Strategic Management: A Competitive Advantage Approach, Concepts and Cases

Cover ......Page 1
Title Page ......Page 5
Copyright Page ......Page 6
Brief Contents ......Page 7
Contents ......Page 9
Preface ......Page 17
Acknowledgments ......Page 28
About the Authors ......Page 29
Chapter 1 Strategic Management Essentials ......Page 33
 Exemplary Company Showcased: Singapore Airlines Limited (SIA)......Page 34
 Stages of Strategic Management ......Page 35
 Integrating Intuition and Analysis ......Page 36
  Adapting to Change ......Page 37
  Strategists ......Page 38
  Academic Research Capsule 1-1: When Are Chief Strategy Officers (CSOs) Hired/Appointed?......Page 39
  External Opportunities and Threats ......Page 40
  Internal Strengths and Weaknesses ......Page 41
  Annual Objectives ......Page 42
  Policies ......Page 43
 The Strategic-Management Model......Page 44
  Academic Research Capsule 1-2: What Activity Is Most Important in the Strategic-Management Process?......Page 45
  Financial Benefits ......Page 46
 Why Some Firms Do No Strategic Planning ......Page 47
 Comparing Business and Military Strategy ......Page 48
 Implications for Strategists ......Page 50
 Chapter Summary ......Page 51
  Issues for Review and Discussion ......Page 52
  Mini-Case on Ryanair Limited (RYAAY): Is Ryanair’s Website Its Strategic Marketing Tool?......Page 54
  Endnotes ......Page 55
  The Cohesion Case: Nestlé S.A. - 2016......Page 56
  Assurance of Learning Exercise 1A: Assess Singapore Airlines’ Most Recent Quarterly Performance Data......Page 65
  Assurance of Learning Exercise 1D: Evaluate an Oral Student Presentation......Page 66
  Assurance of Learning Exercise 1F: Interview Local Strategists......Page 67
Chapter 2 Outside-USA Strategic Planning......Page 69
 The Nature of Doing Business Globally ......Page 70
  Multinational Firms ......Page 72
  Academic Research Capsule 2-1: How Many Languages Are There Globally? ......Page 73
 Advantages and Disadvantages of Doing Business Globally ......Page 74
 The Global Challenge ......Page 75
  Academic Research Capsule 2-2: How Do Firms Decide Where to Expand? ......Page 76
 American Versus Foreign Business Culture ......Page 78
  Communication Differences across Countries......Page 80
  Mexico’s Business Culture ......Page 81
  Japan’s Business Culture ......Page 82
  China’s Business Culture ......Page 83
 Business Climate across Countries......Page 84
  Africa’s Business Climate ......Page 85
  China’s Business Climate ......Page 86
  India’s Business Climate ......Page 87
  Mexico’s Business Climate ......Page 88
  Vietnam’s Business Climate ......Page 89
  Implications for Students ......Page 90
  Issues for Review and Discussion ......Page 91
  Assurance of Learning Exercise 2A: Nestlé S.A. Wants to Enter Africa. Help Them.......Page 92
  Assurance of Learning Exercise 2C: Honda Motor Company Wants to Do Business in Vietnam. Help Them.......Page 93
  Mini-Case on Airbus Group SE (AIR.PA): How Well Is Airbus Performing Globally?......Page 94
  Endnotes ......Page 95
Chapter 3 Ethics, Social Responsibility, and Sustainability ......Page 97
 Why “Good Ethics is Good Business”......Page 98
  Does It Pay to Be Ethical? ......Page 99
  Academic Research Capsule 3-1: What Can We Learn from High-Performance Companies?......Page 100
  Academic Research Capsule 3-2: Who Is Prone to Be Unethical in a Business?......Page 101
  Whistle-Blowing......Page 102
  Avoid Bribery ......Page 103
  Workplace Romance ......Page 104
 Social Responsibility and Policy ......Page 105
  Social Policies on Retirement ......Page 106
 Environmental Sustainability ......Page 107
  What Firms Are the Best Stewards? ......Page 108
  Sustainability Reports ......Page 109
  ISO 14000/14001 Certification......Page 110
 Wildlife Welfare ......Page 111
  Implications for Strategists ......Page 113
  Issues for Review and Discussion ......Page 114
  Assurance of Learning Exercise 3A: Sustainability and Nestlé......Page 115
  Assurance of Learning Exercise 3D: How Do You Rate Nestlé’s Sustainability Efforts?......Page 116
