Part IV (Chapters 8–12) examines the nature of strategic behaviour and various decision-making tools that managers can use in determining strategy. Chapter 8 considers market structure, which forms the environmental framework within which strategic behaviour takes place. Chapter 9 examines game theory in some detail, and discusses its implications in terms of decision-making. It is stressed that many of its conclusions are counter-intuitive, but are the only way of explaining many aspects of firms' behaviour that are empirically observed. Chapters 10 and 11 consider the detailed aspects of pricing and investment strategies respectively. Finally, Chapter 12 examines government policy insofar as it impacts on managerial decision-making.