Strategic management concept and case 15e global edition fed david

GlobAl edITIon Strategic Management Concepts and Cases FIFTeenTh edITIon Fred R David • Forest R David David • David Whatever your course goals, we’ve got you covered! Use MyManagementlab® to improve student results! • • • • • Study Plan – help students build a basic understanding of key concepts Students start by taking a pretest to gauge initial understanding of key concepts Upon completion, they receive a personalized path of study based on the areas where they would benefit from additional study and practice Business Today – bring current events alive in your classroom with videos, discussion questions, and author blogs be sure to check back often; this section changes daily Decision-making Simulations – Place your students in the role of a key decision-maker, where they are asked to make a series of decisions The simulation will change and branch based on the decisions students make, providing a variation of scenario paths Upon completion of each simulation, students receive a grade, as well as a detailed report of the choices they made during the simulation and the associated consequences of those decisions Dynamic Study Modules – Through adaptive learning, students get personalized guidance where and when they need it most, creating greater engagement, improving knowledge retention, and supporting subject-matter mastery Ultimately, students’ self-confidence increases and their results improve Also available on mobile devices Writing Space – better writers make great learners—who perform better in their courses Providing a single location to develop and assess concept mastery and critical thinking, the Writing Space offers assisted graded and create-your-own writing assignments, enabling you to exchange personalized feedback with students, quickly and easily Writing Space can also check students’ work for improper citation or plagiarism by comparing it against the world’s most accurate text comparison database, available from Turnitin http://www.pearsonmylabandmastering.com Comprehensive Model of the Chapter 2: The Internal Audit Chapter Vision and Mission Analysis Chapter Types of Strategies Chapter Strategy Generation and Selection Chapter The External Audit Chapter Chapter 3: Strategy Formulation USED WIDELY AMONG BUSINESSES AND ACADEMIA WORLDWIDE Strategic-Management Process Outside-USA Strategic Planning SIMPLE AND STRAIGHTFORWARD APPROACH TO STRATEGIC PLANNING Strategy Implementation Chapter Strategy Execution Chapter 10 Strategy Monitoring Chapter 11 Ethics/Social Responsibility/Sustainability Strategy Implementation Strategy Evaluation USED TO INTEGRATE AND ORGANIZE ALL CHAPTERS IN THIS TEXT Strategic ManageMent concepts and cases A COMPETITIVE ADVANTAGE APPROACH Editor in Chief: Stephanie Wall Program Management Lead: ashely Santora Program Manager: Sarah Holle Editorial Assistant: Bernard Ollila Head of Learning Asset Acquisition, Global Editions: Laura Dent Senior Acquisitions Editor, Global Editions: Steven Jackson Project Editor, Global Editions: Laura thompson Assistant Project Editor, Global Editions: Paromita Banerjee Marketing Director: Maggie Moylan Senior Marketing Manager: erin 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shots and icons reprinted with permission from the Microsoft corporation this book is not sponsored or endorsed by or affiliated with the Microsoft corporation Pearson Education Limited edinburgh gate Harlow essex cM20 2Je england and associated companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson education Limited 2015 the rights of Fred r David and Forest r David to be identified as 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: A Competitive Advantage Approach, Concepts & Cases, 15th Edition, ISBN 978-0-13-344479-7 by Fred r David and Forest r David, published by Pearson Education © 2015 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 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 iSBn 10: 1-292-01689-2 iSBn 13: 978-1-292-01689-4 British Library Cataloguing-in-Publication Data a catalogue record for this book is available from the British Library 10 typeset in 10/12 times Lt Std by integra Printed and bound by courier Kendallville in the United States of america Strategic ManageMent FIFTEENTH EDITION concepts and cases A COMPETITIVE ADVANTAGE APPROACH GLOBAL EDITION Fred r David Francis Marion University Florence, South Carolina Forest r David Strategic Planning Consultant Boston Columbus Amsterdam Delhi Indianapolis Cape Town Mexico City Dubai São Paulo New York London Sydney San Francisco Madrid Milan Hong Kong Upper Saddle River Munich Seoul Paris Singapore Montréal Taipei Toronto Tokyo Brief Contents Preface 15 Acknowledgments 25 About the Authors 27 Chapter Strategic Management Essentials 37 THE COHESION CASE: ADIDAS GROUP – 2013 58 Chapter Outside-USA Strategic Planning 75 Chapter Ethics/Social Responsibility/Sustainability 109 Chapter Types of Strategies Chapter Vision and Mission Analysis 169 Chapter The Internal Audit 187 Chapter The External Audit 225 Chapter Strategy Generation and Selection 255 Chapter Strategy Implementation 295 131 Chapter 10 Strategy Execution 331 Chapter 11 Strategy Monitoring Appendix Glossary 371 Guidelines for Case Analysis 393 662 Name Index Subject Index 673 677 668 GLOSSARy Market capitalization number of shares outstanding times stock price Market commonality the number and significance of markets that a firm competes in with rivals Market development introducing present products or services into new geographic areas Market penetration increasing market share for present products or services in present markets through greater marketing efforts Market segment areas in a perceptual map where there is a cluster of ideal points indicating an attractive group of potential customers to target Market segmentation the marketing technique of subdividing consumers into distinct subsets according to needs and buying habits in order to more effectively and economically direct marketing efforts Market value number of shares outstanding times stock price Marketing research the systematic gathering, recording, and analyzing of data about problems/practices/issues related to the marketing of goods and services Markets a component of the mission statement; geographic locations where a firm competes Marking mix variables Product, place, promotion, and price Matching stage Stage of the strategy-formulation framework that focuses upon generating feasible alternative strategies by aligning internal with external factors by utilizing five matrices: Bcg, ie, SWOt, granD, SPace Matching When an organization matches its internal strengths and weaknesses with its external opportunities and threats using, for example, the SWOt, SPace, Bcg, ie, or granD Matrices Matrix structure this type of organizational design places functional activities along the top row and divisional projects/ units along the left side to create a rubric where managers have two bosses – both a functional boss and a project boss, thus creating the need for extensive vertical and horizontal flows of authority and communication Measuring organizational performance activity # in the strategy evaluation process; includes comparing expected results to actual results, investigating deviations from plans, evaluating individual performance, and examining progress being made toward meeting stated objectives Merger When two organizations of about equal size unite to form one enterprise; an acquisition Mission statement components 1) customers, 2) products and services, 3) markets, 4) technology, 5) concern for survival, growth, and profitability, 6) philosophy, 7) self-concept, 8) concern for public image, 9) concern for employees Mission statement a declaration of an organization’s “reason for being.” it answers the pivotal question, “What is our business?” is essential for effectively establishing objectives and formulating strategies; consists of nine components Mission statement an enduring statement of purpose that distinguish one business from other similar firms; several sentence statement that identifies the scope of a firm’s operations in product and market terms and addresses the question “What is our business?” Motivating a basic function of management; the process of influencing and leading people to accomplish specific objectives Multidimensional scaling the same as product positioning (perceptual