Strategic Management and Business Policy

by Wheelen, Tom; Hunger, J. David

• ISBN13: 9780131421790
• ISBN10: 0131421794
• Edition: 9th
• Format: Hardcover
• Copyright: 2004-01-01
• Publisher: Pearson College Div

Summary

This comprehensive book offers an engaging look into new and traditional strategic management topics. Its thorough coverage helps readers develop an understanding of the wide range of theories and research available in this field--from competitive strategy and industry analysis to environmental trends and ethics. Integration of international issues throughout provides an essential understanding of global economics and its impact on business activities in any location. KEY TOPICS" 43 timely and well-researched corporate cases examine real companies at all stages of development. For directors of strategic planning, competitive intelligence analysts, and strategic planners.

Table of Contents

Preface	xxv
PART ONE Introduction to Strategic Management and Business Policy	1	(50)
Basic Concepts of Strategic Management	1	(24)
The Study of Strategic Management	2	(3)
Phases of Strategic Management	3	(1)
Benefits of Strategic Management	4	(1)
Globalization and Electronic Commerce: Challenges to Strategic Management	5	(2)
Impact of Globalization	5	(1)
Impact of Electronic Commerce	5	(1)
Global Issue: Regional Trade Associations Replace National Trade Barriers	6	(1)
Theories of Organizational Adaptation	7	(1)
Creating a Learning Organization	8	(1)
Basic Model of Strategic Management	9	(7)
Environmental Scanning	9	(1)
Strategy Formulation	10	(5)
Strategy Implementation	15	(1)
Evaluation and Control	16	(1)
Feedback/Learning Process	16	(1)
Initiation of Strategy: Triggering Events	16	(2)
Internet Issue: Triggering Event at Sun Microsystems	17	(1)
Strategic Decision Making	18	(4)
What Makes a Decision Strategic	18	(1)
Mintzberg's Modes of Strategic Decision Making	18	(1)
Strategic Decision-Making Process: Aid to Better Decisions	19	(3)
Impact of the Internet on Strategic Management	22	(3)
Corporate Governance and Social Responsibility	25	(26)
Corporate Governance: Role of the Board of Directors	26	(9)
Responsibilities of the Board	27	(2)
Members of a Board of Directors	29	(1)
Theory As It Applies: Agency Theory Versus Stewardship Theory in Corporate Governance	30	(2)
Nomination and Election of Board Members	32	(1)
Organization of the Board	33	(1)
Trends in Corporate Governance	34	(1)
Corporate Governance: The Role of Top Management	35	(2)
Responsibilities of Top Management	35	(2)
Social Responsibilities of Strategic Decision Makers	37	(3)
Responsibilities of a Business Firm	37	(2)
Corporate Stakeholders	39	(1)
Ethical Decision Making	40	(4)
Global Issue: Unethical Practices at Enron and WorldCom Exposed by ``Whistleblowers''	40	(1)
Some Reasons for Unethical Behavior	41	(1)
Encouraging Ethical Behavior	42	(2)
Impact of the Internet on Corporate Governance and Social Responsibility	44	(7)
Internet Issue: Governments Act to Protect Society by Regulating the Internet	45	(5)
Part Ending Video Case: Newbury Comics, Inc.	50	(1)
PART TWO Scanning the Environment	51	(57)
Environmental Scanning and Industry Analysis	51	(29)
Environmental Scanning	52	(8)
Identifying External Environmental Variables	52	(6)
Global Issue: Identifying Potential Markets in Developing Nations	58	(1)
Identifying External Strategic Factors	59	(1)
Industry Analysis: Analyzing the Task Environment	60	(10)
Porter's Approach to Industry Analysis	60	(4)
Industry Evolution	64	(1)
Categorizing International Industries	64	(1)
International Risk Assessment	65	(1)
Strategic Groups	66	(1)
