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Strategic Management Building and Sustaining Competitive Advantage

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ISBN-10: 0314061134

ISBN-13: 9780314061133

Edition: N/A

Authors: Robert A. Pitts, David Lei

List price: $36.50
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Book details

List price: $36.50
Publisher: West Publishing Company, College & School Division
Binding: Hardcover
Pages: 450
Language: English

Prefacep. x
Building Competitive Advantagep. 1
The Strategic Management Processp. 3
Strategic Snapshot: Evolution of the Restaurant Industryp. 4
Introductionp. 8
The Strategy Conceptp. 10
The Basis of Strategyp. 11
The Strategic Management Processp. 12
Business and Corporate Strategiesp. 14
Strategic Imperativesp. 15
The Role of Strategic Competencies in Crafting an Effective Strategyp. 18
Vision Competency: Determining and Setting Strategic Goalsp. 19
Value Creation Competency: Defining What We Do Bestp. 21
Planning and Administration: Getting Everything to Fitp. 21
Planning and Administration: Charles Schwabp. 22
Global Awareness Competency: Competing in a Smaller Worldp. 23
Competing in Global Markets: Philips Electronicsp. 24
Leveraging Technology Competency: Staying on the Cutting Edgep. 25
Leveraging Technology: Innovation at Sonyp. 26
Stakeholder Competency: What Decision Criteria Are Used?p. 27
Balancing Stakeholders: IBM and Job Creationp. 29
Responsibility for Strategic Managementp. 30
Who Are Strategic Managers?p. 30
Characteristics of Strategic Decisionsp. 31
Difficulties in Reconciling Stakeholders' Needsp. 33
Why Study Strategy?p. 35
Candidate Seeking Employmentp. 35
Employee or Managerp. 35
Summaryp. 36
Endnotesp. 37
Assessing Industry Attractiveness and the Competitive Environmentp. 39
Strategic Snapshot: The Personal Computer Industry in 2004p. 40
Introductionp. 45
The Macroenvironmentp. 46
The Demographic Environmentp. 46
The Political Environmentp. 48
The Social/Cultural Environmentp. 50
Technological Developmentsp. 51
The Global Environmentp. 52
Balancing Stakeholders: The Outsourcing Wavep. 53
Assessing the Impact of the General Environmentp. 55
The Competitive Environmentp. 56
The Five Forces Model of Industry Attractivenessp. 56
Threat of New Entrantsp. 57
Bargaining Power of Buyersp. 60
Planning and Administration: Agile Supply Chainsp. 62
Bargaining Power of Suppliersp. 63
The Nature of Rivalry in the Industryp. 64
Threat of Substitutesp. 66
Strategic Groups and the Industry Environmentp. 67
Defining the Strategic Groupp. 68
Strategic Groups in the Personal Computer Industryp. 68
Implications of Strategic Group Analysisp. 71
Strategic Application of Five Forces Analysis to the Personal Computer Industryp. 73
New Entrantsp. 73
Direct Competitorsp. 73
Buyersp. 74
Suppliersp. 74
Substitutesp. 74
Alternative Ways to Examine Industry Structure and Dynamicsp. 75
Techniques to Monitor the Environmentp. 77
Ethical Dimensionsp. 77
Legal Requirementsp. 78
Long-Run Consequencesp. 78
Summaryp. 78
Exercises and Discussion Questionsp. 79
Endnotesp. 79
Matching Firm Capabilities with Opportunitiesp. 83
Strategy Snapshot 1: Pizza Hut and Domino's Pizzap. 84
Strategic Snapshot 2: General Motors Corporationp. 85
Introductionp. 87
The Value Chainp. 87
Primary Activitiesp. 89
Support Activitiesp. 94
Pizza Industry Value Chainp. 96
Primary Activitiesp. 97
Support Activitiesp. 97
Automobile Industry Value Chainp. 97
Primary Activitiesp. 97
Support Activitiesp. 98
The Value Chain as Part of a Business Systemp. 99
Pizza Hutp. 99
Domino's Pizzap. 100
General Motorsp. 101
Capability Driversp. 103
First-Mover Statusp. 103
Scale of Operationp. 105
