Strategic management and business policy : globalization, innovation, and sustainability

Cover ......Page 1
Brief Contents ......Page 7
Contents ......Page 8
Preface ......Page 23
About the Authors ......Page 31
Part One Introduction to Strategic Management and Business Policy ......Page 35
 Chapter 1 Basic Concepts of Strategic Management ......Page 36
   Phases of Strategic Management ......Page 39
   Benefits of Strategic Management ......Page 40
  Globalization, Innovation, and Sustainability: Challenges to Strategic Management ......Page 41
   Impact of Globalization ......Page 42
   Impact of Innovation ......Page 43
   Impact of Sustainability ......Page 44
  Creating a Learning Organization ......Page 46
   Environmental Scanning ......Page 48
   Strategy Formulation ......Page 50
   Strategy Implementation ......Page 54
   Evaluation and Control ......Page 55
  Initiation of Strategy: Triggering Events ......Page 56
   What Makes a Decision Strategic? ......Page 57
   Mintzberg’s Modes of Strategic Decision Making ......Page 58
   Strategic Decision-making Process: Aid to Better Decisions ......Page 59
  The Strategic Audit: Aid to Strategic Decision Making ......Page 60
   End of Chapter Summary ......Page 61
  Appendix 1.A Strategic Audit of a Corporation......Page 66
 Chapter 2 Corporate Governance ......Page 74
  Role of the Board of Directors ......Page 77
   Responsibilities of the Board ......Page 78
  Board of Directors Composition ......Page 81
   Innovation Issue: Jcpeney and Innovation ......Page 82
   Strategy Highlight: Agency Theory Versus Stewardship Theory in Corporate Governance ......Page 83
   Nomination and Election of Board Members ......Page 87
   Organization of the Board ......Page 88
  Impact of Sarbanes–Oxley on U.S. Corporate Governance......Page 89
   Global Issue: Global Busines Board Activism at Yaho! ......Page 90
   Evaluating Governance ......Page 91
  Trends in Corporate Governance ......Page 92
  The Role of Top Management ......Page 93
   Sustainability Issue: Ceo Pay and Corporate Performance ......Page 94
   End of Chapter Summary ......Page 97
 Chapter 3 Social Responsibility and Ethics in Strategic Management ......Page 104
   Responsibilities of a Business Firm ......Page 106
  Sustainability ......Page 109
   Corporate Stakeholders ......Page 110
  Stakeholder Analysis ......Page 111
  Ethical Decision Making ......Page 113
   Some Reasons for Unethical Behavior ......Page 114
   Global Issue: How Rule-based and Relationship-based Governance Systems Affect Ethical Behavior ......Page 115
   Innovation Issue: Turning a Need into a Busines to Solve the Need ......Page 117
   Encouraging Ethical Behavior ......Page 118
  Views on Ethical Behavior ......Page 119
   End of Chapter Summary ......Page 121
Part Two Scanning the Environment ......Page 125
 Chapter 4 Environmental Scanning and Industry Analysis ......Page 126
  Aspects of Environmental Scanning ......Page 128
   Identifying External Environmental Variables ......Page 129
   Sustainability Issue: Gren Supercars ......Page 130
   Scanning the Societal Environment: Steep Analysis ......Page 131
   Global Issue: Suvs Power on in China ......Page 139
  Industry Analysis: Analyzing the Task Environment ......Page 141
   Porter’s Approach to Industry Analysis ......Page 142
  Categorizing International Industries ......Page 146
   Innovation Issue: Taking Stock of an Obsesion ......Page 147
   Strategic Groups ......Page 148
   Strategic Types ......Page 149
   Hypercompetition ......Page 150
  Using Key Success Factors to Create an Industry Matrix ......Page 151
  Competitive Intelligence ......Page 152
   Sources of Competitive Intelligence ......Page 153
   Strategy Highlight Evaluating Competitive Inteligence ......Page 154
   Monitoring Competitors for Strategic Planning ......Page 155
   Useful Forecasting Techniques ......Page 156
  Synthesis of External Factors ......Page 158
   End of Chapter Summary ......Page 160
 Chapter 5 Organizational Analysis and Competitive Advantage ......Page 166
   Core and Distinctive Competencies ......Page 168
   Using Resources/capabilities to Gain Competitive Advantage ......Page 171
  Business Models ......Page 172
   Industry Value-chain Analysis ......Page 174
   Corporate Value-Chain Analysis......Page 176
  Basic Organizational Structures ......Page 177
  Culture ......Page 179
   Strategic Marketing Issues ......Page 181
   Innovation Issue: Docomo Moves Against the Grain ......Page 183
