Strategic Management : Concepts

by David, Fred

• ISBN13: 9780131503465
• ISBN10: 0131503464
• Edition: 10th
• Format: Hardcover
• Copyright: 2005-01-01
• Publisher: PRENTICE HALL SCHOOL GROUP

Summary

Featuring a model that is widely used for strategic planning among consultants and companies worldwide, this current, well-written book offers a practitioner-oriented perspective, meets all AACSB guidelines, and focuses on skill-building in all major areas of strategy formation, implementation, and evaluation.Global, natural environment and e-commerce themes are evident throughout the book which also contains 46 Experiential Exercises. A five-part organization includes an overview of strategic management; coverage of strategic formulation, implementation, and evaluation; and a strategic management case analysis.For consultants and other strategic planners.

Table of Contents

Preface	xii
PART 1 Overview of Strategic Management	2	(46)
The Nature of Strategic Management	2	(46)
What Is Strategic Management?	5	(3)
Defining Strategic Management	5	(1)
Stages of Strategic Management	5	(2)
Integrating Intuition and Analysis	7	(1)
Adapting to Change	7	(1)
Key Terms in Strategic Management	8	(5)
Competitive Advantage	8	(1)
Strategists	9	(1)
Vision and Mission Statements	9	(1)
External Opportunities and Threats	10	(1)
Internal Strengths and Weaknesses	11	(1)
Long-Term Objectives	11	(1)
Strategies	12	(1)
Annual Objectives	12	(1)
Policies	13	(1)
The Strategic-Management Model	13	(2)
Benefits of Strategic Management	15	(2)
Financial Benefits	16	(1)
Nonfinancial Benefits	16	(1)
Why Some Firms Do No Strategic Planning	17	(1)
Pitfalls in Strategic Planning	18	(1)
Guidelines for Effective Strategic Management	18	(2)
Business Ethics and Strategic Management	20	(4)
Comparing Business and Military Strategy	24	(1)
The Nature of Global Competition	25	(7)
Advantages and Disadvantages of International Operations	27	(5)
Cohesion Case: Krispy Kreme Doughnuts, Inc.---2004	32	(12)
Experiential Exercises	44	(4)
Experiential Exercise 1A: Strategy Analysis for Krispy Kreme Doughnuts (KKD)	44	(1)
Experiential Exercise 1B: Developing a Code of Business Ethics for Krispy Kreme Doughnuts (KKD)	44	(1)
Experiential Exercise 1C: The Ethics of Spying on Competitors	45	(1)
Experiential Exercise 1D: Strategic Planning for My University	46	(1)
Experiential Exercise 1E: Strategic Planning at a Local Company	46	(1)
Experiential Exercise 1F: Does My University Recruit in Foreign Countries?	47	(1)
Experiential Exercise 1G: Getting Familiar with SMCO	47	(1)
PART 2 Strategy Formulation	48	(192)
The Business Vision and Mission	48	(24)
What Do We Want to Become?	50	(3)
What Is Our Business?	53	(2)
Vision versus Mission	53	(1)
The Process of Developing a Mission Statement	54	(1)
Importance of Vision and Mission Statements	55	(3)
A Resolution of Divergent Views	56	(2)
Characteristics of a Mission Statement	58	(5)
A Declaration of Attitude	58	(2)
A Customer Orientation	60	(2)
A Declaration of Social Policy	62	(1)
Components of a Mission Statement	63	(1)
Writing and Evaluating Mission Statements	63	(6)
Experiential Exercises	69	(3)
Experiential Exercise 2A: Evaluating Mission Statements	69	(1)
Experiential Exercise 2B: Writing a Vision and Mission Statement for Krispy Kreme Doughnuts (KKD)	70	(1)
Experiential Exercise 2C: Writing a Vision and Mission Statement for My University	70	(1)
Experiential Exercise 2D: Conducting Mission Statement Research	71	(1)
The External Assessment	72	(40)
The Nature of an External Audit	74	(2)
Key External Forces	75	(1)
The Process of Performing an External Audit	75	(1)
The Industrial Organization (I/O) View	76	(1)
