T • I RE ISSON HIT ND • HO SK LA Concepts Strategic Management Competitiveness & Globalization 9th Edition Michael A Hitt Texas A&M University R Duane Ireland Texas A&M University Robert E Hoskisson Rice University Strategic Management: Competitiveness and Globalization: Concepts, Ninth Edition Michael A Hitt, Duane Ireland, and Robert E Hoskisson VP/Editorial Director: Jack W Calhoun Editor-in-Chief: Melissa Acuna © 2011, 2009 South-Western, a Part of Cengage Learning ALL RIGHTS RESERVED No part of this work covered by the copyright herein may be reproduced, transmitted, stored or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher Senior Acquisitions Editor: Michele Rhoades Director of Development: John Abner For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 Senior Editorial Assistant: Ruth Belanger For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com Marketing Manager: Nathan Anderson Senior Marketing Communications Manager: Jim Overly Marketing Coordinator: Suellen Ruttkay Content Project Manager: Jacquelyn K Featherly Media Editor: Rob Ellington Senior Manufacturing Coordinator: Sandee Milewski Production House/Compositor: Cadmus Communications Senior Art Director: Tippy McIntosh Cover and Internal Designer: Craig Ramsdell, Ramsdell Design Cover Image: ©Media Bakery ExamView® and ExamView Pro® are registered trademarks of FSCreations, Inc Windows is a registered trademark of the Microsoft Corporation used herein under license Macintosh and Power Macintosh are registered trademarks of Apple Computer, Inc used herein under license Concepts ISBN 13: 978-0-538-75309-8 Concepts ISBN 10: 0-538-75309-9 South-Western Cengage Learning 5191 Natorp Boulevard Mason, OH 45040 USA Cengage Learning products are represented in Canada by Nelson Education, Ltd For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.ichapters.com Printed in Canada 13 12 11 10 09 To Ashlyn and Aubrey Your smiles are like sunshine—they brighten my day —Michael A Hitt To my entire family I love each of you dearly and remain so grateful for your incredibly strong support and encouragement over the years Your words and deeds have indeed showed me how to “keep my good eye to the sun and my blind eye to the dark.” —R Duane Ireland To my wonderful grandchildren (Mara, Seth, Roselyn, Ian, Abby, Madeline, Joseph, and Nadine), who are absolutely amazing and light up my life —Robert E Hoskisson iii Brief Contents Preface xiv Part 1: Strategic Management Inputs 1 Strategic Management and Strategic Competitiveness, 2 The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis, 34 The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages, 70 Part 2: Strategic Actions: Strategy Formulation 97 Business-Level Strategy, 98 Competitive Rivalry and Competitive Dynamics, 128 Corporate-Level Strategy, 156 Merger and Acquisition Strategies, 186 International Strategy, 216 Cooperative Strategy, 252 Part 3: Strategic Actions: Strategy Implementation 283 10 Corporate Governance, 284 11 Organizational Structure and Controls, 316 12 Strategic Leadership, 350 13 Strategic Entrepreneurship, 378 Part 4: Cases Name Index, I-1 Company Index, I-15 Subject Index, I-18 iv Brief Contents Preface xiv About the Authors xxi Part 1: Strategic Management Inputs 1: Strategic Management and Strategic Competitiveness Opening Case: McDonald’s Corporation: Firing on All Cylinders while Preparing for the Future Strategic Focus: Circuit City: A Tale of Ineffective Strategy Implementation and Firm Failure The Competitive Landscape The Global Economy Technology and Technological Changes The I/O Model of Above-Average Returns 11 13 The Resource-Based Model of Above-Average Returns Vision and Mission Vision Mission 15 16 17 18 Strategic Focus: Effective Vision and Mission Statements: Why Firms Need Them Stakeholders 19 20 Classifications of Stakeholders Strategic Leaders 20 23 The Work of Effective Strategic Leaders 23 Predicting Outcomes of Strategic Decisions: Profit Pools 24 The Strategic Management Process 25 Summary 26 • Review Questions 27 • Experiential Exercises 27 Video Case 28 • Notes 29 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis 34 Opening Case: Philip Morris International: The Effects of Its External Environment 35 The General, Industry, and Competitor Environments External Environmental Analysis 37 39 v vi Contents Scanning 40 Monitoring Forecasting Assessing 40 41 41 Strategic Focus: Consumers’ Desire to Receive Additional Value When Purchasing Brand-Name Products 42 Segments of the General Environment The Demographic Segment The Economic Segment 43 45 The Political/Legal Segment The Sociocultural Segment The Technological Segment The Global Segment 43 46 46 47 48 The Physical Environment Segment Industry Environment Analysis 49 50 Strategic Focus: Firms’ Efforts to Take Care of the Physical Environment In Which They Compete 51 Threat of New Entrants 52 Bargaining Power of Suppliers Bargaining Power of Buyers 55 56 Threat of Substitute Products 56 Intensity of Rivalry Among Competitors Interpreting Industry Analyses Strategic Groups 57 58 59 Competitor Analysis 59 Ethical Considerations 61 Summary 62 • Review Questions 62 • Experiential Exercises 63 Video Case 64 • Notes 65 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages 70 Opening Case: Apple Defies Gravity with Innovative Genius 71 Analyzing the Internal Organization The Context of Internal Analysis Creating Value 73 73 74 The Challenge of Analyzing the Internal Organization 75 Strategic Focus: GE Builds Management Capabilities and Shares Them with Others 77 Resources, Capabilities, and Core Competencies Resources Capabilities 78 78 80 Core Competencies 80 Building Core Competencies 82 Four Criteria of Sustainable Competitive Advantage 82 Strategic Focus: Ryanair: The Passionate Cost Cutter That Is Both Loved and Hated 84 Value Chain Analysis Outsourcing 89 85 vii 90 Contents Competencies, Strengths, Weaknesses, and Strategic Decisions Summary 91 • Review Questions 91 • Experiential Exercises 92 Video Case 93 • Notes 93 Part 2: Strategic Actions: Strategy Formulation 97 4: Business-Level Strategy 98 Opening Case: Acer Group: Using a “Bare Bones” Cost Structure to Succeed in Global PC Markets 99 Customers: Their Relationship with Business-Level Strategies 101 Effectively Managing Relationships with Customers 101 Reach, Richness, and Affiliation 102 Who: Determining the Customers to Serve 103 What: Determining Which Customer Needs to Satisfy 104 How: Determining Core Competencies Necessary to Satisfy Customer Needs 104 The Purpose of a Business-Level Strategy 105 Types of Business-Level Strategies Cost Leadership Strategy Differentiation Strategy Focus Strategies 107 108 112 116 Strategic Focus: Declaring War against Counterfeiters to Protect Product Integrity and Profitability 117 Strategic Focus: Kazoo Toys: Crisp Differentiation as a Means of Creating Value for a Certain Set of Customers 119 Integrated Cost Leadership/Differentiation Strategy 120 Summary 123 • Review Questions 124 • Experiential Exercises 124 Video Case 125 • Notes 125 5: Competitive Rivalry and Competitive Dynamics 128 Opening Case: Competition in Recessions: Let the Bad Times Roll A Model of Competitive Rivalry Competitor Analysis 129 132 133 Market Commonality Resource Similarity 133 134 Drivers of Competitive Actions and Responses 135 Strategic Focus: The Competitive Battle among Big Box Retailers: Wal-Mart versus All the Others 137 Competitive Rivalry 138 Strategic and Tactical Actions Likelihood of Attack First-Mover Incentives Organizational Size Quality 138 139 139 140 141 Likelihood of Response 142 Type of Competitive Action Actor’s Reputation Dependence on the Market Competitive Dynamics Slow-Cycle Markets 142 143 144 144 143 Contents viii Fast-Cycle Markets 145 Strategic Focus: Soothing the Soul with Kisses—Candy Kisses That Is Standard-Cycle Markets 147 148 Summary 149 • Review Questions 150 • Experiential Exercises 150 Video Case 151 • Notes 151 6: Corporate-Level Strategy 156 Opening Case: Foster’s Group Diversification into the Wine Business 157 Levels of Diversification 159 Low Levels of Diversification 159 Moderate and High Levels of Diversification 160 Reasons for Diversification 161 Value-Creating Diversification: Related Constrained and Related Linked Diversification 163 Operational Relatedness: Sharing Activities 163 Corporate Relatedness: Transferring of Core Competencies 164 Strategic Focus: Oracle’s Related Constrained Diversification Strategy 165 Market Power 166 Simultaneous Operational Relatedness and Corporate Relatedness 167 Unrelated Diversification 168 Efficient Internal Capital Market Allocation 168 Strategic Focus: Johnson & Johnson Uses Both Operational and Corporate Relatedness 169 Restructuring of Assets 171 Strategic Focus: Danaher and ITW: Serial Acquirers of Diversified Industrial Manufacturing Businesses 172 Value-Neutral Diversification: Incentives and Resources 173 Incentives to Diversify 173 Resources and Diversification 176 Value-Reducing Diversification: Managerial Motives to Diversify 177 Summary 179 • Review Questions 179 • Experiential Exercises 180 Video Case 181 • Notes 181 7: Merger and Acquisition Strategies 186 Opening Case: Global Merger and Acquisition Activity during a Global Crisis 187 The Popularity of Merger and Acquisition Strategies 188 Mergers, Acquisitions, and Takeovers: What Are the Differences? 189 Reasons for Acquisitions Increased Market Power 190 190 Overcoming Entry Barriers 192 Cost of New Product Development and Increased Speed to Market 193 Strategic Focus: The Increasing Use of Acquisition Strategies by Chinese Firms as a Means of Gaining Market Power in a Particular Industry 194 Lower Risk Compared to Developing New Products 195 Increased Diversification 195 Strategic Focus: Pfizer’s Proposed Acquisition of Wyeth: Will This Acquisition Be Successful? 