Crafting and executing strategy the quest for competitive advantage : concepts

Cover
Crafting and Executing Strategy
Dedication
About the Authors
Preface
Acknowledgements
Brief Contents
Contents
PART 1 Concepts and Techniques for Crafting and Executing Strategy
	Section A: Introduction and Overview
		1 What Is Strategy and Why Is It Important?
			WHAT DO WE MEAN BY STRATEGY?
				Strategy Is about Competing Differently
				Strategy and the Quest for Competitive Advantage
				Why a Company’s Strategy Evolves over Time
				A Company’s Strategy Is Partly Proactive and Partly Reactive
			A COMPANY’S STRATEGY AND ITS BUSINESS MODEL
			WHAT MAKES A STRATEGY A WINNER?
			WHY CRAFTING AND EXECUTING STRATEGY ARE IMPORTANT TASKS
				Good Strategy + Good Strategy Execution = Good Management
			THE ROAD AHEAD
			ILLUSTRATION CAPSULEs
				1.1 Starbucks’s Strategy in the Coffeehouse Market
				1.2 Pandora, SiriusXM, and Over-the-Air Broadcast Radio: Three Contrasting Business Models
		2 Charting a Company’s Direction: Its Vision, Mission, Objectives, and Strategy
			WHAT DOES THE STRATEGY-MAKING, STRATEGY-EXECUTING PROCESS ENTAIL?
			STAGE 1: DEVELOPING A STRATEGIC VISION, MISSION STATEMENT, AND SET OF CORE VALUES
				Developing a Strategic Vision
				Communicating the Strategic Vision
				Developing a Company Mission Statement
				Linking the Vision and Mission with Company Values
			STAGE 2: SETTING OBJECTIVES
				The Imperative of Setting Stretch Objectives
				What Kinds of Objectives to Set
				The Need for a Balanced Approach to Objective Setting
				Setting Objectives for Every Organizational Level
			STAGE 3: CRAFTING A STRATEGY
				Strategy Making Involves Managers at All Organizational Levels
				A Company’s Strategy-Making Hierarchy
				Uniting the Strategy-Making Hierarchy
				A Strategic Vision + Mission + Objectives + Strategy =A Strategic Plan
			STAGE 4: EXECUTING THE STRATEGY
			STAGE 5: EVALUATING PERFORMANCE AND INITIATING CORRECTIVE ADJUSTMENTS
			CORPORATE GOVERNANCE: THE ROLE OF THE BOARD OF DIRECTORS IN THE STRATEGY-CRAFTING, STRATEGY-EXECUTING PROCESS
			ILLUSTRATION CAPSULEs
				2.1 Examples of Strategic Visions—How Well Do They Measure Up?
				2.2 Patagonia, Inc.: A Values-Driven Company
				2.3 Examples of Company Objectives
				2.4 Corporate Governance Failures at Volkswagen
	Section B: Core Concepts and Analytical Tools
		3 Evaluating a Company’s External Environment
			THE STRATEGICALLY RELEVANT FACTORS IN THE COMPANY’S MACRO-ENVIRONMENT
			ASSESSING THE COMPANY’S INDUSTRY AND COMPETITIVE ENVIRONMENT
			THE FIVE FORCES FRAMEWORK
				Competitive Pressures Created by the Rivalry among Competing Sellers
				The Choice of Competitive Weapons
				Competitive Pressures Associated with the Threat of New Entrants
				Competitive Pressures from the Sellers of Substitute Products
				Competitive Pressures Stemming from Supplier Bargaining Power
				Competitive Pressures Stemming from Buyer Bargaining Power and Price Sensitivity
				Is the Collective Strength of the Five Competitive Forces Conducive to Good Profitability?
