Strategic Management: A Competitive Advantage Approach, Concepts and Cases, Global Edition, 17th edition

Strategic Management: A Competitive Advantage Approach, Concepts and Cases shows how to gain and sustain a competitive advantage in todays complex business world. The text helps you develop your own cuttingedge strategy through skilldeveloping exercises. It also offers coverage on issues related to business ethics, social responsibility, global operations, and sustainability. The 17th Edition features updated research, cases and examples. As a result, youll be able to effectively formulate and implement a plan that can lead to a sustainable competitive advantage for any type of business.

GLOBAL EDITION STRATEGIC MANAGEMENT A Competitive Advantage Approach Concepts and Cases 17th Edition Fred R David, Forest R David, and Meredith E David STRATEGIC MANAGEMENT Concepts and Cases A COMPETITIVE ADVANTAGE APPROACH This page is intentionally left blank STRATEGIC MANAGEMENT SEVENTEENTH EDITION GLOBAL EDITION Concepts and Cases A COMPETITIVE ADVANTAGE APPROACH Fred R David Francis Marion University Florence, South Carolina Forest R David Strategic Planning Consultant Ocean Isle Beach, North Carolina Meredith E David Baylor University Waco, Texas Please contact https://support.pearson.com/getsupport/s/contactsupport with any queries on this content Cover Image: artacet/Shutterstock Acknowledgments of third-party content appear on the appropriate page within the text Pearson Education Limited KAO Two KAO Park Hockham Way Harlow Essex CM17 9SR United Kingdom and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2023 All Rights Reserved The rights of Fred R David, Forest R David, and Meredith E David to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 Authorized adaptation from the United States edition, entitled Strategic Management: Concepts and Cases, 17th Edition, ISBN 978-0-135-17394-7 by Fred R David, Forest R David, and Meredith E David, published by Pearson Education © 2020 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS For information regarding permissions, request forms, and the appropriate contacts within the Pearson Education Global Rights and Permissions department, please visit www.pearsoned.com/permissions/ All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners This eBook is a standalone product and may or may not include all assets that were part of the print version It also does not provide access to other Pearson digital products like Revel The publisher reserves the right to remove any material in this eBook at any time British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN 10: 1292441402 ISBN 13: 9781292441405 eBook ISBN 13: 9781292441351 Typeset in by B2R Technologies Pvt Ltd Brief Contents Preface 15 Acknowledgments 25 About the Authors 27 PART Overview of Strategic Management Chapter 30 The Nature of Strategic Management 31 THE COHESION CASE: COCA-COLA COMPANY, 2018 PART Strategy Formulation Chapter Chapter Chapter Chapter Chapter PART PART 228 Implementing Strategies: Management and Marketing Issues 229 Implementing Strategies: Finance and Accounting Issues 269 Strategy Evaluation and Governance Key Strategic-Management Topics Chapter 10 Chapter 11 PART Business Vision and Mission 71 The External Assessment 93 The Internal Assessment 123 Strategies in Action 155 Strategy Analysis and Choice 191 Strategy Evaluation and Governance Chapter PART 70 Strategy Implementation Chapter Chapter 56 298 299 326 Business Ethics, Environmental Sustainability, and Corporate Social Responsibility Global and International Issues 351 Strategic-Management Case Analysis 376 How to Prepare and Present a Case Analysis Glossary 327 377 659 Name Index Subject Index 667 673 This page is intentionally left blank Contents Preface 15 Acknowledgments 25 About the Authors 27 Exercise 1B: Enter Coca-Cola Vitals into the Strategic Planning Template 66 Set 2: Strategic Planning for My University 66 Exercise 1C: Perform SWOT Analysis for My University 66 Set 3: Strategic Planning to Enhance My Employability 67 Exercise 1D: Perform SWOT Analysis on Myself 67 Set 4: Individual versus Group Strategic Planning 67 Exercise 1E: How Detrimental Are Various Pitfalls in Strategic Planning? 67 PART Overview of Strategic Management 30 Chapter The Nature of Strategic Management 31 What Is Strategic Management? PART Strategy Formulation 32 Chapter Business Vision and Mission EXEMPLARY STRATEGIST SHOWCASED: COACH VINCE LOMBARDI 32 Strategic Planning 33 • The Strategic-Management Model 34 Stages of Strategic Management 35 Integrating Analysis and Intuition 36 GLOBAL CAPSULE 1: MOBIKE: GLOBAL BIKE RENTING TAKES OFF LIKE A JET PLANE 38 38 Competitive Advantage 38 • Strategists 38 • Vision and Mission Statements 39 • External Opportunities and Threats 40 • Internal Strengths and Weaknesses 40 • Long-Term Objectives 41 • Strategies 41 • SWOT Analysis 42 • Annual Objectives 42 • Policies 44 • Nonfinancial Benefits The Process of Developing Vision and Mission Statements 81 45 Evaluating and Writing Mission Statements 81 IMPLICATIONS FOR STRATEGISTS 83 IMPLICATIONS FOR STUDENTS 84 Chapter Summary 84 Key Terms and Concepts 85 Issues for Review and Discussion IMPLICATIONS FOR STRATEGISTS 49 IMPLICATIONS FOR STUDENTS 50 85 ASSURANCE-OF-LEARNING EXERCISES 52 MINI-CASE ON TESLA, INC (TSLA): WHAT AMERICAN COMPANY DOES THE BEST JOB OF STRATEGIC PLANNING, AND HOW IS IT DONE? 53 Web Resources 54 Current Readings 54 Endnotes 55 THE COHESION CASE: COCA-COLA COMPANY, 2018 ASSURANCE-OF-LEARNING EXERCISES 65 75 The Importance (Benefits) of Vision and Mission Statements 79 Why Some Firms Do No Strategic Planning 46 Pitfalls in Strategic Planning 46 Comparing Business and Military Strategies 46 Developing Employability Skills 48 Chapter Summary 51 Key Terms and Concepts 51 Issues for Review and Discussion Vision Statement Analysis Mission Statements: What Is Our Business? 75 Characteristics of a Mission Statement 76 Components of a Mission Statement 77 ETHICS CAPSULE 2: FACEBOOK: CHANGING OUR MISSION TO ENHANCE OUR ETHICS AND INTEGRITY 79 Benefits of Engaging in Strategic Management 44 45 EXEMPLARY STRATEGIST SHOWCASED: FREDERICK W SMITH, FOUNDER AND CEO OF FEDEX CORPORATION 72 GLOBAL CAPSULE 2: LINKEDIN: CLEAR CORE VALUES, VISION, AND MISSION LEAD TO GLOBAL PROMINENCE 73 Vision Statements: What Do We Want to Become? 73 Characteristics of a Vision Statement 74 Adapting to Change 37 Financial Benefits 71 Core Values Statements: What Is Our Foundation? 72 ETHICS CAPSULE 1: WHAT ETHICS VARIABLE IS MOST IMPORTANT IN DOING BUSINESS? 35 Key Terms in Strategic Management 70 56 Set 1: Strategic Planning for Coca-Cola 65 Exercise 1A: Gather Strategy Information for Coca-Cola Company 65 86 Set 1: Strategic Planning for Coca-Cola 86 Exercise 2A: Develop an Improved Coca-Cola Vision Statement 86 Exercise 2B: Develop an Improved Coca-Cola Mission Statement 86 Exercise 2C: Compare Coca-Cola’s Mission Statement to a Rival Firm’s 87 Set 2: Strategic Planning for My University 87 Exercise 2D: Compare Your University’s Vision and Mission Statements to Those of a Rival Institution 87 Set 3: Strategic Planning for Myself 87 Exercise 2E: Develop a Vision and Mission Statement for Yourself 87 Set 4: Individual versus Group Strategic Planning 88 Exercise 2F: What Is the Relative Importance of Each of the Nine Components of a Mission Statement? 