196 ix Learning and Developing New Capabilities Problems in Achieving Acquisition Success 197 198 Integration Difficulties 198 Inadequate Evaluation of Target 200 Large or Extraordinary Debt 200 Inability to Achieve Synergy 201 Too Much Diversification 201 Managers Overly Focused on Acquisitions Too Large Effective Acquisitions Restructuring 202 203 203 205 Downsizing 205 Downscoping 206 Leveraged Buyouts 207 Restructuring Outcomes 207 Summary 208 • Review Questions 209 • Experiential Exercises 209 Video Case 210 • Notes 210 8: International Strategy 216 Opening Case: Entry Into China by Foreign Firms and Chinese Firms Reaching for Global Markets 217 Identifying International Opportunities: Incentives to Use an International Strategy 219 Increased Market Size 221 Return on Investment 221 Economies of Scale and Learning 222 Location Advantages International Strategies 222 223 International Business-Level Strategy 223 International Corporate-Level Strategy 225 Strategic Focus: Country Conditions Spawn Successful High Tech Firms in Emerging Markets 226 Environmental Trends 230 Liability of Foreignness Regionalization 230 230 Choice of International Entry Mode Exporting 232 Licensing 232 Strategic Alliances Acquisitions 231 233 234 New Wholly Owned Subsidiary Dynamics of Mode of Entry 235 236 Strategic Competitive Outcomes 237 International Diversification and Returns 237 International Diversification and Innovation Complexity of Managing Multinational Firms Risks in an International Environment Political Risks Economic Risks 238 240 238 237 238 Contents Reshaping the Firm’s Competitive Scope 197 Name Index I-10 Novak, B., 345n Novak, S., 182n Numagami, T., 247n Nummeia, N., 399n Nutialin, C., 71 Nutt, P C., 94n Nuttall, C., 399n Nyaw, M.-K., 280n Nyberg, A J., 213n O Obama, B., 46, 226, 296 Obel, B., 347n Obodaru, O., 20 O’Brien, J M., 254, 380 O’Brien, J P., 184n, 212n Obst, N P., 211n Ocasio, W., 152n O’Connell, A., 181n O’Connell, V., 127n, 248n O’Connor, E J., 94n O’Connor, J P., 313n O’Donnell, S., 313n Ogasavara, M H., 248n Oh, C H., 30n, 67n Oian, J., 213n Ojala, A., 248n, 250n O’Leary, M., 84 Oler, D K., 211n Olhager, J., 280n Olian, J D., 374n Olk, P., 278n Olsen, D M., 246n Olsen, K., 66n Olson, B J., 347n, 348n, 374n Olson, E G., 152n Olson, E M., 345n, 346n O’Mera, B., 126n O’Neill, H., 314n, 345n, 346n, 347n Ong, P K., 67n Ordonez, L., 376n O’Reilly, C A., 310n Oriani, R., 125n, 398n Ormanidhi, O., 126n Ormiston, C., 248n O’Shaughnessy, K C., 214n Oster, S., 195 O’Sullivan, A., 400n O’Sullivan, N., 210n O’Toole, J., 375n Ott, B., 385 Oum, T H., 279n Overdorf, 400n Owen-Smith, J., 401n Owyang, J., 393 Oxley, J E., 280n Ozcan, P., 125n, 281n, 376n, 401n Ozdemir, S Z., 278n Ozment, J., 126n P Pachedo-de-Almeida, G., 29n, 96n Padula, G., 278n Paez, B L., 184n Pak, Y S., 213n Paladino, A., 154n Palazzo, G., 31n Palepu, K., 183n Palich, L E., 184n Palmer, C., 130 Palmer, M., 399n Palmer, T B., 31n, 65n Palmeri, C., 153n Pan, X., 210n Pan, Y., 246n, 249n Pangarkar, N., 154n Pantzalis, C., 247n Papot, T., 93n Parayitam, S., 374n Parente, R., 127n Park, C., 182n, 183n, 184n Park, D., 67n, 213n, 214n Park, J H., 96n, 279n, 374n, 399n Park, K., 183n, 347n Park, S., 29n Park, S H., 152n Park, Y., 249n Parker, A., 218 Parker, D., 152n Parker, S C., 374n, 400n Parkhe, A., 280n, 401n Parmigiani, A., 211n Parry, R., 345 Parvinen, P., 346n Pasternak, J., 94n Paswan, A K., 279n Pasztor, A., 277n Patel, P R., 30n Patnaik, D., Patrick, A O., 263 Patsalos-Fox, M., 310n Patterson, P., 152n Pattnaik, C., 247n Patton, K M., 65n Paul, D L., 249n Pauwels, P., 96n Pavlou, P., 66n Payne, A F., 126n Peaple, A., 66n Pearce, C L., 374n Pearce, J A., III, 314n Pearcell, J A., 301 Pearson, J M., 153n Pedersen, T., 247n, 312n, 349n Peer, M., Peers, M., 210n, 214n Pegels, C., 279n, 374n Pehrsson, A., 181n Pelled, L H., 374n Penalva, A D F., 310n Peneder, M R., 67n Peng, M W., 67n, 95n, 181n, 183n, 211n, 245n, 248n, 249n, 277n, 279n, 311n, 349n, 399n Peng, S., 67n Penn, M., 43 Penner-Hahn, J., 246n, 250n Pennings, J M., 401n Perdreau, F., 214n Perez, A., 255 Perez, E., 96n Perez-Nordtvedt, L., 278n Perez-Pena, R., 214n Perkins, B., 20 Perrone, V., 281n Perry-Smith, J E., 400n Peteraf, M., 67n, 93n Peters, B., 30n Peters, J R., 117 Petersen, B., 247n, 349n Petersen, K J., 246n Peterson, M F., 185n Petitt, B S P., 311n Petkova, A P., 154n Petrick, J A., 373n Petroni, G., 280n Pett, T L., 248n Pettigrew, A., 247n Pettyprice, S., 198 Pfaffer, M D., 313n, 376n Pfeffer, J., 93 Pfeiffer, T., 346n Phan, P H., 214n, 315n Phau, I., 117 Phelps, Michael, 269 Phene, A., 399n Phillips, J R., 77 Phillips, N., 246n Phillips, R A., 31n, 65n Phillips, S., 30n Pick, K., 185n Pignal, S., 263 Pil, F K., 127n, 153n, 376n, 399n Pinch, S., 152n, 348n Pindado, J., 311n Pinto, J., 376n Pisano, V., 249n Piselli, P., 30n Pistre, N., 182n Pitcher, P., 185n Pitt, L F., 126n Pleggenkuhle-Miles, E G., 245n Ployhart, R E., 375n Polanski, T., 119 Pollock, T G., 96n, 127n, 278n, 310n, 313n, 373n Polo, Y., 278n Poon, S K., 125n Poppo, L., 152n, 281n, 376n Porac, J F., 96n, 152n, 278n Porrini, P., 213n, 249n Porter, M E., 29n, 31n, 67n, 68n, 72, 87, 88, 96n, 106, 107, 110, 114, 125n, 126n, 127n, 181n, 182n, 183n, 246n Porter, Michael, 223 Porter, T B., 52 Porth, S J., 345n Posen, H E., 151n, 184n Post, J E., 373n Pouder, R W., 347n Powell, B., 227, 246n, 249n Powell, T C., 151n Powell, W W., 401n Power, M J., 96n Pozen, R C., 312n Prabhu, J C., 212n Prada, P., 67n, 278n, 279n Prahalad, C K., 95n Prechel, H., 212n Prescott, J E., 67n, 93n, 401n Pressman, A., 36 Preston, L E., 373n Price, G K., 279n Price, R., 398n Priem, R L., 65n, 93n, 125n, 152n, 313n, 346n, 347n, 373n Prince, E T., 281n, 375n Prince, J T., 279n Probst, G., 29n, 377n Propsero, M A., 30n Pruthi, S., 211n, 249n Pucik, V., 377n Puffer, S M., 30n Puranam, P., 126n, 127n, 182n, 212n, 278n, 281n, 345n, 374n, 401n Puryear, R., 30n Putz, F., 346n, 347n Puumalainen, K., 399n Pyoria, P., 376n Q Qian, W., 249n Quang, T., 182n Quinn, J B., 95n Quinn, J F., 373n Quint, B., 183n Quintens, L., 96n R Radner, R., 67n Rae-Dupree, J., 385 Raes, A M L., 373n Raff, H., 249n Ragatz, G L., 246n Raghavan, A., Ragozzino, R., 213n Raheja, C G., 313n Rahman, M., 31n Rahman, N., 248n Raiff, M E., 277n Raisch, S., 29n, 93n, 346n Raj, T., 127n Rajadhyaksha, U., 20, 31n Rajagopalan, N., 184n, 210n, 374n Rajala, A., 348n Rajan, M V., 347n Rajan, R., 311n Rajand, M., 214n Rajgopal, S., 311n Rajiv, S., 95n Raju, R., 305 I-11 Ring, P S., 250n Riposo, J., 377n Rishi, M., 312n Ritzman, L P., 96n Rivera-Torres, P., 65n Rivkin, J., 346n Robbins, G E., 314n Roberson, Q., 376n, 400n Roberts, D., 373n Roberts, J., 312n Roberts, K H., 346n Roberts, P W., 154n Robertson, J., 130 Robertson, P L., 30n Robin, A., 313n Robinson, R B., Jr., 301, 314n Robinson, S L., 311n, 377n Robinson, W T., 153n Robson, M J., 248n Rock, E B., 185n Rockoff, J D., 279n Rod, M., 281n Roddick, A., 397 Rodriguez, A I., 154n Rodriguez, E., 280n Rodriguez, G C., 311n Rodriguez, P., 250n Rodriguez-Duarte, A., 182n Rodriguez-Pinto, A I., 151n Roe, R A., 373n Roengpitya, R., 311n Rohwedder, C., 263 Roller, L H., 152n Romis, M., 96n Ronaldo, 269 Rose, E I., 151n Rose, L C., 184n Rosen, R., 185n, 212n Rosenbloom, S., 137, 370 Rosenkopf, L., 280n Rosenzweig, P., 249n Ross, D., 183n Ross, J., 278n Ross, R W., 279n Ross, Steven J., 24 Rosse-Ackerman, S., 184n Rostker, B D., 377n Roth, A., 249n Roth, K., 313n, 348n Rothaemel, F., 30n, 95n, 127n, 182n, 211n, 245n, 278n, 279n, 281n, 400n, 401n, 402n Rottman, J W., 281n Rouse, T., 250n Rowe, C., 346n Rowe, G., 77, 377n Rowe, W G., 185n, 347n Rowles, C M., 347n Rowles, M., 347n Rowley, C., 182n Roy, A., 127n Rubineau, B., 347n Ruckman, K., 401n Rudberg, M., 280n Rudman, K., 313n Ruefli, T W., 93n Rufin, C., 245n Ruggerio, B., 119 Rugman, A., 67n, 246n, 247n, 248n, 345n, 348n Ruhe, J A., 20, 31n Rui, H., 212n Ruigrok, W., 346n Rukstad, M G., 125n Rumelt, R P., 126n, 160, 181n, 183n, 347n Rungtusanatham, M J., 67n Rupp, D E., 315n Rust, K G., 213n Rutherford, M A., 310n, 311n, 374n Rutherford, M W., 397n Ryan, M., 249n Ryman, J A., 31n, 152n Ryu, S., 281n S Saarenketo, S., 399n Sachs, S., 373n Safizadeh, M H., 96n Safko, L., 393 Sage, 346n Sagoi, L., 188 Sahay, A., 152n Salk, J E., 248n Salmador, M P., 67n Salmon, S., 347n Salomo, S., 280n Salomon, R M., 94n, 95n Salter, A., 400n Salvador, F., 67n Sambharya, R., 373n Sampson, R C., 280n, 401n Samwick, A A., 182n Sanchez, C M., 213n, 249n Sanchez, R., 127n, 154n Sanchez-Manzanares, M., 374n Sandberg, J., 375n Sanders, L., 184n, 279n Sanders, W G., 185n, 314n Sandonis, J., 278n Sandulli, F D., 182n Sandvig, J C., 184n Sandvik, K., 211n Sang Kim, Y., 311n Sanna-Randaccio, F., 65n Santala, M., 346n Santalo, J., 212n Santiago-Castro, M., 310n Santini, L., 315n Santoro, M D., 66n Santos, J., 399n Santos, V., 373n Santulli, R., 151n Saparito, P A., 278n Sapienza, H J., 31n, 245n, 249n, 278n, 280n, 398n, 399n, 401n Sarkar, M B., 65n, 96n, 153n, 249n, 281n, 400n Sato, S., 397n Satorra, A., 152n Sawhney, M., 96n Sawka, K A., 68n Sawyer, K., 280n Saxton, T., 212n Sayles, L R., 398n Schaus, R., 248n Schechner, S., 278n Scheck, J., 279n, 330, 352 Schegelmilch, B B., 400n Scheitzer, M E., 376n Schenck, J., 93n Schendel, D E., 126n, 183n, 347n Scherer, R M., 183n, 184n Schiele, H., 152n Schijven, M., 210n, 212n, 213n, 401n Schildt, H., 213n, 398n, 400n Schilling, M A., 277n, 346n Schindehutte, M., 397n Schjven, M., 314n Schlegelmilch, B B., 250n, 345n Schlingemann, F P., 212n Schmid, N M., 181n, 348n Schmidt, J A., 212n Schminke, M., 376n Schnatterly, K., 