   Strategic Financial Issues ......Page 184
   Strategic Research and Development (R&D) Issues......Page 185
   Strategic Operations Issues ......Page 187
   Strategic Human Resource Management (HRM) Issues......Page 189
   Strategic Information Systems/Technology Issues......Page 191
   Sustainability Issue: The Olympic Games—London 2012/Sochi 2014/Rio 2016 & Tokyo 2020......Page 192
   Synthesis of Internal Factors (IFAS)......Page 194
   End of Chapter Summary ......Page 196
Part Three Strategy Formulation ......Page 201
 Chapter 6 Strategy Formulation: Business Strategy ......Page 202
  A Framework for Examining Business Strategy ......Page 204
   Generating a Strategic Factors Analysis Summary (SFAS) Matrix......Page 205
   Finding Market Niches ......Page 207
  Mission and Objectives ......Page 208
   Porter’s Competitive Strategies ......Page 209
   Global Issue: Has Emirates Reached the Limit of Globalization? ......Page 211
   Innovation Issue: Cheg and Colege Textboks ......Page 214
   Sustainability Issue: Strategic Sustainability—ESPN......Page 216
   Cooperative Strategies ......Page 217
  Strategic Alliances ......Page 218
   End of Chapter Summary ......Page 222
 Chapter 7 Strategy Formulation: Corporate Strategy ......Page 226
  Directional Strategy ......Page 228
  Growth Strategies ......Page 229
   Strategy Highlight: Transaction Cost Economics Analyzes Vertical Growth Strategy ......Page 232
   Global Issue: Global Expansion Is Not Always a Path to Growth ......Page 234
   Controversies in Directional Growth Strategies ......Page 235
   Stability Strategies ......Page 236
   Retrenchment Strategies ......Page 237
  Portfolio Analysis ......Page 239
   Bcg Growth-share Matrix ......Page 240
   Sustainability Issue: General Motors and The Electric Car ......Page 242
   Managing a Strategic Alliance Portfolio ......Page 243
  Corporate Parenting ......Page 244
   Innovation Issue: To Red Hat or Not?......Page 245
   Horizontal Strategy and Multipoint Competition ......Page 246
   End of Chapter Summary ......Page 247
 Chapter 8 Strategy Formulation: Functional Strategy and Strategic Choice ......Page 252
   Marketing Strategy ......Page 254
   Financial Strategy ......Page 256
   Research and Development (r&d) Strategy ......Page 257
   Operations Strategy ......Page 258
   Global Issue: Why Is Starbucks Afraid of Italy? ......Page 259
   Purchasing Strategy ......Page 260
   Sustainability Issue: How Hot Is Hot? ......Page 261
   Innovation Issue: When an Innovation Fails to Live Up to Expectations ......Page 262
   Human Resource Management (HRM) Strategy......Page 263
  The Sourcing Decision: Location of Functions ......Page 264
  Strategic Choice: Constructing Scenarios ......Page 267
   Constructing Corporate Scenarios ......Page 268
   The Process of Strategic Choice ......Page 273
   End of Chapter Summary ......Page 275
Part Four Strategy Implementation and Control ......Page 281
 Chapter 9 Strategy Implementation: Global Strategy ......Page 282
  International Entry ......Page 284
  International Coordination ......Page 286
  Stages of International Development ......Page 287
  International Employment ......Page 288
  Measurement of Performance ......Page 290
   End of Chapter Summary ......Page 292
 Chapter 10 Strategy Implementation: Organizing and Structure ......Page 296
  Strategy Implementation ......Page 298
   Developing Programs, Budgets, and Procedures ......Page 299
   Sustainability Issue: A Beter Botle—Ecologic Brands......Page 300
   Achieving Synergy ......Page 304
   Structure Follows Strategy ......Page 305
   Stages of Corporate Development ......Page 306
   Innovation Issue: The P&G Innovation Machine Stumbles......Page 307
   Organizational Life Cycle ......Page 311
   The Matrix Structure ......Page 312
   Network Structure—The Virtual Organization......Page 314
   Global Issue: Outsourcing Comes Ful Circle ......Page 315
  Reengineering and Strategy Implementation ......Page 316
   Six Sigma ......Page 317
   Designing Jobs to Implement Strategy ......Page 318
   Centralization Versus Decentralization ......Page 319
   End of Chapter Summary ......Page 320
 Chapter 11 Strategy Implementation: Staffing and Directing ......Page 326
  Staffing ......Page 328
   Staffing Follows Strategy ......Page 329
   Innovation Issue: How to Kep Apple “cool” ......Page 331
   Problems in Retrenchment ......Page 333
   Managing Corporate Culture ......Page 335
   Sustainability Issue: Panera and the “Panera Cares Comunity Café......Page 336