88 CONTENTS MINI-CASE ON FORD MOTOR COMPANY (F): EVALUATE FORD’S VISION FOR THE FUTURE AND MISSION FOR THE PRESENT 89 Set 4: Individual versus Group Strategic Planning 118 Exercise 3H: What External Forces Are Most Important in Strategic Planning? 118 Web Resources 90 Current Readings 90 Endnotes 91 MINI-CASE ON SAM’S CLUB: SAM’S CLUB IS BOOMING IN CHINA 119 Chapter The External Assessment 93 EXEMPLARY STRATEGIST SHOWCASED: BEN SILBERMANN, CEO AND COFOUNDER OF PINTEREST 94 The External Assessment Phase of Strategy Formulation 95 Key External Forces 95 • The Actionable-QuantitativeComparative-Divisional (AQCD) Test 95 10 External Forces that Impact Organizations 96 Economic Forces 96 • Social, Cultural, Demographic, and Environment (SCDE) Forces 97 • Political, Governmental, and Legal Forces 97 ETHICS CAPSULE 3: PRESERVE ALASKA WILDLIFE OR BOOST ALASKA ECONOMY? 98 Technological Forces 99 • Competitive Forces 100 GLOBAL CAPSULE 3: WHAT COMPANY IS GROWING FASTEST GLOBALLY? 101 Porter’s Five-Forces Model 101 Rivalry among Competing Firms 102 • Potential Entry of New Competitors 103 • Potential Development of Substitute Products 103 • Bargaining Power of Suppliers 103 • Bargaining Power of Consumers 104 Key Sources of Information for an External Audit Forecasting and Making Assumptions 105 Making Assumptions 105 106 The External Factor Evaluation Matrix 107 Steps to Develop an EFE Matrix 107 • Step 1: Develop a Full and Narrow List of Key External Factors 107 • Step 2: Assign Weights to Key External Factors 108 • Step 3: Assign Ratings to Key External Factors 108 • Step 4: Obtain Weighted Scores 108 • Step 5: Obtain Total Weighted Score 108 • An Example EFE Matrix 109 The Competitive Profile Matrix 110 IMPLICATIONS FOR STRATEGISTS 112 IMPLICATIONS FOR STUDENTS 113 Chapter Summary 114 Key Terms and Concepts 114 Issues for Review and Discussion Chapter The Internal Assessment 123 The Internal Assessment Phase of Strategy Formulation 124 EXEMPLARY STRATEGIST SHOWCASED: ELON MUSK, CEO AND COFOUNDER OF TESLA, INC AND SPACE EXPLORATION TECHNOLOGIES CORPORATION (SPACEX) 124 Resource-Based View 125 • Key Internal Forces 125 ETHICS CAPSULE 4: THE SAGEBRUSH LIZARD VERSUS THE BIG OIL MAN 126 Management 126 Planning 127 • Organizing 127 • Motivating 127 • Controlling 128 • Integrating Strategy and Culture 129 • Management Audit Checklist of Questions 130 Marketing 131 Marketing Research and Target Market Analysis 131 • Product Planning 132 • Pricing 133 • Promotion 133 GLOBAL CAPSULE 4: BITCOIN: THE NEW GLOBAL CURRENCY 134 Channels of Distribution 134 • Checklist of Questions 135 Marketing Audit Finance and Accounting 135 Finance and Accounting 135 • Financial Ratios • Finance and Accounting Audit Checklist 138 136 Management Information Systems 140 Business Analytics 140 The Internal Factor Evaluation (IFE) Matrix 141 The Actionable-Quantitative-Comparative-Divisional (AQCD) Test 141 • Steps in Developing an IFE Matrix 142 • Step 1: Develop a Full and Narrow List of Key Internal Factors 142 • Step 2: Assign Weights to Key Internal Factors 142 • Step 3: Assign Ratings to Key Internal Factors 142 • Step 4: Obtain Weighted Scores 143 • Step 5: Obtain Total Weighted Score 143 • An Example IFE Matrix 144 IMPLICATIONS FOR STRATEGISTS 145 IMPLICATIONS FOR STUDENTS 146 114 ASSURANCE-OF-LEARNING EXERCISES Web Resources 120 Current Readings 120 Endnotes 121 115 Set 1: Strategic Planning for Coca-Cola 115 Exercise 3A: Develop an EFE Matrix for Coca-Cola 115 Exercise 3B: Develop a Competitive Profile Matrix for Coca-Cola 116 Set 2: Strategic Planning for My University 116 Exercise 3C: Develop an EFE Matrix for Your College or University 116 Exercise 3D: Develop a Competitive Profile Matrix for Your College or University 116 Set 3: Strategic Planning to Enhance My Employability 117 Exercise 3E: How Competitive Is Your State among All States for Finding a Job? 117 Exercise 3F: Compare and Contrast CareerBuilder, Glassdoor, Monster Jobs, and ZipRecruiter 117 Exercise 3G: A Template Competency Test 117 Chapter Summary 146 Key Terms and Concepts 147 Issues for Review and Discussion 147 ASSURANCE-OF-LEARNING EXERCISES 149 Set 1: Strategic Planning for Coca-Cola 149 Exercise 4A: Perform a Financial Ratio Analysis for Coca-Cola 149 Exercise 4B: Construct an IFE Matrix for Coca-Cola 149 Set 2: Strategic Planning for My University 149 Exercise 4C: Construct an IFE Matrix for Your College or University 149 Set 3: Strategic Planning for Myself 150 Exercise 4D: Construct an IFE Matrix for Yourself 150 Set 4: Individual versus Group Strategic Planning 150 Exercise 4E: What Internal Functional Areas Are Most Important to Examine in Strategic Planning? 150 CONTENTS Exercise 5D: The Key to Personal Strategic Planning: Simultaneously Build and Borrow 185 Set 4: Individual versus Group Strategic Planning 185 Exercise 5E: What Is the Best Mix of Strategies for Coca-Cola Company? 185 MINI-CASE ON PROCTER & GAMBLE (P&G) COMPANY: WHAT COMPANY IS BEST MANAGED IN THE UNITED STATES? 151 Web Resources 152 Current Readings 152 Endnotes 153 MINI-CASE ON FACEBOOK (FB): SHOULD FACEBOOK ACQUIRE, COOPERATE, OR JUST STAY FIERCE RIVALS WITH LINKEDIN? 187 Chapter Strategies in Action 155 Long-Term Objectives 156 Characteristics and Benefits of Objectives 156 EXEMPLARY STRATEGIST SHOWCASED: TIM COOK, CEO OF APPLE, INC 156 Financial versus Strategic Objectives 157 • Avoid Managing by Crisis, Hope, Extrapolation, and Mystery (CHEM) 158 Types of Strategies 158 Levels of Strategies 160 Market Penetration 161 Stage 1: The Input Stage 194 • Stage 2: The Matching Stage 194 • Stage 3: The Decision Stage 194 163 • Market Development 163 The SWOT Matrix 195 GLOBAL CAPSULE 5: HOW CAN A FIRM DETERMINE WHERE TO INITIATE NEW BUSINESS? USE GROSS DOMESTIC PRODUCT (GDP) AS A GUIDE 164 164 Diversification Strategies Defensive Strategies Retrenchment 165 166 • Unrelated Diversification Related Diversification Divestiture 167 Value Chain Analysis and Benchmarking Benchmarking • Liquidation 168 169 171 Michael Porter’s Two Generic Strategies Cost Leadership 166 166 166 • 172 • 192 The Strategy-Formulation Analytical Framework 193 163 Product Development Strategy Analysis and Choice 191 The Process of Generating and Selecting Strategies 193 Forward Integration 160 • Backward Integration • Horizontal Integration 162 Intensive Strategies Chapter Strategy Analysis and Choice EXEMPLARY STRATEGIST SHOWCASED: DAVID GREEN, CEO OF HOBBY LOBBY 192 159 Integration Strategies Web Resources 187 Current Readings 188 Endnotes 188 Differentiation Means for Achieving Strategies 172 174 ETHICS CAPSULE 5: ARE CEOS LESS ETHICAL TODAY THAN IN THE PAST? 176 178 Educational Institutions 178 • Governmental Agencies and Departments 179 • Small Firms 179 IMPLICATIONS FOR STRATEGISTS 180 IMPLICATIONS FOR STUDENTS 181 SPACE Matrix The Boston Consulting Group (BCG) Matrix 202 The Internal-External (IE) Matrix 206 The Grand Strategy Matrix 208 The Decision Stage: The QSPM 210 214 GLOBAL CAPSULE 6: INDIA’S ECONOMY IS BOOMING Cultural Aspects of Strategy Analysis and Choice 216 The Politics of Strategy Analysis and Choice 216 IMPLICATIONS FOR STRATEGISTS 217 IMPLICATIONS FOR STUDENTS 218 Chapter Summary 218 Key Terms and Concepts 219 Issues for Review and Discussion 219 ASSURANCE-OF-LEARNING EXERCISES 182 ASSURANCE-OF-LEARNING EXERCISES Steps in Performing SPACE Analysis 198 • Quadrants 199 • SPACE Matrix 202 How to Estimate Costs Associated with Recommendations 214 BUILD from Within to Grow 174 • BORROW from Others to Grow 174 • BUY Others to Grow 176 Chapter Summary 181 Key Terms and Concepts 182 Issues for Review and Discussion The Strategic Position and Action Evaluation (SPACE) Matrix 197 Positive Features and Limitations of the QSPM 173 First-Mover Advantages 177 Strategic Management in Nonprofit and Small Firms ETHICS CAPSULE 6: AS WE STRATEGIZE WE MUST NOT JEOPARDIZE ANIMAL WELFARE 196 183 Set 1: Strategic Planning for Coca-Cola 183 Exercise 5A: Develop Hypothetical Coca-Cola Company Strategies 183 Exercise 5B: Should Coca-Cola Build, Borrow, or Buy in 2020–2021? 