in an attempt to restore solvency.
✓ Downsizing seeks to decrease the size of operations
✓ Divestiture sells off parts of the organization to refocus attention on core business
areas
• Explore Yourself: Critical Thinking
Critical thinking is a “must-have” for success in strategic management. It enables you to
perceive problems, hone in on their more essential aspects, gather and interpret useful
information, and make good decisions in complex conditions. Unfortunately, critical
thinking can become blurred without the luxury of full information for analysis,
common in today’s work environment with its many uncertainties.
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-5
Encourage students to take the self-assessment on “Handling Facts and Interferences” in
the Skill Building Portfolio. Consider asking students about whether they are able to
distinguish “facts” from “interferences” when answering questions.
• Global strategies focus on international business initiatives
✓ Globalization strategy adopts standardized products and advertising for
worldwide use
➢ Gillette razors
✓ Multidomestic strategy customizes products and advertising to meet local
cultural needs
➢ Proctor & Gamble consumer products
✓ Transnational strategy seeks efficiencies of global operations with attention to
local markets
➢ Ford, Sony
• Ethics Check: Life and Death at an Outsourcing Factory
➢ The sight of netting outside the dormitories of Foxconn factories is sobering when
you learn that it was installed to prevent suicides of workers who lose hope and
jump off the dormitory roof. What responsibility do employers have to make sure
workers not only have safe working conditions, but work that has meaning with a
sense of accomplishment and hope of a better future? What responsibility do U.S
companies such as Apple, Dell and HP have to make sure Foxconn remedies
conditions that lead workers to suicide? How about us as consumers? Do we have
a responsibility? Would you alter your consumption habits?
• Cooperation Strategies focus on alliances and partnerships
✓ Strategic alliances - two or more organizations create a partnership to pursue an
area of mutual interest or strengthen competitive advantage.
➢ Airlines often create strategic alliances with foreign airlines to facilitate
easier foreign travel ticketing for travelers and create a competitive
advantage for the airlines.
➢ Supplier alliances - suppliers have preferred relationships with others in
the supply chain to facilitate smooth flow of supplies.
➢ Distribution alliances - firms cooperate for product/service sales and
distribution.
✓ Co-opetition - competitors share information or technology with the intent of
creating a larger market for both
✓ IBM and Red Hat cooperate on some aspects of Linux development
• E-business strategies focus on using the internet to gain competitive advantage
➢ B2B – business to business; uses web portals and IT to link organizations
vertically in supply chains
✓ B2C – business to customers; uses web portals and IT to link
organizations with customers
✓ Social media strategy -social media is used to engage customers and
other external groups
✓ Crowdsourcing - social media strategy that becomes an interactive idea
exchange with customers.
Table 7.1 summarizes the types of web-based business models
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-6
✓ Advertising model
✓ Brokerage model
✓ Community model
✓ Freemium model
✓ Infomediary model
✓ Merchant model
✓ Referral model
✓ Subscription model
• Manager’s Library: Rebooting Work: Transform How You Work in the Age of
Entrepreneurship by Maynard Webb
The book is a practical guide to navigating the new era of what many call
the “entrepreneurial workplace.” Described is the decline of age-old face-
to-face workplace mentoring relationships between senior managers and
their juniors. Reasons include technology, shorter, more temporary work
contracts, flatter organizations resulting in fewer middle-level managers.
Although mentoring has gone by the wayside, the author’s message is to
find and access mentors on your own.
The “Reflect and React: questions ask: Does the notion of entrepreneurial
workplace seem to describe the career settings ahead for you? How about
the mentoring strategy? If you don’t have a mentor, and your employer
isn’t helpful in finding you one, how can you get yourself one? Can
mentoring work as well online as face-to-face?
7.1 Questions for discussion Suggested Answers
1) With things changing so fast today, is it really possible for a business to achieve
“sustainable” competitive advantage?
It is much more difficult to sustain an advantage today, with the speed of change
and technology. However, companies can create a sustainable culture than allows a
sustainable advantage through ongoing commitments to innovation and continuous
improvement. Examples are Apple, 3M, Proctor and Gamble, Toyota, and many
other companies.
2) Why is growth such a popular business strategy?
Growth is popular because so many owners and investors desire growth in their
returns on capital. Additionally, American culture in particular is growth-oriented
compared to other cultures.
3) Is it good news or bad news for investors when a business announces that it is
restructuring?
Usually restructuring plans are treated as “good news” for investors. The reason
for this is that such plans are usually developed when a company is experiencing
financial difficulties or sales are slowing, etc. The restructuring plan sends a signal
to the market and investors that management is addressing issues and has a plan in
place for improving results.
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-7
Takeaway 7.2 How Do Managers Formulate and Implement Strategies?
• The strategic management process formulates and implements strategies
✓ Strategic management is the process of formulating and implementing strategies
to accomplish long-term goals and sustain competitive advantage
✓ Strategy formulation is the process of creating strategies
✓ Strategy implementation is the process of putting strategies into action
• See Figure 7.1 for a description of the steps in the management process
✓ Review current situation
✓ Analyze organization and external environment
✓ Develop new strategies
✓ Implement strategies
✓ Evaluate results
• Strategy formulation begins with the organization's mission and objectives
✓ Mission is the organization’s reason for existence or purpose
✓ Operating objectives are specific short-term results that organizations try to
achieve
• SWOT analysis examines strengths, weaknesses, opportunities, and threats
✓ SWOT analysis is a tool used in strategic planning to determine the current status
of the organization
➢ Internal assessment of the organizational strengths and weaknesses
➢ External assessment of environmental opportunities and threats
✓ See Figure 7.2 for a depiction of SWOT analysis
➢ Internal Assessment of the Organization includes its: strengths and
weaknesses
➢ External assessment of the organization includes its: weaknesses,
opportunities, and threats
✓ Core competency is a special strength that gives and organization a competitive
advantage
DISCUSSION TOPIC
To prompt a lively discussion, engage the students in a SWOT analysis of your college or
university. They will typically have a lot of opinions ⎯ some quite insightful ⎯ about the
strengths and weakness of the institution. They are likely to be less well informed about the
opportunities and threats that exist in your institution’s external environment.
This activity provides students with a real-life application of SWOT analysis that will help
them to better understand how to use this analytical tool.
• Tips to Remember : Key Operating Objectives of Organizations
• Profits
• Cost efficiency
• Market share
• Product quality
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-8
• Talented workforce
• Innovation
• Social responsibility
• Sustainability
• Porter’s five forces model examines industry attractiveness
✓ Figure 7.3 illustrates the five forces model which include competitors, new
entrants, suppliers, customers and substitutes
➢ Bargaining power of suppliers
➢ Bargaining power of customers
➢ Threat of new entrants to industry
➢ Threat of substitute products
✓ Unattractive industry – intense rivalry, easy entry, substitute products, powerful
suppliers and customers
✓ Attractive industry – low rivalry, barriers to entry, few or no substitute products,
weak supplier and customer power
• Porter’s competitive strategies model examines business or product strategies
✓ A differentiation strategy seeks competitive advantage seeks competitive
advantage through uniqueness
✓ A cost leadership strategy seeks competitive advantage through operating with
lower costs than competitors
✓ A focused differentiation strategy seeks competitive advantage through
concentration on one special market segment and offering a unique product to that
segment’s customers
✓ A focused cost leadership strategy seeks competitive advantage through
concentration on one special market segment and being the low cost provider to
that market segment’s customers
✓ See Figure 7.4 for a depiction of competitive strategies model in the soft drink
industry
✓ What is the market scope – broad or narrow?
✓ What is the expected source of competitive advantage – lower price or
product uniqueness?
✓ The four combinations of answers result in:
➢ Differentiation
➢ Cost leadership
➢ Focused differentiation
➢ Focused cost leadership strategies
DISCUSSION TOPIC
If you used the Discussion Topic regarding a SWOT analysis of your college or university,
you can continue with that scenario in this Discussion Topic. Have the students discuss which
of Porter’s generic strategies that your college or university uses. Make sure that the students
fully explain their reasoning.
• Portfolio planning examines strategies across multiple businesses or products
✓ Useful for companies that operates a variety of businesses
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-9
✓ BCG matrix analysis is a planning tool for such companies
✓ See Figure 7.5 for a depiction of the BCG matrix approach
➢ Stars - high market share in high growth markets
➢ Cash cows - high market share in low growth markets
➢ Question marks - low market share in high growth markets
➢ Dogs - low market share in low growth markets
• Find Inspiration: Climbing High with Patagonia, Inc.
✓ Patagonia is a strategic success story anchored to its mission of: “building the
best product, cause no unnecessary harm, use business to inspire and implement
solutions to the environmental crisis.” Patagonia is one of the first companies to
file papers to become a benefit corporation, which means that its policies will
always “create a material positive impact on society and the environment.”
• Strategic leadership ensures strategy implementation and control
✓ Requires good organization structures and cultures, and the right staffing
✓ Strategic leadership - the capability to inspire people to successfully engage in a
process of continuous change, performance enhancement, and implementation of
organizational strategies
✓ Strategic control - responsibility of top managers to keep in touch with strategy,
how well it is being implemented and if it needs to be changed to be more
effective in accomplishing the mission
✓ A strategic leader has to:
➢ Be a guardian of trade-offs
➢ Create a sense of urgency
➢ Make sure that everyone understands the strategy
➢ Be a teacher
➢ Be a great communicator
DISCUSSION TOPIC
Ask students to pick an industry and find examples of companies that seem to be using
strategic control as opposed to those who are not. Discuss these in light of the corporate
bailouts being sought by corporations vs. those who are not.
✓ Facts to Consider: Disposable Workers Are Indispensible to Business
Profits
➢ Northwestern University economist, Robert Gordon, proclaims that we are
now in the era of disposable workers. Businesses seem enamored with the idea
of hiring less full-timers and more part-time or temporary workers that can be
added and let go according to demand, or on a “pay-as-needed approach.” The
“Your Thoughts” section poses questions about whether the switch to more
disposable workers is a good long-term strategy for businesses and other
organizations and the downsides to remaining employees. Discuss with
students how this trend may impact them and whether it is something they
have factored into their career plan.
✓ Strategic Leadership Responsibilities:
➢ A strategic leader has to be the guardian of trade-offs
➢ A strategic leader needs to create a sense of urgency
➢ A strategic leader must make sure that everyone understands the strategy
➢ A strategic leader must be a teacher
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-10
7.2 Questions for discussion Suggested Answers
1) Can an organization have a good strategy but a poor sense of mission?
Yes, a strategy answers the question “how” we will succeed; the mission says
“what” the purpose of the organization is. If a company has a poorly written
mission statement that allows for a “jack of all trades” business definition, the
company may attempt to become a conglomerate and fail, or perform with
mediocrity, even though the strategies in each separate business/ market may be
sound. On the other hand, a company may see its mission as very narrowly defined
and miss out on opportunities for growth or adaptation.
2) Would a monopoly receive a perfect score for industry attractiveness in Porter’s five
forces model?
Monopolies would be very close and may receive a perfect score. The only area
where this may be less than perfect is the power of suppliers. Even a monopoly must
rely on suppliers. Unless the monopoly happens to also be the sole customer for the
supplier’s products (unlikely for most resources), then that aspect would make the
“score” less than perfect.
3) Does the BCG Matrix oversimplify a complex strategic management problem?
Yes, the BCG matrix oversimplifies strategic positions and strategic planning. It
offers a “formula” approach and may lead to abandoning a business that may yield
very high returns if management attention is focused on the business in question.
Very few companies use the BCG matrix; it was popular in the 1970’s when
conglomerates were in vogue.
Teaching Notes
In this section, ideas, exercises, and assignments are provided to assist you in integrating the
concepts in Exploring Management for your students, especially the special features of the
text.
Management Live: Critical Thinking and Tron: Legacy
Tron: Legacy creates a virtual world within a video game with few instructions. You don't
have to wander very far off that premise to draw a strong parallel between a lawless
cyberworld and the global environment managers operate in today. Managers need strong
strategic skills to compete in a confusing global economy with the goal of survival.
Critical thinking is mentioned as the most important skill, allowing us to accumulate relevant
information, prioritize goals, and develop strategies for success. Students can gain critical
thinking skills through case studies provided in the book, but only if they go beyond finding
the right vocabulary. They need to thoroughly apply the concepts and develop a winning
strategy.
Facts to Consider:
Disposable Workers Are Becoming Indispensible to Business Profits
Northwestern University economist, Robert Gordon, proclaims that we are now in the era of
disposable workers. Businesses seem enamored with the idea of hiring less full-timers and
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-11
more part-time or temporary workers that can be added and let go according to demand, or on
a “pay-as-needed approach.” The “Your Thoughts” section poses questions about whether the
switch to more disposable workers is a good long-term strategy for businesses and other
organizations and the downsides to remaining employees. Discuss with students how this
trend may impact them and whether it is something they have factored into their career plan.
Role Models: Wendy Kopp Tackles the Culture of Low Achievement
In an undergraduate thesis at Princeton University, Wendy Kopp, founder of Teach for
America, proposed the creation of her nonprofit. Her strategy included “eliminating
education inequities,” by providing excellent education for kids in low-income communities.
Her goal: to help children growing up in poverty beat the culture of low achievement.
In “What’s the Lesson Here,” students can discuss Kopp’s vision for social change and the
lessons for organizations on the link between vision and strategy. Lastly, the question of how
a leader of a business can gain high levels of employee commitment to a strategy.
Find Inspiration: Climbing High with Patagonia
Patagonia is a strategic success story anchored to its mission of: “building the best product,
cause no unnecessary harm, use business to inspire and implement solutions to the
environmental crisis.” Patagonia is one of the first companies to file papers to become a
benefit corporation, which means that its policies will always “create a material positive
impact on society and the environment.”
Manager's Library: Rebooting Work: Transform How You Work in the Age
of Entrepreneurship by Maynard Webb
The book is a practical guide to navigating the new era of what many call the “entrepreneurial
workplace.” Described is the decline of age-old face-to-face workplace mentoring
relationships between senior managers and their juniors. Reasons include technology, shorter,
more temporary work contracts, flatter organizations resulting in fewer middle-level
managers. Although mentoring has gone by the wayside, the author’s message is to find and
access mentors on your own.
The “Reflect and React: questions ask: Does the notion of entrepreneurial workplace seem to
describe the career settings ahead for you? How about the mentoring strategy? If you don’t
have a mentor, and your employer isn’t helpful in finding you
Ethics Check: Life and Death at an Outsourcing Factory
The sight of netting outside the dormitories of Foxconn factories is sobering when you learn
that it was installed to prevent suicides of workers who lose hope and jump off the dormitory
roof. What responsibility do employers have to make sure workers not only have safe
working conditions, but work that has meaning with a sense of accomplishment and hope of a
better future? What responsibility do U.S companies such as Apple, Dell and HP have to
make sure Foxconn remedies conditions that lead workers to suicide? How about us as
consumers? Do we have a responsibility? Would you alter your consumption habits?
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-12
one, how can you get yourself one? Can mentoring work as well online as face-to-face?
Explore Yourself: Critical Thinking
Critical thinking is a “must-have” for success in strategic management. It enables you to
perceive problems, hone in on their more essential aspects, gather and interpret useful
information, and make good decisions in complex conditions. Unfortunately, critical thinking
can become blurred without the luxury of full information for analysis, common in today’s
work environment with its many uncertainties.
The assessment for this Chapter is entitled “Facts and inferences”. The assessment tool is
intended to help students assess their ability to distinguish facts from inferences, an important
trait for a manager participating in the planning process.
For extended learning, students may discuss how perception of facts and inferences influence
strategic management. For example, what role does personal perception of facts influence the
establishment of mission or a SWOT analysis?
Hot Topic: Pro and Con Debate: How about a “double Irish” with a
“Dutch sandwich”?
No, it’s not a drink and a sandwich we’re talking about. It’s a global business strategy used to
reduce corporate income taxes in America. Ireland offers corporations that put offices and
plants there a 12.5% corporate tax rate. That compares with the standards 40% rate due at
home. If you set up two Irish companies and arrange to funnel foreign earnings through them
– the double Irish move – you pay the lesser tax bill. When it comes to managing a global
business, it requires crucial knowledge of tax laws, which vary widely from country to
country. Ask students if they would be able to execute a double Irish with a Dutch sandwich.
Career Situation: What Would You Do?
A neighborhood business association has this set of members: coffee shop, bookstore,
drugstore, dress shop, hardware store, and bicycle shop. The owners of these businesses are
interested in how they might “cooperate” for better success. As a business consultant to the
association, what would you propose as possible strategic alliances that would join sets of
these businesses together for mutual gain?
For some years now, you’ve owned a small specialty bookshop in a college town. You sell
some textbooks but mainly cater to a broader customer base. The store always stocks the
latest fiction, nonfiction, and children’s books. Recent numbers show a steep decline in sales,
including books that would normally be considered best sellers. You suspect this is because
of the growing popularity of e-books and e-readers such as the Amazon Kindle and Barnes &
Noble Nook. Some of your friends say it’s time to close up because your market is dying. Is it
hopeless or is there a business strategy that might save you?
Skill Building Portfolio
Terms to Define:
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B2B business strategy
B2C business strategy
BCG Matrix
Business strategy
Chapter 11 bankruptcy
Competitive advantage
Concentration
Co-opetition
Core competencies
Corporate strategy
Cost leadership strategy
Crowdsourcing
Differentiation strategy
Diversification
Divestiture
Downsizing
E-business strategy
Focused cost leadership strategy
Focused differentiation strategy
Functional strategy
Globalization strategy
Growth strategy
Liquidation
Mission
Operating objectives
Restructuring
Retrenchment strategy
Social media strategy
Strategic alliance
Strategic control
Strategic intent
Strategic leadership
Strategic management
Strategy
Strategy formulation
Strategy implementation
Sustainable competitive advantage
SWOT analysis
Transnational firm
Vertical integration
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TestPrep 7: Multiple-Choice Questions
1. Which is the best question to ask when starting the strategic management process?
(a)“What is our mission?”
(b)“How well are we currently doing?”
(c)“How can we get where we want to be?”
(d)“Why aren’t we doing better?”
2. The ability of a firm to consistently outperform its rivals is called ___________
(a)vertical integration
(b)competitive advantage
(c)strategic intent
(d)core competency
3. General Electric is a complex conglomerate that owns many firms operating in very
different industries. The strategies pursued for each of these units within GE would best
be called __________level strategies.
(a)corporate
(b)business
(c)functional
(d)transnational
4. An organization that is downsizing by cutting staff to reduce costs can be described as
pursuing a _________strategy.
(a)liquidation
(b)divestiture
(c)retrenchment
(d)stability
5. When you buy music downloads online, the firm selling them to you is engaging in which
type of e-business strategy?
(a)B2C
(b)B2B
(c)infomediary
(d)crowdsourcing
6. The alliances that link together firms in supply chain management relationships are examples
of how businesses try to use ____________strategies.
(a)B2C
(b)growth
(c)cooperation
(d)concentration
7. Among the global strategies that international businesses might pursue, the
_________strategy most directly tries to tailor products to fit local needs and cultures in
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different countries.
(a)concentration
(b)globalization
(c)transnational
(d)multidomestic
8. If Google’s top management were to announce that the firm was going to buy Federal
Express, this would indicate a growth strategy of .____________
(a)diversification
(b)concentration
(c)horizontal integration
(d)vertical integration
9. ___________are special strengths that an organization has or does exceptionally well and
that help it outperform competitors.
(a)Core competencies
(b)Strategies
(c)Alliances
(d)Operating objectives
10. A ________in the BCG Matrix would have a high market share in a low-growth market.
(a)dog
(b)cash cow
(c)question mark
(d)star
11. In Porter’s five forces model, which of the following conditions is most favorable from the
standpoint of industry attractiveness?
(a)many competitive rivals
(b)many substitute products
(c)low bargaining power of suppliers
(d)few barriers to entry
12. The two questions asked by Porter to identify the correct competitive strategy for a business
or product line are: 1—What is the market scope?
2—What is the __________ ?
(a)market share
(b)source of competitive advantage
(c)core competency
(d)industry attractiveness
13. When Coke and Pepsi spend millions on ads trying to convince customers that their products
are unique, they are pursuing a ______________strategy.
(a)transnational
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(b)concentration
(c)diversification
(d)differentiation
14. A firm that wants to compete with rivals by selling a very-low priced product in a broad
market would need to successfully implement a ________________ strategy.
(a) retrenchment
(b) differentiation
(c) cost leadership
(d) diversification
15. In addition to focusing on strategy implementation and strategic control, the responsibility
for strategic leadership of an organization involves success with _________________.
(a)motivating a disposable workforce
(b)the process of continuous change
(c)Chapter 11 bankruptcy
(d)growth by liquidation
Short-Response Questions:
16. What is the difference between corporate strategy and functional strategy?
A corporate strategy sets long-term direction for an enterprise as a whole. Functional
strategies set directions so that business functions such as marketing and manufacturing
support the overall corporate strategy. A corporate strategy sets long-term direction for an
enterprise as a whole. Functional strategies set directions so that business functions such
as marketing and manufacturing support the overall corporate strategy.
17. Why is a cost leadership strategy so important when one wants to sell products at lower prices
than competitors?
If you want to sell at lower prices than competitors and still make a profit, you have to
have lower operating costs (profit 3 revenues 5 costs). Also, you have to be able to operate
at lower costs in ways that are hard for your competitors to copy. This is the point of a cost
leadership strategy—always seeking ways to lower costs and operate with greater
efficiency than anyone else.
18. What strategy should be pursued for a “question mark” in the BCG Matrix, and why?
A question mark in the BCG matrix has a low market share in a high growth industry.
This means that there is a lot of upside potential, but for now it is uncertain whether or not
you will be able to capitalize on it. Thus, hard thinking is required. If you are confident,
the recommended strategy is growth; if you aren’t, it would be retrenchment, to allow
resources to be deployed into more promising opportunities.
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19. What is strategic leadership?
Strategic leadership is the ability to enthuse people to participate in continuous change,
performance enhancement, and the implementation of organizational strategies. The
special qualities of the successful strategic leader include the ability to make tradeoffs,
create a sense of urgency, communicate the strategy, and engage others in continuous
learning about the strategy and its performance responsibilities.
Integration and Application Questions:
Integration and Application Question
20. Kim Harris owns and operates a small retail store, selling the outdoor clothing of an
American manufacturer to a predominantly college-student market. Lately, a large
department store outside of town has started selling similar but lower-priced clothing
manufactured in China, Thailand, and Bangladesh. Kim is starting to lose business to this
store. She has asked your instructor to have a student team analyze the situation and propose
some strategic alternatives to best deal with this threat. You are on the team.
Questions: Why would a SWOT analysis be helpful in addressing Kim’s strategic management
problem? How could Porter’s competitive strategies model be helpful as well?
A SWOT analysis is useful during strategic planning. It involves the analysis of
organizational strengths and weaknesses, and of environmental opportunities and threats.