312n Schneider, A., 214n Schneider, G., 346n Schneider, M., 374n Schoch, H., 399n Schoemaker, P J H., 75, 94n Scholes, L., 214n Scholes, M., 184n Scholnick, B., 374n Schoorman, F D., 281n, 374n, 375n Schorr, I., 67n Schrage, B N., 315n Schrage, M., 151n Schramm, C J., 398n, 402n Schroder, Gerhard, 273 Schulze, W S., 67n, 127n Schumpeter, J., 139, 153n, 398n Schwab, A., 281n Schwarz, J O., 65n Schweppes, Jacob, 209 Scifres, E., 214n, 346n Scott, L., 370 Scott, M., 84, 385 Searcey, D., 29n Sechler, B., 345n Seidman, D., 95n Selden, L., 126n Selsky, J W., 29n, 151n Selton, R., 279n Semadeni, M., 152n Sen, B., 400n Sen, N., 312n, 374n Sender, H., 245n Senge, P M., 277n Name Index Rake, M., 296 Ralston, D A., 247n Ram, M., 126n Raman, A., 349n Raman, A P., 95n, 349n Ramaswamy, K., 311n, 313n Ramirez, G G., 374n Ramseyer, J M., 314n Randall, T., 198 Rangan, S., 248n Ranson, L., 67n Rapoza, K., 218, 246n Rappaport, 212n Rasheed, A A., 125n Rasmusen, E B., 314n Ratanpal, A., 30n Rauwald, C., 218, 246n, 279n Raven, P V., 279n Ravenscraft, D J., 214n Ravichandran, T., 347n Rawenscraft, D J., 183n Rawley, E., 347n Ray, S., 249n Raymond, M A., 248n Raynor, M E., 181n, 183n Rayport, J F., 393 Ready, D A., 373n Rebeiz, K., 312n Rebello, M J., 212n Reboud, S., 68n Redding, G., 377n Reeb, D M., 181n, 245n, 250n, 310n, 312n Reed, J., 212n, 249n Reed, R., 346n, 347n Reed, S., 274 Rees, C., 66n Regan, J., 361 Regmi, A., 126n Regner, F., 153n Rego, L L., 125n, 127n Rehbein, K., 313n Reilbstein, D J., 152n Reilly, D., 311n Reinert, U., 250n Reitzig, M., 126n Ren, H., 280n, 399n Renn, R W., 278n Renneboog, L., 210n Reuber, R., 95n Reuer, J J., 210n, 213n, 248n, 277n, 278n, 279n, 280n, 281n, 349n, 399n, 401n Reus, T H., 212n Rho, S., 67n Riberiro, J., 305 Ricard, J E., 181n Ricart, J E., 245n Rice, J., 64 Rich, M., 380 Richtel, M., 385 Rico, R., 374n Rindfleisch, A., 249n Rindova, V P., 127n, 154n, 373n Name Index I-12 Sengupta, P., 312n Seph, T W., 400n Seppanen, R., 277n Serchuk, D., 297 Sernadeni, M., 210n, 213n Servaes, H., 311n Seth, A., 214n, 248n Severt, D., 279n Seward, J K., 185n Sexton, D L., 94n, 211n, 277n, 397n, 398n, 399n, 400n, 401n Shachmurowe, Y., 247n Shackleton, J., 127n Shaffer, M A., 152n, 346n Shah, R H., 401n Shahrokhi, M., 247n Shalley, C E., 400n Shamir, B., 374n Shamsie, J., 31n, 67n, 93n, 152n, 154n Shane, S., 398n Shank, M., 153n Shankar, R., 127n Shankar, S., 248n Shankar, V., 94n, 281n Shanley, M., 67n Shao, A T., 152n, 248n Shapiro, D M., 250n, 314n Sharma, A., 218, 247n Sharma, D., 152n Sharma, P., 398n Sharma, S., 31n, 315n Shaver, J M., 184n, 213n, 250n Shaver, K G., 65n Shaw, K W., 312n Shawer, J M., 246n Sheaffer, Z., 281n Sheehan, N T., 93n, 126n Shen, W., 375n Shenkar, O., 246n, 248n, 280n, 399n Shepherd, 279n Shepherd, A., 210n Shepherd, D A., 249n, 278n, 346n, 349n, 398n Shervani, T A., 182n Sherwood, A L., 278n Shevlin, T., 311n Shi, Y., 96n Shields, M D., 346n, 377n Shih, W C., 347n Shill, W., 314n, 375n Shimizu, K., 30n, 66n, 125n, 127n, 184n, 210n, 212n, 214n, 246n, 249n, 250n, 375n, 399n, 401n Shimizutani, S., 246n, 250n Shin, H H., 183n, 250n, 347n Shin, J., 95n, 246n, 399n Shin, N., 182n Shin, S J., 347n Shipilov, A V., 280n Shirouzu, N., 218, 246n, 250n, 279n Shivdasani, A., 312n Shleifer, A., 183n Shockley, R L., 279n Shoemaker, P J H., 31n Shook, C L., 373n Shook, J., 349n Short, J C., 29n, 31n, 65n, 400n Shortell, S M., 127n, 280n Shropshire, C., 313n, 315n Shub, A N., 346n Shvyrkov, O., 373n Shwiff, K., 297 Shyam Kumar, M V., 279n Siciliano, J I, 31n Siebert, M., 361 Siegel, D S., 214n Siemaszko, C., 314n Siggelkow, N., 346n Silver, S., 218, 279n Silver-Greenberg, J., 188, 210n Simmon, D G., 93n, 94n Simms, J., 66n Simon, B., 346n Simon, D G., 29n, 30n, 67n, 125n, 127n, 151n, 184n, 212n, 213n, 277n, 281n, 373n, 397n, 398n, 401n, 402n Simon, D H., 279n Simons, T., 374n, 376n Sims, H P., 374n Sims, K T., 127n Simsek, Z., 153n, 281n, 373n, 374n Sin, L Y M., 96n, 376n, 401n Singer, J., 183n Singh, H., 127n, 183n, 185n, 212n, 277n, 280n, 281n, 312n, 401n Singh, J., 182n, 398n Singh, J V., 95n, 375n Singh, K., 183n, 277n Singh, M., 239, 311n Sinha, J., 183n Sinha, R K., 66n, 153n, 313n, 397n Sirdeshmuldh, D., 126n Sirkin, H L., 250n, 278n Sirmon, D G., 65n, 311n, 373n, 397n Sironi, A., 312n Sirower, 212n Skarmeas, D., 96n Skill, M S., 184n, 374n Skinner, P., 308 Skovoroda, R., 315n Slahudin, C., 184n Slangen, A H L., 249n Slater, J., 248n Slater, S F., 345n, 346n, 347n, 348n, 375n Sleuwaegen, L., 30n, 96n, 152n, 154n Slevin, D P., 346n, 347n Sloan, P., Jr., 347n Slocum, J W., 29n, 31n, 125n Slota, J., 242 Smallwood, N., 375n Smart, D L., 212n Smit, S., 125n Smith, A., 311n Smith, A D., 154n Smith, E., 279n Smith, H J., 94n Smith, J B., 398n Smith, K A., 374n Smith, K G., 30n, 94n, 95n, 151n, 153n, 154n, 313n, 374n, 376n, 397n, 400n Smith, M P., 312n Snell, R S., 247n Snell, S A., 93n Snow, C C., 345n, 349n Snyder, W M., 400n Sobczak, M., 310n Sobero, M., 398n Soble, J., 352 Sobrero, M., 125n Sohi, R S., 95n Som, A., 401n Somaya, D., 398n Somech, A., 400n Song, J., 95n, 246n, 248n, 250n, 399n Song, M., 95n, 154n, 211n, 400n Song, W., 213n Song, Y., 279n, 374n Sonka, S., 152n Sonnenfeld, J A., 31n, 181n, 185n, 374n Sorcher, M., 374n Sorenson, T L., 151n, 277n Sorescu, A B., 212n Sorkin, A R., 183n, 211n Sosa, M E., 347n Spataro, S E., 66n Spector, T D., 398n Spencer, J W., 66n, 125n, 153n, 182n, 245n, 347n, 376n Spencer, X S Y., 347n Spickett-Jones, J G., 126n Spinosa, C., 345n Spotts, G., 77 Spulber, D F., 126n, 151n Srikanth, K., 182n, 212n, 281n, 401n Srinivasan, M., 183n Srivastava, A., 153n, 374n Srivastava, M., 66n, 125n Stadler, C., 95n Stahl, G K., 249n Stähler, F., 249n Stalk, G., Jr., 182n Stalker, G M., 345n Stam, W., 399n Staples, C L., 313n Starbuck, W H., 94n Steel, E., 125n, 126n, 279n Steensma, H K., 245n, 248n, 278n, 280n, 346n, 377n Steers, R M., 94n, 245n, 399n Stefanou, S E., 126n Steffens, P., 29n Stein, S., 380 Steinberg, B., 183n, 311n Steindel, C., 184n Stephan, J., 315n, 346n Stern, S., 182n Sternquist, B., 249n Stevens, J M., 377n Stewart, T A., 95n, 347n, 349n Stewart, W H., 65n Stieglitz, N., 95n, 400n Stiles, P., 310n, 312n Stinebaker, K., 96n Stirling, D., 376n Stoll, J D., 218, 246n Stone, B., 71, 380 Stone, R., 181n Stonebraker, P W., 346n Storz, C., 246n Strang, S., 127n Street, C T., 281n Stringa, O., 126n Stringer, H., 359 Stromberg, P., 214n Strutton, D., 246n Stuart, T E., 278n Stucliffe, K M., 375n Stulz, R M., 29n, 245n, 247n Sturman, M C., 212n Styls, C., 152n Su, K.-H., 152n Su, Y., 315n, 399n Suarez, F F., 153n, 277n, 398n Suarez-Gonzalez, I., 126n Subramani, M R., 277n Subramaniam, M., 68n, 151n, 212n, 398n, 400n Subramanian, V., 31n, 67n, 94n Sudarsanam, S., 211n, 310n Suddaby, R., 398n Sudharshan, D., 127n Suh, Y G., 213n Sull, D., 65n, 345n Sullivan, O., 66n Sun, H., 280n Sun, S., 126n Sundaramurthy, C., 314n, 346n Sundqvist, S., 277n Sunhaib, M., 127n Sutcliffe, K M., 66n, 153n Sutherland, J W., 67n Sutton, R I., 400n Suur-Inkeroinen, H., 29n, 65n, 125n Svahn, S., 348n Svobodina, L., 248n, 278n Swaminathan, A., 185n, 211n Swaminathan, V., 213n, 401n Swan, K S., 247n Swejnar, J., 30n I-13 T Taft, D K., 95n Tahir, R., 246n Tait, N., 242 Talaulicar, T., 30n, 154n Talbott, R., 113–115 Talley, K., 263 Tallman, S., 152n, 246n, 348n Tam, P W., 96n Tan, D., 277n Tan, H., 66n, 281n Tan, J., 67n, 277n Tan, W.-L., 399n Tandon, K., 311n Tang, J., 399n Tanokura, Y., 375n Tanriverdi, H., 182n Tatoglu, E., 247n Taylor, A., 246n Taylor, E., 183n Taylor, P., 29n Taylor, S., 94n Teagarden, M B., 218 Teah, M., 117 Teece, D J., 126n, 183n, 347n Tekleab, A G., 96n Tempel, A., 246n, 247n, 345n Teng, B.-S., 153n, 277n, 278n, 348n, 401n Terpstra, R H., 247n Terrell, K., 30n Tesfatsion, L., 279n Tetrick, L E., 96n Thakurta, P G., 305 Thang, L C., 182n Theodorou, P., 127n Thomas, A R., 280n Thomas, C., 310n, 374n Thomas, D E., 152n, 375n Thomas, H., 95n, 127n, 152n Thomas, R J., 375n Thomas, S., 211n, 214n Thomas-Solansky, S., 126n Thomhill, S., 398n Thompson, Kevin, 24 Thompson, T A., 310n Thomsen, S., 245n, 280n, 312n Thornhill, S., 127n Thornton, D., 29n Thottan, J., 182n Thurm, S., 213n, 312n, 313n Thursby, M., 279n Tianle, Y., 249n Tighe, C., 211n Tihanyi, L., 185n, 213n, 214n, 245n, 248n, 250n, 278n, 280n, 312n, 345n, 346n, 347n, 374n Tijan, A K., 125n Tikkanen, H., 29n, 65n, 125n, 154n Timmons, H., 305 Tippins, M J., 95n Tita, B., 172 Tiwana, A., 96n, 277n, 278n, 279n, 280n, 400n, 401n Tobak, S., 352 Todd, R., 313n Todd, S Y., 29n, 93n, 153n Todo, Y., 246n, 250n Toffel, M W., 29n, 31n, 125n Toffler, D G., 376n Tomas, G., 345n, 348n Toms, S., 214n, 313n Tong, T W., 67n, 248n, 277n, 279n, 349n Tong, V., 285 Torikka, J., 279n Tortorici, V., 210n Tosi, H L., 310n Tossavainen, P., 348n, 349n Townsend, J D., 348n Tracey, P., 246n Trachtenberg, J A., 297 Travis, D V., 126n Trebeschi, G., 30n Trevino, L K., 311n, 377n Trevor, C O., 213n Tsai, K H., 66n, 213n Tsai, T.-I., 184n Tsai, W., 152n, 399n Tsai, W H., 184n Tsai, Y.-T., 211n Tsang, E W K., 248n, 278n, 399n Tschang, C.