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Exploring Strategy Text Only, 10/E
INTRODUCING STRATEGY
Introduction
This chapter has been restructured since the last edition, particularly to put the Exploring
Strategy model of position, choice and action in a more prominent position. This model should
serve as a useful summary of the book’s perspective on strategy as well as a practical heuristic
for approaching strategy problems.
Illustration 1.1
Vice pays
Many students will be familiar with Vice Media, amused or perhaps offended. Anyway, the
main purpose of this illustration is to introduce students to the range of issues that make up
strategy. It touches directly on key topics introduced in this chapter, for example, strategic purpose
(‘the largest online media company in the world’); corporate-level strategy (Vice is both
international and diversified, with a pub as well); and corporate culture (‘weird’). With respect to
the specific questions:
1. How does Vice Media’s strategy fit with the various strategy definitions of Alfred Chandler,
Michael Porter and Henry Mintzberg (see Figure 1.1)?
On the definitions of strategy: in terms of Figure 1.1, Vice seems more Mintzbergian than
Chandlerian in its emergent approach to strategy (‘we didn’t have a business plan….’). It
might be worth discussing whether this is more typical of entrepreneurial start-ups than larger
corporations and the pros and cons of this (a business plan can be pretty important to early-
stage investors: see Chapter 9). At the same time, Vice seems to have a Porterian concern for
uniqueness, differentiating itself by offering edgy media worldwide.
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Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy, 10 edition,
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Illustration 1.2
Strategy statements
An important point in this illustration is to show how strategy applies to widely different kinds
of organisations – both a large technology company and a public university. Although the
precise content of the two organisation’s materials vary, they both cover the major issues involved
in a strategy statement: goals, scope and advantages/capabilities.
1. Construct short strategy statements covering the goals, scope and advantage of Samsung
and the University of Utrecht. How much do the different private and public-sector contexts
matter?
Strategy statements for Samsung Electronics and Utrecht University. Samsung is very clear
about its goals ($400bn in revenue, and top five brand by 2020; note its vision – ‘Inspire the
World, Create the Future’ – sounds more like a mission statement); its scope is clearly
expanding, from mostly consumer electronics into health, medicine and biotechnology; and
Samsung believes its competitive advantages lie in new technologies, innovative products,
creative solutions and the brightest talent in the world.
Utrecht University is clear about its mission (‘educate young people … address social issues’,
etc.) and adds some specific quantified targets (retain third place, etc.); its scope is equally
education, research, research training and addressing social issues; and its capabilities and
advantages (over some rivals at least) lie in its University-wide education model, its Summer
School and so on.
On the face of it, there is not much difference between Samsung and Utrecht: strategy
statements – and strategy – are relevant to both private and public sectors. However, you
might notice that Samsung features a financial goal (revenues), whereas Utrecht prioritises a
quality goal (the highest number of programmes rated good or excellent).
It might be worthwhile challenging the claims to competitive advantage of both Samsung
and Utrecht. How unique are Samsung’s competitive advantages (vis-à-vis Apple or HTC)?
Does Utrecht have very substantial competitive advantages over many other universities
internationally (for instance, your own!)? Here, one could refer forward to Chapter 3, and its
discussion of valuable, rare, inimitable and non-substitutable resources.
2. Construct a strategy statement for your own organisation (university, sports club or
employer). What implications might this statement have for your particular course or
department?
Strategy statements for students’ own organisations. This may well surface the fact that
some provide more public information than others, and are often vaguer about particular
issues, especially sources of competitive advantage. You might encourage students to
discuss the reasons for this. Clear statements of detailed strategy – competitive advantage,
precise objectives and so on – are rather more difficult to construct than broad claims about
where organisations want to go. Asking students why they think this is the case that should
surface issues of the complexity of strategy development, competition and accountability.
