Wheelen s strategic management

Strategic Management Model Environmental Scanning: Strategy Formulation: Strategy Implementation: Evaluation and Control: Gathering Information Developing Long-range Plans Putting Strategy into Action Monitoring Performance External: Opportunities and Threats Natural Environment: Resources and climate Societal Environment: General forces Task Environment: Mission Reason for existence Objectives What results to accomplish by when Strategies Plan to achieve the mission & objectives Policies Broad guidelines for decision making Industry analysis Programs Activities needed to accomplish a plan Budgets Cost of the programs Procedures Sequence of steps needed to the job Internal: Strengths and Weaknesses Structure: Chain of command Culture: Beliefs, expectations, values Resources: Assets, skills, competencies, knowledge Feedback/Learning: Make corrections as needed Performance Actual results THIRTEENTH EDITION Strategic Management and Business Policy TOWARD GLOBAL SUSTAINABILITY This page intentionally left blank THIRTEENTH EDITION Strategic Management and Business Policy TOWARD GLOBAL SUSTAINABILITY Thomas L Wheelen J David Hunger Formerly with University of Virginia Trinity College, Dublin, Ireland Iowa State University St John’s University with major contributions by Kathryn E Wheelen Alan N Hoffman Bentley University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sa~o Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Senior Acquisitions Editor: Kim Norbuta Editorial Project Manager: Claudia Fernandes Editorial Assistant: Carter Anderson Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Nikki Ayana Jones Marketing Assistant: Ian Gold Senior Managing Editor: Judy Leale Production Project Manager: Becca Groves Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Creative Director: Blair Brown Senior Art Director/Supervisor: Janet Slowik Cover Designer: Liz Harasymcuk Cover Photo: Courtesy of NASA/Shutterstock Interior Designer: Maureen Eide Media Project Manager, Editorial: Denise Vaughn Media Project Manager, Production: Lisa Rinaldi Full-Service Project Management: Emily Bush, S4Carlisle Publishing Services Composition: S4Carlisle Publishing Services Printer/Binder: Courier/Kendalville Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: 10/12 Times Roman Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text Copyright © 2012, 2010, 2008, 2006, 2004 by Pearson Education, Inc., publishing as Prentice Hall All rights reserved Manufactured in the United States of America This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290 Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps Library of Congress Cataloging-in-Publication Data Wheelen, Thomas L Strategic management and business policy : toward global sustainability / Thomas L Wheelen, J David Hunger — 13th ed p cm Includes bibliographical references and index ISBN-13: 978-0-13-215322-5 ISBN-10: 0-13-215322-X Strategic planning Strategic planning—Case studies Sustainability I Hunger, J David, II Title HD30.28.W43 2012 658.4'012—dc22 2011013549 10 ISBN 10: 0-13-215322-X ISBN 13: 978-0-13-215322-5 Dedicated to KATHY, RICHARD, AND TOM BETTY, KARI AND JEFF, MADDIE AND MEGAN, SUZI AND NICK, SUMMER AND KACEY, LORI, MERRY AND DYLAN, AND WOOFIE (ARF!) SPECIAL DEDICATION TO KATHRYN WHEELEN: Kathryn has worked on every phase of the case section of this book Until this edition, she also managed the construction of the Case Instructor’s Manual She has done every job with a high level of dedication and concern for both the case authors and the readers of this book This book is also dedicated to the following Prentice Hall/Pearson sales representatives who work so hard to promote this book: NOLA AKALA KASEY CROCKETT BRIDGET HANNENBERG DAVID ALEVY DAN CURRIER BRYAN HARRELL TARA ALGEO KELLY DAN TARA HARTLEY DAVID ARMSTRONG MICHLENE DAOUD HEALY KENNY HARVEY MIKE ASKEW STACY DAVIS ALISON HASKINS LAURA BAILEY FRANK DEL CASTILLO CAROL HAWKS NICK BAKER MEREDITH DELA ROSA JENNIFER HEILBRUNN ALICIA BARNES CHRIS DELANEY CHRISTINE HENRY ASHLEY BARNES GEORGE DEVENNEY LYNN HICKS ALICE BARR DANA DODGE (Frick) JULIE HILDEBRAND SHERRY BARTEL KATE DOLDER DAUNNE HINGLE KENDRA BASSI BARBARA DONLON WENDI HOLLAND JAY BECKENSTEIN HEIDI DRESSLER CHRISTY HUMENIUK JOSH BECKENSTEIN TRACY DYBALSKI GENE HUMENIUK NICOLE BELL BRIAN DYK ANDREA IORIO CATHY BENNETT KIM ECK SUSAN JACKSON KATIE BOLLIN TRISH EICHHOLD PAM JEFFRIES SCOTT BORDEN KRISTIN ELBER BRITTANY JUCHNOWSKI JENNIFER BOYLE KELSEY ELLIOTT ANJALI JUSTUS AUNDREA BRIDGES KATIE EYNON CHERYL KABB SUZANNE BROWN GENEVA FARROW LAURA KAPPES ALEXANDRA BUEHLER MARIA FELIBERTY GIA KAUL KYLE BURDETTE MIKE FINER JULIE KESTENBAUM WHITNEY CAMERON MICHELLE FINNERTY KARTAPURKH KHALSA RUTH CARDIFF CANDAS FLETCHER KIM KIEHLER AMY CAREY ROBERT FLORY AMANDA KILLEEN MEGAN CARRICO MARCIA FLYNN WALT KIRBY MARTI CARTER BRAD FORRESTER MARY-JO KOVACH ANDREA CATULLO-LINN MARGARET FRENCH ROBYN KOVAR MEREDITH CHANDLER STEPHANIE FRITSON GREG KRAMP LUKE CLAEYS MARK GAFFNEY DANIEL KRAUSS KAYLEE CLAYMORE MICHELLE GARCIA-JUCHTER MICHAEL KRISANDA BRIAN COBB SYBIL GERAUD GINA LaMANTIA JENNIFER COLE AMBER GOECKE CHAFIKA LANDERS TARYLL CONNOLLY CAROLYN GOGOLIN DOROTHY LANDRY THAYNE CONRAD ADAM GOLDSTEIN DUSTIN LANGE DONNA CONROY BETH GRUNFELD ALIX LaSCOLA CAITLIN COUTHEN MICAELA HAIDLE JOE LEE MEGAN JOY COWART GREG HAITH APRIL LEMONS CYNDI CRIMMINS DEMETRIUS HALL KIMBERLY LENAGHAN vi DEDICATION TRICIA LISCIO COLLEEN O’DELL MARY SHAPIRO BETH LUDWIG DEBBIE OGILIVE BARBARA SHERRY CARY LUNA SARI ORLANSKY KEN SHIPBAUGH JEMINA MACHARRY DAVE OSTROW DAVE SHULER KATIE MAHAN DARCEY PALMER JESSICA SIEMINSKI LAURA MANN KRISTINA PARKER LEA SILVERMAN PATRICIA MARTINEZ TONI PAYNE AUTUMN SLAUGHTER CHRISTINA MASTROGIOVANNI JULIANNE PETERSON KRISTA SLAVICEK SONNY MATHARU MELISSA PFISTNER SCOTT SMITH TONY MATHIAS CANDACE PINATARO ADRIENNE SNOW BROOK MATTHEWS BELEN POLTORAK LEE SOLOMONIDES GEORGIA MAY ELIZABETH POPIELARZ BEN STEPHEN ALICIA MCAULIFFE MEGAN PRENDERGAST DAN SULLIVAN MASON McCARTNEY NICOLE PRICE JOHN SULLIVAN KAREN McFADYEN JILL PROMESSO LORI SULLIVAN BRIAN McGARRY LENNY ANN RAPER STEPHANIE SURFUS MICHELLE McGOVERN JOSH RASMUSSEN AMANDA SVEC IRENE McGUINNESS AMANDA RAY CHRISTINA TATE RYAN McHENRY SONYA REED SARAH THOMAS CRISTIN McMICHAEL RICHARD RESCH ABBY THORNBLADH KEVIN MEASELLE MARY RHODES KATY TOWNLEY RAY MEDINA BRAD RITTER ELIZABETH TREPKOWSKI KELLY MEIERHOFER DAN ROBERTSON TARA TRIPP MOLLY MEINERS MATT ROBINSON CAROLYN TWIST MATT MESAROS JENNIFER ROSEN JOE VIRZI SHALON MILLER DOROTHY ROSENE AMANDA VOLZ JAMI MINARD KELLEEN ROWE BRITNEY WALKER WILLIAM MINERICH RICH ROWE MADELEINE WATSON EMILY MITCHELL PEYTON ROYTEK BEN WEBER JILINE MIX SENG SAECHAO DANIEL WELLS JULIE MOREL STEVE SARTORI MARK WHEELER RAFAEL MORENO LYNDA SAX LIZ WILDES TRACY MORSE BOB SCANLON MICHELLE WILES OLIVIA MOUG MARCUS SCHERER BRIAN WILLIAMS DOLLY MUNIZ KIMBERLY SCHEYVING ERIN WILLIAMS TRICIA MURPHY HEIDI SCHICK (Miller) CINDY WILLIAMSON LAUREN MURROW BRAD SCHICK RACHEL WILLIS AMBER MYLLION (Parks) CHRIS SCHMIDT SIMON WONG LINDA NELSON DEBORAH SCHMIDT KIMBERLY WOODS LYNNE NICLAIR MOLLY SCHMIDT JACKIE WRIGHT BOB NISBET CORRINA SCHULTZ HEATHER WRUBLESKY BETSY NIXON WHITNEY SEAGO GEORGE YOUNG TOM NIXON CHRISTIANA SERLE MARY ZIMMERMANN LAURA NOAH MARTHA SERNAS KACIE ZIN vii This page intentionally left blank GLOSSARY G-7 Operating cash flow The amount of money generated by a company before the costs of financing and taxes are figured Penetration pricing A marketing pricing strategy to obtain dominant market share by using low price Primary stakeholders A high priority group that affects or is affected by the achievement of a firm’s objectives Operating leverage The impact of a specific change in sales volume on net operating income Performance The end result of activities, actual outcomes of a strategic management process Prime interest rate The rate of interest banks charge on their lowest-risk loans Operations strategy A functional strategy that determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, and the deployment of physical resources Performance appraisal system A system to systematically evaluate employee performance and promotion potential Opportunity A strategic factor considered when using the SWOT analysis Orchestrator A top manager who articulates the need for innovation, provides funding for innovating activities, creates incentives for middle managers to sponsor new ideas, and protects idea/product champions from suspicious or jealous executives Organization slack Unused resources within an organization Organizational analysis Internal scanning concerned with identifying an organization’s strengths and weaknesses Organizational learning theory A theory proposing that an organization adjusts to changes in the environment through the learning of its employees Organizational life cycle How organizations grow, develop, and eventually decline Organizational structure The formal setup of a business corporation’s value chain components in terms of work flow, communication channels, and hierarchy Output control A control that specifies what is to be accomplished by focusing on the end result of the behaviors through the use of objectives and performance targets Outside directors Members of a board of directors who are not employees of the board’s corporation; also called non–management directors Outsourcing A process in which resources are purchased from others through long-term contracts instead of being made within the company Parallel sourcing A process in which two suppliers are the sole suppliers of two different parts, but they are also backup suppliers for each other’s parts Pattern of influence A concept stating that influence in strategic management derives from a not-for-profit organization’s sources of revenue Pause/proceed with caution strategy A