mapping), except encompasses three or more evaluative criteria simultaneously Multinational corporations outside their own country Firms that conduct business Nemaswashio U.S managers in Japan have to be careful about this phenomenon, whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting Organizational culture a pattern of behavior developed by an organization over time as it learns to cope with its problem of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel in the firm Organizing a basic function of management; the process of arranging duties and responsibilities in a coherent manner in order to determine who does what and who reports to whom Outstanding shares method a method for determining the cash worth of a firm by multiplying the number of shares outstanding by the market price per share; also called book value, market value, or market capitalization Perceptual map also called product-positioning map; a twodimensional, four quadrant marketing tool designed to position a firm vs its rival firms in a schematic diagram in order to better determine effective marketing strategies Personnel management also called human resource management; a basic function of management; includes activities such as recruiting, interviewing, testing, selecting, orienting, training, developing, caring for, evaluating, rewarding, disciplining, promoting, transferring, demoting, and dismissing employees, as well as managing union relations Philosophy a component of the mission statement; the basic beliefs, values, aspirations, and ethical priorities of the firm Planning a basic function of management; the process of deciding ahead of time strategies to be pursued and actions to be taken in the future GLOSSARy Policies the means by which annual objectives will be achieved Policies include guidelines, rules, and procedures established to support efforts to achieve stated objectives Policies are guides to decision making and address repetitive or recurring situations Policy Specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals Porter’s Five-Forces Model a theoretical model devised by Michael Porter, who suggests that the nature of competitiveness in a given industry can be viewed as a composite of five forces: 1) rivalry among competing firms, 2) Potential entry of new competitors, 3) Potential development of substitute products, 4) Bargaining power of suppliers, and 5) Bargaining power of consumers Premium if an acquiring firm pays more for another firm than that firm’s stock price times its # of shares of stock outstanding (book value or market value), then the overage is called a premium Price-earnings ratio method this method involves dividing the market price of the firm’s common stock by the annual earnings per share and multiplying this number by the firm’s average net income for the past five years Pricing a basic function of marketing; determining the appropriate value for products and services to be charged to customers, given associated costs and competitor’s prices Product and service planning a basic function of marketing; includes activities such as test marketing; product and brand positioning; devising warranties; packaging; determining product options, features, style, and quality; deleting old products; and providing for customer service 669 results of various strategies and approaches; involves developing income statements and balance sheets for future periods of time Protectionism When countries impose tariffs, taxes, and regulations on firms outside the country to favor their own companies and people Quantitative Strategic Planning Matrix (QSPM) an analytical technique designed to determine the relative attractiveness of feasible alternative actions this technique comprises Stage of the strategy-formulation analytical framework; it objectively indicates which alternative strategies are best Question marks a quadrant in the Bcg Matrix for divisions that have a low relative market share position but compete in a high-growth industry; this is the upper right quadrant; firm’s generally must decide whether to strengthen such divisions or sell them (hence a question is at hand) Rational change strategy a management technique to facilitate a firm adapting to new strategies/policies/situations, whereby employees/managers are given incentives to be supportive while at the same time are educated as to the need to change Reconciliatory in regard to mission statements, the need for the statement to be sufficiently broad to “reconcile” differences effectively among diverse stakeholders, ie appeal to a firm’s customers, employees, shareholders, creditors – rather than alienate any group Reengineering reconfiguring or redesigning work, jobs, and processes in a firm, for the purpose of improving cost, quality, service, and speed Product development increased sales by improving or modifying present products or services Related diversification When a firm acquires a new business whose value chain possesses competitively valuable crossbusiness strategic fits Product positioning also called perceptual mapping; a twodimensional, four quadrant marketing tool designed to position a firm vs its rival firms in a schematic diagram in order to better determine effective marketing strategies Relative market share position it is the horizontal axis in a Bcg Matrix, which is the firm’s particular segment’s market share (or revenues or #stores) divided by the industry leader’s analogous number Production/operations function consists of all those activities that transform inputs into goods and services; including issues such as inventory control and capacity utilization Research and Development (R&D) Spending money to develop new and improved products and services Products or services a component of the mission statement; commodities or benefits provided by a firm Profit sharing a form of incentive compensation whereby some of a firm’s earnings are distributed to employees/ managers based on some pre-determined formula; used to motivate individuals to support strategy-implementation efforts Profitability ratios the profit margin ratio and return on investment ratio measure the profitability of a firm’s operations Projected financial statement analysis a financial technique that enables a firm to forecast the expected financial Research and development Monies spent by firms to enhance existing products/services and/or create new and improved ones Reshoring refers to american companies planning to move some of their manufacturing back to the USa Resistance to change a natural human tendency to be wary of new policies/strategies due to potential negative consequences; if not managed then this could result in sabotaging production machines, absenteeism, filing unfounded grievances, and an unwillingness to cooperate Resource allocation a central strategy implementation activity that entails distributing financial, physical, human, and technological assets to allow for strategy execution 670 GLOSSARy Resource similarity the extent to which the type and amount of a firm’s internal resources are comparable to a rival Resource-Based View (RBV) an approach that suggests internal resources to be more important for a firm than external factors in achieving and sustaining competitive advantage Restructuring Modifying the firm’s chain of command and reporting channels to improve efficiency and effectiveness Retreats Formal meetings commonly held off-premises to discuss and update a firm’s strategic plan; done away from the work site to encourage more creativity and candor from participants Retrenchment When an organization regroups through cost and asset reduction to reverse declining sales and profits Reviewing the underlying bases of an organization’s strategy activity #1 in the strategy evaluation process; entails a firm developing a revised eFe Matrix and iFe Matrix to determine if corrective actions are needed Revised EFE Matrix Part of activity #1 in the strategy evaluation process whereby a firm reassesses its previously determined external opportunities and threats Revised IFE Matrix Part of activity #1 in the strategy evaluation process whereby a firm reassesses its previously determined internal strengths and weaknesses Rightsizing reducing the number of employees, number of divisions or units, and/or number of hierarchical levels in the firm’s organizational structure; also called downsizing Secondary buyouts When private-equity firms buying companies