Strategic Management: Concepts: Competitiveness and Globalization

Front Cover......Page 1
Title Page......Page 2
Copyright......Page 3
Contents......Page 6
Preface......Page 14
About the Authors......Page 21
Part 1: Strategic Management Inputs......Page 24
1: Strategic Management and Strategic Competitiveness......Page 25
Opening Case: McDonald’s Corporation: Firing on All Cylinders while Preparing for the Future......Page 26
The Competitive Landscape......Page 31
The I/O Model of Above-Average Returns......Page 36
The Resource-Based Model of Above-Average Returns......Page 38
Vision and Mission......Page 39
Stakeholders......Page 43
Strategic Leaders......Page 46
The Strategic Management Process......Page 48
Summary......Page 49
Experiential Exercises......Page 50
Video Case......Page 51
Notes......Page 52
2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis......Page 57
Opening Case: Philip Morris International: The Effects of Its External Environment......Page 58
The General, Industry, and Competitor Environments......Page 60
External Environmental Analysis......Page 62
Segments of the General Environment......Page 66
Industry Environment Analysis......Page 73
Interpreting Industry Analyses......Page 81
Competitor Analysis......Page 82
Ethical Considerations......Page 84
Review Questions......Page 85
Experiential Exercises......Page 86
Video Case......Page 87
Notes......Page 88
3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages......Page 93
Opening Case: Apple Defies Gravity with Innovative Genius......Page 94
Analyzing the Internal Organization......Page 96
Resources, Capabilities, and Core Competencies......Page 101
Building Core Competencies......Page 105
Outsourcing......Page 112
Competencies, Strengths, Weaknesses, and Strategic Decisions......Page 113
Review Questions......Page 114
Experiential Exercises......Page 115
Notes......Page 116
Part 2: Strategic Actions: Strategy Formulation......Page 120
4: Business-Level Strategy......Page 121
Opening Case: Acer Group: Using a “Bare Bones” Cost Structure to Succeed in Global PC Markets......Page 122
Customers: Their Relationship with Business-Level Strategies......Page 124
The Purpose of a Business-Level Strategy......Page 128
Types of Business-Level Strategies......Page 130
Summary......Page 146
Experiential Exercises......Page 147
Notes......Page 148
5: Competitive Rivalry and Competitive Dynamics......Page 151
Opening Case: Competition in Recessions: Let the Bad Times Roll......Page 152
A Model of Competitive Rivalry......Page 155
Competitor Analysis......Page 156
Drivers of Competitive Actions and Responses......Page 158
Competitive Rivalry......Page 161
Likelihood of Attack......Page 162
Likelihood of Response......Page 165
Competitive Dynamics......Page 167
Summary......Page 172
Experiential Exercises......Page 173
Notes......Page 174
6: Corporate-Level Strategy......Page 179
Opening Case: Foster’s Group Diversi. cation into the Wine Business......Page 180
Levels of Diversification......Page 182
Reasons for Diversification......Page 184
Value-Creating Diversification: Related Constrained and Related Linked Diversification......Page 186
Unrelated Diversification......Page 191
Value-Neutral Diversification: Incentives and Resources......Page 196
Value-Reducing Diversification: Managerial Motives to Diversify......Page 200
Review Questions......Page 202
Experiential Exercises......Page 203
Notes......Page 204
7: Merger and Acquisition Strategies......Page 209
Opening Case: Global Merger and Acquisition Activity during a Global Crisis......Page 210
The Popularity of Merger and Acquisition Strategies......Page 211
Reasons for Acquisitions......Page 213
Problems in Achieving Acquisition Success......Page 221
Effective Acquisitions......Page 226
Restructuring......Page 228
Summary......Page 231
Experiential Exercises......Page 232
Notes......Page 233
8: International Strategy......Page 239
Opening Case: Entry Into China by Foreign Firms and Chinese Firms Reaching for Global Markets......Page 240
Identifying International Opportunities: Incentives to Use an International Strategy......Page 242
International Strategies......Page 246
Environmental Trends......Page 253
Choice of International Entry Mode......Page 254
Strategic Competitive Outcomes......Page 260
Risks in an International Environment......Page 261
Summary......Page 265
Experiential Exercises......Page 266
Video Case......Page 267
Notes......Page 268
9: Cooperative Strategy......Page 275
Opening Case: Using Cooperative Strategies at IBM......Page 276
Strategic Alliances as a Primary Type of Cooperative Strategy......Page 278
Business-Level Cooperative Strategy......Page 283
Corporate-Level Cooperative Strategy......Page 289
International Cooperative Strategy......Page 291
Network Cooperative Strategy......Page 293
Competitive Risks with Cooperative Strategies......Page 294
Managing Cooperative Strategies......Page 295
Summary......Page 298
Video Case......Page 299
Notes......Page 300
Part 3: Strategic Actions: Strategy Implementation......Page 306
10: Corporate Governance......Page 307
Opening Case: Is CEO Pay Outrageous, Irresponsibile, or Greedy?......Page 308
Separation of Ownership and Managerial Control......Page 310
Ownership Concentration......Page 315
Board of Directors......Page 316
Market for Corporate Control......Page 322
International Corporate Governance......Page 325
Governance Mechanisms and Ethical Behavior......Page 329
Summary......Page 330
Experiential Exercises......Page 331
Video Case......Page 332
Notes......Page 333
11: Organizational Structure and Controls......Page 339
Opening Case: Cisco’s Evolution of Strategy and Structure......Page 340
Organizational Structure and Controls......Page 341
Relationships between Strategy and Structure......Page 344
Evolutionary Patterns of Strategy and Organizational Structure......Page 345
Implementing Business-Level Cooperative Strategies......Page 364
Implementing International Cooperative Strategies......Page 365
Summary......Page 366
Experiential Exercises......Page 367
Notes......Page 368
12: Strategic Leadership......Page 373
Opening Case: Selecting a New CEO: The Importance of Strategic Leaders......Page 374
Strategic Leadership and Style......Page 375
The Role of Top-Level Managers......Page 377
Managerial Succession......Page 381
Key Strategic Leadership Actions......Page 384
Summary......Page 394
Video Case......Page 395
Notes......Page 396
13: Strategic Entrepreneurship......Page 401
Opening Case: The Continuing Innovation Revolution at Amazon: The Kindle and E-Books......Page 402
Innovation......Page 404
Entrepreneurs......Page 405
International Entrepreneurship......Page 406
Internal Innovation......Page 407
Implementing Internal Innovations......Page 411
Innovation through Cooperative Strategies......Page 413
Creating Value through Strategic Entrepreneurship......Page 416
Summary......Page 418
Experiential Exercises......Page 419
Notes......Page 420
Name Index......Page 426
Company Index......Page 440
Subject Index......Page 443