corporate strategy in which nothing new is attempted; an opportunity to rest before continuing a growth or retrenchment strategy Performance gap A performance gap exists when performance does not meet expectations Periodic statistical report Reports summarizing data on key factors such as the number of new customer contracts, volume of received orders, and productivity figures Phases of strategic management A set of four levels of development through which a firm generally evolves into strategic management Piracy The making and selling counterfeit copies of well-known name-brand products, especially software Planning mode A decision-making mode that involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy Policy A broad guideline for decision making that links the formulation of strategy with its implementation Political strategy A strategy to influence a corporation’s stakeholders Population ecology A theory that proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions Portfolio analysis An approach to corporate strategy in which top management views its product lines and business units as a series of investments from which it expects a profitable return Power distance (PD) The extent to which a society accepts an unequal distribution of influence in organizations Prediction markets A forecasting technique in which people make bets on the likelihood of a particular event taking place Pressure-cooker crisis A situation that exists when employees in collaborative organizations eventually grow emotionally and physically exhausted from the intensity of teamwork and the heavy pressure for innovative solutions Primary activity A manufacturing firm’s corporate value chain, including inbound logistics, operations process, outbound logistics, marketing and sales, and service Private nonprofit corporation A nongovernmental not-for-profit organization Privatization The selling of state-owned enterprises to private individuals Also the hiring of a private business to provide services previously offered by a state agency Procedures A list of sequential steps that describe in detail how a particular task or job is to be done Process innovation Improvement to the making and selling of current products Product champion A person who generates a new idea and supports it through many organizational obstacles Product development A marketing strategy in which a company or unit develops new products for existing markets or develops new products for new markets Product innovation The development of a new product or the improvement of an existing product’s performance Product life cycle A graph showing time plotted against sales of a product as it moves from introduction through growth and maturity to decline Product R&D Research and development concerned with product or product-packaging improvements Product/market evolution matrix A chart depicting products in terms of their competitive positions and their stages of product/ market evolution Product-group structure A structure of a multinational corporation that enables the company to introduce and manage a similar line of products around the world Production sharing The process of combining the higher labor skills and technology available in developed countries with the lower-cost labor available in developing countries Professional liquidator An individual called on by a bankruptcy court to close a firm and sell its assets Profit center A unit’s performance, measured in terms of the difference between revenues and expenditures Profit strategy A strategy that artificially supports profits by reducing investment and short-term discretionary expenditures Profitability ratios Ratios evaluating a company’s ability to make money over a period of time Profit-making firm A firm depending on revenues obtained from the sale of its goods G-8 GLOSSARY and services to customers, who typically pay for the costs and expenses of providing the product or service plus a profit Program A statement of the activities or steps needed to accomplish a single-use plan in strategy implementation Propitious niche A portion of a market that is so well suited to a firm’s internal and external environment that other corporations are not likely to challenge or dislodge it Public governmental unit or agency A kind of not-for-profit organization that is established by government or governmental agencies (such as welfare departments, prisons, and state universities) Public or collective good Goods that are freely available to all in a society Pull strategy A marketing strategy in which advertising pulls the products through the distribution channels Punctuated equilibrium A point at which a corporation makes a major change in its strategy after evolving slowly through a long period of stability Purchasing power parity (PPP) A measure of the cost, in dollars, of the U.S.-produced equivalent volume of goods that another nation’s economy produces Purchasing strategy A functional strategy that deals with obtaining the raw materials, parts, and supplies needed to perform the operations functions Push strategy A marketing strategy in which a large amount of money is spent on trade promotion in order to gain or hold shelf space in retail outlets Quality of work life A concept that emphasizes improving the human dimension of work to improve employee satisfaction and union relations Quasi-integration A type of vertical growth/ integration in which a company does not make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial control Question marks New products that have potential for success and need a lot of cash for development RFID A technology in which radio frequency identification tags containing product information is used to track goods through inventory and distribution channels R&D intensity A company’s spending on research and development as a percentage of sales revenue R&D mix The balance of basic, product, and process research and development R&D strategy A functional strategy that deals with product and process innovation Ratio analysis The calculation of ratios from data in financial statements to identify possible strengths or weaknesses Real options approach An approach to new project investment when the future is highly uncertain Red flag An indication of a serious underlying problem Red tape crisis A crisis that occurs when a corporation has grown too large and complex to be managed through formal programs Reengineering The radical redesign of business processes to achieve major gains in cost, service, or time Regional industry An industry in which multinational corporations primarily coordinate their activities within specific geographic areas of the world Relationship-based governance A government system perceived to be less transparent and have a higher degree of corruption Repatriation of profits The transfer of profits from a foreign subsidiary to a corporation’s headquarters Replicability The ability of competitors to duplicate resources and imitate another firm’s success Resources A company’s physical, human, and organizational assets that serve as the building blocks of a corporation Responsibility center A unit that is isolated so that it can be evaluated separately from the rest of the corporation Retired executive directors Past leaders of a company kept on the board of directors after leaving the company Retrenchment strategy Corporate strategies to reduce a company’s level of activities and to return it to profitability Return on equity (ROE) A measure of performance that is calculated by dividing net income by total equity Return on investment (ROI) A measure of performance that is calculated by dividing net income before taxes by total assets Revenue center A responsibility center in which production, usually in terms of unit or dollar sales, is measured without consideration of resource costs Reverse engineering Taking apart a competitor’s product in order to find out how it works Reverse stock split A stock split in which an investor’s shares are reduced for the same total amount of money Risk A measure of the probability that one strategy will be effective, the amount of assets the corporation must allocate to that strategy, and the length of time the assets will be unavailable Rule-based governance A governance system based on clearly stated rules and procedures Rules of thumb Approximations based not on research, but on years of practical experience Sarbanes-Oxley Act Legislation passed by the U.S Congress in 2002 to promote and formalize greater board independence and oversight Scenario box A tool for developing corporate scenarios in which historical data are used to make projections for generating pro forma financial statements Scenario writing A forecasting technique in which focused descriptions of different likely futures are presented in a narrative fashion Secondary stakeholders Lower-priority groups that affect or are affected by the achievement of a firm’s objectives Sell-out strategy A retrenchment option used when a company has a weak competitive position resulting in poor performance Separation A method of managing the culture of an acquired firm in which the two companies are structurally divided, without cultural exchange SFAS (Strategic Factors Analysis Summary) matrix A chart that summarizes an organization’s strategic factors by combining the external factors from an EFAS table with the internal factors from an IFAS table Shareholder value The present value of the anticipated future stream of cash flows from a business plus the value of the company if it were liquidated Short-term orientation The tendency of managers to consider only current tactical or operational issues and ignore strategic ones Simple structure A structure for new entrepreneurial firms in which the employees tend to be generalists and jacks-of-all-trades Six Sigma A statistically-based