Concepts in strategic management and business policy: globalization, innovation, and sustainability

Cover......Page 1
Title Page......Page 4
Copyright Page......Page 5
Dedication Page......Page 6
Brief Contents......Page 8
Contents......Page 10
Preface......Page 18
About the Authors......Page 26
Part One: Introduction to Strategic Management and Business Policy......Page 32
 Chapter 1 Basic Concepts of Strategic Management......Page 33
   Phases of Strategic Management......Page 36
   Benefits of Strategic Management......Page 37
  Globalization, Innovation, and Sustainability: Challenges to Strategic Management......Page 38
   Impact of Globalization......Page 39
   Impact of Innovation......Page 40
   Impact of Sustainability......Page 41
  Creating a Learning Organization......Page 43
   Environmental Scanning......Page 45
   Strategy Formulation......Page 47
   Strategy Implementation......Page 51
   Evaluation and Control......Page 52
   Initiation of Strategy: Triggering Events......Page 53
   What Makes a Decision Strategic?......Page 54
   Mintzberg’s Modes of Strategic Decision Making......Page 55
   Strategic Decision-making Process: Aid to Better Decisions......Page 56
  The Strategic Audit: Aid to Strategic Decision Making......Page 57
   End of Chapter Summary......Page 58
  Appendix 1.A Strategic Audit of a Corporation......Page 63
 Chapter 2 Corporate Governance......Page 71
  Role of the Board of Directors......Page 74
   Responsibilities of the Board......Page 75
  Board of Directors Composition......Page 78
   Innovation Issue: Jcpenney and Innovation......Page 79
   Strategy Highlight: Agency Theory Versus Stewardship Theory in Corporate Governance......Page 80
   Nomination and Election of Board Members......Page 84
   Organization of the Board......Page 85
  Impact of Sarbanes-Oxley on U.S. Corporate Governance......Page 86
   Global Issue: Global Business Board Activism at Yahoo!......Page 87
   Evaluating Governance......Page 88
  Trends in Corporate Governance......Page 89
  The Role of Top Management......Page 90
   Sustainability Issue: Ceo Pay and Corporate Performance......Page 91
   End of Chapter Summary......Page 94
 Chapter 3 Social Responsibility and Ethics in Strategic Management......Page 101
   Responsibilities of a Business Firm......Page 103
  Sustainability......Page 106
   Corporate Stakeholders......Page 107
  Stakeholder Analysis......Page 108
  Ethical Decision Making......Page 110
   Some Reasons for Unethical Behavior......Page 111
   Global Issue: How Rule-Based and Relationship-Based Governance Systems Affect Ethical Behavior......Page 112
   Innovation Issue: Turning a Need into a Business to Solve the Need......Page 114
   Encouraging Ethical Behavior......Page 115
  Views on Ethical Behavior......Page 116
   End of Chapter Summary......Page 118
Part Two: Scanning the Environment......Page 122
 Chapter 4 Environmental Scanning and Industry Analysis......Page 123
  Aspects of Environmental Scanning......Page 125
   Identifying External Environmental Variables......Page 126
   Sustainability Issue: Green Supercars......Page 127
   Scanning the Societal Environment: Steep Analysis......Page 128
   Global Issue: SUVS Power on in China......Page 136
  Industry Analysis: Analyzing the Task Environment......Page 138
   Porter’s Approach to Industry Analysis......Page 139
  Categorizing International Industries......Page 143
   Innovation Issue: Taking Stock of an Obsession......Page 144
   Strategic Groups......Page 145
   Strategic Types......Page 146
   Hypercompetition......Page 147
  Using Key Success Factors to Create an Industry Matrix......Page 148
  Competitive Intelligence......Page 149
   Sources of Competitive Intelligence......Page 150
   Strategy Highlight Evaluating Competitive Intelligence......Page 151
   Monitoring Competitors for Strategic Planning......Page 152
   Useful Forecasting Techniques......Page 153
  Synthesis of External Factors......Page 155
   End of Chapter Summary......Page 157
 Chapter 5 Organizational Analysis and Competitive Advantage......Page 163
   Core and Distinctive Competencies......Page 165
   Using Resources/Capabilities to Gain Competitive Advantage......Page 168
  Business Models......Page 169
   Industry Value-Chain Analysis......Page 171
   Corporate Value-Chain Analysis......Page 173
  Basic Organizational Structures......Page 174
  Culture......Page 176
   Strategic Marketing Issues......Page 178
   Innovation Issue: Docomo Moves Against the Grain......Page 180
   Strategic Financial Issues......Page 181
   Strategic Research and Development (R&D) Issues......Page 182
   Strategic Operations Issues......Page 184
   Strategic Human Resource Management (HRM) Issues......Page 186
   Strategic Information Systems/Technology Issues......Page 188
   Sustainability Issue: The Olympic Games—London 2012/Sochi 2014/Rio 2016 & Tokyo 2020......Page 189
   Synthesis of Internal Factors (IFAS)......Page 191
   End of Chapter Summary......Page 193
Part Three: Strategy Formulation......Page 198
 Chapter 6 Strategy Formulation: Business Strategy......Page 199
  A Framework for Examining Business Strategy......Page 201
   Generating a Strategic Factors Analysis Summary (SFAS) Matrix......Page 202
   Finding Market Niches......Page 204
  Mission and Objectives......Page 205
   Porter’s Competitive Strategies......Page 206