Strategic Types	66	(1)
Hypercompetition	67	(2)
Using Key Success Factors to Create an Industry Matrix	69	(1)
Competitive Intelligence	70	(1)
Forecasting	71	(2)
Danger of Assumptions	71	(1)
Useful Forecasting Techniques	72	(1)
Synthesis of External Factors---EFAS	73	(1)
Impact of the Internet on Environmental Scanning and Industry Analysis	74	(6)
Internet Issue: Competitor Information Available on the Internet	76	(4)
Internal Scanning: Organizational Analysis	80	(28)
A Resource-Based Approach to Organizational Analysis	81	(3)
Using Resources to Gain Competitive Advantage	82	(1)
Determining the Sustainability of an Advantage	82	(2)
Value Chain Analysis	84	(3)
Industry Value Chain Analysis	84	(1)
Corporate Value Chain Analysis	85	(2)
Scanning Functional Resources	87	(13)
Basic Organizational Structures	87	(1)
Corporate Culture: The Company Way	88	(1)
Strategic Marketing Issues	89	(1)
Global Issue: ABB Uses Corporate Culture as a Competitive Advantage	90	(1)
Strategic Financial Issues	91	(1)
Strategic Research and Development (R&D) Issues	92	(3)
Strategic Operations Issues	95	(2)
Strategic Human Resource Management (HRM) Issues	97	(2)
Strategic Information Systems/Technology Issues	99	(1)
Internet Issue: The Growing Global Internet Economy	99	(1)
The Strategic Audit: A Checklist for Organizational Analysis	100	(1)
Synthesis of Internal Factors: IFAS	101	(1)
Impact of the Internet on Internal Scanning and Organizational Analysis	102	(6)
Part Ending Video Case: Newbury Comics, Inc.	106	(2)
PART THREE Strategy Formulation	108	(83)
Strategy Formulation: Situation Analysis and Business Strategy	108	(28)
Situational Analysis: SWOT Analysis	109	(5)
Generating a Strategic Factors Analysis Summary (SFAS) Matrix	110	(2)
Finding a Propitious Niche	112	(1)
Global Issue: SAB Defends Its Propitious Niche	113	(1)
Review of Mission and Objectives	114	(1)
Generating Alternative Strategies Using a TOWS Matrix	114	(1)
Business Strategies	115	(16)
Porter's Competitive Strategies	117	(9)
Cooperative Strategies	126	(4)
Internet Issue: Business to Business at Cisco Systems	130	(1)
Impact of the Internet on Business Strategy	131	(5)
Strategy Formulation: Corporate Strategy	136	(28)
Corporate Strategy	137	(1)
Directional Strategy	138	(13)
Growth Strategies	138	(3)
Theory As It Applies: Transaction Cost Economics Analyzes Vertical Growth Strategy	141	(2)
International Entry Options	143	(1)
Global Issue: Wal-Mart Enters International Markets	144	(2)
Controversies in Directional Growth Strategies	146	(1)
Stability Strategies	146	(2)
Retrenchment Strategies	148	(3)
Portfolio Analysis	151	(5)
BCG Growth-Share Matrix	151	(2)
GE Business Screen	153	(1)
International Portfolio Analysis	154	(1)
Advantages and Limitations of Portfolio Analysis	155	(1)
Corporate Parenting	156	(3)
Developing a Corporate Parenting Strategy	156	(1)
Parenting-Fit Matrix	157	(2)
Horizontal Strategy and Multipoint Competition	159	(1)
Impact of the Internet on Corporate Strategy	159	(5)
Internet Issue: Global Online Population	160	(4)
Strategy Formulation: Functional Strategy and Strategic Choice	164	(27)
Functional Strategy	165	(12)
Core Competencies	165	(1)
The Sourcing Decision: Where Should Functions Be Housed?	166	(2)
Marketing Strategy	168	(1)
Financial Strategy	169	(1)
Research and Development (R&D) Strategy	170	(1)
Operations Strategy	171	(1)
Global Issue: International Differences Alter Whirlpool's Operations Strategy	172	(1)
Purchasing Strategy	173	(1)
Logistics Strategy	174	(1)
Internet Issue: Staples Uses Internet to Replenish Inventory from 3M	175	(1)
Human Resources Management (HRM) Strategy	175	(1)
