Strategic Management: Concepts

by David, Fred R.

• ISBN13: 9780131869554
• ISBN10: 0131869558
• Edition: 11th
• Format: Paperback
• Copyright: 2009-01-01
• Publisher: Pearson College Div

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	p. xviii
Overview of Strategic Management	p. 2
The Nature of Strategic Management	p. 2
What Is Strategic Management?	p. 5
Defining Strategic Management	p. 5
Stages of Strategic Management	p. 5
Integrating Intuition and Analysis	p. 7
Adapting to Change	p. 8
Key Terms in Strategic Management	p. 8
Competitive Advantage	p. 8
Strategists	p. 10
Vision and Mission Statements	p. 11
External Opportunities and Threats	p. 12
Internal Strengths and Weaknesses	p. 12
Long-Term Objectives	p. 13
Strategies	p. 13
Annual Objectives	p. 13
Policies	p. 13
The Strategic-Management Model	p. 15
Benefits of Strategic Management	p. 16
Financial Benefits	p. 17
Nonfinancial Benefits	p. 18
Why Some Firms Do No Strategic Planning	p. 18
Pitfalls in Strategic Planning	p. 19
Guidelines for Effective Strategic Management	p. 20
Business Ethics and Strategic Management	p. 21
Comparing Business and Military Strategy	p. 26
The Nature of Global Competition	p. 28
Advantages and Disadvantages of International Operations	p. 28
Cohesion Case: Google Inc.-2005	p. 34
Experiential Exercises	p. 50
Google (GOOG)	p. 50
Developing a Code of Business Ethics for Google (GOOG)	p. 50
The Ethics of Spying on Competitors	p. 51
Strategic Planning for My University	p. 52
Strategic Planning at a Local Company	p. 52
Does My University Recruit in Foreign Countries?	p. 53
Getting Familiar with SMCO	p. 53
Strategy Formulation	p. 54
The Business Vision and Mission	p. 54
What Do We Want to Become?	p. 56
What Is Our Business?	p. 59
Vision Versus Mission	p. 60
The Process of Developing a Mission Statement	p. 61
Importance of Vision and Mission Statements	p. 61
A Resolution of Divergent Views	p. 62
Characteristics of a Mission Statement	p. 64
A Declaration of Attitude	p. 64
A Customer Orientation	p. 66
A Declaration of Social Policy	p. 68
Mission Statement Components	p. 70
Writing and Evaluating Mission Statements	p. 70
Experiential Exercises	p. 77
Evaluating Mission Statements	p. 77
Writing a Vision and Mission Statement for Google (GOOG)	p. 78
Writing a Vision and Mission Statement for My University	p. 78
Conducting Mission Statement Research	p. 79
The External Assessment	p. 80
The Nature of an External Audit	p. 82
Key External Forces	p. 83
The Process of Performing an External Audit	p. 83
The Industrial Organization (I/O) View	p. 84
Economic Forces	p. 85
Russia's Economy	p. 87
Social, Cultural, Demographic, and Environmental Forces	p. 87
The U.S.-Mexico Border	p. 89
Political, Governmental, and Legal Forces	p. 90
Technological Forces	p. 93
Competitive Forces	p. 94
Competitive Intelligence Programs	p. 96
Cooperation Among Competitors	p. 98
Market Commonality and Resource Similarity	p. 99
Competitive Analysis: Porter's Five-Forces Model	p. 100
Rivalry Among Competing Firms	p. 101
Potential Entry of New Competitors	p. 102
Potential Development of Substitute Products	p. 103
Bargaining Power of Suppliers	p. 103
Bargaining Power of Consumers	p. 103
Sources of External Information	p. 104
Forecasting Tools and Techniques	p. 104
Making Assumptions	p. 105
The Global Challenge	p. 106
Multinational Corporations	p. 106
Globalization	p. 107
China: Opportunities and Threats	p. 108
Industry Analysis: The External Factor Evaluation (EFE) Matrix	p. 110
The Competitive Profile Matrix (CPM)	p. 111
Experiential Exercises	p. 117
Developing an EFE Matrix for Google (GOOG)	p. 117
The External Assessment	p. 117
Developing an EFE Matrix for My University	p. 117
Developing a Competitive Profile Matrix for Google (GOOG)	p. 118
Developing a Competitive Profile Matrix for My University	p. 118
The Internal Assessment	p. 120
The Nature of an Internal Audit	p. 122
Key Internal Forces	p. 123
The Process of Performing an Internal Audit	p. 123
The Resource-Based View (RBV)	p. 125
Integrating Strategy and Culture	p. 126
U.S. Versus Foreign Cultures	p. 128
Management	p. 131
Planning	p. 131
Organizing	p. 133
Motivating	p. 134
Staffing	p. 135
Controlling	p. 135