program developed to identify and improve a poorly performing process Skim pricing A marketing strategy in which a company charges a high price while a product is novel and competitors are few Small-business firm An independently owned and operated business that is not dominant in its field and that does not engage in innovative practices SO, ST, WO, WT strategies A series of possible business approaches based on combinations of opportunities, threats, strengths, and weaknesses Social capital The goodwill of key stakeholders, which can be used for competitive advantage Social entrepreneurship A business in which a not-for-profit organization starts a new venture to achieve social goals Social responsibility The ethical and discretionary responsibilities a corporation owes its stakeholders Societal environment Economic, technological, political-legal, and sociocultural environmental forces that not directly touch on GLOSSARY the short-run activities of an organization but influence its long-run decisions explanatory factors that link two or more time series together Sole sourcing Relying on only one supplier for a particular part STEEP analysis An approach to scanning the societal environment that examines sociocultural, technological, economic, ecological, and political-legal forces Also called PESTEL analysis Sources of innovation Drucker’s proposed seven sources of new ideas that should be monitored by those interested in starting entrepreneurial ventures Sponsor A department manager who recognizes the value of a new idea, helps obtain funding to develop the innovation, and facilitates the implementation of the innovation Stability strategy Corporate strategies to make no change to the company’s current direction or activities Staffing Human resource management priorities and use of personnel Stages of corporate development A pattern of structural development that corporations follow as they grow and expand Stages of international development The stages through which international corporations evolve in their relationships with widely dispersed geographic markets and the manner in which they structure their operations and programs Stages of new product development The stages of getting a new innovation into the marketplace Stage-gate process A method of managing new product development to increase the likelihood of launching new products quickly and successfully The process is a series of steps to move products through the six stages of new product development Staggered board A board on which directors serve terms of more than one year so that only a portion of the board of directors stands for election each year Stakeholder analysis The identification and evaluation of corporate stakeholders Stakeholder measure A method of keeping track of stakeholder concerns Stakeholder priority matrix A chart that categorizes stakeholders in terms of their interest in a corporation’s activities and their relative power to influence the corporation’s activities Steering control Measures of variables that influence future profitability Stewardship theory A theory proposing that executives tend to be more motivated to act in the best interests of the corporation than in their own self-interests Strategic alliance A partnership of two or more corporations or business units to achieve strategically significant objectives that are mutually beneficial Strategic audit A checklist of questions by area or issue that enables a systematic analysis of various corporate functions and activities It’s a type a management audit Strategic audit worksheet A tool used to analyze a case Strategic business unit (SBU) A division or group of divisions composed of independent product-market segments that are given primary authority for the management of their own functions Strategic choice The evaluation of strategies and selection of the best alternative Strategic choice perspective A theory that proposes that organizations adapt to a changing environment and have the opportunity and power to reshape their environment Strategic decision-making process An eight-step process that improves strategic decision making Strategic decisions Decisions that deal with the long-run future of an entire organization and are rare, consequential, and directive Strategic factors External and internal factors that determine the future of a corporation Strategic flexibility The ability to shift from one dominant strategy to another Strategic group A set of business units or firms that pursue similar strategies and have similar resources G-9 Strategic piggybacking The development of a new activity for a not-for-profit organization that would generate the funds needed to make up the difference between revenues and expenses Strategic planning staff A group of people charged with supporting both top management and business units in the strategic planning process Strategic R&D alliance A coalition through which a firm coordinates its research and development with another firm(s) to offset the huge costs of developing new technology Strategic rollup A means of consolidating a fragmented industry in which an entrepreneur acquires hundreds of owner-operated small businesses resulting in a large firm with economies of scale Strategic sweet spot A market niche in which a company is able to satisfy customers’ needs in a way that competitors cannot Strategic type A category of firms based on a common strategic orientation and a combination of structure, culture, and processes that are consistent with that strategy Strategic vision A description of what the company is capable of becoming Strategic window A unique market opportunity that is available only for a particular time Strategic-funds method An evaluation method that encourages executives to look at development expenses as being different from expenses required for current operations Strategies to avoid Strategies sometimes followed by managers who have made a poor analysis or lack creativity Strategy A comprehensive plan that states how a corporation will achieve its mission and objectives Strategy formulation Development of longrange plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses Strategy implementation A process by which strategies and policies are put into action through the development of programs, budgets, and procedures Stall point A point at which a company’s growth in sales and profits suddenly stops and becomes negative Strategic inflection point The period in an organization’s life in which a major change takes place in its environment and creates a new basis for competitive advantage Standard cost center A responsibility center that is primarily used to evaluate the performance of manufacturing facilities Strategic management A set of managerial decisions and actions that determine the longrun performance of a corporation Structure follows strategy The process through which changes in corporate strategy normally lead to changes in organizational structure Standard operating procedures Plans that detail the various activities that must be carried out to complete a corporation’s programs Star Market leader that is able to generate enough cash to maintain its high market share Strategic management model A rational, prescriptive planning model of the strategic management process including environmental scanning, strategy formulation, strategy implementation, and evaluation and control Stuck in the middle A situation in which a company or business unit has not achieved a generic competitive strategy and has no competitive advantage Statistical modeling A quantitative technique that attempts to discover causal or Strategic myopia The willingness to reject unfamiliar as well as negative information Strategy-culture compatibility The match between existing corporate culture and a new strategy to be implemented Suboptimization A phenomenon in which a unit optimizes its goal accomplishment to the detriment of the organization as a whole G-10 GLOSSARY Substages of small business development A set of five levels through which new ventures often develop Tipping point The point at which a slowly changing situation goes through a massive, rapid change Union of South American Nations An organization formed in 2008 to unite Mercosur and the Andean Community Substitute products Products that appear to be different but can satisfy the same need as other products Top management responsibilities Leadership tasks that involve getting things accomplished through and with others in order to meet the corporate objectives Utilitarian approach A theory that proposes that actions and plans should be judged by their consequences Supply-chain management The formation of networks for sourcing raw materials, manufacturing products or creating services, storing and distributing goods, and delivering goods or services to customers and consumers Support activity An activity that ensures that primary value-chain activities operate effectively and efficiently SWOT analysis Identification of strengths, weaknesses, opportunities, and threats that may be strategic factors for a specific company Synergy A concept that states that the whole is greater than the sum of its parts; that two units will achieve more together than they could separately Tacit knowledge Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation’s culture Tactic A short-term operating plan detailing how a strategy is to be implemented Takeover A hostile acquisition in which one firm purchases a majority interest in another firm’s stock Taper integration A type of vertical integration in which a firm internally produces less than half of its own requirements and buys the rest from outside suppliers Task environment The part of the business environment that includes the elements or groups that directly affect the corporation and, in turn, are affected by it Technological