   Global Issue: Has Emirates Reached the Limit of Globalization?......Page 208
   Innovation Issue: Chegg and College Textbooks......Page 211
   Sustainability Issue: Strategic Sustainability—ESPN......Page 213
   Cooperative Strategies......Page 214
  Strategic Alliances......Page 215
   End of Chapter Summary......Page 219
 Chapter 7 Strategy Formulation: Corporate Strategy......Page 223
  Directional Strategy......Page 225
  Growth Strategies......Page 226
   Strategy Highlight: Transaction Cost Economics Analyzes Vertical Growth Strategy......Page 229
   Global Issue: Global Expansion is not Always a Path to Growth......Page 231
   Controversies in Directional Growth Strategies......Page 232
   Stability Strategies......Page 233
   Retrenchment Strategies......Page 234
  Portfolio Analysis......Page 236
   BCG Growth-Share Matrix......Page 237
   Sustainability Issue: General Motors and the Electric Car......Page 239
   Managing a Strategic Alliance Portfolio......Page 240
  Corporate Parenting......Page 241
   Innovation Issue: To Red Hat or Not?......Page 242
   Horizontal Strategy and Multipoint Competition......Page 243
   End of Chapter Summary......Page 244
 Chapter 8 Strategy Formulation: Functional Strategy and Strategic Choice......Page 249
   Marketing Strategy......Page 251
   Financial Strategy......Page 253
   Research and Development (R&D) Strategy ......Page 254
   Operations Strategy......Page 255
   Global Issue: Why is Starbucks Afraid of Italy?......Page 256
   Purchasing Strategy......Page 257
   Sustainability Issue: How Hot is Hot?......Page 258
   Innovation Issue: When an Innovation Fails to Live Up to Expectations......Page 259
   Human Resource Management (hrm) Strategy......Page 260
  The Sourcing Decision: Location of Functions......Page 261
  Strategic Choice: Constructing Scenarios......Page 264
   Constructing Corporate Scenarios......Page 265
   The Process of Strategic Choice......Page 270
   End of Chapter Summary......Page 272
Part Four: Strategy Implementation and Control......Page 278
 Chapter 9 Strategy Implementation: Global Strategy......Page 279
  International Entry......Page 281
  International Coordination......Page 283
  Stages of International Development......Page 284
  International Employment......Page 285
  Measurement of Performance......Page 287
   End of Chapter Summary......Page 289
 Chapter 10 Strategy Implementation: Organizing and Structure......Page 293
  Strategy Implementation......Page 295
   Developing Programs, Budgets, and Procedures......Page 296
   Sustainability Issue: a Better Bottle—ecologic Brands......Page 297
   Achieving Synergy......Page 301
   Structure Follows Strategy......Page 302
   Stages of Corporate Development......Page 303
   Innovation Issue: the P&g Innovation Machine Stumbles......Page 304
   Organizational Life Cycle......Page 308
   The Matrix Structure......Page 309
   Network Structure—The Virtual Organization......Page 311
   Global Issue: Outsourcing Comes Full Circle......Page 312
  Reengineering and Strategy Implementation......Page 313
   Six Sigma......Page 314
   Designing Jobs to Implement Strategy......Page 315
   Centralization Versus Decentralization......Page 316
   End of Chapter Summary......Page 317
 Chapter 11 Strategy Implementation: Staffing and Directing......Page 323
  Staffing......Page 325
   Staffing Follows Strategy......Page 326
   Innovation Issue: How to Keep Apple “Cool”......Page 328
   Problems in Retrenchment......Page 330
   Managing Corporate Culture......Page 332
   Sustainability Issue: Panera and the “panera Cares Community Café”......Page 333
  Action Planning......Page 337
   Management by Objectives......Page 339
   Total Quality Management......Page 340
   End of Chapter Summary......Page 341
 Chapter 12 Evaluation and Control......Page 347
   Appropriate Measures......Page 349
   Types of Controls......Page 350
   Innovation Issue: Solar Power and the Grid......Page 351
   Activity-Based Costing......Page 352
   Primary Measures of Corporate Performance......Page 353
   Sustainability Issue: The End of the Cash Register Receipt......Page 356
  Balanced Scorecard Approach: Using Key Performance Measures......Page 357
   Responsibility Centers......Page 359
  Using Benchmarking to Evaluate Performance......Page 361
  Strategic Information Systems......Page 362
   Radio Frequency Identification and Near Field Communication......Page 363
  Problems in Measuring Performance......Page 364
   Short-Term Orientation......Page 365
   Goal Displacement......Page 366
   Guidelines for Proper Control......Page 367
   Aligning Incentives......Page 368
   End of Chapter Summary......Page 370
Part Five: Introduction to Case Analysis......Page 376
 Chapter 13 Suggestions for Case Analysis......Page 377
  Researching the Case Situation......Page 379
   Analyzing Financial Statements......Page 380
   Z-Value and the Index of Sustainable Growth......Page 384
  Format for Case Analysis: The Strategic Audit......Page 385
   End of Chapter Summary......Page 388
  Appendix 13.A Resources for Case Research......Page 390
  Appendix 13.B Suggested Case Analysis Methodology Using the Strategic Audit......Page 392
  Appendix 13.C Example of Student-Written Strategic Audit......Page 395
Glossary......Page 404
Name Index......Page 416
Subject Index......Page 421