  Assurance of Learning Exercise 3E: The Ethics of Spying on Competitors......Page 117
  Current Readings ......Page 118
  Endnotes ......Page 119
Chapter 4 Types of Strategies ......Page 121
 Long-Term Objectives......Page 122
  Financial versus Strategic Objectives......Page 123
 Types of Strategies ......Page 124
 Integration Strategies ......Page 126
  Forward Integration ......Page 127
  Backward Integration ......Page 128
  Horizontal Integration ......Page 129
  Market Development ......Page 130
 Diversification Strategies ......Page 131
  Unrelated Diversification ......Page 132
  Retrenchment ......Page 133
  Divestiture ......Page 134
  Liquidation ......Page 135
 Michael Porter’s Five Generic Strategies ......Page 136
  Cost Leadership Strategies (Type 1 and Type 2)......Page 137
  Differentiation Strategies (Type 3)......Page 138
  Focus Strategies (Type 4 and Type 5)......Page 139
  Joint Venture and Partnering ......Page 140
  Academic Research Capsule 4-1: Are International Alliances More Effective with Competitors or Noncompetitors? ......Page 141
  Merger/Acquisition......Page 142
  Private-Equity Acquisitions......Page 143
  Outsourcing and Reshoring ......Page 144
  Educational Institutions ......Page 146
  Small Firms ......Page 147
  Implications for Strategists ......Page 148
 Chapter Summary ......Page 149
  Issues for Review and Discussion ......Page 150
  Assurance of Learning Exercise 4C: Private-Equity Acquisitions......Page 152
  Assurance of Learning Exercise 4G: What Strategies Are Most Risky?......Page 153
  Assurance of Learning Exercise 4J: Classify Some Strategies......Page 154
  Mini-Case on Tiger Brands Limited: Is Tiger Brands Strategically Ready to Compete and Cooperate?......Page 155
  Endnotes ......Page 156
Chapter 5 Vision and Mission Analysis ......Page 159
 Vision Statements: What Do We Want to Become? ......Page 160
  Vision Statement Analysis ......Page 161
 Mission Statements: What Is Our Business? ......Page 162
 The Process of Developing Vision and Mission Statements ......Page 163
  Academic Research Capsule 5-1: The Mission Statement/Firm Performance Linkage......Page 164
  A Resolution of Divergent Views ......Page 165
 Characteristics of a Mission Statement ......Page 166
 Components of a Mission Statement ......Page 167
 Evaluating and Writing Mission Statements ......Page 168
  Two Mission Statements Proposed ......Page 169
  Implications for Strategists ......Page 171
 Chapter Summary ......Page 172
  Issues for Review and Discussion ......Page 173
  Assurance of Learning Exercise 5B: Studying an Alternative View of Mission Statement Content......Page 174
  Assurance of Learning Exercise 5E: Selecting the Best Vision and Mission Statements in a Given Industry......Page 175
  Mini-Case on Citizen Holdings Company Limited (CIZN): Does Citizen Holdings’ Have a Clear Vision or Mission?......Page 176
  Endnotes ......Page 177
Chapter 6 The Internal Audit......Page 179
 The Nature of an Internal Audit ......Page 180
  Key Internal Forces ......Page 181
  The Process of Performing an Internal Audit ......Page 182
  Academic Research Capsule 6-1: Does RBV Theory Determine Diversification Targets?......Page 183
 Integrating Strategy and Culture ......Page 184
  Planning ......Page 186
  Organizing ......Page 187
  Staffing ......Page 188
  Management Audit Checklist of Questions ......Page 189
  Selling Products and Services ......Page 190
  Pricing ......Page 191
  Cost/Benefit Analysis......Page 192
  Finance/Accounting Functions......Page 193
  Financial Ratios ......Page 194
  Breakeven Analysis ......Page 197
 Production/Operations......Page 199
  Production/Operations Audit Checklist......Page 200
  Internal and External Research and Development ......Page 201
  Managing Voluminous Consumer Data ......Page 202
 Value Chain Analysis ......Page 203
  Benchmarking ......Page 204
 The Internal Factor Evaluation Matrix ......Page 206
 Implications for Strategists ......Page 208
 Implications for Students ......Page 210
  Key Terms and Concepts ......Page 211
  Issues for Review and Discussion ......Page 212