				Matching Company Strategy to Competitive Conditions
			COMPLEMENTORS AND THE VALUE NET
			INDUSTRY DYNAMICS AND THE FORCES DRIVING CHANGE
				Identifying the Forces Driving Industry Change
				Assessing the Impact of the Forces Driving Industry Change
				Adjusting the Strategy to Prepare for the Impacts ofDriving Forces
			STRATEGIC GROUP ANALYSIS
				Using Strategic Group Maps to Assess the Market Positions of Key Competitors
				The Value of Strategic Group Maps
			COMPETITOR ANALYSIS
			KEY SUCCESS FACTORS
			THE INDUSTRY OUTLOOK FOR PROFITABILITY
			ILLUSTRATION CAPSULEs
				3.1 Comparative Market Positions ofSelected Companies in the Casual Dining Industry: AStrategic Group Map Example
		4 Evaluating a Company’s Resources, Capabilities, and Competitiveness
			QUESTION 1: HOW WELL IS THE COMPANY’S PRESENT STRATEGY WORKING?
			QUESTION 2: WHAT ARE THE COMPANY’S Most IMPORTANT RESOURCES AND CAPABILITIES, AND WILL THEY GIVE THE COMPANY A LASTING COMPETITIVE ADVANTAGE OVER RIVAL COMPANIES?
				Identifying the Company’s Resources and Capabilities
				Assessing the Competitive Power of a Company’s Resources and Capabilities
			QUESTION 3: WHAT ARE THE COMPANY’S STRENGTHS AND WEAKNESSES IN RELATION TO THE MARKET OPPORTUNITIES AND EXTERNAL THREATS?
				Identifying a Company’s Internal Strengths
				Identifying Company Weaknesses and Competitive Deficiencies
				Identifying a Company’s Market Opportunities
				Identifying the Threats to a Company’s Future Profitability
				What Do the SWOT Listings Reveal?
			QUESTION 4: HOW DO A COMPANY’S VALUE CHAIN ACTIVITIES IMPACT ITS COST STRUCTURE AND CUSTOMER VALUE PROPOSITION?
				The Concept of a Company Value Chain
				The Value Chain System
				Benchmarking: A Tool for Assessing Whether the Costs and Effectiveness of a Company’s Value Chain Activities Are in Line
				Strategic Options for Remedying a Cost or Value Disadvantage
				Translating Proficient Performance of Value Chain Activities into Competitive Advantage
			QUESTION 5: IS THE COMPANY COMPETITIVELY STRONGER OR WEAKER THAN KEY RIVALS?
				Strategic Implications of Competitive Strength Assessments
			QUESTION 6: WHAT STRATEGIC ISSUES AND PROBLEMS MERIT FRONT-BURNER MANAGERIAL ATTENTION?
				4.1 The Value Chain for Boll & Branch
				4.2 Delivered-Cost Benchmarking in the Cement Industry
	Section C: Crafting a Strategy
		5 The Five Generic Competitive Strategies
			TYPES OF GENERIC COMPETITIVE STRATEGIES
			LOW-COST PROVIDER STRATEGIES
				The Two Major Avenues for Achieving a Cost Advantage
				The Keys to Being a Successful Low-Cost Provider
				When a Low-Cost Provider Strategy Works Best
				Pitfalls to Avoid in Pursuing a Low-Cost Provider Strategy
			BROAD DIFFERENTIATION STRATEGIES
				Managing the Value Chain to Create the Differentiating Attributes
				Delivering Superior Value via a Broad Differentiation Strategy
				When a Differentiation Strategy Works Best
				Pitfalls to Avoid in Pursuing a Differentiation Strategy
			FOCUSED (OR MARKET NICHE) STRATEGIES
				A Focused Low-Cost Strategy
				A Focused Differentiation Strategy
				When a Focused Low-Cost or Focused DifferentiationStrategy Is Attractive
				The Risks of a Focused Low-Cost or Focused Differentiation Strategy
			BEST-COST PROVIDER STRATEGIES
				When a Best-Cost Provider Strategy Works Best
				The Risk of a Best-Cost Provider Strategy
			THE CONTRASTING FEATURES OF THE FIVE GENERIC COMPETITIVE STRATEGIES:A SUMMARY
				Successful Competitive Strategies Are Resource-Based
			ILLUSTRATION CAPSULEs
				5.1 Amazon’s Path to Becoming the Low-Cost Provider in E-commerce
				5.2 Clinícas del Azúcar’s Focused Low-Cost Strategy
				5.3 Canada Goose’s Focused Differentiation Strategy
