Strategic Management: Concepts and Cases

by Carpenter, Mason; Sanders, Gerry

• ISBN13: 9780131453531
• ISBN10: 013145353X
• Edition: 2nd
• Format: Hardcover
• Copyright: 2009-01-01
• Publisher: Pearson College Div

Summary

Key Benefit-Carpenter/Sanders is the first book built around a dynamic perspective on strategyKey Topics-Three themes constitute the dynamic perspective on strategy: (1) changing strategies for changing times, (2) the integration of formulation and implementation, and (3) strategic leadership. Crafting Business Strategy for Dynamic Contexts-chapter 6 is the aggregate of much of the current research on dynamic strategies, including:Competitive Dynamics,Technological Changes, and Hypercompetition. After reading the chapter, students will learn models that guide them through formulating and implementing a strategy in a dynamic, or changing, environment.Strategy Diamond:The strategy diamond outlines five key elements necessary for creating a complete strategy: arenas, vehicles, differentiators, staging, and economic logic. The Strategy Diamond gives students a concrete model for considering all aspects of a strategy in order to create and implement a complete strategy. The arenas and staging elements deal specifically with the dynamic aspect of strategy. How Would You Do That" exercises-There are two of these robust exercises in each chapter, immersing students in the implementation challenges real companies face. The exercises allow implementation to remain in the forefront of the studentrs"s minds even in the formulation chapters.Market-For undergraduate/MBA strategic management courses. .

Table of Contents

PART ONE STRATEGY AND STRATEGIC LEADERSHIP IN DYNAMIC TIMES
Introducing Strategic Management	2	(24)
Three Overarching Themes	6	(1)
What Is Strategic Management?	7	(3)
The Strategic Leader's Perspective	7	(1)
Why Study Strategy?	8	(1)
What Is Strategy?	8	(1)
Business Strategy Versus Corporate Strategy	8	(2)
Strategy Formulation and Implementation	10	(6)
Strategy Formulation	10	(5)
Strategy Implementation Levers	15	(1)
How Would You Do That? 1.1
The Five Elements of Strategy at JetBlue	16	(3)
Strategic Leadership	19	(1)
What Is Competitive Advantage?	19	(3)
Determinants of Competitive Advantage	19	(1)
Fundamental Versus Dynamic Perspectives	20	(2)
Summary	22	(1)
Key Terms	23	(1)
Review Questions	23	(1)
How Would You Do That?	23	(1)
Group Activities	23	(1)
Endnotes	24	(2)
Leading Strategically Through Effective Vision and Mission	26	(34)
Strategic Leadership	29	(10)
What This Chapter Is About	29	(1)
The Roles Leaders Fill	29	(3)
The Skill Set of the Effective Strategic Leader: The Level5 Hierarchy	32	(1)
What Does It Take to Be a CEO?	33	(3)
What Makes an Effective Executive Team?	36	(3)
The Imprint of Strategic Leadership: Vision and Mission	39	(1)
Defining Vision and Mission	39	(1)
How Would You Do That? 2.1
The Strategy for Finding the Right CEO	40	(4)
What Should Vision and Mission Statements Encompass?	42	(1)
Why Vision and Mission Statements Are Not Substitutes for Strategy	42	(1)
Goals and Objectives	43	(1)
Strategic Purpose and Strategic Coherence	44	(2)
Strategic Purpose	44	(1)
Strategic Coherence	45	(1)
Stakeholders and Stakeholder Analysis	46	(3)
Stakeholders and Strategy	47	(1)
Identifying Stakeholders	47	(2)
Ethics, Biases, and Strategic Decision Making	49	(1)
How Would You Do That? 2.2
Driving Stakeholder Analysis at Tritec Motors	50	(7)
Ethics and Strategy	52	(1)
Threats to Rational Strategic Decision Making	53	(4)
Summary	57	(1)
Key Terms	57	(1)
Review Questions	57	(1)
How Would You Do That?	58	(1)
Group Activities	58	(1)
Endnotes	58	(2)
PART TWO THE INTERNAL AND EXTERNAL ENVIRONMENT OF STRATEGY