  Assurance of Learning Exercise 6B: Should Volkswagen Deploy More (or Less) Resources Outside of Europe?......Page 213
  Assurance of Learning Exercise 6E: Construct an IFE Matrix for Nestlé......Page 214
  Mini-Case on Bank of China Limited (BACHF): What Is the Nature of Bank of China’s Growth?......Page 215
  Endnotes ......Page 216
Chapter 7 The External Audit......Page 219
 Exemplary Company Showcased: Michelin (MGDDF)......Page 220
  Key External Forces ......Page 221
  The Process of Performing an External Audit ......Page 222
  Economic Forces ......Page 223
  Social, Cultural, Demographic, and Natural Environment Forces......Page 225
  Political, Governmental, and Legal Forces......Page 226
  Technological Forces......Page 228
  Competitive Forces ......Page 229
 Porter’s Five-Forces Model......Page 231
  Rivalry Among Competing Firms ......Page 232
  Bargaining Power of Suppliers ......Page 233
 Forecasting Tools and Techniques ......Page 234
  Making Assumptions ......Page 235
  Business Analytics ......Page 236
 The External Factor Evaluation Matrix ......Page 237
 The Competitive Profile Matrix ......Page 238
 Implications for Strategists ......Page 241
 Chapter Summary ......Page 242
  Issues for Review and Discussion ......Page 243
  Assurance of Learning Exercise 7A: Michelin and Africa: An External Assessment......Page 244
  Assurance of Learning Exercise 7D: Developing an EFE Matrix for Nestlé S.A.......Page 245
  Assurance of Learning Exercise 7H: Analyzing Your College or University’s External Strategic Situation......Page 246
  Endnotes ......Page 247
Chapter 8 Strategy Generation and Selection ......Page 249
  The Process of Generating and Selecting Strategies ......Page 250
 The Strategy-Formulation Analytical Framework......Page 252
 The SWOT Matrix......Page 253
 The Strategic Position and Action Evaluation (SPACE) Matrix......Page 256
 The Boston Consulting Group (BCG) Matrix......Page 260
 The Internal-External (IE) Matrix......Page 263
  Academic Research Capsule 8-1: A New IE Matrix......Page 266
 The Grand Strategy Matrix ......Page 267
 The Decision Stage: The Quantitative Strategic Planning Matrix (QSPM)......Page 268
  Positive Features and Limitations of the QSPM......Page 271
 The Politics of Strategy Analysis and Choice ......Page 272
 Boards of Directors: Governance Issues ......Page 273
  Academic Research Capsule 8-2: How Many Board of Directors Members Are Ideal? ......Page 275
  Implications for Students ......Page 276
 Chapter Summary ......Page 277
  Issues for Review and Discussion ......Page 278
  Assurance of Learning Exercise 8C: Prepare a BCG Matrix for Unilever......Page 280
  Assurance of Learning Exercise 8F: Develop a BCG Matrix for Nestlé S.A.......Page 281
  Assurance of Learning Exercise 8J: Develop a QSPM for a Company That You Are Familiar with......Page 282
  Mini-Case on Hyundai Motor Company (HYMTF): How Would a BCG for Hyundai Look Like?......Page 283
  Endnotes ......Page 284
Chapter 9 Strategy Implementation ......Page 287
 Strategic Marketing Issues ......Page 288
 Social Media Marketing ......Page 289
 Market Segmentation ......Page 291
 Product Positioning and Perceptual Mapping ......Page 294
  Author Commentary ......Page 295
 Strategic Finance/Accounting Issues......Page 297
 EPS/EBIT Analysis: Acquire Needed Capital......Page 298
 Projected Financial Statements ......Page 302
  Projected Financial Statement Analysis for D. R. Horton ......Page 304
 Corporate Valuation ......Page 306
  Corporate Valuation Methods ......Page 308
  Go Public with an Ipo? ......Page 310
 Strategic Research and Development (R&D) Issues......Page 311
 Strategic Management Information Systems (MIS) Issues......Page 313
  Implications for Strategists ......Page 314
 Chapter Summary ......Page 315
  Issues for Review and Discussion ......Page 316
  Assurance of Learning Exercise 9C: Perform an EPS/EBIT Analysis for Nestlé S.A.......Page 318
  Assurance of Learning Exercise 9F: Develop a Product-Positioning Map for Your College......Page 319
  Mini-Case on Tata Motors Limited (TTM)......Page 320
  Endnotes ......Page 321