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Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy, 10 edition,
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Illustration 1.3
Strategists
This illustration is intended to reinforce the theme that strategy is something that students could
get involved in personally – as a middle manager (Galina), as in some sense a strategic planner
(Masoud) or as a strategy consultant (Chantal). All of these roles are further discussed in
Chapter 15.
The two questions ask students to think about strategy in relation to their own education and
careers. The references at the end of the chapter point them to the major consulting firms’ websites
and graduate employment website www.vault.com, all of which have an abundance of interesting
and attractive material relating to strategy consulting in particular.
The three strategists also usefully raise concepts and techniques that appear later in the book. You
might like to note particularly how Galina raises issues to do with the role of strategic planning
versus emergence (Chapter 12) and Masoud talks about the importance of operations and delivery.
Video assignment
The British Heart Foundation is a large UK charity focused on research into coronary heart
disease. It was founded in 1961 by a group of medical professionals wanting to fund extra
research into the causes, diagnosis, treatment and prevention of heart and circulatory disease. In
2012, the BHF raised over £128m to fund its activities. The BHF not only funds a high proportion
of the UK’s research into cardiovascular disease (over 50%), but also undertakes a lot of
education and care activity. Peter Hollins is the Chief Executive who, as the video says, is
responsible for the strategy and its delivery on behalf of the BHF trustees and the stakeholders.
1. Section 1.2.3 gives a clear summary of what is meant by a strategy statement – it should
have three main themes: the fundamental goals (mission, vision or objectives) that the
organisation seeks; the scope or domain of the organisation’s activities; and the particular
advantages or capabilities it has to deliver all of these. Students will have their own ideas on
how to construct this statement – it probably works best if you let them have a go at this
without much prior discussion or research and then discuss the outcomes. However, if the
students are given time to research the subject there is plenty of relevant material on the
BHF website (http://www.bhf.org.uk/pdf/BHF%20Report%20and%20Accounts%202012).
Our vision is a world in which people do not die prematurely of heart disease.
Our mission is to play a leading role in the fight against disease of the heart and circulation
so that it is no longer a major cause of disability and premature death.
Our objectives are:
• To pioneer research into the causes of heart disease and improved methods of
prevention, diagnosis and treatment
• To provide vital information to help people reduce their heart health risk
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Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy, 10 edition,
Instructor’s Manual on the Web
• To help attain the highest possible standards of care and support for heart patients
• To reduce the inequalities in levels of heart disease across the UK
• To press for government policies that minimise the risk of heart and circulatory disease.
The scope of BHF’s activities are clearly defined and limited by its charitable status – it is
primarily focused on research into one set of related diseases and its activities are limited to
the UK (although of course the benefits of research can be global).
The BHF has distinct capabilities that arise from its pre-eminent position as a well established
charity (over 50 years) and its links with the top cardiovascular physicians in the UK. Its
trustees and council members represent the best doctors in the field.
2. Figure 1.3 shows the Exploring Strategy model which is the framework on which the whole
textbook is founded so it is useful to make sure students are familiar with its elements. A
useful approach is to take each element of the model (or selected elements if time is short)
and give relevant examples from BHF to illustrate the point. For example, the changes in
the economic environment (recession) create opportunities and threats for the BHF – as
Peter Hollins says recession can hit the amount raised in fundraising activities but provides
opportunities in the retail sector (more customers in their charity shops and better deals on
rents). A crucial part of strategy choice for the BHF is how best to invest the funds it raises.
In 2012, the BHF spent 71% of its funds on research and 29% on prevention and care –
including a high profile advertising campaign with the footballer Vinnie Jones which some
students may remember. The BHF wants to avoid plugging holes from a shortfall in
Government funding of research whilst at the same time supporting its fundamental
mission. It should be possible to introduce the idea of multiple stakeholders at this point and
engage in a discussion of multiple objectives and constraints. If time permits discuss some
issues around putting strategies into action – an aspect of the CEO’s job that Peter Hollins is
well aware of. The annual report gives a full account of the work that the BHF did in
meeting its objectives and how they did it.