184 Set 2: Strategic Planning for My University 184 Exercise 5C: Develop Alternative Strategies for Your University 184 Set 3: Strategic Planning for Myself 185 221 Set 1: Strategic Planning for Coca-Cola 221 Exercise 6A: Perform a SWOT Analysis for Coca-Cola 221 Exercise 6B: Develop a SPACE Matrix for Coca-Cola 221 Exercise 6C: Develop a BCG Matrix for Coca-Cola 222 Exercise 6D: Develop a QSPM for Coca-Cola 222 Set 2: Strategic Planning for My University 222 Exercise 6E: Develop a BCG Matrix for My University 222 Set 3: Strategic Planning to Enhance My Employability 223 Exercise 6F: Perform QSPM Analysis on Myself 223 Exercise 6G: A Template Competency Test 223 Set 4: Individual versus Group Strategic Planning 224 214 666 GLOSSARY Maintaining what a firm does especially well, compared to rival firms—by (1) continually adapting to changes in external trends and events and internal capabilities, competencies, and resources; and (2) effectively formulating, implementing, and evaluating strategies that capitalize upon those factors Sustained competitive advantage The 1 = effect; when everyone pulls together as a team, the results can exceed individuals working separately Synergy Activity #3 in the strategy-evaluation process; involves a firm making changes to competitively reposition a firm for the future Taking corrective actions moditized or outsourced by firms, while downstream activities related to consumer behavior are becoming the primary means for gaining and sustaining competitive advantage The business of a firm, where total revenues minus total costs of all activities undertaken to develop, produce, and market a product or service yields value Value chain Value chain analysis (VCA) The process whereby a firm deter- mines the costs associated with organizational activities from purchasing raw materials to manufacturing product(s) to marketing those products, and compares these costs to rival firms using benchmarking Vertical consistency of objectives Compatibility of objectives A component of the mission statement; is the firm technologically current? from the CEO (corporate level) down to the presidents (divisional level) on down to the managers (functional level) An activity to determine ahead of time whether a certain product or service or selling approach will be cost effective; also used to forecast future sales of new products Vertical integration A combination of three strategies: backward, Technology Test marketing Total Attractiveness Scores (TAS) In a QSPM, the product of multiplying the weights by the Attractiveness Scores in each row The values indicate the relative attractiveness of each alternative strategy, considering only the impact of the adjacent external or internal critical success factor Treasury stock An item in the equity portion of a balance sheet that reveals the dollar amount of the firm’s common stock owned by the company itself Unrelated diversification When a firm acquires a new business whose value chains are so dissimilar that no competitively valuable cross-business relationships exist The primary means for gaining and sustaining competitive advantages for most companies are shifting downstream Recent research by Dawar reveals that in most industries today, upstream activities such as supply chain management, production, and logistics, are being com- Upstream activities forward, and horizontal integration, allowing a firm to gain control over distributors, suppliers, and/or competitors respectively Vision statement A one-sentence statement that answers the question, “What we want to become?” Wa In Japan, this term stresses group harmony and social cohesion The act of telling authorities about some unethical or illegal activities occurring within an organization of which you are aware Whistle-blowing Strategies that result from matching a firm’s internal weaknesses with its external opportunities WO strategies romance An intimate relationship between two truly consenting employees, as opposed to sexual harassment, which the EEOC defines broadly as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature Workplace Strategies that result from matching a firm’s internal weaknesses with its external threats WT strategies Name Index A Abe, Prime Minister Shinzo, 362 Abouk, Rahi, 324 Aeppel, Timothy, 153 Aggarwal, Vikas A., 120 Aguirre, DeAnne, 176 Aime, Federico, 266 Alexander the Great, 47 Allarie, Y., 226 Allen, Michael, 207 Allio, R., 207 Almandoz, Juan, 324 Alvarez, Sharon A., 153 Anderson, Brian S., 90 Ansiti, Marco, 348 Anwar, Nadjadji, 30, 55, 70, 92, 122, 154, 190, 228, 268, 298 Arend, Richard J., 54 Arkadiy, V Sakhartov, 188 Armanios, Daniel Erian, 374 Arora, Ashish, 152 Arregle, Jean-Luc, 375 Arts, Sam, 296 Asgari, Navid, 226 Ashkenas, Ron, 188 Aversa, Paolo, 226 B Bahl, Mona, 188 Balasubramanian, Natarajan, 188 Ballinger, Gary A., 324 Balthazard, Pierre A., 348 Bansal, Pratima, 54 Banjo, Shelly, 121 Barlas, P., 153 Barney, Jay B., 153, 188 Barr, Pamela S., 297 Barrett, Michael, 266 Bayles, Carter, 325 Beamish, Paul W., 374 Beath, Cynthia M., 55, 226 Bedeian, A G., 267 Bednar, Michael K., 348 Belenzon, Sharon, 152 Bennett, Victor M., 266 Bensaou, Ben, 324 Berchicci, Luca, 348 Berg, Norman, 210 Bergman, Brian J., Jr., 188 Bernard, Mark, 90 Bettis, Richard A., 374 Bharadwaj, Sundar, 90 Bhattacharya, C B., 348 Bird, Mike, 375 Birkinshaw, Julian, 374 Blackstone, Brian, 204 Blake, Daniel J., 226 Blettner, Daniela P., 374 Blomquist, Tomas, 90 Bloom, Nicholas, 297 Bok, Derek, 158 Borin, Norm, 266 Bos, Brenda, 266 Bowers, Melissa R., 266 Bowman, Jeremy, 42 Boyd, Eric D., 266 Brahm, Francisco, 324 Brandt, Steven C., 188 Branzei, Oana, 324 Brass, Daniel J., 188 Bregier, Fabrice, 162 Brewer, Ryan, 286 Brigham, Ben, 126 Briscoe, Forrest, 348 Brochett, O G., 267 Brodbeck, Felix C., 374 Bromiley, Philip, 266 Brook, Tom, 349 Brown, Eliot, 38 Busenbark, John, 324 Byrne, John, 188 C Cahillane, Steven, 97 Calantzopoulos, Andre, 352 Campbell, Robert J., 153 Caner, Turanay, 296 Cannella, Albert, 188, 266 Carlton, Jim, 98 Carnahan, Seth, 266 Carnes, Christina Matz, 324 Carraher, Shawn, 153 Cassiman, Bruno, 296 Castellaneta, Francesco, 296 Cendrowski, Scott, 54 Chandran, Rajan, 313, 314, 325 Chang, Song, 348 Chatain, Oliver, 152 Chatterjee, Joydeep, 226 Chaudhuri, Saabira, 352 Chen, Guoli, 266 Chen, Haipeng (Allan), 153, 297 Chen, Tianxu, 54 Cheng, Philip, 215 Chin, M K., 120 Christensen, Lisa Jones, 324 Christensen, Roland, 210 Churchhouse, Steve, 55, 324 Cleland, D I., 79, 91 Clieaf, Mark Van, 55, 297 Cliffe, Sarah, 324 Clinton, Hillary, 230 Coeurderoy, Régis, 152 Cohen, Susan K., 296 Colias, Mike, 121 667 668 NAME INDEx Collewaert, Veroniek, 153 Combs, James, 324 Conger, Jay, 38 Connelly, Brian L., 324 Conti, Annamaria, 153 Conti, Raffaele, 296 Cook, Tim, 156 Cowen, Amanda P., 324 Coy, Peter, 164 Crilly, Donal, 54 Chrisman, James, 90 Crittenden, Andrew B., 324 Crittenden, Victoria L., 324 Crittenden, William F., 324 Croson, Rachel, 297 Crossland, Craig, 153 Cuddy, Amy, 35 Cui, Geng, 374 Cuypers, Ilya R P., 296, 324 Cuypers, Youtha, 296 Cyert, Richard, 179 