Strategic Management and Competitive Advantage : Concepts

by Barney, Jay; Hesterly, William

• ISBN13: 9780131547162
• ISBN10: 013154716X
• Format: Paperback
• Copyright: 2006-01-01
• Publisher: Pearson College Div

Summary

For courses in strategy/strategic management. For professors who want students to see connections between big ideas in strategy (thus understanding vs. memorizing), Barney/Hesterly provides an organizing framework (VRIO) as the foundation of the text. Students have a clear decision-making framework to use in analyzing cases and business situations.

Table of Contents

Part 1: THE TOOLS OF STRATEGIC ANALYSIS
What Is Strategy and the Strategic Management Process?	2	(30)
Opening Case: What Has Napster Wrought?	2	(3)
Strategy and the Strategic Management Process	5	(7)
Defining Strategy	5	(1)
The Strategic Management Process	5	(7)
What Is Competitive Advantage?	12	(3)
Research Made Relevant: How Sustainable Are Competitive Advantages?	14	(1)
The Strategic Management Process, Revisited	14	(1)
Measuring Competitive Advantage	15	(1)
Accounting Measures of Competitive Advantage	15	(7)
Global Perspectives: Accounting Around the World	16	(3)
Economic Measures of Competitive Advantage	19	(2)
Strategy in Depth: Estimating a Firm's Weighted Average Cost of Capital	21	(1)
The Relationship Between Economic and Accounting Performance Measures	22	(1)
Emergent Versus Intended Strategies	22	(3)
Ethics and Strategy: Stockholders Versus Stakeholders	23	(2)
Why You Need to Know About Strategy	25	(7)
Strategy in the Emerging Enterprise: Emergent Strategies and Entrepreneurship	26	(1)
The Strategic Management Process in an International Context	27	(1)
Summary	28	(2)
Challenge Questions	30	(1)
Problem Set	30	(1)
End Notes	31	(1)
Evaluating a Firm's External Environment	32	(42)
Opening Case: Can TiVo Change the Way You Watch TV?	32	(2)
Understanding a Firm's General Environment	34	(5)
Global Perspectives: Pokemon Invades Louis Vuitton	37	(2)
The Structure-Conduct-Performance Model of Firm Performance	39	(2)
Ethics and Strategy: Is a Firm Gaining a Competitive Advantage Good for Society?	40	(1)
The Five Forces Model of Environmental Threats	41	(14)
Strategy in Depth: The S-C-P Model and the Five Forces Framework	42	(1)
The Threat of Entry	43	(5)
The Threat of Rivalry	48	(1)
The Threat of Substitutes	49	(1)
The Threat of Suppliers	49	(2)
The Threat of Buyers	51	(1)
The Five Forces Model and Average Industry Performance	52	(1)
Another Environmental Force: Complementors	53	(1)
Research Made Relevant: The Impact of Industry and Firm Characteristics on Firm Performance	54	(1)
Industry Structure and Environmental Opportunities	55	(9)
Opportunities in Fragmented Industries: Consolidation	56	(1)
Opportunities in Emerging Industries: First-Mover Advantages	56	(3)
Opportunities in Mature Industries: Product Refinement, Service, and Process Innovation	59	(1)
Strategy in the Emerging Enterprise: Microsoft Grows Up	60	(2)
Opportunities in Declining Industries: Leadership, Niche, Harvest, and Divestment	62	(2)
Threat and Opportunity Analysis in an International Context	64	(10)
Analysis of Environmental Threats in an International Context	64	(2)
Analysis of Opportunities in an International Context	66	(2)
Summary	68	(2)
Challenge Questions	70	(1)
Problem Set	70	(1)
End Notes	71	(3)
Evaluating a Firm's Internal Capabilities	74	(20)
Opening Case: Electronic Arts---They're in the Game	74	(2)
The Resource-Based View of the Firm	76	(2)
What Are Resources and Capabilities?	76	(1)
Critical Assumptions of the Resource-Based View	77	(1)
Strategy in Depth: Ricardian Economics and the Resource-Based View	78	(1)