Such a SWOT analysis in this case would help frame Kim’s thinking about the current
and future positioning of her store, particularly in respect to possible core competencies
and competitive opportunities and threats. Then she can use Porter’s competitive strategy
model for further strategic refinements. This involves the possible use of three alternative
strategies: differentiation, cost leadership, and focus. In this situation, the larger
department store seems better positioned to follow the cost leadership strategy. This means
that Kim may want to consider the other two alternatives. A differentiation strategy would
involve trying to distinguish Kim’s products from those of the larger store. This might
involve a “made in America” theme or an emphasis on leather or canvas or some other
type of clothing material. A focus strategy might specifically target college students and try
to respond to their tastes and needs rather than those of the larger community population.
This might involve special orders and other types of individualized service for the college
student market.
Self-Assessment 7: Handling Facts and Inferences
Instructions
1. Read the following report.
A well-liked college instructor had just completed making up the final examination and
had turned off the lights in the office. Just then a tall, broad figure with dark glasses
appeared and demanded the examination. The professor opened the drawer.
Everything in the drawer was picked up, and the individual ran down the corridor. The
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president was notified immediately.
2. Indicate whether you think the following observations are true (T), false (F), or doubtful in
that it may be either true or false (?). Judge each observation in order. Do not reread the
observations after you have indicated your judgment, and do not change any of your answers.
1. The thief was tall, broad, and wore dark glasses.
2. The professor turned off the lights.
3. A tall figure demanded the examination.
4. The examination was picked up by someone.
5. The examination was picked up by the professor.
6. A tall, broad figure appeared after the professor turned off the lights in the office.
7. The man who opened the drawer was the professor.
8. The professor ran down the corridor.
9. The drawer was never actually opened.
10. Three persons are referred to in this report.
Scoring
The correct answers in reverse order (starting with 10) are: ?, F, ?, ?, T, ?, ?, T, T, ?.
Interpretation
To begin, ask yourself if there was a difference between your answers and the correct ones. If
so, why? Why do you think people, individually or in groups, may answer these questions
incorrectly? Good planning depends on good decision making by the people doing the
planning. Being able to distinguish “facts” and understand one’s “inferences” are important
steps toward improving the planning process. Involving others to help do the same can
frequently assist in this process.
Class Exercise 7: Strategic Scenarios
Preparation
In today’s turbulent economic climate, it is no longer safe to assume that an organization that
was highly successful yesterday will continue to be so tomorrow—or that it will even be in
existence. Changing times exact the best from strategic planners. Think about the situations
currently facing the following well-known organizations. Think, too, about the futures they may
face.
McDonald’s Ford Sony
Apple Computer Nordstrom United Airlines
Yahoo! National Public Radio AT&T
Ann Taylor The New York Times Federal Express
Instructions
Form into groups as assigned by your instructor. Choose one or more organizations from the
prior list (or as assigned) and answer the following questions for the organization:
1. What in the future might seriously threaten the success, perhaps the very existence, of this
organization? As a group, develop at least three such future scenarios.
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2. Estimate the probability (0 to 100%) of each future scenario occurring.
3. Develop a strategy for each scenario that will enable the organization to successfully deal
with it.
4. Thoroughly discuss these questions within the group and arrive at your best possible
consensus answers. Be prepared to share and defend your answers in general class discussion.
Team Project 7: Contrasting Strategies
Starbucks is the dominant name among coffee kiosks—how does Dunkin Donuts compete?
Google has become the world’s search engine of choice—can Bing ever catch up? Does it make
a difference to you whether you shop for books at Amazon or Barnes & Noble, or buy gasoline
from BP, Shell, or the local convenience store?
Question
How do organizations in the same industry fare when they pursue somewhat or very different
strategies?
Instructions
1. Look up recent news reports and analyst summaries for each of the following organizations:
Coach and Kate Spade . . . Southwest Airlines and Delta Airlines . . . New York Times and
USA Today . . . UnderArmour and Lululemon . . . National Public Radio and Sirius Satellite
Radio. . . Coca-Cola and PepsiCo
2. Use this information to write a short description of the strategies that each seems to be
following in the quest for performance success.
3. Compare the strategies for each organizational pair, with the goal of identifying whether or not
one organization has a strategic advantage in the industry.
4. Try to identify other pairs of organizations and do similar strategic comparisons for them.
5. Prepare a summary report highlighting (a) the strategy comparisons and (b) those
organizations whose strategies seem best positioned for competitive advantage.
Cases for Critical Thinking
Dunkin Donuts – Growth Feeds a Sweet Tooth
Sidebar: Jamba Juice Blends for Fruitful Growth
Long before Starbucks was even a glimmer in anyone’s entrepreneurial mind, Dunkin’ Donuts
was a well-known chain of coffee shops in the Northeast. Today, Dunkin’ Donuts is a global
player quickly expanding its food and coffee menus to ride the wave of fresh trends appealing to
a generation of more health-conscious customers. It’s a highly competitive industry and change
is constantly on its menu. With Starbucks rethinking its positioning strategy and McDonald’s
offering a great tasting coffee at a reasonable price, Dunkin’ Donuts is hoping that careful
strategic planning will keep its customers “Runnin on Dunkin.”
Case discussion questions and suggested answers:
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1. DISCUSSION
What does a Porter’s Five Forces analysis reveal about the industry in which Dunkin’
Donuts and Starbucks compete? What are the strategic implications for Dunkin’ Donuts?
Porter's Five Forces model analyzes factors that influence a specific industry to help
managers understand its competitive factors. An analysis of the factors would seem to
indicate that the industry is very competitive and competitive advantages can be very
quickly copied. The Five Factors as they apply to Dunkin’ Donuts and Starbucks might
include:
• New entrants - Dunkin’ and Starbucks sell breakfast beverages and pastries in an
effort to expand its breakfast menu. Competition includes expansion by similar
regional companies like Caribou Coffee and McDonald’s whose offerings include
premium coffee.
• Customers - the bargaining power of buyers is very influential to the industry. The
current recession has resulted in the closing of hundreds of Starbucks locations,
while relatively few of the franchised Dunkin’ Donuts have closed.
• Substitute products - the large number of substitute beverages and breakfast
alternatives makes this a huge factor in the industry.
• Suppliers - occasionally the supply of coffee beans is limited, driving up the cost of
the beverage.
• Industry competition - Starbucks and other regional coffee shops; convenience
stores like 7-Eleven and Circle K; fast food restaurants like McDonald’s and
Burger King.
2. DISCUSSION:
Discuss the pros and cons of Jamba Juice’s expansion strategy and how it compares to that of
Dunkin’ Donuts. What similarities are there between the two companies in terms of their
growth strategies? Discuss.
Pros of Jamba’s expansion strategy:
• The company has expanded beyond just a maker of smoothies to a active/healthy
lifestyle brand.
• It has refocused on franchising, consumer packaged goods (CPG), and Jamba GO
stations at various venues, to facilitate further expansion.
• Expanded menu items: Its product variety includes whole fruit smoothies, squeezed
juices, hot oatmeal, breakfast wraps, bistro sandwiches, mini-wraps, California
Flatbreads, frozen yogurt, and various baked goods and snacks. The company has also
expanded its menu to include vegan and vegetarian options.
• Jamba’s presence in various venues: JambaGo Express is a smoothie concept created
to facilitate the company’s brand presence into venues where healthier, quick serve
options are part of the menu offering. This includes K-12 schools, universities, college
campuses, convenience stores and delis.
• Franchise business model (an asset light business model) was a clever way to raise
cash. It was far less capital intensive. It also improved the company’s balance sheet.
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Although the revenue from franchising is far lower, it represents pure profit. Jamba
has executed a remarkable transformation from many ailing company-owned stores to
a successful franchise business model.
• Jamba has licensed its Jamba brand name to sell consumer packaged goods (CPG)
online and through retail channels such as grocery, mass, club, and convenience
stores.
• Expansion of product offering with Talbott’s Teas
• Tennis pro Venus Williams is currently a company spokesperson (and franchisor) –
she advocates for active and healthy lifestyles.
Cons of Jamba’s expansion strategy:
• Jamba’s profitability is still volatile.
• In 2012, the company marked its first year of profitability after going public in 2006.
• Despite its comeback, there are still far more cash-rich formidable competitors.
• The consumer packaged goods industry is intensely competitive.
• Threats from cash-flushed competitors like McDonald’s, Wendy’s or YUM have
targeted the smoothie industry and can easily take sales away.
• As the company continues to sell more food items, it becomes more susceptible to
swings in commodity prices.
How Jamba’s expansion strategy compares to that of Dunkin’ Donuts:
• The use of other people’s money (franchisors) to expand and grow means less of a
capital investment, expanded menu items, retail presence.
3. PROBLEM SOLVING:
Gather information to build an up-to-date SWOT analysis for Dunkin’ Donuts. If you were the
CEO of the firm, what would you consider to be the strategic management implications of this
SWOT analysis, and why?
Strengths Weaknesses Opportunities Threats
Brand Recognition Conflict with franchise
owners
Low calorie menu items Competition from others
Customer Loyalty DD is nowhere near the
level of penetration in
developing countries as
compared to others
Healthier choices on
menu
Healthier lifestyles and
eating patterns (avoidance
of high calorie/sugary
foods)
Large variety of flavors of
donuts and baked items
Low barrier to entry for
competitors
Online marketing to
increase customer basis
Increased awareness of
healthy food choices
Known for its coffee Perception of nonexistent
healthy choices
Social media to increase
customer base
Childhood diseases on the
rise (diabetes and obesity)
Number of locations Expansion outside the
United States (emerging
markets)
Competition from local
pastry and coffee shops
Loyalty program Product expansion Competition from
McDonald’s and
Starbucks (coffee and
donuts)
Years of Coffee consumption on Price of coffee beans
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experience/longevity the rise in Asia, along
with income levels
Major sports team
association (Red Sox)
Recessionary spending on
“comfort foods” and less
expensive snacks
compared to other store-
bought items
Awareness of Fair Trade
policies for coffee bean
purchases.
Advertising and
marketing programs and
strategies
Growth through
franchising
Increased raw material
costs and coffee costs
Reputation for high
quality, superior grade of
coffee
Continued store growth
Largest seller of coffee by
the cup
The strategic management implications of this SWOT analysis Review current situation
would include developing and implementing new strategies and evaluate results.
4. FURTHER RESEARCH
Research the latest moves by Starbucks and other Dunkin’ Donuts’ competitors. What is
each doing that seems similar to and different from the approach of the other? Can you
say that Dunkin’ is on the right track? Is it carving out new market share? Or, is it going
to be more of a copycat player in the industry?
Latest news for:
Starbucks:
• Starbucks recently introduced several new sandwiches and salads on its menu to
increase sales in the U.S. in the slower afternoon and evening hours.
• With McDonald’s and Burger King offering specialty coffees, one way for Starbucks to
increase its revenue is by offering food items.
• Starbucks announced that it will include calorie information on menu boards at all
company-operated and licensed U.S. Starbucks.
• Opened first store in New Delhi, India and entered Vietnamese market.
• Expansion of company’s loyalty and rewards program
• Industry-first innovation that will enable customers to earn rewards for grocery
channel purchases that can be redeemed in Stabucks retail stores.
• Expansion of mobile payment platform
• Launch of new nonprofit corporation with a $1 million seed grant to introduce job
skills, leadership and apprenticeship programs to young people across the company’s
• Expansion of mobile payments platform, which is generating over three million U.S.
mobile payments per week.
• Schultz’s recognition of Starbucks 15-year business partnership with Mohammed
Alshaya, Executive Chairman, M.H. Alshaya Co., including comments about how
bringing specialty coffee to the Middle East serves as a model for the company’s future
expansion initiatives.
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-23
Dunkin’ Donuts:
In summary, Dunkin’ Donuts is expanding its menu to include a few new “better-for-you”
breakfast items and a few new “all-day menu items.” Also new is a frozen version of hot
chocolate. In addition, the company is interested in expanding into non-traditional venues
such as schools and universities. Its DDSmart menu has healthy items for those interested in a
healthier lifestyle. The company recently shifted to eggs from cage-free hens in an effort to
eliminate gestation crates from its supply chain.
• The introduction of two new chicken sandwiches (barbeque chicken and bacon-ranch
chicken) on its menu is a step in the brand’s commitment to all-day menu items. is a
significant step in the brand’s commitment to all-day menu items.
• Dunkin’ Donuts recently unveiled the Hot Chocolate Coolatta®, the newest addition to
its lineup of Coolatta frozen beverages.
• Adds turkey sausage breakfast sandwich to its item to permanent menu
• Chicken salad and tuna salad wraps are added to Dunkin’ Donuts menu
• New angus steak and egg sandwich and wake-up wrap added to menu
• Dunkin’ Donuts is interested in expanding into non-traditional venues including
colleges and universities, casinos, military bases, supermarkets, airports and travel
centers.
• The company uses Social Media (Twitter Sweepstakes and Instagram) to introduce new
products and promotions. They also have an app that provides coupons to loyal
customers.
• DDSmart with better-for-you breakfast option menu is for healthy items such as
oatmeal.
• Dunkin' Donuts Announces Shift to Eggs from Cage-Free Hens and Commitment to
Eliminate Gestation Crates from its Supply Chain.
What is similar?
• Focus on new and all-day menu items
• Healthy menu choices (calorie counts on Starbucks menus)
• Commitment to social responsibility and sustainable business practices
What is different?
Starbucks is a more hip and trendy place to get a cup of coffee, while Dunkin’ Donuts fancies
itself as a welcome place for any ordinary-Joe or Josephine. Dunkin’ Donuts is a place to grab
a reasonably priced quick or to go reasonably price cup or coffee while Starbucks is a more
expensive product with a higher quality reputation. In other words, Dunkin’ is more the
layman’s coffee and the feel of a fast food restaurant, while Starbucks, with its comfortable
atmosphere and seating, appeals to a higher socioeconomic demographic.
Is Dunkin’ on the right track?
Is it carving out new market share?
Yes, from some of its recent news items noted above, it appears to be targeting, in addition to
its morning coffee and donut eaters, those interested in healthy food choices along and all-day
menu items.
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Will it be a copycat player?
It depends. Dunkin’ Donuts has carved out a different target customer than Starbucks -- one
more focused on convenience and price.
Suggested Team Exercise for Chapter 7
Break the class into pairs or small (no more than four students) teams.
Assign each team an industry (pick industries that students can relate to such as chocolate candy;
automobiles; clothing; shoes; fast food; beer; cell phones; computers, etc.)
Have each pair or team identify (and explain if needed):
The company or product using a cost leadership strategy (example Chery from China)
The company or product using a differentiation strategy (example Scion)
The company or product using a focused cost leadership strategy (example Focus)
The company or product using a focused differentiation strategy (example Porsche)
Exploring the Variety of Random
Documents with Different Content
Reserve. The country was quite open with no cover at all, and
consisted of grass and stubble fields. The gently undulating ground
was particularly favourable to the Germans, who were past-masters
in the art of fighting rear-guard actions. At 5 A.M. the advance
began. The first bound was to the railway east of the village of
Quiévy, but no halt was made here, as it was found that the
advanced troops of the 1st Guards Brigade had pushed farther on
during the night. When the leading patrols reached the high ground
immediately east of Quiévy, they were met by heavy machine-gun
fire from the orchard north of Fontaine-au-terre Farm, and were
enfiladed by numerous machine-guns along the St. Vaast—Solesmes
road. The leading companies deployed here. The King's and No. 2
Companies, covered by their own fire, continued to advance by
rushes, and captured the orchard, from which the Germans hastily
retired. Captain Simpson halted No. 3 Company on the high ground
west of the farm, while south of the farm touch was gained with the
2nd Battalion Auckland Regiment from the New Zealand Division.
The machine-gun fire from the left flank, where the Scots Guards
were checked, continued to be very severe, and completely held up
No. 2 Company. Captain Spence decided to push forward with the
King's Company to try and outflank the enemy's posts, and sent
forward one platoon down the slope. Although this had the desired
effect, and the German infantry retired, they left their machine-guns,
which kept up a sweeping fire along the crest, and prevented the
Scots Guards from advancing. It was thought that, if a
demonstration was made straight towards them, it might perhaps
force them to retire, but when No. 2 Company attempted this the
German machine-guns never moved. Meanwhile the King's Company,
with that dogged determination which has characterised all its
movements during the war, drove away the Germans from the spur
of the hill south of Solesmes, and working round in the area
occupied by the New Zealand Division, pushed forward, and gained
the spur itself. The ground over which the King's Company passed,
consisted of a deep and broad valley quite devoid of cover, and the
slightest movement could be observed from the opposite slope,
where German field-guns and machine-guns were posted. The
Oct. 12.
manner in which Captain Spence directed his company and
surmounted all the difficulties, was specially mentioned by Lieut.-
Colonel Bailey, and this advance undoubtedly made a considerable
difference to the centre of the Guards Division. But the forward
position, which the King's Company had gained, was by no means
easy to retain, for the men were subjected to a heavy machine-gun
fire from the north, whilst the enemy's 5·9 guns registered on them.
These men remained unable to move a muscle until dark, when they
dug themselves in. No. 3 Company was moved up to an orchard in
close support, and, as there seemed no reasonable prospect of
success during daylight without heavy loss, it was not pushed up
into the attack. The German machine-guns were wonderfully well
placed, commanding the flat plateaus on the top of the ridges, with
no possibility of their being approached under cover, and our artillery
was unable to help, as it was practically impossible to locate these
machine-gun nests. The men were anxious to push on, and had to
be restrained. All this time the shelling was heavy but promiscuous,
and several men were hit by fragments. Captain Simpson, Second
Lieutenant Clarke, and Second Lieutenant Osborne were wounded in
this way, but the Battalion was really very fortunate in not having
suffered more than it did. Although patrols were sent out during the
night, they were unable to get very far on account of the enemy's
machine-guns, which had evidently been pushed forward to hinder
reconnaissance.
The next morning it was found that the Germans
had retired, and that the machine-guns had all been
withdrawn, the emplacements being full of empty
cartridge cases. Except for some shelling the morning proved
uneventful, and in the afternoon the 2nd Battalion Scots Guards and
1st Battalion Welsh Guards were ordered to attack on the left. Two
platoons from No. 2 Company of the 1st Battalion were ordered to
co-operate with them and guard their right flank. The advance was
successfully carried out with little opposition, although the German
artillery put down a heavy barrage on the west line. The company
runners in this fight behaved with great gallantry, and throughout
the day carried their lives in their hands, continually running great
risks. Posts were ordered to be pushed down to the railway, and
small reconnoitring patrols were sent out as soon as it was dark.
Except at the commencement of the operations the Battalion saw
few Germans, and the men realised they were fighting a very
cleverly hidden enemy. Each machine-gun nest had to be located,
and shot out in turn. During that night the King's Company was
relieved by No. 4, and No. 3 by No. 2. Lieutenant Challands, who
took over command of No. 3 Company, was knocked out temporarily
by the bursting of a shell during the relief. The Battalion was the
only one in the Division to reach its objective, and this was entirely
due to the dash displayed by both officers and men in this entirely
new form of open warfare.
The 2nd Battalion Scots Guards and 1st Battalion Welsh Guards
advanced up to the same line, held by the 1st Battalion Grenadiers.
The rest of the day was very trying for all troops in the forward area
on account of the continual shelling, as the Germans had excellent
observation, and were very accurate in their shooting. The line from
Solesmes to St. Python was very strongly held, and the two posts on
the right held by the Battalion were in dangerous proximity to the
enemy. One of these was rushed by a party of eighty Germans under
cover of an intense Minenwerfer barrage, and only one man
escaped. In the evening the Battalion was relieved by the 2nd
Battalion Coldstream Guards, and marched by companies to Quiévy.
The casualties during the three days' operations were 3 officers
wounded, and of other ranks 11 were killed, 3 died of wounds, 45
wounded and 17 missing.
The next day Major Bailey received the following message from
Brigadier-General C. P. Heywood, Commanding the 3rd Guards
Brigade:
I should like to put on record my appreciation of the good work done by
you and your Battalion during the past three days. I was particularly
impressed with the initiative and determined action of the King's Company in
pushing forward on the afternoon of the 11th to the advanced position in D
12 central.
On the 15th Major-General T. G. Matheson, Commanding the
Guards Division, addressed the following message to Brigadier-
General Heywood:
I wish to congratulate the Brigadier and all ranks of the 3rd Guards Brigade
on the manner in which they carried out the task assigned to them from
October 11th to 14th.
The advance of the 1st Batt. Grenadier Guards towards Solesmes and of
the 2nd Batt. Scots Guards to St. Python were carried out with very much
gallantry and produced very valuable results in securing us command of the
crossings of the River Selle. The hard fighting of the 1st Batt. Welsh Guards
on the left flank contributed largely to the success of the other two Battalions.
I am much pleased with the performance of the Brigade and should like my
appreciation to be conveyed to all ranks.
Two days, the 14th and 15th, were spent at Quiévy cleaning up
and reorganising, but on the evening of the second day the enemy
bombarded the billeting area with 8-inch shells, when two men were
killed and nine were wounded. On the 17th the Battalion marched to
Carmières, where Major Bailey attended a Brigade conference. On
the 19th the Battalion marched by companies with intervals of 200
yards to St. Vaast, and sheltered in houses and cellars until 10.15
P.M., when they moved up to the assembly area, directed by guides
from the 1st Battalion Coldstream Guards.
List of Officers who took Part in the Operations October 20-22
Major the Hon. W. R. Bailey, D.S.O. Commanding Officer.
2nd Lieut. J. C. Blunt Acting Adjutant.
Lieut. R. F. W. Echlin Transport Officer.
Lieut. R. G. Buchanan Act.-Quartermaster.
Capt. P. M. Spence, M.C. King's Company.
Lieut. A. M. Brown " "
2nd Lieut. L. E. G. Wall " "
Lieut. C. G. Kennaway No. 2 Company.
2nd Lieut. R. B. Osborne " "
2nd Lieut. M. G. Farquharson " "
Oct. 20.
Capt. J. H. C. Simpson No. 3 Company.
2nd Lieut. G. S. Lamont " "
2nd Lieut. L. F. A. d'Erlanger " "
2nd Lieut. N. P. Andrews " "
Lieut. A. E. D. Bliss No. 4 Company.
Lieut. R. S. Challands " "
2nd Lieut. C. B. Hall " "
Capt. W. Lindsay, R.A.M.C. Medical Officer.
Capt. the Rev. C. Venables Chaplain.