Czaplewshi, Andrew J., 266 D Dai, Li, 374 Dallemule, Leandro, 296 Daspit, Joshua J., 90 Davenport, Thomas H., 296 David, Forest R., 78, 82, 90, 91, 152, 153, 226 David, Fred R., 30, 55, 56, 78, 82, 90, 91, 92, 122, 152, 153, 188, 189, 226 David, Meredith E., 78, 82, 90, 91, 152, 153, 226, 235 David, Parthiban, 297 Davidson, Kenneth, 188 Davis, Bob, 349 Deal, T., 251, 267 Deb, Palash, 297 Decramer, Adelien A., 91 Deming, Edward, 36, 108 Desmidt, Sebastian, 91 Dess, Greg, 226 Detjen, Jodi, 54, 266 Devasagayam, Raj, 91 Devers, Cynthia E., 266 Dickel, K., 198, 200, 226 Dimon, Jamie, 270 Dorobantu, Sinziana, 54, 297 Dotson, Jeffrey P., 188 Dowell, Glen W S., 120, 348 Doz, Yves, 189 Drucker, Peter, 36, 55, 75, 80, 84, 91, 153, 301, 349 Dumaine, Brian, 91 Durand, Rodolphe, 54, 152 Durant, Will, 37 Dvorak, Phred, 349 E Eden, Lorraine, 374 Edwards, Herm, 39 Eesley, Charles E., 374 Einstein, Albert, 37 Eisenhardt, Kathleen M., 374 Eisner, Alan, 226 Elfenbein, Daniel W., 297 Erez, M., 306, 325 Ertug, Gokhan, 324 Eshima, Yoshihiro, 90 F Faems, Dries, 266 Faleye, Olubunmi, 324 Favaro, Den, 325 Felde, Zum, 348 Feldman, Emilie R., 324 Ferrier, Walter J., 324 Firsirotu, M., 226 Fisch, Jan Hendrik, 374 Fisher, Greg, 55 Fiske, Susan, 35 Fitza, Markus A., 297, 324 Flammer, Caroline, 54, 348 Fleit, Caren, 153 Flore, Bridoux, 152 Floyd, Steven W., 55, 324 Flynn, Nancy, 267 Folta, Timothy B., 266 Foss, Nicolai J., 266 Friedman, Milton, 338 Frigo, Mark L., 329, 349 Fu, Shihe, 266 Fuhrmans, Vanessa, 121, 153 Furr, Nathan, 153 G Galinsky, Adam D., 348 Gallo, Edoardo, 348 Gao, Cheng, 54 Gamble, John, 121, 188 Gans, Joshua, 54 Garcia-Castro, Roberto, 188 Gasparro, Annie, 204 Gates, Bill and Melinda, 328 Gee, Kelsey, 189 Gellerman, Saul, 329, 349 George, G., 153 Gib, Andre, 226 Giglio, Joseph M., 324 Gino, Cattani, 120 Girod, Stephanie J G., 266 Glick, Peter, 35 Gluck, Frederick, 47, 55 Glueck, W F., 267 Golsby-Smith, Tony, 297 Gomez, Juan, 296 Goranova, Maria, 324 Gould, Noel, 188 Graham, Billy, 330 Grant, Robert M., 54, 153, 226 Green, David, 192 Greer, Charles R., 297 Greve, Henrich R., 188 Griffith, Erin, 94 NAME INDEx Grigoriou, Konstantinos, 153 Gruber, Marc, 153 Gryta, Thomas, 312 Guinan, Patricia, 257 Guo, Yidi, 121, 324 Gupta, Abhinay, 348 Guth, William, 226 H Haas, M., 153 Haefliger, Stefan, 226 Halas, George, 39 Hall, Reggie J., 266 Hambrick, Donald C., 348 Hamel, Gary, 189 Han, T J Smit, 54 Hannah, Sean T., 348 Hansen, F., 188 Harding, David, 55, 297 Harper, Stephen, 55 Harrigan, Kathryn Rudie, 175, 189 Harris, Karen, 55, 297 Harrison, David A., 266 He, Zi-Lin, 374 Helms, Marilyn, 55 Henderson, Bruce, 55 Hershey, Milton, 39 Heston, Charlton, 168 Heyden, Mariano L M., 324 Hill, Aaron D., 266 Hitt, Michael A., 297, 375 Hoffmann, Jonas, 324 Holcomb, Tim R., 153, 266 Holmes, Michael R., Jr., 266 Homburg, Christian, 91 Horne, James Van, 135, 153 Hoskins, Jake, 121 Hoskisson, Robert E., 121, 324 Hu, Songcui, 374 Huang, Lei, 348 Huang, Zhi, 188 Hufford, Austen, 101 Humphery-Jenner, Mark, 374 Hussey, D., 307, 325 Hutton, Betty, 168 Huy, Quy Nguyen, 121 Hwang, Byoung-Hyoun, 153 I Ibsen, H., 267 Ignatius, Adi, 374 J Jap, Sandy, 188 Jia, Nan, 121 Jiang, Han, 188, 266 Jobs, Steve, 156 Jones, Geoffrey, 54 Julian, Scott D., 266 K Kabureck, Garu, 243 Kacperczyk, Aleksandra, 296 Kalm, Matias, 324 Kanfer, F., 306, 325 Kaplan, Robert, 307 Kapoor, Rahul, 153 Karim, Samina, 266 Karlsson, Per-Ola, 176, 325 Kaul, Aseem, 54 Kavadis, Nikolaos, 324 Keil, Thomas, 188 Kennedy, A., 251, 267 Ketchen, David, Jr., 324 Key, Thomas Martin, 266 Khann, Tarun, 54 Kiel, Fred, 329 Kilduff, Gavin J., 348 Killan, Max, 331 Kim, Eun-Hee, 266 Kim, W Chan, 174 Kim, Ji Youn (Rose), 226 King, Andrew, 348 King, William, 79, 91, 146, 153 Kiron, David, 348 Kiss, Andreea N., 297 Kistruck, Geoffrey M., 188 Knap, Barry, 165 Knott, Anne Marie, 297 Knotts, Rose, 359, 375 Kowitt, Beth, 230 Krause, Ryan, 324 Kruschwitz, Nina, 348 Kulchina, Elena, 374 Kuusela, Pasi, 188 L Laamanen, Tomi, 121 LaFlamme, Jesse, 340 Lakhani, Karim R., 348 Lamberg, Juha-Antti, 324 Landry, Tom, 39 Langham, M., 307, 325 Lavelle, Louis, 325 Leaf, Clifton, 38 Lee, Gwendolyn K., 266 Lee, Hun, 153 Lee, Joon Mahn, 153 Lee, Sunkee, 266 Lenz, R T., 226, 325 Lesser, Rich, 225 Levine, Sheen, 90 Levinthal, Daniel A., 266 Li, Chengguang, 374 Li, Haioyang, 348, 374 Li, Jing, 121, 188 Li, Jizhen, 374 Li, Sali, 188 Lieberman, Marvin B., 188, 266 Lim, Jaegoo, 348 Lin, Zhouyu, 188 669 670 NAME INDEx Lindsey-Mullikin, Joan, 266 Linneman, Robert, 313, 314, 325 Litman, Joel, 329, 349 Liu, Annie H., 188 Lombardi, Vince, 32, 39, 343 Long, Rebecca G., 90 Lounsbury, Michael, 55 Lount, Robert B., Jr., 188 Love, Geoffrey, 348 Lublin, Joann, 267, 312, 325 Lumpkin, G T., 226 Lundmark, Leif, 121 Luo, Jiao, 348 Luo, Xueming, 91 Lusch, Robert F., 297 Lustenberger, Lou, 80 Lyngsie, Jacob, 266 Lyons, Elizabeth, 188 M Ma, Wayne, 120 Mackey, Tyson B., 188 Macmillan, Ian, 226 Madhok, Anoop, 188 Madsen, Tammy L., 54, 121 Mahoney, Joseph T., 297 Maltby, Lewis, 267 Mankins, Michael, 55, 297 Marcel, Jeremy J., 324 Maremont, Mark, 312 Marguiles, Robert, 226 Mark, Reuben, 74 Marks, Mitchell Lee, 188 Martin, John, 324 Martin, Roger L., 297 Martin, Xavier, 296 Mason, R., 198, 200, 226 Matthews, Chris, 126 Mattioli, Dana, 296 Mauborgne, Renee, 174 Maula, Markku, 188 Mayer, Kyle J., 121 McCann, Brian T., 188 McCartney, Scott, 361 McConkey, Dale, 44, 106, 121, 267 McIntyre, David P., 55 McKessy, Sean, 331 McMullen, Jeffery S., 121 Mellewigt, Thomas, 188 Menon, Anoop, 55, 153 Meyer, Alexander, 348 Meyrowitz, Carol, 323 Michael, Steven C., 297 Michelman, Paul, 266 Miles, Sandra Jeanquart, 55, 297 Miller, Cameron D., 324 Miller, Danny, 55 Miller, Tuyah, 375 Minaya, Ezequiel, 135 Mindruta, Denisa, 152 Mink, Michael, 32 Mintzberg, Henry, 311, 325 Mirvis, Philip, 188 Mitchell, Will, 188, 226 Moeen, Mahka, 188 Mollo, Janice C., 153 Monteiro, Felipe, 374 Morgan, Neil A., 266 Morris, Shad S., 153 Moschieri, Caterina, 226 Moss, Todd W., 188 Moss, Trefor, 374 Murphy, Megan, 156 Musk, Elon, 124 Muthulingam, Suresh, 120 Mycoskie, Blake, 339 N Nader, Ralph, 338 Napolean, 47 Nagel, Rosemarie, 90 Narayyanan, Vadake, 54 Ndofor, Hermann, 324 Neilson, Gary, 325 Nelson, Kent, 156 Nelson, Ron, 55 Neufeldt,Victoria, 55 Neuman, Qiomy, 324 Neven, Hartmut, 366 Newman, William, 267 Nixon, Judy, 55 Noll, Chuck, 39 Nooyi, Indra, 230 Nortan, David, 307 Noseleit, Florian, 266 Nystrom, Paul C., 324 O O’Brien, Jonathan, 297 Oborn, Eivor, 266 Ocasio, William, 121 Odziemkowska, Kate, 297 Oehmichen, Jana, 121 Oetzel, Jennifer, 374 Ofori-Dankwa, Joseph C., 266 Ogden, John, 349 Oh, Chang Hoon, 374 Olan, Lihong, 54 Oliver, Abbie, 324 Ouyang, Zhe, 297 Ozmel, Umit, 226 P Pain, Guillaume, 348 Palazzo, Guido, 348 Palermo, Alejandra, 55, 324 Palmer, Donald, 330, 331, 343, 349 Panico, Claudio, 188 Paquin, Raymond L., 348 Parise, Salvatore, 257 Parker, Bill, 360 NAME INDEx Parnell, John, 325 Patacconi, Andrea, 152 Paterson, Ted A., 348 Patton, George, 236 Pearce, John, II, 55, 91 Pearson, Allison W., 90 Pennington, M., 207 Pentland, A., 153 Perrett, Wayne, 250 Peterson, Sandi, 243 Peterson, Thomas, 248 Phillips, Bum, 39 Phillips, Robert A., 348 Pil, Frits, 296 Pleck, Joseph, 249 Polman, Paul, 348 Ponzi, Leonard J., 374 Porac, Joseph F., 120 Porter, Michael E., 101–105, 121, 156, 165, 172, 188, 189 Posen, Hart E., 120 Posner, Bruce, 266 Pradham, Bibhudatta, 334 Prahalad, C K., 189 Priem, Richard L., 324 Pring, Ben, 99 Prinzie, Anita, 91 Puay, Khoon Toh, 324 Puranam, Phanish, 266 Q Qasabi, Majid