Assignment 1.1
Strategy statements
The purpose of this assignment is to get students to engage with strategy in real organisations.
These could be their own university or – better, in order to get a range – their actual employer or a
desired employer. Students should be told to expect that the extent of information is likely to be
variable. Students could be asked to ponder why some organisations are more informative than
others. Published strategy information is often particularly deficient in two areas:
• Details with regard to objectives: vision and mission statements are common. However,
organisations are often reluctant to reveal much about their detailed objectives both for fear
of giving clues about their precise strategy to competitors and because they do not wish to
be held tightly accountable should they fall short.
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It is useful to encourage students to be critical of the strategy information that is made available
publicly. You might also alert them to the varying ways that organisations use the same term
(e.g. vision and mission) in practice. Students ought to be aware of how strategy concepts often
depart from the textbook in the real world.
Assignment 1.2
This assignment requires students to use Figure 1.3 as a guide to identifying the different elements
in the strategy of an organisation. It can be very useful in terms of highlighting the scope of the
subject and the organisation of the book.
The Lego case in the case section of the book is designed for this exercise and the teaching
notes for the case studies later in this manual provide a guide to its use. Using the student’s own
university would be the basis for a more substantial piece of work, but would also reinforce the
theme that strategy is close to home, and relates to the students’ own lives. Likewise, a desired
future employer would be an engaging assignment.
It might be helpful to provide students with a ‘blank’ version of the three circle model for them
to fill in themselves.
Assignment 1.3
Strategy consultants
Assignment 1.4
The aim of Assignment 1.4 is to help students understand that the elements of strategic
management shown in Figure 1.3 are likely to differ somewhat between different types of
organisation. This is raised in Illustration 1.2 of the text (Samsung and Utrecht University).
Students should be able to see differences in different contexts. Try to get them to consider this
in terms of specific organisations they know; or from articles in the press on businesses and
business problems; or from the case section of the book as suggested below. Some of the
differences which should be identified might be the following:
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A small business is typically heavily influenced by an individual (e.g. owner) or small group, so
understanding the values and views of such stakeholders is vital. However, typically small firms
also face important strategic choices about the basis on which they compete (e.g. should they seek
particular market niches?), how they configure scarce resources and maintain flexibility in
strategic response. It can be useful to ask students to consider how these issues might change as
businesses grow.
The complexity of a multinational business such as Vodafone or SABMiller will mean that global
logistics and structure and control are important. However, the students should also see that other
elements of strategy are also there; both organisations have portfolio strategic choices to make;
they have had to integrate after mergers and manage disposals; they face differences of culture
between parts of the company and in different countries; and need to determine ways to control
their operations across the world.
The influences on strategy in a public sector organisation require the student to recognise the
nature of public control and influence. A wide range of stakeholders is likely to be important in
both the public sector and not-for-profits. Determining and planning the allocation of resources
in a context in which different stakeholders have significant influence is a major issue, as in
both Aids Alliance and Queensland Rail.
Overall, students should understand that all the elements of strategic management are important
in most organisations; but that the weighting between these elements may differ.
Case Example
This case is based on an entertainment area where many students will feel comfortable in having
some knowledge. Yet, they are unlikely to have considered the strategic implications that
pervade such an area. Below, these notes address the specific questions highlighted in the case
example. However, it’s worth considering some interesting features of the case that offer
opportunities for wider discussion. Firstly, note that this case is driven by cultural events that,
unlike typical consumer goods, have a short shelf life and ought to be broadly seen as services.
Secondly, the case focuses on more recent activity in this market but highlights some of the
history of the event. Naturally, the strategic environment varies across the period and students
may find this change across time slightly distracting. However, as particularly in Chapter 4, the
repercussions of organisational history are a strong theme in Exploring Strategy. Thirdly, this
case raises interesting issues about corporate purpose and sustainability that will be important to
young managers in the future. In other words, whilst some seek profit, others seek to conserve
the resources of the planet or be fair to its people: again, these are themes in Chapter 4. Finally,
2012 sees the festival at something of a crossroads in that it has lost the operational support
from Festival Republic that originally helped rescue them from fundamental problems.