-C., 218, 239, 242, 373n Tse, A C B., 96n, 376n, 401n Tse, D K., 249n Tseng, C Y., 211n Tsui, A., 373n, 402n Tucci, L., 373n Tuch, C., 210n Tucker, S., 195, 218 Tudor, A., 277n Tung, R L., 245n Tunisini, A., 373n Turk, T A., 185n, 277n, 281n, 311n Turner, J., 374n Turner, K L., 347n Tuschke, A C., 314n Tushman, M L., 346n Tuunanen, M., 279n, 349n Tyler, B B., 67n U Uhlenbruck, K., 31n, 66n, 127n, 152n, 210n, 213n, 246n, 250n, 278n, 375n, 399n Ulrich, D., 375n, 377n Ulwick, A W., 126n, 127n Ungson, G R., 249n, 346n Uotila, J., 65n, 398n Urbany, J E., 68n Urnali, C L., 281n Useem, M., 96n, 338 Ushijima, T., 211n, 213n Uu, Y., 95n V Vaaler, P M., 29n, 154n, 315n Vaara, E., 249n Vaidyanath, D., 95n, 249n, 277n, 280n, 401n Vaidyanathan, G., 126n Valikangas, L., 96n Valle Cabrera, R., 311n Van, Y., 247n, 249n Vance, A., 211n, 399n Vandebroek, S., 81 van de Gucht, L M., 154n Van de Laar, M., 210n Vanden Bergh, R G., 65n, 66n van den Dam, R., 67n Van der Vegt, G S., 374n Van de Ven, A H., 280n Van Looy, B., 96n Van Oijen, A A., 182n van Oyen, M P., 127n van Putten, A B., 152n Van Tulder, R., 245n Vapola, T., 348n, 349n Vara, B., 166 Varadarajan, P R., 152n Vascellaro, J E., 279n Vassolo, R., 277n, 376n Vaynerchuk, G., 392 Vázquez, L., 280n Vazquez, X H., 96n Veiga, J F., 153n, 373n, 374n Vekselberg, V., 273 Veliyath, R., 185n, 313n Veloso, F M., 183n Venkatraman, N., 182n, 277n, 400n Vera, D., 213n Verbeke, A., 246n, 247n, 345n, 348n Verbeke, W., 31n, 375n Verdin, P., 31n, 67n, 94n Verhofen, M., 181n Vermeulen, F., 211n, 212n, 213n Vernon, R., 245n Vernon, Raymond, 220 Verwall, E., 31n, 375n Vestring, T., 250n Veugelers, R., 65n Victor, B., 400n Viguerie, S P., 125n, 184n Vilikovska, Z., 93n Villalonga, B., 312n Villanueva, J., 280n Vishny, R W., 183n Vishwanath, V., 95n Vissa, B., 249n Volozh, A., 227 von Krog, G., 93n Voola, R., 281n Voorhees, C M., 278n Voss, G B., 126n Voss, H., 245n Voss, Z G., 126n Vrontis, D., 66n Vuocolo, J., 184n W Wachwa, A., 127n Wade, J B., 278n, 310n, 313n Wagner, J., 346n Wagoner, R., 296 Wahab, M I M., 127n Wakabayashi, D., 279n Wakabayashi, K., 347n Waklen, R., 212n Waldman, D A., 213n Walgenbach, P., 246n, 247n, 345n Walker, R M., 211n Wallace, J., 153n Waller, E R., 182n, 184n Walsh, J P., 31n, 67n, 185n, 213n, 310n, 313n, 314n Walter, I., 181n, 348n Walters, B A., 65n, 95n, 312n Walters, S., 181n Wameryd, K., 347n Wamock, F E., 245n, 247n Wan, W P., 31n, 66n, 153n, 185n, 211n, 245n, 246n, 250n, 278n, 280n, 314n, 377n Wang, C., 313n Wang, C L., 249n, 277n Wang, D Y L., 245n Wang, E Z., 312n Wang, F., 153n Wang, H., 245n, 373n Wang, H C., 181n Wang, J.-C., 66n, 213n Wang, L., 346n Wang, S., 170 Wang, Y., 278n Wang, Y.-S., 182n Ward, A., 31n, 181n, 185n, 374n Ward, S., 31n Warner, M., 182n Wasbum, M H., 377n Wassener, B., 305 Wasserman, N., 398n Wasti, S A., 96n Wasti, S N., 96n Watanabe, K., 153n Waters, R., 71, 184n Watkins, M D., 213n Weaver, G R., 376n Weaver, K M., 280n Webb, A., 246n Webb, E., 314n Webb, J W., 29n, 30n, 93n, 127n, 151n, 281n, 311n, 346n, 349n, 373n, 376n, 397n, 399n, 402n Name Index Swobodina, L., 67n, 96n Szlanko, B., 239 Szulanski, G., 279n Name Index I-14 Webber, A M., 95n Webber, B., 153n Weber, J., 311n Weber, K., 66n Wedel, M., 126n Weibel, A., 346n, 377n Weick, K E., 153n Weigelt, C., 65n, 96n, 278n Weinberg, Mark, Sir, 181 Weingart, L R., 400n Weiss, J., 401n Weitzel, U., 249n Welbourne, T M., 313n Welch, D., 66n, 96n Welch, J., 65n, 77, 82, 347n, 359, 361, 375n, 377n Welch, S., 65n, 347n, 375n, 377n Wellington, F., 278n Welsh, D H B., 279n Wemer, S., 246n, 248n Wenger, E C., 400n Werder, A V., 30n, 154n Werdigier, J., 374n Werema, S., 214n Werle, M J., 96n Werner, S., 310n Wernerfelt, B., 154n, 182n, 184n Werther, W B., 374n West, G P., III, 94n Westgren, R., 152n Westney, D E., 248n Westphal, J D., 127n, 185n, 210n, 213n, 311n, 312n, 314n, 373n, 374n, 401n Wetergins, A., 125n Whalen, J., 212n Whipp, L., 352 Whitacre, E., 359 Whitaker, C., 241 White, 249n White, B., 211n White, E., 360 White, G L., 227, 274 White, M A., 65n White, R E., 77, 127n, 152n, 185n, 214n, 245n, 346n Whitman, M., 176, 229, 361 Whitney, J O., 347n Whittington, K B., 401n Whittome, J R M., 126n Wiersema, M F., 154n, 185n, 214n, 249n, 311n, 348n, 377n Wiggins, J., 182n Wiggins, R R., 93n Wiklund, J., 210n, 249n, 278n, 279n, 349n Wildstrom, C., 71 Wilkerson, D B., 184n Wilkinson, T J., 280n Williams, C A., 315n Williams, J R., 154n, 184n, 278n Williams, L S., 20 Williams, M A., 182n, 184n Williams, R., 154n Williams, S., 99 Williamson, O E., 182n, 183n, 212n, 311n, 347n Williamson, P., 348n, 399n Wilson, D., 36 Wilson, D T., 183n Wilstrom, P., 211n Wincent, J., 398n Wingfield, N., 93n, 352 Winklhover, H., 248n Winter, S G., 95n Wiseman, R M., 279n, 310n, 313n Withers, M C., 184n Witt, M A., 245n Witt, P., 314n Wittmann, C M., 279n Woiceshyn, J., 94n Wolf, B., 400n Wolf, J., 348n Wolf, M., 314n Wolff, J A., 248n Wolff, M F., 347n Wolfson, M., 184n Wolter, C., 183n Woo, C Y., 30n, 152n, 182n Wood, G., 214n Woods, T., 212n Woods, Tiger, 260, 269 Woodside, A., 182n Wooster, R B., 249n Wortham, J., 385 Worthen, B., 166, 279n, 330 Woykee, E., 218, 248n Wright, M., 211n, 214n, 245n, 249n, 278n, 373n Wright, P., 31n, 95n, 211n, 250n, 312n, 376n Wright, P M., 347n Wright, R P., 310n Wright, S., 68n Wrigley, L., 181n Wruck, K H., 214n Wu, F., 250n Wu, H., 281n Wu, J B., 373n Wu, T., 94n Wu, W.-P., 246n Wu, X., 310n Wu, Z., 213n Wujin, C., 281n Wurgler, J., 210n Wurtzel, A., Wurtzel, S S., X Xia, J., 277n Xie, F., 313n Xin,, K R., 373n Xu, D., 152n, 183n, 246n, 247n, 248n, 315n Xu, E., 399n Xu, K., 376n Xu, W., 211n Y Yago, G., 212n Yamaguchi, Y., 277n Yan, Y., 278n, 280n Yang, B., 374n Yang, J., 279n, 376n Yang, Q., 399n Yang, R., 126n Yao, X., 398n Yaprak, A., 247n Yarbrough, C., 280n Yau, O H M., 96n, 376n, 401n Yavas, U., 248n Ybarra, C E., 277n, 281n Ye, J., 248n Yeaple, S., 399n Yee, A., 393 Yeniyurt, S., 348n Yeung, B., 246n, 248n Yeung, G., 153n Yi, S., 213n Yip, G S., 67n, 212n Yiu, D., 31n, 211n, 250n, 278n, 310n, 314n, 375n, 377n, 399n Yli-Renko, H., 401n Yokota, R., 374n Yoo, J W., 347n York, J G., 68n Younassi, O., 377n Youndt, M A., 398n Young, D., 181n, 183n, 347n Young, G., 151n, 153n, 280n Yu, C., 279n Yu, L., 245n, 400n Yu, T., 68n, 125n, 151n, 152n, 212n, 346n, 348n Yucel, E., 314n, 375n Yue, D R., 246n Yueh, L., 66n Z Zabinski, E., 211n Zaheer, A., 247n, 248n, 348n Zaheer, S., 247n, 248n Zahir, S., 212n Zahra, S A., 31n, 95n, 212n, 213n, 214n, 245n, 278n, 312n, 376n, 398n, 399n, 400n Zajac, E J., 311n, 314n, 347n, 348n, 374n Zalewski, D A., 184n Zamiska, N., 248n Zamora, V., 311n Zanarone, G., 280n Zaneer, A., 281n Zarckoohi, A., 66n, 95n, 312n Zatzick, C D., 214n Zbaracki, M J., 93n Zeghal, D., 374n Zeiner, B A., 250n Zeithaml, C P., 96n Zell, D M., 330 Zelleke, A S., 185n Zellweger, T., 310n Zemsky, P., 29n Zen, F., 67n Zeng, M., 211n Zenger, T R., 183n Zhan, W., 248n, 280n Zhang, H., 399n Zhang, J., 126n Zhang, L., 154n Zhang, X., 313n, 376n Zhang, Y., 313n, 374n, 377n Zhang, Z.-X., 373n Zhao, J., 213n, 248n, 250n Zhao, M., 246n Zheng, P., 245n Zhengrong, Shi, 226 Zhou, C., 348n, 400n Zhou, Chi, 141 Zhou, D., 152n Zhou, H., 347n Zhou, K Z., 152n, 281n, 376n Zhou, L., 246n Zhu, D H., 67n, 151n Zhu, H., 210n, 401n Ziedonis, A A., 248n Zimmerman, A., 117, 137 Zimmerman, M., 249n Zingales, L., 311n Ziobro, P., 4, 31n Zlexandre, M T., 127n Zolkiewski, J., 373n Zollo, M., 94n, 127n, 212n, 280n, 401n Zott, C., 31n, 96n, 125n, 126n Zou, H., 245n, 246n, 250n, 315n Zoumas, B L., 126n Zutter, C J., 212n Zweig, P L., 184n Zysman, J., 67n Company Index A Abbott Laboratories, 169 Abbott Workholding Products, Inc., 175 ABC, 259, 267 Accenture, Ltd., 92, 267, 270, 317 Ace Hardware, 268 Acer Group, 99–100, 102, 176 Activision Blizzard, Inc., 261 Addax Petroleum Corp., 194 Aderans Holdings Company, 304 Advanced Micro Devices, 267 Aetna, Inc., 167 Agility Alliance, 342 AIG, 189, 294, 300, 306 Air Canada, 259, 341 Air China, 259 Air France, 63, 259 Air France-KLM, 265 Airbus, 56–57, 59, 84, 138, 236 Alcatel-Lucent, 217 Alcutel-Lucent, 266 Alliant Techsystems Inc., 255 All Nippon Airways, 63 Aluminum Corp of China (Chinalco), 194, 195 Amazon.com, 40, 48, 78, 101– 102, 379, 380, 382 American Airlines, 63, 107, 259 America Online (AOL), 193 Amgen Inc., 196 Anglo American, 189 Anne Fontaine, 120 Ann Taylor, 120 AOL, 174 Apple Computer, 71–72, 81, 113, 263, 266, 330, 351–352, 384, 387, 388 Arkansas Best, 133 Asiana Airlines, 264 AstraZeneca, 198, 394 Asustek, 190 Atria Group, Inc., 35 AT&T, 234 Aurobindo Pharma, Ltd., 263 Aviation Week Group, 206 Avis, 266 Aviva PLC, 190, 191 Avon, 336–337, 361 B Baidu, Inc., 217, 233, 240 Bank Larrain Vial, 263 Bank of America, 299 Bank One, 39 Barclays Capital, 174, 379 BASF, 223 BEA Systems, 165, 241 Bebo, 193 Bell Canada, 217 Bell Helicopter, 333 Beringer Wine, 157 Best Buy, 6–8, 16 Best Co., 191 Big Lots, Inc., 109, 111 Blackberry, 71 Blackstone Group, 263 Bloomingdale’s, 262 Blue Matter Press, 263 Body Shop International, 397 Boeing, 56–57, 59, 84, 138, 141, 191, 236 Bombay Co., Borders, 78, 295 Bose, 113–114 Boston Consulting Group (BCG), 180, 381 Boston Market, Boston Red Sox, 92 Boston Scientific, 169 BP Solar, 226 British Airways, 63, 259 British American Tobacco, 39, 181 British Petroleum (BP), 13, 273 Brooklyn Motor, 190 BT Group, 296 Bucyrus-Erie, 233 Burger King, 4, 24, 57 Business Week, 206 BYD Co., 264 C Cadbury, 147, 166, 209 California Public Employees Retirement System (CalPERS), 263, 292, 301 Callaway, 115, 117 Campbell Soup, 160 Capgemini, 92 Caremark Rx, Inc., 167, 191 Cargolux, 264 CarMax, Carrefour, 136–138, 137 Carrier Corporation, 197 Caterpillar, Inc., 81, 113, 135, 233 Cathay Pacific, 63 CEMEX, 229, 230 Cessna Aircraft, 333 Channel International, 345 Chaparral Steel, 81 Chico’s, 120 China Central Television, 269 China Minmetals, 235 China Southern Airlines, 63, 259 China YCT International, 304 Chipotle Mexican Grill (GMC), 3–4, 244 Choice Hotels, 394 Chrysler Corporation, 37 Chrysler Group LLC, Cigna Corp., 167 Circuit City, LLC, 6, 7–8, 22 Cisco Systems, 195, 203, 254, 267, 270, 317, 318, 319, 321, 324, 329, 342, 393 Citibank, 168 Citigroup, 168, 174, 187, 296 Claris Lifesciences, Inc., 263 Clearwire Corporation, 217 CNOCC, 194 Coach, Inc., 116–117 Coca-Cola, 59, 85, 129–130, 131, 134, 221 Colgate-Palmolive, 41, 54, 103 Communication Test Design Inc., 206 Compaq, 143 comScore