The night was dark and it was pouring with rain, when the
Battalion formed up along the line of railway between Haussy and
St. Vaast. It is impossible adequately to describe the absolute
wretchedness of forming up on a pitch-dark night in pouring rain. An
operation seemed hopeless, and was only possible by giving careful
instructions to every single man in the Battalion. Plenty of time was
allowed to prepare for this fight, but the Battalion was only just
ready when the time came to advance. No. 4 Company, under
Lieutenant Bliss, was on the left; No. 3 Company, under Lieutenant
Challands, in the centre; and No. 2 Company, under Lieutenant
Kennaway, on the right. Touch was obtained with the 8th Battalion
Gloucester Regiment in the Nineteenth Division on the left, and with
the Irish Guards on the right. The Royal Engineeers had arranged to
lay tapes from the railway to the eight temporary bridges, which
they had put over the River Selle, but these tapes were not laid until
shortly before zero hour, and one tape did not lead to a bridge, with
the result that the platoon which followed it had to wade across the
river.
From the very start everything went well, and the
barrage moved with perfect precision. Chasing the
Germans in the dark in this way was not without
excitement, as no one knew whether they would remain and fight,
or retire as soon as they were threatened. It was a great relief to
Major Bailey to find that the enemy had no intention of disputing the
crossing of the river, as this would have entailed the loss of a
number of men at the start. As it was, the Battalion proceeded in
Oct. 21.
Oct. 22.
artillery formation as far as the Haussy—Solesmes road, passing
over five or six lines of rifle-pits wonderfully well made in concrete.
When the creeping barrage began to move forward, the Battalion
moved with it, but there was little or no opposition, and the
objective was gained according to scheduled time. The few prisoners
that were captured said that the garrisons of their posts had fled as
soon as the barrage began. Direction was admirably kept, and the
men advanced close up to the barrage, in spite of the heavy plough
on the side of the hill on which they had to advance. The 2nd
Battalion Scots Guards and 1st Battalion Welsh Guards then came
through, and continued the advance. In the evening the German
artillery put down a very heavy barrage on the railway, shifting it
later to the road, and then covering the objective and the reverse
slope of the hill, but in spite of the shelling the casualties were not
heavy.
The shelling continued all the next day, but the
3rd Guards Brigade was not required. In the
evening the Battalion took over the whole Brigade
front from the Scots Guards and Welsh Guards; the King's and No. 3
Companies were placed in the outpost line; and Nos. 2 and 4
Companies took over the main line of resistance on the high ground
east of the Solesmes—Vendegies road.
The line of the Solesmes road was shelled all day,
but the Battalion was very lucky, although No. 4
Company was rather seriously gassed. Lieutenant E.
A. D. Bliss and Second Lieutenant C. B. Hall and ten men were all
gassed. In the evening the Highland Light Infantry relieved the
Battalion, which marched back to billets in St. Vaast. These
operations on the whole had been easy, as the Germans had put up
very little resistance, but the rain and mud had made everything
very miserable, and the men were soaked to the skin before the
attack commenced.
In all the villages round about civilians emerged from cellars,
having hidden there for five days in order to avoid being evacuated
by the Germans. Among the German prisoners, who had been
captured during the advance, were several regimental commanders
of the true Prussian type, with florid faces and bristling moustaches.
They presented a sorry spectacle in the cages, and seemed to feel
their position acutely.
Langfier Ltd photographers Emery Walker ph. sc.
Brigadier-General Lord Henry Seymour, D.S.O.
On the 23rd the following special order was issued:
2nd Batt.
The Commanding Officer congratulates all ranks on the way in which the
attack of the 20th was carried out. The difficulties of a night attack are always
great, but in this case they were almost entirely eliminated by the obvious
care with which the officers and N.C.O.'s had made their preparations and
explained the scheme of attack to their men. No one lost direction, and the
orders given out beforehand were carried out almost to the letter.
The conditions have been very bad, but as always you have made the best
of things and have kept up the Grenadier tradition of invariable cheerfulness
under hardships. You are now out for a short time to reorganise and refit. In a
day's time the Battalion will be as keen and smart as it was before, and I am
confident that that spirit which has carried you through this attack so well will
be as good and keen in any other operation which you may be called upon to
perform in future.
I congratulate all ranks, and I sympathise with you for not having found
more Germans to kill, which would have made up in some small degree for all
the worry and anxiety of the preliminary preparations.
(Signed) W. R. Bailey, Lt.-Col.
Commanding 1st Batt. Gren. Gds.
While the Second Division continued the attack, the 3rd Guards
Brigade remained in billets in St. Vaast. On the 25th Lieutenant H.
Freeman-Greene and Lieutenant W. A. Pembroke joined the
Battalion.
The 2nd Battalion
After the operations at the end of September the
Battalion bivouacked close to the village of
Demicourt for ten days' training. Meanwhile Lieut.-
Colonel Rasch, having been appointed to command the 1st
Provisional Battalion at Aldershot, left for England, and Major C. F. A.
Walker, M.C., took over the 2nd Battalion.
The following officers took part in the fighting on October 9:
Major C. F. A. Walker, M.C. Commanding Officer.
Capt. R. G. Briscoe, M.C. Adjutant.
Lieut. W. H. S. Dent. Intelligence Officer.
Lieut. L. Holbech, M.C. No. 1 Company.
Oct. 9.
Lieut. C. L. F. Boughey " "
2nd Lieut. E. M. Neill " "
Capt. G. B. Wilson No. 2 Company.
2nd Lieut. D. L. King " "
2nd Lieut. C. J. N. Adams " "
Capt. J. C. Cornforth, M.C. No. 3 Company.
2nd Lieut. K. B. Bibby " "
2nd Lieut. E. G. Harcourt-Vernon " "
Lieut. R. H. R. Palmer No. 4 Company.
Lieut. C. C. Cubitt " "
2nd Lieut. B. R. Osborne " "
Lieut. E. L. Coffin Medical Officer.
During the night of the 7th the Battalion moved into some
trenches near Marcoing, and next morning it crossed the St. Quentin
Canal at Masnières. The canal was being shelled at the time, but the
Battalion escaped without any casualties. Orders were now received
for the Battalion to take part in an attack, the first objective being
the La Targette—Forenville road, and the second the railway running
north-east of Wambaix. In view of the possibility of the enemy being
forced to retire, the instructions were that the leading companies
were to push on in the general direction of Cattenières.
Zero was 6 o'clock on the morning of October 9,
and the assembly area for the 1st Guards Brigade
was on the line of old German trenches, south-west
of Seranvillers. Taking up its position on the left of the line, the
Battalion had the 2nd Battalion Coldstream Guards on its right, with
the 1st Battalion Irish Guards in reserve. In conjunction with this
force, the 2nd Guards Brigade was to advance on the left and the
New Zealand Division on the right, and the boundary between the
two leading battalions was the main road through Seranvillers and
Wambaix.
It had been arranged for the barrage to descend on the first
objective, and so the 2nd Battalion Grenadiers and 2nd Battalion
Coldstream were able to start moving slowly forward ten minutes
before zero hour. No. 3 Company of the Battalion, under Captain
Cornforth, was on the right and No. 4 Company, under Lieutenant
Palmer, on the left, while No. 2 Company, under Captain Wilson, was
in support, and No. 1 Company, under Lieutenant Holbech, in
reserve. The foremost companies advanced in waves, and the
supports and reserves in artillery formation, preceded by strong
patrols, Captain Wilson's company being responsible for clearing the
village of Seranvillers. Two howitzers, a field-gun, several machine-
guns, and a few prisoners were captured without any real
opposition, and the Battalion pushed on very rapidly to within a
short distance of Cattenières, where the patrols were sent ahead
through the village.
But as soon as they emerged from Cattenières, and came on to
the ridge to the north they were held up by heavy machine-gun fire
from the wood surrounding the factory at Ignies-le-Petit. There was
a considerable stretch of open ground in front of the wood, and
progress became very difficult. Lieutenant Palmer, commanding No.
4 Company, ordered Second Lieutenant Osborne to try and advance
with his platoon on the left in order to enfilade the enemy in the
south-east corner of the wood. A certain amount of ground was
gained by sectional rushes under extremely heavy machine-gun fire,
but the complete lack of "dead" ground made real success
impossible, and Major Walker decided to postpone any farther move
until it could be made under cover of darkness.
A wonderfully gallant piece of work during this part of the fighting
was done by No. 16796 Private Edgar Holmes, and won for him the
Victoria Cross, which unfortunately he did not live to receive. He was
acting as a stretcher-bearer, and calmly and fearlessly went on with
his errands of mercy to the wounded under a withering machine-gun
fire. He succeeded in getting two men in, and, quite regardless of
the intense fire at close range, was attending to a third when he was
himself hit in the stomach. He did not falter for a moment, and,
paying no attention to his own wound, went forward once more to
rescue yet another of the fallen. He had covered thirty yards in the
direction of the enemy when he was hit again, this time fatally.
At 1 A.M. on October 10 Major Walker brought up the support and
reserve companies, and directed them to attack the wood and
factory at Ignies-le-Petit. They rushed the factory, encountering little
resistance, and then took up a line and dug in on the farther edge of
the wood, beyond the main road. The whole advance was a
complete success, and the casualties of the Battalion were only one
man killed and 12 wounded. Four hours after the attack began, the
1st Battalion Irish Guards passed through the Battalion, and went in
pursuit of the retreating Germans.
For the week that followed the Battalion was in Brigade Reserve,
and moved slowly forward through Fresnoy Farm, Bévillers, Quiévy,
Boussières to St. Hilaire, when it prepared for the forthcoming
attack.
In the operations on the 20th the officers engaged were:
Major C. F. A. Walker, M.C. Commanding Officer.
Lieut. S. T. S. Clarke, M.C. Adjutant.
2nd Lieut. A. F. Alington Intelligence Officer.
Lieut. L. Holbech, M.C. No. 1 Company.
Lieut. C. L. F. Boughey " "
2nd Lieut. E. M. Neill " "
Capt. G. B. Wilson No. 2 Company.
2nd Lieut. D. L. King " "
2nd Lieut. C. J. N. Adams " "
Capt. L. St. L. Hermon-Hodge No. 3 Company.
2nd Lieut. K. B. Bibby " "
2nd Lieut. E. G. Harcourt-Vernon " "
Lieut. H. B. G. Morgan, M.C. No. 4 Company.
Lieut. C. C. Cubitt " "
2nd Lieut. B. R. Osborne " "
Lieut. E. L. Coffin Medical Officer.
This attack was only part of a very extensive movement on the
whole of the Third Army front. The Sixty-first Division was ordered to
advance on the right of the Guards Division, and the Nineteenth
Division, under Major-General Jefferies, on the left. Acting as the
Oct. 19.
Oct. 20.
leading battalion on the right of the Guards Division, the 2nd
Battalion Grenadier Guards had the Valenciennes—Solesmes road as
its first objective, and, for its second, a line about a quarter of a mile
west of the villages of Vertain and Romeries. The capture of
Solesmes, which was known to be full of civilians, and strongly held
by the enemy, was entrusted to the Sixty-first Division, while the
Guards Division was to push right on to its final objective. This gave
the Battalion the delicate and dangerous task of advancing the
whole way with an exposed flank. Two other features added to the
difficulty of the manœuvre. The long distance to the final objective
had to be traversed under cover of darkness, and before it could
reach the outskirts of Solesmes, known as St. Python, the Battalion
had to cross the River Selle.
Leaving St. Hilaire at 9.30 P.M. on the 19th inst.,
the Battalion followed the 1st Battalion Irish Guards
until it reached its assembly position, which was the
railway running from Haussy to Solesmes. No. 1 Company under
Lieutenant Holbech was on the right, No. 2 Company on the left
under Captain Wilson, No. 3 under Captain Hermon-Hodge in
support, and No. 4 under Lieutenant Morgan in reserve. A drizzling
rain fell incessantly, and though the moon was full it was a very dark
night.
At zero hour, 2 A.M., under a heavy and very
effective barrage, the Battalion advanced to the
river in artillery formation, guided by tapes. Very
indifferent bridges had been erected by the Royal Engineers and the
Pioneer Battalion of the Coldstream Guards, and it was no easy
matter getting all the men across in single file on two extremely
narrow planks. However, there were very few casualties, and the
leading companies deployed into waves, and went forward, followed
by the supports and reserves in artillery formation. Very soon after
the start No. 1 Company got to St. Python, but as it was entering it
came under heavy machine-gun fire from the houses. Some useful
bombing work was carried out at this juncture, especially by No. 1
platoon, led by Corporal Hunter. As the barrage was moving forward,
Lieutenant Holbech decided to leave one platoon to complete the
capture of St. Python, supported by No. 3 Company, while the rest
of the leading companies went on to their first objective, which they
reached almost to schedule time. About 50 prisoners and several
machine-guns were captured in this stage of the attack.
There was an hour's halt at this point, in the course of which the
remaining platoon of No. 1 Company joined up with the leading
troops. It had been uphill work all the way, with a good deal of wire
to get through, and it had been found necessary to constitute No. 3
Company a defensive flank. Just before another move was due, a
party of the enemy was seen on the right rear of the Battalion, firing
lights towards Solesmes. One platoon under Lieutenant Holbech
wheeled about, and charged it from the rear, "getting home" with
the bayonet and capturing several machine-guns.
The final objective was reached soon after 4 o'clock. But the
Germans were inclined to hold on to their positions, and all the way
the two leading companies met with resistance. This was partly
owing to machine-gun fire from the right flank, as up to this time
Solesmes had not yet been cleared by the Sixty-first Division. On the
line of the final objective No. 1 Company took a field-gun with its
garrison of one officer and 25 men—which brought the total
captures of the Battalion in the attack up to 200 prisoners, two field-
guns, and a large number of machine-guns and trench mortars.
By daylight the leading companies had consolidated their line of
outposts, and in order to protect the right rear of the Battalion, No.
3 Company dug in in échelon to the right flank, with No. 4 Company
in rear of it. About 9 A.M. the Sixty-first Division continued its
advance from Solesmes, and came up into line with the Battalion.
Soon after dawn heavy enemy machine-gun fire had been brought
to bear upon the leading companies, and continued for several
hours, while the German artillery, which up to this time had taken
little part in the operations, began to assert itself, and shells of every
sort fell round the battalion. Lieutenant E. M. Neill, who had been
conspicuous for his work and bravery during the advance, was
3rd Batt.
wounded by shell-fire, and the total casualties were one officer and
52 other ranks. On the evening of the 22nd the Battalion was
relieved by the 24th Royal Fusiliers, and marched back to St. Vaast,
where it "embussed" for Carnières. There it remained until the end
of the month, when it moved on to St. Hilaire, proceeding the
following day to Capelle.
The 3rd Battalion
In the first week in October the Battalion
remained at Doignies, where during a practice
attack a barrage from a smoke rifle grenade was
tried, and on the 8th moved to Premy Chapel. An attack was being
made by the Sixty-second Division, and the Battalion, which was not
called upon, moved on later to Masnières. Cambrai could be seen in
the distance burning fiercely throughout the night.
On the 9th the orders were not received until the Battalion was in
its assembly position.
The following officers took part in these operations:
Lieut.-Colonel the Viscount Lascelles, D.S.O. Commanding Officer.
Capt. E. G. A. Fitzgerald, D.S.O. Adjutant.
Lieut. R. C. G. de Reuter Intelligence Officer.
Capt. E. R. M. Fryer, M.C. No. 1 Company.
Lieut. K. A. Campbell, D.S.O. " "
2nd Lieut. G. R. Gunther, M.C. " "
Capt. A. H. S. Adair, M.C. No. 2 Company.
Lieut. S. G. Fairbairn, M.C. " "
Lieut. C. B. Hollins " "
Lieut. F. Anson, M.C. No. 3 Company.
2nd Lieut. H. J. Gibbon, M.C. " "
Capt. E. J. Bunbury, M.C. No. 4 Company.
2nd Lieut. A. E. F. F. Strangways-Rogers " "
2nd Lieut. H. I'B. Smith " "
2nd Lieut. R. P. Papillon " "
Oct. 9.
Capt. J. H. Graff, U.S.A.M.O.R.C. Medical Officer.
Capt. the Rev. S. Phillimore, M.C. Chaplain.
In the early part of the attack one of our guns
appears to have been badly laid, with the result that
it continued to shoot short, causing several casualties among the
leading companies of the Battalion. This was particularly irritating,
since only a short time before these companies had been mistaken
for the enemy, and had been fired at by one of our own aeroplanes.
The first objective was taken by 6.30, and no Germans were
encountered, the only casualties being caused by our barrage.
The Battalion started off with No. 1 Company under Captain Fryer
on the right, No. 2 under Captain Adair on the left, No. 3 under
Lieutenant Anson in support, and No. 4 under Captain Bunbury in
reserve. As there seemed every possibility of the Germans retiring
rapidly, the scheme of attack was ambitious, with a large extent of
ground to be covered. The first objective was a trench running from
Niergnies to Seranvillers; the second objective the road running from
Cambrai to La Targette; and after that there were four "bounds,"
ending up with the Cambrai—Beauvois road. There was no sign of
the enemy, not even any hostile shelling at first, and no difficulty
was experienced in securing the objectives. In the second bound,
Wambaix Copse, which might possibly have been held by the enemy,
was also taken without opposition. At 10.30 the capture of
Estourmel was effected, and still the enemy had shown no sign of
fighting. Lord Lascelles decided that the dinners should be eaten
now, and as the 1st Guards Brigade had not come up there was
plenty of time for the men to dine before resuming the advance. It
was not until the Battalion reached the Cambrai—Beauvois road and
Igniel-dit-les-Frisettes that the enemy's resistance stiffened, and it
suffered casualties. Captain Adair with No. 2 Company occupied
Igniel, but reported that casualties were occurring from machine-gun
fire on his right, and from the enemy's heavy guns at long range.
This village was in a clump of trees on the crest of a hill on the
farther side of the Cambrai—Beauvois road, and was approached by
a sunken road, on each side of which the ground rose in a gentle
Oct. 10.
slope, and formed an ideal position for machine-guns. Captain Adair
advanced up the sunken road, and as soon as his company
appeared on the hill it was subjected to a harassing machine-gun
fire. He at first ordered his men to dig themselves in, but later he
decided to move up into Igniel-dit-les-Frisettes. When No. 2
Company moved into the trees and buildings, it was so heavily
shelled that Lord Lascelles, who had come up to see how the
situation was developing, told him his men would be safer out in the
open. There seems little doubt that the German ammunition was
already deteriorating, for when their shells burst the pieces did not
scatter so well as before. But for this the casualties would certainly
have been very heavy, and in all probability it would have been
found necessary to retire from the hill altogether. At 4.30 P.M. Lord
Lascelles received instructions to support a cavalry patrol of the
Oxfordshire Hussars, which had been sent out through the 1st
Battalion Coldstream on the left. He was surprised at this message,
for he knew that no cavalry patrol could possibly go out in the face
of this machine-gun fire, and when the officer commanding the
patrol appeared at the Battalion Headquarters to say that it had
been unable to go forward at all, he was able to disregard the order,
and send in a report asking for confirmation of his action. In the
evening orders were received to establish an outpost line with two
companies over the Cambrai—Beauvois road, with two companies in
support near Estourmel. That night a warning order was received for
a farther advance the next morning, and the Battalion Headquarters
moved up to Grand Chanfemel.
The next morning the 1st Battalion Scots Guards
passed through the outpost line, and continued the
advance by bounds, while the Battalion moved
forward in support. No. 3 Company on the right, under Lieutenant
Anson, and No. 4, under Captain Bunbury, formed the support, with
the other two companies in reserve. In the afternoon the Scots
Guards were held up west of St. Hilaire, and were ordered to
establish an outpost line for the night. Nos. 3 and 4 Companies were
placed under the orders of the Officer Commanding the 1st Battalion
Scots Guards, while two companies of the 1st Battalion Coldstream
were sent up to take their place.
On the 11th the 1st Guards Brigade passed through the outpost
line, and continued the advance, while the Battalion went into very
comfortable billets in St. Hilaire, where the German baths were used.
On the 13th the 2nd Guards Brigade passed through with the 3rd
Battalion Grenadiers on the right, the 1st Battalion Coldstream on
the left, and the 1st Battalion Scots Guards in reserve. These
Battalions were ordered to be at immediate notice to move in case
the 3rd Guards Brigade, which was crossing the Selle River, should
require assistance, but the warning orders were later cancelled; and
that night the Battalion relieved the 2nd Battalion Scots Guards in
the front line along the Selle River. Second Lieutenant Gunther with
a patrol of eight men crossed the river, and surprised a German
whom he gagged and brought back. He reported that the enemy
seemed in a sleepy and disorganised state, and Lord Lascelles
accordingly asked for permission to push a company across the river
that night, but was told instead to establish a bridgehead on the
following night north of St. Python.
The erection of a bridgehead so near to so many houses was a
matter of some difficulty, since it was obvious that the crossing could
not be held if the enemy occupied houses within 300 yards of it.
Lord Lascelles therefore ordered Lieutenant H. I'B. Smith to occupy
the nearest house to the bridgehead and Lieutenant F. Donnison to
search the four or five houses near it and make sure they were
empty. Second Lieutenant Smith had no difficulty in occupying the
house, but found that the walls on the enemy's side were so full of
large holes that the house was untenable. Lieutenant Donnison
moved forward to reconnoitre but ran into the Germans in some
force in the streets beyond, and was forced by machine-gun fire and
bombs to fall back on Lieutenant Smith's party, leaving behind two
men who were too badly wounded to move.
The alternatives open to Lord Lascelles were first, to hold the
bridge with trenches dug practically on it, but this was dismissed as
being strategically unsound; secondly, to dig trenches beyond the
bridge, which was difficult, because the men would have to be on
the top of the river bank, and overlooked by the houses 300 yards
away; thirdly, to occupy one house and strongly fortify it. This
seemed at first to be the best solution of the difficulty, but when
Second Lieutenant Smith and Second Lieutenant Donnison, who had
behaved with great gallantry and coolness, reported that it was
impossible to hold the nearest house, and that all the neighbouring
houses would have to be cleared of the enemy, Lord Lascelles came
to the conclusion that this would involve him in endless operations in
the town. He therefore decided to have the bridgehead dug in on
the banks of the river.
Captain Bunbury, who commanded No. 4 Company, from which
the two platoons had been sent to secure the houses on the farther
side of the river, was placed in a difficult position. He brought up the
remainder of his company, and held a quarter of the village of St.
Python, the houses on the other side of the stream being held
entirely by the Germans. It was impossible to get to him in daylight,
and by night all the streets were swept with machine-gun fire. He
handled his men under circumstances of exceptional difficulty with
some skill during the days he was there. Throughout these
operations some five hundred civilians lived in the cellars and
performed many acts of kindness to the men of the Battalion who
visited them. It was impossible for them to move out of their retreat
without being shot at. One little girl, eleven years old, quite
unconscious of the danger she ran, walked out in the streets in
broad daylight, and was brutally shot by a German; at great risk one
of the men of the Battalion went out and carried her back, but she
died.
Operations
October 20th, 1918
Emery Walker Ltd.
This was the beginning of the period when the Germans seemed
to spare all the buildings, and to concentrate their fire chiefly on the
exits from villages.