from other private-equity firms Self-concept a component of the mission statement; the firm’s distinctive competence or major competitive advantage Self-interest change strategy a management technique to facilitate a firm adapting to new strategies/policies/situations by attempts to convince individuals that the change is to their personal advantage When this appeal is successful, strategy implementation can be relatively easy However, implementation changes are seldom to everyone’s advantage Selling a basic function of marketing; includes activities such as advertising, sales promotion, publicity, personal selling, sales force management, customer relations, and dealer relations Sexual harassment (and discrimination) Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature; this activity is illegal, unethical, and detrimental to any organization, and can result in expensive lawsuits, lower morale, and reduced productivity Six Sigma a quality-boosting process improvement technique that entails training several key persons in techniques to monitor, measure, and improve processes and eliminate defects in a firm; trained persons can earn black belts SO strategies Strategies that result from matching a firm’s internal strengths with its external opportunities Social policy guidelines and practices a firm may institute to guide its behavior towards employees, consumers, environmentalists, minorities, communities, shareholders, and other groups Social responsibility refers to actions an organization takes beyond what is legally required to protect or enhance the wellbeing of living things ST strategies Strategies that result from matching a firm’s internal strengths with its external threats Stability position (SP) One of four dimensions/axes of the SPace Matrix that determines how stable/unstable a firm’s industry is, considering such factors as technological changes, rate of inflation, demand of variability, price range of competing products, barriers to entry into market, competitive pressure, ease of exit from market, price elasticity of demand and risk involved in business Staffing includes activities such a recruiting, interviewing, testing, selecting, orienting, training, developing, caring for, evaluating, rewarding, disciplining, promoting, transferring, demoting, and dismissing employees Stakeholders the individuals and groups of individuals who have a special stake or claim on the company, such as a firm’s customers, employees, shareholders, and creditors Stars a quadrant in the Bcg Matrix for divisions that have a high relative market share position and compete in a highgrowth industry; this is the upper left quadrant Strategic Business Unit (SBU) Structure this type of organizational design groups similar divisions together into units; widely used when a firm has many divisions/segments in order to reduce span of control reporting to a cOO Strategic management the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives Strategic objectives Desired results such as a larger market share, quicker on-time delivery than rivals, shorter design-tomarket times than rivals, lower costs than rivals, higher product quality than rivals, wider geographic coverage than rivals, achieving technological leadership, consistently getting new or improved products to market ahead of rivals Strategic planning the process of formulating an organization’s game plan; in a corporate setting, this term may refer to the whole strategic-management process Strategic Position and Action Evaluation (SPACE) Matrix indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization the axes of this matrix represent two internal dimensions (financial position [FP] and competitive position [cP] ) and two external dimensions (stability position [SP] and industry GLOSSARy position [iP] ) these four factors are perhaps the most important determinants of an organization’s overall strategic position Strategic-management model a framework or illustration of the strategic-management process; a clear and practical approach for formulating, implementing, and evaluating strategies Strategic-management process the process of formulating, implementing, and evaluating strategies as revealed in the comprehensive model, that begins with vision/mission development and ends with strategy evaluation and feedback Strategies the means by which long-term objectives will be achieved Business strategies may include geographic expansion, diversification, acquisition, product development, market penetration, retrenchment, divestiture, liquidation, and joint ventures Strategists the person(s) responsible for formulating and implementing a firm’s strategic plan, including the ceO, President, Owner of a Business, Head coach, governor, chancellor, and/or the top management team in a firm Strategy evaluation Stage in the strategic-management process the three fundamental strategy-evaluation activities are (1) review external and internal factors that are the bases  for current strategies, (2) measure performance, and (3) take corrective actions; strategies need to be evaluated regularly because external and internal factors constantly change Strategy formulation Stage in the strategic-management process; includes developing a vision/mission, identifying an organization’s external opportunities/threats, determining internal strengths/weaknesses, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue Strategy implementation Stage of the strategic-management process activities include establish annual objectives, devise policies, motivate employees, allocating resources, developing a strategy-supportive culture, creating an effective organizational structure, redirecting marketing efforts, preparing budgets, developing and utilizing information systems, and linking employee compensation to organizational performance Strategy-formulation analytical framework a three stage, nine matrix, array of tools widely used for strategic planning as a guide: (stage 1: input stage; stage 2: matching stage; stage 3: decision stage) Strengths-Weaknesses Opportunities-Threats (SWOT) Matrix the most widely used of all strategic planning matrices; matches a firm’s internal strengths/weaknesses with its external opportunities/threats to generate four types of strategies: SO (strengths-opportunities) Strategies, WO (weaknessesopportunities) Strategies, St (strengths-threats) Strategies, and Wt (weaknesses-threats) Strategies Sum Total Attractiveness Scores (STAS) in a QSPM, this is the sum of the total attractiveness Scores in each strategy column; value reveals which strategy is most attractive in each set of alternatives 671 Sustainability the extent that an organization’s operations and actions protect, mend, and preserve, rather than harm or destroy, the natural environment Sustained competitive advantage 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 Synergy the + = effect; when everyone pulls together as a team, the results can exceed individuals working separately Takeover if the merger/acquisition is not desired by both firms Taking corrective actions activity # three in the strategy evaluation process; involves a firm making changes to competitively reposition a firm for the future Technology a component of the mission statement; the firm technologically current? Test marketing 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 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 Turbulent, high-velocity markets industries that are changing very fast, such as telecommunications, medical, biotechnology, pharmaceuticals, computer hardware, software, and virtually all internet-based industries) Tweet Posted messages of 140 characters or less on twitter.com Unrelated diversification When a firm acquires a new business whose value chains are so dissimilar that no competitively valuable cross-business relationships exist Vacant niche in product/market positioning (perceptual map), this is an area in the perceptual map that reveals a customer segment not being served by the firm or rival firms Value Chain Analysis (VCA) the process whereby a firm determines 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 Value chain 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 Variable Costs (VC) a key variable in breakeven analysis; includes costs such as labor and materials 672 GLOSSARy Vertical consistency of objectives compatibility of objectives from the ceO (corporate level) down to the Presidents (divisional level) on down to the Managers (functional level) White knight When a firm agrees to acquire another firm at a point in time when that other firm is facing a hostile takeover by some company Vertical integration a combination of three strategies: backward, forward, and horizontal integration, allowing a firm to gain control over distributors, suppliers, and/or competitors respectively Wikis Websites that allows users to add, delete, and edit content regarding frequently asked questions and information across the firm’s whole value chain of activities Vision statement a one sentence statement that answers the question, “What we want to become?” Vision statement answers the question, “What we want to become?” Wa in Japan, this stresses group harmony and social cohesion Whistle-blowing the act of telling authorities about some unethical or illegal activities occurring within an organization of which you are aware WO strategies Strategies that result from matching a firm’s internal weaknesses with its external opportunities Workplace 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 WT strategies Strategies that result from matching a firm’s internal weaknesses with its external threats Name Index A aaker, David a., 326 abe, Shinzo, 89 abetti, Pier, 329 abratt, russell, 126 achler, Mark, 43 aguinis, Herman, 104, 126, 389 ahmed, rumman, 107 aldrich, Drew, 43 alexander the great, 53 allan, graham, 96 allarie, Y., 194, 223, 293 allen, James, 57 allio, Michael K., 366 allio, robert J., 250 alpert, Lukas, 72 alston, Jon, 106 ansoff, igor, 223 ante, Spencer, 223, 329 aquino, Karl, 126 aristotle, 53 armour, Stephanie, 368 arms, Hanjo, 287 arora, ashish, 221 ashkenas, Suzanne Francis, 163 avolio, Bruce J., 126 B Bachelet, Michelle, 361 Baetz, Mark, 174, 185 Baig, edward, 329 Balmer, John M., 326 Barczak, gloria, 163 Barnett, Michael L., 126 Barney, J B., 223 Bart, christopher, 174, 185 Bartkus, Barbara, 182 Bartlett, c a., 343, 368 Bastin, Lucy, 366 Bauerlein, Valerie, 329 Bayles, carter, 381 Bear Bryant, 56 Bedeian, a g., 368 Beeson, John, 366 Bellin, Joshua, 104 Berchicci, Luca, 250 Berg, norman, 274 Bergman, B., 223 Berlin, Jon, 43 Berman, Saul J., 250 Bernstein, elizabeth, 128 Berthon, Pierre r., 104 Bettis, richard a., 287 Beyer, J M., 193 Biggadike, ralph, 329 Birkenfeld, Brad, 113–114 Blettner, Daniela P., 287 Bloom, nicholas, 104 Bornhorst, Don, 148 Bouchikhi, Hamid, 163 Boulton, William, 212, 223 Brandt, Steven c., 167 Brewer, rosalind, 319, 361 Bridge, John, 73 Bronchick, Jeffrey, 283 Brook, tom, 129 Brown, Brian, 233 Brown, richard, 352, 368 Burdick, charles, 348 Byrne, John, 167 C cafaro, Debra, 352 campbell, andrew, 174, 185, 366 campbell, Benjamin, 366 cardinal, L B., 72 carroll, archie, 129 casey, nicholas, 107 cerruti, James, 126 chaddad, Fernando r., 287 challenger, John, 112 chandler, alfred, 340 chandran, rajan, 385, 392 chasan, emily, 368 chatterjee, Sayan, 57, 389 chen, Ming-Jer, 253 childress, Sarah, 107 chipp, Kerry, 126 chng, Daniel Han Ming, 366 christensen, roland, 274 christie, richard, 292 chu, Kathy, 107, 329 cleland, D i., 174, 185 coff, russell, 366 collier, David, 182 collins, David, 182 conger, Jay, 43, 182 connelly, Brian L., 287 copeland, gina, 43 cote, David, 350 crittenden, Victoria L., 326 crook, t russell, 389 csaszar, Felipe a., 366 cyert, richard, 160 D Daft, richard, 223 Damanaki, Maria, 123 Darien, Steven, 353 Dassler, adolf ‘adi’, 48 David, Fred r., 47, 72, 77, 111, 135, 167, 189, 227, 257, 292, 293, 297, 333, 373 Davidowitz, Howard, 230 Davidson, Kenneth, 140, 167 Davis, Bob, 107 Davis, Paul J., 366 Dawson, Jeremy F., 366 Day, george, 182 Deal, t., 355, 368 Deimler, Mike, 57 Deming, edward, 40, 56, 216 Denning, Stephen, 326, 366 Dess, greg, 292 Dezsö, cristian L., 366 Dickel, K., 262–264, 292 Dilworth, J., 211 Dimon, Jamie, 112 Dimotakis, nikolaos, 126 Donaldson, thomas, 287 Dorf, Paul, 112 Dowell, glen, 250 Doz, Yves L., 167 Drucker, Peter, 40, 41, 72, 113, 128, 171, 175, 181, 185, 197, 223, 374 Dumaine, Brian, 185, 223 Duncan, Jack, 353, 368 Durant, Will, 40 Dvorak, Phred, 128, 293 E einstein, albert, 40 eisenstat, russell, 57 eisner, alan, 292 erez, M., 380, 392 erickson, tamara, 223 ester, Mike, 368 etter, Lauren, 363 evans, J., 223 everton, richard, 232 F Fahey, Liam, 250 Ferguson, renee Boucher, 287 Fernhaber, Stephanie a., 287 Fieldstad, Øystein D., 163 Firsirotu, M., 223, 293 Floyd, Steven W., 366 Foote, nathaniel, 57 Foss, nicolai J., 221 Fox, Justin, 326 Francis, Michael, 374 Fredberg, tobias, 57 Fremeth, adam r., 126 Freund, York, 229, 253 Friedman, Milton, 117, 118 Frisch, Bob, 57 Fuhrmans, Vanessa, 107 Fulmer, c., 366 Fulmer, William, 49 G gamble, John, 167 gangopadhyay, abhrajit, 107 garcia-canal, esteban, 326 gastel, Daniel, 43 gavetti, giovanni, 57 geis, Florence, 292 gelfand, Michele J., 368 gellerman, Saul, 113, 128 genakos, christos, 104 george, Bill, 368 george, claude Jr., 191, 223, 392 geun-hye, Park, 87 673 674 nAME IndEx ghoshal, S., 343, 368 gib, andre, 293 gillard, Julia, 87 gilrane, Veronica L., 366 gino, Francesca, 366 glassman, Myron, 182 glavas, ante, 126 gluck, Frederick, 73, 106 glueck, Willian F., 368, 374 goldman, Michael, 126 goolsbee, austan, 38 gottfredson, ryan K., 104, 389 govindarajan, Vijay, 104 graham, Billy (reverend), 113 grant, robert, 191, 223, 292 greco, Joann, 128 greenbaum, rebecca L., 126 greenley, gordon, 73 guerras, Luis Ángel, 57 guha, romit, 107 guillén, Mauro F., 326 guinan, Patricia, 298, 329 gulati, ranjay, 366 gupta, Sunil, 329 guth, William, 293 H Hagerty, James, 167 Haleblian, Jerayr, 163 Hambrick, Donald c., 326 Hamel, gary, 167, 366 Hannah, Sean t., 126 Hannon, Kerry, 129 Hansen, F., 135, 167 Harper, Stephen, 72 Harrigan, Kathryn r., 153, 167 Hattori, Susumu, 104 He, Jinyu, 287 Heinick, rick, 163 Henderson, Bruce, 41 Henry, J., 368 Hewson, Marillyn, 361 Hodges, Jan, 200 Hofer, charles W 212, 223, 387, 392 Hollande, Francois, 79 Honeycutt, earl D., 104 Hookway, James, 107 Horne, James van, 202, 223 Hoy, Frank, 129 Huang, Zhi, 287 Hurt, Frank, 148 Hussey, D., 380, 392 Hutchins, nate, 326 Hwelett, Sylvia, 92 I ibarra, Herminia, 182 ibsen, H., 355, 368 ichii, Shigeki, 104 ichioka, Sachiko, 118 ignatius, adi, 104 isaacson, Walter, 57 J James, LeBron, 201 Jargon, Julie, 107 Jayachandran, S., 253 Jiabao, Wen, 97 Jin, Wang, 361 Johnson, ron, 200, 374 Johnsone, tim, 43 Johnston, Hugh, 352 Jones, ashby, 128 Joo, Harry, 104, 389 Joseph, John, 287 Jules, claudy, 104 Jung, andrea, 114 K Kagame, Paul, 95 Kahane, adam, 389 Kahn, Kenneth B., 163 Kalinowski, Mark, 138 Kanfer, F., 380, 392 Kaplan, robert, 381 Karim, Samina, 366 Karnani, aneel, 126 Katzenbach, Jon r., 366 Kellermanns, Franz W., 287 Kemper, Don, 362 Kennedy, a., 355, 368 Kennedy, Simon, 107 Kent, Muhtar, 345 Ketchen, David J., 57 Khosla, Lalita, 106 Kiely, Kathy, 72 Kim, Kwang-Ho, 250 Kimberly, John r., 163 King, andrew a., 250 King, eden B., 366 King, William r., 174, 185, 190, 223 Kirchner, cristina, 361 Kirkpatrick, Shelley, 197, 223 Kiron, David, 287 Kleiderman, Valeska, 287 Kleyn, nicola, 126 Knap, Barry, 144 Knauss, Don, 152 Knott, anne Marie, 221 Knotts, rose, 86, 106 Knudsen, thorbjorn, 366 Koch, Franz, 43 Kolev, Kalin, 163 Kotler, Philip, 301 Kozlowski, Steve W J., 126 Krantz, Matt, 223 Kronley, caroline, 366 Kryscynski, David, 366 Kubasik, chris, 116, 361 Kumar, V., 326 L Ladstaetter-Fussenegger, Florian, 57, 389 Lafley, a.g., 57, 389 Lange, Donald, 126 Langham, M., 380, 392 Langley, ann, 72 Langvardt, arlen W., 126 Larkin, ian, 366 Lavelle, Louis, 293 Leap, terry, 389 Leavy, Brian, 57 Lechner, christoph, 287, 366 Lehmann, Donald, 329 Lemper, timothy a., 221 Lenz, robert, 51, 73, 292, 368 Leung, Sophie, 107 Lindenberg, Siegwart, 221 Lindgreen, adam, 126 Linneman, robert, 385 Lissak, Michael, 182 Locke, edwin, 197, 223 Lombardi, Vince, 124, 332 Loock, Moritz, 126 Lord, robert g., 126 Lorsch, Jay W., 326 Lorsch, John, 193, 223 Love, claire, 57 Lublin, Joann, 128, 293, 368 Luhnow, David, 107 Lumpkin, g., 292 Luque, Mary Sully, 104 Lustenberger, Lou, 175 Lux, Sean, 389 Lyles, Marjorie, 368 Lynton, nandani, 104 M MacMillan, ian c., 293 Magnini, Vincent P., 104 Makhija, Mona V., 221 Makower, Joel, 121 Maon, Franỗois, 126 Margerum, Barry, 43 Margulies, robert, 293 Mark, reuben, 174 Martin, roger L., 389 Mason, rowe, 262–264, 292 Matthews, christopher, 128 Mattioli, Dana, 357 Matzler, Kurt, 57, 389 Mauboussin, Michael J., 389 Maxwell, Hamish, 144 Mayer, David M., 126 Mcafee, Bruce, 