Media Metrix, 102 Conn’s, Inc., 116 Continental Airlines, 61, 63, 106–107, 130, 133, 259, 341 Convergys, 41 Con-way, Inc., 133 Costco, 110, 137, 141 Cox Communications, 217 Craftsman Hand Tools, 172 Crate & Barrel, 81 Cummins Engine, 233 CVS/Caremark, 191 CVS Corporation, 167, 191 D Daewoo Engineering & Construction Co., 200 Danaher, 171–172 Darden’s Restaurants, 135 Data Domain, 189, 200 Datamonitor, 124 DaVinci Institute, 64 Dealogic, 187 Delhaize Group, 262 Dell, Inc., 51, 53, 58, 99–100, 143, 146, 167, 176, 321 Del Monte Foods, 42 Delta Airlines, 61, 63, 106, 130, 259, 265 Delta Consolidated Industries, 172 Deutsche Bank, 200 Deutsche Post World Net, 134 DHL Express, 134, 166 Dillard’s, 262 Dimension Films, 168 Disney Corporation, 230, 259, 263, 267 Dow Chemical Co., 89 Dow Jones & Co., 257 Dragonair, 259 Dubliss, 233 Duferco Group, 258 Duferdofin, 258 DuPont, 324, 351–352 Dylan’s Candy Bar, 129–131, 134 I-15 Company Index I-16 E EasyJet, 63, 295, 296 eBay, 174, 176, 228, 229, 240, 241, 361 Ebewe Pharma, 263 Electronic Arts, 260–261 Electronic Data Systems (EDS), 329, 342 Eli Lilly, 293 EMC, 342 EMI Group, Ltd., 217 Emirates, 63 eMusic, 263 Enron, 291, 294, 306 Ericsson, 218 European Union (EU), 229, 231, 239 Exelon, 190 eXMeritus, 191 Express Scripts, 167 Exxon-Mobil, 385, 387 F Facebook, 9, 71, 100, 102, 118, 392 FAO Schwarz, 190, 191 Federal Express (FedEx), 41, 88, 133–135, 166, 199, 236, 266 Federal Trade Commission, 192 Federated Department Stores, 370 Fiat, 335 Fiat SpA, FireFox, 227 Flextronics, 167 Food Lion, 262 Ford Motor Company, 4, 18, 53–54, 80, 90, 104, 167, 190, 222 Ford of Europe, 335 Foster’s Group, 157–158, 163, 177 FOX, 259, 263 France Telecom SA’s Orange, 217 Friendster, Frito-Lay, 42, 104, 338 Fujitsu, 254, 256, 267 G Gamesa, 338 Gap, Inc., 104 Gartner Group, 64 Gateway, 99–100, 143, 190 Gazprom, 273 GE Capital, 319 Genentech Inc., 196 General Electric (GE), 9, 10, 25, 42, 76–77, 80, 82, 130, 160, 171, 318, 358–359, 361, 383 General Mills, 265, 289 General Motors (GM), 4, 37, 46, 74, 167, 175, 217, 219, 222, 233, 236, 238, 242, 296, 320, 324, 359 Genpact, 92 Gillette Co., 173, 192, 197 Godiva Chocolatier, Inc., 147–148 Going, Inc., 193 Goldman Sachs, 194, 200 Google, 51, 55, 217, 225, 227, 230, 240, 267, 383, 396 Gordon Brothers Brands LLC, 40 GovernanceMetrics International, 307 Goya Foods, 116 Green Truck, 118 Greif & Company, 116 Greyhound Lines, Inc., 108–109 Grow Fast Grow Right, 244 Guess, Inc., 138 International Air Transport Association (IATA), 63 International Anti-Counterfeiting Coalition, 241 International Association of Outsourcing Professionals (IAOP), 92 International Harvester, 233 International Trade Commision (ITC), 241 Interpublic Group, 158, 169 Intuit, 381 IronPort Systems Inc., 195, 317 J H H J Heinz, 41, 49, 115, 125 Hamilton Sundstrand, 197 Harley-Davidson, 55, 80 Harmony, 233 Harrah’s Entertainment, 101 Hartmarz Corp., 262 HealthSouth, 306 Health & Well-Being, 197 Hennessy Industries, 172 Hermes, 241 Hershey, 129, 147, 148, 166 Hewlett-Packard (HP), 53, 58, 92, 99, 116–117, 143, 146, 164, 176, 254, 256, 267, 270, 317, 321, 327, 329–330, 342 Hilco Consumer Capital LP, 40 Hill’s Pet Nutrition, 103 Hilton International, 267 Hitachi, 58, 267 Hiuyuan Juice Group, Ltd., 221 Hoechst, 223 Holcim, 229 Hollywood Pictures, 168 Home Depot, 59 Honda, 55, 164, 222 Honest Tea, 51 Huawei Technologies Co., Ltd., 217, 218 Hugo Boss, 81 Hutchison Whampoa Limited (HWL), 161 Hyatt, 266 Hyperion Solutions, 165 I IBIS World, 124 IBM, 24, 53, 89, 92, 130, 143, 253–254, 254–255, 267, 270, 317, 330 IKEA, 28, 118, 120, 220, 338 Illinois Tool Works (ITW), 172 ILOG, 253 imeen, Inc., 264 IMG Worldwide, 269 Infosys Technologies, 92 ING, 62 In-N-Out Burger, Intel, 55, 61, 167, 384, 396 J C Penney, 137 Jacobs Chuck Manufacturing, 172 Jacobs Vehicle Systems, 172 Jaguar, 192, 200 Japan Airlines International, 63 Japan International Tobacco, 59 Japan Tobacco International, 39, 54 Jason’s Deli, 104 JC Penney, 262 J.D Power and Associations, 206 JetBlue, 107, 130, 133 Jimmy and Doug’s Farmclub, 263 Johnson & Johnson, 167–170 Jones Apparel Group, 262 JSR, 253 K Kashi, 290 Kazoo Toys, 118–119 Keebler Co., 290 Kellogg’s, 41, 265, 289 Kia Motors, 73, 108 Kimho Asiana Group, 200 Kleenex, 115 KLM, 63 K-Mart, 332 Kodak, 255 Kohler, 42 Komatsu, Ltd., 81, 135, 233 Korea Express, 200 Kosmos Energy, 194 Kraft Foods, Inc., 105, 159 KT&G, 304 Liz Claiborne, Inc., 120, 202–203, 262 LNP, 18 Lockheed Martin, 255 L’Oréal, 241–242 Louis Vuitton, 115, 117 Lowe’s, 59 Luby Cafeterias, 74 Lufthansa, 63, 259, 265, 341 Luxottica Group, 158 LVMH, 241 M Macy’s, 262 Mail Boxes, Etc., 198, 199 Marriott International, 267 Mars, 129, 166 Mary Kay Cosmetics, 382 Matsushita, 58 Maytas Infra, 305 Maytas Properties, 305 Mazda, 190 McDonald’s Corporation, 3–4, 6, 14, 18, 24, 49, 51, 57, 243–244, 267, 342, 354 McGraw Hill Companies, 206 McKinsey & Co., 64, 81, 113 Medco, 167 Merck, 160, 175 Merrill Lynch, 291, 294, 299, 300, 306 Mervyn’s, LLC, MG Rover Group, 235 Michaels, 42 Microsoft, 9, 55, 61, 71, 81, 102– 103, 227, 320, 342, 383 Midwest Corp., 258 Mint Global, 124 Mitsubishi, 58 Mitsubishi Electric, 267 Mitusbishi UFJ Financial Group, 256 Moody’s, 200 Morgan Stanley, 200, 256 Motorola, Inc., 206, 217, 396 Mrs Fields Cookies, 268 MSNBC, Mustang Engineering, 83 MySpace, 9, 100–102, 392 MySpace Music, 264 L Lafarge, 229 LaLa Media, 264 Land Rover, 192, 200 Lehman Brothers, 174 Lenovo, 99, 143, 190, 351, 354 LexisNexis, 210 Lexus, 101, 112–113 Lindt & Sprungli, AG, 147 Linens ‘n Things, Linksys, 317 Liuzhou Wuling Motors Co., 217, 222 N Nasdaq, 227 National Australia Bank Ltd., 190, 191 National Football League (NFL), 64, 92 NBC Universal, 9, 259, 263 NCsoft, 225 NEC, 58, 267 Nestle, 129–130, 131, 147–148, 166 NetApp, 189, 200 I-17 O Oakley, 158 Occidental Petroleum, 285 Och-Ziff Capital Management, 263 Olive Garden, 135 Oneworld, 64, 259 Oracle, 53, 164–165, 171, 321, 342 Orange, UK, 372 Organization of American States (OAS), 231 Otis Elevator Co., 81, 197 Oz Minerals, 235 P Packard Bell, 99–100, 190 Patch Media Corp., 193 PayPal, 174 Peabody Energy Corp., 75–76 PeopleSoft, 165 PepsiCo, 42, 59, 81, 85, 104, 129–130, 131, 134, 221, 337, 339, 363 Perfigo Inc., 195 Petters Group, 40 Peugeot Citroen, 73, 335 Pfizer, 187, 193, 195–197, 202, 263 Philip Morris International (PMI), 35–36, 38, 40, 50, 54, 59, 233, 241 Phillips-Van Heusen, 262 1020 Placecast, 266 Polaroid Corporation, 39–40, 75 Polo Ralph Lauren Corp., 81 Porsche, 222, 369 Porsche AG, 217 Post, 265 Pratt & Whitney, 197 Prêt a Manager, Procter & Gamble (P&G), 10, 39, 41, 49, 51, 54, 81, 160, 163, 173, 191, 197, 383 ProEnergy Services, 105 Protego Networks Inc., 195 Providence Equity Partners, 259 Q Quaker Oats Company, 104, 265, 338, 363 R Raketu, Ralph Lauren, 113 Ranbaxy, 351 Redbox, 112 Renault-Nissan alliance, 263, 265, 274 Research in Motion, 266 Reuter’s Online, 209 RGD, 233 Ringer, 229 Rio Tinto Ltd., 194, 195 Riverhead Networks Inc., 195 Robert Talbot, 113–116 Rocky Mountain Chocolate Factory, 129–131 Rolex, 117 Ryanair, 63, 83–84 S Sabritas, 338 Safeway, Inc., 105 SAIC, 219, 222, 224, 233, 235 Sam’s Club, 111, 137, 325 Samsung Electronics Co., 58, 161, 217 Samuel Electric, 264 Sandoz, 263 SAP, 321, 342 Sara Lee, 177 Sargento Foods, 143 SAS, 341 SAS Institute, 105 Satyam, 304, 305, 306 SBI Holdings Inc., 257 Schering-Plough, 103 Schweppes, 209 Scientific-Atlanta, 317 Sears Holdings, 332 Shanghai Airlines, 141, 259 Shanghai Automotive Industry Corporation (SAIC), 217 Sharpe, 226 Sharper Image Corp., Sheraton, 233 Siebel Systems, 165 Siemens, 130, 226, 256 Siemens AG, 218 Sikorsky, 197 Singapore Airlines, 63 Sinopec Group, 194 Sinosteel Corp., 258 Skype, 174 Sky Team Alliance, 61, 64, 259 Sodexo, 92 Sony Corp., 81, 230, 351, 359, 383 Sony Corp.’s Music Entertainment, 217 Southcorp, 157 Southwest Airlines, 23, 63, 83, 85, 105–107, 130, 133, 141 S&P 500, 287 Sprint, 234 St James Place Capital, 181 Standard & Poor, 200 Star Alliance, 61, 64, 259, 341 Starbuck’s, 147–148, 269–270, 338 Starwood Hotels and Resorts Worldwide, 233 Steel Partners, LLC, 304 Subway, 268 Sun Microsystems, 53, 254, 342 SunTech Power Holdings, 225, 226 Swedish Match AB, 36 Symantec, 342 T Target, 39, 50, 110, 120–121, 137, 141 Tata Consulting Service, Ltd., 92, 267, 270, 317 Tata Group, 383 Tata Motors, 192, 200 Tech Mahindra, 92, 305 Telefon AB L.M Ericsson, 217 Telus Corp., 217 Temasek Holdings, 189 Tesco PLC, 262 Textron, Inc., 161, 210, 332–333 Thai, 341 Thales SA, 236 Thomas & Betts Corporation, 172 Thomas J Lipton Company, 338 Thomson Consumer Electronics, 81 TIAA-CREF, 293, 301 Time Warner, 24, 174 Time Warner Cable, 12 TNK-BP, 272–274 Toshiba Corp., 264, 267 Touchstone Pictures, 168 Towers Perrin, 197 Towers Perrin Forster & Crosby Inc., 189 Toyota, 112–113, 222, 230, 236, 242, 341, 351, 354, 383 Toys “R” Us, Inc., 190 Tropicana, 104 Twitter, 71, 118, 392 Tyco, 306 U U.S Airways, 106 U.S Steel, 258 UBS, 168, 174 Under Armour, 327 Unilever, 51, 262 United Airlines, 56–57, 63, 106, 130, 259, 265, 341 United Parcel Service (UPS), 41, 134–135, 160, 166, 198, 199, 236 United Technologies Corp (UTC), 161, 171, 197, 201 Universal Music, 264 USAA, 101 US Airways, Inc., 63, 341 V Veolia Environment, 130 VeraSun, 187 Verizon, 12, 234 Vertu, 190 VEVO, 264 Virgin Group Ltd., 164 Vivendi SA, 9, 264 Vivendi SA’s Universal Music, 217 Vodaphone Group PLC, 217 Volkswagen, 73, 217, 219, 222, 238, 264 W Walgreens, 167 Wal-Mart, 3, 6–8, 10, 13, 39, 81, 82, 108–112, 136–138, 141, 234, 262, 325, 369, 370 Walt Disney Co., 144, 167–168 Wards Company, Warner Music, 217, 264 Watson Wyatt Worldwide Inc., 189, 197 WebEx, 317 WellPoint, 167 Wendy’s International, 4, 24, 57, 394 Williams-Sonoma, Inc., 