competence A corporation’s proficiency in managing research personnel and integrating their innovations into its dayto-day operations Technological discontinuity The displacement of one technology by another Technological follower A company that imitates the products of competitors Technological leader A company that pioneers an innovation Technology sourcing A make-or-buy decision that can be important in a firm’s R&D strategy Technology transfer The process of taking a new technology from the laboratory to the marketplace Total Quality Management (TQM) An operational philosophy that is committed to customer satisfaction and continuous improvement TOWS matrix A matrix that illustrates how external opportunities and threats facing a particular company can be matched with that company’s internal strengths and weaknesses to result in four sets of strategic alternatives Transaction cost economics A theory that proposes that vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction costs of buying goods on the open market become too great Transfer price A practice in which one unit can charge a transfer price for each product it sells to a different unit within a company Transferability The ability of competitors to gather the resources and capabilities necessary to support a competitive challenge Transformational leader A leader who causes change and movement in an organization by providing a strategic vision Transparent The speed with which other firms can understand the relationship of resources and capabilities supporting a successful firm’s strategy Trends in governance Current developments in corporate governance Trigger point The point at which a country has developed economically so that demand for a particular product or service is increasing rapidly Triggering event Something that acts as a stimulus for a change in strategy Turnaround specialist A manager who is brought into a weak company to salvage that company in a relatively attractive industry Turnaround strategy A plan that emphasizes the improvement of operational efficiency when a corporation’s problems are pervasive but not yet critical Turnkey operation Contracts for the construction of operating facilities in exchange for a fee Time to market The time from inception to profitability of a new product Turnover A term used by European firms to refer to sales revenue It also refers to the amount of time needed to sell inventory Timing tactics Tactics that determines when a business will enter a market with a new product Uncertainty avoidance (UA) The extent to which a society feels threatened by uncertain and ambiguous situations Value chain A linked set of value-creating activities that begins with basic raw materials coming from suppliers and ends with distributors getting the final goods into the hands of the ultimate consumer Value-chain partnership A strategic alliance in which one company or unit forms a long-term arrangement with a key supplier or distributor for mutual advantage Value disciplines An approach to evaluating a competitor in terms of product leadership, operational excellence, and customer intimacy Vertical growth A corporate growth strategy in which a firm takes over a function previously provided by a supplier or distributor Vertical integration The degree to which a firm operates in multiple locations on an industry’s value chain from extracting raw materials to retailing Virtual organization An organizational structure that is composed of a series of project groups or collaborations linked by changing nonhierarchical, cobweb-like networks Virtual team A group of geographically and/or organizationally dispersed coworkers that are assembled using a combination of telecommunications and information technologies to accomplish an organizational task Vision A view of what management thinks an organization should become VRIO framework Barney’s proposed analysis to evaluate a firm’s key resources in terms of value, rareness, imitability, and organization Web 2.0 A term used to describe the evolution of the Internet into wikis, blogs, RSS, social networks, podcasts, and mash-ups Weighted-factor method A method that is appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another Whistle-blower An individual who reports to authorities incidents of questionable organizational practices World Trade Organization A forum for governments to negotiate trade agreements and settle trade disputes Z-value A formula that combines five ratios by weighting them according to their importance to a corporation’s financial strength to predict the likelihood of bankruptcy NOTE: This glossary contains terms used in the twelve chapters of this textbook plus the three additional chapters provided on the publisher’s Web site to buyers of this book NAME INDEX 3Com, 240 3M, 21, 47, 125, 270, 290, 294, 333, 355 60 Minutes, 346 A&W, 198 A C Nielsen Co., 121 Abbott Laboratories, 312 Accenture, 360 Ace Hardware, 246 Addidas, 111 Adelphia Communications, 55 Admiral, 315 Adobe, 354 Aerospatiale, 197 AES, 370 AFL-CIO, 58 AIM Global, 348 Airbus Industrie, 111, 170, 197, 214, 254 Ajax Continental, 316 Alamo, 186 Albertson’s, 188 Alcatel-Alsthorn NV, 150 Alcoa, 322 Aldi, 186 Alexander, M., 226, 227 All-China Federation of Trade Unions, 105 Allen, J., 204 Allied Corp 207 Allied Signal, 208, 290, 306 Allport-Vernon-Lindzey Study of Values, 80 Altman, E.I., 371 Amazon.com, 26, 61, 143, 230 America West, 211 America’s Most Admired Companies, 355 American Airlines, 8, 19, 332 American Customer Satisfaction Index (ACSI), 44, 332 American Cyanamid, 294, 295 American Express, 240, 355 American Family Association (AFA), 78 American Hospital Supply (AHS), 162 American Management Assoc., 248, 333 American Productivity & Quality Center (APQC), 344 American Society for Industrial Security, 121 American Society of Training and Development, 303 Americans for Balanced Energy Choices, 322 Amgen, 25 Amnesty International, 59 Amoco, 145 Andean Community, 8, Anheuser-Busch, 53, 143, 153, 194, 196, 212, 213, 245, 343 Aossey, B., 174 Apple, 60, 109, 112, 139, 187, 194, 230, 239, 270, 283, 343, 347, 355 Applebee’s, 304 Apria Healthcare, 47 Arcelor, 278 Archer Daniels Midland (ADM), 195 Arctic Cat, 279, 280 Arctic Council, 96 Aristotle, 257 Arm & Hammer, 180, 238 Arthur D Little Inc., 115 Asea Brown Boveri (ABB), 290, 294 Ashridge Strategic Management Centre, 18 Association of Southeast Asian Nations (ASEAN), 8, 9, 113 Astra Zenica, 188 AT&T, 240, 307, 316 Automotive Resources, 346 Avis, 300 Avnet, Inc., 123 Avon Co., 27, 121, 138, 247 Baan, 162, 347 Baby Fresh Organic Baby Foods, 287 Badaracco, J., 86 Bain & Co., 7, 217, 248, 306, 340, 344 Bajal Auto, 142 Baldor Electric Company, 242 Baldwin Locomotive, 98 Baldwin-United, 284 Ballmer, S., 60 Banadex, 90 Banbury, C., 296 Banerjee, P., 361 Bank of America, 11 Bank of Montreal, 47 Bank One, 270 Bankers Trust of New York, 306, 309 Banking Act of 1933, 52 Barclays, 370 Barnevik, P., 150 Barney, J B., 195 Baxter Healthcare, 134 Bechtel Group Inc., 27 Beijing Olympics, 22 Bell South, 240, 341 Ben & Jerry’s Ice Cream, 75 Benetton, 287 Bennigan’s Grill & Tavern, 220 Berkshire Hathaway, 215, 355 Berle, A A., 50 Bert, A., 272 Best Buy, 119, 144, 209, 270 Best Western, 47 Bezos, J., 26, 61 Bharti Enterprises, 213 Bharti-Mart, 213 Bice, A., 79 Big Idea Group, 242 Bill of Rights, 85 Birkinshaw, J M., 228 Bisquick, 225 Black & Decker, 198 Black, J S., 310 Blank, A., 42 Bloom, R., 160 BMW, 21, 149, 152, 158, 187, 213, 355 Body Shop, 59, 60 Boeing Company, 21, 111, 159, 170, 214, 248, 316 Bombardier, 214, 215, 288 Borders, 230 Bosch Appliances, 229 Bosch-Siemens, 191 Bose Corporation, 244 Boston Consulting Group, 5, 221 Boston University, 360 Boveri AG, 150 BP Amoco, 145 Brabeck-Letmathe, P., 295 Brady Bunch, 105 Branson, R., 60 Brastemp, 243 Brigham, L., 94 Bristol-Myers Squibb, 210, 306 British Aerospace, 197 British Airways, 8, 19, 125 British Petroleum (BP), 13, 145, 209, 371 Brynjolfsson, E., 274 Budweiser, 196, 212, 346 Buffet, W., 215 Burger King, 116 Burns, L., 222 Busch Gardens, 104 Business Environment Risk Index, 115 Business Roundtable Institute for Corporate Ethics, 83 Business Software Alliance, 246 Business Week, 11, 42, 63, 302 Byron, W., 72 Cadbury Cocoa Partnership, 276 Cadbury Report, 56 Cadbury Schweppes, 18, 19, 276 Cadillac, 22 CAFTA, Calhoun, D., Callaway, 346 Campbell, A., 18, 226, 227, 278 Canadair, 214 Canary Wharf, 370 CANENA, 345 Canon, 84, 211 Carbon Trust, 11, 340 Carbonrally.com, 100 Carrefour, 211, 213 I-1 I-2 NAME INDEX Carroll, A., 72, 73 Carroll’s Foods, 208, 209 Case, 102 Casey’s General Store, 258 Castaño, C., 90 Caterpillar, 152, 165, 229, 270, 289, 322 Cavanagh, G F., 85 Celta, 243 Census of Manufacturing, 318 Center for Energy & Economic Development (CEED), 322 Center for Financial Research & Analysis (DFRA), 364 Central American Free Trade Agreement (CAFTA), Certified Emissions Reducer (CER), 370 Chandler, A., 14, 279, 283 Chang, S., 294 Charan, R., 341 Charmin, 188 Checkers Restaurants, 364 Cheerios, 70, 111 Chevrolet Volt, 222 Chevron, 254 Chiquita Brands International Inc., 90 Chiscos, 346 Chouinard, Y., 187 Chow, D., 346 Christensen, C M., 156 Chrysler Corp., 52, 159, 196, 241, 244, 259, 322, 334 Chung, W., Church & Dwight Co., 180, 236, 238 Circuit City, 144, 220 Cisco Systems, 21, 55, 73, 122, 208, 331, 346, 355 Citibank, 370 Citicorp, 306 Citigroup, 11 Claussen, E., Clayton Act, 52 Clinton, H., 125 Clorox Company, 195, 198 Coca-Cola, 11, 18, 152, 161, 194, 245, 338, 339, 347 Colgate-Palmolive, 236, 238 Colt’s Manufacturing, 284 Combined Code of Conduct, 56 Comcast, 57 Compaq, 112, 216, 360, 361 ConAgra, 257 Cone, Inc., 74 Conference Board, 74 ConocoPhillips, 10 Construcciones Aeronáuticas, 197 Converse, 111 Cooper & Lybrand, 196 Cooper, C 80 Corning, Inc., 291, 303 Corporate Library, 53, 56 Cosby Show, 