On the 16th the enemy was reported to be massing men on the
St. Python—Haussy road, and our artillery shelled the area indicated
for two hours, but no counter-attack developed. The following day
the Battalion was relieved, and went into billets at St. Vaast. On the
20th the 1st and 3rd Guards Brigades attacked, and captured the
high ground east of Solesmes and St. Python, but the 2nd Guards
Brigade was not wanted. On the 22nd the whole of the Guards
Division was taken out of the line for a week's rest.
Exploring Management 4th Edition Schermerhorn Solutions Manual
Nov. 1918.
The Guards
Division.
CHAPTER XXXV
NOVEMBER
Diary of the War
The Versailles Conference opened. A mutiny
among the German sailors at Kiel broke out, and
had far-reaching effects. In France the Allied Armies
continued to press forward, and the German retreat became more
rapid. In reply to overtures made by the Germans, the Allies replied
that if Germany wished for an armistice she must apply to General
Foch, in the usual military form, for the conditions under which an
armistice would be granted. On the 8th the German Envoys were
received by General Foch, and were given the conditions drawn up
by the Allies. A revolution broke out in Berlin, and the abdication of
the Kaiser was announced. On the 11th the Armistice was signed.
At the beginning of November Austria surrendered
unconditionally.
The Guards Division
The advance in November, culminating in the
capture of Maubeuge, was so rapid, the extent of
ground covered in so short a time so great, and the
number of prisoners and guns taken so large, that there was little
doubt that an Armistice on any conditions was the only thing that
could save the German army from absolute disaster.
The Guards Division moved up on the 2nd from Escarmain
towards Villers Pol. The objectives or bounds were no longer
measured in yards but in miles, and the ambitious programme
produced by the Divisional Staff would have been considered beyond
the bounds of possibility, even six months before.
It was known that the Germans must now stand and fight, if they
were to gain time for the withdrawal of their armies elsewhere, and
a final attack was ordered for November 4 in order to break through
their resistance, and complete the victory of the Allied Armies.
Preparations for the attack were somewhat disorganised by a partial
withdrawal of the enemy during the afternoon of the 3rd.
General Sergison-Brooke and General de Crespigny felt their way
forward, and Villers Pol was occupied during the night, but it was
impossible to notify the artillery of the exact position of the leading
companies by the time the attacks started on the 4th, and in order
to allow a margin of safety the barrage had to start some way east
of the village, with the result that some of our troops never caught
it. Up to mid-day the Germans fought very stubbornly, but they were
everywhere driven back, and by the evening Preux-au-Sart was in
our hands, an advance of nearly four miles. So fierce had been the
fighting that the losses on both sides were exceptionally heavy, the
Germans in particular leaving a large number of dead upon the
ground.
During the two following days Heywood's Brigade drove back the
enemy's rear-guards another five miles, and patrols of the 1st
Battalion Welsh Guards entered Bavai, an important town, and the
junction of no less than eleven roads. Bavai was not on the front
allotted to the Guards Division, but during the whole of this advance
the line on the left of the Division was very much thrown back,
which caused great inconvenience, since it enabled the enemy to
enfilade the troops from the north, for the Germans were now
prodigal in the expenditure of shells, which they knew they could
never carry away with them. The troops billeted in villages in rear
suffered considerably, and as the left flank of the Division was
thrown back the back areas were all within easy range from the
north. In particular the village of Amfroipret was heavily punished,
and General Heywood was severely wounded by a shell, which
exploded in his headquarters just west of that village. Once more
the 3rd Guards Brigade was without a commander. Brigadier-General
Campbell, V.C., was sent for to take command, and in the meantime
the Brigade was commanded by Lieutenant-Colonel Stirling, Scots
Guards.
On the 7th Sergison-Brooke's Brigade, passing through the 3rd
Guards Brigade, continued to drive the enemy back, but the
following day the advance was checked owing to enfilade fire from
the north. That afternoon a German orderly carrying an important
message was captured. The message was at once sent by special
despatch rider to Divisional Headquarters, and on being translated
proved to be an urgent order to the rear-guard commander, telling
him to hold on to his present position at all costs, and cover the
withdrawal of the main body to a line east of Maubeuge. The
resistance of the rear-guard, the message added, must be such as to
gain time for the consolidation of this new line and thus save the
rest of the army. General Matheson at once ordered General
Sergison-Brooke to push forward his reserve Battalion (the 3rd
Battalion Grenadiers) directly it was dark, with instructions to force
its way through the enemy's rear-guard and straight on down the
road to Maubeuge.
The 3rd Battalion Grenadiers moved forward at 10 P.M., and
reached the citadel of Maubeuge at 2 A.M., but it was just too late to
cut off the enemy's rear-guard. De Crespigny's Brigade was ordered
to consolidate a line on the high ground east of the city; this was
many miles east of any point reached by the remainder of the British
Army. With the capture of Maubeuge the advance of the Guards
Division ended, and at 11 A.M. on the 11th the Armistice was
signed.
The final rapid advance had been made under circumstances of
exceptional difficulty, since the systematic destruction of the railways
by the Germans had necessitated the supply of ammunition and
rations being brought up by road. The country was closely
intersected by streams, and as all road bridges were destroyed, it
was necessary to erect temporary bridges with deviations through
the fields leading to them, while the original bridges were being
repaired. Constant rain and the continuous stream of transport soon
1st Batt.
turned these deviations into a quagmire, through which the horses,
often up to their bellies in mud, had to pull their heavy load: only
the persistent determination of the transport officers and men to get
through at all hazards, and the fine condition of the horses made the
task of supplying the troops possible.
Even then these efforts would have been of no avail, but for the
work of the Royal Engineers in repairing the innumerable bridges to
carry lorry traffic: day and night, without rest and with scarcely time
for food, they worked, and never failed to do what was asked of
them.
But the finest part of the advance, without which victory could not
have been enforced in 1918, was the dash and courage of the
infantry in face of the insidious knowledge that peace was within
sight. Every officer and man who went into those attacks in
November knew that it might be the last engagement of the war,
and that if he avoided unnecessary risk he would probably get
through safely; if he took it, he might be throwing away his life on
the last day of the war. That knowledge had not the smallest effect
upon the conduct of the troops, and the attack on November 4 was
carried out with a dash and reckless courage that had never been
surpassed in the war.
The result cannot be over-estimated: instead of a half-hearted
Armistice with the Germans still under the impression they were, as
far as the army was concerned, virtually the victors, the last attacks
had shown them that it was merely a matter of estimating how far
their defeat had been completed, and had made them understand
that their safest course lay in bringing about an Armistice as speedily
as possible, to save the reputation of their army.
The 1st Battalion
After ten days' rest spent in billets at St. Vaast
the Battalion went in pursuit of the retreating
Germans, and marched to Escarmain, which was
being shelled by the enemy. On the 4th the 1st and 2nd Guards
Nov. 5.
Brigades attacked, while the 3rd Guards Brigade was in Divisional
Reserve. The Battalion moved by companies at 200-yards intervals
to Mortre Farm, where it bivouacked in the orchard, moving on again
in the afternoon to Villers Pol. Here orders were received that the
Battalion was to go through the 3rd Battalion Grenadier Guards and
to continue the advance.
List of Officers who took part in the Operations from November 4 to 7
Lieut.-Colonel the Hon. W. R. Bailey, D.S.O. Commanding Officer.
Major C. H. Greville, D.S.O. Second in Command.
Lieut. J. A. Lloyd Acting Adjutant.
2nd Lieut. J. C. Blunt Intelligence Officer.
Capt. J. Teece, M.C. Quartermaster.
Capt. P. M. Spence, M.C. King's Company.
Lieut. R. G. Buchanan " "
2nd Lieut. A. D. Anderson " "
Lieut. C. G. Kennaway No. 2 Company.
2nd Lieut. M. G. Farquharson " "
2nd Lieut. G. S. Lamont, D.S.O. " "
Lieut. R. S. Challands No. 3 Company.
Lieut. W. A. Pembroke " "
2nd Lieut. N. P. Andrews " "
Lieut. H. Freeman-Greene No. 4 Company.
2nd Lieut. L. F. A. d'Erlanger " "
2nd Lieut. C. A. Fitch " "
Capt. W. Lindsay, R.A.M.C. Medical Officer.
Capt. the Rev. C. Venables Chaplain.
At 2.15 A.M. the Battalion moved out from Villers
Pol with intervals of thirty yards between platoons,
and marched to La Buvette cross-roads, where a halt was made, and
the Lewis guns were taken off the limbers. Directed by two guides
from the 1st Battalion Scots Guards, the Battalion made its way
across country to a bridge, where a long halt was made to find the
Headquarters of the 3rd Battalion Grenadiers—no easy matter in the
dark. The Battalion eventually managed to get into position close
behind the front line posts. No. 2 Company, under Lieutenant
Kennaway, was on the right and in touch with the 2/20th London
Regiment from the Sixty-second Division; No. 3 Company, under
Lieutenant Challands, on the left in touch with the 2nd Battalion
Scots Guards; No. 4 Company, under Lieutenant Freeman-Greene,
was in support; and the King's Company, under Captain Spence, was
in reserve.
At 6 A.M. the advance began. Rain fell and continued
intermittently during the three days' operations. The advance was
much hampered, especially in the initial stages, by a creeping
barrage put down by the Sixty-second Division, without any warning
having been given to the Battalion. The going was very heavy, and
the very enclosed country, intersected by thick hedges and wire
fences, made it difficult for the companies to keep their directions.
Little opposition was encountered, until the leading platoons reached
Amfroipret, when one German officer and five men were taken
prisoners in the village. Immediately east of the village and in the
wooded country south of the railway, the Battalion began to
encounter the enemy's rear-guard, but after driving it in some way
the advance came to a standstill about the line of the road from
Bout la Haut to Cambron Farm. The extraordinary difficulty of
locating a hidden enemy in such an enclosed country made the
advance hazardous, and the Germans appeared to be holding very
strongly with machine-guns a line some five hundred yards east of
this road. Lieutenant Kennaway, with No. 2 Company, attempted to
secure the cross-roads in front of him, and failed to make any
headway against the enemy's machine-guns. During this gallant
attempt Lieutenant Lamont, who was with the leading platoon, was
killed, in addition to many men.
The situation was not without anxiety, for on neither flank could
any British troops be seen. It looked as if the Battalion had been
going on too fast for the rest of the line, and Lieutenant-Colonel
Bailey decided to wait until the situation on the right developed. No.
2 Company accordingly dug in where it was, and the King's Company
was moved to Cambron Farm to fill up the gap there was between
Nov. 6.
the right of the line and the Sixty-second Division. The situation on
the left required some adjustment, for the 2nd Battalion Scots
Guards had been apparently held up, and No. 3 Company had to be
responsible for that flank of the Battalion. About mid-day a company
of the Scots Guards came up through the village, and occupied
Bermeries without opposition, making the left flank once more
secure. This enabled No. 4 Company to push forward through the
orchards and drive out an enemy's post, but again the enemy's
machine-guns prevented any farther advance. The difficulties in this
action were that, when once a company or platoon had been sent
off anywhere, it could not be found again owing to the enclosed
nature of the country. No communication between the various
parties was possible, and the operations therefore developed into
small isolated parties fighting independently of each other. The
Germans began to shell the village with heavy shell during the
afternoon, and the front line posts were fired on at close range by
field artillery. During the evening No. 3 Company took over the
outpost line from No. 4 Company, which was withdrawn to cellars in
the eastern end of the village.
Lieut.-Colonel Bailey received orders for a farther advance next
day, and the King's and No. 2 Companies were to secure the cross-
roads, if possible during the night. It was, however, so dark, and the
enemy was in so great strength, that the operation was not
attempted that night. Brigadier-General Heywood, commanding the
3rd Guards Brigade, was wounded in the evening, and the command
devolved upon Lieut.-Colonel Stirling, commanding the 2nd Scots
Guards.
It poured with rain all night. The Battalion formed
up south of the railway on the line of the forward
posts, with the King's Company, under Captain
Spence, on the right; No. 4 Company, under Lieutenant Freeman-
Greene, on the left; No. 3 Company, under Lieutenant Challands, in
support (their position north of the railway being taken over by the
Welsh Guards), and No. 2 Company, under Lieutenant Kennaway, in
reserve. The King's Company and No. 2 Company were ordered to
make good the line of the Bavai—Queve-au-loup road, where Nos. 2
and 3 Companies would advance through them, and secure the last
two objectives. The King's and No. 4 Companies were comparatively
fresh, as they had had some hours' rest in barns and cellars during
the night, but Nos. 2 and 3 Companies were soaked through by the
rain, and tired out after a hard day constantly on the move and a
night spent in digging in on the outpost line. At 6 A.M. the advance
began, and was again most difficult, on account of the enclosed
country. The Battalion met no opposition until it reached some high
ground, when the leading platoons came under a very heavy
machine-gun fire from the far side of the valley, and a harassing fire
from field-guns. No. 4 Company was temporarily checked, but the
King's Company, under cover of the houses and hedges along the
Mecquignies road, seized the crossing over the river, and worked up
till it got in touch with a company from the Sixty-second Division on
the right. This advance through houses was well carried out, and the
Lewis gunners performed wonders in getting their guns into houses.
One party of German machine-gunners was shot down in the church
tower. No. 3 Company was halted on the road, and No. 2 Company
in reserve moved up to the cross-roads at Bavisiaux. The grounds of
Mecquignies Château were strongly held by machine-guns, but after
a sharp fight the King's Company drove out the enemy and seized
the Château. In this fighting Second Lieutenant A. D. Anderson was
killed, while gallantly leading his men to the attack. Lieutenant
Freeman-Greene, seeing the King's Company advance up the farther
slope, at once began to push on with No. 4 Company, and in spite of
a hail of machine-gun bullets reached the line of the river with little
loss, and gained touch with the left of the King's Company. After this
the fighting became very promiscuous, and platoons became
scattered among the orchards and fields of the Château. Touch was
established with the Welsh Guards, who had been temporarily
checked in Buvigny, and who were now moving on, and the enemy
seemed to be retiring all along the line. Lieut.-Colonel Bailey was
ordered to push on and try and seize the line on the Bavai road
before night, and he accordingly moved up No. 2 Company to the
Château grounds. The King's and No. 4 Companies had in the
Nov. 7.
meantime made good the high ground north of the Château, driving
out some advanced posts of the enemy. No. 3 Company was ordered
to move through Mecquignies village and to seize the orchards
north-east of the village. This it succeeded in doing, meeting with
little opposition. The King's and No. 4 Companies at once prolonged
the line to the left, and pushed out patrols to the east. This line was
consolidated, and as the night was very dark no farther advance was
considered advisable.
The 466th German Regiment which opposed the advance fought
extremely well, and was cleverly handled by its commander, who
thoroughly understood how to fight a rear-guard action. The wet
weather and the mud made these operations peculiarly trying to
men who had had little training in close country fighting, but the
discipline in the Battalion was so good that each platoon, however
isolated, could be relied on to act intelligently. The scenes in the
various villages were most touching, for the civilians who emerged
from cellars and underground dug-outs all acclaimed the men as
their deliverers, and were highly excited in their joy.
Early on the 7th the 1st Battalion Scots Guards
advanced through the Battalion, which was
withdrawn to Amfroipret. Lieut.-Colonel Bailey
issued the following message to the Company Commanders:
Please let all ranks know that I consider the advance on the 5th and 6th to
have been carried out excellently in spite of very heavy going and the
difficulties of keeping direction. On the 5th Nos. 2 and 3 Companies, though
they had little fighting, had a thoroughly miserable and uncomfortable time,
which as usual was borne with the greatest cheerfulness. The King's Company
and No. 4 Company were better off, as they got a few hours' rest under cover.
On the 6th, in spite of very heavy machine-gun fire from front and flank
and most difficult country, the King's Company and No. 4 pushed ahead and
drove in the rear troops of the enemy, thus making good the passage of the
river Du Moulin de Bavai. The greatest credit is due not only to the fine
fighting powers of the men but also to the good leading and forethought of
the leaders.
The two days' fighting were unsatisfactory as far as the killing of Germans
was concerned, and the conditions miserable from the start to finish, but the
2nd Batt.
Battalion, as always, went quicker and farther than any other Battalion in the
Brigade, and the distance you went undoubtedly helped the 24th Division by
threatening the communications of the enemy, holding the ground north-west
of Bavai, and causing them to retire. You have well kept up the traditions of
the Regiment and maintained the Grenadier spirit—the most magnificent in
the world. I congratulate officers, non-commissioned officers, and men, and I
know that you will never fail.
W. R. Bailey, Lieut.-Colonel,
Commanding 1st Battalion Grenadier Guards.
On the 9th the Battalion marched to La Longueville, and the 1st
Guards Brigade entered Maubeuge. On the following day it reached
Douzies, where the news arrived that the Armistice had been signed.
On the morning of the 11th the Battalion paraded, and the
Commanding Officer read out the official telegram declaring the
Armistice to be in force.
Operations
November 1-11, 1918
Emery Walker Ltd.
The 2nd Battalion
Nov. 4.
In the fighting on November 4 the following officers took part:
Lieut.-Colonel C. F. A. Walker, M.C. Commanding Officer.
Capt. R. G. Briscoe, M.C. Adjutant.
Lieut. L. Holbech, M.C. Intelligence Officer.
Capt. L. St. L. Hermon-Hodge No. 1 Company.
2nd Lieut. D. L. King " "
Lieut. W. H. S. Dent No. 2 Company.
2nd Lieut. C. J. N. Adams " "
Lieut. R. H. R. Palmer No. 3 Company.
2nd Lieut. K. B. Bibby " "
2nd Lieut. E. G. Harcourt-Vernon " "
Lieut. C. C. Cubitt No. 4 Company.
2nd Lieut. B. R. Osborne " "
Lieut. E. L. Coffin Medical Officer.
The Battalion marched from Capelle through La
Croisette and Villers Pol to its assembly area, which
was a line 100 yards east of the Jenlain—Le Quesnoy road. Villers
Pol was being heavily shelled at the time, and a good number of
casualties resulted. Lieut.-Colonel Walker was ordered to advance in
support of the 2nd Battalion Coldstream Guards, until the capture of
the first objective, the Fresnay—Wargnies-le-Petit road, had been
completed, then to pass through and secure the second objective, a
line some 3000 yards farther east. Zero hour was fixed for 7.20 a.m.
The rain ceased early, but a very heavy mist hung low over the
ground and made it impossible for troops to see more than 200
yards ahead. No. 4 Company, under Lieutenant Cubitt, was on the
left of the line; No. 3 Company, under Lieutenant Palmer, on the
right; No. 2 Company, under Lieutenant Dent, in support; and No. 1
Company, under Captain Hermon-Hodge, in reserve.
The 2nd Guards Brigade under Brigadier-General Sergison-Brooke
went forward on the right of the Battalion. Owing to mist the
Coldstream lost their direction, and proceeded at a right incline.
Seeing troops ahead moving along close to the barrage, the
foremost companies of the Battalion imagined that they were
Nov. 5.
Coldstream Guards making for the first objective. It was only
discovered later that these were really the Germans in retirement. As
No. 4 Company passed over the high ground near the wood south-
west of Wargnies-le-Petit, the mist suddenly lifted, and they came
under heavy machine-gun fire from the north. Lieutenant Cubitt was
wounded, and the company had a considerable number of
casualties. Second Lieutenant Osborne, who now took command, led
two platoons a bit farther by short rushes, but was eventually
stopped by a sweeping machine-gun fire, which made farther
progress impossible. German field-guns were also firing at a short
range, and the Battalion lost a good many men. Lieutenant Osborne
therefore took it upon himself to make a personal reconnaissance of
the enemy's positions, and see whether there was not a better line
of advance. With almost reckless gallantry he went out, and carefully
examined the German line, but the result of his scrutiny was never
known, as he was shot through the heart by a machine-gun bullet
on the way back. As No. 4 Company was now without an officer,
Sergeant E. Carter took command.
Meanwhile No. 3 Company under Lieutenant
Palmer had made its way through the southern part
of the wood near Wargnies-le-Petit. On leaving the
wood along the eastern edge, they came under machine-gun and
rifle fire from the enemy, who was barely 200 yards away. Lieutenant
Palmer advanced by short rushes, and not only took the position, but
captured or killed the whole garrison. It was found impossible to
proceed, and the company dug in a line of outposts. During this
attack the field-guns of the Guards Divisional Artillery were brought
up at a gallop to within a very short distance behind the leading
troops—a daring and difficult achievement that is worthy of record.
As soon as these guns opened fire on the village of Wargnies-le-
Petit, the companies on the left were able to continue their progress.
Touch was then gained with the 3rd Grenadier Guards on the right,
and with the Forty-second Division on the left. Nothing more could
be done that afternoon, and the Battalion consolidated its position.
Early on the morning of the 5th the 1st Battalion Irish Guards passed
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  • 5. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-1 CHAPTER 7 Strategy and Strategic Management Insights and hard work deliver results Chapter 7 Overview Each Chapter contains several inset features designed to assist the student reader in applying the concepts to relevant examples. Management Live illustrates how popular movies demonstrate management concepts in the chapter. Role Models features a management professional that illustrates key chapter concepts in a novel, visionary or inspirational way. Explore Yourself refers students to self assessment activities relevant to concepts in the chapter. Ethics Check profiles examples of ethical issues in management. Manager's Library features books that illustrate current events or trends relevant to chapter concepts. Facts to Consider introduces research or trends that may be used for class discussion in the classroom or online for distance learning. Chapter Seven provides a definition of strategy and a review of strategic management and insights. The chapter explores various levels of strategies, including those for growth, in use at most organizations. Considerable attention is then devoted to both corporate-level and business-level strategy formulation. Divestiture and restructuring strategies, used primarily when an organization runs into difficulties, are reviewed. A brief discussion of firms pursuing global strategies, cooperative and partnership strategies, and e-business strategies follows. This chapter focuses on strategic management and the role that strategy plays in achieving competitive advantage and maximum organizational performance. The chapter begins by defining the key terms and concepts in strategic management and describing the strategic management process. Emphasis is placed on strategy formulation and strategy implementation. The importance of strategic management for gaining a competitive advantage is also discussed. This is followed by a discussion of the different levels of strategies used by an organization. Considerable attention is then devoted to both corporate- level and business-level strategy formulation. The chapter’s focus then shifts to the process of strategy implementation, with emphasis being placed on common strategic planning failures that hinder strategy implementation and the importance and role of strategic leadership. Next is a review of how managers formulate and implement strategies to accomplish long- term goals and competitive advantage. The steps of the strategic management process are defined, along with an explanation of strategy formulation as the basis of organization’s mission and objectives. A SWOT analysis, tool to analyze company and industry strategy and competitiveness, details an organization’s internal strengths and weaknesses and external opportunities and threats is explored further. Porter’s competitive strategies model and tools to understand the competition position of a company and challenges within its industry are reviewed. Last is a discussion of strategic leadership to ensure strategy implementation and control.