Al, 302 Quade, Patrick, 329 Quigley, Timothy J., 153 Quinn, James Brian, 226 R Rabier, Maryiane, 188 Radnofsky, Louise, 349 Ragozzino, Roberto, 297 Ramirez, Rafael, 55, 324 Ranucci, Rebecca, 121 Rau, Devaki, 266 Raudsepp, Eugene, 55 Ratnaningsih, Anik, 30, 55, 70, 92, 122, 154, 190, 228, 268, 298 Reade, James J., 348 Reenen, John Van, 297 Reeves, Martin, 348 Reuer, Jeffrey J., 55, 226, 297, 324 Reza, Danielle Giuliana, 226 Rider, Christopher I., 121 Ridge, Jason W., 266 Riley, Shawn M., 297 Riley, Sheila, 267 Rivera, Kristin, 176 Roberts, James A., 235 Rodríguez, Omar, 90 Rosen, Andrew, 179 Ross, Jeanne W., 55, 226 Rothaermel, Frank T., 153 Rowe, H., 198, 200, 226 Rubel, Holger, 348 Rumelt, Richard, 325 Ryall, Michael D., 54 S Saarikko, Ted, 90 Sadun, Raffaella, 297 Salk, George, 100 Salman, Mohammed bin, 302 Salter, Malcolm, 210 Sapienza, Harry, 121 Sautner, Zacharias, 374 Schein, E H., 267 Schein, Edgar, 153 Schifrin, Matthew, 189 Schmidt, Stephen, 153 Schrader, K., 55 Schrapp, Sebastian, 121 Schrempf-Stirling, Judith, 348 Schrodt, Steven, 251 Schroeder, Roger, 129 Schultz, Peter, 84 Schwenk, G L., 55 Sebastian, Ina M., 55, 226 Seetharaman, Deepa, 79 Selladurai, Raj, 153 Semadeni, Matthew, 120, 266 Seung-Hwan, Jeong, 266 Shan, Liwei, 266 Sharma, Pramodita, 90 Shenkar, Oded, 374 Shepherd, Dean A., 121 Shi, Wei, 324 Shimelonis, Mark, 162 Shiu, Yung-Ming, 348 Shrivastava, P., 226 Shropshire, Christine, 324 Shumsky, Tatyana, 265 Siemsen, Enno, 324 Silbermann, Ben, 94 Simons, John, 267, 312 Singe, Marcos, 324 Singh, Kulwant, 226 Sinha, Bipul, 311, 312 Sloan, Alfred, Jr., 37, 55 Smith, Adam, 127, 153 Smith, Brett R., 188 Smith, Frederick, 72, 85 Smith, M., 188 Smith, Scott, 153, 192 Sokol, Michael, 267 Soloman, 301 Song, Michael, 54 Sonnerfeld, Jeff, 310 Soofi, Ehsan S., 324 Souder, David, 121 Srinivasan, Arati, 55 Srinivasan, Mandyam M., 266 Srivastava, Mehul, 374 Staley, Ed, 80 Stalin, Joseph, 301 Stan, Mihaela, 266 671 672 NAME INDEx Starik, Mark, 334 Stark, Nicholas R., 91 Steensma, Kevin H., 226 Steinbach, Adam L., 266 Steiner, George, 76, 91 Strickland, A., 121, 188, 226 Subin, Im, 54 Suchard, Jo-Ann, 374 Suwignjo, Patdono, 30, 55, 70, 92, 122, 154, 190, 228, 268, 298 T Tan, David, 121 Tarzijan, Jorge, 324 Theeke, Matt, 153 Thomas, Adeline, 188 Thomas, Howard, 120 Thompson, Arthur, Jr., 121, 188 Tihanyi, Laszio, 297, 324 Tilcsik, András, 324 Trahms, Cheryl, 324 Trigeorgis, Lenos, 54, 55, 297 Trump, Donald, 230, 247 Tzu, Sun, 47, 311 U Unruh, Gregory, 348 V Vaara, Eero, 121, 324 Valestin, Laura S., 91 Vanacker, Tom, 153 Verhaal, J Cameron, 121 Vidal, Elena, 188 Vigna, Paul, 134 Viswanathan, Madhu, 324 W Waldman, David A., 348 Walker, Gordon, 121 Wan, Xiang, 188 Wang, Danni, 348 Wang, Heli, 266 Wassmer, Ulrich, 188 Waterman, Robert, Jr., 55, 153, 316, 325 Waters, J., 325 Webber, Sheila S., 54, 266 Weber, Lauren, 267 Wei, Jiuchang, 297 Wei, Shi, 121 Weihrich, Heinz, 55 Weinberg, Bruce, 257 Weiner, Jeff, 72 Weller, Ingo, 188 Werner, Timothy, 266 Westergren, Ulrika H., 90 Whitler, Kimberly A., 266 Whittington, Richard, 266 Wiedner, Rene, 266 Wieske, Jan, 91 Wiguna, Patu Artama, 30, 55, 70, 92, 122, 154, 190, 228, 268, 298 Withers, Michael C., 324 Wolf, Carola, 324 Wolf, Carolina, 55 Wolff, Michael, 121 Wood, Anthony, 300 Workiewicz, Maciej, 120 Wu, Cheng-Wei, 226 X Xia, Jun, 121, 188, 266 Xiao, Zhixing, 121 Y Yang, Shou-Lin, 348 Yao, Dennis A., 153 Yao, Fiona K., 348 Yavitz, Boris, 267 Yermack, David, 310 Yi, Xiwei, 374 Youm, Yoo No, 266 Z Zaheer, Akbar, 121 Zahra, Shaker A., 153 Zajac, Edward, 121, 188 Zarya, Valentina, 79 Zelner, Bennet, 54 Zhang, Cyndi Man, 188 Zhang, Laurina, 188 Zhang, Yan, 121, 324 Zhang, Yu, 266 Zhao, Eric Yanfei, 55 Zhao, Shan, 266 Zhao, Y Lisa, 54 Zhou, Yue M., 188, 348 Zhu, Hong (Susan), 188 Ziobro, Paul, 121, 296 Zorn, Michelle, 324 Zukerberg, Mark, 79, 85 Zumbrun, Josh, 121 Zuzul, Tiona, 54 Subject Index A Accounting, 136–140 Acquiring capital, 271–275 Acquisitions, 176–177 Friendly merger, 176 Hostile takeover, 176 Actionable, 95, 197, 379 Activity ratios, 139 Adapting (to Change), 37, 246, 306–307 Advertising, 132 Aggressive Quadrant (in SPACE), 199–202 Africa, 364–365 Allocate resources, 235 Alternative strategies, 42–43, 195–197 Analytical framework, 193 Annual objectives, 42, 231–233 AQCD (Actionable, Quantitative, Comparative, Divisional), 95, 197, 379 Acquiring capital, 271–275 Art of War, 47–48 Art (vs science), 311 Assumptions, making them, 106 Assurance of Learning Exercises Chapter 1, 31, 65–69 Chapter 2, 71, 86–89 Chapter 3, 93, 115–118 Chapter 4, 123, 149–152 Chapter 5, 155, 183–186 Chapter 6, 191, 221–224 Chapter 7, 229, 261–264 Chapter 8, 269, 292–295 Chapter 9, 299, 319–322 Chapter 10, 327, 346–348 Chapter 11, 351 Part 6, 377 Attractiveness Scores (AS in a QSPM), 210–215 Auditing, 314 B Backward integration, 158, 161–162 Balanced scorecard, 307 Balancing work life and home life, 248–249 Bankruptcy, 167 Bargaining power of consumers, 103 Bargaining power of suppliers, 103 BCG Matrix, 202–206 Benchmarking, 169–171 Benefits (of strategic management), 44–46 Financial benefits, 45 Non–financial benefits, 45 Of a diverse workforce, 249 Bitcoin, 134 Blue ocean strategy, 174 Board of directors, 308–310 Bonds, 286, 288 Book value, 285 Boston Consulting Group (BCG) Matrix, 202–206 Brand positioning, 254–256 Bribery, 332 Build, Borrow, or Buy, 174–177 Business analytics, 140–141 Business Climate Across Countries/Continents, 363–366 Africa, 364–365 China, 365 India, 365 Indonesia, 365 Mexico, 366 Business Culture Across Countries/Continents, 361–363 China, 362–363 India, 363 Japanese Culture, 362 Mexican Culture, 361–362 Business Ethics/Environmental Sustainability/Corporate Social Responsibility (Chapter 10), 327–349 Bribery, 332 Business ethics, 328 Code of Business Ethics, 330 Corporate social responsibility (CSR), 338–341 Definition, 328 Does it pay to be ethical, 329 Ethics culture, 329–331 Food suppliers and livestock welfare, 339 ISO14000/14001 certification, 336–337 Managing environmental affairs, 334–338 Social responsibility, 338–341 Solar power, 337 Songbirds and coral reefs, 338 Sustainability, 334–338 Unethical actions, 328–329 Whistle blowing, 331–332 Wildlife, 98, 126, 196, 338, 340 Workplace romance, 332–334 Business failure, 167 Business portfolio, 202 Business vision and mission, (Chapter 2), 75–84 Business strategy (vs Military strategy), 46–48 Business worth, 284–286 C Capacity (production/operations function), 129 Capacity utilization, 129 Capital budgeting, 136 Capital structure, 271–275 Case analysis (Part 6), 376–384 Case analysis outline, 380–381 Case method, 378 Guidelines, 378–379 Oral presentation, 381–382 Tips for success, 382–383 Written analysis, 380–381 Cash cows, 204–205 Change (adapting & managing), 37, 246, 306–307 Channel of distribution, 134 Chapter and 11 bankruptcy, 167 673 674 SuBJECT INDEx Checklist of questions Finance and accounting audit checklist of questions, 140 Management audit checklist of questions, 130–131 Marketing audit checklist of questions, 135 Chief Executive Officer, 38–39 Chief Information Officer (CIO), 100 Chief Intelligence Officer (CIO), 100 Chief Strategy Officer (CSO), 38–39 China, 362–363, 365 Coca-Cola Company (Cohesion Case), 56–65 Organizational structure, 60 Competitors, 59, 61–62 Income statements, 57 Balance sheets, 58 Code of business ethics, 330 Cohesion case (on Coca-Cola Company), 33, 56–65 Balance sheets, 58 Competitors, 59, 61–62 Income statements, 57 Organizational structure, 60 Collaborative machines, 