105 Costco Wholesale, 270, 355 Craigslist, 260 Cramer, J., 23 Crane, A., 75 Credit Suisse, 370 Crest, 211 Crest Whitestrips, 227 Cromme Commission, 56 CSX Corp., 216 Cummins, Inc., 229 CVS, 270 D’Aveni, R., 13, 118, 191, 192 Daft, D., 161 Daimler-Benz Aerospace, 197, 270 DaimlerChrysler, 314 Daksh eServices Ltd., 248 Dale, K., 244 Danone, 245 Dashboard software, 332 Davis, S M., 286 Dean Foods Co., 241 Dean, H., 241 Deere and Co., 188, 274, 338 Defining Moments, 86 Degeorge, 82 Delawder, T., 333 Delay, T., 340 Dell Computer, 23, 105, 110, 112, 133, 141, 143, 163, 186, 191, 217, 244, 248, 355, 360 Dell, M., 23, 141, 217 Deloitte & Touche Consulting Group, 107 Delphi Corp., 220, 243 Delta Airlines, 211, 219, 278 Delta Small Car Program, 150 Deming, W E., 244 DHL, 200 Diligence Inc., 121 Disney, W., 143 Dixon, L., 244 Dodge Viper, 259 Doha Round, 103 Dole Food, 348 Donahoe, J., 260 Dow Chemical, 290 Dow Corning, 134 Dow Jones & Company, 75, 76 Dow Jones Sustainability Index (DJSI), 11, 76 Dr Pepper/Snapple, 19 Draghi Law of l998, 56 Drauch, D., 222 Dreamliner, 248 Duke Energy, 322 DuPont, 63, 143, 223, 279, 280, 282, 333 Durant, W., 283 Eastern Airlines, 250, 284 Eastman Chemical Co., 341 Eastman Kodak, 98, 284, 308 Eaton Corporation, 352 eBay, 143, 260, 348 Echeverria, J 11 Eckberg, J., 321 Eco-Management and Audit Regulations, 59 Economic Espionage Act in 1996, 122 Economist, 122 Economist Intelligence Unit, 74, 115, 197 Ecopods, 86 Eisner, M., 62 Electrolux, 51, 125, 191, 310, 371 Electronic Data Systems (EDS), 360 Eli Lilly, 125 Elion Chemical, 245 Elliot, J R., 104 Ellison, L., 207, 280, 281 Emerson Electric, 53 Encyclopaedia Britannica Inc., 26 Energy Star, 229 Enhanced Tracker, 342 Enron, 44, 45, 55, 79, 80, 82 Ensign, P.C., 228 Enterprise Rent-A-Car, 300 Environics, 10 Environmental Protection Agency, 100 Equitable Life, 46 Erhardt, W., 302 Ericsson, 211 Eskew, M., 125 Estée Lauder, 104 Ethics Resource Center, 79 European Aeronautic & Space Co (EADS), 170 European Union (EU), 8, 9, 10, 104, 113, 119, 370 Excel, 111, 251 Exxon, 21 Facebook, 162 Fairfax, 121 Fazio, L., 79 Federated Department Stores, 278 FedEx, 4, 22, 138, 162, 208, 247, 342, 348, 355 Ferari, M., 144 Fiat, 213, 214 Fiat Group, 296 Findex, 121 Finsbury Data Services, 121 Fiorina, C., 62, 360 First Boston, 240 Folgers, 198 Footprint Chronicles, 187 Forbes 100, Ford Motor Co., 78, 136, 144, 145, 160, 244, 248, 274, 283, 290, 308, 333 Ford, H, 144, 208, 283 Fortune, 70, 355 Foster, R., 155 NAME INDEX Frank J Zamboni & Co., 179 Fredrickson, J., 29, 30 Freeman, K., 322 Freightliner, 187 Friedman, M., 72, 73, 74 Friedman, T., Friends of the Earth, 59 Frost, T S., 115, 228 Fujitsu Ltd., 250 Fuld-Gilad-Herring Academy of Competitive Intelligence, 108 Galbraith, 145 Gap International, 84 Gartner Group, 159 Gaskell, J., 144 Gates, W., 60, 118 Gateway, 105, 112 GE Capital International Services, 248 GE Energy Financial Services, 370 Genentech, 25, 55, 354 General Agreement on Tariffs and Trade (GATT), 103 General Electric (GE), 2, 5, 6, 8, 21, 22, 27, 47, 98, 125, 138, 152, 159, 196, 211, 215, 219, 223, 227, 245, 247, 248, 258, 282, 290, 304, 306, 307, 308, 322, 339, 343, 354, 355, 370 General Foods, 148 General Mills, 70, 72, 111, 121, 225 General Motors (GM), 22, 60, 98, 142, 150, 196, 219, 222, 243, 248, 257, 260, 279, 280, 282, 283, 285, 308, 310, 311, 313, 322, 333, 339, 349, 360 George Washington University, 102 Georgetown University’s Environmental Law & Policy Institute, 11 Georgia-Pacific, 246 Gerstner, L., 26, 60 Ghosn, C., 315 Gilad, 123, 133 Gillette, 26, 133, 140, 141, 142, 151, 193, 208, 278, 341 Glass, Lewis & Co., 55 Global Crossing, 45, 55 Goizueta, R., 338 Goldman Sachs Group, 11, 355 Goodyear Tire & Rubber, 160, 243 Google, 17, 57, 125, 143, 149, 355 Goold, M., 226, 227, 278 Graduate Management Admission Council, 79 Graduate Management Admission Test (GMAT), 79 Grant, R M., 27 Grantham, C., 159 Green Book, 59 Greenpeace, 59, 77 Gregersen, H B., 310 Greiner, L E., 280, 283 Gretzky, W., 127 Grey-Wheelright, 323 Group Danone, 295 Grove, A., 24, 77, 113, 254 Hambrick, D., 29, 30 Hamilton Beach, 198 Hamilton, R D., 333 Hammer, M., 289 Hardee’s, 116 Harley-Davidson, 290, 309 Harper Collins, 230 Harrigan, K R., 209 Harris Interactive, 70 Harris Poll, 75 Hay Group, 355 Hayes Microcomputer Products, 285 Hayes, D., 285 HCL Technologies, 246 Head & Shoulders, 211, 346 Healthy Choice, 257 Heartland Institute, 322 Hegel, 257 Heilmeier, G., 156 Heineken, 163, 181 Herd, T., 272 Hershey Foods, 19, 308, 347 Hertz, 300 Hesse, D., 109 Hewitt Associates, 314 Hewlett, W., 360 Hewlett-Packard, 13, 62, 84, 134, 143, 149, 158, 191, 206, 211, 216, 246, 284, 333, 260, 361 Hofstede, G., 319, 320 Home Café, 198 Home Depot, 22, 42, 200, 239, 277, 285, 312, 314, 347 Homecoming Financial, 79 Honda, 139, 189, 213 Honeywell, 244 Hoover, 219 Hoover, R., 291, 303 Hoover’s Online, 12, 121 Hovis, J., 123 HSBC, 370 Huggies, 193 Hurricane Katrina, 11 Hurt, M., 360 Hypercompetition, 13, 191 IBM, 8, 26, 27, 107, 112, 115, 117, 133, 142, 58, 197, 213, 223, 242, 244, 247, 250, 280, 307, 310, 354, 255, 360 ImClone, 210 Immelt, J., 2, 308 Impacts of a Warming Arctic, 94 In Search of Excellence, 352 In the Garden, 391 I-3 InBev, 213 Indian Auto Show, 136 Infrasource Services, 57 Ingersoll-Rand, 244 Innovator’s Dilemma, 156 Institutional Shareholder Services (ISS), 56 Intel, 21, 77, 113, 140, 152, 224, 241, 254, 339 Intercontinental Hotels, 251 Intergovernmental Panel on Climate Change (IPCC), 12 International Accounting Standards Board, 345 International Electrotechnical Commission (IEC), 345 International Energy Agency, 10 International Harvester, 284, 347 International House of Pancakes (IHOP), 304 International Monetary Fund, 101 International Organization for Standardization (ISO), 345 International Panel on Climate Change, 128 International Paper, 212 International Standards Assoc., 333 Internet Explorer, 143, 193 Interstate Bakeries, 104 Intrade.com, 125 Investor Responsibility Research Center, 57 Iowa State University, 274 ISDC, 346 Iverson, K., 328 Ivory, 152 J D Edwards, 162, 347 J P Morgan Chase & Co., 249 Jaguar, 136, 219 JetBlue, 170 Jewel, 188 Jobs, S., 60, 230, 283 John Deere, 102, 239 Johns-Manville, 284 Johnson & Johnson (J&J), 78, 84, 133, 228, 259, 355 Johnson, L., 274 Jones Surplus, 316 Jones, M., 277 Joyce, W., JPMorgan Chase, 11 Jung, C., 323 Kant, I 85 Kaplan, R S., 339 KappaWest, 134 Kearney, A T., 272 Kellogg Co., 239 Kenworth, 187 KeraVision, Inc., 341 KFC, 174, 198 Kimberly Clark, 134, 193, 228, 240 King, S., 230 I-4 NAME INDEX Kinko’s 208 Kirin, 196 KLD Broad Market Social Index, 11 Kleenex, 152 Kleiner Perkins, 52 K-Mart, 189, 284 Knight, P., 60 Kohlberg, L., 83 Korn/Ferry International, 51, 341 Koutsky, J., 274 Kraft Foods,18, 19, 295, 364 Kramer, M R., 74 Kroger, 270 Kroll, Inc., 121 Krups, 198 Kugler, R., 24 Kurtzman Group, 81 Kvinnsland, S., 321 Kyoto Protocol, 10, 370 L L Bean, 344 L’Oreal, 59 Labatt, 196 Lada, 214 Lafley, A., 242 Land, E., 283 Land Rover, 136, 219 Langone, K., 42 Larsen, R., 259 Lawrence, P R., 286 Lay, K., 80 Leadership Development Center, 307 Lear, 243 Learjet, 214 Leder, M., 365 LEGO, 163 Lehman Brothers, 370 Lemon Fresh Comet, 195 Lenovo Group, 223 Levi Strauss & Co., 75, 84, 125, 270 Levinson, A., 25 Lewis, J., 316 LexisNexis, 121 Lincoln Electric, 117 Linebarger, T., 229 Linux, 242, Livingston, R., 247 Loarie, T., 341 Lockheed Martin, 134, 247 Loewen Group, 190 Logitech, 294 Long John Silver’s, 198 Long Range Planning, 18 Lorange, P., 198 Lorsch, J., 57 Lovins, A., 161 Lutz, B., 60, 222, 259 MacDonald, T., 272 Macy’s Department Stores, 278, 284 Mad Money, 23 Magic Chef, 20 Malik, O., 230 Malmendier, U., 61 Management Tools and Trends, Manco, Inc., 344 Marchionne, S., 296 Marcus, B., 42 Margolis, J D., 74 Market Research.com, 121 Marlboro, 346 Marriott, 246 Marsh Center for Risk Insights, 245 Mary Kay Corp., 121 Mary Poppins, 143 Maslow, A., 83 Matsushita Electric Industrial Corporation (MEI), 150 Matsushita, K., 150 Mattel, 242, 247 Matten, D., 75 MaxiShips, 247 May Company, 278 Maybelline, 104 Maytag Corp., 76, 127, 139, 165, 177, 183, 191, 197, 213, 219, 241, 315, 373, 376, 383 McCain, J., 125 McDonald’s, 74, 104, 116, 152, 174, 186, 190, 246, 247, 277, 306 McDonnell Douglas, 170, 316 McKesson, 322 McKinsey & Co., 6, 8, 46, 47, 57, 74, 120, 155, 162, 176, 216, 220, 223, 256, 306, 314, 340, 375 McLeodUSA, 195 McNealy, S., 283 Mead Corporation, 47 Means, G C., 50 Medtronic, 47, 84 Mercedes Benz, 152 Mercer Delta Consulting, 56 Merck, 188 Mercosur (Mercosul), 8, 9, 112 Merrill Lynch, 348 Mesa Airlines, 211 Microsoft, 8, 20, 60, 111, 118, 121, 125, 143, 152, 180, 193, 194, 207, 242, 306, 335, 339, 347, 355 Midamar Corp., 174, 188 Miles, R E., 117, 288 Miller Brewing Co., 8, 181 Millstone, 198 Mintzberg, H., 23, 26, 259 Mission Point Capital Partners, 370 MIT, 248 Mitsubishi Motors, 314 Mittal Steel, 278 Modelo, 196 Montgomery Ward, Inc., 284, 304 Moody’s, 56 Morgan Motor Car Co., 188 Morgan Stanley, 370 Morningstar, 56 Mossville Engine Center, 289 Motorola, 84, 141, 159, 211, 303 Movie Gallery, 102 MphasiS, 360 Mr Coffee, 198 Mr Donut, 238 MS-DOS, 111 Mullen, D., 348 Mulva, J., 10 Muralidharan, R., 333 Myers-Briggs, 323 MySpace, 162 NAFTA, 8, 113 Nardelli, R., 42, 277, 314 NASDAQ, 49, 55, 57 National Association of Corporate Directors, 45 National Car Rental, 300 National Nanotechnology Infrastructure Network, 242 National Research Center, 332 Nature Conservancy, 100 NCR Corp., 159, 316, 360 Nestlé, 18, 151, 245, 294, 295 Netscape, 143, 193 Netsuite, 332 New Balance, 111 New York Stock Exchange, 49, 55, 57 Newman’s Own, 84 Newport News Shipbuilding, 17 News Corp, 370 Nickelodeon, 188 Nike, 8, 86, 111, 187, 204, 241, 287, 306 Nissan Motor Company, 142, 213, 278, 315 Nohria, N., Nokia, 152 Noorda, R., 200 Nordstrom, 149, 258, 355 