394 Wipro Technologies, 92 Witt Gas Technology, 81 Wm Wrigley Jr Company, 159, 166 Women’s National Basketball Association (WNBA), 92 WorldCom, 291, 294, 306 World Trade Organization (WTO), 218, 222, 224, 239 Worthington Foods, Inc., 290 WPP, 169 www.Hulu.com, 259, 263 Wyeth, 187, 193, 195–197 X Xerox, 81, 342, 360–361 Xstrata, 189 Y Yahoo!, 51, 227, 228, 229 Yahoo! Finance, 209 Yandex, 225, 226–227, 240 YouTube, 71, 267 YRC Worldwide, 133 Z Zara, 121 ZTE, 217, 218, 234 Company Index Netflix, 40, 102, 112, 129 NetJets, 151 New Look Laser Tattoo Removal, 118 News Corp., 257, 264 New York Stock Exchange, 124, 180, 294 NextRx, 167 Nike, 269, 327 Nintendo, 260–261, 383 Nippon Cargo Airlines, 264 Nokia, 218, 266, 383, 384, 388 Nokia Siemens Networks, 217 Nordstrom, 81, 262 Norrell Corporation, 81 North American Free Trade Agreement (NAFTA), 231–232 Northrup Grumman Corp., 255 Northwest Airlines, 63 Novartis AG, 263 NRG Energy, 190 Nucor, 258 NutraSweet, 56 I-18 Subject Index A Ability, 136 Above-average returns, definition, I/O model, 13–15 resource-based model, 15–17 Acquisitions, 234–235 bureaucratic controls, 203 cross-border, 192–193 definition, 189 effective, 203–205 horizontal, 190–191 innovation through, 393 managers overly focused on, 202–203 new product development, 193–195 pharmaceutical industry, 187–188 problems in achieving success, 198–200 debt, 192 diversification, 195 firm size, 196 focus, 202 integration, 198 synergy, 201 target evaluation, 201 reasons for barriers to entry, 192–193 capabilities, 197–198 competitive scope, 197 diversification, 196–197 increased market power, 190–191 lower risk, 196 speed to market, 193 related, 191–192 strategies, 187 Chinese firms, 194, 200 too large, 203 vertical, 191 see also Mergers Actions competitive, 130–131 drivers, 133–134 I-18 strategic, 138 tactical, 138 Activist foreign shareholders, 273, 298 Activist hedge funds, 273, 299 Activist shareholders, 273, 299 Activities primary, 85, 87, 100, 112, 117 support, 85, 87, 100, 112, 117 value-creating, 72, 80–83 Actor’s reputation, 143 Adaptability in acquisitions, 205 Advanced information technologies, 253–254 Aerospace industry, 197, 236 Affiliation dimension customer relationships, 102–103 African-American workers, 47 Age structure, 44 Agency costs, 291–292 definition, 291 Agency relationships, 288–290 definition, 288 problems in, 289–290 Aggressive pricing, 138 Air cargo industry, 229–231 Air carriers, 341 Air transportation industry, 255 Airline industry, 23 activity maps, 107 capital market stakeholders, 20 costly to imitate capabilities, 82 retaliation, 52 strategic alliances in, 255–260 Alliance network, 270–271 Alliances, 380 equity-based, 256 see also Strategic alliances American steel industry, 258 Animal health business, 103 Antitrust regulations, 173–174 Artificial boundaries, 73 Asia boundary-less retailing, building conglomerates, 206 conglomerates, 206 international expansion into, 223 internet auction markets, 229 Asian American workers, 47 Assessing business-level cooperative strategies, 260–261 corporate-level cooperative strategies, 263–264 definition, 39, 41 Assets direct investment in, 218–219 managerial decisions, 75 production, 79 specialized, 58 tangible resources as, 78 Attack, likelihood of, 139–142 first-mover incentives, 139–140 organizational size, 140–141 quality, 141 Automobile industry, 48, 57, 217–218 complementary alliances, 263 overdiversification, 201 product quality, 141–142 Autonomous strategic behavior, 386–387 Autonomy, 366 Average returns definition, Awareness, 132, 135 B Balanced scorecard, 368–369 Banking industry, 300 Bankruptcy, 200, 297 Bargaining power of buyers, 53, 111, 115 of suppliers, 53, 56, 111, 115 Barriers to entry, 53–55 overcoming, 192–193 Biotechnology firms, 196–197 Blackmail, 81 Blogging, 392 Board of directors, 293–295 classification of members, 294 definition, 294 enhancing the effectiveness, 295–297 Boundaries artificial, 73 Boundary-less retailing, 10 Brand name, 42 loyalty, 114 tarnished, 80 Brazil acquisition strategies in, 192 debt in acquisition, 230 Breakfast cereal, 289, 339 Broad target competitive scope, 107–108 Bureaucratic controls on acquisitions, 203 Business-level cooperative strategies, 260–266 assessment of, 265–266 complementary, 260–261 implementing, 341 Business-level strategies, 97–128, 158 customer needs, 104 customer relationships, 101–105 determining core competencies, 104–105 functional structure and, 324–327 international, 223 purpose, 105–107 target customers, 103–104 types, 107–123 Buyers particular group, 116 power of, 39 in cost leadership strategy, 108 in differentiation strategy, 112 I-19 California’s Silicon Valley, 270 Canada age structure, 47 boundary-less retailing, 10 contingency workers, 47 Capabilities, 80 costly-to-imitate, 83 definition, 15 examples, 81 learning and developing, 197–198 nonsubstitutable, 83 rare, 83 valuable, 82 Capital, 168 financial, 362 intellectual, 353 requirements, 54 Capital market external, 168 internal, 168 stakeholders, 21–22 Capital structure change, 301 Cash flows uncertain future, 181 Casually ambiguous, 83 Cell chips, 386 Cell phones, 384 Celler-Kefauver Antimerger Act (1950), 173 Centralization, 324 Chief executive officer (CEO), 18, 23 compensation, 285–286 duality, 357 role of, 284–285 selection of, 351 succession, 295 top management team and, 354–355, 357–358 China acquisition strategies, 192–193 air cargo market, 236 auto manufacturing industry, 217–220 collectivism and social relations, 47 competitor analyses, 48 debt in acquisition, 230 environment pressures on Wal-Mart, 39 global economy and, guanxi (personal relationships or good connections), 47 inhwa (harmony), 49 population size in demographic segment, 43–44 Client-specific capabilities, 80 Coal industry, 76 Collaborative advantage, 255 Collaborative relationship, 270 Collusive strategy, 255 Combination structure transnational strategy, 337–338 Combined Code on Corporate Governance of the United Kingdom, 306 Common buying factor segments, 103 Communitarianism, 49 Competence misrepresentation, 272 Competencies, 72–73 in internal analysis, 90 network structure and, 340 Competition multipoint, 166 Competition response strategy, 263–264 Competition-reducing strategy, 264–265 Competitive action definition, 138 drivers of, 135–136 types, 142 Competitive advantage, 107 defined, internal analysis leading to, 74 sustainable, 82–85 sustained, gradual erosion, 145 Competitive aggressiveness, 366 Competitive agility, 363 Competitive behavior, 130 Competitive dynamics, 144–148 from competitors to, 130–131 definition, 131 Competitive Equality Banking Act of 1986 (CEBA), 174 Competitive form, 332–333 Competitive landscape, 8–15 Competitive response definition, 138 likelihood of, 142–143 Competitive risks in cost-leadership strategy, 112 in differentiation strategy, 115–116 of focus strategies, 120 integrated cost leadership/ differentiation strategy, 122 Competitive rivalry, 138–139 definition, 130 model, 132 Competitive scope, 107, 197 Competitive speed, 363 Competitiveness innovation and, 385 strategic, Competitor analysis, 38–39, 59–61, 133–135 framework, 135 market commonality, 132 resource similarity, 133 Competitor intelligence, 60 Competitors to competitive dynamics, 130–131 definition, 130 numerous or equally balanced, 57 rivalry among, 57–60 Complementary business-level cooperative strategies, 260–261 Complementary strategic alliances see Strategic alliances Complementors, 61 Complexity in internal organization, 75 Conglomerates, 161, 170–171, 173, 201 discount, 168 Consumer electronic retailer, 317 Consumer foods producer, 134 Consumer markets, 103 Consumption patterns, 103 Cooperative form multidivisional structure, 327–328 Cooperative strategies, 252–281 competitive risks, 271–272 innovation through, 390–391 managing, 272 matches with Network structures, 338 strategic alliances, 255–260 Core competencies, 80–81, 362–363 building of, 82–84 definition, 16 determination of, 104–105 Corporate charter amendment, 301 Corporate entrepreneurship, 380 Corporate governance China, 303–304 definition, 286 effective, 309–310 failure, 305 Germany, 302 global, 304 international, 302–306 international codes, 308 Japan, 302 Corporate relatedness, 164–166 simultaneous operational relatedness, 167–168 Corporate-level cooperative strategy, 266–268 assessment, 268 diversifying, 266 franchising, 267–268 implementing, 342 synergistic, 267 Corporate-level core competencies, 164 Corporate-level strategy, 25 definition, 158 match with multidivisional structure, 327–334 Cost disadvantages independent of scale, 54–55 Cost-leadership strategy, 108–112 using functional structure to implement, 324–325 value-creating activities associated with, 110 Costly-to-imitate capabilities, 83 Counterfeit products, 241 Cross-border acquisitions, 192–193 Cross-border strategic alliance, 268 Cross-functional product development teams, 388–389 Customer perspective in balanced scorecard, 368 Customer segmentation, 103 Customers bargaining power of, 111 determining core competencies, 112 determining which needs to satisfy, 112 determining who to serve, 111–112 managing relationships with, 101 size segments, 103 Customization, 53 D Database software management, 166 Debt acquisition problem of, 200 Decentralized approach, 227 Decision-making, 75 Demand conditions, Porter’s model, 223 Demographic factors, 103 Demographic segment, 38, 43–44 definition, 43 Deregulation, 303 Derek Higgs report, 306 Diamond model, 225 Differentiation lack of, 57–58 Differentiation strategies, 112–116 definition, 112 functional structure and, 326 value-creating activities associated with, 114 Diffuse ownership, 292–293 Direct costs, 201 Direct investment in assets, 