ABSTRACT
Chapter 4 introduced the concept of business as a constantly reshaping Stakeholder Knowledge Network (SKN) with the network at the heart of corporate development (strategy), value analysis and accounting. The SKN plays a crucial role as a control framework for the effective integration of these three elements. In Chapter 5 the role of the SKN was explored in relation to the valuation of the company by the market (market capitalisation). The outcome was an analysis of market capitalisation through 4S accounting where the four slices of equity were identified with the dimensions of the SKN. In this chapter the focus is upon the relations between the SKN and corporate development and its relationship in turn to both strategy and market conditions. The chapter starts with an exploration of the relations between strategic choice and the LEADERS business model which was introduced in Chapters 1 and 4 as a mnemonic for the strategic management of the stakeholder network. Strategy directs management action and LEADERS requires that a company excels in one or more, of leverage, engagement, alignment and development and/or the company excels in combining these. The aim is to create a strategic blend of leverage, engagement, alignment and development that is distinctive, superior, difficult to imitate and that works from a financial perspective. The chapter starts by looking at LEADERS as a strategic framework, in the context of Bingham and Eisenhardt's (2008) strategic logics.