North America Index, 76 Northern Telecom, 159 Northwest Airlines, 52, 211, 219, 278 Norton, D P., 339 Novartis, 25 Novell, 200 Nucor Corporation, 149, 328 NutraSweet, 112 Nutt, P., 257 O’Reilly, T., 230 Obama, B., 125 Ocean Spray, 238 Ocean Tomo, 241 Office Depot, 332 Ohio State University, 346 Olay, 211 Olive Garden, 116 Olivetti, 223 NAME INDEX Olson, M., 270, 272 Omidyar, P., 260 Open Compliance and Ethics Group, 84 Open Standards Benchmarking Collaborative, 344 Oppenheimer, P., 239 Oracle Corp., 121, 162, 207, 278, 280, 282, 347 Orbitz, 57 Orion Pictures, 284 Orphagenix, 188 Owens-Corning, 347 P F Chang’s, 190 Pacar Inc., 187 Pacific Gas and Electricity, 125 Packard, D., 360 Palm, 194 Pampers, 193, 211 Pan Am Building, 251 Pan American Airlines, 250, 251, 284 Panasonic, 150, 223 Panda Restaurant Group, 190 Pascal, 11 Patagonia, 84, 187 Patel, 82 PayPal, 260 Pelino, D., 307 People’s Car, 136, 142 PeopleShareNet, 13 PeopleSoft, 162, 207, 347 PepsiCo., 18, 60, 152, 306, 344, 370 Perez, A., 284 Perot, R., 360, 361 Peterbilt, 187 Peters, T J., 352 Pew Center on Global Climate Change, Pfizer, 47, 282, 306 Pharmacia AB, 281, 321 Pharmacia Upjohn, 154 Philips, 139, 294 Pitney Bowes, 55 Pizza Hut, 174, 190, 198, 314 Plato, 257 PlayStation 3, 197 Pohang Iron & Steel Co Ltd (POSCO), 56 Polaroid Corporation, 250, 283 Porter, M.E., 10, 74, 99, 110, 112, 113, 114, 123, 133, 134, 140, 146, 189, 192, 194 Potlach Corporation, 187 PowerShip, 247 Prahalad, C K., 294 Preda Code of Conduct, 56 PriceWaterhouseCoopers, 121, 341, 360 PRISM software, 348 Prius, 222 Procter & Gamble (P&G), 20, 24, 75, 107, 111, 117, 121, 141, 145, 161, 163, 168, 163, 193, 195, 198, 208, 211, 227, 228, 236, 238, 242, 278, 280, 287, 305, 306, 347, 355 Project Fusion, 278 Project GLOBE, 320 Quaker Oats, 370 Quinn, J B., 26 Qwest, 45, 55, 195 Radio Shack, 341 RAND Corp., 124 Random House, 230 Raytheon, 341 RCA Labs, 156 RE/MAX A-1 Best Realtors, 79 Reebok, 8, 111, 204, 287 Reinemund, S., 60 Reinhardt, F L., 10 Renault, 142, 214, 278, 315 Renshaw, A A., 274 Rensi, E., 247 Rent.com, 260 RHR International, 307 Richardson, B., 158 Riding the Bullet, 230 Rituxan, 25 River Rouge plant, 208 Rivers, R., 24 RJR Nabisco, 339 Roadway Logistics, 246 Roberson, B., Roberts, B., 57 Rockwell Aerospace, 170 Rockwell Collins, 154 Rocky Mountain Institute, 161 Roddick, A., 59, 60 Roj, Y, 56 Rolm and Haas, 47 Roman Catholic Church, 257 Romanos, J., 230 Rosenkrans, W., 133 Ross, D., 302 Royal Dutch Shell, 125, 209 RSD, 197 Rubbermaid, 117, 344 Rumelt, R., 214 Ryall, M D., 120 S C Johnson, 84 Safeguard, 346 Safeway, 188, 270 SAM (Sustainable Asset Management AG) Research, 76 SAM (Sustainable Asset Management Group, 11 SAP AG, 162, 207, 347 Sarason, Y., 296 Sarbanes-Oxley Act, 55, 56, 84 Saturn, 313 Savage, R., 352 SBC Communications, 53 I-5 Schilit, H., 364 Schlitz Brewing Co., 51 Schroeder, K., 100 Scientific-Atlanta Inc., 208 ScoreTop.com, 79 Scott Paper, 228 Sears Manufacturing Co., 274 Sears Roebuck and Co., 105, 119, 279, 295, 307, 350 Securities and Exchange Commission (lSEC), 49, 55, 57, 58 Security Outsources Solutions, 121 Seidenberg, I., 61 Service Corporation International, 47, 190 ShareNet, 13 Shea, C., 70 Sherwin-Williams Co., 209 Shopping.com, 260 Shorebank, 84 Siemens, 13, 150, 211 Signal Companies, 207 Simon & Schuster, 210 Simpson Industries, 219 Singer-Loomis, 323 Skoll, J., 260 Skype, 260 Sloan, A P., 257, 279 SmartyPig, 143, 144 Smith & Wesson, 238 Smithfield Foods, 208, 209 Smucker, 84 Snow, C C 117, 288 Society of Competitive Intelligence Professionals (SCIP), 122, 133 Sony Corp., 84, 143, 194, 197, 218 South African Breweries (SAB), 8, 181 Southwest Airlines, 21, 143, 170, 186, 195, 332, 355 Sparks, 81 Sprint Nextel, 109 SSA, 347 Stanberry, T., 144 Standard & Poor’s (S&P), 56 Standard Oil, 279, 307 Stanley Works, 347 Staples, 19, 190 Starbucks, 75, 212, 308, 355 Steak & Ale, 220 Steinway, 194 Stern Stewart & Co., 338 Stewart Enterprises, 190 Stewart, J., 304 Stringer, H., 218 Structured Query Language (SQL), 280 Stuart, L S., 306 Stuart, S., 51 StubHub, 260 Stumbleupon, 260 Sullivan, J., 115, 160 Sun Microsystems, 283 Sunbeam, 364 I-6 NAME INDEX Super Size Me, 74 Surowiecki, J., 124 Sustainability Yearbook, 11 SWD Inc., 333 Swiss Re, 10 Taco Bell, 314 Taisei Corp., 27 Target, 27, 47, 189, 270, 341, 355 Tata Consultancy Services, 360 Tata Group, 255 Tata Motors, 136, 142, 219 Tate, G., 61 Taxin, G., 55 Taylor, A., 399 Technic, 150 Tennessee Valley Authority, 254 Tesco, 211, 213, 348 Tesla Motors, 10 Texas Gas Resources, 216 Texas Instruments, 47 Textron, 354 TIAA-CREF, 51 Tide, 111, 211, 346 Tilt, 81 Timberland, 200 Time, 127 Timex, 186 Toman Corp., 225 Toro, 215 Toshiba, 197, 211 Tower Records, 102 Toyota Motor, 152, 163, 189, 213, 222, 290, 355 Toys “R” Us, 270 Trading Process Network, 247 Trans World Airlines (TWA), 250 Treacy, M 123, 133, 135 Trend Micro, 294 Tricon Global Restaurants, 314 Trident Group, 121 Tyco, 45, 55, 79, 80 U.S Airways, 211 U.S Airways Express, 211 U.S Arctic Research Commission, 94 U.S Climate Action Partnership (USCAP), 322 U.S Constitution, 85 U.S Department of Defense, 348 U.S Department of Energy (DOE), 245 U.S Environmental Protection Agency, 260 U.S False Claims Act, 84 U.S Internal Revenue Service, 345 U.S Securities and Exchange Commission (SEC), 48, 122 U.S Steel, 56 U.S West, 195 Unilever, 24, 236, 238, 245, 295, 310 Union Carbide, 246 Union of South American Nations, United Airlines (UAL), 52, 211, 250 United Auto Workers, 160 United Distillers, 125 United Express, 211 United Parcel Service (UPS), 19, 22, 125, 160, 200, 247, 355 United Self Defense Forces of Columbia (AUC), 90 United States Chamber of Commerce, 121 United States Index, 76 United Steel Workers, 160 University of Michigan, 294 University of Southern California, 56 University of the Arctic, 97 Upjohn Pharmaceuticals, 321 Urschel Laboratories, 239 Van Alstyne, M 274 Van Bever, D., 270, 272 Van Der Linde, B., 334 VCA Antech, 190 Venktraman, N V., 360 Verizon Communications, 61 Verry, S., 270, 272 Vidal Sassoon, 346 Virgin, 60 Volkswagen, 347 Volvo, 270 W&T Offshore, 57 Wagoner, R., 222 Wake Forest University, 322 Walgreen Co., 104, 270 Wall Street Journal, 70 Wal-Mart, 11, 143, 1613, 186, 189, 211, 212, 213, 218, 242, 258, 270, 344, 347, 348, 355 Walsh, J P., 74 Walsh K., 370 Walt Disney Co., 62, 152, 187, 251, 283 Warner-Lambert, 27, 282 Waterman, R H., 352 Watkins, S., 80, 82 Web 2.0, 230 WebFountain, 107 Welch, J., 227, 258, 290, 308 West Bank, 144 Westinghouse, 196 Weyerhauser, 145 Wheaties, 70 Wheeling-Pittsburgh Steel, 52, 284 Whirlpool Corp., 47, 127, 139, 177, 191, 219, 240, 243, 247, 315, 347 Whisper, 211 Whitman, M., 260, 348 Who Wants to Be a Millionaire?, 251 Wiersema, F., 123, 33, 135 Wiersema, M., 62 Wilburn, N., 287 Wilburn, R., 287 Williamson, O E., 210 Windows, 111, 118, 193 Wisdom of Crowds, 124 Woods, T., 204 Word, 111 Work Design Collaborative, 159 World Bank, 101 World Custom Organization, 346 World Index, 76 World is Flat, World Knowledge, 230 World Political Risk Forecasts, 115 World Trade Organization (WTO), 103, 112 WorldCom, 44, 45, 55, 79, 80 Wrigley, 18 Xerox, 139, 274, 290, 307, 308, 309, 344 Yahoo!, 370 Yamaha, 194 Yankelovich Partners, 366 Young, S., 310 Yum! Brands, 198, 212, 314 Zabriskie, 321 Zamboni, F., 179 Zimmer Holdings, 104 Zook, C 204 SUBJECT INDEX 10-K form, 366 10-Q form, 366 14-A form, 366 360-degree appraisal, 246 80/20 rule, 351 Accounting, forensic, 364 Acquisition, 208, 213 Action plan, 316, 317 Activity-based costing (ABC), 334 Activity ratios, 366 Adaptive mode, 26 Advanced Manufacturing Technology (AMT), 242 Affiliated directors, 49 Agency theory, 48, 50 AIDS, 104 Analysis, financial, 366 Analysis, industry, 110 Analysis, organizational, 138 Analysis, portfolio, 220 Analytical portfolio manager, 304 Analyzers, 117 Annual report, 366 Appraisal system, 307 Arms race, 250 Assessment centers, 307 Assets, 138 Assimilation, 315 Assumptions, 123 Autonomous (self-managing) work teams, 159 Backward integration, 208 Bad service excuses, 277 Balanced scorecard, 339 Bankruptcy formula, 371 Bankruptcy, 219 Bargaining power of buyers, 112 Bargaining power of suppliers, 113 Barrier, entry, 111 Basic R&D, 154 Behavior controls, 332 Behavior substitution, 350 Benchmarking, 344 Blind spot analysis, 133 Board of directors, 45 Board of directors, committees, 54 Board of directors, continuum, 46, 47 Board of directors, election, 53 Board of directors, evaluation of, 341 Board of directors, members, 48 Board of directors, nomination, 53 Board of directors, organization, 54 Board of directors, responsibilities, 45 Board of directors, staggered, 53 Books, electronic, 230 BOT concept (Build Operate Transfer), 214 Brainstorming, 124 Brand management, 287 Brand, 152 Brand, corporate, 152 BRIC countries, 101 Budget, 22, 276 Budget analysis, 344 Business ethics, 79 Business intelligence, 120 Business model, 142 Business policy, Business strategy, 19, 183 Buyers, bargaining power, 112 Bypass attack, 194 CAD/CAM, 158, 242 Capabilities, 138 Capabilities, dynamic, 138, 191 Cap-and-trade, 370 Capital budgeting, 153 Capital, social, 74 Captive company, 211 Captive company strategy, 219 Carbon footprint, 99, 100 Carbon trading, 370 Case analysis methodology, 380 Case method, 365 Cash cows, 23 Categorical imperatives, 85 Cautious profit planner, 304 Cellular organization, 288 Cellular structure, 288 Center of excellence, 228 Center of gravity, 145 Centralization, 294 Chairman of the Board, 54 Chief Risk Officer, 335 Chief Strategy Officer, 62 Choice, criteria, 258 Choice, strategic, 267 Cloud computing, 102 Co-creation, 163 Code of ethics, 83 Codetermination, 52 Collusion, 195 Commodity, 112 Common-size statements, 371 Common thread, 182 Communication, 314 Competency, core, 138 Competency, distinctive, 138 Competition, multipoint, 228 