Management Audit Checklist of Questions	p. 136
Marketing	p. 136
Customer Analysis	p. 136
Selling Products/Services	p. 137
Product and Service Planning	p. 137
Pricing	p. 138
Distribution	p. 138
Marketing Research	p. 139
Opportunity Analysis	p. 139
Marketing Audit Checklist of Questions	p. 139
Finance/Accounting	p. 140
Finance/Accounting Functions	p. 141
Basic Types of Financial Ratios	p. 142
Finance/Accounting Audit Checklist	p. 147
Production/Operations	p. 147
Production/Operations Audit Checklist	p. 149
Research and Development	p. 149
Internal and External R&D	p. 151
Research and Development Audit	p. 152
Management Information Systems	p. 152
Strategic-Planning Software	p. 153
Management Information Systems Audit	p. 154
Value Chain Analysis (VCA)	p. 154
Benchmarking	p. 157
The Internal Factor Evaluation (IFE) Matrix	p. 157
Experiential Exercises	p. 164
Performing a Financial Ratio Analysis for Google (GOOG)	p. 164
Constructing an IFE Matrix for Google (GOOG)	p. 164
Constructing an IFE Matrix for My University	p. 164
Strategies in Action	p. 166
Long-Term Objectives	p. 168
The Nature of Long-Term Objectives	p. 168
Financial Versus Strategic Objectives	p. 169
Not Managing by Objectives	p. 170
The Balanced Scorecard	p. 170
Types of Strategies	p. 171
Levels of Strategies	p. 172
Integration Strategies	p. 174
Forward Integration	p. 174
Backward Integration	p. 175
Horizontal Integration	p. 176
Intensive Strategies	p. 177
Market Penetration	p. 177
Market Development	p. 178
Product Development	p. 179
Diversification Strategies	p. 180
Related Diversification	p. 181
Unrelated Diversification	p. 182
Defensive Strategies	p. 184
Retrenchment	p. 184
Divestiture	p. 186
Liquidation	p. 186
Michael Porter's Five Generic Strategies	p. 188
Cost Leadership Strategies (Type 1 and Type 2)	p. 189
Differentiation Strategies (Type 3)	p. 191
Focus Strategies (Type 4 and Type 5)	p. 192
Strategies for Competing in Turbulent, High-Velocity Markets	p. 193
Means for Achieving Strategies	p. 193
Joint Venture/Partnering	p. 193
Joint Ventures in Russia	p. 196
Merger/Acquisition	p. 197
First Mover Advantages	p. 200
Outsourcing	p. 201
Strategic Management in Nonprofit and Governmental Organizations	p. 203
Educational Institutions	p. 203
Medical Organizations	p. 203
Governmental Agencies and Departments	p. 204
Strategic Management in Small Firms	p. 205
Experiential Exercises	p. 210
What Strategies Should Google Pursue in 2006-2007?	p. 210
Examining Strategy Articles	p. 210
Classifying Some Year 2005 Strategies	p. 211
How Risky Are Various Alternative Strategies?	p. 211
Developing Alternative Strategies for My University	p. 212
Lessons in Globally Doing Business	p. 213
Strategy Analysis and Choice	p. 214
The Nature of Strategy Analysis and Choice	p. 216
The Process of Generating and Selecting Strategies	p. 218
A Comprehensive Strategy-Formulation Framework	p. 218
The Input Stage	p. 219
The Matching Stage	p. 220
The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix	p. 221
The Strategic Position and Action Evaluation (SPACE) Matrix	p. 225
The Boston Consulting Group (BCG) Matrix	p. 227
The Internal-External (IE) Matrix	p. 233
The Grand Strategy Matrix	p. 237
The Decision Stage	p. 239
The Quantitative Strategic Planning Matrix (QSPM)	p. 239
Positive Features and Limitations of the QSPM	p. 244
Cultural Aspects of Strategy Choice	p. 244
The Politics of Strategy Choice	p. 245
Governance Issues	p. 246
Experiential Exercises	p. 254
Developing a SWOT Matrix for Google	p. 254
Developing a SPACE Matrix for Google	p. 254
Developing a BCG Matrix for Google	p. 254
Developing a QSPM for Google	p. 255
Formulating Individual Strategies	p. 255
The Mach Test	p. 256
Developing a BCG Matrix for My University	p. 258
The Role of Boards of Directors	p. 258
Locating Companies in a Grand Strategy Matrix	p. 259
Strategy Implementation	p. 260
Implementing Strategies: Management and Operations Issues	p. 260
The Nature of Strategy Implementation	p. 262
Management Perspectives	p. 263
Annual Objectives	p. 264
Policies	p. 266
Resource Allocation	p. 268
Managing Conflict	p. 269
Matching Structure with Strategy	p. 270
The Functional Structure	p. 271