				5.4 American Giant’s Best-Cost Provider Strategy
		6 Strengthening a Company’s Competitive Position: Strategic Moves, Timing, and Scope of Operations
			LAUNCHING STRATEGIC OFFENSIVES TO IMPROVE A COMPANY’S MARKET POSITION
				Choosing the Basis for Competitive Attack
				Choosing Which Rivals to Attack
				Blue-Ocean Strategy—a Special Kind of Offensive
			DEFENSIVE STRATEGIES—PROTECTING MARKET POSITION AND COMPETITIVE ADVANTAGE
				Blocking the Avenues Open to Challengers
				Signaling Challengers That Retaliation Is Likely
			TIMING A COMPANY’S STRATEGIC MOVES
				The Potential for First-Mover Advantages
				The Potential for Late-Mover Advantages or First-Mover Disadvantages
				To Be a First Mover or Not
			STRENGTHENING A COMPANY’S MARKET POSITION VIA ITS SCOPE OF OPERATIONS
			HORIZONTAL MERGER AND ACQUISITION STRATEGIES
				Why Mergers and Acquisitions Sometimes Fail toProduce Anticipated Results
			VERTICAL INTEGRATION STRATEGIES
				The Advantages of a Vertical Integration Strategy
				The Disadvantages of a Vertical Integration Strategy
				Weighing the Pros and Cons of Vertical Integration
			OUTSOURCING STRATEGIES: NARROWING THE SCOPE OF OPERATIONS
				The Risk of Outsourcing Value Chain Activities
			STRATEGIC ALLIANCES AND PARTNERSHIPS
				Capturing the Benefits of Strategic Alliances
				The Drawbacks of Strategic Alliances and Partnerships
				How to Make Strategic Alliances Work
			ILLUSTRATION CAPSULEs
				6.1 Bonobos’s Blue-Ocean Strategy in the U.S. Men’s Fashion Retail Industry
				6.2 Uber’s First-Mover Advantage in Mobile Ride-Hailing Services
				6.3 Bristol-Myers Squibb’s “String-of-Pearls” Horizontal Acquisition Strategy
				6.4 Kaiser Permanente’s Vertical Integration Strategy
		7 Strategies for Competing in International Markets
			WHY COMPANIES DECIDE TO ENTER FOREIGN MARKETS
			WHY COMPETING ACROSS NATIONAL BORDERS MAKES STRATEGY MAKING MORE COMPLEX
				Home-Country Industry Advantages and the Diamond Model
				Opportunities for Location-Based Advantages
				The Impact of Government Policies and Economic Conditions in Host Countries
				The Risks of Adverse Exchange Rate Shifts
				Cross-Country Differences in Demographic, Cultural, and Market Conditions
			STRATEGIC OPTIONS FOR ENTERING INTERNATIONAL MARKETS
				Export Strategies
				Licensing Strategies
				Franchising Strategies
				Foreign Subsidiary Strategies
				Alliance and Joint Venture Strategies
			INTERNATIONAL STRATEGY: THE THREE MAIN APPROACHES
				Multidomestic Strategies—a “Think-Local, Act-Local” Approach
				Global Strategies—a “Think-Global, Act-Global” Approach
				Transnational Strategies—a “Think-Global, Act-Local” Approach
			INTERNATIONAL OPERATIONS AND THE QUEST FOR COMPETITIVE ADVANTAGE
				Using Location to Build Competitive Advantage
				Sharing and Transferring Resources and Capabilities across Borders to Build Competitive Advantage
				Benefiting from Cross-Border Coordination
			CROSS-BORDER STRATEGIC MOVES
				Using Profit Sanctuaries to Wage a Strategic Offensive
				Using Profit Sanctuaries to Defend against International Rivals
			STRATEGIES FOR COMPETING IN THE MARKETS OF DEVELOPING COUNTRIES
				Strategy Options for Competing in Developing-Country Markets
			DEFENDING AGAINST GLOBAL GIANTS: STRATEGIES FOR LOCAL COMPANIES IN DEVELOPING COUNTRIES
			ILLUSTRATION CAPSULEs
				7.1 Walgreens Boots Alliance, Inc.: Entering Foreign Markets via Alliance Followed by Merger
				7.2 Four Seasons Hotels: Local Character, Global Service
				7.3 How Ctrip Successfully Defended against International Rivals to Become China’s Largest Online Travel Agency
		8 Corporate Strategy: Diversification and the Multibusiness Company
			WHAT DOES CRAFTING A DIVERSIFICATION STRATEGY ENTAIL?