The VRIO Framework	78	(16)
The Question of Value	79	(2)
Global Perspectives: Does It Pay to Be an American Beer in Europe?	81	(1)
Strategy in the Emerging Enterprise: Who Is Yahoo!?	82	(2)
Ethics and Strategy: Externalities and the Broader Consequences of Profit Maximization	84	(2)
The Question of Rarity	86	(1)
The Question of Imitability	87	(5)
Research Made Relevant: Strategic Human Resource Management Research	92	(1)
The Question of Organization	93	(1)
Applying the VRIO Framework	94	(20)
Applying the VRIO Framework to Dell Computer	96	(2)
Imitation and Competitive Dynamics in an Industry	98	(4)
Not Responding to Another Firm's Competitive Advantage	98	(2)
Changing Tactics in Response to Another Firm's Competitive Advantage	100	(1)
Changing Strategies in Response to Another Firm's Competitive Advantage	101	(1)
Implications of the Resource-Based View	102	(4)
Where Does the Responsibility for Competitive Advantage in a Firm Reside?	102	(1)
Competitive Parity and Competitive Advantage	103	(1)
Difficult-to-Implement Strategies	104	(1)
Socially Complex Resources	105	(1)
The Role of Organization	105	(1)
Internal Analysis in an International Context	106	(8)
Exploiting Current Resource Advantages in New Markets	106	(1)
Developing New Resources and Capabilities in New Markets	107	(1)
Summary	108	(2)
Challenge Questions	110	(1)
Problem Set	110	(1)
End Notes	111	(3)
Part 2: BUSINESS LEVEL STRATEGIES
Cost Leadership	114	(30)
Opening Case: Can Wal-Mart Keep It Going?	114	(2)
What Is Business Level Strategy?	116	(1)
What Is Cost Leadership?	116	(10)
Sources of Cost Advantages	117	(6)
Research Made Relevant: The Consolidation of the U.S. Beer Market---Did Buy Pay Too Much?	123	(2)
Ethics and Strategy: The Race to the Bottom	125	(1)
The Value of Cost Leadership	126	(3)
Cost Leadership and the Threat of Entry	126	(1)
Cost Leadership and the Threat of Rivalry	126	(1)
Strategy in Depth: The Economics of Cost Leadership	127	(1)
Cost Leadership and the Threat of Substitutes	128	(1)
Cost Leadership and the Threat of Suppliers	128	(1)
Cost Leadership and the Threat of Buyers	129	(1)
Cost Leadership and Sustained Competitive Advantage	129	(6)
The Rarity of Sources of Cost Advantage	129	(2)
The Imitability of Sources of Cost Advantage	131	(1)
Strategy in the Emerging Enterprise: The Oakland A's: Inventing a New Way to Play Competitive Baseball	132	(3)
Organizing to Implement Cost Leadership	135	(4)
Organizational Structure in Implementing Cost Leadership	135	(3)
Management Controls in Implementing Cost Leadership	138	(1)
Compensation Policies and Implementing Cost Leadership Strategies	139	(1)
Cost Leadership in an International Context	139	(5)
Global Perspectives: The Rise of the Maquiladora	140	(1)
Summary	141	(1)
Challenge Questions	142	(1)
Problem Set	142	(1)
End Notes	143	(1)
Product Differentiation	144	(34)
Opening Case: Who Is Victoria, and What Is Her Secret?	146	(1)
What Is Product Differentiation?	146	(7)
Bases of Product Differentiation	147	(1)
Research Made Relevant: Discovering the Bases of Product Differentiation	148	(5)
Product Differentiation and Creativity	153	(1)
The Value of Product Differentiation	153	(5)
Product Differentiation and Environmental Threats	153	(1)
Strategy in Depth: The Economics of Product Differentiation	154	(2)
Product Differentiation and Environmental Opportunities	156	(1)
Ethics and Strategy: Product Claims and the Ethical Dilemmas in Health Care	157	(1)
Product Differentiation and Sustained Competitive Advantage	158	(6)
Rare Bases for Product Differentiation	158	(1)
The Imitability of Product Differentiation	158	(6)