129 College football programs ($ worth), 284–286 Common stock financing, 271–275 Comparative (in AQCD), 95, 197, 379 Compensation, 248 Competitive advantage, 33, 38, 101–102, 110–113 Competitive analysis, 311 Competitive forces, 40, 99–100 Competitive intelligence, 99–100 Competitive intelligence (CI) programs, 99–100 Corporate spies, 99–101 Definition, 99–101 Unethical tactics, 99–101 Competitive Position (CP) (in SPACE Matrix), 197–202 Competitive Profile Matrix, 110–113 Competitive quadrant (in SPACE analysis), 199–202 Components of a mission statement, 77–78 Examples, 77–78 Comprehensive written case analysis, 377–384 Conservative Quadrant in SPACE, 199–202 Contingency planning, 313 Controlling, 128 Cooperative strategies, 174–176 Coral reefs, 338 Core competencies, 170–171 Core values statement, 72–73 Corporate ethics, 327–349 Corporate valuation, 284–286 Corporate well-being (wellness) programs, 252 Cost leadership strategies, 172–173 Crafting strategies See Art (vs science), 311 Creed statement, 75 Critical success factors, 110–113 Cross-selling, 251 Cultural forces, 40, 250–251, 330–331 Cultural pitfalls, 250–251, 330–331 Cultural products, 129–130, 250–251, 330–331 Culture Definition, 129–130, 250–251 Culture, 250–251, 330–331, 358–363 China – Business Culture, 362–363 Mexico – Business Culture, 361–362 Japan – Business Culture, 362 Culture, U.S vs foreign business cultures, 358–363 Customers, 77 D Data mining, 140 Debt financing, 271–275 Decentralized structure, 238–240 Decision stage, 193–195, 210–215 Defensive quadrant (in SPACE), 199–202 Defensive strategies, 166–169 Divestiture, 167–168 Liquidation, 168–169 Retrenchment, 166–167 De-integration, 162 Demographic forces/variables, 40, 96–97 Differentiation strategies, 172–174 Dilution of ownership, 271–275 Directional vector, 197–202 Discount, 285 Distinctive competence (in mission statements), 77 Distinctive competencies, 170–171 Distribution, 131, 134 Diversification strategies, 165–166 Related, 166 Unrelated, 166 Diversity, 249 Divestiture, 159, 167–168 Dividend decisions, 136 Divisional (in AQCD), 95, 197, 379 Divisional structure, 238–243 Dogs, 204–205 E Economic forces, 40, 96 Educational institutions, 178 Educative change strategy, 37, 246, 306–307 Educational institutions, 178–179 EEOC, 332 Empirical indicators, 125 Employability skills, 48–49 Empowerment, 45 EMS (environmental management systems), 334–338 Entrepreneurship, 178–179 Environment, 40, 96–97 Environmental forces, 40, 96–97 Environmental Sustainability (Chapter 10), 334–338 ISO 14000/14001 Certification, 336–337 Proactive/Reactive, 334–338 Reasons to be green, 334–335 Sustainability reports, 335 EPS/EBIT analysis, 271–275 Equity financing, 271–275 Ethics, 327–349 Ethics Capsules Chapter 1, What Ethics Variable Is Most Important Among All? 35 Chapter 2, Facebook Changing Their Mission to Enhance Ethics, 79 Chapter 3, Preserve Alaska Wildlife or Boost Alaska Economy? 98 Chapter 4, The Sagebrush Lizard vs the Big Oil Man, 126 Chapter 5, Are CEOs Less Ethical Today Than in the Past? 176 Chapter 6, Don’t Strategize and Jeopardize Animal Welfare, 196 SuBJECT INDEx Chapter 7, Do Firms Need a Policy Against Phubbing? 235 Chapter 8, Projected Financial Statement Manipulation, 277 Chapter 9, Exemplary Ethics Through Exemplary Transparency, 312 Chapter 10, TOMS Shoes, Inc – Shoes Are Magic, 339 Chapter 11, What Two US-Based Airlines Are Worst On Customer Service? 361 Ethics culture, 129–130 Evaluating mission statements, 81–83 Evaluating the worth of a business, 284–286 Exemplary Strategist Showcased Chapter 1, Vince Lombardi, Former Coach of the Green Bay Packers, 32 Chapter 2, Frederick W Smith, CEO and Founder of FedEx Corp., 72 Chapter 3, Ben Silbermann, CEO and Cofounder of Pinterest, 94 Chapter 4, Elon Musk, CEO and Cofounder of Tesla, Inc., 124 Chapter 5, Tim Cook, CEO of Apple, Inc., 156 Chapter 6, David Green, CEO of Hobby Lobby, 192 Chapter 7, Indra Nooyi, CEO (former) of PepsiCo, 230 Chapter 8, Jamie Dimon, CEO of JPMorgan Chase, 270 Chapter 9, Anthony Wood, CEO and Founder of Roku, Inc., 300 Chapter 10, Bill Gates, CEO (former) and Chairman of Microsoft, 328 Chapter 11, Andre Calantzopoulos, CEO of Philip Morris International, 352 External, 40, 93–113 External Assessment (Chapter 3), 93–113 Competitive forces, 95, 99–100 Competitive intelligence (CI) programs, 99–100 Competitive Profile Matrix, 110–113 Economic forces, 95–96 External Factor Evaluation (EFE) Matrix, 106–110 Five-Forces Model, 101–105 Forecasting tools and techniques, 105–106 Industry Analysis: The EFE Matrix, 106–110 Making assumptions, 106 Political, governmental, and legal forces, 95, 97–98 Porter’s Five-Forces Model, 101–104 Process of performing, 112 Social, cultural, demographic and environmental (SCDE) forces, 95–96 Technological forces, 95, 98–99 Sources of external information, 104–105 External audit See External assessment (Chapter 3) External Factor Evaluation (EFE) Matrix, 107–110, 303 External forces, 40, 95 Variables, 40, 95 External opportunities and threats, 40, 95 F Facebook, 79, 328 Failure (business), 167 Feng shui, 360 Finance/Accounting, 136–140 Audit checklist, 140 Functions of finance, 136 Financial ratios, 136–140, 286–287 Financial objectives, 157 Financial Position (FP) in SPACE, 197–202 Financial ratio analysis, 136–140 Financing decision, 136 675 First mover advantages, 177–178 Five-Forces Model, 101–104 Bargaining power of consumers, 103 Bargaining power of suppliers, 103 Potential development of substitute products, 103 Potential entry of new competitors, 102 Rivalry among competing firms, 102 Football programs ($ worth), 286 Force change strategy, 37, 246, 306–307 Forecasting tools and techniques, 105–106 Forward integration, 158, 160–161 Franchising, 161 Friendly merger, 176 Functional structure, 237–238 Functions of finance, 136 Dividend decision, 136 Financing decision, 136 Investment decision, 136 Functions of management, 126–131 Controlling, 128 Motivating, 127–128 Organizing, 127 Planning, 127 Functions of marketing, 131–136 Place or channel of distribution, 134 Pricing products, 133 Product planning, 132 Promotion, 133 Marketing research and target market analysis, 131 Marketing audit checklist of questions, 135 Future shock, 306 G GAAP, 314 GAAS, 314 Generic Strategies Cost leadership, 172–173 Differentiation, 172–174 Global Capsules Chapter 1, Mobike: Global Bicycle Renting, 38 Chapter 2, LinkedIn’s Vision/Mission, 73 Chapter 3, Netflix Growing Fastest Globally, 100 Chapter 4, Bitcoin: The New Global Currency, 134 Chapter 5, How Can a Firm Determine Where To Initiate New Business? Use Gross Domestic Product (GDP) as a Guide, 164 Chapter 6, India’s Economy Is Booming, 214 Chapter 7, Guidelines for Global Marketing, 254 Chapter 8, The Least/Most Corrupt Countries, 277 Chapter 9, What Country Uses “Vision 2030,” 302 Chapter 10, India Is Turning Garbage Into Cash, 334 Chapter 11, The Strategic Plan of a Country: China Aims for Superiority in Quantum Computing, 366 Global challenge, 356–358 Global/International Issues (Chapter 11), 351– 368 Advantages and disadvantages, 355–356 Business Climate Across Countries/Continents, 363–366 Africa, 364–365 China, 365 India, 365 Indonesia, 365 Mexico, 366 676 SuBJECT INDEx Global/International Issues (Chapter 11) (continued) Business Culture Across Countries/Continents, 361–363 China, 362–363 India, 363 Japan, 362 Mexico, 361–362 Communication differences across countries, 360–361 Corporate tax rates globally, 354–355 Cultural pitfalls, 359 