182 Mccarthy, e Jerome, 300 Mcclendon, aubrey, 283 Mcconkey, Dale, 49, 243, 253, 368, 392 Mcgee, Patrick, 329 Mcginnis, Michael, 392 Mcginnis, Vern, 177, 185 Mcgroarty, Patrick, 106 McKenny, aaron F., 57 Mcnamara, gerry, 163 Merkel, angela, 87 Merrick, amy, 329 Michael, David, 104 Michel, george, 362 Miles, raymond e., 163 Miller, c c., 72 Mintzberg, Henry, 392 Morgan, Spencer, 128 Mossholder, Kevin W., 221 Moynihan, Brian, 147 Mubarak, Hosin, 92 Mukherjee, arpan, 107 Murdoch, rupert, 345 Murray, Matt, 293 nAME IndEx Murthy, Phaneesh, 116 Muyot, Micahel, 126 N nader, ralph, 117, 118 nambisan, Satish, 57 nandkumar, anand, 221 nardelli, robert, 350 neir, ann, 43 nelson, ron, 72 neufeldt, Victoria, 73 newman, William, 339, 368 newsom, Mikyong, 182 ngo, nhat, 43 nieto, enrique, 101 nooyi, indra, 142, 352 norton, David, 381 novak, David, 97 O O’Donnell, Jayne, 72 Obama, Barack, 38, 115, 232 Obodaru, Otilia, 182 Ocasio, William, 287 Ogden, John, 129 Olsen, eric, 182 Ormiston, Margaret e., 126 P Pacheco-de-almeida, gonỗalo, 250 Pagnattaro, Marisa anne, 104 Palazzolo, Joe, 128 Palmisano, Samuel, 323 Pan, roland, 43 Parise, Salvatore, 298, 329 Parker, Bill, 87 Parnell, John, 392 Parreira, carlos, 53 Pascale, r., 368 Patel, Pankaj c., 287 Patrick, Wendy, 112 Peaple, andrew, 223 Pearce, John ii, 72, 185 Peddie, chad i., 366 Peel, Michael, 73 Peltola, Soili, 389 Peng, ann c., 126 Peterson, thomas, 352 Petraeus, David, 115 Petraeus, Holly, 115 Piech, Ferdinand, 355 Pierce, Lamar, 366 Pinto, Miguel cardoso, 326 Pitt, Leyland F., 104 Plangger, Kirk, 104 Porter, Michael e., 104, 143, 149, 150, 229, 250, 253, 362 Prahalad, c K., 167 Prats, Julia, 366 Prentice, Pamela Kirk, 287 Prescott, John, 253 Puranam, Phanish, 366 Q Quigley, Joseph, 326 Quinn, James, 293 R rader, David, 221 radnofsky, Louise, 128 raice, Shayndi, 329 ramamurti, ravi, 104 ramchander, Sanjay, 126 rapoport, Michael, 329, 392 rarick, charles, 174, 185 ratnaker, raj, 43 raudsepp, eugene, 72 raveendran, Marlo, 366 read, ian, 348 ready, Douglas, 182 reddy, Sudeep, 368 reenen, John van, 104 reeves, Martin, 57 reimann, Bernard, 72 richardson, Hettie a., 221 richardson, Karen, 368 richter, Brian K., 126 rivkin, Jan W., 104, 389 robertson, Diana, 113 robinson, richard, 72 rodgers, Matthew S., 366 rometty, Firginia, 360 romney, Mitt, 232 ronda-Pupo, guillermo armando, 57 roos, Johan, 182 rosen, andrew, 160 rosen, corey, 358 rosenfeld, irene, 352 ross, David gaddis, 366 rousebl, Philip, 223 rouseff, Dilma, 361 rowe, H., 262–264, 292 rubin, Joel D., 126 rukstad, Michael, 182 rumelt, richard, 373–374 S Saad, Kamal, 223 Saadawi, nawal al, 87 Sadun, raffaella, 104 Salazar, Ken, 123 Salomon, robert M., 126 Salter, Malcolm, 274 Saporito, Bill, 253 Sawka, Kenneth, 253 Scarpello, Vida, 212 Schaubroeck, John M., 126 Schein, edgar H., 223, 341, 355, 368 Schendel, Dan e., 387, 392 Schifrin, Matthew, 167 Schoemaker, Paul, 182 Schrader, K., 72 Schroeder, r., 210 Schultz, Peter, 180 Schwebach, robert g., 126 Schwenk, g L., 72 Scolari, Luis, 53 Scott, Jennifer, 43 Settoon, randall P., 221 Shapiro, Daniel, 104 Sharma, amol, 107 Shih, eric, 366 Shimelonis, Mark, 140 Short, Jeremy c., 57 Shrivastava, P., 293 Siegel, Lee, 253 Siggelkow, nicolaj, 389 Sigurdardottir, Johanna, 87 Simons, robert, 392 Singh, Manmohan, 100 Sloan, alfred Jr., 40, 72 Slyke, eric J., 287 Smith, adam, 223 Smith, Daniel, 253 Smith, Julia, 73 Smith, M., 135, 167 Snow, charles c., 163 So, clarence, 43 Song, Xiao-Bing, 366 Sonnerfeld, Jeff, 283 Sosna, Marc, 366 Srivastava, Mehul, 106 Staking, KiM, 126 Staley, ed, 175 Stalin, Joseph, 373, 374 Starik, Mark, 119 Steffen, ilona, 366 Steiner, george, 176, 185 Steinhauser, gabriele, 79 Sterba, Jim, 129 Stieger, Daniel, 57, 389 Stobaugh, robert, 368 Stone, B., 223 Strickland, a, J iii, 167, 253, 293 T talley, Karen, 392 talley, teralean, 232 taylor, todd, 145 telesio, Piero, 368 tetlock, Philip e., 126 thai, Kim, 329 thelen, Shawn t., 104 thomas, robert J., 104 thompson, arthur Jr., 167, 253, 293 thompson, Scott, 112 thorning-Schmidt, Helle, 87 thurm, Scott, 329 tichy, noel M., 57 tillmanns, Philipp, 57 timberlake, cotton, 107 toffler, alvin, 380 treviño, Linda K., 126 trice, H M., 193 trimble, chris, 104 tsai, Wenpin, 250 turner, Karynne L., 221 tushman, Michael, 366 tzu, Sun, 53, 54, 197, 387 U Ullman, Mike, 200 Underhill, Paco, 42 Underwood, robert L., 104 V Valerio, anna Marie, 366 Vallaster, christine, 126 Van Horne, J., 202 675 676 nAME IndEx Varadarajan P., 253 Vazquez, raul, 233 Velamuri, S ramakrishna, 366 Vitton, John, 174, 185 Vranica, Suzanne, 329 W Waldman, David a., 104 Walls, Judith L., 287 Wang, Danni, 104 Wang, taiyuan, 126 Washburn, nathan t., 126 Water, J., 392 Waterman, robert Jr., 41, 72, 223, 384 Watkins, Michael D., 221 Weicher, Mathias, 287 Weihrich, Heinz, 292 Weinberg, Bruce, 298, 329 Welch, Jack, 159, 350 Wells, theodore, 114 West, Michael a., 366 Whitman, Meg, 352 Widmer-Schlumpf, eveline, 87 Williams, charles, 366 Wolfowitz, Paul, 117 Wonacott, Peter, 107 Wulf, Julie, 366 Y Yavitz, Boris, 339, 368 Yeung, Sally, 174 Young, eric, 114 Yu, roger, 253 Yun, Michelle, 107 Z Zachary, Miles a., 57 Zahra, Shaker a., 57 Zand, Dale, 392 Zemsky, Peter B., 250 Zook, chris, 57 678 SUbJECT IndEx confrontation, 339 conservative Quadrant in SPace, 262–266 consistency, 373–374 consonance, 373–374 content tips, 399 contingency planning, 384–385 controlling, 198 cooperative agreements (among competitors), 154–155 cooperative arrangements, 154–155 cooperation among competitors, 153–156 coral reefs, 124 core competence, 214, 216 corporate ethics, 110–117 corporate valuation, 315–319 corporate wellness programs, 361–363 corrective actions, 40, 376–381 cost/benefit analysis, 202 cost leadership strategies, 149–151 crafting strategies, (See art (versus science)), 386 creed statement, 171, 355 critical success factors, 245 cross-distribution/licensing agreements, 154–155 culture, 84–94 Brazil – Business culture, 90 china – Business culture, 92 cultural pitfalls, 85 cultural products, 192–193 Definition, 192 egypt – Business culture, 91 germany – Business culture, 90 india – Business culture, 92 Japanese Business culture, 89 Mexican Business culture, 88 nigeria Business culture, 93 U.S vs foreign business cultures, 84–94 cultural forces, 192–193, 354–355 cultural variables, 192–193, 354–355 cultural pitfalls, 85 cultural products, 192–193, 351–355 customers, 178 customer analysis, 199 D Data mining, 322 Data vs information, 213 Debt financing, 305–310 Decentralized structure, 342–345 Decision stage, 258, 275–280 Defensive quadrant (in SPace), 262–266 Defensive strategies, 146–148 Divestiture, 147 Liquidation, 148 retrenchment, 146–147 Defusion, 339 De-integration, 139 Delayering, 350 Demand void, 303 Demographic forces/variables, 231–233 Differentiation strategies, 149–152 Dilution of ownership, 306 Directional vector, 262–266 Director, 281–284 Director of competitive analysis, 238 Discount, 318 Distinctive competencies, 189, 216 Distribution, 201 Diversification strategies, 143–146 related, 144 Unrelated, 145 Diversity, 361 Divestiture, 147 Dividend decisions, 203–204, 310 Dividend recapitalizations, 157 Divisional structure, 340–349 Dodd-Frank act, 115, 351 Dogs, 267–271 Downsizing, 350–351 E e-commerce, 43 economic forces, 229–231 economy, 229–231 educational institutions, 159–160 educative change strategy, 353–354 eeOc, 116 empirical indicators, 192 empowerment, 49 environment, 119, 231–233 environmental forces, 231–233 environmental scanning, 44, 226 environmental Sustainability (chapter 3), 119–124 environmental affairs, 121–122 iSO 14000/14001 certification, 122 Lack of standards changing, 120–121 Proactive/reactive, 120–122 reasons to be green, 121 environmental training, 122 eMS (environmental management systems), 122 employee stock ownership plans (eSOPs), 358–359 ePS-eBit analysis, 305–310 equity financing, 305–310 eSOPs, 358–359 ethics, 110–117 ethics culture, 113 ethics/Social responsibility/ Sustainability, (chap 3), 109–129 Bribes, 114–115 Business ethics, 110–117 code of Business ethics, 112 Definition, 110–111 ethics culture, 110–117 Flirting, 116–117 iSO14000/14001 certification, 122 Managing environmental affairs, 121–122 Social responsibility, 117–120 Solar power, 123 Songbirds and coral reefs, 124 Sustainability, 119–124 Whistle-blowing, 113–114 Wildlife, 122–123 Workplace romance, 115–117 evaluating mission statements, 179–180 evaluating the worth of a business, 315–319 excellent