Information Systems Strategy	176	(1)
Strategies to Avoid	177	(1)
Strategic Choice: Selection of the Best Strategy	177	(7)
Constructing Corporate Scenarios	178	(5)
Process of Strategic Choice	183	(1)
Development of Policies	184	(1)
Impact of the Internet on Functional Strategy	185	(6)
Part Ending Video Case: Newbury Comics, Inc.	190	(1)
PART FOUR Strategy Implementation and Control	191	(86)
Strategy Implementation: Organizing for Action	191	(26)
Strategy Implementation	192	(1)
Who Implements Strategy?	193	(1)
What Must Be Done?	194	(3)
Developing Programs, Budgets, and Procedures	194	(2)
Achieving Synergy	196	(1)
How Is Strategy to Be Implemented? Organizing for Action	197	(12)
Structure Follows Strategy	197	(1)
Stages of Corporate Development	198	(3)
Organizational Life Cycle	201	(1)
Internet Issue: The Founder of the Modem Blocks Transition to Stage II	202	(2)
Advanced Types of Organizational Structures	204	(3)
Reengineering and Strategy Implementation	207	(1)
Designing Jobs to Implement Strategy	208	(1)
Theory As It Applies: Designing Jobs with the Job Characteristics Model	209	(1)
International Issues in Strategy Implementation	209	(3)
Stages of International Development	210	(1)
Centralization Versus Decentralization	210	(1)
Global Issue: FedEx Provides the Infrastructure for Companies to Become Global	211	(1)
Impact of the Internet on Organizational Design and Structure	212	(5)
Strategy Implementation: Staffing and Directing	217	(24)
Staffing	218	(7)
Staffing Follows Strategy	219	(2)
Selection and Management Development	221	(1)
Problems in Retrenchment	222	(2)
International Issues in Staffing	224	(1)
Leading	225	(10)
Managing Corporate Culture	225	(4)
Action Planning	229	(2)
Management By Objectives	231	(1)
Total Quality Management	232	(1)
International Considerations in Leading	232	(2)
Global Issue: Cultural Differences Create Implementation Problems in Merger	234	(1)
Impact of the Internet on Staffing and Leading in Organizations	235	(6)
Static Intranet Applications	235	(1)
Dynamic Intranet Applications	236	(1)
Internet Issue: Virtual Teams Use the Net to Operate at Long Distance	236	(1)
Advantages and Disadvantages of Intranets	237	(4)
Evaluation and Control	241	(36)
Evaluation and Control in Strategic Management	243	(1)
Measuring Performance	243	(13)
Appropriate Measures	243	(1)
Types of Controls	243	(2)
Activity-Based Costing	245	(1)
Primary Measures of Corporate Performance	246	(2)
Internet Issue: ``Eyeballs'' and ``MUUs'': Questionable Performance Measures	248	(4)
Primary Measures of Divisional and Functional Performance	252	(2)
International Measurement Issues	254	(1)
Global Issue: The Impact of Piracy on International Trade	255	(1)
Strategic Information Systems	256	(1)
Enterprise Resource Planning (ERP)	256	(1)
Divisional and Functional IS Support	257	(1)
Problems in Measuring Performance	257	(2)
Short-Term Orientation	258	(1)
Goal Displacement	258	(1)
Guidelines for Proper Control	259	(1)
Strategic Incentive Management	260	(2)
Using the Strategic Audit to Evaluate Corporate Performance	262	(1)
Impact of the Internet on Evaluation and Control	262	(15)
Strategic Audit of a Corporation	265	(9)
Part Ending Video Case: Newbury Comics, Inc.	274	(3)
PART FIVE Other Strategic Issues	277	(64)
Strategic Issues in Managing Technology and Innovation	277	(24)
Role of Management	278	(2)
Environmental Scanning	280	(4)
External Scanning	280	(3)
Internal Scanning	283	(1)
Resource Allocation Issues	283	(1)
Strategy Formulation	284	(6)
Global Issue: Impact of R&D on Competitive Advantage in China	285	(1)