Global challenge, 356–358 Multinational organizations, 353 USA vs foreign business cultures, 358–361 Global competition, 351–368 Advantages and disadvantages, 355–356 Global strategy, 353 Globalization, 351–368 Goals See Objectives Goodwill, 281, 284 Governance, 308–310 Governmental forces (variables), 40 Governmental organizations (strategic planning), 178–179 Grand Strategy Matrix, 208–210 Gross domestic product (GDP), 164 Growth ratios, 139 Guanxi, 359 Guidelines for case analysis, 377–384 Guidelines for developing an organizational chart, 242–243 Guidelines for doing strategic planning, 314–316 Market penetration, 158, 163 Product development, 158, 164 Internal assessment (Chapter 4), 40–41, 124–146 Business analytics, 140 Cultural products, 129–130 Finance/accounting functions, 136 Financial ratio analysis, 136–137, 139 Integrating strategy and culture, 129–130 Internal factor evaluation matrix (IFEM), 141–145 Internal forces, 125 Management, 126–131 Management Information Systems, 140 Marketing, 131–135 Process of performing an internal audit, 145–146 Production/operations, 129 Resource–Based View (RBV), 125 Internal audit See Internal assessment Internal Factor Evaluation (IFE) Matrix, 141–145, 303 Internal forces, 40–41, 124 Internal strengths and weaknesses, 40–41, 124 International firms, 351–368 International Issues (Chapter 11) See Global Issues International operations, 351–368 Advantages and disadvantages, 355–356 Intuition (vs analysis), 36–37 Inventory, 129 Investment decision, 136 ISO 14000 and 14001 Certifications, 336 H J Horizontal consistency of objectives, 233 Horizontal integration, 158, 162–163 Hostile takeover, 176 How to analyze a case, 376–384 Human resource concerns when implementing strategies, 247–252 Human resource management, 128, 247–252 Japanese culture, 362 Joint venture/partnering, 174–176 Joint venture in India, 365 I IE Portfolio Matrix, 206–209 IFRS, 314 Implementing Strategies: Management and Marketing Issues (Chapter 7), 228–267 Implementing Strategies: Finance and Accounting Issues (Chapter 8), 268–297 India, 214, 334, 363, 365 Indonesia, 365 Industry Analysis: External Factor Evaluation (EFE) Matrix, 94, 106–110 Industry Growth Rate (BCG axis), 204 Industry Position (IP), in SPACE, 197–202 Information technology, 100 Inhwa, 359 Initial Public Offering (IPO), 286–287 Input stage, 193–194 Integration strategies, 158–163 Backward integration, 158, 161–162 Forward integration, 158, 160 Horizontal integration, 158, 162–163 Vertical integration, 160 Internal-External (IE) Matrix, 206–209 Intensive strategies, 163–166 Market development, 158, 163–164 L Labor unions, 354 Leadership, 128 Learning from the partner, 174–176 Legal forces/variables, 40 Level of strategies, 159 Leverage ratios, 139 Leveraged buyout, 139, 176 Liquidation, 159, 168–169 Liquidity ratios, 139 Linking pay-performance, 248 Long-range planning, 34 Long-term objectives, 41, 156–157 M Machine learning, 140 Making assumptions, 106 Management, 126 Controlling, 126, 128 Functions of management, 126 Management audit checklist of questions, 130 Motivating, 126–128 Organizing, 126–127 Planning, 126–127 Management Information Systems (MIS), 140–141 Managing by Crisis, 158 Managing by Extrapolation, 158 Managing by Hope, 158 SuBJECT INDEx Managing by Objectives, 157–158 Managing by Mystery, 158 Managing conflict, 235–236 Managing resistance to change, 37, 246, 306–307 Managing the natural environment See Natural Environment Market capitalization, 285 Market development, 158, 163–164 Market penetration, 158, 163 Market segmentation, 252–253 Market value, 285 Marketing, 131–135, 252–257 Distribution, 131, 134 Functions of marketing, 131 Implementation issues, 252–257 Market segmentation, 252–253 Marketing audit checklist of questions, 135 Marketing mix, 132 Marketing research and target market analysis, 131 Perceptual mapping, 254–256 Place or channel of distribution, 134 Pricing, 131–133 Principles of marketing communication, 257 Product planning, 131–132 Product positioning, 254–256 Target market analysis, 131–132, 252–253 Test marketing, 132–133 Marketing audit checklist of questions, 132 Marketing mix, 132 Place, 132 Price, 132 Product, 132 Promotion, 132 Marketing research, 131 Markets, 77 Matching stage, 42–44, 193–194 Matching structure and strategy, 236–237 Matrix structure, 240–241 Measuring organizational performance, 36, 304 Merger/acquisition, 176–177 Benefits of, 177 Friendly merger, 176 Hostile takeover, 176 Why many fail, 177 Mexico, 361–362, 366 Mini-Cases Chapter on Tesla, Inc., 53–54 Chapter on Ford Motor Company, 79 Chapter on Sam’s Club, 119 Chapter Procter & Gamble, 151 Chapter on Facebook, 187 Chapter on Boston Consulting Group, 225 Chapter on De Beers Group, 264 Chapter on Hasbro, 296 Chapter on TJX, 323 Chapter 10 on Chick-fil-A, 347 Chapter 11 on Lynk & Company, 373 Military strategy (vs business strategy), 46–48 MIS issues, 140–141 Mission, 39–40, 72–84 Mission statements (Chapter 2), 75–84 Characteristics of, 76–77 Components, 77–78 Definition, 75 Evaluating, 81–83 Examples, 82 Importance (Benefits) of, 79–81 Process of developing, 81 Mission vs vision, 72 Writing and evaluating, 81–83 Motivating, 127–128 Multinational corporations, 353 N Natural environment, 334–342 Nemaswashio, 360 Net worth method, 284–285 Nonprofit and governmental organizations, 178–179 Notable Quotes See www.strategyclub.com website O Objectives, 41, 156–158 Annual, 42, 156–158 Benefits of, 157 Characteristics of, 156–157 Financial vs strategic objectives, 157 Long-term, 156–158 Not managing by objectives, 158 Organic growth, 174 Operations See Production/Operations Function Opportunities, 40 Oral case analysis (presentation), 381–382 Organizational change, 246 Organizational charts, 236–245 Do’s and Don’ts, 242–243 Organizational culture, 129–130, 250–251, 330–331, 358–363 Chinese culture, 362–363 Japanese culture, 362 Indian culture, 363 Mexican culture, 361–362 Ways and means for altering, 250 Organizational structure, 234–245 Advantages/disadvantages of functional, 238 Advantages/disadvantages of divisional, 239 Advantages/disadvantages of matrix, 241 Do’s and Don’ts, 242–245 Types of structure, 237–245 Organizing, 127, 234–245 Outsourcing, 357–358 Outstanding shares method to value a firm, 285 P Partnering and partnerships, 174–176 Part (Strategic Management Case Analysis), 376–384 Pay-Performance linkages, 248 Perceptual mapping, 252–256 Philosophy, 77 Phubbing, 235 Pitfalls in strategic planning, 46 Planning, 33–34 Policies, 44, 233–235 Political, governmental and legal forces/ variables, 40, 97–98 Politics of strategy choice, 216–217 677 678 SuBJECT INDEx Porter’s Five-Forces Model, 101–104 Bargaining power of consumers, 103 Bargaining power of suppliers, 103 Potential development of substitute products, 103 Potential entry of new competitors, 102 Rivalry among competing firms, 102 Porter’s two generic strategies, 172–174 Cost leadership (Type and 2), 172–173 Differentiation, (Type and 4), 172–174 Portfolio of businesses, 202–209 Positioning, 252–256 Potential development of substitute products, 103 Potential entry of new competitors, 102–103 Predictive analytics, 140 Premium, 285 Prepare and present a case analysis, 377–384 Preparing a case for class discussion, 378–379 Preparing a written case analysis, 380–381 Price, 133 Price earnings ratio method to value businesses, 285 Pricing, 133 Private-equity acquisitions, 177–178 Process (production/operations function), 129 Process tips, 32 Product, 77, 193 Product