Strategic Management: Competitiveness and Globalisation

Half Title Page
Title Page
Imprint Page
Brief Contents
Contents
Guide to the text
Guide to the online resources
Preface
About the Authors
Acknowledgements
Part 1:  Strategic management input
	Chapter 1: Strategic management and strategic competitiveness
		Opening case study: McDonald’s and brand recognition
		The strategic management process
		The competitive landscape
		The global economy
		Strategic focus: Starbucks is a new economy multinational yet has had failures in key markets
		The march of globalisation
		Technology and technological changes
		Strategic focus: The core of Apple: technology and innovation
		The I/O model of above-average returns
		The resource-based model of above-average returns
		Vision and mission
		Vision
		Mission
		Stakeholders
		Classifications of stakeholders
		Strategic leaders
		The work of effective strategic leaders
		Predicting outcomes of strategic decisions
		Ethical dimensions
		Study tools
	Chapter 2: The external environment: opportunities, threats, industry competition and competitor analysis
		Opening case study: Drilling for oil: risks and rewards
		The general, industry and competitor environments
		External environmental analysis
		Scanning
		Monitoring
		Forecasting
		Assessing
		Segments of the general environment
		The demographic segment
		The economic segment
		The political/legal segment
		The sociocultural segment
		The technological segment
		The global segment
		The physical environment segment
		Strategic focus: Target (Tar-zhey) is trying to navigate in a new and rapidly changing competitive landscape
		Industry environment analysis
		Threat of new entrants
		Bargaining power of suppliers
		Bargaining power of buyers
		Threat of substitute products
		Strategic focus: German performance/luxury cars: if you’ve seen one, have you seen them all?
		Intensity of rivalry among competitors
		Interpreting industry analyses
		Strategic groups
		Competitor analysis
		Ethical considerations
		Study tools
	Chapter 3: The internal organisation: resources, capabilities, core competencies and competitive advantages
		Opening case study: Large pharmaceutical companies, big data analytics, artificial intelligence and core competencies: a brave new world
		Analysing the internal organisation
		The context of internal analysis
		Creating value
		The challenge of analysing the internal organisation
		Resources, capabilities and core competencies
		Strategic focus: Tangible and intangible resources as the base for core competencies
		Resources
		Capabilities
		Core competencies
		Building core competencies
		Strategic focus: Procter & Gamble: using capabilities and core competencies to create value for customers
		The four criteria of sustainable competitive advantage
		Value chain analysis
		Competencies, strengths, weaknesses and strategic decisions
		Study tools
Part 2: Strategic actions: Strategy formulation
	Chapter 4: Business-level strategy
		Opening case study: Clonakilla Wines in a quality niche position
		Customers: their relationship with business-level strategies
		Effectively managing relationships with customers
		Reach, richness and affiliation
		Who: determining the customers to serve
		What: determining which customer needs to satisfy
		How: determining core competencies necessary to satisfy customer needs
		The purpose of a business-level strategy
		Business models and their relationship with business-level strategies
		Types of business-level strategies
		Cost leadership strategy
		Differentiation strategy
		Focus strategies
		Integrated cost leadership/differentiation strategy
		Strategic focus: Apple vs Samsung vs Huawei: the battle for smart technology
		Study tools
	Chapter 5: Competitive dynamics
		Opening case study: Tesco PLC: a case study in competitive behaviour
		A model of competitive rivalry
		Competitor analysis
		Market commonality
		Strategic focus: Competitive rivalry in fast fashion: a constant stream of actions and responses
		Resource similarity
		Drivers of competitive actions and responses
		Competitive rivalry
		Strategic and tactical actions
		Likelihood of attack
		First-mover incentives
		Organisational size
		Quality
		Likelihood of response
		Type of competitive action
		Actor’s reputation
		Dependence on the market
		Competitive dynamics
		Fast-cycle markets
		Strategic focus: The emergence of competitive rivalry among battery manufacturers: who will establish the most attractive market position?