219 foreign, 193 Subject Index C Subject Index I-20 Directors (Board members), 294 Distributed strategic networks, 338, 342–343 Distribution, 80 channels, access to, 54 Diverse labor force, 47 Diversification, 195 incentives, 173–176 levels of, 159–161 low levels, 160–161 moderate and high levels, 160–161 product, 159 reasons for, 161–163 resources and, 176–177 strategies for, 158 too much, 201 unrelated, 168–173 value-creating, 163–168 value-neutral, 173–177 value-reducing, 161, 177–179 Diversifying strategic alliance, 266 Divestiture, 206 Domestic market, 188, 383–384 Domestic strategic alliances, 256 Domestic-only firms, 289 Dominant-business diversification strategy, 159–160 Downscoping, 206 Downsizing, 205–206 Drivers of competitive actions and responses, 135–136 Due diligence, 200, 205 Dynamic alliance network, 271 Dynamics of mode of entry, 236 E Eavesdropping, 61 E-commerce, 167 Economic environment, 38 Economic risks, 240 Economic segment, 38 definition, 45 Economics of scope, 163 Economies of learning, 222 Economies of scale, 9, 53, 222 Educational institutions cooperative strategies, 257 Elements of general environment, 37 Emerging economies, 192–193 Emerging markets, 220 Emotional barriers, 58 Employee buyouts (EBO), 207 Employees as organizational stakeholders, 22 End-use segments, 103 Entrepreneurial mind-set, 365, 382 Entrepreneurial opportunities definition, 381 Entrepreneurs, 382–383 Entrepreneurship corporate, 380 definition, 381 international, 383–384 strategic, 380 Environment competitor, 37–39 general, 36–38 industry, 37–39 Environmental trends, 230–231 Envisioned future, 361 Equity strategic alliance, 256 Ethical behavior governance mechanisms and, 306–307 Ethical considerations, 61–62 Ethical practices, 366–367 Ethnic mix, 44–45 Europe acquisition strategies, 186 age structure in demographic segment, 44 building conglomerates, 206 contingency workers, 47 global economy and, European Union (EU), 46, 229 Evolutionary patterns of organizational structure, 322–328 Evolutionary patterns of strategy, 322–328 Executive compensation, 297–298 definition, 297 effectiveness of, 298 Exit barriers, 58 Explicit collusion, 264 Exporting, 232 External environment, 5, 35–36 analysis, 39–40 effect on strategic actions, 36 External managerial labor market, 358 F Face-to-face meetings, 356 Fast-cycle markets, 257, 259 definition, 145 Federal Communications Commission (FCC), 174 Financial Accounting Standards Board, 174 Financial controls, 320–321 Financial economies, 168 Financial perspective in balanced scorecard, 368 Financial resources, 78 Firm infrastructure in support activities, 87 First mover definition, 139 Five forces model of competition, 14, 50, 52 Fixed costs, 57 of exit, 58 Flash memory business, 267 Flexibility in acquisitions, 205 Flexible manufacturing systems (FMS), 121 Focus strategy competitive risks, 120 definition, 116–120 Focused cost leadership strategy, 118 Focused differentiation strategy, 118–120 Food industry, 399 Forecasting definition, 39, 41 Foreign direct investment, 193 Foreign institutional investors, 303 Foreignness liability of, 230 Formality, value of, 49 Formulation, 25 For-profit organization, 89 Framework of competitor analysis, 135 Franchising, 267–268 Fraudulent behavior, 291 Free cash flow, 170, 290 Friendly acquisitions, 205 Functional structure, 323 business-level strategies and, 324–327 use to implement cost leadership strategy, 324–325 use to implement differentiation strategy, 326 use to implement integrated cost leadership/ differentiation strategy, 327 G Garns-St Germain Deposit Institutions Act of 1982 (GDIA), 174 General environment, 37–39 definition, 37 segments, 43–49 Generic strategies definition, 101 Geographic distribution, 44 Geographic factors, 103 Geographic segments, 103 Germany corporate governance in, 302–303 structures used to govern global companies, 287–288 Global economy, 9–10 definition, Global markets choice of entry, 232 foreign firms, 217–218 Global matrix structure, 338 Global mind-set, 73 Global segment, 38, 48–49 definition, 48 Global strategy, 228–229 worldwide product divisional structure for, 336–338 Globalfocusing, 49 Globalization definition, 10 Golden parachute, 301 Governance mechanisms competition, 308 ethical behavior and, 306–307 Government and social restrictions, 58 Government antitrust policies, 173 Government policy, 55 Green initiatives, 50 Greenfield venture, 235–236 Greenmail, 301 Guanxi (personal relationships or good connections), 47 H Health care costs, 47 Health care products, 167 Hedge funds, activist, 273, 299 Hierarchical order, value of, 49 Historical conditions unique, 83 Horizontal acquisitions, 190–191 Horizontal complementary strategic alliance, 263 Hostile takeover defense strategy, 301 Human capital, 363 Human resources, 79–80 in support activities, 87 Hypercompetition, I Imitation definition, 382 Inbound logistics primary activities, 87 Income distribution, 45 Incremental innovation, 384 India acquisitions strategies, 194 debt in acquisition, 230 debt in acquisitions, 192 emerging economies, 192 environmental pressures on Wal-Mart, 33 growing high-tech sector, 48 population size, 49 Indirect costs, 201 Induced strategic behavior, 387–388 I-21 International cooperative strategies implementing, 342–343 International cooperative strategy, 268–270 International corporate-level strategy, 225–227 International diversification innovation, 237–238 returns, 237 International entrepreneurship definition, 383 International entry mode, 231–236 International environment risks, 238–239 International expansion limits to, 240–242 International strategies, 219–225 matches with worldwide structure, 334–338 opportunities and outcomes, 219 types, 223–230 Internet, 12 Internet service providers (ISPs), 12 Intraorganizational conflict, 76 Invention definition, 382 J Japan contingency workers, 47 corporate governance in, 302–303 structures used to govern global companies, 287–288 Joint venture, 256 Junk bonds, 200 K Knowledge increasing intensity of, 13–14 L Laptop computers, 257 Large-block shareholders, 292 Late mover definition, 140 Latin America conglomerates, 206 contingency workers, 47 Learning and growth in balanced scorecard, 368 Leverage, 74 Leveraged buyouts (LBO), 207 Leveraging a firm’s knowledge, 384 Liability of foreignness, 11 Licensing, 232–233 Litigation, 301 Location advantages international, 222–223 Low levels of diversification, 160–161 Low performance incentive to diversify, 174–175 Loyalty to a brand name, 114 M Management buyouts (MBO), 207 Management information systems, 80 Managerial control ownership separation, 287–292 Managerial decisions, 76 Managerial defense tactics, 300–302 Managerial discretion, 354 Managerial motives for diversification, 177–179 Managerial opportunism, 288 Managerial succession, 358–359 Manufacturing, 80 Market commonality, 133–134 Market dependence definition, 143 Market for corporate control, 299–302 definition, 299 Market power, 166–167 increased, 190 Market segmentation definition, 103 Market size international, 221 Marketing, 80 Marketing and sales primary activities, 87 Markets international, 221 no-growth, 57 regional focus, 290 segmentation, 103 slow-growth, 57 Matrix organization, 330 Mergers, 187–188 definition, 189 popularity of strategies, 188 reasons for, 190 takeovers and, 189 see also Acquisitions Mexico boundary-less retailing, foreign market production, 10 international expansion, 233, 242 Mission, 16–18 definition, 16–18 Mode of entry Dynamics of, 236 Model of competitive rivalry, 132 Mom and pop culture, 83 Monitoring definition, 39–41 Motivation, 135 Multidivisional (M-form) structure, 323–324 competitive form of, 332–333 cooperative form of, 327–328 match with corporate-level strategies, 327–334 strategic business unit form, 331–332 Multidomestic strategy, 227–226 fit between geographic area structure and, 338 using worldwide geographic area structure for, 334–335 Multimarket competition, 130 Multinational firms complexity of management, 238–239 entering emerging economies, 192 securing needed resources, 220 Multipoint competition, 166 Mutual forbearance, 265 N Narrow target competitive scope, 107–108 National advantage, determinants of, 222 Network cooperative strategy, 270–271 alliance network types, 270 defined, 270 Network structures cooperative strategies and, 338 New wholly owned subsidiary, 235–236 No-growth markets, 57 Noncyclical business, 197 Nonequity strategic alliance, 256–257 Nonsubstitutable capabilities, 83 Nonsubstitutable resources, 16 North American Free Trade Agreement (NAFTA), 231–232 Not-for-profit organization, 89 O Offshore outsourcing, 237 Oil and gas, Russia, 273 Oil tycoons, Russia, 273 Online advertising, 193 Operational relatedness, 163–164 simultaneous corporate relatedness, 167–168 Operations primary activities, 87 Opportunity, 48 definition, 39 Subject Index Industrial markets, 103 Industrial organization (I/O) above-average returns, 13–15 model, Industry definition, 50 Industry analysis interpreting, 58–59 Industry environment, 38–39 analysis, 38, 50–58 definition, 38 Industry growth slow, 57 Information age, 11, 12 Information networks, 121–122 Information-rich relationships, 11 Inhwa (harmony), 49 Innovation in acquisitions, 205 definition, 381–382 facilitating, 389–390 incremental and radical, 384 internal, 384, 387–390 international diversification and, 237–238 organizational culture, 380 resources, 79 through acquisitions, 393 through cooperative strategies, 390–391 Innovativeness, 366 Insiders, 294 Institutional owners, 292–293 definition, 293 Intangible resources, 78, 79 Integrated cost leadership/ differentiation strategy, 120–123 competitive risks, 122 definition, 120 functional structure