  • 6. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-2 Chapter 7 Takeaway Questions • Takeaway 7.1 What Types of Strategies Are Used by Organizations? • Takeaway 7.2 How Do Managers Formulate and Implement Strategies? Chapter 7 Objectives • To define and explain strategy as a comprehensive plan to achieve competitive advantage. • To categorize and explain corporate, business, and functional strategies used within organizations. • To understand how organizations expand and the types of growth strategies utilized. • To explain strategies organizations employ when they run into performance difficulties. • To explain the importance of global growth opportunities and ways organizations can pursue globalization strategies for further growth. • To explain how cooperative strategies and further cooperation among organizations create new areas of mutual interest. • To explain how companies use the internet or e-business strategies for competitive advantage. • To decipher between web-based business models. • To explain how an organization’s mission and objectives becomes a basis for its strategy formulation. • To define and explore how a SWOT analysis is used to examine an organization’s strengths and weaknesses as a basis for developing strategies. • To review Michael Porter’s models as useful tools in understanding the competitive position of a company and the challenges within an industry. • To explain Porter’s competitive strategies model. • To understand how companies operating multiple businesses selling many different products utilize a portfolio planning strategic approach. • To explain the Boston Consulting Group or BCG Matrix. • To explain the importance of strategic leadership and how to implement strategies. • To list the responsibilities of a strategic leader. Chapter 7 Lecture Outline: • Takeaway 7.1 What Types of Strategies Are Used By Organizations? o Strategy is a comprehensive plan for achieving competitive advantage o Organizations use corporate, business, and functional strategies o Growth strategies focus on expansion. o Restructuring and divestiture strategies focus on consolidation o Global strategies focus on international business initiatives o Cooperative strategies focus on alliances and partnerships o E-business strategies focus on using the Internet for business success. • Takeaway 7.2 How Do Managers Formulate and Implement Strategies? o The strategic management process formulates and implements strategies o Strategy formulation begins with the organization’s mission and objectives
  • 7. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-3 o SWOT analysis identifies strengths, weaknesses, opportunities, and threats o Porter’s five forces model examines industry attractiveness o Porter’s competitive strategies model identifies business or product strategies. o Portfolio planning examines strategies across multiple businesses or products o Strategic leadership ensures strategy implementation and control Chapter 7 Supporting Materials Figures • Figure 7.1: What Are the Steps in the Strategic Management Process? • Figure 7.2: What Does SWOT Analysis Try to Discover? • Figure 7.3: What Is Porter’s Five Forces Model of Industry Attractiveness? • Figure 7.4: What are Strategic Options in Porter’s Competitive Strategies Model? • Figure 7.5: Why is the BCG Matrix Useful in Strategic Planning? Thematic Boxes and More • Management Live: Critical Thinking and Tron: Legacy • Role Models: Wendy Kopp Tackles the Culture of Low Achievement • Ethics Check: Life and Death at an Outsourcing Factory • Facts to Consider: Disposable Workers Are Indispensible to Business Profits • Manager’s Library: Rebooting Work Transform How Your Work in the Age of Entrepreneurship by Maynard Webb • Explore Yourself: Critical Thinking • Tips to Remember: Key Operating Objectives of Organizations • Find Inspiration: Climbing High With Patagonia, Inc. • Table 7.1 Web-Based Business Models Applications • TestPrep 7 Multiple-Choice Questions • Skill Building Portfolio o Self-Assessment 7: Handling Facts and Inferences o Class Exercise 7: Strategic Scenarios o Team Project 7: Contrasting Strategies o Hot Topic: Pro and Con Debate: How about a “double Irish” with a “Dutch sandwich”? • Case Snapshot: Dunkin’ Donuts – Growth Feeds a Sweet Tooth • Sidebar case: Jamba Juice Blends for Fruitful Growth Chapter Outline: Takeaway 7.1: What Types of Strategies Are Used by Organizations? • Strategy is a comprehensive plan for achieving competitive advantage ✓ A strategy is a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish its goals ✓ “Best guess” about what to do to be successful in the face of rivalry and changing conditions ✓ Strategic intent is a unifying target or goal
  • 8. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-4 ✓ Competitive advantage is an “edge” or method of operations that allows an organization to outperform rivals ➢ Sustainable Competitive Advantage is a way of operating that is difficult to imitate • Organizations use corporate, business and functional strategies ✓ Corporate strategy provides direction and guides resource allocations as a whole ✓ Business strategy provides direction and guides resource allocations for an individual unit or division within a larger enterprise ✓ Functional strategy guides activities to implement strategies at a detail or specific operations level ➢ Such as Marketing, Finance, Manufacturing, Marketing, and Human Resources • Growth strategies focus on expansion ✓ Growth strategies are those designed to increase the size of current operations ➢ Concentration strategies focus on an existing business area ➢ Diversification strategies focus on entering new business areas o Related – similar or complementary business areas o Unrelated – entirely new business areas o Vertical integration - acquire suppliers (backward) or customers (forward) • Role Models: Wendy KoppTackles the Culture of Low Achievement In an undergraduate thesis at Princeton University, Wendy Kopp, founder of Teach for America, proposed the creation of her nonprofit. Her strategy included “eliminating education inequities,” by providing excellent education for kids in low-income communities. Her goal: to help children growing up in poverty beat the culture of low achievement. In “What’s the Lesson Here,” students can discuss Kopp’s vision for social change and the lessons for organizations on the link between vision and strategy. Lastly, the question of how a leader of a business can gain high levels of employee commitment to a strategy. • Restructuring and divestiture strategies focus on consolidation ✓ A retrenchment strategy seeks to correct weaknesses by making radical changes to current ways of operating ➢ Liquidation – when a business closes and sells is assets to pay creditors ✓ A restructuring strategy seeks to correct weaknesses by reducing the scale or mix of operations ➢ Chapter 11 bankruptcy - protects an organization from creditors as it re- organizes in an attempt to restore solvency. ✓ Downsizing seeks to decrease the size of operations ✓ Divestiture sells off parts of the organization to refocus attention on core business areas • Explore Yourself: Critical Thinking Critical thinking is a “must-have” for success in strategic management. It enables you to perceive problems, hone in on their more essential aspects, gather and interpret useful information, and make good decisions in complex conditions. Unfortunately, critical thinking can become blurred without the luxury of full information for analysis, common in today’s work environment with its many uncertainties.
  • 9. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-5 Encourage students to take the self-assessment on “Handling Facts and Interferences” in the Skill Building Portfolio. Consider asking students about whether they are able to distinguish “facts” from “interferences” when answering questions. • Global strategies focus on international business initiatives ✓ Globalization strategy adopts standardized products and advertising for worldwide use ➢ Gillette razors ✓ Multidomestic strategy customizes products and advertising to meet local cultural needs ➢ Proctor & Gamble consumer products ✓ Transnational strategy seeks efficiencies of global operations with attention to local markets ➢ Ford, Sony • Ethics Check: Life and Death at an Outsourcing Factory ➢ The sight of netting outside the dormitories of Foxconn factories is sobering when you learn that it was installed to prevent suicides of workers who lose hope and jump off the dormitory roof. What responsibility do employers have to make sure workers not only have safe working conditions, but work that has meaning with a sense of accomplishment and hope of a better future? What responsibility do U.S companies such as Apple, Dell and HP have to make sure Foxconn remedies conditions that lead workers to suicide? How about us as consumers? Do we have a responsibility? Would you alter your consumption habits? • Cooperation Strategies focus on alliances and partnerships ✓ Strategic alliances - two or more organizations create a partnership to pursue an area of mutual interest or strengthen competitive advantage. ➢ Airlines often create strategic alliances with foreign airlines to facilitate easier foreign travel ticketing for travelers and create a competitive advantage for the airlines. ➢ Supplier alliances - suppliers have preferred relationships with others in the supply chain to facilitate smooth flow of supplies. ➢ Distribution alliances - firms cooperate for product/service sales and distribution. ✓ Co-opetition - competitors share information or technology with the intent of creating a larger market for both ✓ IBM and Red Hat cooperate on some aspects of Linux development • E-business strategies focus on using the internet to gain competitive advantage ➢ B2B – business to business; uses web portals and IT to link organizations vertically in supply chains ✓ B2C – business to customers; uses web portals and IT to link organizations with customers ✓ Social media strategy -social media is used to engage customers and other external groups ✓ Crowdsourcing - social media strategy that becomes an interactive idea exchange with customers. Table 7.1 summarizes the types of web-based business models
  • 10. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-6 ✓ Advertising model ✓ Brokerage model ✓ Community model ✓ Freemium model ✓ Infomediary model ✓ Merchant model ✓ Referral model ✓ Subscription model • Manager’s Library: Rebooting Work: Transform How You Work in the Age of Entrepreneurship by Maynard Webb The book is a practical guide to navigating the new era of what many call the “entrepreneurial workplace.” Described is the decline of age-old face- to-face workplace mentoring relationships between senior managers and their juniors. Reasons include technology, shorter, more temporary work contracts, flatter organizations resulting in fewer middle-level managers. Although mentoring has gone by the wayside, the author’s message is to find and access mentors on your own. The “Reflect and React: questions ask: Does the notion of entrepreneurial workplace seem to describe the career settings ahead for you? How about the mentoring strategy? If you don’t have a mentor, and your employer isn’t helpful in finding you one, how can you get yourself one? Can mentoring work as well online as face-to-face? 7.1 Questions for discussion Suggested Answers 1) With things changing so fast today, is it really possible for a business to achieve “sustainable” competitive advantage? It is much more difficult to sustain an advantage today, with the speed of change and technology. However, companies can create a sustainable culture than allows a sustainable advantage through ongoing commitments to innovation and continuous improvement. Examples are Apple, 3M, Proctor and Gamble, Toyota, and many other companies. 2) Why is growth such a popular business strategy? Growth is popular because so many owners and investors desire growth in their returns on capital. Additionally, American culture in particular is growth-oriented compared to other cultures. 3) Is it good news or bad news for investors when a business announces that it is restructuring? Usually restructuring plans are treated as “good news” for investors. The reason for this is that such plans are usually developed when a company is experiencing financial difficulties or sales are slowing, etc. The restructuring plan sends a signal to the market and investors that management is addressing issues and has a plan in place for improving results.
  • 11. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-7 Takeaway 7.2 How Do Managers Formulate and Implement Strategies? • The strategic management process formulates and implements strategies ✓ Strategic management is the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage ✓ Strategy formulation is the process of creating strategies ✓ Strategy implementation is the process of putting strategies into action • See Figure 7.1 for a description of the steps in the management process ✓ Review current situation ✓ Analyze organization and external environment ✓ Develop new strategies ✓ Implement strategies ✓ Evaluate results • Strategy formulation begins with the organization's mission and objectives ✓ Mission is the organization’s reason for existence or purpose ✓ Operating objectives are specific short-term results that organizations try to achieve • SWOT analysis examines strengths, weaknesses, opportunities, and threats ✓ SWOT analysis is a tool used in strategic planning to determine the current status of the organization ➢ Internal assessment of the organizational strengths and weaknesses ➢ External assessment of environmental opportunities and threats ✓ See Figure 7.2 for a depiction of SWOT analysis ➢ Internal Assessment of the Organization includes its: strengths and weaknesses ➢ External assessment of the organization includes its: weaknesses, opportunities, and threats ✓ Core competency is a special strength that gives and organization a competitive advantage DISCUSSION TOPIC To prompt a lively discussion, engage the students in a SWOT analysis of your college or university. They will typically have a lot of opinions ⎯ some quite insightful ⎯ about the strengths and weakness of the institution. They are likely to be less well informed about the opportunities and threats that exist in your institution’s external environment. This activity provides students with a real-life application of SWOT analysis that will help them to better understand how to use this analytical tool. • Tips to Remember : Key Operating Objectives of Organizations • Profits • Cost efficiency • Market share • Product quality
  • 12. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-8 • Talented workforce • Innovation • Social responsibility • Sustainability • Porter’s five forces model examines industry attractiveness ✓ Figure 7.3 illustrates the five forces model which include competitors, new entrants, suppliers, customers and substitutes ➢ Bargaining power of suppliers ➢ Bargaining power of customers ➢ Threat of new entrants to industry ➢ Threat of substitute products ✓ Unattractive industry – intense rivalry, easy entry, substitute products, powerful suppliers and customers ✓ Attractive industry – low rivalry, barriers to entry, few or no substitute products, weak supplier and customer power • Porter’s competitive strategies model examines business or product strategies ✓ A differentiation strategy seeks competitive advantage seeks competitive advantage through uniqueness ✓ A cost leadership strategy seeks competitive advantage through operating with lower costs than competitors ✓ A focused differentiation strategy seeks competitive advantage through concentration on one special market segment and offering a unique product to that segment’s customers ✓ A focused cost leadership strategy seeks competitive advantage through concentration on one special market segment and being the low cost provider to that market segment’s customers ✓ See Figure 7.4 for a depiction of competitive strategies model in the soft drink industry ✓ What is the market scope – broad or narrow? ✓ What is the expected source of competitive advantage – lower price or product uniqueness? ✓ The four combinations of answers result in: ➢ Differentiation ➢ Cost leadership ➢ Focused differentiation ➢ Focused cost leadership strategies DISCUSSION TOPIC If you used the Discussion Topic regarding a SWOT analysis of your college or university, you can continue with that scenario in this Discussion Topic. Have the students discuss which of Porter’s generic strategies that your college or university uses. Make sure that the students fully explain their reasoning. • Portfolio planning examines strategies across multiple businesses or products ✓ Useful for companies that operates a variety of businesses
  • 13. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-9 ✓ BCG matrix analysis is a planning tool for such companies ✓ See Figure 7.5 for a depiction of the BCG matrix approach ➢ Stars - high market share in high growth markets ➢ Cash cows - high market share in low growth markets ➢ Question marks - low market share in high growth markets ➢ Dogs - low market share in low growth markets • Find Inspiration: Climbing High with Patagonia, Inc. ✓ Patagonia is a strategic success story anchored to its mission of: “building the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Patagonia is one of the first companies to file papers to become a benefit corporation, which means that its policies will always “create a material positive impact on society and the environment.” • Strategic leadership ensures strategy implementation and control ✓ Requires good organization structures and cultures, and the right staffing ✓ Strategic leadership - the capability to inspire people to successfully engage in a process of continuous change, performance enhancement, and implementation of organizational strategies ✓ Strategic control - responsibility of top managers to keep in touch with strategy, how well it is being implemented and if it needs to be changed to be more effective in accomplishing the mission ✓ A strategic leader has to: ➢ Be a guardian of trade-offs ➢ Create a sense of urgency ➢ Make sure that everyone understands the strategy ➢ Be a teacher ➢ Be a great communicator DISCUSSION TOPIC Ask students to pick an industry and find examples of companies that seem to be using strategic control as opposed to those who are not. Discuss these in light of the corporate bailouts being sought by corporations vs. those who are not. ✓ Facts to Consider: Disposable Workers Are Indispensible to Business Profits ➢ Northwestern University economist, Robert Gordon, proclaims that we are now in the era of disposable workers. Businesses seem enamored with the idea of hiring less full-timers and more part-time or temporary workers that can be added and let go according to demand, or on a “pay-as-needed approach.” The “Your Thoughts” section poses questions about whether the switch to more disposable workers is a good long-term strategy for businesses and other organizations and the downsides to remaining employees. Discuss with students how this trend may impact them and whether it is something they have factored into their career plan. ✓ Strategic Leadership Responsibilities: ➢ A strategic leader has to be the guardian of trade-offs ➢ A strategic leader needs to create a sense of urgency ➢ A strategic leader must make sure that everyone understands the strategy ➢ A strategic leader must be a teacher
  • 14. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-10 7.2 Questions for discussion Suggested Answers 1) Can an organization have a good strategy but a poor sense of mission? Yes, a strategy answers the question “how” we will succeed; the mission says “what” the purpose of the organization is. If a company has a poorly written mission statement that allows for a “jack of all trades” business definition, the company may attempt to become a conglomerate and fail, or perform with mediocrity, even though the strategies in each separate business/ market may be sound. On the other hand, a company may see its mission as very narrowly defined and miss out on opportunities for growth or adaptation. 2) Would a monopoly receive a perfect score for industry attractiveness in Porter’s five forces model? Monopolies would be very close and may receive a perfect score. The only area where this may be less than perfect is the power of suppliers. Even a monopoly must rely on suppliers. Unless the monopoly happens to also be the sole customer for the supplier’s products (unlikely for most resources), then that aspect would make the “score” less than perfect. 3) Does the BCG Matrix oversimplify a complex strategic management problem? Yes, the BCG matrix oversimplifies strategic positions and strategic planning. It offers a “formula” approach and may lead to abandoning a business that may yield very high returns if management attention is focused on the business in question. Very few companies use the BCG matrix; it was popular in the 1970’s when conglomerates were in vogue. Teaching Notes In this section, ideas, exercises, and assignments are provided to assist you in integrating the concepts in Exploring Management for your students, especially the special features of the text. Management Live: Critical Thinking and Tron: Legacy Tron: Legacy creates a virtual world within a video game with few instructions. You don't have to wander very far off that premise to draw a strong parallel between a lawless cyberworld and the global environment managers operate in today. Managers need strong strategic skills to compete in a confusing global economy with the goal of survival. Critical thinking is mentioned as the most important skill, allowing us to accumulate relevant information, prioritize goals, and develop strategies for success. Students can gain critical thinking skills through case studies provided in the book, but only if they go beyond finding the right vocabulary. They need to thoroughly apply the concepts and develop a winning strategy. Facts to Consider: Disposable Workers Are Becoming Indispensible to Business Profits Northwestern University economist, Robert Gordon, proclaims that we are now in the era of disposable workers. Businesses seem enamored with the idea of hiring less full-timers and
  • 15. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-11 more part-time or temporary workers that can be added and let go according to demand, or on a “pay-as-needed approach.” The “Your Thoughts” section poses questions about whether the switch to more disposable workers is a good long-term strategy for businesses and other organizations and the downsides to remaining employees. Discuss with students how this trend may impact them and whether it is something they have factored into their career plan. Role Models: Wendy Kopp Tackles the Culture of Low Achievement In an undergraduate thesis at Princeton University, Wendy Kopp, founder of Teach for America, proposed the creation of her nonprofit. Her strategy included “eliminating education inequities,” by providing excellent education for kids in low-income communities. Her goal: to help children growing up in poverty beat the culture of low achievement. In “What’s the Lesson Here,” students can discuss Kopp’s vision for social change and the lessons for organizations on the link between vision and strategy. Lastly, the question of how a leader of a business can gain high levels of employee commitment to a strategy. Find Inspiration: Climbing High with Patagonia Patagonia is a strategic success story anchored to its mission of: “building the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Patagonia is one of the first companies to file papers to become a benefit corporation, which means that its policies will always “create a material positive impact on society and the environment.” Manager's Library: Rebooting Work: Transform How You Work in the Age of Entrepreneurship by Maynard Webb The book is a practical guide to navigating the new era of what many call the “entrepreneurial workplace.” Described is the decline of age-old face-to-face workplace mentoring relationships between senior managers and their juniors. Reasons include technology, shorter, more temporary work contracts, flatter organizations resulting in fewer middle-level managers. Although mentoring has gone by the wayside, the author’s message is to find and access mentors on your own. The “Reflect and React: questions ask: Does the notion of entrepreneurial workplace seem to describe the career settings ahead for you? How about the mentoring strategy? If you don’t have a mentor, and your employer isn’t helpful in finding you Ethics Check: Life and Death at an Outsourcing Factory The sight of netting outside the dormitories of Foxconn factories is sobering when you learn that it was installed to prevent suicides of workers who lose hope and jump off the dormitory roof. What responsibility do employers have to make sure workers not only have safe working conditions, but work that has meaning with a sense of accomplishment and hope of a better future? What responsibility do U.S companies such as Apple, Dell and HP have to make sure Foxconn remedies conditions that lead workers to suicide? How about us as consumers? Do we have a responsibility? Would you alter your consumption habits?