Product Versus Process R&D	285	(1)
Technology Sourcing	286	(2)
Importance of Technological Competence	288	(1)
Product Portfolio	289	(1)
Strategy Implementation	290	(4)
Developing an Innovative Entrepreneurial Culture	290	(1)
Organizing for Innovation: Corporate Entrepreneurship	291	(3)
Evaluation and Control	294	(2)
Internet Issue: Software Company Challenges Hackers to Attack Its Product	295	(1)
Impact of the Internet on Managing Technology and Innovation	296	(5)
Strategic Issues in Entrepreneurial Ventures and Small Businesses	301	(23)
Importance of Small Business and Entrepreneurial Ventures	301	(3)
Global Issue: Entrepreneurship: Some Countries Are More Supportive Than Others	302	(1)
Definition of Small-Business Firms and Entrepreneurial Ventures	303	(1)
The Entrepreneur as a Strategist	303	(1)
Use of Strategic Planning and Strategic Management	304	(4)
Degree of Formality	304	(1)
Usefulness of Strategic Management Model	305	(1)
Usefulness of Strategic Decision-Making Process	305	(3)
Issues in Corporate Governance	308	(1)
Issues in Environmental Scanning and Strategy Formulation	309	(4)
Sources of Innovation	309	(2)
Factors Affecting a New Venture's Success	311	(1)
Internet Issue: Web Site Provides Local Business a Global Presence	312	(1)
Issues in Strategy Implementation	313	(3)
Substages of Small Business Development	313	(2)
Transfer of Power and Wealth in Family Businesses	315	(1)
Issues in Evaluation and Control	316	(2)
Impact of the Internet on Entrepreneurial Ventures and Small Businesses	318	(6)
Strategic Issues in Not-For-Profit Organizations	324	(17)
Why Not-For-Profit?	325	(1)
Global Issue: Which Is Best for Society: Business or Not-For-Profit?	326	(1)
Importance of Revenue Source	326	(3)
Sources of Not-For-Profit Revenue	327	(1)
Patterns of Influence on Strategic Decision Making	327	(2)
Usefulness of Strategic Management Concepts and Techniques	329	(1)
Impact of Constraints on Strategic Management	329	(3)
Impact on Strategy Formulation	330	(1)
Impact on Strategy Implementation	331	(1)
Impact on Evaluation and Control	332	(1)
Popular Not-For-Profit Strategies	332	(3)
Strategic Piggybacking	332	(1)
Mergers	333	(1)
Strategic Alliances	333	(2)
Impact of the Internet on Not-For-Profit Organizations	335	(6)
Taxation	335	(1)
Improvement of Government Services	335	(1)
Impact on Other Not-For-Profit Organizations	336	(1)
Internet Issue: The Not-For-Profit Organizations That Rule the Internet	336	(5)
PART SIX Introduction to Case Analysis	341
Suggestions for Case Analysis	341
The Case Method	342	(1)
Researching the Case Situation	342	(1)
Financial Analysis: A Place to Begin	342	(6)
Analyzing Financial Statements	343	(3)
Common-Size Statements	346	(1)
Z-Value, Index of Sustainable Growth, and Free Cash Flow	346	(1)
Useful Economic Measures	347	(1)
Global Issue: Why Consider Inflation in Case Analysis?	348	(1)
Format for Case Analysis: The Strategic Audit	348	(3)
Impact of the Internet on Case Analysis	351
Finding a Company's Web Site	351	(1)
Internet Issue: Top 10 Internet Scams	352	(1)
Using a Search Engine	352	(1)
Finding More Information	352	(3)
Resources for Case Research	355	(2)
Suggested Case Analysis Methodology Using the Strategic Audit	357	(4)
Example of Student-Written Strategic Audit	361
PART SEVEN Cases in Strategic Management
Corporate Governance, Social Responsibility, and Ethics
The Recalcitrant Director at Byte Products, Inc.: Corporate Legality Versus Corporate Responsibility	1	(1)
Dan R. Dalton
Richard A. Cosier
Cathy A. Enz
The Wallace Group	1	(1)
Laurence J. Stybel
The Audit	1
John A. Kilpatrick
Gamewell D. Gantt
George A. Johnson