Economic Forces	77	(2)
Russia's Economy	79	(1)
Social, Cultural, Demographic, and Environmental Forces	79	(4)
The U.S.---Mexican Border	81	(2)
Political, Governmental, and Legal Forces	83	(3)
Technological Forces	86	(1)
Competitive Forces	87	(5)
Competitive Intelligence Programs	89	(2)
Cooperation Among Competitors	91	(1)
Competitive Analysis: Porter's Five-Forces Model	92	(4)
Rivalry Among Competing Firms	94	(1)
Potential Entry of New Competitors	94	(1)
Potential Development of Substitute Products	95	(1)
Bargaining Power of Suppliers	95	(1)
Bargaining Power of Consumers	95	(1)
Sources of External Information	96	(1)
Forecasting Tools and Techniques	96	(1)
Making Assumptions	97	(1)
The Global Challenge	97	(4)
Multinational Corporations	98	(1)
Globalization	98	(1)
China: Opportunities and Threats	99	(2)
Industry Analysis: The External Factor Evaluation (EFE) Matrix	101	(3)
The Competitive Profile Matrix (CPM)	104	(5)
Experiential Exercises	109	(3)
Experiential Exercise 3A: Developing an EFE Matrix for Krispy Kreme Doughnuts (KKD)	109	(1)
Experiential Exercise 3B: The External Assessment	109	(1)
Experiential Exercise 3C: Developing an EFE Matrix for My University	109	(1)
Experiential Exercise 3D: Developing a Competitive Profile Matrix for Krispy Kreme Doughnuts (KKD)	110	(1)
Experiential Exercise 3E: Developing a Competitive Profile Matrix for My University	110	(2)
The Internal Assessment	112	(44)
The Nature of an Internal Audit	114	(3)
Key Internal Forces	114	(1)
The Process of Performing an Internal Audit	115	(2)
The Resource-Based View (RBV)	117	(1)
Integrating Strategy and Culture	118	(5)
American versus Foreign Cultures	120	(3)
Management	123	(5)
Planning	123	(2)
Organizing	125	(1)
Motivating	126	(1)
Staffing	127	(1)
Controlling	127	(1)
Management Audit Checklist of Questions	128	(1)
Marketing	128	(4)
Customer Analysis	128	(1)
Selling Products/Services	129	(1)
Product and Service Planning	129	(1)
Pricing	129	(1)
Distribution	130	(1)
Marketing Research	130	(2)
Opportunity Analysis	132	(1)
Marketing Audit Checklist of Questions	132	(1)
Finance/Accounting	132	(7)
Finance/Accounting Functions	132	(2)
Basic Types of Financial Ratios	134	(3)
Finance/Accounting Audit Checklist of Questions	137	(2)
Production/Operations	139	(2)
Production/Operations Audit Checklist of Questions	141	(1)
Research and Development	141	(3)
Internal and External R&D	143	(1)
Research and Development Audit Checklist of Questions	144	(1)
Management Information Systems	144	(2)
Strategic-Planning Software	145	(1)
Management Information Systems Audit Checklist of Questions	146	(1)
The Value Chain	146	(1)
The Internal Factor Evaluation (IFE) Matrix	147	(7)
Experiential Exercises	154	(2)
Experiential Exercise 4A: Performing a Financial Ratio Analysis for Krispy Kreme Doughnuts (KKD)	154	(1)
Experiential Exercise 4B: Constructing an IFE Matrix for Krispy Kreme Doughnuts (KKD)	154	(1)
Experiential Exercise 4C: Constructing an IFE Matrix for My University	154	(2)
Strategies in Action	156	(40)
Long-Term Objectives	158	(3)
The Nature of Long-Term Objectives	158	(1)
Financial versus Strategic Objectives	159	(1)
Not Managing by Objectives	159	(1)
Levels of Strategies	160	(1)
Types of Strategies	161	(3)
The Balanced Scorecard	162	(2)
Integration Strategies	164	(3)
Forward Integration	164	(1)
Backward Integration	165	(1)
Horizontal Integration	166	(1)
Intensive Strategies	167	(2)
Market Penetration	167	(1)
Market Development	167	(1)
Product Development	168	(1)
Diversification Strategies	169	(3)
Concentric Diversification	169	(2)
Horizontal Diversification	171	(1)
Conglomerate Diversification	171	(1)
Defensive Strategies	172	(4)
