Strategic Management Theory: An Integrated Approach, 9th Edition

Front Cover......Page 1
Title Page......Page 4
Copyright......Page 5
Brief Contents
......Page 6
Contents......Page 7
Preface......Page 20
Opening Case: Walmart's Competitive Advantage......Page 26
Strategic Leadership, Competitive Advantage, and Superior Performance......Page 29
Strategic Managers......Page 34
The Strategy-Making Process......Page 36
Major Goals......Page 41
Strategy in Action 1.1: Strategic Analysis at Time Inc.......Page 43
Strategy as an Emergent Process......Page 46
Strategy in Action 1.2: Starbucks's Music Business......Page 47
Strategy in Action 1.3: A Strategic Shift at Charles Schwab......Page 48
Strategic Planning in Practice......Page 51
Strategic Decision Making......Page 53
Strategic Leadership......Page 55
Practicing Strategic Management......Page 60
Closing Case: Planning for the Chevy Volt......Page 61
Opening Case: The United States Steel Industry......Page 63
Defining an Industry......Page 65
Porter's Five Forces Model......Page 67
Strategy in Action 2.1: Circumventing Entry Barriers into the Soft Drink Industry......Page 70
Strategy in Action 2.2: Price Wars in the Breakfast Cereal Industry......Page 74
Running Case: Walmart's Bargaining Power over Suppliers......Page 77
Strategic Groups within Industries......Page 79
Industry Life Cycle Analysis......Page 82
Limitations of Models for Industry Analysis......Page 86
The Macroenvironment......Page 88
Practicing Strategic Management......Page 94
Closing Case: The United States Beer Industry......Page 95
Opening Case: Regaining McDonald's Competitive Advantage......Page 97
The Roots of Competitive Advantage......Page 99
The Value Chain......Page 106
Strategy in Action 3.1: Value Creation at Burberry......Page 108
The Building Blocks of Competitive Advantage......Page 110
Business Models, the Value Chain, and Generic Distinctive Competencies......Page 115
Analyzing Competitive Advantage and Profitability......Page 116
Running Case: Comparing Walmart and Target......Page 118
The Durability of Competitive Advantage......Page 120
Avoiding Failure and Sustaining Competitive Advantage......Page 124
Strategy in Action 3.3: The Road to Ruin at DEC......Page 126
Practicing Strategic Management......Page 129
Closing Case: Southwest Airlines......Page 130
Opening Case: Productivity Improvement at United Technologies......Page 131
Achieving Superior Efficiency......Page 133
Strategy in Action 4.1: Learning Effects in Cardiac Surgery......Page 137
Strategy in Action 4.2: Mass Customization at Lands' End......Page 141
Materials Management, Just-in-Time, and Efficiency......Page 143
Running Case: Human Resource Strategy and Productivity at Walmart......Page 146
Achieving Superior Quality......Page 149
Strategy in Action 4.3: GE's Six Sigma Quality Improvement Process......Page 151
Achieving Superior Innovation......Page 155
Achieving Superior Responsiveness to Customers......Page 159
Practicing Strategic Management......Page 164
Closing Case: Boosting Efficiency at Matsushita......Page 165
Opening Case: Sony's Failure in Competitive Positioning......Page 167
Competitive Positioning and the Business Model......Page 170
Competitive Positioning and Business-Level Strategy......Page 176
Competitive Positioning: Generic Business-Level Strategies......Page 179
Strategy in Action 5.1: Ryanair Takes Control over the Sky in Europe......Page 182
Strategy in Action 5.2: L.L.Bean's New Business Model......Page 189
The Dynamics of Competitive Positioning......Page 190
Strategy in Action 5.3: Zara Uses IT to Change the World of Fashion......Page 191
Strategy in Action 5.4: Toyota's Goal? A High-Value Vehicle to Match Every Customer Need......Page 194
Closing Case: Holiday Inns on Six Continents......Page 199
Opening Case: Competition in the Microchip Business Speeds Up......Page 201
Strategies in Fragmented Industries......Page 203
Strategies in Embryonic and Growth Industries......Page 206
Strategy in Action 6.2: AOL, Prodigy, and the Chasm between Innovators and the Early Majority......Page 212
Navigating Through the Life Cycle to Maturity......Page 213
Strategic in Mature Industries......Page 217
Strategy in Action 6.3: Nonprice Competitive Strategies at Nike......Page 225
Strategies in Declining Industries......Page 227
Strategy in Action 6.4: How to Make Money in the Vacuum Tube Business......Page 230
Closing Case: Warfare in Toyland......Page 232
Opening Case: The Format War in Smartphones......Page 234
Technical Standards and Format Wars......Page 236
Strategy in Action 7.1: How Dolby Became the Standard in Sound Technology......Page 242
Strategies for Winning a Format War......Page 244
Costs in High-Technology Industries......Page 247
Strategy in Action 7.2: Lowering the Cost of Ultrasound Equipment Through Digitalization......Page 249
Capturing First-Mover Advantages......Page 250
Technological Paradigm Shifts......Page 256