		Standard-cycle markets
		Study tools
	Chapter 6: Corporate-level strategy
		Opening case study: The quintessential diversified organisation
		Purpose of corporate-level strategies
		Levels of diversification
		Low levels of diversification
		Moderate and high levels of diversification
		Strategic focus: Acciona’s related diversification and renewable energy growth
		Reasons for diversification
		Value-creating diversification: related constrained and related linked diversification
		Operational relatedness: sharing activities
		Corporate relatedness: transferring of core competencies
		Market power
		Strategic focus: Alphabet’s evolution through diversification
		Simultaneous operational relatedness and corporate relatedness
		Unrelated diversification
		Efficient internal capital market allocation
		Restructuring of assets
		Value-neutral diversification: incentives and resources
		Incentives to diversify
		Resources and diversification
		Value-reducing diversification: managerial motives to diversify
		Study tools
	Chapter 7: Acquisition and restructuring strategies
		Opening case study: Strategic acquisitions and a people-focused integration of those acquisitions are vital capabilities of Atlassian
		The popularity of merger and acquisition strategies
		Mergers, acquisitions and takeovers: what are the differences?
		Reasons for acquisitions
		Increased market power
		Overcoming entry barriers
		Strategic focus: Cross-border acquisitions by organisations from emerging economies: leveraging resources to gain a larger global footprint and market power
		Cost of new product development and increased speed to market
		Lower risk compared to developing new products
		Increased diversification
		Reshaping the organisation’s competitive scope
		Learning and developing new capabilities
		Problems in achieving acquisition success
		Integration difficulties
		Inadequate evaluation of target
		Large or extraordinary debt
		Inability to achieve synergy or harvest benefits
		Too much diversification
		Managers overly focused on acquisitions
		Too large
		Effective acquisitions
		Restructuring
		Downsizing
		Downscoping
		Leveraged buyouts
		Restructuring outcomes
		Study tools
	Chapter 8: International strategy
		Opening case study: An international strategy powers ABB’s future
		Identifying international opportunities
		Incentives to use international strategy
		Three basic benefits of international strategy
		International strategy types
		International business-level strategy
		International corporate-level strategy
		Environmental trends
		Liability of foreignness
		Regionalisation
		Choice of international entry mode
		Exporting
		Licensing
		Strategic alliances
		Acquisitions
		New wholly owned subsidiaries
		Dynamics of mode of entry
		Strategic focus: Mondelez International: a global leader in snack foods
		Risks in an international environment
		Political risks
		Economic risks
		The challenge of international strategies
		Managing international strategies: size and complexity
		Limits to international expansion
		Strategic focus: Mexico’s FEMSA: building its international prowess
		Strategic competitiveness outcomes
		International diversification and returns
		Enhanced innovation
		Study tools
	Chapter 9: Cooperative strategy
		Opening case study: Global cars, with a twist
		Strategic alliances as a primary type of cooperative strategy
		Types of major strategic alliances
		Strategic focus: Samsung Electric is using diversifying alliances to reduce its dependence on Google’s Android operating system
		Reasons organisations develop strategic alliances
		Strategic focus: Industrial clusters: geographic centres for collaborative partnering
		Competition-reducing strategy
		Business-level cooperative strategy
		Complementary strategic alliances
		Uncertainty-reducing strategy
		Competition response strategy
		Assessing business-level cooperative strategies
		Corporate-level cooperative strategy
		Diversifying strategic alliance
		Synergistic strategic alliance
		Franchising
		Assessing corporate-level cooperative strategies
		International cooperative strategy
		Network cooperative strategy
		Alliance network types
		Competitive risks with cooperative strategies
		Managing cooperative strategies
		Study tools
Part 3: Strategic actions: Strategy implementation
	Chapter 10: Corporate governance
		Opening case study: General Electric’s complex diversification strategy makes evaluation difficult for board directors
		Separation of ownership and managerial control
		Agency relationships
		Product diversification as an example of an agency problem
		Agency costs and governance mechanisms
		Ownership concentration
		Ownership structures of companies in Australia
		The increasing influence of institutional owners
		Board of directors
		Board of directors process
		Enhancing the effectiveness of the board of directors
		Executive compensation
		The effectiveness of executive compensation
		Strategic focus: Has more governance scrutiny made large CEO compensation packages more reasonable?
