Formulation Implementation, and Control of Competitive Strategy [With Access Code for Business Week Subscription]

Cover
PART ONE OVERVIEW OF STRATEGIC MANAGEMENT
	1 Strategic Management
		The Nature and Value of Strategic Management
		Dimensions of Strategic Decisions
		Formality in Strategic Management
		Benefits of Strategic Management
		Risks of Strategic Management
		The Strategic Management Process
		Strategic Management as a Process
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: Carlyle Changes Its Stripes
PART TWO STRATEGY FORMULATION
	2 Company Mission
		What Is a Company Mission?
			The Need for an Explicit Mission
			Formulating a Mission
			Basic Product or Service; Primary Market; Principal Technology
			Company Goals: Survival; Growth; Profitability
			Company Philosophy
			Public Image
			Company Self-Concept
			Newest Trends in Mission Components
			An Exemplary Mission Statement
			Boards of Directors
			Agency Theory
			How Agency Problems Occur
			Problems That Can Result from Agency
			Solutions to the Agency Problem
			Summary
			Key Terms
			Questions for Discussion
			Discussion Case: Anger over CEO Pay Has Put Directors on the Hot Seat
			APPENDIX BB&T Vision, Mission, and Purpose
	3 Corporate Social Responsibility and Business Ethics
		The Stakeholder Approach to Social Responsibility
			The Dynamics of Social Responsibility
		Types of Social Responsibility
			Corporate Social Responsibility and Profitability
		Sarbanes-Oxley Act of 2002
			The New Corporate Governance Structure
			Privatization as a Response to Sarbanes-Oxley
			CSR’s Effect on the Mission Statement
			Social Audit
		Management Ethics
			The Nature of Ethics in Business
		Satisfying Corporate Social Responsibility
			The Core of the CSR Debate
			Mutual Advantages of Collaborative Social Initiatives
			Five Principles of Successful Collaborative Social Initiatives
			Assembling the Components
			The Limits of CSR Strategies
			The Future of CSR
			Approaches to Questions of Ethics
		Codes of Business Ethics
			Major Trends in Codes of Ethics
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: The Poverty Business 8
	4 The External Environment
		The Firm’s External Environment
		Remote Environment
			Economic Factors
			Social Factors
			Political Factors
			Technological Factors
			Ecological Factors
			International Environment
		Industry Environment
		How Competitive Forces Shape Strategy
		Contending Forces
			Threat of Entry
			Powerful Suppliers
			Powerful Buyers
			Substitute Products
			Jockeying for Position
		Industry Analysis and Competitive Analysis
			Industry Boundaries
			Industry Structure
			Competitive Analysis
		Operating Environment
			Competitive Position
			Customer Profiles
			Suppliers
			Creditors
			Human Resources: Nature of the Labor Market
		Emphasis on Environmental Factors
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: Siemens’ Culture Clash
		APPENDIX Sources for Environmental Forecasting
	5 The Global Environment
		Globalization
		Development of a Global Corporation
		Why Firms Globalize
			Strategic Orientations of Global Firms
		At the Start of Globalization
		Complexity of the Global Environment
		Control Problems of the Global Firm
		Global Strategic Planning
			Multidomestic Industries and Global Industries
			The Global Challenge
			Market Requirements and Product Characteristics
			International Strategy Options
		Competitive Strategies for Firms in Foreign Markets
			Niche Market Exporting
			Licensing and Contract Manufacturing
			Franchising
			Joint Ventures
			Foreign Branching
			Equity Investment
			Wholly Owned Subsidiaries
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: China Mobile’s Hot Signal
		APPENDIX Components of the Multinational Environment
	6 Internal Analysis
		SWOT Analysis: A Traditional Approach to Internal Analysis
			Using SWOT Analysis in Strategic Analysis
			Limitations of SWOT Analysis
		Value Chain Analysis
			Conducting a Value Chain Analysis
			Recognizing the Difficulty in Activity-Based Cost Accounting
		Resource-Based View of the Firm
			Core Competencies
			Three Basic Resources: Tangible Assets, Intangible Assets, and Organizational Capabilities
			What Makes a Resource Valuable?