			WHEN TO CONSIDER DIVERSIFYING
			BUILDING SHAREHOLDER VALUE: THE ULTIMATE JUSTIFICATION FOR DIVERSIFYING
			APPROACHES TO DIVERSIFYING THE BUSINESS LINEUP
				Diversifying by Acquisition of an Existing Business
				Entering a New Line of Business through Internal Development
				Using Joint Ventures to Achieve Diversification
				Choosing a Mode of Entry
			CHOOSING THE DIVERSIFICATION PATH: RELATED VERSUS UNRELATED BUSINESSES
			DIVERSIFICATION INTO RELATED BUSINESSES
				Identifying Cross-Business Strategic Fit along the Value Chain
				Strategic Fit, Economies of Scope, and Competitive Advantage
			DIVERSIFICATION INTO UNRELATED BUSINESSES
				Building Shareholder Value via Unrelated Diversification
				The Path to Greater Shareholder Value through Unrelated Diversification
				The Drawbacks of Unrelated Diversification
				Misguided Reasons for Pursuing Unrelated Diversification
			COMBINATION RELATED–UNRELATED DIVERSIFICATION STRATEGIES
			EVALUATING THE STRATEGY OF ADIVERSIFIED COMPANY
				Step 1: Evaluating Industry Attractiveness
				Step 2: Evaluating Business Unit Competitive Strength
				Step 3: Determining the Competitive Value of Strategic Fit in Diversified Companies
				Step 4: Checking for Good Resource Fit
				Step 5: Ranking Business Units and Assigning a Priority for Resource Allocation
				Step 6: Crafting New Strategic Moves to Improve Overall Corporate Performance
			ILLUSTRATION CAPSULEs
				8.1 The Kraft–Heinz Merger: Pursuing the Benefits of Cross-Business Strategic Fit
				8.2 Restructuring for Better Performance at Hewlett-Packard (HP)
		9 Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy
			WHAT DO WE MEAN BY BUSINESS ETHICS?
			WHERE DO ETHICAL STANDARDS COME FROM—ARE THEY UNIVERSAL OR DEPENDENT ON LOCAL NORMS?
				The School of Ethical Universalism
				The School of Ethical Relativism
				Ethics and Integrative Social Contracts Theory
			HOW AND WHY ETHICAL STANDARDS IMPACT THE TASKS OF CRAFTING AND EXECUTING STRATEGY
			DRIVERS OF UNETHICAL BUSINESS STRATEGIES AND BEHAVIOR
			WHY SHOULD COMPANY STRATEGIES BE ETHICAL?
				The Moral Case for an Ethical Strategy
				The Business Case for Ethical Strategies
			STRATEGY, CORPORATE SOCIAL RESPONSIBILITY, AND ENVIRONMENTAL SUSTAINABILITY
				The Concepts of Corporate Social Responsibility and Good Corporate Citizenship
				What Do We Mean by Sustainability andSustainable Business Practices?