Competitive advantage, 139 Competitive analysis techniques, 133 Competitive intelligence, 120 Competitive intelligence, sources, 121 Competitive scope, 185 Competitive strategy, 183 Competitive tactics, 192 Complementor, 113 Concentration strategy, 208 Concentric diversification, 214, 215 Concurrent engineering, 159 Conglomerate diversification, 215 Conglomerate structure, 148 Connected line batch flow, 242 Consensus, 257 Consolidated industry, 114 Consolidation, 218 Constant dollars, 372 Consumer Price Index (CPI), 372 Continuous improvement, 243, 318 Continuous systems, 157 Continuum of sustainability, 141 Continuum, board of directors, 46 Continuum, vertical integration, 209 Contraction, 218 Control, guidelines, 351 Controls, behavior, 332 Controls, input, 333 Controls, output, 332 Cooperative strategies, 195 Co-opetition, 200 Core competency, 138 Core rigidity/deficiency, 138, 284 Corporate brand, 152 Corporate culture, 149, 255 Corporate culture, managing, 311 Corporate culture, pressures from, 255 Corporate governance, 45, 56 Corporate governance, trends, 57 Corporate parenting, 226, 227 Corporate reputation, 152 Corporate scenarios, 251 Corporate stakeholders, 75 Corporate strategy, 19, 206 Corporate valuation, 340 Corporate value-chain analysis, 146 Corporation, 45 Cost focus, 187 Cost leadership, 186 Cost proximity, 188 Costing, activity-based, 334 Counterfeit goods, 346 Crisis of autonomy, 282 Crisis of control, 282 Crisis of leadership, 280 Critical mass, 207 Cross-functional work teams, 159 Cultural integration, 149 Cultural intensity, 149 Culture of fear, 42 Culture, corporate, 149, 255, 311 I-7 I-8 SUBJECT INDEX Customer satisfaction, 318 Cycle of decline, 220 Decentralization, 294 Decision making, ethical, 79 Decision making modes, 25 Decision making, strategic, 25 Deculturation, 316 Dedicated transfer lines, 242 Defenders, 117 Defensive tactics, 194 Delphi technique, 124 Devil’s advocate, 257 Dialectical inquiry, 257 Differentiation, 186 Differentiation focus, 188 Differentiation strategy, 185 Dimensions of quality, 189 Directional strategy, 206, 207 Director of Corporate Development, 62 Director, lead, 54 Directors, affiliated, 49 Directors, family, 51 Directors, inside, 48 Directors, outside, 48 Directors, retired executive, 49 Discretionary responsibilities 73 Disk operating system (DOS), 180 Distinctive competencies, 138 Diverse workforce, 246 Diversification, concentric, 214 Diversification, conglomerate, 215 Diversification, related, 214 Diversification strategy, 208, 214 Diversification, unrelated, 215 Diversity, human, 161 Divestment, 219 Divisional structure, 147, 279, 282 Do everything strategy, 250 Dogs, 223 Downsizing, 308 Due care, 46 Durability, 140 Dynamic capabilities, 138, 191 Dynamic industry expert, 304 Dynamic pricing, 239 Earnings guidance, 349 Earnings per share (EPS), 332, 335 e-books, 230 Ecomagination, Economic forces, 101 Economic responsibilities, 73 Economic Value Added (EVA), 338 Economics, transaction cost, 109 Economies of scale, 158 Economies of scope, 147, 158 EFAS (External Factors Analysis Summary) Table, 126 Election of board members, 53 Electric car, 222 Electronic books, 230 Employee stock ownership plans (ESOP), 52 Encirclement, 194 Engineering (or process) R&D, 154 Enterprise Resource Planning (ERP), 347 Enterprise Risk Management (ERM), 335 Enterprise strategy, 76 Entrepreneurial mode, 26 Entry barrier, 111 Environment, natural, 99 Environment, societal, 100 Environment, task, 107 Environmental scanning, 16, 98 Environmental sustainability, 8, 75 Environmental uncertainty, 98 Environmental variables, 16 EPS (earnings per share), 349 Equilibrium, punctuated, 23 Ethical decision making, 79 Ethical responsibilities, 73 Ethics, 84 Ethics code, 83 Evaluating board of directors, 341 Evaluating top management, 341 Evaluation and control, 22 Evaluation and control process, 320 Evolution, industry, 114 Exclusive contract, 210 Excuses for bad service, 277 Executive leadership, 60 Executive succession, 305 Executive type, 304 Exit barriers, 112 Expatriate, 310 Expatriates, stealth, 311 Expense centers, 343 Experience curve, 157 Expert opinion, 124 Explicit knowledge, 141 Exporting, 211 External environment, 16 External growth, 216 External strategic factors, 109 Externalities, 99 Extranet, 162 Extrapolation, 124 Eyeballs, 336 Family directors, 51 Financial analysis, 366, 369 Financial expert, 55 Financial issues, 153 Financial leverage, 153 Financial measures, 335 Financial statements, 369 Financial strategy, 239 First mover, 193 Flanking maneuver, 194 Flexible manufacturing, 158 Flexible manufacturing systems, 242 Follow the leader, 250 Follow-the-sun management, 247 Forecasting, 123 Forecasting techniques, 124 Forensic accounting, 364 Form 10-K, 366 Form 10-Q, 366 Form 14-A, 366 Formulation of strategy, 17 Forward integration, 208 Four-corner exercise, 133, 134 Fragmented industry, 114 Franchising, 212 Frankenfood, 104 Free cash flow, 336 Free-market capitalism, 80 Frogs in boiling water, 82 Frontal assault, 193 Full integration, 209 Functional strategy, 20, 236 Functional structure, 147, 281 GE business screen, 223 Generally Accepted Accounting Principles (GAAP), 345, 371 Geographic-area structure, 295 Global industries, 115 Global MNC, 346 Global warming, 12, 340 Globalization, Goal, 18 Goal displacement, 350 Golden rule, 85 Good will, 370 Governance system, 80, 81 Governance, corporate, 45, 56 Green-field development, 213 Greenwash, Gross domestic product (GDP), 373 Group, strategic, 115 Growth, external, 216 Growth, horizontal, 211 Growth, internal, 216 Growth strategies, 207 Growth strategies, controversies, 216 Growth, vertical, 208 Guerrilla warfare, 194 Guideline for decision making, 21 Guidelines for control, 351 Halal foods, 174 Hierarchy of strategy, 20 Historical comparisons, 344 Hit another home run, 250 Horizontal growth, 211 Horizontal integration, 211 Horizontal strategy, 228 Hubris, 61 SUBJECT INDEX Human assets, 138 Human diversity, 161 Human resource issues, 158 Human Resource Management (HRM) strategy, 246 Hurdle rate, 22, 153 Hypercompetition, 117, 191 IFAS (Internal Factor Analysis Summary) Table, 164 Imitability, 140 Implementation of strategy, 21 Incentives, strategic, 352 Index of sustainable growth, 372 Individual rights approach, 85 Individualism-collectivism (I-C), 319 Industries, global Industries, multidomestic Industries, regional, 115 Industry, 109 Industry analysis, 99, 110 Industry evolution, 114 Industry matrix, 119 Industry scenario, 125, 252 Industry value-chain analysis, 145 Information systems, strategic, 347 Information technology issues, 162 Information technology strategy, 247 Input controls, 333 Inside directors, 48 Institution theory, 13 Institutional investors, 57 Intangible assets, 138 Integration, 315 Integration, backward, 208 Integration, forward, 208 Integration, full, 209 Integration, horizontal, 211 Integration manager, 303 Integration, quasi, 209 Integration, taper, 209 Integration, vertical, 208 Intelligence, competitive, 120 Interlocking directorate, 52 Interlocking directorate, direct, 52 Interlocking directorate, indirect, 52 Intermittent systems, 156 Internal environment, 16 Internal growth, 216 International entry options, 211 International Financial Reporting Standards(IFRS), 345 International measurement, 344 International societal considerations, 105 International strategic alliances, 292 International transfer pricing, 345 Intranet, 162 Inventory turnover ratio, 332 Investment centers, 343 Investors, institutional, 57 Islamic law (sharia), 105 ISO 9000 Standards Series, 333 ISO 14000 Standards Series, 333 Issues priority matrix, 109 Job characteristics model, 291 Job design, 290 Job enlargement, 290 Job enrichment, 290 Job rotation, 290, 307 Job shop, 156, 242 Joint venture, 197, 212 Justice approach, 85 Just-In-Time (JIT), 243, 244 Keiretsu, 52 Keirsey Temperament Sorter, 323 Key performance measures, 339 Key success factors, 118 KFC, 31 Knowledge, explicit, 141 Knowledge, tacit, 141 Laissez-faire, 72 Late movers, 193 Law, 84 Lead director, 54 Leaders, transformational, 60 Leadership, executive, 60 Leading, 311 Leading, international, 319 Lean Six Sigma, 274, 290 Learning organization, 13 Legal responsibilities, 73 Levels of moral development, 83 Leverage ratios, 366 Leverage, financial, 153 Leverage, operating, 157 Leveraged buyout, 240 Licensing, 212 Licensing arrangement, 198 Line extensions, 236 Liquidation, 220 Liquidity ratios, 366 Logical incrementalism, 26 Logistics strategy, 246 Long-range plans, 17 Long-term contracts, 210 Long-term evaluation method, 352 Long-term orientation (LT), 320 Losing hand, 251 Lower cost strategy, 185 Management audits, 341 Management Buy Outs, 240 Management By Objectives (MBO), 318, 320 Management contracts, 214 Management directors, 48 Management tool, I-9 Manual typewriters, 223 Manufacturing, flexible, 158 Market development, 236 Market development strategy, 236 Market location tactic, 193 Market position, 151 Market segmentation, 151 Market Value Added (MVA), 338 Marketing issues, 151 Marketing mix, 151 Marketing strategy, 236 Masculinity-femininity (M-F), 320 Mass customization, 158, 244 Mass production, 242 Matrix, BCG growth share, 221 Matrix, industry, 119 Matrix of change, 274, 275, 276 Matrix, SFAS, 176 Matrix structure, 285, 286 Matrix, TOWS, 182 Measurement problems, 348 Measures of corporate performance, 335 Measures of divisional and functional performance, 342 Measures, financial, 335 Measures, international, 344 Measures, key performance, 339 Measures, stakeholder, 337 Measuring performance, 332 Merger, 207 Mindshare, 336 Mission, 17, 181 Mission statement, 17, 18 MNC, global, 346 MNC, multidomestic, 346 Model, business, 142 Modes of strategic decision making, 25 Modular manufacturing, 243 Modular structure, 288 Moore’s Law, 155 Moral development levels, 