Examining the Internal Environment: Resources, Capabilities, and Activities	60	(26)
Internal Drivers of Strategy and Competitive Advantage	63	(3)
Models of Competitive Advantage	64	(1)
Management	64	(2)
Resources and Capabilities	66	(8)
Resources	66	(1)
Capabilities	67	(1)
The VRINE Model	68	(6)
Dynamic Capabilities	74	(1)
Resources as Stocks and Flows	74	(1)
How Would You Do That? 3.1
How Do Drug Patents Stand Up to VRINE?	75	(2)
Rebundling Resources and Capabilities	76	(1)
The Value Chain	77	(3)
Tradeoff Protection	78	(2)
Outsourcing and the Value Chain	80	(1)
Strategic Leadership: Linking Resources and Capabilities to Strategy	80	(3)
Senior Managers	81	(1)
Middle Managers	81	(2)
Summary	83	(1)
Key Terms	84	(1)
Review Questions	84	(1)
How Would You Do That?	84	(1)
Group Activities	84	(1)
Endnotes	84	(2)
Exploring the External Environment: Macro and Industry Dynamics	86	(36)
The External Context of Strategy	89	(2)
Industry- and Firm-Specific Factors	89	(1)
Fundamental Characteristics of the External Context	90	(1)
Key Questions	91	(1)
Macro Environment	91	(4)
Pestel Analysis	91	(3)
Globalization	94	(1)
Industry Analysis	95	(11)
I/O Economics and Key Success Factors	96	(1)
What Is an Industry?	97	(1)
A Model of Industry Structure	98	(7)
Strategic Group and Competitor Analysis	105	(1)
How Would You Do That? 4.1
A Five-Forces---Plus Complementors---Analysis of the U.S. Airline Industry	106	(3)
Dynamic Characteristics of the External Context	109	(6)
Drivers of Change: Making the Five-Forces Model Dynamic	110	(4)
When Industries Divide	114	(1)
When Industries Collide	115	(1)
Using Scenarios to Predict the Future	115	(3)
Scenario Planning	116	(2)
How Would You Do That? 4.2
Develop Scenarios for Credit Unions	118	(1)
Summary	119	(1)
Key Terms	119	(1)
Review Questions	120	(1)
How Would You Do That?	120	(1)
Group Activities	120	(1)
Endnotes	120	(2)
PART THREE BUSINESS, CORPORATE, AND GLOBAL STRATEGIES
Creating Business Strategies	122	(28)
An Introduction to Business Strategies	125	(1)
Types of Strategies---Finding a Position That Works	126	(6)
Strategic Positioning and the Generic Strategy Model	126	(1)
Generic Strategies	126	(6)
Economic Drivers of Strategic Positioning	132	(4)
Drivers of Low-Cost Advantage	132	(4)
How Would You Do That? 5.1
How to Take the Learning Curve on Two Wheels	136	(3)
Threats to Successful Competitive Positioning	139	(2)
Threats to Low-Cost Positions	139	(1)
Threats to Differentiation Positions	140	(1)
Threats to Focus Positions	141	(1)
Threats to Integrated Positions	141	(1)
Strategy and Fit with Industry Conditions	141	(4)
Strategies for Different Industry Conditions	142	(3)
Testing the Quality of a Strategy	145	(2)
Does Your Strategy Exploit Your Firm's Resources and Capabilities?	145	(1)
Does Your Strategy Fit with Current Industry Conditions?	145	(1)
Are Your Differentiators Sustainable?	146	(1)
Are the Elements of Your Strategy Consistent and Aligned with Your Strategic Position?	147	(1)
Can Your Strategy Be Implemented?	147	(1)
Summary	147	(1)
Key Terms	148	(1)
Review Questions	148	(1)
How Would You Do That?	149	(1)
Group Activities	149	(1)
Endnotes	149	(1)
Crafting Business Strategy for Dynamic Contexts	150	(34)
Strategy and Dynamic Contexts	153	(1)
The Challenges to Sustainable Competitive Advantage	153	(2)
Competitive Interaction	154	(1)
Industry Evolution	154	(1)
Technological Change	154	(1)
Speed of Change	154	(1)
Business Strategy and Competitive Interaction	155	(8)
Strategy and Strategic Positioning in the Face of Competition	155	(2)
Competitive Dynamics and the Positioning of Incumbents	157	(2)
The Pitfalls of the Retaliatory Mindset	159	(1)
First Movers, Second Movers, and Fast Followers	160	(3)