Planning and Administration: Samsung Electronicsp. 107
Experiencep. 108
Creating Distinctive Value: Toyota Motor of Japanp. 109
Interrelationshipsp. 111
Assessing Competitive Advantagep. 112
First-Mover Advantagesp. 112
Scale and Experience Advantagesp. 114
The Growth of the Internet and Competitive Advantagep. 116
Compressing the Value Chainp. 116
Building Extended, Internet-Driven Supply Chainsp. 117
Competitive Dynamics and the Internetp. 117
Diagnosing Pizza Hut's Capabilitiesp. 118
First-Mover Advantagesp. 118
Scale Advantagesp. 119
Experience Benefitsp. 120
Interrelationshipsp. 120
Achilles' Heel of Established Firmsp. 120
Assessing the Financial Position of Competitorsp. 122
Ethical Issuesp. 123
Examining Competitors' Productsp. 123
Questioning Competitors' Employeesp. 123
Using Consultantsp. 124
Engaging in Industrial Espionagep. 124
"Pirating" Employeesp. 124
Conclusionp. 125
Summaryp. 125
Exercises and Discussion Questionsp. 126
Endnotesp. 126
Building Competitive Advantage through Distinctionp. 131
Strategic Snapshot: Nordstrom, Inc.p. 132
Introductionp. 135
Routes to Building Competitive Advantagep. 135
Low-Cost Leadership Strategiesp. 136
Building a Low-Cost Advantagep. 137
A Vision of Industry Dominance: Nikep. 140
Benefits and Costs of Low-Cost Leadership Strategiesp. 141
Differentiation Strategiesp. 144
Building a Differentiation-Based Advantagep. 145
Benefits and Costs of Differentiation Strategiesp. 150
Focus Strategiesp. 152
Building a Focus-Based Advantagep. 153
Benefits and Costs of Focus Strategiesp. 155
Strategic Application to Nordstromp. 157
An Emerging View of Strategy: Mass Customization for Best Valuep. 158
Advanced Manufacturing Technologyp. 159
Modular Product Designsp. 160
Internet-Driven Distribution Systemsp. 162
New Market Segmentation Techniquesp. 162
The Internet's Impact on Cost and Responsiveness to Customer Needsp. 163
Wide Product Selectionp. 163
Well-Understood Productsp. 163
Fluctuating Product Availabilityp. 164
Leveraging Technology: Reinventing Amazon.comp. 165
Strategy and Competitive Advantage over the Life Cyclep. 166
Introductory Stagep. 168
Growth Stagep. 170
Mature Stagep. 171
Decline Stagep. 172
Life Cycle Dynamics and Competitive Advantagep. 173
Ethical Dimensionp. 174
Worthy Needp. 174
Safe Productp. 175
Ample Informationp. 175
Summaryp. 176
Exercises and Discussion Questionsp. 177
Endnotesp. 177
Responding to Shifts in Competitive Advantagep. 185
Delivery of Online Musicp. 186
Eastman Kodak and Digital Photographyp. 191
Introductionp. 194
New Developments Affecting Competitive Advantagep. 194
New Technologyp. 195
New Distribution Channelsp. 196
Economic Shiftsp. 199
Changes in Related or Neighboring Industriesp. 199
Changes in Government Regulationp. 200
Response Optionsp. 201
Prospectingp. 201
Planning and Administration: Prospecting at Texas Instrumentsp. 203
Defendingp. 204
Harvestingp. 205
Generic Change Situationsp. 206
Magnitude of Threatp. 206
Ability to Adjustp. 207
Common Change Situationsp. 208
Uncertaintyp. 213
Impact of Environmental Developmentp. 213
Ability to Adjustp. 215
Creating Distinctive Value: Whole Foods Marketp. 216
Future Scenarios and Applications-Distributing Films on the Internetp. 217
Shareholder Considerations and Dilemmasp. 218
Risk Preferencep. 219
Return Preferencep. 219
Summaryp. 220
Exercises and Discussion Questionsp. 220
Endnotesp. 221
Extending Competitive Advantagep. 227
Corporate Strategy: Leveraging Resourcesp. 229
Strategic Snapshot: The Kellogg Companyp. 230
Introductionp. 233
The Concept of Resources in Corporate Strategyp. 234
Alternative Routes of Corporate Strategyp. 235
New Stagesp. 235
New Businesses and Industriesp. 236
A New Corporate Vision: Transforming DuPontp. 237