Strategic Management Showcased chapter – 38 chapter – 76 chapter – 110 chapter – 132 chapter – 170 chapter – 188 chapter – 226 chapter – 256 chapter – 296 chapter 10 – 332 chapter 11 – 372 executive summary, 396 executive titles, 340–349 external, 44 external audit (chapter 7), 225–253 competitive forces, 237–239 competitive intelligence (ci) programs, 238–239 competitive Profile Matrix, 245–248 cooperation among competitors, 154–155 economic forces, 229–231 executive pay, 351–353 external Factor evaluation (eFe) Matrix, 244–247 Five-Forces Model, 239–242 Forecasting tools and techniques, 243–244 industrial/Organization (i/O) view, 229 industry analysis: the eFe Matrix, 244–247 Labor unions, 234–235 Making assumptions, 243–244 nature of an external assessment, 226 Political, governmental and legal forces, 232–234 Porter’s Five-Forces Model, 239–242 Process of performing, 228–229 Social, cultural, demographic and environmental forces, 231–233 technological forces, 236–237 Sources of external information, 242–243 external Factor evaluation (eFe) Matrix, 244–247 external forces, 227–228 Variables, 227 external opportunities and threats, 44, 226–228 F Facebook, 42 Failure (business), 146, 148 Fast follower, 157 Feasibility (in strategy evaluation), 373–374 Feng shui, 86 Finance/accounting, 202–209, 304–374 audit checklist, 209 Financial accounting Standards Board (FaSB), 385 Functions of finance, 202–211 Financial ratios, 191, 204–207 Financial budgets, 313–315, 317 Financial objectives, 133 Financial Position (FP) in SPace, 262–266 Financial ratio analysis, 191, 204–207 Financing decision, 202–203 First mover advantages, 157–158 Five-Forces Model, 239–242 Bargaining power of consumers, 239, 368 Bargaining power of suppliers, 239, 241 Subject Index A accounting (See Finance/accounting), 304–319 actionable (factors), 216, 227, 244 acquiring capital, 305–310 acquisitions, 155–157 Friendly merger, 155 Hostile takeover, 155 activity ratios, 205 adapting (to change), 41, 353–354 adidas group (cohesion case), 58–69 competitors, 65–66 internal issues, 60–62 Product areas, 62–65 Segments, 59–60 advantage (in strategy evaluation), 373–374 advertising, 199, 299 Quadrant (in SPace), 262–268 africa, 93, 95–97, 105 allocate resources, 40, 339 alternative strategies, 40, 45–46, 335–337 annual objectives, 40, 45–46 Art of War, 53–54, 56 art (versus science), 386 assumptions, making them, 243–244 assurance of Learning exercises chapter 1, 70–73 chapter 2, 105–106 chapter 3, 127–129 chapter 4, 164–167 chapter 5, 183–185 chapter 6, 221–223 chapter 7, 250–253 chapter 8, 287–292 chapter 9, 326–328 chapter 10, 366–368 chapter 11, 390–391 attractiveness Scores (aS in a QSPM), 275–280 auditing, 385–386 avoidance, 339 B Backward integration, 139–140 Balanced scorecard, 381–382 Balancing work life and home life, 359–360 Bankruptcy, 146–147 Bargaining power of consumers, 239, 242 Bargaining power of suppliers, 239, 241 Bcg Matrix, 267–271 Beliefs, 192–193 Benchmarking, 214, 216, 350–351 Benefits (of strategic management), 48–50 Financial benefits, 49–50 non–financial benefits, 50 Of a diverse workforce, 361 Board of directors, 281–284 Body language, 398 Bonus system, 351–353 Book value, 318 Boston consulting group (Bcg) Matrix, 267–271 Boxed inserts – excellent Strategic Management Showcased chapter – 38 chapter – 76 chapter – 110 chapter – 132 chapter – 170 chapter – 188 chapter – 226 chapter – 256 chapter – 296 chapter 10 – 332 chapter 11 – 372 Brazil, 90 Brand positioning, 302–304 Breakeven analysis, 207–209, 222 Bribes, 114–115 Bribery act & Law, 115 Business analytics, 322–323 Business climate across countries/ continents, 94–102 african countries, 95–97 china, 97–98 germany, 100–101 india, 99–100 Mexico, 101–102 Philippines, 99 taiwan, 99 Union membership across europe, 94–95 Business culture across countries, 87–94 Brazil, 90 china, 92 egypt, 91 germany, 90 india, 92 Japan, 89 Mexico, 88 nigeria, 93 Business failure, 50 Business portfolio, 267–271 Business-process outsourcing (BPO), 158 Business vision and mission analysis, (chapter 5), 44, 169–185 Business strategy (vs Military strategy), 52–53 Business worth, 315–319 C capacity (production/operations function), 209–210 capacity utilization, 209 capital budgeting, 202–203 case analysis, (appendix 1), 392–403 guidelines, 394–403 Oral presentation, 395, 397–400 Sample case analysis outline, 397, 400–403 tips for success, 399–400 case analysis outline, 400–403 case method, 394–396 cash budget, 313–315 cash cows, 267–271 ceremonies, 192–193 champions, 281 chandler’s strategy/structure relationship, 340 change (adapting & managing), 41, 353–354, 380 checklist of questions Finance/accounting audit checklist of questions, 209 Management audit checklist of questions, 198 Marketing audit checklist of questions, 202 MiS audit checklist of questions, 213 Production/operations audit checklist of questions, 211 r&D audit checklist of questions, 213 chief executive Officer (ceO), 43, 340–349 chief Finance Officer (cFO), 347–349 chief information Officer (ciO), 236 chief intelligence Officer (ciO), 236 chief Legal Officer (cLO), 347–49 chief Marketing Officer (cMO), 199, 347 chief Operations Officer (cOO), 347–349 chief technology Officer (ctO), 236, 348 chief Strategy Officer (cSO), 39, 43, 347 china, 92, 97–98 code of business ethics, 112 cohesion case (on adidas group), 58–69 competitors, 65–66 internal issues, 60–62 Product areas, 62–65 Segments, 59–60 college football programs ($ worth), 319 combination strategy, 135 common stock financing, 305–310 communication, 48, 87, 190, 197 compensation, 351–353 competitive advantage, 42–43, 78, 190, 216 Competitive Advantage of Nations, 149 Competitive Strategy, 149 competitive analysis, 237–242 competitive forces, 237–239 competitive intelligence (ci) programs, 238–239 corporate spies, 238 Definition, 238 Unethical tactics, 239 competitive Profile Matrix, 245–248 competitive Position (cP), in SPace, 262–266 components of a mission statement, 177–179 examples, 178 comprehensive written case analysis, 396–397 conflict resolution, 339 avoidance, 339 confrontation, 339 Defusion, 339 677 680 SUbJECT IndEx Managing by crisis, 134 Managing by extrapolation, 134 Managing by Hope, 134 Managing by Objectives, 132–134 Managing by Subjectives, 134 Managing conflict, 339 Managing resistance to change, 353–354 Managing the natural environment, (See natural environment), 110, 119–124 Market capitalization, 318 Market commonality and resource similarity, 239 Market development, 142 Market penetration, 141 Market segment, 303 Market segmentation, 299–302 Market value, 318 Marketing, 198–202, 297–304 advertising media, 199, 299 cost/benefit analysis, 202 Distribution, 201 Functions of marketing, 198–202 implementation issues, 297–304 Market segmentation, 299–302 Marketing audit checklist of questions, 202 Marketing research, 201–202 new principles of marketing, 298–299 Perceptual mapping, 302–304 Pricing, 200 Product and service planning, 200 Product positioning, 302–304 Selling products/services, 199 Marketing audit checklist of questions, 202 Marketing mix, 300 Place, 300 Price, 300 Product, 300 Promotion, 300 Marketing research, 201–202 Markets, 177 Matching stage, 258–259 Matching structure and strategy, 340–349 Matrix structure, 346–347 Measuring organizational performance, 378–379 Medical organizations, 160 Merger/acquisition, 155–157 Benefits of, 156 Friendly merger, 155 Hostile takeover, 155 Why many fail, 156 Merit pay, 351–353 Metaphors, 192–193 Mexican culture, 88 Mexico, 101–102 Military strategy (vs business strategy), 52–53 MiS issues, 322–323 Mission, 44, 169–185 Mission versus vision, 171, 174 Writing and evaluating, 179–180 Motivating, 197 Multidimensional scaling, 302 Multinational corporations, 79–84 MySpace, 42 Myths, 192–193, 355 N natural environment, 110, 119–124 nemaswashio, 86 nonprofit and governmental organizations, 160–161 notable Quotes (See www.strategyclub.com website) O Objectives, 45, 132–134, 335–337 annual, 45–46, 335–337 Benefits of, 45, 134 characteristics of, 45, 133 Financial versus strategic objectives, 133–134 Long-term, 45, 132–133 not managing by objectives, 134 Purpose and characteristics, 45–46, 132–133 Office of civil rights (Ocr), 117 Operations (See Production/Operations Function), 209–211, 355–356 Opportunities, 44, 226–228 Oral case analysis, 395, 397–400 Oral presentation, 395, 397–400 Organizational change, 41, 353–354, 380 Organizational