Retrenchment	172	(2)
Divestiture	174	(1)
Liquidation	175	(1)
Michael Porter's Generic Strategies	176	(2)
Cost Leadership Strategies	177	(1)
Differentiation Strategies	177	(1)
Focus Strategies	178	(1)
Means for Achieving Strategies	178	(6)
Joint Venture/Partnering	178	(3)
Joint Ventures in Russia	181	(1)
Merger/Acquisition	181	(3)
First Mover Advantages	184	(1)
Outsourcing	184	(1)
Strategic Management in Nonprofit and Governmental Organizations	185	(2)
Educational Institutions	185	(1)
Medical Organizations	186	(1)
Governmental Agencies and Departments	187	(1)
Strategic Management in Small Firms	187	(5)
Experiential Exercises	192	(4)
Experiential Exercise 5A: What Strategies Should Krispy Kreme Doughnuts (KKD) Pursue in 2004--2005?	192	(1)
Experiential Exercise 5B: Examining Strategy Articles	192	(1)
Experiential Exercise 5C: Classifying Some Year 2004 Strategies	193	(1)
Experiential Exercise 5D: How Risky Are Various Alternative Strategies?	193	(1)
Experiential Exercise 5E: Developing Alternative Strategies for My University	194	(1)
Experiential Exercise 5F: Lessons in Doing Business Globally	195	(1)
Strategy Analysis and Choice	196	(44)
The Nature of Strategy Analysis and Choice	198	(2)
The Process of Generating and Selecting Strategies	200	(1)
A Comprehensive Strategy-Formulation Framework	200	(1)
The Input Stage	201	(1)
The Matching Stage	202	(18)
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix	202	(5)
The Strategic Position and Action Evaluation (SPACE) Matrix	207	(5)
The Boston Consulting Group (BCG) Matrix	212	(2)
The Internal-External (IE) Matrix	214	(4)
The Grand Strategy Matrix	218	(2)
The Decision Stage	220	(4)
The Quantitative Strategic Planning Matrix (QSPM)	220	(4)
Positive Features and Limitations of the QSPM	224	(1)
Cultural Aspects of Strategy Choice	224	(1)
The Politics of Strategy Choice	225	(1)
Governance Issues	226	(8)
Experiential Exercises	234	(6)
Experiential Exercise 6A: Developing a SWOT Matrix for Krispy Kreme Doughnuts (KKD)	234	(1)
Experiential Exercise 6B: Developing a SPACE Matrix for Krispy Kreme Doughnuts (KKD)	234	(1)
Experiential Exercise 6C: Developing a BCG Matrix for Krispy Kreme Doughnuts (KKD)	234	(1)
Experiential Exercise 6D: Developing a QSPM for Krispy Kreme Doughnuts (KKD)	235	(1)
Experiential Exercise 6E: Formulating Individual Strategies	235	(1)
Experiential Exercise 6F: The Mach Test	236	(2)
Experiential Exercise 6G: Developing a BCG Matrix for My University	238	(1)
Experiential Exercise 6H: The Role of Boards of Directors	238	(1)
Experiential Exercise 6I: Locating Companies in a Grand Strategy Matrix	239	(1)
PART 3 Strategy Implementation	240	(68)
Implementing Strategies: Management and Operations Issues	240	(40)
The Nature of Strategy Implementation	242	(2)
Management Perspectives	243	(1)
Annual Objectives	244	(2)
Policies	246	(2)
Resource Allocation	248	(1)
Managing Conflict	249	(1)
Matching Structure with Strategy	250	(5)
The Functional Structure	251	(1)
The Divisional Structure	251	(2)
The Strategic Business Unit (SBU) Structure	253	(1)
The Matrix Structure	254	(1)
Restructuring, Reengineering and E-Engineering	255	(2)
Restructuring	256	(1)
Reengineering	257	(1)
Linking Performance and Pay to Strategies	257	(2)
Managing Resistance to Change	259	(2)
Managing the Natural Environment	261	(3)
Creating a Strategy-Supportive Culture	264	(4)
The Mexican Culture	265	(1)
The Russian Culture	265	(1)
The Japanese Culture	266	(2)
Production/Operations Concerns When Implementing Strategies	268	(1)
Human Resource Concerns When Implementing Strategies	269	(9)
Employee Stock Ownership Plans (ESOPs)	271	(1)
Balancing Work Life and Home Life	271	(2)