Broad Types of Corporate Strategiesp. 238
Vertical Integrationp. 238
Related Diversificationp. 240
Unrelated Diversificationp. 243
Corporate Strategies Comparedp. 246
More Attractive Terrainp. 247
Growthp. 247
Profitabilityp. 248
Stabilityp. 249
Access to Resourcesp. 249
Scarce Assetsp. 249
Technologiesp. 250
Creating Distinctive Value: The 3M Companyp. 251
Expertisep. 252
Sharing Activitiesp. 254
Costs of Diversificationp. 255
Cost of Ignorancep. 255
Cost of Neglectp. 256
Costs of Cooperationp. 257
Maximizing Benefits, Minimizing Costsp. 259
Achieving Powerful Diversification Benefitsp. 260
Limiting Diversification Costsp. 262
Alternatives to Diversification: Corporate Restructuringsp. 264
Selective Focusp. 265
Divestitures and Spin-offsp. 266
Strategic Application to Kelloggp. 269
Summaryp. 271
Exercises and Discussion Questionsp. 272
Endnotesp. 272
Global Strategy: Harnessing New Marketsp. 285
Strategic Snapshot: Building Global Capabilities at Nokiap. 286
Introductionp. 289
Environmental Factors That Accelerate Globalizationp. 289
Narrowing of Demand Characteristics Across Marketsp. 290
Escalating Costs of Research and Developmentp. 292
Rising Economies of Scale and Cost Pressuresp. 292
Role of Government Policyp. 293
Creating Distinctive Value: China's TCLp. 294
Change in Factor Costs Around the Worldp. 297
Leveraging Technology: Using Advanced Technology to Keep It Made in the U.S.A.p. 299
Rise of New Distribution Channelsp. 300
Overall Reduction in Transportation, Communication, and Storage Costsp. 300
Strategies for Global Expansionp. 302
Global Strategyp. 303
Multidomestic Strategyp. 309
Benefits of Global Expansionp. 314
Market Growth and Expansionp. 315
Recovery of Investment Costsp. 316
Creation of a Strong Imagep. 316
Accelerated Learningp. 317
Costs of Globalizationp. 317
Cost of Strategic Leveragep. 319
Loss of Flexibilityp. 320
Costs of Cooperationp. 321
Balancing Global and Multidomestic Approachesp. 322
Automobiles: Combining Global Scale with Local Responsep. 323
Personal Care Products: Matching Local Response to Global Developmentp. 325
Strategic Application to Nokiap. 326
Ethical Dimensionsp. 327
Summaryp. 330
Exercises and Discussion Questionsp. 330
Endnotesp. 331
Strategic Alliances: Partnering for Advantagep. 337
IBM's Microelectronics Alliance Strategyp. 338
The Global Airline Industryp. 342
Introductionp. 347
Key Strategic Alliance Objectivesp. 347
New Market Entryp. 348
Vertical Integrationp. 349
Shaping Industry Evolutionp. 350
Learning and Applying New Technologiesp. 352
Rounding Out the Product Linep. 354
Creating Distinctive Value: GE Honda Aero Enginesp. 355
Types and Benefits of Strategic Alliancesp. 356
Simple, Arms-Length Relationshipsp. 358
Highly Coordinated Alliancesp. 359
Tightly Integrated Alliancesp. 364
Risks and Costs of Strategic Alliancesp. 367
Rising Incompatibility of Partnersp. 367
Risk of Knowledge/Skill Drainp. 368
Risk of Dependencep. 369
Costs of Alliance Control and Operationsp. 371
Balancing Cooperation and Competitionp. 374
Understand the Firm's Knowledge and Skill Basep. 375
Choose Complementary Partnersp. 376
Keep Alliance Personnel Long Termp. 377
Planning and Administration: Fuji Xeroxp. 377
Ethical Dimensionp. 378
Cooperation and Competition in Alliancesp. 379
Alliance Personnel Issuesp. 379
Summaryp. 380
Exercises and Discussion Questionsp. 381
Endnotesp. 381
Organizing for Sustainable Advantagep. 389
Designing Organizations for Advantagep. 391
Strategic Snapshot: Cisco Systemsp. 392
The Key Role of Strategic Implementationp. 395
A Framework for Designing Organizational Structurep. 395
Basic Ingredients of Organizational Structurep. 396
Specializationp. 396