Strategy in Action 7.3: Disruptive Technology in Mechanical Excavators......Page 260
Practicing Strategic Management......Page 264
Closing Case: Blu-Ray versus HD DVD......Page 265
Opening Case: The Evolving Strategy of Coca-Cola......Page 267
The Global and National Environments......Page 269
Strategy in Action 8.1: Finland's Nokia......Page 272
Increasing Profitability and Profit Growth Through Global Expansion......Page 275
Running Case: Walmart's Global Expansion......Page 277
Cost Pressures and Pressures for Local Responsiveness......Page 281
Choosing a Global Strategy......Page 285
Strategy in Action 8.2: The Evolution of Strategy at Procter & Gamble......Page 287
The Choice of Entry Mode......Page 291
Global Strategic Alliances......Page 298
Strategy in Action 8.3: Cisco and Fujitsu......Page 299
Practicing Strategic Management......Page 305
Closing Case: MTV Networks: A Global Brand Goes Local......Page 306
Opening Case: News Corp Forges Ahead......Page 308
Corporate-Level Strategy and the Multibusiness Model......Page 310
Horizontal Integration: Single-Industry Strategy......Page 311
Strategy in Action 9.1: Oracle Strives to Become the Biggest and the Best......Page 314
Running Case: Walmart's Growing Chain of "Neighborhood Markets"......Page 316
Vertical Integration: Entering New Industries to Strengthen the "Core" Business Model......Page 317
Strategy in Action 9.2: Specialized Assets and Vertical Integration in the Aluminum Industry......Page 321
Strategy in Action 9.3: McDonald's: A Leader at Vertical Integration......Page 322
Alternatives to Vertical Integration: Cooperative Relationships......Page 325
Strategic Outsourcing......Page 328
Practicing Strategic Management......Page 334
Closing Case: Beating Dell: Why HP Acquired Compaq......Page 335
Opening Case: Samsung's Success Depends on Many Corporate Strategies......Page 336
Increasing Profitability Through Diversification......Page 338
Two Types of Diversification......Page 345
Strategy in Action 10.1: Cisco Systems Is Entering Many New Industries......Page 346
The Limits and Disadvantages of Diversification......Page 348
Choosing a Strategy......Page 352
Strategy in Action 10.2: United Technologies Has an "ACE" in Its Pocket......Page 353
Entering New Industries: Internal New Ventures......Page 355
Entering New Industries: Acquisitions......Page 359
Entering New Industries: Joint Ventures......Page 364
Restructuring......Page 365
Practicing Strategic Management......Page 367
Closing Case: Tyco's Changing Corporate-Level Strategies......Page 368
Opening Case: The Fall of John Thain......Page 370
Stakeholders and Corporate Performance......Page 372
Agency Theory......Page 377
Governance Mechanisms......Page 381
Strategy in Action 11.2: Self-Dealing at Computer Associates......Page 382
Ethics and Strategy......Page 389
Strategy in Action 11.3: Nike: The Sweatshop Debate......Page 391
Running Case: Working Conditions at Walmart......Page 394
Closing Case: The Rise and Fall of Dennis Kozlowski......Page 401
Opening Case: A New Look for Liz Claiborne......Page 403
Implementing Strategy through Organizational Design......Page 405
Building Blocks of Organizational Structure......Page 406
Strategy in Action 12.1: Bob Iger Flattens Disney......Page 410
Strategy in Action 12.2: To Centralize or Decentralize? That Is the Question......Page 412
Strategic Control Systems......Page 413
Organizational Culture......Page 419
Running Case: Sam Walton Created Walmart's Culture......Page 421
Building Distinctive Competencies at the Functional Level......Page 423
Implementing Strategy in a Single Industry......Page 428
Strategy in Action 12.3: Macy's Changes its Geographic Structure......Page 435
Restructuring and Reengineering......Page 439
Practicing Strategic Management......Page 443
Closing Case: Strategy Implementation at Dell Computer......Page 444
Opening Case: Avon Is Calling for a New Global Structure......Page 446
Managing Corporate Strategy Through the Multidivisional Structure......Page 448
Strategy in Action 13.1: SAP's ERP System......Page 458
Implementing Strategy across Countries......Page 459
Running Case: How Walmart Implements Global Expansion......Page 464
Strategy in Action 13.2: Nestlé's Global Matrix Structure......Page 466
Entry Mode and Implementation......Page 467
Information Technology, the Internet, and Outsourcing......Page 471
Strategy in Action 13.3: Oracle's New Approach to Control......Page 474
Strategy in Action 13.4: Li & Fung's Global Supply-Chain Management......Page 475
Practicing Strategic Management......Page 478
Closing Case: Ford's CEO Designs a New Global Structure......Page 479
What Is Case Study Analysis?......Page 482
Analyzing a Case Study......Page 483
Writing a Case Study Analysis......Page 487
The Role of Financial Analysis in Case Study Analysis......Page 489
Conclusion......Page 493
Notes......Page 494
Index......Page 510