Strategic Management: Concepts and Cases

Cover
Title Page
Copyright
ABOUT THE AUTHORS
PREFACE
ACKNOWLEDGEMENTS
Brief Contents
Contents
Chapter 1: What Is Business Strategy?
	What Is Business Strategy?
		Competitive Advantage
		The Strategic Management Process
	What Information and Analysis Guides Strategy Formulation?
		Mission
		External Analysis
		Internal Analysis
	How Are Strategies Formulated?
		Strategy Vehicles for Achieving Strategic Objectives
		Strategy Implementation
	Who Is Responsible for Business Strategy?
		Who Benefits from a Good Business Strategy?
	Summary
	Key Terms
	Review Questions
	Application Exercises
	References
Chapter 2: Analysis of the External Environment: Opportunities and Threats
	Determining the Right Landscape: Defining a Firm’s Industry
	Five Forces that Shape Average Profitability Within Industries
		Rivalry: Competition Among Established Companies
		Buyer Power: Bargaining Power and Price Sensitivity
		Supplier Bargaining Power
		Threat of New Entrants
		Threat of Substitute Products
	Overall Industry Attractiveness
	Where Should We Compete? New Thinking About the Five Forces and Industry Attractiveness
	How the General Environment Shapes Firm and Industry Profitability
		Complementary Products or Services
		Technological Change
		General Economic Conditions
		Demographic Forces
		Ecological/Natural Environment
		Global Forces
		Political, Legal, and Regulatory Forces
		Social/Cultural Forces
	Summary
	Key Terms
	Review Questions
	Application Exercises
	Strategy Tool
	References
Chapter 3: Internal Analysis: Strengths, Weaknesses, and Competitive Advantage
	The Value Chain
	The Resource-Based View
		Resources
		Capabilities
		Priorities
	Creating a Sustainable Competitive Advantage: The VRIO Model of Sustainability
		Value
		Rarity
		Inimitability
		Organized to Exploit
		Assessing Competitive Advantage with VRIO
	The Competitive Advantage Pyramid: A Tool for Assessing Competitive Advantage
		Gathering Data for the Competitive Advantage Pyramid Analysis
		Using the Competitive Advantage Pyramid
	Summary
	Key Terms
	Review Questions
	Application Exercises
	References
Chapter 4: Cost Advantage
	Economies of Scale and Scope
		Ability to Spread Fixed Costs of Production
		Ability to Spread Nonproduction Costs
		Specialization of Machines and Equipment
		Specialization of Tasks and People
		Evaluating Economies of Scale: The Scale Curve
		Economies of Scope
	Learning and Experience
		The Learning Curve
		The Experience Curve
		Experience Curves and Market Share
		How Strategists Use the Scale and Experience Curves to Make Decisions
		Proprietary Knowledge
	Lower Input Costs
		Bargaining Power over Suppliers
		Cooperation with Suppliers
		Location Advantages
		Preferred Access to Inputs
	Different Business Model or Value Chain
		Eliminating Steps in the Value Chain
		Performing Completely New Activities
		Revisiting Tata
	Summary
	Key Terms
	Review Questions
	Application Exercises
	Strategy Tool
	References
Chapter 5: Differentiation Advantage
	What Is Product Differentiation?
	Sources of Product Differentiation
		Different Product/Service Features
		Quality or Reliability
		Convenience
		Brand Image
	How to Find Sources of Product Differentiation
		Customer Segmentation
		Mapping the Consumption Chain
	Building the Resources and Capabilities to Differentiate
		New Thinking: Achieving Low Cost and Differentiation
		Assessing Differentiation Performance
		Strategy in Your Career: What Is Your Unique Value?
	Summary
	Key Terms
	Review Questions
	Application Exercises
	Strategy Tool
	References
Chapter 6: Corporate Strategy
	Corporate Versus Business Unit Strategy
	Creating Value Through Diversification
		Levels of Diversification
		Value Creation: Exploit and Expand Resources and Capabilities
		The Eight Ss
		Destroying Value Through Diversification
	Methods of Diversification
	The Acquisition and Integration Process
		Making the Acquisition
		Integrating the Target
	Summary
	Key Terms
	Review Questions
	Application Exercises
	References
Chapter 7: Vertical Integration and Outsourcing
	What Is Vertical Integration?
		The Value Chain
		Forward Integration and Backward Integration
	Three Key Reasons to Vertically Integrate
		Capabilities
		Coordination
		Control
	Dangers of Vertical Integration
		Loss of Flexibility
		Loss of Focus
	Advantages of Outsourcing
	Dangers of Outsourcing
	Summary
	Key Terms
	Review Questions
	Application Exercises
	Strategy Tool
	References
Chapter 8: Strategic Alliances
	What Is a Strategic Alliance?
		Choosing an Alliance
	Types of Alliances
		Nonequity or Contractual Alliance
		Equity Alliance
		Joint Venture
		Vertical and Horizontal Alliances
	Ways to Create Value in Alliances
		Combine Unique Resources
		Pool Similar Resources
		Create New, Alliance-Specific Resources
		Lower Transaction Costs
	The Risks of Alliances
		Hold-Up
		Misrepresentation
		Building Trust to Lower the Risks of Alliances
	Building an Alliance Management Capability
		Improves Knowledge Management
		Increases External Visibility
		Provides Internal Coordination
		Facilitates Intervention and Accountability
	Summary
	Key Terms
	Review Questions
	Application Exercises
	Strategy Tool
	References
Chapter 9: International Strategy
	The Globalization of Business
	Why Firms Expand Internationally
		Growth
		Efficiency
		Managing Risk
		Knowledge
		Responding to Customers or Competitors
	Where Firms Should Expand
		Cultural Distance
		Administrative Distance
		Geographic Distance
		Economic Distance
	How Firms Compete Internationally
		Multidomestic Strategy—Adapt to Fit the Local Market
		Global Strategy—Aggregate and Standardize to Gain Economies of Scale
		Arbitrage Strategy
		Combining International Strategies
	How a Firm Gets into a Country: Modes of Entry
		Exporting
		Licensing and Franchising
		Alliances and Joint Ventures
		Wholly Owned Subsidiaries
		Choosing a Mode of Entry
	Summary
	Key Terms
	Review Questions
	Application Exercises
	Strategy Tool
	References
Chapter 10: Innovative Strategies That Change the Nature of Competition
	What Is an Innovative Strategy?