Although this might diminish the corporate image that some have criticised, and gives the
festival independence in terms of choice of future direction, Glastonbury may be short of key
capabilities. All these issues are areas that might be explored with students as a pointer to key
areas for their own strategic management, i.e. increasing importance of services, rapidly changing
environments, sustainable development and the importance of strategic choice.
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1. Sticking to the 35 word limit suggested by Collis and Rukstad in Section 1.2.3, what
strategy statement would you propose for the Glastonbury Festival?
Strategy statement
Consideration of Section 1.2.3 reveals the following points of discussion:
• In terms of the goals of Glastonbury, these are clearly stated at the outset in the sense of a
‘social mission’, reflected in continuing support of Greenpeace, Oxfam and similar.
However, it is worth considering their recent complex relationship with corporate
sponsors and the Mean Fiddler/Festival Republic.
• The scope of Glastonbury’s activity has clearly changed in operational terms, reflected
in their name as a Festival for Contemporary Performing Arts, including circus and
poetry. Geographically, it remains bounded by the Glastonbury location (though an
international audience might be seen as an untapped opportunity).
• Their advantage may be their position as one of the most varied and high-quality
festival experiences, or, their place as an ‘iconic’ event. It is worth asking students to
consider pricing data relative to competitors and over time (Table 1 and Figure 1) for
what they may about the strength of their competitive advantage.
2. Carry out a ‘three-horizons’ analysis (Section 1.2.1) of the Glastonbury Festival, in terms of
both existing activities and possible future ones. How might this analysis affect its future
strategic direction?
‘Three horizons’ analysis
Consideration of Section 1.2.1 reveals the following points of discussion:
• It might be claimed that Glastonbury has been short sighted and purely focused on the
first horizon of core arts activities. The recent dropping of Festival Republic might even
suggest a narrowing of already slender horizons.
• Other festival organisers (e.g. Live Nation) have been more focused on the second
horizon, with a portfolio events and ticketing included in their approach. Notice how
some of the festivals in the figure are gaining scale economies by operating across two
sites on the same festival dates.
• A third horizon encompassing wider aspects of entertainment might be considered too,
for example, various kinds of media for transmitting the contemporary performing arts.
3. Using the headings of environment, strategic capability, strategic purpose and culture seen
in Section 1.3.1, identify key positioning issues for the Glastonbury Festival and consider
their relative importance.
Environment, strategic capability, strategic purpose and culture
Consideration of Section 1.3.1 reveals the following points of discussion:
• A wide range of environment issues emerge with opportunities such as sponsorship and
threats such as increased competitors.
• Issues such as the increasing legislation around events show how a threat to
Glastonbury becomes an opportunity for one of its partners.
• Glastonbury seems to have some excellent resources but has needed others (e.g. Festival
Republic) to fully develop capability.
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Johnson, Whittington, Scholes, Angwin and Regnér, Exploring Strategy, 10 edition,
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4. Following on from the previous questions and making use of Section 1.3.2, what alternative
strategies do you see for the Glastonbury Festival?
Alternative strategies
Consideration of Section 1.3.2 reveals the following points of discussion:
• The case starts to question Glastonbury’s ability to be different in the face of wide
ranging competition.
• Leveraging the brand to create other festivals outside of the UK might be considered.
• Diversification into other products such as merchandise, recordings, artist management,
broadcasting, etc. might be discussed.
• As Glastonbury is no longer part of a festival portfolio, the elements above become
even more important.
5. Converting good strategic thinking into action can be a challenge: examine how the
Glastonbury Festival has achieved this by considering the elements seen in Section 1.3.3?