				Crafting Corporate Social Responsibility andSustainability Strategies
				The Moral Case for Corporate Social Responsibility and Environmentally Sustainable Business Practices
				The Business Case for Corporate Social Responsibility and Environmentally Sustainable Business Practices
			ILLUSTRATION CAPSULEs
				9.1 IKEA’s Global Supplier Standards: Maintaining Low Costs While Fighting the Root Causes of Child Labor
				9.2 How Novo Nordisk Puts Its Ethical Principles into Practice
				9.3 Warby Parker: Combining Corporate Social Responsibility with Affordable Fashion
				9.4 Unilever’s Focus on Sustainability
	Section D: Executing the Strategy
		10 Building an Organization Capable of Good Strategy Execution: People, Capabilities, and Structure
			A FRAMEWORK FOR EXECUTING STRATEGY
				The Principal Components of the Strategy Execution Process
			BUILDING AN ORGANIZATION CAPABLE OF GOOD STRATEGY EXECUTION: THREE KEY ACTIONS
			STAFFING THE ORGANIZATION
				Putting Together a Strong Management Team
				Recruiting, Training, and Retaining Capable Employees
			DEVELOPING AND BUILDING CRITICAL RESOURCES AND CAPABILITIES
				Three Approaches to Building and Strengthening Capabilities
				The Strategic Role of Employee Training
				Strategy Execution Capabilities and Competitive Advantage
			MATCHING ORGANIZATIONAL STRUCTURE TO THE STRATEGY
				Deciding Which Value Chain Activities to Perform Internally and Which to Outsource
				Aligning the Firm’s Organizational Structure with Its Strategy
				Determining How Much Authority to Delegate
				Facilitating Collaboration with External Partners and Strategic Allies
				Further Perspectives on Structuring the Work Effort
			ILLUSTRATION CAPSULEs
				10.1 Management Development at Deloitte Touche Tohmatsu Limited
				10.2 Zara’s Strategy Execution Capabilities
				10.3 Which Value Chain Activities Does Apple Outsource and Why?
		11 Managing Internal Operations: Actions That Promote Good Strategy Execution
			ALLOCATING RESOURCES TO THE STRATEGY EXECUTION EFFORT
			INSTITUTING POLICIES AND PROCEDURES THAT FACILITATE STRATEGY EXECUTION
			ADOPTING BEST PRACTICES AND EMPLOYING PROCESS MANAGEMENT TOOLS
				How the Process of Identifying and Incorporating Best Practices Works
				Business Process Reengineering, Total Quality Management, and Six Sigma Quality Programs: Tools for Promoting Operating Excellence
				Capturing the Benefits of Initiatives to Improve Operations
			INSTALLING INFORMATION AND OPERATING SYSTEMS
				Instituting Adequate Information Systems, Performance Tracking, and Controls
			USING REWARDS AND INCENTIVES TO PROMOTE BETTER STRATEGY EXECUTION
				Incentives and Motivational Practices That Facilitate Good Strategy Execution
				Striking the Right Balance between Rewards and Punishment
				Linking Rewards to Achieving the Right Outcomes
				11.1 Charleston Area Medical Center’s Six Sigma Program
				11.2 How the Best Companies to Work for Motivate and Reward Employees
				11.3 Nucor Corporation: Tying Incentives Directly to Strategy Execution
		12 Corporate Culture and Leadership: Keys to Good Strategy Execution
			INSTILLING A CORPORATE CULTURE CONDUCIVE TO GOOD STRATEGY EXECUTION
				Identifying the Key Features of a Company’s Corporate Culture
				Strong versus Weak Cultures
				Why Corporate Cultures Matter to the Strategy Execution Process
				Healthy Cultures That Aid Good Strategy Execution
				Unhealthy Cultures That Impede Good Strategy Execution
				Changing a Problem Culture
			LEADING THE STRATEGY EXECUTION PROCESS
				Staying on Top of How Well Things Are Going
				Mobilizing the Effort for Excellence in Strategy Execution
				Leading the Process of Making Corrective Adjustments
			A FINAL WORD ON LEADING THE PROCESS OF CRAFTING AND EXECUTING STRATEGY
			ILLUSTRATION CAPSULEs
				12.1 Strong Guiding Principles Drive the High-Performance Culture at Epic
				12.2 Culture Transformation at América Latina Logística
Indexes
	Company Index
	Name Index
	Subject Index