		Incremental Versus Radical Innovation
	Categories of Innovative Strategies
		Reconfiguring the Value Chain to Eliminate Activities (Disintermediation)
		Low-End Disruptive Innovations
		High-End/Top-Down Disruptive Innovations
		Reconfiguring the Value Chain to Allow for Mass Customization
		Blue Ocean Strategy—Creating New Markets by Targeting Nonconsumers
		Create a Platform to Coordinate and Share Private Assets
		Free Business/Revenue Models
		Hypercompetition: The Accelerating Pace of Innovation
	Innovation and the Product/Business/Industry Life Cycle (S-Curve)
		Introduction Stage
		Growth Stage
		Maturity Stage
		Decline Stage
	Summary
	Key Terms
	Review Questions
	Application Exercises
	References
Chapter 11: Competitive Strategy and Sustainability
	Understanding the Competitive Landscape
		Strategic Groups and Mobility Barriers
		Strategy Canvas
	Evaluating the Competition
		What Drives the Competitor?
		What Is the Competitor Doing or Capable of Doing?
		How Will a Competitor Respond to Specific Moves?
		Using Game Theory to Evaluate Specific Moves
	Principles of Competitive Strategy
		Know Your Strengths and Weaknesses
		Bring Strength Against Weakness
		Protect and Neutralize Vulnerabilities
		Develop Strategies That Cannot Be Easily Copied
	Competitive Actions for Different Market Environments
		Competition Under Monopoly
		Competition Under Oligopoly
		“Perfect” Competition
		Dynamic Environments
	Sustaining Competitive Advantage
	Summary
	Key Terms
	Review Questions
	Application Exercises
	Strategy Tool
	References
Chapter 12: Implementing Strategy
	Alignment: The 7 S Model
		Strategy
		Structure
		Systems
		Staffing
		Skills
		Style
		Shared Values
	Strategic Change
		The Three Phases of Change
		The Eight Steps to Successful Change
	Measurement
		Line of Sight
	Summary
	Key Terms
	Review Questions
	Application Exercises
	References
Chapter 13: Corporate Governance and Ethics
	The Purposes of the Corporation
		The Shareholder Primacy Model
		The Stakeholder Model
	Governance: Boards and Incentives
		The Board of Directors
		Compensation and Incentives
	Corporate Ethics
		Corporate Culture and Ethics
		Creating an Ethical Climate
	Summary
	Key Terms
	Review Questions
	Application Exercises
	References
Chapter 14: Strategy and Society
	Strategy and Social-Value Organizations
	The Tools of Strategy and the Creation of Social Value
		External Analysis and the Value Net
		Internal Analysis: Resources and Capabilities
		Cost Leadership, Differentiation, and Innovative Strategies
		Corporate Strategy and Alliances
		Implementation and Governance
	Strategy and Social Change
		Corporate Social Responsibility (CSR)
		CSR and Firm Performance
	Social Entrepreneurship
		Types of Social Entrepreneurship
		Skills of Social Entrepreneurs
		Challenges in Social Entrepreneurship
	Summary
	Key Terms
	Review Questions
	Application Exercises
	References
GLOSSARY
INDEX
	Company Index
	Author Index
	Subject Index
CASES
	CASE 01: Walmart Stores: Gaining and Sustaining a Competitive Advantage
	CASE 02: Coca-Cola and Pepsi: The Shifting Landscape of the Carbonated Soft Drink Industry
	CASE 03A: ESPN in 2015: Continued Dominance in Sports Television
	CASE 03B: ESPN in 2019: A Network in Search of a Solution
	CASE 04: Southwest Airlines: Flying High with Low Costs
	CASE 05: Harley-Davidson: Growth Challenges Ahead
	CASE 06: Ecolab and the Nalco Acquisition: Sustainable Advantage Through Shared Values
	CASE 07: Nike: Sourcing and Strategy in Athletic Footwear
	CASE 08: AT&T and Apple: A Strategic Alliance
	CASE 09: Samsung: Overtaking Philips,  Panasonic, and Sony as the Leader in the Consumer Electronics Industry
	CASE 10: Tesla Motors: Disrupting the Auto Industry
	CASE 11: Smartphone Wars in 2013
	CASE 12: Lincoln Electric: Aligning for Global Growth
	CASE 13: ICARUS Revisited: The Rise and Fall of Valeant Pharmaceuticals
	CASE 14: Safe Water Network: Mastering the Model at Dzemeni
	CASE 15: Facebook at a Crossroads: Election
	CASE 16: CVS in 2015: From Neighborhood Pharmacy Provider to Healthcare Company
	CASE 17: UberTechnologies Inc
ONLINE CASES
	Amazon Verses Walmart: The Battle for Online Dominance
	Intel (A): Dominance in Microprocessors
	Intel (B): Responding to the Smart Phone Threat
	Tabitha’s Way Local Food Pantry
	Vivint SmartHome: Finding New Pathways for Growth
	Skype: Competing with Free
	Sears Holdings Corporation: In Need of a Turn around Strategy
	Redbox: What’s Next?
	What Will Happen to Grandma?
	Netflix, Redbox, and Hulu
EULA