  • 16. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-12 one, how can you get yourself one? Can mentoring work as well online as face-to-face? Explore Yourself: Critical Thinking Critical thinking is a “must-have” for success in strategic management. It enables you to perceive problems, hone in on their more essential aspects, gather and interpret useful information, and make good decisions in complex conditions. Unfortunately, critical thinking can become blurred without the luxury of full information for analysis, common in today’s work environment with its many uncertainties. The assessment for this Chapter is entitled “Facts and inferences”. The assessment tool is intended to help students assess their ability to distinguish facts from inferences, an important trait for a manager participating in the planning process. For extended learning, students may discuss how perception of facts and inferences influence strategic management. For example, what role does personal perception of facts influence the establishment of mission or a SWOT analysis? Hot Topic: Pro and Con Debate: How about a “double Irish” with a “Dutch sandwich”? No, it’s not a drink and a sandwich we’re talking about. It’s a global business strategy used to reduce corporate income taxes in America. Ireland offers corporations that put offices and plants there a 12.5% corporate tax rate. That compares with the standards 40% rate due at home. If you set up two Irish companies and arrange to funnel foreign earnings through them – the double Irish move – you pay the lesser tax bill. When it comes to managing a global business, it requires crucial knowledge of tax laws, which vary widely from country to country. Ask students if they would be able to execute a double Irish with a Dutch sandwich. Career Situation: What Would You Do? A neighborhood business association has this set of members: coffee shop, bookstore, drugstore, dress shop, hardware store, and bicycle shop. The owners of these businesses are interested in how they might “cooperate” for better success. As a business consultant to the association, what would you propose as possible strategic alliances that would join sets of these businesses together for mutual gain? For some years now, you’ve owned a small specialty bookshop in a college town. You sell some textbooks but mainly cater to a broader customer base. The store always stocks the latest fiction, nonfiction, and children’s books. Recent numbers show a steep decline in sales, including books that would normally be considered best sellers. You suspect this is because of the growing popularity of e-books and e-readers such as the Amazon Kindle and Barnes & Noble Nook. Some of your friends say it’s time to close up because your market is dying. Is it hopeless or is there a business strategy that might save you? Skill Building Portfolio Terms to Define:
  • 17. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-13 B2B business strategy B2C business strategy BCG Matrix Business strategy Chapter 11 bankruptcy Competitive advantage Concentration Co-opetition Core competencies Corporate strategy Cost leadership strategy Crowdsourcing Differentiation strategy Diversification Divestiture Downsizing E-business strategy Focused cost leadership strategy Focused differentiation strategy Functional strategy Globalization strategy Growth strategy Liquidation Mission Operating objectives Restructuring Retrenchment strategy Social media strategy Strategic alliance Strategic control Strategic intent Strategic leadership Strategic management Strategy Strategy formulation Strategy implementation Sustainable competitive advantage SWOT analysis Transnational firm Vertical integration
  • 18. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-14 TestPrep 7: Multiple-Choice Questions 1. Which is the best question to ask when starting the strategic management process? (a)“What is our mission?” (b)“How well are we currently doing?” (c)“How can we get where we want to be?” (d)“Why aren’t we doing better?” 2. The ability of a firm to consistently outperform its rivals is called ___________ (a)vertical integration (b)competitive advantage (c)strategic intent (d)core competency 3. General Electric is a complex conglomerate that owns many firms operating in very different industries. The strategies pursued for each of these units within GE would best be called __________level strategies. (a)corporate (b)business (c)functional (d)transnational 4. An organization that is downsizing by cutting staff to reduce costs can be described as pursuing a _________strategy. (a)liquidation (b)divestiture (c)retrenchment (d)stability 5. When you buy music downloads online, the firm selling them to you is engaging in which type of e-business strategy? (a)B2C (b)B2B (c)infomediary (d)crowdsourcing 6. The alliances that link together firms in supply chain management relationships are examples of how businesses try to use ____________strategies. (a)B2C (b)growth (c)cooperation (d)concentration 7. Among the global strategies that international businesses might pursue, the _________strategy most directly tries to tailor products to fit local needs and cultures in
  • 19. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-15 different countries. (a)concentration (b)globalization (c)transnational (d)multidomestic 8. If Google’s top management were to announce that the firm was going to buy Federal Express, this would indicate a growth strategy of .____________ (a)diversification (b)concentration (c)horizontal integration (d)vertical integration 9. ___________are special strengths that an organization has or does exceptionally well and that help it outperform competitors. (a)Core competencies (b)Strategies (c)Alliances (d)Operating objectives 10. A ________in the BCG Matrix would have a high market share in a low-growth market. (a)dog (b)cash cow (c)question mark (d)star 11. In Porter’s five forces model, which of the following conditions is most favorable from the standpoint of industry attractiveness? (a)many competitive rivals (b)many substitute products (c)low bargaining power of suppliers (d)few barriers to entry 12. The two questions asked by Porter to identify the correct competitive strategy for a business or product line are: 1—What is the market scope? 2—What is the __________ ? (a)market share (b)source of competitive advantage (c)core competency (d)industry attractiveness 13. When Coke and Pepsi spend millions on ads trying to convince customers that their products are unique, they are pursuing a ______________strategy. (a)transnational
  • 20. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-16 (b)concentration (c)diversification (d)differentiation 14. A firm that wants to compete with rivals by selling a very-low priced product in a broad market would need to successfully implement a ________________ strategy. (a) retrenchment (b) differentiation (c) cost leadership (d) diversification 15. In addition to focusing on strategy implementation and strategic control, the responsibility for strategic leadership of an organization involves success with _________________. (a)motivating a disposable workforce (b)the process of continuous change (c)Chapter 11 bankruptcy (d)growth by liquidation Short-Response Questions: 16. What is the difference between corporate strategy and functional strategy? A corporate strategy sets long-term direction for an enterprise as a whole. Functional strategies set directions so that business functions such as marketing and manufacturing support the overall corporate strategy. A corporate strategy sets long-term direction for an enterprise as a whole. Functional strategies set directions so that business functions such as marketing and manufacturing support the overall corporate strategy. 17. Why is a cost leadership strategy so important when one wants to sell products at lower prices than competitors? If you want to sell at lower prices than competitors and still make a profit, you have to have lower operating costs (profit 3 revenues 5 costs). Also, you have to be able to operate at lower costs in ways that are hard for your competitors to copy. This is the point of a cost leadership strategy—always seeking ways to lower costs and operate with greater efficiency than anyone else. 18. What strategy should be pursued for a “question mark” in the BCG Matrix, and why? A question mark in the BCG matrix has a low market share in a high growth industry. This means that there is a lot of upside potential, but for now it is uncertain whether or not you will be able to capitalize on it. Thus, hard thinking is required. If you are confident, the recommended strategy is growth; if you aren’t, it would be retrenchment, to allow resources to be deployed into more promising opportunities.
  • 21. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-17 19. What is strategic leadership? Strategic leadership is the ability to enthuse people to participate in continuous change, performance enhancement, and the implementation of organizational strategies. The special qualities of the successful strategic leader include the ability to make tradeoffs, create a sense of urgency, communicate the strategy, and engage others in continuous learning about the strategy and its performance responsibilities. Integration and Application Questions: Integration and Application Question 20. Kim Harris owns and operates a small retail store, selling the outdoor clothing of an American manufacturer to a predominantly college-student market. Lately, a large department store outside of town has started selling similar but lower-priced clothing manufactured in China, Thailand, and Bangladesh. Kim is starting to lose business to this store. She has asked your instructor to have a student team analyze the situation and propose some strategic alternatives to best deal with this threat. You are on the team. Questions: Why would a SWOT analysis be helpful in addressing Kim’s strategic management problem? How could Porter’s competitive strategies model be helpful as well? A SWOT analysis is useful during strategic planning. It involves the analysis of organizational strengths and weaknesses, and of environmental opportunities and threats. Such a SWOT analysis in this case would help frame Kim’s thinking about the current and future positioning of her store, particularly in respect to possible core competencies and competitive opportunities and threats. Then she can use Porter’s competitive strategy model for further strategic refinements. This involves the possible use of three alternative strategies: differentiation, cost leadership, and focus. In this situation, the larger department store seems better positioned to follow the cost leadership strategy. This means that Kim may want to consider the other two alternatives. A differentiation strategy would involve trying to distinguish Kim’s products from those of the larger store. This might involve a “made in America” theme or an emphasis on leather or canvas or some other type of clothing material. A focus strategy might specifically target college students and try to respond to their tastes and needs rather than those of the larger community population. This might involve special orders and other types of individualized service for the college student market. Self-Assessment 7: Handling Facts and Inferences Instructions 1. Read the following report. A well-liked college instructor had just completed making up the final examination and had turned off the lights in the office. Just then a tall, broad figure with dark glasses appeared and demanded the examination. The professor opened the drawer. Everything in the drawer was picked up, and the individual ran down the corridor. The
  • 22. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-18 president was notified immediately. 2. Indicate whether you think the following observations are true (T), false (F), or doubtful in that it may be either true or false (?). Judge each observation in order. Do not reread the observations after you have indicated your judgment, and do not change any of your answers. 1. The thief was tall, broad, and wore dark glasses. 2. The professor turned off the lights. 3. A tall figure demanded the examination. 4. The examination was picked up by someone. 5. The examination was picked up by the professor. 6. A tall, broad figure appeared after the professor turned off the lights in the office. 7. The man who opened the drawer was the professor. 8. The professor ran down the corridor. 9. The drawer was never actually opened. 10. Three persons are referred to in this report. Scoring The correct answers in reverse order (starting with 10) are: ?, F, ?, ?, T, ?, ?, T, T, ?. Interpretation To begin, ask yourself if there was a difference between your answers and the correct ones. If so, why? Why do you think people, individually or in groups, may answer these questions incorrectly? Good planning depends on good decision making by the people doing the planning. Being able to distinguish “facts” and understand one’s “inferences” are important steps toward improving the planning process. Involving others to help do the same can frequently assist in this process. Class Exercise 7: Strategic Scenarios Preparation In today’s turbulent economic climate, it is no longer safe to assume that an organization that was highly successful yesterday will continue to be so tomorrow—or that it will even be in existence. Changing times exact the best from strategic planners. Think about the situations currently facing the following well-known organizations. Think, too, about the futures they may face. McDonald’s Ford Sony Apple Computer Nordstrom United Airlines Yahoo! National Public Radio AT&T Ann Taylor The New York Times Federal Express Instructions Form into groups as assigned by your instructor. Choose one or more organizations from the prior list (or as assigned) and answer the following questions for the organization: 1. What in the future might seriously threaten the success, perhaps the very existence, of this organization? As a group, develop at least three such future scenarios.
  • 23. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-19 2. Estimate the probability (0 to 100%) of each future scenario occurring. 3. Develop a strategy for each scenario that will enable the organization to successfully deal with it. 4. Thoroughly discuss these questions within the group and arrive at your best possible consensus answers. Be prepared to share and defend your answers in general class discussion. Team Project 7: Contrasting Strategies Starbucks is the dominant name among coffee kiosks—how does Dunkin Donuts compete? Google has become the world’s search engine of choice—can Bing ever catch up? Does it make a difference to you whether you shop for books at Amazon or Barnes & Noble, or buy gasoline from BP, Shell, or the local convenience store? Question How do organizations in the same industry fare when they pursue somewhat or very different strategies? Instructions 1. Look up recent news reports and analyst summaries for each of the following organizations: Coach and Kate Spade . . . Southwest Airlines and Delta Airlines . . . New York Times and USA Today . . . UnderArmour and Lululemon . . . National Public Radio and Sirius Satellite Radio. . . Coca-Cola and PepsiCo 2. Use this information to write a short description of the strategies that each seems to be following in the quest for performance success. 3. Compare the strategies for each organizational pair, with the goal of identifying whether or not one organization has a strategic advantage in the industry. 4. Try to identify other pairs of organizations and do similar strategic comparisons for them. 5. Prepare a summary report highlighting (a) the strategy comparisons and (b) those organizations whose strategies seem best positioned for competitive advantage. Cases for Critical Thinking Dunkin Donuts – Growth Feeds a Sweet Tooth Sidebar: Jamba Juice Blends for Fruitful Growth Long before Starbucks was even a glimmer in anyone’s entrepreneurial mind, Dunkin’ Donuts was a well-known chain of coffee shops in the Northeast. Today, Dunkin’ Donuts is a global player quickly expanding its food and coffee menus to ride the wave of fresh trends appealing to a generation of more health-conscious customers. It’s a highly competitive industry and change is constantly on its menu. With Starbucks rethinking its positioning strategy and McDonald’s offering a great tasting coffee at a reasonable price, Dunkin’ Donuts is hoping that careful strategic planning will keep its customers “Runnin on Dunkin.” Case discussion questions and suggested answers:
  • 24. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-20 1. DISCUSSION What does a Porter’s Five Forces analysis reveal about the industry in which Dunkin’ Donuts and Starbucks compete? What are the strategic implications for Dunkin’ Donuts? Porter's Five Forces model analyzes factors that influence a specific industry to help managers understand its competitive factors. An analysis of the factors would seem to indicate that the industry is very competitive and competitive advantages can be very quickly copied. The Five Factors as they apply to Dunkin’ Donuts and Starbucks might include: • New entrants - Dunkin’ and Starbucks sell breakfast beverages and pastries in an effort to expand its breakfast menu. Competition includes expansion by similar regional companies like Caribou Coffee and McDonald’s whose offerings include premium coffee. • Customers - the bargaining power of buyers is very influential to the industry. The current recession has resulted in the closing of hundreds of Starbucks locations, while relatively few of the franchised Dunkin’ Donuts have closed. • Substitute products - the large number of substitute beverages and breakfast alternatives makes this a huge factor in the industry. • Suppliers - occasionally the supply of coffee beans is limited, driving up the cost of the beverage. • Industry competition - Starbucks and other regional coffee shops; convenience stores like 7-Eleven and Circle K; fast food restaurants like McDonald’s and Burger King. 2. DISCUSSION: Discuss the pros and cons of Jamba Juice’s expansion strategy and how it compares to that of Dunkin’ Donuts. What similarities are there between the two companies in terms of their growth strategies? Discuss. Pros of Jamba’s expansion strategy: • The company has expanded beyond just a maker of smoothies to a active/healthy lifestyle brand. • It has refocused on franchising, consumer packaged goods (CPG), and Jamba GO stations at various venues, to facilitate further expansion. • Expanded menu items: Its product variety includes whole fruit smoothies, squeezed juices, hot oatmeal, breakfast wraps, bistro sandwiches, mini-wraps, California Flatbreads, frozen yogurt, and various baked goods and snacks. The company has also expanded its menu to include vegan and vegetarian options. • Jamba’s presence in various venues: JambaGo Express is a smoothie concept created to facilitate the company’s brand presence into venues where healthier, quick serve options are part of the menu offering. This includes K-12 schools, universities, college campuses, convenience stores and delis. • Franchise business model (an asset light business model) was a clever way to raise cash. It was far less capital intensive. It also improved the company’s balance sheet.
  • 25. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-21 Although the revenue from franchising is far lower, it represents pure profit. Jamba has executed a remarkable transformation from many ailing company-owned stores to a successful franchise business model. • Jamba has licensed its Jamba brand name to sell consumer packaged goods (CPG) online and through retail channels such as grocery, mass, club, and convenience stores. • Expansion of product offering with Talbott’s Teas • Tennis pro Venus Williams is currently a company spokesperson (and franchisor) – she advocates for active and healthy lifestyles. Cons of Jamba’s expansion strategy: • Jamba’s profitability is still volatile. • In 2012, the company marked its first year of profitability after going public in 2006. • Despite its comeback, there are still far more cash-rich formidable competitors. • The consumer packaged goods industry is intensely competitive. • Threats from cash-flushed competitors like McDonald’s, Wendy’s or YUM have targeted the smoothie industry and can easily take sales away. • As the company continues to sell more food items, it becomes more susceptible to swings in commodity prices. How Jamba’s expansion strategy compares to that of Dunkin’ Donuts: • The use of other people’s money (franchisors) to expand and grow means less of a capital investment, expanded menu items, retail presence. 3. PROBLEM SOLVING: Gather information to build an up-to-date SWOT analysis for Dunkin’ Donuts. If you were the CEO of the firm, what would you consider to be the strategic management implications of this SWOT analysis, and why? Strengths Weaknesses Opportunities Threats Brand Recognition Conflict with franchise owners Low calorie menu items Competition from others Customer Loyalty DD is nowhere near the level of penetration in developing countries as compared to others Healthier choices on menu Healthier lifestyles and eating patterns (avoidance of high calorie/sugary foods) Large variety of flavors of donuts and baked items Low barrier to entry for competitors Online marketing to increase customer basis Increased awareness of healthy food choices Known for its coffee Perception of nonexistent healthy choices Social media to increase customer base Childhood diseases on the rise (diabetes and obesity) Number of locations Expansion outside the United States (emerging markets) Competition from local pastry and coffee shops Loyalty program Product expansion Competition from McDonald’s and Starbucks (coffee and donuts) Years of Coffee consumption on Price of coffee beans
  • 26. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-22 experience/longevity the rise in Asia, along with income levels Major sports team association (Red Sox) Recessionary spending on “comfort foods” and less expensive snacks compared to other store- bought items Awareness of Fair Trade policies for coffee bean purchases. Advertising and marketing programs and strategies Growth through franchising Increased raw material costs and coffee costs Reputation for high quality, superior grade of coffee Continued store growth Largest seller of coffee by the cup The strategic management implications of this SWOT analysis Review current situation would include developing and implementing new strategies and evaluate results. 4. FURTHER RESEARCH Research the latest moves by Starbucks and other Dunkin’ Donuts’ competitors. What is each doing that seems similar to and different from the approach of the other? Can you say that Dunkin’ is on the right track? Is it carving out new market share? Or, is it going to be more of a copycat player in the industry? Latest news for: Starbucks: • Starbucks recently introduced several new sandwiches and salads on its menu to increase sales in the U.S. in the slower afternoon and evening hours. • With McDonald’s and Burger King offering specialty coffees, one way for Starbucks to increase its revenue is by offering food items. • Starbucks announced that it will include calorie information on menu boards at all company-operated and licensed U.S. Starbucks. • Opened first store in New Delhi, India and entered Vietnamese market. • Expansion of company’s loyalty and rewards program • Industry-first innovation that will enable customers to earn rewards for grocery channel purchases that can be redeemed in Stabucks retail stores. • Expansion of mobile payment platform • Launch of new nonprofit corporation with a $1 million seed grant to introduce job skills, leadership and apprenticeship programs to young people across the company’s • Expansion of mobile payments platform, which is generating over three million U.S. mobile payments per week. • Schultz’s recognition of Starbucks 15-year business partnership with Mohammed Alshaya, Executive Chairman, M.H. Alshaya Co., including comments about how bringing specialty coffee to the Middle East serves as a model for the company’s future expansion initiatives.
  • 27. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-23 Dunkin’ Donuts: In summary, Dunkin’ Donuts is expanding its menu to include a few new “better-for-you” breakfast items and a few new “all-day menu items.” Also new is a frozen version of hot chocolate. In addition, the company is interested in expanding into non-traditional venues such as schools and universities. Its DDSmart menu has healthy items for those interested in a healthier lifestyle. The company recently shifted to eggs from cage-free hens in an effort to eliminate gestation crates from its supply chain. • The introduction of two new chicken sandwiches (barbeque chicken and bacon-ranch chicken) on its menu is a step in the brand’s commitment to all-day menu items. is a significant step in the brand’s commitment to all-day menu items. • Dunkin’ Donuts recently unveiled the Hot Chocolate Coolatta®, the newest addition to its lineup of Coolatta frozen beverages. • Adds turkey sausage breakfast sandwich to its item to permanent menu • Chicken salad and tuna salad wraps are added to Dunkin’ Donuts menu • New angus steak and egg sandwich and wake-up wrap added to menu • Dunkin’ Donuts is interested in expanding into non-traditional venues including colleges and universities, casinos, military bases, supermarkets, airports and travel centers. • The company uses Social Media (Twitter Sweepstakes and Instagram) to introduce new products and promotions. They also have an app that provides coupons to loyal customers. • DDSmart with better-for-you breakfast option menu is for healthy items such as oatmeal. • Dunkin' Donuts Announces Shift to Eggs from Cage-Free Hens and Commitment to Eliminate Gestation Crates from its Supply Chain. What is similar? • Focus on new and all-day menu items • Healthy menu choices (calorie counts on Starbucks menus) • Commitment to social responsibility and sustainable business practices What is different? Starbucks is a more hip and trendy place to get a cup of coffee, while Dunkin’ Donuts fancies itself as a welcome place for any ordinary-Joe or Josephine. Dunkin’ Donuts is a place to grab a reasonably priced quick or to go reasonably price cup or coffee while Starbucks is a more expensive product with a higher quality reputation. In other words, Dunkin’ is more the layman’s coffee and the feel of a fast food restaurant, while Starbucks, with its comfortable atmosphere and seating, appeals to a higher socioeconomic demographic. Is Dunkin’ on the right track? Is it carving out new market share? Yes, from some of its recent news items noted above, it appears to be targeting, in addition to its morning coffee and donut eaters, those interested in healthy food choices along and all-day menu items.
  • 28. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-24 Will it be a copycat player? It depends. Dunkin’ Donuts has carved out a different target customer than Starbucks -- one more focused on convenience and price. Suggested Team Exercise for Chapter 7 Break the class into pairs or small (no more than four students) teams. Assign each team an industry (pick industries that students can relate to such as chocolate candy; automobiles; clothing; shoes; fast food; beer; cell phones; computers, etc.) Have each pair or team identify (and explain if needed): The company or product using a cost leadership strategy (example Chery from China) The company or product using a differentiation strategy (example Scion) The company or product using a focused cost leadership strategy (example Focus) The company or product using a focused differentiation strategy (example Porsche)
  • 29. Exploring the Variety of Random Documents with Different Content
  • 30. Reserve. The country was quite open with no cover at all, and consisted of grass and stubble fields. The gently undulating ground was particularly favourable to the Germans, who were past-masters in the art of fighting rear-guard actions. At 5 A.M. the advance began. The first bound was to the railway east of the village of Quiévy, but no halt was made here, as it was found that the advanced troops of the 1st Guards Brigade had pushed farther on during the night. When the leading patrols reached the high ground immediately east of Quiévy, they were met by heavy machine-gun fire from the orchard north of Fontaine-au-terre Farm, and were enfiladed by numerous machine-guns along the St. Vaast—Solesmes road. The leading companies deployed here. The King's and No. 2 Companies, covered by their own fire, continued to advance by rushes, and captured the orchard, from which the Germans hastily retired. Captain Simpson halted No. 3 Company on the high ground west of the farm, while south of the farm touch was gained with the 2nd Battalion Auckland Regiment from the New Zealand Division. The machine-gun fire from the left flank, where the Scots Guards were checked, continued to be very severe, and completely held up No. 2 Company. Captain Spence decided to push forward with the King's Company to try and outflank the enemy's posts, and sent forward one platoon down the slope. Although this had the desired effect, and the German infantry retired, they left their machine-guns, which kept up a sweeping fire along the crest, and prevented the Scots Guards from advancing. It was thought that, if a demonstration was made straight towards them, it might perhaps force them to retire, but when No. 2 Company attempted this the German machine-guns never moved. Meanwhile the King's Company, with that dogged determination which has characterised all its movements during the war, drove away the Germans from the spur of the hill south of Solesmes, and working round in the area occupied by the New Zealand Division, pushed forward, and gained the spur itself. The ground over which the King's Company passed, consisted of a deep and broad valley quite devoid of cover, and the slightest movement could be observed from the opposite slope, where German field-guns and machine-guns were posted. The
  • 31. Oct. 12. manner in which Captain Spence directed his company and surmounted all the difficulties, was specially mentioned by Lieut.- Colonel Bailey, and this advance undoubtedly made a considerable difference to the centre of the Guards Division. But the forward position, which the King's Company had gained, was by no means easy to retain, for the men were subjected to a heavy machine-gun fire from the north, whilst the enemy's 5·9 guns registered on them. These men remained unable to move a muscle until dark, when they dug themselves in. No. 3 Company was moved up to an orchard in close support, and, as there seemed no reasonable prospect of success during daylight without heavy loss, it was not pushed up into the attack. The German machine-guns were wonderfully well placed, commanding the flat plateaus on the top of the ridges, with no possibility of their being approached under cover, and our artillery was unable to help, as it was practically impossible to locate these machine-gun nests. The men were anxious to push on, and had to be restrained. All this time the shelling was heavy but promiscuous, and several men were hit by fragments. Captain Simpson, Second Lieutenant Clarke, and Second Lieutenant Osborne were wounded in this way, but the Battalion was really very fortunate in not having suffered more than it did. Although patrols were sent out during the night, they were unable to get very far on account of the enemy's machine-guns, which had evidently been pushed forward to hinder reconnaissance. The next morning it was found that the Germans had retired, and that the machine-guns had all been withdrawn, the emplacements being full of empty cartridge cases. Except for some shelling the morning proved uneventful, and in the afternoon the 2nd Battalion Scots Guards and 1st Battalion Welsh Guards were ordered to attack on the left. Two platoons from No. 2 Company of the 1st Battalion were ordered to co-operate with them and guard their right flank. The advance was successfully carried out with little opposition, although the German artillery put down a heavy barrage on the west line. The company runners in this fight behaved with great gallantry, and throughout
  • 32. the day carried their lives in their hands, continually running great risks. Posts were ordered to be pushed down to the railway, and small reconnoitring patrols were sent out as soon as it was dark. Except at the commencement of the operations the Battalion saw few Germans, and the men realised they were fighting a very cleverly hidden enemy. Each machine-gun nest had to be located, and shot out in turn. During that night the King's Company was relieved by No. 4, and No. 3 by No. 2. Lieutenant Challands, who took over command of No. 3 Company, was knocked out temporarily by the bursting of a shell during the relief. The Battalion was the only one in the Division to reach its objective, and this was entirely due to the dash displayed by both officers and men in this entirely new form of open warfare. The 2nd Battalion Scots Guards and 1st Battalion Welsh Guards advanced up to the same line, held by the 1st Battalion Grenadiers. The rest of the day was very trying for all troops in the forward area on account of the continual shelling, as the Germans had excellent observation, and were very accurate in their shooting. The line from Solesmes to St. Python was very strongly held, and the two posts on the right held by the Battalion were in dangerous proximity to the enemy. One of these was rushed by a party of eighty Germans under cover of an intense Minenwerfer barrage, and only one man escaped. In the evening the Battalion was relieved by the 2nd Battalion Coldstream Guards, and marched by companies to Quiévy. The casualties during the three days' operations were 3 officers wounded, and of other ranks 11 were killed, 3 died of wounds, 45 wounded and 17 missing. The next day Major Bailey received the following message from Brigadier-General C. P. Heywood, Commanding the 3rd Guards Brigade: I should like to put on record my appreciation of the good work done by you and your Battalion during the past three days. I was particularly impressed with the initiative and determined action of the King's Company in pushing forward on the afternoon of the 11th to the advanced position in D 12 central.