		Market for corporate control
		International corporate governance
		Corporate governance in Australia
		Corporate governance in Germany and Japan
		Corporate governance in China
		Corporate governance in Spain
		Governance mechanisms and ethical behaviour
		Strategic focus: Rewarding top executives of one of the most poorly governed banks in the world: Westpac
		Corporate governance and organisation performance
		Corporate social responsibility
		Study tools
	Chapter 11: Organisational structure and controls
		Opening case study: Changing McDonald’s organisational structure and controls: a path to improved performance
		Organisational structure and controls
		Organisational structure
		Organisational controls
		Relationships between strategy and structure
		Evolutionary patterns of strategy and organisational structure
		Simple structure
		Functional structure
		Multi-divisional structure
		Matches between business-level strategies and the functional structure
		Matches between corporate-level strategies and the multi-divisional structure
		Strategic focus: Globalisation and beer
		Strategic focus: General Electric’s decline, new strategy and reorganisation
		Matches between international strategies and worldwide structure
		Matches between cooperative strategies and network structures
		Implementing business-level cooperative strategies
		Implementing corporate-level cooperative strategies
		Implementing international cooperative strategies
		Study tools
	Chapter 12: Strategic leadership
		Opening case study: Meg Whitman: a pioneering strategic leader
		Strategic leadership and style
		The role of executive managers
		Executive management teams
		Managerial succession
		Strategic focus: Women in leadership
		Key strategic leadership actions
		Determining strategic direction
		Effectively managing the organisation’s resource portfolio
		Sustaining an effective organisational culture
		Strategic focus: Organisational culture: is it really that important?
		Emphasising ethical practices
		Leadership and corporate social responsibility
		Establishing balanced organisational controls
		Study tools
	Chapter 13: Strategic entrepreneurship
		Opening case study: Today it is gas and diesel: tomorrow it is likely to be electric vehicles, plug-in hybrids, and driverless cars and trucks
		Entrepreneurship and entrepreneurial opportunities
		Innovation
		Product innovation
		Entrepreneurs
		International entrepreneurship
		Internal innovation
		Incremental and radical innovation
		Implementing internal innovations
		Cross-functional product development teams
		Facilitating integration and innovation
		Creating value from internal innovation
		Innovation through cooperative strategies
		Strategic focus: Social networking websites facilitate innovation: application software innovation
		Innovation through acquisitions
		Strategic focus: Will these acquisitions lead to innovation success or to strategic failure?
		Creating value through strategic entrepreneurship
		Study tools
Part 4: Case studies
	Introduction: A summary of the case analysis process
	Case 1: JB Hi-Fi Ltd acquisition of The Good Guys
	Case 2: Challenges at Australia Post
	Case 3: Nyrstar NV: a case study in a failed vertical integration strategy
	Case 4: Pfizer
	Case 5: Atlassian
	Case 6: The Sunshine Coast UNESCO Biosphere Reserve and Smart City: a new governance opportunity in a post-pandemic world?
	Case 7: CrossFit at the crossroads
	Case 8: The movie exhibition industry: 2018 and beyond
	Case 9: Pacific Drilling: the preferred offshore driller
	Case 10: The trivago way - growing without growing up?
	Case 11: The Volkswagen emissions scandal
	Case 12: Otis in the global elevator industry
	Case 13: Dick Smith: the fall of an Aussie icon
Glossary
Name Index
Subject Index