Organizing to Implement Product Differentiation	164	(5)
Organizational Structure and Implementing Product Differentiation	165	(1)
Management Controls and Implementing Product Differentiation	165	(3)
Strategy in the Emerging Enterprise: Can Only Small Firms Be Innovative?	168	(1)
Compensation Policies and Implementing Product Differentiation Strategies	168	(1)
Can Firms Implement Product Differentiation and Cost Leadership Simultaneously?	169	(2)
No: These Strategies Cannot Be Implemented Simultaneously	169	(1)
Yes: These Strategies Can Be Implemented Simultaneously	170	(1)
Product Differentiation in an International Context	171	(7)
Global Perspectives: International Marketing Blunders	172	(2)
Summary	174	(1)
Challenge Questions	175	(1)
Problem Set	175	(1)
End Notes	176	(2)
Part 3: CORPORATE STRATEGIES
Vertical Integration	178	(28)
Opening Case: Who Am I Calling?	178	(2)
What Is Corporate Strategy?	180	(1)
What Is Vertical Integration?	180	(3)
Strategy in Depth: Measuring Vertical Integration	182	(1)
The Value of Vertical Integration	183	(12)
Vertical Integration and the Threat of Opportunism	183	(2)
Vertical Integration and Firm Capabilities	185	(1)
Vertical Integration and Flexibility	186	(2)
Research Made Relevant: Empirical Tests of Theories of Vertical Integration	188	(1)
Applying the Theories to the Management of Call Centers	188	(2)
Integrating Different Theories of Vertical Integration	190	(1)
Vertical Integration and Sustained Competitive Advantage	190	(1)
Ethics and Strategy: The Ethics of Outsourcing	191	(1)
The Rarity of Vertical Integration	191	(2)
Global Perspectives: Producing a Hindi Version of The Osbournes	193	(1)
The Instability of Vertical Integration	194	(1)
Organizing to Implement Vertical Integration	195	(5)
Organizational Structure and Implementing Vertical Integration	195	(1)
Strategy in the Emerging Enterprise: Oprah, Inc.	196	(1)
Management Controls and Implementing Vertical Integration	197	(1)
Compensation in Implementing Vertical Integration Strategies	198	(2)
Vertical Integration in an International Context	200	(6)
Summary	202	(2)
Challenge Questions	204	(1)
Problem Set	204	(1)
End Notes	205	(1)
Corporate Diversification	206	(38)
Opening Case: X-Box Is Coming	206	(2)
What Is Corporate Diversification?	208	(5)
Types of Corporate Diversification	209	(1)
Global Perspectives: How Global Are Globally Diversified Firms?	210	(1)
Limited Corporate Diversification	210	(1)
Related Corporate Diversification	211	(2)
Unrelated Corporate Diversification	213	(1)
The Value of Corporate Diversification	213	(18)
What Are Valuable Economies of Scope?	213	(1)
Research Made Relevant: How Valuable Are Economies of Scope, on Average?	214	(6)
Strategy in the Emerging Enterprise: Gore-Tex and Guitar Strings	220	(8)
Can Equity Holders Realize These Economies of Scope on Their Own?	228	(1)
Ethics and Strategy: Globalization and the Threat of the Multinational Firm	229	(2)
Corporate Diversification and Sustained Competitive Advantage	231	(3)
The Rarity of Diversification	231	(1)
The Imitability of Diversification	231	(1)
Strategy in Depth: Risk-Reducing Diversification and a Firm's Other Stakeholders	232	(2)
Corporate Diversification in an International Context	234	(10)
Financial Risks and International Diversification	235	(1)
Political Risks and International Diversification	235	(1)
Global Perspectives: Using International Strategies to Avoid Taxes	236	(3)
Summary	239	(1)
Challenge Questions	240	(1)
Problem Set	240	(1)
End Notes	241	(3)
Organizing to Implement Corporate Diversification	244	(32)
Opening Case: Corporate Crooks	244	(2)
Organizational Structure and Implementing Corporate Diversification	246	(13)