  Action Planning ......Page 340
   Management by Objectives ......Page 342
   Total Quality Management ......Page 343
   End of Chapter Summary ......Page 344
 Chapter 12 Evaluation and Control ......Page 350
   Appropriate Measures ......Page 352
   Types of Controls ......Page 353
   Innovation Issue: Solar Power and The Grid......Page 354
   Activity-Based Costing......Page 355
   Primary Measures of Corporate Performance ......Page 356
   Sustainability Issue: The End of the Cash Register Receipt......Page 359
  Balanced Scorecard Approach: Using Key Performance Measures ......Page 360
   Responsibility Centers ......Page 362
  Using Benchmarking to Evaluate Performance ......Page 364
  Strategic Information Systems ......Page 365
   Radio Frequency Identification and Near Field Communication ......Page 366
  Problems in Measuring Performance ......Page 367
   Short-Term Orientation......Page 368
   Goal Displacement ......Page 369
   Guidelines for Proper Control ......Page 370
   Aligning Incentives ......Page 371
   End of Chapter Summary ......Page 373
Part Five Introduction to Case Analysis ......Page 379
 Chapter 13 Suggestions for Case Analysis ......Page 380
  Researching the Case Situation ......Page 382
   Analyzing Financial Statements ......Page 383
   Z-Value and the Index of Sustainable Growth......Page 387
  Format for Case Analysis: the Strategic Audit ......Page 388
   End of Chapter Summary ......Page 391
  Appendix 13.A Resources for Case Research......Page 393
  Appendix 13.B Suggested Case Analysis Methodology Using the Strategic Audit......Page 395
  Appendix 13.C Example of Student-written Strategic Audit......Page 398
Part Six Cases in Strategic Management ......Page 407
  Case 1 The Recalcitrant Director at Byte Products, Inc.: Corporate Legality Versus Corporate Responsibility......Page 413
  Case 2 The Wallace Group......Page 419
  Case 3 Everyone Does It ......Page 429
  Case 4 The Audit......Page 433
  Case 5 Early Warning or False Sense of Security? Concussion Risk and the Case of the Impact-Sensing Football Chinstrap......Page 435
  Case 6 The Storm of Governance Reform at the American Red Cross......Page 439
  Case 7 Chipotle Mexican Grill, Inc.: Conscious Capitalism by Serving “Food with Integrity”......Page 453
  Case 8 Google and the Right to Be Forgotten ......Page 467
  Case 9 Harley Davidson: an Overreliance on Aging Baby Boomers ......Page 477
  Case 10 Uber: Feeling the Heat from Competitors and Regulators Worldwide ......Page 491
   Case 11 Pandora Internet Radio (2014): Just Press Play ......Page 507
   Case 12 Amazon.com, Inc.: Retailing Giant to High-Tech Player? ......Page 525
   Case 13 Blue Nile, Inc.: “Stuck in the Middle” of the Diamond Engagement Ring Market......Page 537
   Case 14 Groupon Inc.: Daily Deal or Lasting Success? ......Page 553
   Case 15 Netflix Inc.: the 2011 Rebranding/price Increase Debacle ......Page 573
   Case 16 Town Sports International Holdings, Inc.: Unsquashable ......Page 585
   Case 17 Zynga, Inc. (2011): Whose Turn Is It? ......Page 607
   Case 18 the Boston Beer Company: Brewers of Samuel Adams Boston Lager (mini Case) ......Page 627
   Case 19 Panera Bread Company (2010): Still Rising Fortunes? ......Page 631
   Case 20 Whole Foods Market (2010): How to Grow in an Increasingly Competitive Market? (Mini Case)......Page 657
   Case 21 Burger King (Mini Case)......Page 663
   Case 22 Sonic Restaurants: Does Its Drive-in Business Model Limit Future Growth Potential? ......Page 667
   Case 23 “Breaking Up Is Hard to Do”: Pepsico in 2014......Page 677
   Case 24 Under Armour ......Page 685
   Case 25 Toms Shoes (Mini Case)......Page 697
   Case 26 J.C. Penney Company, Inc.: Surviving the Ron Johnson (CEO) Era......Page 701
   Case 27 Best Buy Co. Inc. (2009): A Sustainable Customer-Centricity Model?......Page 723
   Case 28 Target Corp’s Tarnished Reputation: Failure in Canada and a Massive Data Breach ......Page 737
   Case 29 Staples: the Fierce Battle Between Brick and Mortar Vs. Online Sales ......Page 749
   Case 30 Tesla Motors, Inc.: The First U.S. Car Company IPO Since 1956......Page 765
   Case 31 Tomtom: New Competition Everywhere! ......Page 781
   Case 32 General Electric, Ge Capital, and the Financial Crisis of 2008: the Best of the Worst in the Financial Sector? ......Page 797
   Case 33 Snap-on Tools: a Victim of Its Own Success ......Page 813
Glossary ......Page 827
Name Index ......Page 839
Subject Index ......Page 844