Strategies for Managing Industry Evolution	163	(3)
The Pressures of Commoditization	163	(3)
Strategies for Technological Changes	166	(3)
Creating New Markets	167	(2)
The Value Curve	169	(1)
Strategies for Turbulent and Hypercompetitive Markets	169	(1)
How Would You Do That? 6.1
[yellow tail]® Creates a New Value Curve in the Wine Industry	170	(7)
A Model for Competing in the Face of Hypercompetition	172	(3)
Putting a Value on Staging and Pacing	175	(2)
Formulating and Implementing Dynamic Strategies	177	(1)
How Would You Do That? 6.2
Integrating Formulation and Implementation in Dynamic Contexts: The Case of R.R. Donnelley	178	(3)
Focusing on Arenas and Staging	180	(1)
Summary	181	(1)
Key Terms	182	(1)
Review Questions	182	(1)
How Would You Do That?	182	(1)
Group Activities	182	(1)
Endnotes	183	(1)
Developing Corporate Strategy	184	(28)
Corporate Strategy	187	(4)
The Evolution of Diversification in the United States	189	(2)
Economic Logic of Diversification: Synergy	191	(5)
Economies of Scope	191	(1)
Revenue-Enhancement Synergies	192	(1)
Economic Benefits of Diversification	193	(1)
Limits of Diversification Benefits	193	(2)
Resource Relatedness and Competitive Similarity	195	(1)
Ulterior Motives for Diversification	196	(1)
Forms of Scope and Diversification	196	(5)
Vertical Scope	196	(1)
Horizontal Scope	197	(2)
Geographic Scope	199	(2)
Who Should Own the Business?	201	(1)
Determining Comparative Value	201	(1)
How to Create Value	201	(1)
Competitive Advantage and Corporate Strategy	202	(2)
Arenas	202	(1)
Resources	202	(1)
Implementation	203	(1)
Corporate Strategy in Stable and Dynamic Contexts	204	(4)
Corporate Strategy in Stable Contexts	204	(1)
Corporate Strategy in Dynamic Contexts	205	(3)
How Would You Do That? 7.1
Diversification in a Dynamic Context at Disney	208	(1)
Summary	209	(1)
Key Terms	209	(1)
Review Questions	210	(1)
How Would You Do That?	210	(1)
Group Activities	210	(1)
Endnotes	210	(2)
Looking at International Strategies	212	(34)
International Strategy	216	(1)
International Strategy and Competitive Advantage	217	(9)
The Pros and Cons of International Expansion	218	(1)
Key Factors in International Expansion	219	(7)
Entry Vehicles into Foreign Countries	226	(4)
Exporting	227	(2)
Alliances	229	(1)
Foreign Direct Investment	229	(1)
How Would You Do That? 8.1
Finding a Global Partner to Deliver the Goods	230	(3)
Importing and International Strategy	232	(1)
International Strategy Configurations	233	(4)
Multinational Configuration	234	(1)
International Configuration	234	(2)
Global Configuration	236	(1)
Transnational Configuration	236	(1)
Born-Global Firms	236	(1)
International Strategy in Stable and Dynamic Contexts	237	(3)
Global Context and Industry Life Cycle	238	(1)
Developing a Mind-Set for Global Dynamic Competitiveness	239	(1)
How Would You Do That? 8.2
Tactics for Developing Globally Minded Executives	240	(3)
Summary	243	(1)
Key Terms	243	(1)
Review Questions	243	(1)
How Would You Do That?	244	(1)
Group Activities	244	(1)
Endnotes	244	(2)
PART FOUR STRATEGY VEHICLES FOR NEW DIRECTIONS
Understanding Alliances and Cooperative Strategies	246	(28)
Strategic Alliances	249	(2)
Form and Structure of Alliances	251	(2)
Joint Ventures and Other Equity Alliances	252	(1)
Nonequity Alliances	252	(1)
Multiparty Alliances	252	(1)
Why Alliances?	253	(3)
Alliances and Competitive Advantage	253	(2)
Alliance Motivation over Time	255	(1)
Alliances as Strategy Vehicles	256	(6)
Alliances and Business Strategy	257	(2)
Corporate and International Strategic Alliances	259	(1)
Alliance Networks	260	(1)
Risks Arising from Alliances	260	(2)
Alliances in Stable and Dynamic Contexts	262	(1)
Relative Stability and Alliance Motivation	262	(1)