  • 33. On the 15th Major-General T. G. Matheson, Commanding the Guards Division, addressed the following message to Brigadier- General Heywood: I wish to congratulate the Brigadier and all ranks of the 3rd Guards Brigade on the manner in which they carried out the task assigned to them from October 11th to 14th. The advance of the 1st Batt. Grenadier Guards towards Solesmes and of the 2nd Batt. Scots Guards to St. Python were carried out with very much gallantry and produced very valuable results in securing us command of the crossings of the River Selle. The hard fighting of the 1st Batt. Welsh Guards on the left flank contributed largely to the success of the other two Battalions. I am much pleased with the performance of the Brigade and should like my appreciation to be conveyed to all ranks. Two days, the 14th and 15th, were spent at Quiévy cleaning up and reorganising, but on the evening of the second day the enemy bombarded the billeting area with 8-inch shells, when two men were killed and nine were wounded. On the 17th the Battalion marched to Carmières, where Major Bailey attended a Brigade conference. On the 19th the Battalion marched by companies with intervals of 200 yards to St. Vaast, and sheltered in houses and cellars until 10.15 P.M., when they moved up to the assembly area, directed by guides from the 1st Battalion Coldstream Guards. List of Officers who took Part in the Operations October 20-22 Major the Hon. W. R. Bailey, D.S.O. Commanding Officer. 2nd Lieut. J. C. Blunt Acting Adjutant. Lieut. R. F. W. Echlin Transport Officer. Lieut. R. G. Buchanan Act.-Quartermaster. Capt. P. M. Spence, M.C. King's Company. Lieut. A. M. Brown " " 2nd Lieut. L. E. G. Wall " " Lieut. C. G. Kennaway No. 2 Company. 2nd Lieut. R. B. Osborne " " 2nd Lieut. M. G. Farquharson " "
  • 34. Oct. 20. Capt. J. H. C. Simpson No. 3 Company. 2nd Lieut. G. S. Lamont " " 2nd Lieut. L. F. A. d'Erlanger " " 2nd Lieut. N. P. Andrews " " Lieut. A. E. D. Bliss No. 4 Company. Lieut. R. S. Challands " " 2nd Lieut. C. B. Hall " " Capt. W. Lindsay, R.A.M.C. Medical Officer. Capt. the Rev. C. Venables Chaplain. The night was dark and it was pouring with rain, when the Battalion formed up along the line of railway between Haussy and St. Vaast. It is impossible adequately to describe the absolute wretchedness of forming up on a pitch-dark night in pouring rain. An operation seemed hopeless, and was only possible by giving careful instructions to every single man in the Battalion. Plenty of time was allowed to prepare for this fight, but the Battalion was only just ready when the time came to advance. No. 4 Company, under Lieutenant Bliss, was on the left; No. 3 Company, under Lieutenant Challands, in the centre; and No. 2 Company, under Lieutenant Kennaway, on the right. Touch was obtained with the 8th Battalion Gloucester Regiment in the Nineteenth Division on the left, and with the Irish Guards on the right. The Royal Engineeers had arranged to lay tapes from the railway to the eight temporary bridges, which they had put over the River Selle, but these tapes were not laid until shortly before zero hour, and one tape did not lead to a bridge, with the result that the platoon which followed it had to wade across the river. From the very start everything went well, and the barrage moved with perfect precision. Chasing the Germans in the dark in this way was not without excitement, as no one knew whether they would remain and fight, or retire as soon as they were threatened. It was a great relief to Major Bailey to find that the enemy had no intention of disputing the crossing of the river, as this would have entailed the loss of a number of men at the start. As it was, the Battalion proceeded in
  • 35. Oct. 21. Oct. 22. artillery formation as far as the Haussy—Solesmes road, passing over five or six lines of rifle-pits wonderfully well made in concrete. When the creeping barrage began to move forward, the Battalion moved with it, but there was little or no opposition, and the objective was gained according to scheduled time. The few prisoners that were captured said that the garrisons of their posts had fled as soon as the barrage began. Direction was admirably kept, and the men advanced close up to the barrage, in spite of the heavy plough on the side of the hill on which they had to advance. The 2nd Battalion Scots Guards and 1st Battalion Welsh Guards then came through, and continued the advance. In the evening the German artillery put down a very heavy barrage on the railway, shifting it later to the road, and then covering the objective and the reverse slope of the hill, but in spite of the shelling the casualties were not heavy. The shelling continued all the next day, but the 3rd Guards Brigade was not required. In the evening the Battalion took over the whole Brigade front from the Scots Guards and Welsh Guards; the King's and No. 3 Companies were placed in the outpost line; and Nos. 2 and 4 Companies took over the main line of resistance on the high ground east of the Solesmes—Vendegies road. The line of the Solesmes road was shelled all day, but the Battalion was very lucky, although No. 4 Company was rather seriously gassed. Lieutenant E. A. D. Bliss and Second Lieutenant C. B. Hall and ten men were all gassed. In the evening the Highland Light Infantry relieved the Battalion, which marched back to billets in St. Vaast. These operations on the whole had been easy, as the Germans had put up very little resistance, but the rain and mud had made everything very miserable, and the men were soaked to the skin before the attack commenced. In all the villages round about civilians emerged from cellars, having hidden there for five days in order to avoid being evacuated
  • 36. by the Germans. Among the German prisoners, who had been captured during the advance, were several regimental commanders of the true Prussian type, with florid faces and bristling moustaches. They presented a sorry spectacle in the cages, and seemed to feel their position acutely.
  • 37. Langfier Ltd photographers Emery Walker ph. sc. Brigadier-General Lord Henry Seymour, D.S.O. On the 23rd the following special order was issued:
  • 38. 2nd Batt. The Commanding Officer congratulates all ranks on the way in which the attack of the 20th was carried out. The difficulties of a night attack are always great, but in this case they were almost entirely eliminated by the obvious care with which the officers and N.C.O.'s had made their preparations and explained the scheme of attack to their men. No one lost direction, and the orders given out beforehand were carried out almost to the letter. The conditions have been very bad, but as always you have made the best of things and have kept up the Grenadier tradition of invariable cheerfulness under hardships. You are now out for a short time to reorganise and refit. In a day's time the Battalion will be as keen and smart as it was before, and I am confident that that spirit which has carried you through this attack so well will be as good and keen in any other operation which you may be called upon to perform in future. I congratulate all ranks, and I sympathise with you for not having found more Germans to kill, which would have made up in some small degree for all the worry and anxiety of the preliminary preparations. (Signed) W. R. Bailey, Lt.-Col. Commanding 1st Batt. Gren. Gds. While the Second Division continued the attack, the 3rd Guards Brigade remained in billets in St. Vaast. On the 25th Lieutenant H. Freeman-Greene and Lieutenant W. A. Pembroke joined the Battalion. The 2nd Battalion After the operations at the end of September the Battalion bivouacked close to the village of Demicourt for ten days' training. Meanwhile Lieut.- Colonel Rasch, having been appointed to command the 1st Provisional Battalion at Aldershot, left for England, and Major C. F. A. Walker, M.C., took over the 2nd Battalion. The following officers took part in the fighting on October 9: Major C. F. A. Walker, M.C. Commanding Officer. Capt. R. G. Briscoe, M.C. Adjutant. Lieut. W. H. S. Dent. Intelligence Officer. Lieut. L. Holbech, M.C. No. 1 Company.
  • 39. Oct. 9. Lieut. C. L. F. Boughey " " 2nd Lieut. E. M. Neill " " Capt. G. B. Wilson No. 2 Company. 2nd Lieut. D. L. King " " 2nd Lieut. C. J. N. Adams " " Capt. J. C. Cornforth, M.C. No. 3 Company. 2nd Lieut. K. B. Bibby " " 2nd Lieut. E. G. Harcourt-Vernon " " Lieut. R. H. R. Palmer No. 4 Company. Lieut. C. C. Cubitt " " 2nd Lieut. B. R. Osborne " " Lieut. E. L. Coffin Medical Officer. During the night of the 7th the Battalion moved into some trenches near Marcoing, and next morning it crossed the St. Quentin Canal at Masnières. The canal was being shelled at the time, but the Battalion escaped without any casualties. Orders were now received for the Battalion to take part in an attack, the first objective being the La Targette—Forenville road, and the second the railway running north-east of Wambaix. In view of the possibility of the enemy being forced to retire, the instructions were that the leading companies were to push on in the general direction of Cattenières. Zero was 6 o'clock on the morning of October 9, and the assembly area for the 1st Guards Brigade was on the line of old German trenches, south-west of Seranvillers. Taking up its position on the left of the line, the Battalion had the 2nd Battalion Coldstream Guards on its right, with the 1st Battalion Irish Guards in reserve. In conjunction with this force, the 2nd Guards Brigade was to advance on the left and the New Zealand Division on the right, and the boundary between the two leading battalions was the main road through Seranvillers and Wambaix. It had been arranged for the barrage to descend on the first objective, and so the 2nd Battalion Grenadiers and 2nd Battalion Coldstream were able to start moving slowly forward ten minutes
  • 40. before zero hour. No. 3 Company of the Battalion, under Captain Cornforth, was on the right and No. 4 Company, under Lieutenant Palmer, on the left, while No. 2 Company, under Captain Wilson, was in support, and No. 1 Company, under Lieutenant Holbech, in reserve. The foremost companies advanced in waves, and the supports and reserves in artillery formation, preceded by strong patrols, Captain Wilson's company being responsible for clearing the village of Seranvillers. Two howitzers, a field-gun, several machine- guns, and a few prisoners were captured without any real opposition, and the Battalion pushed on very rapidly to within a short distance of Cattenières, where the patrols were sent ahead through the village. But as soon as they emerged from Cattenières, and came on to the ridge to the north they were held up by heavy machine-gun fire from the wood surrounding the factory at Ignies-le-Petit. There was a considerable stretch of open ground in front of the wood, and progress became very difficult. Lieutenant Palmer, commanding No. 4 Company, ordered Second Lieutenant Osborne to try and advance with his platoon on the left in order to enfilade the enemy in the south-east corner of the wood. A certain amount of ground was gained by sectional rushes under extremely heavy machine-gun fire, but the complete lack of "dead" ground made real success impossible, and Major Walker decided to postpone any farther move until it could be made under cover of darkness. A wonderfully gallant piece of work during this part of the fighting was done by No. 16796 Private Edgar Holmes, and won for him the Victoria Cross, which unfortunately he did not live to receive. He was acting as a stretcher-bearer, and calmly and fearlessly went on with his errands of mercy to the wounded under a withering machine-gun fire. He succeeded in getting two men in, and, quite regardless of the intense fire at close range, was attending to a third when he was himself hit in the stomach. He did not falter for a moment, and, paying no attention to his own wound, went forward once more to rescue yet another of the fallen. He had covered thirty yards in the direction of the enemy when he was hit again, this time fatally.
  • 41. At 1 A.M. on October 10 Major Walker brought up the support and reserve companies, and directed them to attack the wood and factory at Ignies-le-Petit. They rushed the factory, encountering little resistance, and then took up a line and dug in on the farther edge of the wood, beyond the main road. The whole advance was a complete success, and the casualties of the Battalion were only one man killed and 12 wounded. Four hours after the attack began, the 1st Battalion Irish Guards passed through the Battalion, and went in pursuit of the retreating Germans. For the week that followed the Battalion was in Brigade Reserve, and moved slowly forward through Fresnoy Farm, Bévillers, Quiévy, Boussières to St. Hilaire, when it prepared for the forthcoming attack. In the operations on the 20th the officers engaged were: Major C. F. A. Walker, M.C. Commanding Officer. Lieut. S. T. S. Clarke, M.C. Adjutant. 2nd Lieut. A. F. Alington Intelligence Officer. Lieut. L. Holbech, M.C. No. 1 Company. Lieut. C. L. F. Boughey " " 2nd Lieut. E. M. Neill " " Capt. G. B. Wilson No. 2 Company. 2nd Lieut. D. L. King " " 2nd Lieut. C. J. N. Adams " " Capt. L. St. L. Hermon-Hodge No. 3 Company. 2nd Lieut. K. B. Bibby " " 2nd Lieut. E. G. Harcourt-Vernon " " Lieut. H. B. G. Morgan, M.C. No. 4 Company. Lieut. C. C. Cubitt " " 2nd Lieut. B. R. Osborne " " Lieut. E. L. Coffin Medical Officer. This attack was only part of a very extensive movement on the whole of the Third Army front. The Sixty-first Division was ordered to advance on the right of the Guards Division, and the Nineteenth Division, under Major-General Jefferies, on the left. Acting as the
  • 42. Oct. 19. Oct. 20. leading battalion on the right of the Guards Division, the 2nd Battalion Grenadier Guards had the Valenciennes—Solesmes road as its first objective, and, for its second, a line about a quarter of a mile west of the villages of Vertain and Romeries. The capture of Solesmes, which was known to be full of civilians, and strongly held by the enemy, was entrusted to the Sixty-first Division, while the Guards Division was to push right on to its final objective. This gave the Battalion the delicate and dangerous task of advancing the whole way with an exposed flank. Two other features added to the difficulty of the manœuvre. The long distance to the final objective had to be traversed under cover of darkness, and before it could reach the outskirts of Solesmes, known as St. Python, the Battalion had to cross the River Selle. Leaving St. Hilaire at 9.30 P.M. on the 19th inst., the Battalion followed the 1st Battalion Irish Guards until it reached its assembly position, which was the railway running from Haussy to Solesmes. No. 1 Company under Lieutenant Holbech was on the right, No. 2 Company on the left under Captain Wilson, No. 3 under Captain Hermon-Hodge in support, and No. 4 under Lieutenant Morgan in reserve. A drizzling rain fell incessantly, and though the moon was full it was a very dark night. At zero hour, 2 A.M., under a heavy and very effective barrage, the Battalion advanced to the river in artillery formation, guided by tapes. Very indifferent bridges had been erected by the Royal Engineers and the Pioneer Battalion of the Coldstream Guards, and it was no easy matter getting all the men across in single file on two extremely narrow planks. However, there were very few casualties, and the leading companies deployed into waves, and went forward, followed by the supports and reserves in artillery formation. Very soon after the start No. 1 Company got to St. Python, but as it was entering it came under heavy machine-gun fire from the houses. Some useful bombing work was carried out at this juncture, especially by No. 1 platoon, led by Corporal Hunter. As the barrage was moving forward,
  • 43. Lieutenant Holbech decided to leave one platoon to complete the capture of St. Python, supported by No. 3 Company, while the rest of the leading companies went on to their first objective, which they reached almost to schedule time. About 50 prisoners and several machine-guns were captured in this stage of the attack. There was an hour's halt at this point, in the course of which the remaining platoon of No. 1 Company joined up with the leading troops. It had been uphill work all the way, with a good deal of wire to get through, and it had been found necessary to constitute No. 3 Company a defensive flank. Just before another move was due, a party of the enemy was seen on the right rear of the Battalion, firing lights towards Solesmes. One platoon under Lieutenant Holbech wheeled about, and charged it from the rear, "getting home" with the bayonet and capturing several machine-guns. The final objective was reached soon after 4 o'clock. But the Germans were inclined to hold on to their positions, and all the way the two leading companies met with resistance. This was partly owing to machine-gun fire from the right flank, as up to this time Solesmes had not yet been cleared by the Sixty-first Division. On the line of the final objective No. 1 Company took a field-gun with its garrison of one officer and 25 men—which brought the total captures of the Battalion in the attack up to 200 prisoners, two field- guns, and a large number of machine-guns and trench mortars. By daylight the leading companies had consolidated their line of outposts, and in order to protect the right rear of the Battalion, No. 3 Company dug in in échelon to the right flank, with No. 4 Company in rear of it. About 9 A.M. the Sixty-first Division continued its advance from Solesmes, and came up into line with the Battalion. Soon after dawn heavy enemy machine-gun fire had been brought to bear upon the leading companies, and continued for several hours, while the German artillery, which up to this time had taken little part in the operations, began to assert itself, and shells of every sort fell round the battalion. Lieutenant E. M. Neill, who had been conspicuous for his work and bravery during the advance, was
  • 44. 3rd Batt. wounded by shell-fire, and the total casualties were one officer and 52 other ranks. On the evening of the 22nd the Battalion was relieved by the 24th Royal Fusiliers, and marched back to St. Vaast, where it "embussed" for Carnières. There it remained until the end of the month, when it moved on to St. Hilaire, proceeding the following day to Capelle. The 3rd Battalion In the first week in October the Battalion remained at Doignies, where during a practice attack a barrage from a smoke rifle grenade was tried, and on the 8th moved to Premy Chapel. An attack was being made by the Sixty-second Division, and the Battalion, which was not called upon, moved on later to Masnières. Cambrai could be seen in the distance burning fiercely throughout the night. On the 9th the orders were not received until the Battalion was in its assembly position. The following officers took part in these operations: Lieut.-Colonel the Viscount Lascelles, D.S.O. Commanding Officer. Capt. E. G. A. Fitzgerald, D.S.O. Adjutant. Lieut. R. C. G. de Reuter Intelligence Officer. Capt. E. R. M. Fryer, M.C. No. 1 Company. Lieut. K. A. Campbell, D.S.O. " " 2nd Lieut. G. R. Gunther, M.C. " " Capt. A. H. S. Adair, M.C. No. 2 Company. Lieut. S. G. Fairbairn, M.C. " " Lieut. C. B. Hollins " " Lieut. F. Anson, M.C. No. 3 Company. 2nd Lieut. H. J. Gibbon, M.C. " " Capt. E. J. Bunbury, M.C. No. 4 Company. 2nd Lieut. A. E. F. F. Strangways-Rogers " " 2nd Lieut. H. I'B. Smith " " 2nd Lieut. R. P. Papillon " "
  • 45. Oct. 9. Capt. J. H. Graff, U.S.A.M.O.R.C. Medical Officer. Capt. the Rev. S. Phillimore, M.C. Chaplain. In the early part of the attack one of our guns appears to have been badly laid, with the result that it continued to shoot short, causing several casualties among the leading companies of the Battalion. This was particularly irritating, since only a short time before these companies had been mistaken for the enemy, and had been fired at by one of our own aeroplanes. The first objective was taken by 6.30, and no Germans were encountered, the only casualties being caused by our barrage. The Battalion started off with No. 1 Company under Captain Fryer on the right, No. 2 under Captain Adair on the left, No. 3 under Lieutenant Anson in support, and No. 4 under Captain Bunbury in reserve. As there seemed every possibility of the Germans retiring rapidly, the scheme of attack was ambitious, with a large extent of ground to be covered. The first objective was a trench running from Niergnies to Seranvillers; the second objective the road running from Cambrai to La Targette; and after that there were four "bounds," ending up with the Cambrai—Beauvois road. There was no sign of the enemy, not even any hostile shelling at first, and no difficulty was experienced in securing the objectives. In the second bound, Wambaix Copse, which might possibly have been held by the enemy, was also taken without opposition. At 10.30 the capture of Estourmel was effected, and still the enemy had shown no sign of fighting. Lord Lascelles decided that the dinners should be eaten now, and as the 1st Guards Brigade had not come up there was plenty of time for the men to dine before resuming the advance. It was not until the Battalion reached the Cambrai—Beauvois road and Igniel-dit-les-Frisettes that the enemy's resistance stiffened, and it suffered casualties. Captain Adair with No. 2 Company occupied Igniel, but reported that casualties were occurring from machine-gun fire on his right, and from the enemy's heavy guns at long range. This village was in a clump of trees on the crest of a hill on the farther side of the Cambrai—Beauvois road, and was approached by a sunken road, on each side of which the ground rose in a gentle
  • 46. Oct. 10. slope, and formed an ideal position for machine-guns. Captain Adair advanced up the sunken road, and as soon as his company appeared on the hill it was subjected to a harassing machine-gun fire. He at first ordered his men to dig themselves in, but later he decided to move up into Igniel-dit-les-Frisettes. When No. 2 Company moved into the trees and buildings, it was so heavily shelled that Lord Lascelles, who had come up to see how the situation was developing, told him his men would be safer out in the open. There seems little doubt that the German ammunition was already deteriorating, for when their shells burst the pieces did not scatter so well as before. But for this the casualties would certainly have been very heavy, and in all probability it would have been found necessary to retire from the hill altogether. At 4.30 P.M. Lord Lascelles received instructions to support a cavalry patrol of the Oxfordshire Hussars, which had been sent out through the 1st Battalion Coldstream on the left. He was surprised at this message, for he knew that no cavalry patrol could possibly go out in the face of this machine-gun fire, and when the officer commanding the patrol appeared at the Battalion Headquarters to say that it had been unable to go forward at all, he was able to disregard the order, and send in a report asking for confirmation of his action. In the evening orders were received to establish an outpost line with two companies over the Cambrai—Beauvois road, with two companies in support near Estourmel. That night a warning order was received for a farther advance the next morning, and the Battalion Headquarters moved up to Grand Chanfemel. The next morning the 1st Battalion Scots Guards passed through the outpost line, and continued the advance by bounds, while the Battalion moved forward in support. No. 3 Company on the right, under Lieutenant Anson, and No. 4, under Captain Bunbury, formed the support, with the other two companies in reserve. In the afternoon the Scots Guards were held up west of St. Hilaire, and were ordered to establish an outpost line for the night. Nos. 3 and 4 Companies were placed under the orders of the Officer Commanding the 1st Battalion
  • 47. Scots Guards, while two companies of the 1st Battalion Coldstream were sent up to take their place. On the 11th the 1st Guards Brigade passed through the outpost line, and continued the advance, while the Battalion went into very comfortable billets in St. Hilaire, where the German baths were used. On the 13th the 2nd Guards Brigade passed through with the 3rd Battalion Grenadiers on the right, the 1st Battalion Coldstream on the left, and the 1st Battalion Scots Guards in reserve. These Battalions were ordered to be at immediate notice to move in case the 3rd Guards Brigade, which was crossing the Selle River, should require assistance, but the warning orders were later cancelled; and that night the Battalion relieved the 2nd Battalion Scots Guards in the front line along the Selle River. Second Lieutenant Gunther with a patrol of eight men crossed the river, and surprised a German whom he gagged and brought back. He reported that the enemy seemed in a sleepy and disorganised state, and Lord Lascelles accordingly asked for permission to push a company across the river that night, but was told instead to establish a bridgehead on the following night north of St. Python. The erection of a bridgehead so near to so many houses was a matter of some difficulty, since it was obvious that the crossing could not be held if the enemy occupied houses within 300 yards of it. Lord Lascelles therefore ordered Lieutenant H. I'B. Smith to occupy the nearest house to the bridgehead and Lieutenant F. Donnison to search the four or five houses near it and make sure they were empty. Second Lieutenant Smith had no difficulty in occupying the house, but found that the walls on the enemy's side were so full of large holes that the house was untenable. Lieutenant Donnison moved forward to reconnoitre but ran into the Germans in some force in the streets beyond, and was forced by machine-gun fire and bombs to fall back on Lieutenant Smith's party, leaving behind two men who were too badly wounded to move. The alternatives open to Lord Lascelles were first, to hold the bridge with trenches dug practically on it, but this was dismissed as
  • 48. being strategically unsound; secondly, to dig trenches beyond the bridge, which was difficult, because the men would have to be on the top of the river bank, and overlooked by the houses 300 yards away; thirdly, to occupy one house and strongly fortify it. This seemed at first to be the best solution of the difficulty, but when Second Lieutenant Smith and Second Lieutenant Donnison, who had behaved with great gallantry and coolness, reported that it was impossible to hold the nearest house, and that all the neighbouring houses would have to be cleared of the enemy, Lord Lascelles came to the conclusion that this would involve him in endless operations in the town. He therefore decided to have the bridgehead dug in on the banks of the river. Captain Bunbury, who commanded No. 4 Company, from which the two platoons had been sent to secure the houses on the farther side of the river, was placed in a difficult position. He brought up the remainder of his company, and held a quarter of the village of St. Python, the houses on the other side of the stream being held entirely by the Germans. It was impossible to get to him in daylight, and by night all the streets were swept with machine-gun fire. He handled his men under circumstances of exceptional difficulty with some skill during the days he was there. Throughout these operations some five hundred civilians lived in the cellars and performed many acts of kindness to the men of the Battalion who visited them. It was impossible for them to move out of their retreat without being shot at. One little girl, eleven years old, quite unconscious of the danger she ran, walked out in the streets in broad daylight, and was brutally shot by a German; at great risk one of the men of the Battalion went out and carried her back, but she died.