Benefits of a Diverse Workforce	273	(5)
Experiential Exercises	278	(2)
Experiential Exercise 7A: Revising Krispy Kreme Doughnuts' (KKD's) Organizational Chart	278	(1)
Experiential Exercise 7B: Do Organizations Really Establish Objectives?	278	(1)
Experiential Exercise 7C: Understanding My University's Culture	279	(1)
Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues	280	(28)
The Nature of Strategy Implementation	282	(1)
Marketing Issues	282	(6)
Market Segmentation	283	(4)
Does the Internet Make Market Segmentation Easier?	287	(1)
Product Positioning	287	(1)
Finance/Accounting Issues	288	(11)
Acquiring Capital to Implement Strategies	290	(3)
Projected Financial Statements	293	(2)
Financial Budgets	295	(2)
Evaluating the Worth of a Business	297	(2)
Deciding Whether to Go Public	299	(1)
Research and Development (R&D) Issues	299	(2)
Management Information Systems (MIS) Issues	301	(5)
Experiential Exercises	306	(2)
Experiential Exercise 8A: Developing a Product-Positioning Map for Krispy Kreme Doughnuts (KKD)	306	(1)
Experiential Exercise 8B: Performing an EPS/EBIT Analysis for Krispy Kreme Doughnuts (KKD)	306	(1)
Experiential Exercise 8C: Preparing Projected Financial Statements for Krispy Kreme Doughnuts (KKD)	306	(1)
Experiential Exercise 8D: Determining the Cash Value of Krispy Kreme Doughnuts (KKD)	307	(1)
Experiential Exercise 8E: Developing a Product-Positioning Map for My University	307	(1)
Experiential Exercise 8F: Do Banks Require Projected Financial Statements?	307	(1)
PART 4 Strategy Evaluation	308	(26)
Strategy Review, Evaluation, and Control	308	(26)
The Nature of Strategy Evaluation	310	(4)
The Process of Evaluating Strategies	313	(1)
A Strategy-Evaluation Framework	314	(6)
Reviewing Bases of Strategy	315	(2)
Measuring Organizational Performance	317	(1)
Taking Corrective Actions	318	(2)
The Balanced Scorecard	320	(1)
Published Sources of Strategy-Evaluation Information	320	(3)
Characteristics of an Effective Evaluation System	323	(1)
Contingency Planning	324	(1)
Auditing	325	(1)
The Environmental Audit	326	(1)
Twenty-First-Century Challenges in Strategic Management	326	(6)
The Art or Science Issue	326	(1)
The Visible or Hidden Issue	327	(1)
The Top-Down or Bottom-Up Approach	328	(4)
Experiential Exercises	332	(2)
Experiential Exercise 9A: Preparing a Strategy-Evaluation Report for Krispy Kreme Doughnuts (KKD)	332	(1)
Experiential Exercise 9B: Evaluating My University's Strategies	332	(1)
Experiential Exercise 9C: Who Prepares an Environmental Audit?	332	(2)
PART 5 Strategic Management Case Analysis	334	(15)
How to Prepare and Present a Case Analysis	334	(2)
What Is a Strategic Management Case?	336	(1)
Guidelines for Preparing Case Analyses	336	(1)
The Need for Practicality	336	(1)
The Need for Justification	336	(1)
The Need for Realism	336	(1)
The Need for Specificity	337	(1)
The Need for Originality	337	(1)
The Need to Contribute	337	(1)
Preparing a Case for Class Discussion	337	(1)
The Case Method versus Lecture Approach	338	(1)
The Cross-Examination	338	(1)
Preparing a Written Case Analysis	338	(2)
The Executive Summary	339	(1)
The Comprehensive Written Analysis	339	(1)
Steps in Preparing a Comprehensive Written Analysis	339	(1)
Making an Oral Presentation	340	(5)
Organizing the Presentation	340	(1)
Controlling Your Voice	340	(1)
Managing Body Language	341	(1)
Speaking from Notes	341	(1)
Constructing Visual Aids	341	(1)
Answering Questions	341	(1)
Tips for Success in Case Analysis	342	(1)
Content Tips	342	(1)
Process Tips	343	(1)
A Sample Case Analysis Outline	344	(1)
Sample Case Analysis Outline	345	(4)
Name Index	349	(3)
Subject Index	352	(5)
Company Index	357