83 Moral relativism, 82 Morality, 84 Most favored nation, 103 Muddling through, 26 Multidomestic industries, 114 Multidomestic MNC, 345, 346 Multinational Corporation (MNC), 105, 291 Multinational corporation, global, 292 Multinational corporation, multidomestic, 292 Multiple sourcing, 244 Multipoint competition, 228 Mutual service consortium, 197 MUUs (monthly unique users), 336 Natural environment, 99 Net present value (NPV), 254 Network structure, 287 New entrants, 111 I-10 SUBJECT INDEX Niche, propitious, 177 No-change strategy, 217 Nomination of board members, 53 Non-management directors, 48 Northern Sea Route, 96 Northwest Passage, 94 Objectives, 18, 181 Offensive tactics, 193 Offshoring, 248 Open innovation, 241 Operating budgets, 342 Operating cash flow, 336 Operating leverage, 157 Operational planning, 21 Operations issues, 156 Operations strategy, 242 Organization slack, 208 Organizational learning theory, 13 Organizational life cycle, 283 Organizational structures, 147, 285 Other stakeholders, 113 Output controls, 332 Outside directors, 48 Outsourcing, 211, 213, 247 Outsourcing matrix, 250 Parallel sourcing, 245 Parenting, corporate, 226 Parenting strategy, 206 Pascal’s wager, 11 Pause/proceed-with-caution strategy, 217 Penetration pricing, 239 PepsiCo, 314 Performance, 22, 332 Performance appraisal system, 307 Performance, corporate, 335 Performance, divisional, 342 Performance evaluations, 341 Performance, functional, 342 Performance gap, 24 Performance, key measures, 339 Periodic statistical reports, 342 PESTEL analysis, 101 Phases of strategic management, Pioneer, 193 Pirated software, 346 Planning mode, 26 Planning, operational, 21 Plans, long-range, 17 Policies, 21, 258 Policy, 21 Political-legal forces, 102 Political strategy, 255 Pooling method, 370 Population ecology, 12, 13 Portfolio analysis, 206, 220 Portfolio analysis, advantages/ disadvantages, 225 Portfolio analysis, strategic alliances, 225 Power distance (PD), 319 Prediction markets, 124 Pressure-cooker crisis, 283 Pricing, dynamic, 239 Pricing, penetration, 239 Pricing, skim, 239 Prime interest rate, 372 Problem children, 222 Procedures, 22, 276 Product development, 236 Product development strategy, 236 Product life cycle, 152 Product R&D, 154 Product-group structure, 295 Production sharing, 213 Professional liquidator, 304 Profit centers, 343 Profit strategy, 218 Profitability ratios, 366 Profits, repatriation of, 345 Program, 21, 274 Propitious niche, 177, 181 Prospectors, 117 Pull strategy, 239 Punctuated equilibrium, 23 Purchasing power parity (PPP), 107 Push strategy, 239 Quality circles, 320 Quality dimensions, 189 Quality of Work, 160 Quasi-integration, 209 Question marks, 222 R&D intensity, 154 R&D issues, 154 R&D mix, 154 R&D strategy, 241 Radio frequency identification (RFID), 163, 348 Ratio analysis, 366 Reactors, 117 Real-options approach, 254 Red flag, 364 Red tape crisis, 282 Reengineering, 288 Regional industries, 115 Related diversification, 214 Relativism, moral, 82 Repatriation of profits, 100, 345 Replicability, 141 Report, annual, 366 Reputation, corporate, 152 Resizing, 308 Resource-based approach, 138 Resources, 138 Resources for Case Research, 377 Responsibilities, boards of directors, 45 Responsibilities of a business, 72, 73 Responsibilities, top management, 58 Retaliation, 195 Retired executive directors, 49 Retrenchment, 308 Retrenchment strategies, 207, 218 Return On Equity (ROE), 336 Return On Investment (ROI), 332, 335, 336, 343, 344, 345, 349 Revenue centers, 343 Reverse engineering, 140 Reverse logistics, 166 Reverse stock splits, 240 Revival phase, 284 Rightsizing, 308 Risk, 253 Risks in competitive strategies, 188 Rivalry, 111 Rivalry among existing firms, 111 ROE (Return on Equity), 336 ROI (Return on Investment), 335 Role of the board of directors, 46 Rules of thumb, 351 Sarbanes-Oxley Act, 55 SBUs, 282, 352 Scenario analysis, 335 Scenario box, 252 Scenario, industry, 125 Scenario writing, 125 Scorecard, balanced, 339 SEC 10-K form, 366 SEC 10-Q forms, 366 SEC 14-A forms, 366 Self-managing work teams, 246 Sell-out strategy, 219 Separation, 316 SFAS (Strategic Factors Analysis Summary) Matrix, 176 Shareholder, 45 Shareholder value, 337 Short-term orientation, 349 Simple structure, 147, 280 Situational analysis, 176 Six Sigma, 4, 274, 289 Skim pricing, 239 Social capital, 74 Social responsibility, 72 Societal environment, 99, 100, 101 Societal environment, international, 105 Sociocultural forces, 103 Sole sourcing, 244 Sourcing, 247 Stability strategies, 207, 217 Staff, strategic planning, 62 Staffing, 302 Staffing follows strategy, 303 Staffing, international, 309 Stages of corporate development, 280 Stages of international development, 293 Staggered board, 53 Stakeholder analysis 75 SUBJECT INDEX Stakeholder measures, 337 Stakeholder priority matrix, 255 Stakeholder, primary, 77 Stakeholder, secondary, 77 Stakeholders, 75 Stall point, 270 Standard cost centers, 342 Standard Operating Procedure (SOP), 22, 276 Star employee, 322 Stars, 222 Statistical modeling, 124 Stealth expatriates, 311 STEEP analysis, 100, 101 Steering controls, 332 Stewardship theory, 49, 50 Stickiness, 336 Strategic alliance portfolio, 225 Strategic alliance, 196 Strategic alliances, international, 292 Strategic audit, 28, 34, 125, 163, 342, 373 Strategic audit, student-written, 383 Strategic audit worksheet, 373, 374 Strategic business units (SBUs), 148 Strategic choice, 257 Strategic choice perspective, 13 Strategic decision making, 25 Strategic decision-making process, 27, 28 Strategic decisions, 25 Strategic factors, 16, 109, 177 Strategic flexibility, 13 Strategic-funds method, 353 Strategic group, 115 Strategic incentive management, 352 Strategic inflection point, 24 Strategic information systems, 347 Strategic management benefits, Strategic management model, 15 Strategic management phases, Strategic management process, 15 Strategic management, Strategic myopia, 108 Strategic planning process, 61 Strategic planning staff, 62 Strategic posture, 34 Strategic rollup, 190 Strategic sweet spot, 177, 180 Strategic type, 117 Strategic vision, 60 Strategic window, 179 Strategies to avoid, 250 Strategies, growth, 207 Strategies, retrenchment, 218 Strategies, stability, 217 Strategy, 19 Strategy, business, 19, 183 Strategy, competitive, 183 Strategy, concentration, 208 Strategy, cooperative, 195 Strategy, corporate, 19 Strategy-culture compatibility, 312 Strategy, diversification, 214 Strategy, enterprise, 76 Strategy formulation, 17, 176 Strategy, functional, 20 Strategy, hierarchy, 20 Strategy, horizontal, 228 Strategy implementation, 221, 72, 274 Strategy, political, 255 Structural barriers, 194 Structure, cellular, 288 Structure, divisional, 282 Structure follows strategy, 279 Structure, functional, 281 Structure, geographic-area, 295 Structure, matrix, 285 Structure, modular, 288 Structure, network, 287 Structure, product-group, 295 Structure, simple, 280 Structures, organizational, 147, 285 Stuck in the middle, 189, 266 Suboptimization, 350 Substitute product, 112 Suppliers, bargaining power, 113 Supply chain management, 163 Sustainability continuum, 141 Sustainability, 75, 140 Sustainability, environmental, 8, 75 Sustainability index, 76 Sustainable growth, index of, 371 Sweet spot, strategic, 177 Switching costs, 111 SWOT analysis, 16, 176 Synergy, 214, 278 Synergy Game, 296 Tacit knowledge, 141 Tactic, 192 Tactics, timing, 193 Tactics, competitive, 192 Tactics, defensive, 194 Tactics, market location, 193 Tactics, offensive, 193 Take rate, 348 Takeovers, 208 Tangible assets, 138 Taper integration, 209 Task environment, 99, 107 Teams, 158, 159 Technological competence, 154 Technological discontinuity, 155 Technological follower, 241 Technological forces, 102 Technological leader, 241 Technology scouts, 242 Technology transfer, 154 Temporary/part-time workers, 159 Theories of organizational adaptation, 12 Threat of new entrants, 111 I-11 Threat of substitutes 112 Timing tactic, 193 Top management, 45 Top management responsibilities, 58 Top management, evaluation of, 341 Total Quality Management (TQM), 318, 320 TOWS Matrix, 182 Trade associations, Transaction cost economics, 209, 210 Transfer pricing, 343 Transfer pricing, international, 345 Transferability, 140 Transformational leaders, 60 Transparency, 140 Trends in corporate governance, 57 Trigger point, 106, 107 Triggering event, 24 Turnaround specialist, 304 Turnaround strategy, 218 Turnkey operations, 213 Turnover, 371 Types, strategic, 117 Typewriters, manual, 223 Uncertainty avoidance (UA), 319 Union relations, 159 Unrelated diversification, 215 Utilitarian approach, 85 Valuation, corporate, 340 Value Added, economic, 338 Value added, market, 338 Value chain, 143 Value discipline triad, 135 Value disciplines, 133 Value, shareholder, 337 Value-chain analysis, 143 Value-chain, corporate, 146 Value-chain, industry, 145 Value-chain partnership, 198 Values statement, 17 Vertical growth 210 Vertical growth strategy, 208 Vertical integration, 145, 208, 210 Virtual organization, 287 Virtual teams, 159 Vision, 17 Vision, strategic, 60 VRIO framework, 138 War game, 134 Web 2.0, 162, 230 Weighted-factor method, 352 Whistleblowers, 55, 84 Wildcats, 222 Z-Value Bankruptcy Formula, 371 ... each case: 10 Case Abstract Case Issues and Subjects Steps Covered in the Strategic Decision-Making Process Case Objectives Suggested Classroom Approaches Discussion Questions Case Author? ?s Teaching... ABB VERSUS MATSUSHITA 150 Strategic Marketing Issues Strategic Financial Issues 151 153 Strategic Research and Development (R&D) Issues Strategic Operations Issues 154 156 Strategic Human Resource... Notes: These include summaries of each chapter, suggested answers to discussion questions, and suggestions for using end-of-chapter cases/exercises and part-ending cases, plus additional discussion