charts, 340–349 Do’s and Don’ts, 348–349 Organizational culture, 192–193 cultural products, 192–193 Definition, 192 egypt culture, 91 germany culture, 90 india culture, 92 Japanese culture, 89 Mexican culture, 88 nigeria culture, 93 U.S vs foreign, 84–94 Ways and means for altering, 193–194 Organizational structure, 340–349 advantages/disadvantages of functional, 341–342 advantages/disadvantages of divisional, 342–343 advantages/disadvantages of matrix, 346–347 Do’s and Don’ts, 348–349 Symptoms of ineffectiveness, 341 Organizing, 196 Outside-USa Strategic Planning (chapter 2), 75–107 Outsourcing, 158 Outstanding shares method to value a firm, 317 P Partnering and partnerships, 154–155 Pay-Performance issues, 351–353 Perceptual mapping, 302–304 Personal ethics, 110–117 Personal selling, 300 Personnel management, 197 Philippines, 99 Pitfalls in strategic planning, 50–51 Planning, 39, 194–196 Policies, 46–47, 337–338 Political, governmental and legal forces/ variables, 232–234 Politics of strategy choice, 280–281 Porter’s Five-Forces Model, 239–242 Bargaining power of consumers, 239, 368 Bargaining power of suppliers, 239, 241 Potential development of substitute products, 239, 241 Potential entry of new competitors, 239–240 rivalry among competing firms, 239–240 Porter’s five generic strategies cost leadership (type and 2), 149–150 Differentiation, 150–151 Focus (type and 5), 152 Portfolio of businesses, 267–273 Potential development of substitute products, 239, 241 Potential entry of new competitors, 239–240 Premium, 318 Prepare and present a case analysis, 395–403 Preparing a case for class discussion, 392–403 Preparing a written case analysis, 392–403 Price, 200, 300 Price earnings ratio method to value businesses, 315–319 Pricing, 200–201 Private-equity acquisitions, 157 Process (production/operations function), 209–211, 350 Process tips, 400 Product, 177, 300 Product and service planning, 200 Product development, 142–143 Product positioning, 302–304 Product positioning maps, 302–304 Production/Operations, 209–211, 355–356 audit checklist of questions, 211 Production/Operations functions, 209 Production/Operations concerns when implementing strategies, 210 Profitability ratios, 205 Profit sharing, 352 Pro forma (projected) financial statement analysis, 310–316 Promotion, 300 Protectionism, 81 Publicity, 300 Q OSPM, 275–280 Quality (production/operations function), 210 Quantitative Strategic Planning Matrix (OSPM), 275–280 Question marks, 267–271 R ratings, 216, 244, 280 ratio analysis, 204–207 rational change strategy, 353–354 reengineering, 350–351 relative market share position, 267–271 reconciliatory, 176 relative deficiency or superiority, 45 SUbJECT IndEx Potential development of substitute products, 239, 241 Potential entry of new competitors, 239–240 rivalry among competing firms, 239–240 Fixed costs, 207–209 Flirting, 116–117 Focus strategies, 150, 152 Folktale, 192–193 Football programs ($ worth), 319 Force change strategy, 353–354 Forecasting tools and techniques, 243–244 Foreign corrupt Practices act (FcPa), 80, 114 Forward integration, 137–139 Franchising, 138 Functional structure, 340–349 Functions of finance, 202–211, 304–319 Dividend decision, 202–203 Financing decision, 202–203 investment decision, 202–203 Functions of management, 194–198 controlling, 198 Motivating, 197 Organizing, 196 Planning, 194–196 Staffing, 197–198, 356–363 Functions of marketing, 198–202 cost/Benefit analysis, 202 customer analysis, 199 Distribution, 201 Pricing, 200 Product and service planning, 200 Marketing research, 201–202 Marketing audit checklist of questions, 202 Selling products/services, 199 Furloughs, 356 Future shock, 380 G gaaP, 385 gaaS, 385 gain sharing, 352 generic Strategies, 149–152 cost leadership, 149–150 Differentiation, 150–151 Focus, 152 germany, 90, 100–101 glass ceiling, 360 global challenge, 81–82 global competition, 78–81 advantages and disadvantages, 80–81 global strategy, 82 globalization, 82 goals (See objectives), 45, 132–142, 335–337 goodwill, 316 governance, 281–284 governmental forces, 232–234 Variables, 232–234 governmental organizations (strategic planning), 160–161 grand Strategy Matrix, 273–274 growth ratios, 205 guanxi, 84 guidelines for case analysis, 394–395 guidelines for effective strategic management, 51–52 H Halo error, 258 Heroes/heroines, 192–193, 355 High-velocity (change) markets, 153 Horizontal consistency of objectives, 335 Horizontal integration, 140–141 Hostile takeover, 155 Human resource concerns when implementing strategies, 356–363 Human resource management, 197, 356–363 I ie Portfolio Matrix, 270–273 iFrS, 385 india, 92, 99–100 industrial Organization (i/O) View, 229 industry analysis: external Factor evaluation (eFe) Matrix, 244–247 industry growth rate (Bcg axis), 267–271 industry Position (iP), in SPace, 262–266 information technology, 236 initial Public Offering (iPO), 319 input stage, 258–259 institute of Business ethics, 110 integration strategies, 137–141 Backward integration, 139–140 Forward integration, 137–139 Horizontal integration, 140–141 Vertical integration, 137 internal-external (ie) Matrix, 270–273 intensive strategies, 141–143 Market development, 142 Market penetration, 141 Product development, 142–143 internal audit (chapter 6), 187–223 Benchmarking, 214, 216 Breakeven analysis, 207–209, 221 cost/Benefit analysis, 202 cultural pitfalls, 85 cultural products, 192–193 Finance/accounting functions, 202–211 Financial ratio analysis, 191, 204–207 iFeM, 216–218 initial Public Offering (iPO), 319 integrating strategy and culture, 192–194 internal factor evaluation matrix, 216–218 internal forces, 189–190 Management, 194–198 Management information Systems, 213 Marketing, 198–202 nature of an internal audit, 188–191 Process of performing an internal audit, 190–191 Production/operations, 209–211 research and development, 211–213 679 research and development audit, 211–213 resource-Based View (rBV), 191–192 Value chain analysis (Vca), 213–215 internal factor evaluation matrix, 216–218 internal forces, 189–190 internal strengths and weaknesses, 44–45, 187–197 international financial reporting standards (iFrS), 385 international firms, 79–84 international operations, 75–107 advantages and disadvantages, 80–81 internet,42, 236, 298–299, 302 intuition (vs analysis), 40–41 inhwa, 84 inventory (production/operations function), 210 investment decision, 202–203 iSO 14000 and 14001 certifications, 122 J Japanese culture, 84, 89 Joint venture/partnering, 154–155 Joint venture in india, 99–100 Just-in-time (Jit), 356 L Labor unions, 234–235 Language, 192–193 Late mover, 157 Leadership, 197 Learning from the partner, 154 Legal forces/variables, 232–235 Legend, 192–193, 355 Leverage ratios, 205 Leveraged buyout, 157 Linear regression, 243 Liquidation, 148 Liquidity ratios, 205 Linking pay-performance, 351–353 Bonus system, 351–352 gain sharing, 352 Profit sharing, 352 Lobbying, 44 Long-range, planning, 39 Long-term objectives, 45, 132–134 M Mach test, 291–292 Making assumptions, 243–244 Management, 194–196, 334–369 controlling, 198 Functions of management, 194–198 Management audit checklist of questions, 198 Motivating, 197 Organizing, 196 Planning, 194 Staffing, 197 Management audit checklist of questions, 198 Management by wandering around, 375 Management information Systems (MiS), 213, 322–323 SUbJECT IndEx research and development, 211–213, 320–321 research and development audit, 213 internal and external, 212 research and development issues, 211–213 reshoring, 158 resistance to change, 353–354, 380 resource allocation, 40, 339 resource-Based View (rBV), 191–192 empirical indicators, 192 resource similarity, 239 restructuring, 350–351 retrenchment, 146–147 retreats, 48 revised eFe (and iFe) Matrix, 376–381 rightsizing, 350–351 rites, 192–193 rituals, 192–193 rivalry among competing Firms, 239–240 robinson-Patman act, 201 romance, 115–117 rumelt’s criteria for evaluating Strategies, 373–374 S Saga, 192–193 Sales promotion, 300 Sample case analysis outline, 400–403 Sarbanes-Oxley act, 283 Secondary buyouts, 157 Segmentation, 299–302 Self-concept (in mission statements), 177 Self-interest change strategy, 353–354, 380 Selling products/services, 199–200 Six Sigma, 350 Small businesses, 161 SO Strategies, 259–262 Social, cultural, demographic and environmental forces, 231–359 Variables, 359 Social policy, 118–119 Japan versus the world, 118 Social policies on retirement, 118 Social responsibility (chapter 3), 110, 117–119 Society of competitive intelligence Professionals (SciP), 238 Software, (See Strategy club or www.strategyclub.com) Solar power, 123 Songbirds and coral reefs in trouble, 124 Sources of external information, 368–369 SPace Matrix, 262–266 Special note to Students chapter 1, 53 chapter 2, 102 chapter 3, 124 chapter 4, 161 chapter 5, 180 chapter 6, 218–219 chapter 7, 247–248 chapter 8, 284 chapter 9, 323 chapter 10, 363 chapter 11, 387–388 St Strategies, 259–262 Stability Position (SP), in SPace, 262–266 Staffing, 197 Standard & Poor’s Industry Surveys, 368 Standards, 120–121 Stakeholders, 176 Stars, 267–271 Statement of beliefs, 171 Statement of philosophy, 171 Statement of purpose, 171 Stock financing, 305–310 Story, 192–193 Strategic Business Unit (SBU) structure, 340, 345–346 Strategic objectives, 133 Strategic management, 39, 393–403 art vs Science issue, 386 Benefits, 48–50 case analysis, 395–403 challenges, 386–387 Definition, 39 guidelines for effective strategic management, 51–52 in nonprofit and governmental organizations, 159–161 in small firms, 161 Levels of your own health, 361–363 Model, 47–48, 77, 111, 135, 172, 227, 257, 297, 333, 373 Process, 39, 47–48 Secret vs open discussion, 386 Stages, 39–40 terms, 42–48 Visible vs hidden issue, 386 Strategic objectives, 133 Strategic planning, 39, 393–403 art vs Science issue, 386 challenges, 386–387 Pitfalls, 50–51 Process of generating and selecting strategies, 256–293 Quotes, (See notable Quotes) Software, (See Strategy club at www.strategyclub.com) Why some firms no strategic planning, 50 Strategic planning, outside USa (chapter 2), 75–107 advantages and disadvantages, 80–81 Business climate across countries/ continents, 94–102 african countries, 95–97 china, 97–101 germany, 100–101 india, 99–100 Mexico, 101–102 Philippines, 99 taiwan, 99 Business culture across countries/ continents, 84–94 Brazil – Business culture, 90 china – Business culture, 92 egypt – Business culture, 91 germany – Business culture, 90 india – Business culture, 92 Japanese culture, 89 Mexican culture, 88 nigeria – Business culture, 93 681 communication differences across countries, 84–94 corporate tax rates globally, 82–84 cultural pitfalls, 85 global challenge, 81–82 Multinational organizations, 79–80 USa vs foreign business cultures, 84–94 Strategic Position and action evaluation (SPace) Matrix, 262–266 Strategies, types of (chapter 4), 130–167 Backward integration, 139–140 Bankruptcy, 146–147 combination, 135 Diversification, 143–146 Divestiture, 147 Forward integration, 137–139 Franchising, 138 generic, 149–152 geographic expansion, 142 Horizontal integration, 140–141 Levels of, 136–137 Liquidation, 148 Market development, 142 Market penetration, 141 Means for achieving, 153–159 Product development, 142–143 related diversification, 144 retrenchment, 146–147 types of, 134–148 Unrelated diversification, 145 Vertical integration, 137 Strategos, 52 Strategists, 43 Strategy generation and selection, 255–293 Strategy-structure relationship, 340 Strategy-supportive culture, 280, 354–355 Strategy and culture, 280, 354–355 cultural products, 192–193 Strategy analysis and choice, (chapter 8), 254–293 analytical framework, 258 Bcg Matrix, 267–271 cultural aspects, 280 Decision stage, 275 governance issues, 281–284 granD Matrix, 273–274 ie Matrix, 270–273 input stage, 258–259 Matching stage, 258–259 nature of analysis and choice, 256–258 Politics of, 280–281 QSPM, 275–280 SWOt Matrix, 262–266 Strategy club, 56 Strategy execution (chapter 10), 331–369 allocating resources, 339 annual objectives, 335–337 Balancing work life and home life, 359–360 Benefits of a diverse workforce, 361 chandler’s strategy/structure relationship, 340 corporate wellness programs, 361–363 creating a strategy-supportive culture, 354–355 Do’s and dont’s in developing organization charts, 348–349 682 SUbJECT IndEx Strategy execution (Continued) Divisional structure, 340–349 employee stock ownership plans (eSOPs), 358–360 Functional structure, 340–349 Human resource concerns when implementing strategies, 356–363 Linking performance and pay to strategies, 351–353 Managing conflict, 339 Managing structure, 340–349 Managing resistance to change, 353–354 Matching structure with strategy, 340–349 Matrix structure, 346–347 Policies, 337–338 Production/Operations concerns, 355–356 resource allocation, 339 restructuring and reengineering, 350–351 Strategic business unit (SBU) structure, 340, 345–346 Strategy implementation (chapter 9), 295–329 Versus strategy formulation, 333 Strategy formulation, 39, 47, 256–293 analytical framework, 258 cultural aspects, 280 Decision stage, 275 Framework, 258 governance issues, 281–284 input stage, 259 Matching stage, 259 Politics of, 280–281 Versus strategy implementation, 333 Strategy implementation (chapter 9), 40, 47, 295–329, 332–335 acquiring capital, 305–310 advertising media, 299 Business analytics, 322 company evaluation, 315–319 current marketing issues, 297–304 Deciding whether to go public, 319 ePS-eBit analysis, 305–310 Finance/accounting issues, 304–319 Financial budgets, 313–315, 317 Market segmentation, 299–302 Marketing issues, 297–304 MiS issues, 322–323 new principles of marketing, 298–299 Product positioning/Perceptual mapping, 302–304 Projected financial statement analysis, 310–315 research and development issues, 320–321 retention based segmentation, 300 Strategy Monitoring (chapter 11), 40, 47, 370–391 activities, 372, 376–381 art vs Science issue, 386 auditing, 385–386 Balanced scorecard, 381–382 challenges, 386–387 characteristics of an effective evaluation system, 383–384 contingency planning, 384–385 Framework, 376–381 Measuring organizational performance, 40, 381–385 Published sources, 382–383 Questions to address, 378 reviewing bases of strategy, 40, 370–376 review, evaluation, and control, (chapter 11), 370–391 taking corrective actions, 40, 376–381 top-Down or Bottom-Up strategic planning, 387 Visible vs hidden issue, 386–387 Strategy profiles, 262–266 Strategy review, evaluation, and control (chapter 11), 370–390 Strengths-Weaknesses-Opportunities-threats (SWOt) Matrix, 259–262 Strengths, 44–45, 187–223 Structure and strategy, 340, 348–349 Sum total attractiveness Scores (taS) (in a QSPM), 275–280 Sustainability, 110, 119–124 Sustainability report, 120 Sustained competitive advantage, (See Special notes to Students), 42, 43, 190, 216 SWOt Matrix/analysis, 259–262 Symbols, 192–193 Synergy, 196 T take corrective actions, 376–381 tax rates, 82–84 technological forces, 236–237 test marketing, 200 threats, 44, 226–228 taiwan, 99 top-Down or Bottom-Up strategic planning, 387 total attractiveness Scores (taS) (in a QSPM), 275–280 total costs, 207–209 treasury stock, 307 tumbler, 42 turbulent, high-velocity (change) markets, 153 turnaround strategy, 146 tweet, 298 U Union membership across europe, 94–95 Unionized states, 234–235 Unrelated diversification, 145–146 Utility of mission statements, 177 V Vacant niche, 302 Value chain analysis (Vca), 213–215 Value of the dollar, 230–231 Values, 192–193 Variable costs, 207–209 Vertical consistency of objectives, 335 Vertical integration, 137 Visible vs hidden strategies, 386 Vision and Mission analysis (chapter 5), 44, 169–185 characteristics of, 176–177 components, 177–179 Definition, 171 evaluating, 179–180 examples, 178–179, 183 importance (Benefits) of, 174–175 Process of developing, 173–174 Vision Statements, 44, 169–185 Definition, 44 examples, 171, 173 importance (Benefits) of, 174–175 W Wa, 84, 89 Weaknesses, 44–45, 187–223 Weights vs ratings, 216, 244 Wellness programs, 361–363 Whistle-blowing, 113–114 White knight, 156 Wikis, 298 Wildlife, 122–123 WO Strategies, 259–262 Women, 359–360 Workforce (production/operations function), 210 Workplace romance, 115–117 Worth of a business, 315–319 Wt Strategies, 259–262 Y Youtube, 42 ... Printed and bound by courier Kendallville in the United States of america Strategic ManageMent FIFTEENTH EDITION concepts and cases A COMPETITIVE ADVANTAGE APPROACH GLOBAL EDITION Fred r David. .. applying strategic- management concepts through case analysis 14 a case MyLab testing feature (for 12 cases) has been carefully developed and designed specifically to apply strategic- management concepts... income? case company appears in text for First time? case company appeared in Prior edition and Updated now? Firm Headquartered Outside the United States? Strategic ManageMent concepts and cases