planning, 132 Product development, 158, 164–165 Product positioning, 254–256 Production/Operations, 129, 245–247 Functions, 129 Concerns when implementing strategies, 245–247 Profitability ratios, 139 Profit centers, 202 Pro forma (projected) financial statement analysis, 275–284 Promotion, 133 Protectionism, 357 Q Quality (production/operations function), 129 Quantitative (in AQCD), 95, 197, 379 Quantitative Strategic Planning Matrix (QSPM), 210–215 Quantum computing, 366 Question marks, 204–205 R Ratings, 107, 143 Ratio analysis, 136–140, 286–287 Reengineering, 246 Related diversification, 159 Relative market share position (RMSP), 203 Recommendations, 214–215 Reconciliatory, 76 Relative deficiency or superiority, 40–41, 124–126 Research and development, 133 Reshoring, 357–358 Resistance to change, 246, 306–307 Resource allocation, 235 Resource-Based View (RBV), 125 Empirical indicators, 125 Restructuring, 246 Retained earnings table, 284 Retrenchment, 159 Retreats, 35 Review underlying bases, 303 Revised EFE (and IFE) Matrix, 303 Rivalry among competing firms, 102 Robotics, 129 Romance, 332–334 S Sales promotion, 133 Segmentation, 252–253 Selling products/services, 131–135, 252–257 Sexual harassment, 332 Small businesses, 178–179 SO Strategies, 42–43, 54, 195–196 Social, cultural, demographic and environmental (SCDE) forces, 40, 96–97 Variables, 40, 96–97 Social media, 251 Social responsibility (Chapter 10), 328, 338–342 Society of Competitive Intelligence Professionals (SCIP), 99 Software (see Strategy Club or www.strategyclub.com), 50–51, 54, 276 Songbirds and coral reefs in trouble, 338 Sources of external information, 104–105 SPACE Matrix, 197–202 ST Strategies, 42–43, 54, 195–196 Stability Position (SP), in SPACE, 197–202 Standard & Poor’s Net Advantage Industry Surveys, 105 Stakeholders, 76 Stars, 204–205 Statement of beliefs, 75 Statement of philosophy, 75 Statement of purpose, 75 Stock financing, 271–275 Strategic Business Unit (SBU) structure, 240 Strategic management, 32–36 Art vs Science Issue, 311 Benefits, 44–46 Case analysis, 377–384 Challenges, 310–314 Definition, 32 Guidelines for effective strategic management, 314–316 In nonprofit and governmental organizations, 178–179 In small firms, 178–179 Model, 34 Process, 32–35 Stages, 32, 35–36 Visible vs hidden issue, 311–312 Strategic objectives, 157 Strategic planning, 33–34 Art vs Science Issue, 311 Challenges, 310–314 Pitfalls, 46 Software (see Strategy Club at www.strategyclub.com), 51, 54, 276 Why some firms no strategic planning, 46 Strategic Position and Action Evaluation (SPACE) Matrix, 197–202 Strategies in Action (Chapter 5), 41 Backward integration, 158, 161–162 Bankruptcy, 167 Defensive, 166–169 Diversification, 165–166 Divestiture, 159 Forward integration, 158, and 160–161 SuBJECT INDEx Franchising, 161 Generic, 172–175 Geographic expansion, 158, 163–164 Horizontal integration, 158, 162–163 In nonprofit and governmental organizations, 178–179 In small firms, 178–179 Levels of strategies, 159 Liquidation, 159, 168–169 Market development, 158, 163–164 Market penetration, 158, 163 Means for achieving, 174–178 Objectives, 156–158 Product development, 158, 164–165 Related diversification, 159, 166 Retrenchment, 159, 166–167 Types of, 158 Unrelated diversification, 159, 166 Vertical integration, 158 Strategos, 47 Strategists, 38 Strategy-supportive culture, 40, 129–130 Strategy and culture, 40, 129–130 Strategy Analysis and Choice, (Chapter 6), 191–227 Analytical framework, 193–194 BCG Matrix, 202–206 Cultural aspects, 216 Decision stage, 194–195 Grand Strategy Matrix, 209–210 IE Matrix, 206–209 Input stage, 194 Matching stage, 194 Politics of, 216–217 QSPM, 210–215 SPACE Matrix, 197–202 SWOT Matrix, 42–43, 54, 195–197 Strategy Club, 50–51, 54, 276 Strategy Evaluation and Governance (Chapter 9), 36, 299–318 Activities, 302–308 Art vs Science Issue, 311 Auditing, 314 Balanced scorecard, 307–308 Board of directors, 308–310 Challenges, 310–314 Characteristics of an effective evaluation system, 314–316 Guidelines for doing strategic planning, 314–316 Contingency planning, 313 Framework, 304 Governance issues, 308–310 Measuring organizational performance, 304 Promote workplace democracy, 312–313 Reviewing bases of strategy, 303–304 Review, evaluation, and control (Chapter 9), 299–318 Taking corrective actions, 306 Visible vs hidden issue, 311–312 Strategy formulation, 35, 192–198 Analytical framework, 193 Cultural aspects, 216 Decision stage, 194–195 Input stage, 194 Matching stage, 194 Politics of, 216–217 vs strategy implementation, 231 679 Strategy implementation, 36, 228–297 Strategy implementation (Chapter 7) – Management and Marketing Issues, 228–267 Allocate resources, 235 Annual objectives, 231–233 Balancing work life and home life, 248–249 Benefits of a diverse workforce, 249 Corporate wellness (well-being) programs, 252 Create a strategy-supportive culture, 250–251 Do’s and dont’s in developing organization charts, 242–243 Divisional structure, 238–240 Engage customers in social media, 256–257 Functional structure, 237–238 Human resource issues, 247–252 Linking performance and pay to strategies, 248 Management and operations issues, 245–247 Managing conflict, 235–236 Managing structure, 237–243 Managing resistance to change, 246 Market segmentation, 252–253 Marketing issues, 252–257 Matching structure with strategy, 236–237 Matrix structure, 240–242 Perceptual mapping, 252–254 Policies, 233–235 Principles of marketing communication, 256–257 Product positioning/Perceptual mapping, 252–254 Production/Operations issues, 245–247 Restructuring and reengineering, 245–246 Strategic Business Unit (SBU) structure, 240 Strategy formulation vs implementation, 231 Use caution in hiring a rival’s employees, 250 Use caution in monitoring employees’ social media, 251 Strategy implementation (Chapter 8) – Finance and Accounting Issues, 268–297 Acquiring capital, 271–275 Company evaluation, 284–286 Deciding whether to go public, 286–287 EPS-EBIT analysis, 271–275 Finance/Accounting issues, 271 Stratos, 47 Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, 42–43, 54 Strengths, 40–41, 124–126 Sum Total Attractiveness Scores (STAS) (in a QSPM), 210–215 Sustainability, 328–335 Sustainability Report, 335 Sustained competitive advantage, 38 SWOT Matrix/Analysis, 42–43, 195–197 Synergy, 127 T Taking corrective actions, 36, 306 Target market analysis, 132, 252–253 Tax rates, 354–355 Technological forces, 40, 98–99 Technology, 77, 98–99 Template, 50–51, 54, 276 Test marketing, 132–133 Threats, 40 Total Attractiveness Scores (TAS) (in a QSPM), 210–215 680 SuBJECT INDEx Treasury stock, 271, 288 Triple-bottom-line, 328 Turnaround strategy, 166 U Union membership across Europe, 354 Unrelated diversification, 159 Utility of mission statements, 77 V Value chain analysis (VCA), 169–171 Value of the dollar, 96 Values, 72–73 Vertical consistency of objectives, 233 Vertical integration, 158, 162–163 Visible vs hidden strategies, 311 Vision Statements, 39, 72–81 Analysis, 74 Characteristics, 74 Definition, 39, 73–74 Examples, 75 Importance (Benefits) of, 73, 79–81 Process of developing, 81 W Wa, 359 Weaknesses, 40–41, 124–126 Weights vs ratings, 107, 143, 152 Well-being (wellness) programs, 252 Whistle blowing, 331–332 Wildlife, 98, 126, 196, 338, 340 WO Strategies, 42–43, 54, 195–196 Women, 248–249 Workforce (production/operations function), 129 Workplace democracy, 312–313 Workplace romance, 332–334 Worth of a business, 284–286 WT Strategies, 42–43, 54, 195–196