Standardizationp. 397
Centralizationp. 398
Planning and Administration: The Home Depotp. 398
Broad Forms of Organizational Structurep. 399
Functional Structuresp. 400
Product Divisionsp. 402
Geographic Division Structuresp. 407
Matrix Structuresp. 409
Special Organizational Structures for Global Operationsp. 412
Building Global Businesses: Organizational Realignment at Procter & Gamblep. 415
Balancing Flexibility and Stability: Moving to a Networked Organizationp. 416
Semipermeable Boundariesp. 418
Reliance on External Alliancesp. 419
Organizational Focus on Core Processes and Technologiesp. 419
Moving to a Virtual Organizationp. 420
High Specialization of Knowledgep. 421
Rapid Assembly/Disassembly of Project Teamsp. 422
Ability to Interconnect Quickly with Other Firmsp. 424
Strategic Application to Cisco Systemsp. 425
No Single Structure Is Perfectp. 426
An Overview of Organizational Structurep. 428
Summaryp. 429
Exercises and Discussion Questionsp. 430
Endnotesp. 430
Organizing and Learning to Sustain Advantagep. 437
Strategic Snapshot: The Transformation of General Electricp. 438
Organization Design Practicesp. 442
Reward and Performance Measurement Systemsp. 443
Hierarchy-Based Systemsp. 443
Performance-Based Systemsp. 445
Performance Measurement at the Corporate Levelp. 447
Shared Values and Corporate Culturep. 448
Balancing Stakeholders: Cultural Change at Southwest Airlinesp. 449
Characteristics of Shared Values That Define Culturep. 450
Creating a Unifying Corporate Vision: Johnson & Johnsonp. 452
Methods of Transmitting Shared Valuesp. 453
Corporate Culture and Strategy Implementationp. 454
Building the Learning Organizationp. 458
Frequent Rotation of Managersp. 459
Continual Training of Personnelp. 460
Decentralization of Decision Makingp. 460
Encouragement of Multiple Experimentsp. 461
High Tolerance for Failurep. 461
Openness and Diversity of Viewpointsp. 462
Implementing Change in Static Organizationsp. 463
Resistance to Change in Static Organizationsp. 465
Lack of Awarenessp. 466
Lack of Interestp. 466
Incompatibility with Cherished Valuesp. 466
Fear of Cannibalizationp. 467
Fear of Personal Lossp. 467
Change Stepsp. 468
Sense the Need for Strategic Changep. 469
Build Awareness of Need to Change and Learnp. 469
Foster Debatep. 470
Create Consensusp. 470
Assign Responsibilityp. 471
Allocate Resourcesp. 471
Embracing Change as a Way of Lifep. 472
Summaryp. 473
Exercises and Discussion Questionsp. 473
Endnotesp. 474
Corporate Governancep. 481
Corporate Governance: Instilling Long-Term Valuep. 483
Strategic Snapshot: Morrison Knudsenp. 484
Introductionp. 486
The Board of Directorsp. 487
Why Directors Often Neglect Shareholder Interestsp. 487
Time Constraintsp. 488
CEO Factorsp. 488
Weak Shareholder Powerp. 489
Early Forces of Changep. 489
Public Criticismp. 490
Rising Director Liabilityp. 490
Increased Institutional Ownershipp. 490
Prospect for Corporate Takeoverp. 491
Catastrophic Corporate Failuresp. 492
The Sarbanes-Oxley Act of 2002p. 493
Leveraging Technology: Complying with Sarbanes-Oxleyp. 496
Recent Trends in Board Operationp. 496
Smaller Board Sizep. 497
Greater Board Independence with Outside Directorsp. 497
Greater Education and Involvement of Board Membersp. 498
Strategic Vision: Board Reform at General Electricp. 499
Greater Diversity Among Directorsp. 500
Agenda for the Futurep. 500
Multiple Board Responsibilitiesp. 500
Interlocking Relationshipsp. 501
CEO Presence on the Boardp. 501
CEO/Chairperson Combinationp. 501
Director Share Holdingsp. 502
Corporate Governance Issues in Other Nationsp. 502
Summaryp. 504
Endnotesp. 504
Glossaryp. 507
Name Indexp. 515
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