and, 326 Integration difficulties, 198 facilitating, 389–390 vertical, 166 Internal analysis context, 73–74 Internal business process in balanced scorecard, 368 Internal capital market allocation, 168–171 Internal corporate venturing definition, 386–387 Internal innovation, 384 creating value from, 390 implementing, 387–390 Internal managerial labor market, 358 Internal organization analyzing, 73–76 creating value, 74–75 International business-level strategy, 223–225 Subject Index I-22 maximization management approach, 274 Organizational controls, 320– 321, 367–368 Organizational culture, 83, 380 changing and restructuring, 366 definition, 23 sustaining, 365–366 Organizational resources, 78 Organizational size, 140–141 Organizational stakeholders, 21–23 Organizational structure, 319–320 accountability and, 345 business-level strategy and, 344 evolutionary patterns, 322–328 Outbound logistics primary activities, 87 Outcomes sustainable competitive advantage, 82–85 Outsiders, 294 Outsourcing, 256 definition, 89 offshore, 237 Overdiversification, 201 Ownership concentration, 292–293 percentages, 292–293 separation of managerial control, 287–292 P Partnering for success, 257 Patent laws, 144 Patents, 382, 385 PE ratio, 171 Perceptual factors, 103 Perpetual innovation definition, 11 Pharmaceutical companies, 169–170 acquisition activities, 173–176 Pharmacy-benefits manager, 167–168 Physical environment segment, 38, 49–50 definition, 49 Physical resources, 78 Poison pill, 301 Political/legal segment, 38 definition, 46 Political risks, 238–239 Population size, 43–44 POS (Positively Outrageous Service), 23 Potential entrants in cost-leadership strategy, 111 in differentiation strategy, 115 Primary activities definition, 85 Private equity firms, 207, 259, 299 Private equity investors, 205 Private synergy, 201 Privatization of industries and economies, 258 Proactiveness, 366 Procurement support activities, 87 Product champion definition, 386 Product development cross-functional teams, 388–389 lower risk, 195 new, 193–195 Product differentiation, 53–54 Product diversification example of an agency problem, 289–290 Product lines, different segment of, 116 Product market stakeholders, 21–22 Product quality dimensions, 142 Product segments, 103 Product substitutes in cost-leadership strategy, 111–112 in differentiation strategy, 115 Production assets, 79 Profit pools definition, 24 Psychological factors, 103 Pure strategies, 123 Q Quality definition, 141 dimensions of goods and services, 142 R Race to learn, 340 Radical innovation, 384, 386 Rare capabilities, 83 Rare resources, 16 Rate of technology, 145 Reach dimension customer relationships, 102 Reach dimension of relationships, 102 Reciprocal relationship, 13 Regional focus on markets, 290 Regionalization, 230–231 Regulatory requirements, 144 Related acquisition, 191–192 Related constrained diversification strategy, 160 Related linked diversification strategy, 160 Related linked strategy strategic business unit form for, 331–332 Related outsiders, 294 Relational advantage, 255 Reputation definition, 143 Reputational resources, 79 Research & development, 80 Residual returns, 287 Resource portfolio, 362–365 Resource-based model, above-average returns, 15–17 Resources, 78–80 costly to imitate, 16 definition, 15 dissimilarity, 136 diversification and, 176–177 financial, 78 human, 79 innovation, 79 intangible, 78, 79 nonsubstitutable, 16 organizational, 78 physical, 78 reputational, 79 similarity, 134–135 tangible, 78, 79 technological, 78 valuable, 16 Restructuring, 205–209 of assets, 171–173 downscoping, 206 downsizing, 205 leveraged buyouts, 205 outcomes, 207 Retailing, boundary-less, 10 Retaliation expected, 55–56 Retirement planning, 44 Return on assets, 320 Return on investment (ROI), 202, 320 international, 221–222 Revenue-based synergy, 176 Reverse engineering, 145 Richness dimension customer relationships, 102 Risk reduction as incentive to diversify, 161 Risk taking, 365–366 Risks acquisitions lower, 196 defined, in an international environment, 238–239 new wholly owned subsidiary, 232 Rivalry among competing firms, 53, 57 among competitors, 57–60, 107 competitive, 128–154, 138–139 with existing competitors, 109–111, 114–5 Russia debt in acquisition, 230 oil and gas, 273 political risks, 238–239 S Sarbanes-Oxley (SOX) Act, 46, 291–293 Scale economies, 220–221, 261 Scanning definition, 39–40 Scope, economies of, 163 Second mover definition, 140 Securities and Exchange Commission (SEC), 293, 321 Segments of general environment, 37 Self-control, 49 Service primary activities, 87 Service quality dimensions, 142 Shareholders, 20 large-block, 292 Simple structure, 323 Single-business diversification strategy, 159 Slack, 139 Slow-cycle markets, 257–259 definition, 144 Slow-growth markets, 57 Social capital, 364–365 Sociocultural segment, 38, 46–47 definition, 46 Socioeconomic factors, 103 Specialization, 324 Specialized assets, 58 Stable alliance network, 271 Stakeholders, 20–23 capital market, 20–21 classification, 20–21 definition, 20 organizational, 20–21 product market, 20–21 Standard-cycle markets, 258–260 definition, 148 Standstill agreement, 301 Stealing, 61 Storage costs, 57 Strategic actions, 20 definition, 138 external environment effects, 36 Strategic alliances, 233–234, 255–260 reasons for development, 257–260 types, 256–257 Strategic behavior autonomous, 386–387 induced, 387–388 Strategic business unit (SBU) form I-23 relationship with structure, 321–322 Strengths in internal analysis, 90 Structural flexibility, 319 Structural stability, 319, 320 Structure relationship with strategy, 321–322 Suppliers bargaining power of, 111 Support activities definition, 85 Sustainable competitive advantage, 83–85 Switching costs, 54, 57–58 Synergistic strategic alliance, 267 Synergy definition, 175 firm risk reduction and, 175–176 inability to achieve, 201 revenue-based, 176 T Tacit collusion, 264 Tactical action definition, 138 Tactical response definition, 138 Takeover definition, 189 Tangible resources, 78, 79 Tax laws, 173–174 Technological development support activities, 87 Technological resources, 78 Technological segment, 38, 47–48 definition, 47 Technology diffusion, 11–12 disruptive, 11–12 network structure and, 340 and technological changes, 11–14 Threat, 48 definition, 39 of new entrants, 52–53 of substitute products, 53, 56 Top management teams, 354–358 definition, 355 heterogeneous, 356 Top-level managers, 354–358 Total quality management (TQM), 122 Transformational leadership, 354 Transnational strategy, 229 using combination structure to implement, 337–338 Trespassing, 61 U Uncertain future cash flow incentive to diversify, 174–175 Uncertainty in internal organization, 75 Uncertainty-reducing strategy, 264 Unique historical conditions, 83 United Kingdom Combined Code on Corporate Governance, 306 debt in acquisition, 230 environment pressures on Wal-Mart, 39 United States age structure, 47 contingency workers, 47 foreign market production, 10 structures used to govern global companies, 287–288 Unrelated diversification strategy, 161, 168–173 using competitive form of multidivisional structure, 332–333 V Valuable capabilities, 82 Value, 74–75 definition, 73 Value chain analysis, 85–89 internet applications, 88 Value-creating activities cost leadership strategy, 110 differentiation strategy, 114 Value-creating diversification, 161, 162 related constrained and linked, 163–168 Value-neutral diversification, 161, 173–177 Value-reducing diversification, 161, 177–179 Vertical acquisitions, 191 Vertical complementary strategic alliance, 260–261 Vertical integration, 166 Video on demand (VOD), Vision, 16–18 definition, 17 Voice over internet protocol (VoIP), W Wa (group harmony and social cohesion), 49 Weaknesses in internal analysis, 90 Web technology, 103 Western Europe contingency workers, 47 Worldwide geographic area structure, 334–335, 338 Worldwide product divisional structure to implement global strategy, 336–338 Worldwide structure implementing multidomestic strategy, 334–335 matches with international strategies, 334–338 Worldwide structure and international strategies, 319, 334–338 Subject Index to implement related linked strategy, 331–332 Strategic center form, 340 Strategic change, 355–356 Strategic competitive outcomes, 237–239 Strategic competitiveness above-average returns, definition, internal analysis leading to, 74 Strategic controls, 319 Strategic decisions in internal analysis, 90 predicting outcomes, 24–25 Strategic direction, 361–362 determinants of, 357 Strategic entrepreneurship creating value through, 393–395 definition, 380 Strategic flexibility definition, 13 Strategic groups definition, 59 Strategic inputs, 5, 20 Strategic interrelationships, 58 Strategic leaders definition, 23 work of effective, 23–24 Strategic leadership, 352–354 actions, 361–362 Strategic management process, 25–26 definition, 4–6 Strategic network, 338–340 Strategic outsourcing, 340 Strategic response definition, 138 Strategic stakes, 58 Strategy business-level, 97–128 definition, 3, evolutionary patterns, 322–328 formulation, implementation, ineffective, 7–8 ... SK LA Concepts Strategic Management Competitiveness & Globalization 9th Edition Michael A Hitt Texas A&M University R Duane Ireland Texas A&M University Robert E Hoskisson Rice University Strategic. .. the Academy of Management and currently is on the Board of Directors of the Strategic Management Society PA RT Strategic Management Inputs Strategic Management and Strategic Competitiveness, ... CHA P TE R Strategic Management and Strategic Competitiveness Studying ing this chapter should provide you with the strategic management gement knowledge needed to: Defi fine strategic competitiveness,