			Using the Resource-Based View in Internal Analysis
		Internal Analysis: Making Meaningful Comparisons
			Comparison with Past Performance
			Benchmarking: Comparison with Competitors
			Comparison with Success Factors in the Industry
			Product Life Cycle
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: Apple’s Blueprint for Genius
		APPENDIX A Key Resources across Functional Areas
		APPENDIX B Using Financial Analysis
	7 Long-Term Objectives and Strategies
		Long-Term Objectives
			Qualities of Long-Term Objectives
			The Balanced Scorecard
		Generic Strategies
			Low-Cost Leadership
			Differentiation
			Focus
		The Value Disciplines
			Operational Excellence
			Customer Intimacy
			Product Leadership
		Grand Strategies
			Concentrated Growth
			Market Development
			Product Development
			Innovation
			Horizontal Integration
			Vertical Integration
			Concentric Diversification
			Conglomerate Diversification
			Turnaround
			Divestiture
			Liquidation
			Bankruptcy
			Joint Ventures
			Strategic Alliances
			Consortia, Keiretsus, and Chaebols
		Selection of Long-Term Objectives and Grand Strategy Sets
		Sequence of Objectives and Strategy Selection
		Designing a Profitable Business Model
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: VW’s New Strategic Plan for the United States
	8 Business Strategy
		Evaluating and Choosing Business Strategies: Seeking Sustained Competitive Advantage
			Evaluating Cost Leadership Opportunities
			Evaluating Differentiation Opportunities
			Evaluating Speed as a Competitive Advantage
			Evaluating Market Focus as a Way to Competitive Advantage
			Stages of Industry Evolution and Business Strategy Choices
			Competitive Advantage in Fragmented Industries
			Competitive Advantage in Global Industries
		Dominant Product/Service Businesses: Evaluating and Choosing to Diversify to Build Value
			Grand Strategy Selection Matrix
			Model of Grand Strategy Clusters
			Opportunities for Building Value as a Basis for Choosing Diversification or Integration
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: DHL’s American Strategy
	9 Multibusiness Strategy
		The Portfolio Approach: A Historical Starting Point
			The BCG Growth-Share Matrix
			The Industry Attractiveness–Business Strategy Matrix
			BCG’s Strategic Environments Matrix
			Limitations of Portfolio Approaches
		The Synergy Approach: Leveraging Core Competencies
		The Corporate Parent Role: Can It Add Tangible Value?
			The Parenting Framework
			The Patching Approach
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: eBay’s Changing Identity
PART THREE STRATEGY IMPLEMENTATION, CONTROL, AND INNOVATION
	10 Implementation
		Short-Term Objectives
			Qualities of Effective Short-Term Objectives
		Functional Tactics That Implement Business Strategies
			Differences between Business Strategies and Functional Tactics
		Outsourcing Functional Activities
		Empowering Operating Personnel: The Role of Policies
			Creating Policies That Empower
		Bonus Compensation Plans
			Major Plan Types
			Matching Bonus Plans and Corporate Goals
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case 1: A Better Look at the Boss’s Pay
		Discussion Case 2: He’s Making Hay as CEOs Squirm
		Discussion Case 3: Google Gives Employees Another Option
		APPENDIX Functional Tactics
	11 Organizational Structure
		Traditional Organizational Structures and Their Strategy-Related Pros and Cons
			Simple Organizational Structure
			Functional Organizational Structure
			Divisional Structure
			Matrix Organizational Structure
			Product-Team Structure
		What a Difference a Century Makes
			Globalization
			The Internet
			Speed
		Initial Efforts to Improve the Effectiveness of Traditional Organizational Structures
			Redefine the Role of Corporate Headquarters from Control to Support and Coordination
			Balance the Demands for Control/Differentiation with the Need for Coordination/Integration
			Restructure to Emphasize and Support Strategically Critical Activities
		Creating Agile, Virtual Organizations
			Outsourcing—Creating a Modular Organization
			Strategic Alliances
			Toward Boundaryless Structures
			Ambidextrous Learning Organizations
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: The Secret of BMW’s Success
	12 Leadership and Culture
		Strategic Leadership: Embracing Change
			Clarifying Strategic Intent
			Building an Organization
			Shaping Organizational Culture
			Recruiting and Developing Talented Operational Leadership
		Organizational Culture
			The Role of the Organizational Leader in Organizational Culture
			Build Time in the Organization
			Emphasize Key Themes or Dominant Values
			Encourage Dissemination of Stories and Legends about Core Values
			Institutionalize Practices That Systematically Reinforce Desired Beliefs and Values
			Adapt Some Very Common Themes in Their Own Unique Ways
			Manage the Organizational Culture in a Global Organization
			Manage the Strategy-Culture Relationship
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: The New Heat on Ford
	13 Strategic Control
		Strategic Control
		Establishing Strategic Controls
			Premise Control
			Strategic Surveillance
			Special Alert Control
			The Balanced Scorecard Methodology
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case 1: Big Blue Wields the Knife Again
		Discussion Case 2: Crunch Time for Boeing
		Discussion Case 3: Unproductive Uncle Sam
	14 Innovation and Entrepreneurship
		What Is Innovation?
			Incremental Innovation
			Breakthrough Innovation
			Risks Associated with Innovation
		What Is Entrepreneurship?
			Intrapreneurship
		Summary
		Key Terms
		Questions for Discussion
		Discussion Case: At 3M, a Struggle between Efficiency and Creativity
GLOSSARY
PHOTO CREDITS P NAME INDEX
SUBJECT INDEX