Strategic thinking into action
Consideration of Section 1.3.3 reveals the following points of discussion:
• Evaluation of the strategic options from above should reveal a number that is suitable,
acceptable and feasible.
• Yet, their future strategic direction cannot be developed without the cooperation of
others.
• Glastonbury itself appears to be very reactive and their strategy is emergent.
• Though he appears to be a figurehead for Glastonbury, it is clear that leadership and
change management may not come from Michael Eavis but be driven from elsewhere
within the family.
• All in all, the case shows that being large and successful is not all that is involved in
strategy – for the Eavis family, social issues, artistic integrity, legacy and control are
important too.
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Another Random Document on
Scribd Without Any Related Topics
The Project Gutenberg eBook of One Touch of
Nature: A Petite Drama, in One Act
This ebook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this ebook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.
Language: English
In One Act,
BY
CORRECTLY PRINTED FROM THE PROMPTER’S COPY, WITH THE CAST OF CHARACTERS, SCENIC
ARRANGEMENT, SIDES OF ENTRANCE AND EXIT, AND RELATIVE POSITIONS OF THE DRAMATIS PERSONÆ.
WEBSTER AND CO., 411, STRAND; W. S. JOHNSON, “NASSAU STEAM PRESS,” 60,
ST. MARTIN’S LANE; MESSRS. PIPER AND CO., PATERNOSTER ROW; VICKERS
AND BERGER, HOLYWELL STREET; ALLEN, WARWICK LANE; JOHN HEYWOOD,
MANCHESTER; WISEHEART, SUFFOLK STREET, DUBLIN; SUTHERLAND AND
CO., EDINBURGH; PETRIDGE, BOSTON, U.S.; AND ALL BOOKSELLERS.
“Nassau Steam Press”—W. S. Johnson, 60, St. Martin’s Lane, Charing Cross, W.C.
Dramatis Personæ.
ACT I.
SCENE I.—Mr. Beaumont Fletcher’s chambers in the Adelphi,
handsomely furnished, doors R., L., and C. JONES discovered.
Jones (writing). To address the lady’s-maid of a marchioness is no
trifling affair, especially in the present march of intellect, when the
maids know more than the mistresses. One’s obliged not only to
mind one’s stops, but one’s grammar. I have been nearly three-
quarters of an hour now trying to round a period—I, who French-
polish the boots of a dramatic author. Ought I to put “I was smitten,”
or “I was struck with your charms?”—it’s very embarrassing—I must
consult Mr. Fletcher. In my letter I must inclose the order he
promised to procure for me; but if, with the order, I cannot conclude
my letter——
Fle. The devil take the theatre, and all the actresses into the
bargain!
Jones. Has the rehearsal been unsatisfactory, sir?
Fle. This Miss Constance Belmour! this Miss Constance Belmour!
Jones. Sir!
Fle. Is it talent or is it temper?
Jones. Sir!
Fle. She was execrable.
Jones. Did you think, sir—
Fle. Hey! what? What do you say?
Jones. I was going to ask, sir, if you thought of the order?
Fle. What order?
Jones. The order, sir, that I asked you for this morning, for the
lady’s-maid of a marchioness, whom I met at Cremorne. I suppose
you forgot it, sir?
Fle. Oh! I had other matters to attend to.
Jones. Of course, sir; of course. Then I’ll go myself, sir—in your
name, sir, I’m sure to get it sir, as you write in the newspapers. Only,
sir, if you should want me, sir, you will please to recollect that I am
obliged to go out.
Fle. Not one word of her part—not one, and the piece is to come
out on Wednesday. It’s enough to drive one mad.
Jones. I have always said, sir, that you have never been done
justice to, sir; yet you will persist in writing for these second-rate
theatres. If I was you, sir, I would not write again till government
built a legitimate theatre for scenery.
Fle. That’s your opinion, is it?