The Divisional Structure	p. 272
The Strategic Business Unit (SBU) Structure	p. 274
The Matrix Structure	p. 275
Some Do's and Don'ts in Developing Organizational Charts	p. 277
Restructuring, Reengineering, and E-Engineering	p. 278
Restructuring	p. 279
Reengineering	p. 280
Linking Performance and Pay to Strategies	p. 281
Managing Resistance to Change	p. 283
Managing the Natural Environment	p. 285
Creating a Strategy-Supportive Culture	p. 287
The Mexican Culture	p. 288
The Russian Culture	p. 289
The Japanese Culture	p. 290
Production/Operations Concerns When Implementing Strategies	p. 291
Human Resource Concerns When Implementing Strategies	p. 293
Employee Stock Ownership Plans (ESOPs)	p. 294
Balancing Work Life and Home Life	p. 295
Benefits of a Diverse Workforce	p. 297
Experiential Exercises	p. 302
Revising Google's Organizational Chart	p. 302
Do Organizations Really Establish Objectives?	p. 302
Understanding My University's Culture	p. 302
Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues	p. 304
The Nature of Strategy Implementation	p. 306
Marketing Issues	p. 306
Market Segmentation	p. 307
Does the Internet Make Market Segmentation Easier?	p. 310
Product Positioning	p. 310
Finance/Accounting Issues	p. 312
Acquiring Capital to Implement Strategies	p. 313
Projected Financial Statements	p. 318
Financial Budgets	p. 320
Evaluating the Worth of a Business	p. 322
Deciding Whether to Go Public	p. 324
Research and Development (R&D) Issues	p. 325
Management Information Systems (MIS) Issues	p. 327
Experiential Exercises	p. 332
Developing a Product-Positioning Map for Google	p. 332
Performing an EPS/EBIT Analysis for Google	p. 332
Preparing Projected Financial Statements for Google	p. 332
Determining the Cash Value of Google	p. 333
Developing a Product-Positioning Map for My University	p. 333
Do Banks Require Projected Financial Statements?	p. 333
Strategy Evaluation	p. 334
Strategy Review, Evaluation, and Control	p. 334
The Nature of Strategy Evaluation	p. 336
The Process of Evaluating Strategies	p. 339
A Strategy-Evaluation Framework	p. 340
Reviewing Bases of Strategy	p. 340
Measuring Organizational Performance	p. 342
Taking Corrective Actions	p. 344
The Balanced Scorecard	p. 346
Published Sources of Strategy-Evaluation Information	p. 346
Characteristics of an Effective Evaluation System	p. 348
Contingency Planning	p. 349
Auditing	p. 351
The Environmental Audit	p. 352
Twenty-First-Century Challenges in Strategic Management	p. 353
The Art or Science Issue	p. 353
The Visible or Hidden Issue	p. 354
The Top-Down or Bottom-Up Approach	p. 354
Experiential Exercises	p. 358
Preparing a Strategy-Evaluation Report for Google	p. 358
Evaluating My University's Strategies	p. 358
Who Prepares an Environmental Audit?	p. 358
Strategic Management Case Analysis	p. 360
How to Prepare and Present a Case Analysis	p. 360
What Is a Strategic-Management Case?	p. 362
Guidelines for Preparing Case Analyses	p. 362
The Need for Practicality	p. 362
The Need for Justification	p. 362
The Need for Realism	p. 362
The Need for Specificity	p. 363
The Need for Originality	p. 363
The Need to Contribute	p. 363
Preparing a Case for Class Discussion	p. 363
The Case Method Versus Lecture Approach	p. 364
The Cross-Examination	p. 364
Preparing a Written Case Analysis	p. 364
The Executive Summary	p. 365
The Comprehensive Written Analysis	p. 365
Steps in Preparing a Written Case Analysis	p. 365
Making an Oral Presentation	p. 366
Organizing the Presentation	p. 366
Controlling Your Voice	p. 366
Managing Body Language	p. 367
Speaking from Notes	p. 367
Constructing Visual Aids	p. 367
Answering Questions	p. 367
Tips for Success in Case Analysis	p. 368
Content Tips	p. 368
Process Tips	p. 369
Sample Case Analysis Outline	p. 370
Steps in Presenting an Oral Case Analysis	p. 371
1. Introduction (2 minutes)	p. 371
2. Mission/Vision (4 minutes)	p. 371
3. Internal Assessment (8 minutes)	p. 371
4. External Assessment (8 minutes)	p. 371
5. Strategy Formulation (14 minutes)	p. 372
6. Strategy Implementation (8 minutes)	p. 372
7. Strategy Evaluation (2 minutes)	p. 373
8. Conclusion (4 minutes)	p. 373
Index	p. 374
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