Chapter 10 Strategy Execution ......Page 323
 Exemplary Company Showcased: Accenture Plc (ACN)......Page 324
 The Need for Clear Annual Objectives ......Page 326
  Allocate Resources ......Page 329
 Match Structure with Strategy ......Page 331
  The Functional Structure ......Page 332
  The Divisional Structure ......Page 333
  The Strategic Business Unit (SBU) Structure......Page 335
  The Matrix Structure ......Page 336
 Dos and Don’ts in Developing Organizational Charts ......Page 337
  Academic Research Capsule 10-1: Why Is the COO Position Being Deleted in Many Organizations?......Page 339
  Restructuring and Reengineering ......Page 340
  Decide Where and How to Produce Goods ......Page 341
  Employee Stock Ownership Plans (ESOPs)......Page 342
  Linking Performance and Pay to Strategy ......Page 343
  Balance Work Life and Home Life ......Page 345
  Develop a Diverse Workforce ......Page 346
  Use Caution in Hiring a Rival’s Employees ......Page 347
  Create a Strategy-Supportive Culture......Page 350
  Develop a Corporate Wellness Program ......Page 351
  Implications for Strategists ......Page 353
  Implications for Students ......Page 354
  Issues for Review and Discussion ......Page 355
  Assurance of Learning Exercise 10D: Explore Objectives......Page 357
  Mini-Case on Horizon Pharma (HZNP): Does Horizon Pharma Have a Formal Structure?......Page 358
  Endnotes ......Page 359
Chapter 11 Strategy Monitoring ......Page 361
 The Strategy-Evaluation Process, Criteria, and Methods......Page 362
  The Process of Evaluating Strategies ......Page 365
  Reviewing Bases of Strategy ......Page 366
  Measuring Organizational Performance ......Page 368
  Taking Corrective Actions ......Page 369
 The Balanced Scorecard ......Page 371
 Characteristics of an Effective Strategy Evaluation System ......Page 373
 Contingency Planning ......Page 374
 Auditing ......Page 375
  The Art or Science Issue ......Page 376
  The Visible or Hidden Issue ......Page 377
 Guidelines for Effective Strategic Management ......Page 378
 Implications for Students ......Page 380
  Issues for Review and Discussion ......Page 381
  Assurance of Learning Exercise 11A: Evaluate BHP Billiton’s Strategies......Page 382
  Assurance of Learning Exercise 11D: Evaluate Your University’s Strategies......Page 383
  Endnotes ......Page 384
Appendix Guidelines for Case Analysis ......Page 387
  The Need for Specificity ......Page 388
  The Cross-Examination......Page 389
  Steps in Preparing a Comprehensive Written Analysis ......Page 390
  Managing Body Language ......Page 391
 Tips for Success in Case Analysis ......Page 392
  Sample Case Analysis Outline ......Page 393
 Strategic Planning for Gruma SAB......Page 395
 Strategic Management Cases ......Page 399
  Krispy Kreme Doughnuts, Inc., 2015 ......Page 400
  Domino’s Pizza, Inc., 2013 ......Page 407
  Dunkin’ Brands Group, Inc., 2015 ......Page 417
  United Parcel Service, Inc., 2013 ......Page 425
  FedEX Corporation, 2015......Page 436
  Citigroup Inc., 2015 ......Page 445
  JPMorgan Chase & Co., 2013......Page 454
  Polaris Industries, Inc., 2013 ......Page 465
  The Emirates Group, 2014 ......Page 474
  Walt Disney Company, 2013 ......Page 483
  Facebook, Inc., 2015 ......Page 493
  World Wildlife Fund for Nature(WWF) 2015......Page 501
  Ford Motor Company, 2015 ......Page 510
  Bayerische Motoren Werke (BMW)group, 2013......Page 520
  Exxon Mobil Corporation, 2013 ......Page 527
  Embraer S.A., 2013......Page 538
  Apple Inc., 2015 ......Page 547
  International Business Machines (IBM) Corporation, 2015......Page 556
  Microsoft Corporation, 2013 ......Page 565
  Lenovo Group Limited, 2013 ......Page 574
  Nikon Corporation, 2013 ......Page 583
  Netgear, Inc., 2013 ......Page 590
  Crocs, Inc., 2013 ......Page 598
  L’Oréal SA, 2013......Page 608
  Avon Products, Inc., 2013 ......Page 616
  Revlon, Inc., 2015 ......Page 624
  Under Armour, Inc., 2013 ......Page 632
  Pearson PLC, 2013......Page 641
  Snyder’s-Lance, Inc., 2013......Page 650
Glossary ......Page 659
Name Index ......Page 669
Subject Index ......Page 675