Jones. Yes, sir, and it’s the opinion of Miss Penelope, too.
Fle. And who’s Miss Penelope?
Jones. The lady’s-maid I mentioned just now, sir. When I told her
your profession, sir, she immediately asked if you authorised the
legitimate drama.
Fle. And you replied——
Jones. I blushed, sir, and answered that you did not, but that you
intended to do so.
Fle. You did right, Jones. In future I will write only blank verse,
and you shall blush no more.
Jones. If you will permit, sir, I will give you a subject.
Fle. Well, let us see what it is.
Jones. Would it not be something new and original to work up a
servant whose sentiments are above his situation?
[Bell rings.
Fle. Some one rang.
Jones. I’ll attend to it, sir.
Fle. Go, then. (aside) What a life! what a life!
Jones. (returning) Oh, sir!
Fle. Still here?
Jones. “I’m struck with your charms”—is it refined English?
Fle. (bell rings) Attend to the bell.
Jones. (returning) Is it more refined—“I am smitten with your
charms?” (bell rings violently.)
Fle. Devil take it, they’ll pull the bell down.
Jones. I’m going, sir! (aside.) Shall I put smitten or struck? I must
toss up for it, heads or tails.
[Exit door, C.
Fle. If I allow this woman to play the part, she’ll ruin the piece.
Enter BELGRAVE, C.
Bel. Good morning. Do you take me for a man that can be easily
imposed on? No; can’t humbug me!
Fle. What do you mean? (coldly) I’m delighted to see you.
Bel. This explains the promptitude with which I was admitted.
Fle. (satirically) By-the-bye, you have come most opportunely. I
have to thank you for persuading me to confide an important
character to Miss Constance Belmour—that was a grand idea of
yours.
Bel. Capital, was it not?
Fle. (satirically) I was charmed with her at rehearsal just now.
Luckily I can undo what is done. I mean to take the part away from
her.
Bel. A brilliant idea that, I must confess, and any one but me
would let you follow your bent.
Fle. What do you say?
Bel. It is useless to disguise matters. I know all. Can’t humbug
me.
Fle. What do you know?
Bel. All! (showing bouquet.) Here is your bouquet, returned like a
dishonest bill—no effects.
Fle. My bouquet?
Bel. Do you deny that you sent these flowers to Constance?
Fle. I’m in a nice humour to send her flowers. I am going to write
to her.
Bel. To anyone else you please, but not to her; this rage is all
moonshine. Can’t humbug me!
Fle. Moonshine is it?
Bel. You are in love with Constance, and you would have us
believe you intend taking this part from her and lose by the change.
Fle. I will soon prove that.
Bel. I am not a man to be easily imposed on. Can’t humbug me!
Fle. This is folly. It was not I who sent the bouquet.
Bel. Not you?
Fle. On my honour!
Bel. Then I will find out if I go to every flower-shop in London.
Fle. Do, my good fellow, do.
Bel. I will, depend on it. I will not rest until I have discovered the
truth. I will know who sent this bouquet. Adieu. I am not a man to
be easily imposed on. Can’t humbug me!
[Exit C.
Fle. Now there goes a man determined to make himself miserable.
To win Constance from him would be no very difficult task. The day
before yesterday I spoke to her, she was not at all coy, and when I
took her hand in mine——it is true that this act of sensibility has
borne its fruits. Till then her rehearsing was very so so. But since
she imagined I was fascinated by her coquetry, she has not
rehearsed at all. Love is evidently no friend of mine. Once a man
gets his legs entangled in the steel traps of a crinoline it’s all over
with him. So I’ll pluck up resolution, and inform this popular lady
that I will relieve her from the part. (Writes.) “My dear young lady.”
Hum! It is rather difficult to write disagreeably to a woman whose
hand you have pressed in yours but two days since. “My dear.” (A
rap at door C.) Come in. (Rap repeated.) Come in.
Enter HOLDER, C.