Strategy in Depth: Agency Conflicts Between Managers and Equity Holders	248	(1)
The Board of Directors	249	(1)
Research Made Relevant: The Effectiveness of Boards of Directors	250	(2)
Global Perspectives: The Family Firm in the United States and the World	252	(1)
Institutional Owners	252	(2)
The Senior Executive	254	(1)
Corporate Staff	255	(2)
Division General Manager	257	(1)
Shared Activity Managers	257	(2)
Management Controls and Implementing Corporate Diversification	259	(7)
Evaluating Divisional Performance	259	(3)
Allocating Corporate Capital	262	(1)
Transferring Intermediate Products	263	(3)
Compensation Policies and Implementing Corporate Diversification	266	(2)
Strategy in the Emerging Enterprise: Transforming Big Business into Entrepreneurship	267	(1)
Organizing to Implement Corporate Diversification in an International Context	268	(8)
Ethics and Strategy: When Is Enough Too Much?	269	(3)
Summary	272	(1)
Challenge Questions	273	(1)
Problem Set	273	(1)
End Notes	274	(2)
Strategic Alliances	276	(32)
Opening Case: Original Programming at HBO	276	(2)
What Is a Strategic Alliance?	278	(1)
How Do Strategic Allicances Create Value?	279	(9)
Strategic Alliance Opportunities	279	(3)
Strategy in Depth: Winning Learning Races	282	(2)
Global Perspectives: Can You Hear Me Now?	284	(2)
Research Made Relevant: Do Strategic Alliances Facilitate Tacit Collusion?	286	(2)
Alliance Threats: Incentives to Cheat on Strategic Alliances	288	(4)
Adverse Selection	288	(1)
Moral Hazard	289	(1)
Strategy in the Emerging Enterprise: Disney and Pixar Have a Falling Out	290	(1)
Holdup	291	(1)
Strategic Alliances and Sustained Competitive Advantage	292	(5)
The Rarity of Strategic Alliances	292	(1)
Ethics and Strategy: When It Comes to Alliances, Do ``Cheaters Never Prosper?''	293	(1)
The Imitability of Strategic Alliances	294	(3)
Organizing to Implement Strategic Alliances	297	(6)
Explicit Contracts and Legal Sanctions	297	(3)
Equity Investments	300	(1)
Firm Reputations	300	(1)
Joint Ventures	301	(1)
Trust	302	(1)
Strategic Alliances in an International Context	303	(5)
Summary	304	(1)
Challenge Questions	305	(1)
Problem Set	305	(1)
End Notes	306	(2)
Mergers and Acquisitions	308	(35)
Opening Case: The Case of the Twin Mergers	308	(3)
What Are Mergers and Acquisitions?	311	(1)
The Value of Mergers and Acquisitions	312	(7)
Mergers and Acquisitions: The Unrelated Case	313	(1)
Mergers and Acquisitions: The Related Case	314	(4)
Strategy in the Emerging Enterprise: Cashing Out	318	(1)
What Does Research Say About Returns to Mergers and Acquisitions?	319	(4)
Why Are There So Many Mergers and Acquisitions?	319	(1)
Strategy in Depth: Evaluating the Performance Effects of Acquisitions	320	(3)
Mergers and Acquisitions and Sustained Competitive Advantage	323	(13)
Valuable, Rare, and Private Economies of Scope	323	(1)
Valuable, Rare, and Costly-to-Imitate Economies of Scope	324	(1)
Unexpected Valuable Economies of Scope Between Bidding and Target Firms	325	(1)
Implications for Bidding Firm Managers	326	(4)
Global Perspectives: Ford's Acquisition of Jaguar	330	(2)
Implications for Target Firm Managers	332	(1)
Research Made Relevant: The Wealth Effects of Management Responses to Takeover Attempts	333	(3)
Organizing to Implement a Merger or Acquisition	336	(2)
Mergers and Acquisitions in an International Context	338	(5)
Summary	340	(1)
Challenge Questions	341	(1)
Problem Set	341	(1)
End Notes	342	(1)
Appendix: Analyzing Cases and Preparing for Class Discussions	343	(4)
Illustration/Photo Credits	347	(2)
Glossary	349	(8)
Company Index	357	(2)
Name Index	359	(4)
Subject Index	363