  • 49. Operations October 20th, 1918 Emery Walker Ltd. This was the beginning of the period when the Germans seemed to spare all the buildings, and to concentrate their fire chiefly on the
  • 50. exits from villages. On the 16th the enemy was reported to be massing men on the St. Python—Haussy road, and our artillery shelled the area indicated for two hours, but no counter-attack developed. The following day the Battalion was relieved, and went into billets at St. Vaast. On the 20th the 1st and 3rd Guards Brigades attacked, and captured the high ground east of Solesmes and St. Python, but the 2nd Guards Brigade was not wanted. On the 22nd the whole of the Guards Division was taken out of the line for a week's rest.
  • 52. Nov. 1918. The Guards Division. CHAPTER XXXV NOVEMBER Diary of the War The Versailles Conference opened. A mutiny among the German sailors at Kiel broke out, and had far-reaching effects. In France the Allied Armies continued to press forward, and the German retreat became more rapid. In reply to overtures made by the Germans, the Allies replied that if Germany wished for an armistice she must apply to General Foch, in the usual military form, for the conditions under which an armistice would be granted. On the 8th the German Envoys were received by General Foch, and were given the conditions drawn up by the Allies. A revolution broke out in Berlin, and the abdication of the Kaiser was announced. On the 11th the Armistice was signed. At the beginning of November Austria surrendered unconditionally. The Guards Division The advance in November, culminating in the capture of Maubeuge, was so rapid, the extent of ground covered in so short a time so great, and the number of prisoners and guns taken so large, that there was little doubt that an Armistice on any conditions was the only thing that could save the German army from absolute disaster. The Guards Division moved up on the 2nd from Escarmain towards Villers Pol. The objectives or bounds were no longer measured in yards but in miles, and the ambitious programme produced by the Divisional Staff would have been considered beyond the bounds of possibility, even six months before.
  • 53. It was known that the Germans must now stand and fight, if they were to gain time for the withdrawal of their armies elsewhere, and a final attack was ordered for November 4 in order to break through their resistance, and complete the victory of the Allied Armies. Preparations for the attack were somewhat disorganised by a partial withdrawal of the enemy during the afternoon of the 3rd. General Sergison-Brooke and General de Crespigny felt their way forward, and Villers Pol was occupied during the night, but it was impossible to notify the artillery of the exact position of the leading companies by the time the attacks started on the 4th, and in order to allow a margin of safety the barrage had to start some way east of the village, with the result that some of our troops never caught it. Up to mid-day the Germans fought very stubbornly, but they were everywhere driven back, and by the evening Preux-au-Sart was in our hands, an advance of nearly four miles. So fierce had been the fighting that the losses on both sides were exceptionally heavy, the Germans in particular leaving a large number of dead upon the ground. During the two following days Heywood's Brigade drove back the enemy's rear-guards another five miles, and patrols of the 1st Battalion Welsh Guards entered Bavai, an important town, and the junction of no less than eleven roads. Bavai was not on the front allotted to the Guards Division, but during the whole of this advance the line on the left of the Division was very much thrown back, which caused great inconvenience, since it enabled the enemy to enfilade the troops from the north, for the Germans were now prodigal in the expenditure of shells, which they knew they could never carry away with them. The troops billeted in villages in rear suffered considerably, and as the left flank of the Division was thrown back the back areas were all within easy range from the north. In particular the village of Amfroipret was heavily punished, and General Heywood was severely wounded by a shell, which exploded in his headquarters just west of that village. Once more the 3rd Guards Brigade was without a commander. Brigadier-General Campbell, V.C., was sent for to take command, and in the meantime
  • 54. the Brigade was commanded by Lieutenant-Colonel Stirling, Scots Guards. On the 7th Sergison-Brooke's Brigade, passing through the 3rd Guards Brigade, continued to drive the enemy back, but the following day the advance was checked owing to enfilade fire from the north. That afternoon a German orderly carrying an important message was captured. The message was at once sent by special despatch rider to Divisional Headquarters, and on being translated proved to be an urgent order to the rear-guard commander, telling him to hold on to his present position at all costs, and cover the withdrawal of the main body to a line east of Maubeuge. The resistance of the rear-guard, the message added, must be such as to gain time for the consolidation of this new line and thus save the rest of the army. General Matheson at once ordered General Sergison-Brooke to push forward his reserve Battalion (the 3rd Battalion Grenadiers) directly it was dark, with instructions to force its way through the enemy's rear-guard and straight on down the road to Maubeuge. The 3rd Battalion Grenadiers moved forward at 10 P.M., and reached the citadel of Maubeuge at 2 A.M., but it was just too late to cut off the enemy's rear-guard. De Crespigny's Brigade was ordered to consolidate a line on the high ground east of the city; this was many miles east of any point reached by the remainder of the British Army. With the capture of Maubeuge the advance of the Guards Division ended, and at 11 A.M. on the 11th the Armistice was signed. The final rapid advance had been made under circumstances of exceptional difficulty, since the systematic destruction of the railways by the Germans had necessitated the supply of ammunition and rations being brought up by road. The country was closely intersected by streams, and as all road bridges were destroyed, it was necessary to erect temporary bridges with deviations through the fields leading to them, while the original bridges were being repaired. Constant rain and the continuous stream of transport soon
  • 55. 1st Batt. turned these deviations into a quagmire, through which the horses, often up to their bellies in mud, had to pull their heavy load: only the persistent determination of the transport officers and men to get through at all hazards, and the fine condition of the horses made the task of supplying the troops possible. Even then these efforts would have been of no avail, but for the work of the Royal Engineers in repairing the innumerable bridges to carry lorry traffic: day and night, without rest and with scarcely time for food, they worked, and never failed to do what was asked of them. But the finest part of the advance, without which victory could not have been enforced in 1918, was the dash and courage of the infantry in face of the insidious knowledge that peace was within sight. Every officer and man who went into those attacks in November knew that it might be the last engagement of the war, and that if he avoided unnecessary risk he would probably get through safely; if he took it, he might be throwing away his life on the last day of the war. That knowledge had not the smallest effect upon the conduct of the troops, and the attack on November 4 was carried out with a dash and reckless courage that had never been surpassed in the war. The result cannot be over-estimated: instead of a half-hearted Armistice with the Germans still under the impression they were, as far as the army was concerned, virtually the victors, the last attacks had shown them that it was merely a matter of estimating how far their defeat had been completed, and had made them understand that their safest course lay in bringing about an Armistice as speedily as possible, to save the reputation of their army. The 1st Battalion After ten days' rest spent in billets at St. Vaast the Battalion went in pursuit of the retreating Germans, and marched to Escarmain, which was being shelled by the enemy. On the 4th the 1st and 2nd Guards
  • 56. Nov. 5. Brigades attacked, while the 3rd Guards Brigade was in Divisional Reserve. The Battalion moved by companies at 200-yards intervals to Mortre Farm, where it bivouacked in the orchard, moving on again in the afternoon to Villers Pol. Here orders were received that the Battalion was to go through the 3rd Battalion Grenadier Guards and to continue the advance. List of Officers who took part in the Operations from November 4 to 7 Lieut.-Colonel the Hon. W. R. Bailey, D.S.O. Commanding Officer. Major C. H. Greville, D.S.O. Second in Command. Lieut. J. A. Lloyd Acting Adjutant. 2nd Lieut. J. C. Blunt Intelligence Officer. Capt. J. Teece, M.C. Quartermaster. Capt. P. M. Spence, M.C. King's Company. Lieut. R. G. Buchanan " " 2nd Lieut. A. D. Anderson " " Lieut. C. G. Kennaway No. 2 Company. 2nd Lieut. M. G. Farquharson " " 2nd Lieut. G. S. Lamont, D.S.O. " " Lieut. R. S. Challands No. 3 Company. Lieut. W. A. Pembroke " " 2nd Lieut. N. P. Andrews " " Lieut. H. Freeman-Greene No. 4 Company. 2nd Lieut. L. F. A. d'Erlanger " " 2nd Lieut. C. A. Fitch " " Capt. W. Lindsay, R.A.M.C. Medical Officer. Capt. the Rev. C. Venables Chaplain. At 2.15 A.M. the Battalion moved out from Villers Pol with intervals of thirty yards between platoons, and marched to La Buvette cross-roads, where a halt was made, and the Lewis guns were taken off the limbers. Directed by two guides from the 1st Battalion Scots Guards, the Battalion made its way across country to a bridge, where a long halt was made to find the Headquarters of the 3rd Battalion Grenadiers—no easy matter in the dark. The Battalion eventually managed to get into position close
  • 57. behind the front line posts. No. 2 Company, under Lieutenant Kennaway, was on the right and in touch with the 2/20th London Regiment from the Sixty-second Division; No. 3 Company, under Lieutenant Challands, on the left in touch with the 2nd Battalion Scots Guards; No. 4 Company, under Lieutenant Freeman-Greene, was in support; and the King's Company, under Captain Spence, was in reserve. At 6 A.M. the advance began. Rain fell and continued intermittently during the three days' operations. The advance was much hampered, especially in the initial stages, by a creeping barrage put down by the Sixty-second Division, without any warning having been given to the Battalion. The going was very heavy, and the very enclosed country, intersected by thick hedges and wire fences, made it difficult for the companies to keep their directions. Little opposition was encountered, until the leading platoons reached Amfroipret, when one German officer and five men were taken prisoners in the village. Immediately east of the village and in the wooded country south of the railway, the Battalion began to encounter the enemy's rear-guard, but after driving it in some way the advance came to a standstill about the line of the road from Bout la Haut to Cambron Farm. The extraordinary difficulty of locating a hidden enemy in such an enclosed country made the advance hazardous, and the Germans appeared to be holding very strongly with machine-guns a line some five hundred yards east of this road. Lieutenant Kennaway, with No. 2 Company, attempted to secure the cross-roads in front of him, and failed to make any headway against the enemy's machine-guns. During this gallant attempt Lieutenant Lamont, who was with the leading platoon, was killed, in addition to many men. The situation was not without anxiety, for on neither flank could any British troops be seen. It looked as if the Battalion had been going on too fast for the rest of the line, and Lieutenant-Colonel Bailey decided to wait until the situation on the right developed. No. 2 Company accordingly dug in where it was, and the King's Company was moved to Cambron Farm to fill up the gap there was between
  • 58. Nov. 6. the right of the line and the Sixty-second Division. The situation on the left required some adjustment, for the 2nd Battalion Scots Guards had been apparently held up, and No. 3 Company had to be responsible for that flank of the Battalion. About mid-day a company of the Scots Guards came up through the village, and occupied Bermeries without opposition, making the left flank once more secure. This enabled No. 4 Company to push forward through the orchards and drive out an enemy's post, but again the enemy's machine-guns prevented any farther advance. The difficulties in this action were that, when once a company or platoon had been sent off anywhere, it could not be found again owing to the enclosed nature of the country. No communication between the various parties was possible, and the operations therefore developed into small isolated parties fighting independently of each other. The Germans began to shell the village with heavy shell during the afternoon, and the front line posts were fired on at close range by field artillery. During the evening No. 3 Company took over the outpost line from No. 4 Company, which was withdrawn to cellars in the eastern end of the village. Lieut.-Colonel Bailey received orders for a farther advance next day, and the King's and No. 2 Companies were to secure the cross- roads, if possible during the night. It was, however, so dark, and the enemy was in so great strength, that the operation was not attempted that night. Brigadier-General Heywood, commanding the 3rd Guards Brigade, was wounded in the evening, and the command devolved upon Lieut.-Colonel Stirling, commanding the 2nd Scots Guards. It poured with rain all night. The Battalion formed up south of the railway on the line of the forward posts, with the King's Company, under Captain Spence, on the right; No. 4 Company, under Lieutenant Freeman- Greene, on the left; No. 3 Company, under Lieutenant Challands, in support (their position north of the railway being taken over by the Welsh Guards), and No. 2 Company, under Lieutenant Kennaway, in reserve. The King's Company and No. 2 Company were ordered to
  • 59. make good the line of the Bavai—Queve-au-loup road, where Nos. 2 and 3 Companies would advance through them, and secure the last two objectives. The King's and No. 4 Companies were comparatively fresh, as they had had some hours' rest in barns and cellars during the night, but Nos. 2 and 3 Companies were soaked through by the rain, and tired out after a hard day constantly on the move and a night spent in digging in on the outpost line. At 6 A.M. the advance began, and was again most difficult, on account of the enclosed country. The Battalion met no opposition until it reached some high ground, when the leading platoons came under a very heavy machine-gun fire from the far side of the valley, and a harassing fire from field-guns. No. 4 Company was temporarily checked, but the King's Company, under cover of the houses and hedges along the Mecquignies road, seized the crossing over the river, and worked up till it got in touch with a company from the Sixty-second Division on the right. This advance through houses was well carried out, and the Lewis gunners performed wonders in getting their guns into houses. One party of German machine-gunners was shot down in the church tower. No. 3 Company was halted on the road, and No. 2 Company in reserve moved up to the cross-roads at Bavisiaux. The grounds of Mecquignies Château were strongly held by machine-guns, but after a sharp fight the King's Company drove out the enemy and seized the Château. In this fighting Second Lieutenant A. D. Anderson was killed, while gallantly leading his men to the attack. Lieutenant Freeman-Greene, seeing the King's Company advance up the farther slope, at once began to push on with No. 4 Company, and in spite of a hail of machine-gun bullets reached the line of the river with little loss, and gained touch with the left of the King's Company. After this the fighting became very promiscuous, and platoons became scattered among the orchards and fields of the Château. Touch was established with the Welsh Guards, who had been temporarily checked in Buvigny, and who were now moving on, and the enemy seemed to be retiring all along the line. Lieut.-Colonel Bailey was ordered to push on and try and seize the line on the Bavai road before night, and he accordingly moved up No. 2 Company to the Château grounds. The King's and No. 4 Companies had in the
  • 60. Nov. 7. meantime made good the high ground north of the Château, driving out some advanced posts of the enemy. No. 3 Company was ordered to move through Mecquignies village and to seize the orchards north-east of the village. This it succeeded in doing, meeting with little opposition. The King's and No. 4 Companies at once prolonged the line to the left, and pushed out patrols to the east. This line was consolidated, and as the night was very dark no farther advance was considered advisable. The 466th German Regiment which opposed the advance fought extremely well, and was cleverly handled by its commander, who thoroughly understood how to fight a rear-guard action. The wet weather and the mud made these operations peculiarly trying to men who had had little training in close country fighting, but the discipline in the Battalion was so good that each platoon, however isolated, could be relied on to act intelligently. The scenes in the various villages were most touching, for the civilians who emerged from cellars and underground dug-outs all acclaimed the men as their deliverers, and were highly excited in their joy. Early on the 7th the 1st Battalion Scots Guards advanced through the Battalion, which was withdrawn to Amfroipret. Lieut.-Colonel Bailey issued the following message to the Company Commanders: Please let all ranks know that I consider the advance on the 5th and 6th to have been carried out excellently in spite of very heavy going and the difficulties of keeping direction. On the 5th Nos. 2 and 3 Companies, though they had little fighting, had a thoroughly miserable and uncomfortable time, which as usual was borne with the greatest cheerfulness. The King's Company and No. 4 Company were better off, as they got a few hours' rest under cover. On the 6th, in spite of very heavy machine-gun fire from front and flank and most difficult country, the King's Company and No. 4 pushed ahead and drove in the rear troops of the enemy, thus making good the passage of the river Du Moulin de Bavai. The greatest credit is due not only to the fine fighting powers of the men but also to the good leading and forethought of the leaders. The two days' fighting were unsatisfactory as far as the killing of Germans was concerned, and the conditions miserable from the start to finish, but the
  • 61. 2nd Batt. Battalion, as always, went quicker and farther than any other Battalion in the Brigade, and the distance you went undoubtedly helped the 24th Division by threatening the communications of the enemy, holding the ground north-west of Bavai, and causing them to retire. You have well kept up the traditions of the Regiment and maintained the Grenadier spirit—the most magnificent in the world. I congratulate officers, non-commissioned officers, and men, and I know that you will never fail. W. R. Bailey, Lieut.-Colonel, Commanding 1st Battalion Grenadier Guards. On the 9th the Battalion marched to La Longueville, and the 1st Guards Brigade entered Maubeuge. On the following day it reached Douzies, where the news arrived that the Armistice had been signed. On the morning of the 11th the Battalion paraded, and the Commanding Officer read out the official telegram declaring the Armistice to be in force. Operations November 1-11, 1918 Emery Walker Ltd. The 2nd Battalion
  • 62. Nov. 4. In the fighting on November 4 the following officers took part: Lieut.-Colonel C. F. A. Walker, M.C. Commanding Officer. Capt. R. G. Briscoe, M.C. Adjutant. Lieut. L. Holbech, M.C. Intelligence Officer. Capt. L. St. L. Hermon-Hodge No. 1 Company. 2nd Lieut. D. L. King " " Lieut. W. H. S. Dent No. 2 Company. 2nd Lieut. C. J. N. Adams " " Lieut. R. H. R. Palmer No. 3 Company. 2nd Lieut. K. B. Bibby " " 2nd Lieut. E. G. Harcourt-Vernon " " Lieut. C. C. Cubitt No. 4 Company. 2nd Lieut. B. R. Osborne " " Lieut. E. L. Coffin Medical Officer. The Battalion marched from Capelle through La Croisette and Villers Pol to its assembly area, which was a line 100 yards east of the Jenlain—Le Quesnoy road. Villers Pol was being heavily shelled at the time, and a good number of casualties resulted. Lieut.-Colonel Walker was ordered to advance in support of the 2nd Battalion Coldstream Guards, until the capture of the first objective, the Fresnay—Wargnies-le-Petit road, had been completed, then to pass through and secure the second objective, a line some 3000 yards farther east. Zero hour was fixed for 7.20 a.m. The rain ceased early, but a very heavy mist hung low over the ground and made it impossible for troops to see more than 200 yards ahead. No. 4 Company, under Lieutenant Cubitt, was on the left of the line; No. 3 Company, under Lieutenant Palmer, on the right; No. 2 Company, under Lieutenant Dent, in support; and No. 1 Company, under Captain Hermon-Hodge, in reserve. The 2nd Guards Brigade under Brigadier-General Sergison-Brooke went forward on the right of the Battalion. Owing to mist the Coldstream lost their direction, and proceeded at a right incline. Seeing troops ahead moving along close to the barrage, the foremost companies of the Battalion imagined that they were
  • 63. Nov. 5. Coldstream Guards making for the first objective. It was only discovered later that these were really the Germans in retirement. As No. 4 Company passed over the high ground near the wood south- west of Wargnies-le-Petit, the mist suddenly lifted, and they came under heavy machine-gun fire from the north. Lieutenant Cubitt was wounded, and the company had a considerable number of casualties. Second Lieutenant Osborne, who now took command, led two platoons a bit farther by short rushes, but was eventually stopped by a sweeping machine-gun fire, which made farther progress impossible. German field-guns were also firing at a short range, and the Battalion lost a good many men. Lieutenant Osborne therefore took it upon himself to make a personal reconnaissance of the enemy's positions, and see whether there was not a better line of advance. With almost reckless gallantry he went out, and carefully examined the German line, but the result of his scrutiny was never known, as he was shot through the heart by a machine-gun bullet on the way back. As No. 4 Company was now without an officer, Sergeant E. Carter took command. Meanwhile No. 3 Company under Lieutenant Palmer had made its way through the southern part of the wood near Wargnies-le-Petit. On leaving the wood along the eastern edge, they came under machine-gun and rifle fire from the enemy, who was barely 200 yards away. Lieutenant Palmer advanced by short rushes, and not only took the position, but captured or killed the whole garrison. It was found impossible to proceed, and the company dug in a line of outposts. During this attack the field-guns of the Guards Divisional Artillery were brought up at a gallop to within a very short distance behind the leading troops—a daring and difficult achievement that is worthy of record. As soon as these guns opened fire on the village of Wargnies-le- Petit, the companies on the left were able to continue their progress. Touch was then gained with the 3rd Grenadier Guards on the right, and with the Forty-second Division on the left. Nothing more could be done that afternoon, and the Battalion consolidated its position. Early on the morning of the 5th the 1st Battalion Irish Guards passed
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