Relative Stability and the Coevolution Model of Corporate Strategy	263	(1)
What Makes an Alliance Successful?	263	(4)
Understanding the Determinants of Trust	264	(1)
Managing Knowledge and Learning	265	(1)
Understanding Alliance Evolution	266	(1)
Measuring Alliance Performance	266	(1)
How Would You Do That? 9.1
Managing Coevolution at Fuji Xerox	267	(3)
Dedicated Alliance Function	268	(1)
When Do Partners Fit?	268	(2)
How Would You Do That? 9.2
Assessing Alliance Fit at Millennium Pharmaceuticals	270	(1)
Summary	271	(1)
Key Terms	272	(1)
Review Questions	272	(1)
How Would You Do That?	272	(1)
Group Activities	272	(1)
Endnotes	272	(2)
Studying Mergers and Acquisitions	274	(28)
Motives for Mergers and Acquisitions	277	(3)
Differences Between Acquisitions and Mergers	277	(1)
Managerial Self-Interest	277	(1)
Hubris	278	(1)
Synergy	278	(2)
Mergers, Acquisitions, and Strategy	280	(3)
The Vehicle and Its Economic Logic	280	(2)
Benefits of Acquisition over Internal Development	282	(1)
Drawbacks of Acquisition over Internal Development	283	(1)
Types of Mergers and Acquisitions	283	(4)
Types of Acquisitions	283	(4)
Pricing and Premiums	287	(2)
Pricing	287	(1)
Premiums	288	(1)
How Would You Do That? 10.1
The Impact of Premiums on Required Synergies	289	(1)
The Acquisition Process	290	(3)
Stages of the Acquisition Process	290	(3)
Integrating and Implementing an Acquisition	293	(3)
Strategic Interdependence	293	(1)
Need for Autonomy	293	(1)
Types of Integration	294	(1)
The Implementation Process	295	(1)
Acquisitions in Different Industry Contexts	296	(2)
M&As and Industry Life Cycle	297	(1)
M&As in Dynamic Contexts	297	(1)
M&As and Coevolution	298	(1)
Summary	298	(1)
Key Terms	299	(1)
Review Questions	300	(1)
How Would You Do That?	300	(1)
Group Activities	300	(1)
Endnotes	300	(2)
PART FIVE IMPLEMENTATION, NEW VENTURES, AND GOVERNANCE IN DYNAMIC CONTEXTS
Employing Strategy Implementation Levers	302	(34)
Interdependence of Strategy Formulation and Implementation	305	(3)
A Model Company	306	(1)
The Knowing-Doing Gap	306	(2)
How Would You Do That? 11.1
Picking Up the Pieces at SAP	308	(1)
Implementation Levers	309	(9)
Structure	309	(2)
Forms of Organization Structure	311	(4)
Systems and Processes	315	(3)
How Would You Do That? 11.2
Developing a Balanced Scorecard for the NUWC	318	(4)
People and Rewards	319	(3)
Strategic Leadership and Strategy Implementation	322	(4)
Decisions About Levers	322	(1)
Decisions About Resource Allocation	323	(1)
Communicating with Key Stakeholders About Strategy	324	(2)
Implementation Levers in Global Firms and Dynamic Contexts	326	(5)
Implementation Solutions for Global Firms	326	(2)
Implementation Levers in Dynamic Contexts	328	(3)
Linking Strategy Implementation to Staging	331	(1)
Summary	331	(1)
Key Terms	332	(1)
Review Questions	332	(1)
How Would You Do That?	333	(1)
Group Activities	333	(1)
Endnotes	333	(3)
Considering New Ventures and Corporate Renewal	336	(30)
From New-Venture Creation to Corporate Renewal	339	(1)
New-Venture Creation Versus Corporate Renewal	339	(1)
Entrepreneurship and the Entrepreneurial Process	340	(3)
What Is Entrepreneurship?	340	(1)
The Entrepreneurial Process	341	(2)
New-Venture Creation and Corporate New Venturing	343	(4)
New-Venture Scenarios	343	(2)
Corporate New Venturing	345	(2)
Initial Public Offerings and Managerial Professionalism	347	(3)
How Does an IPO Work?	348	(1)
Cost of an IPO	348	(1)
An IPO or a More Formal Organization?	349	(1)
Why Do Organizations Fail?	350	(5)
External Causes of Organizational Failure	350	(3)
Internal Causes of Organizational Failure	353	(2)
Strategic Change and Organizational Renewal	355	(1)
The Change Process	355	(1)
How Would You Do That? 12.1
Are Jones Soda's Numbers Fizzy or Flat?	356	(4)
Turnaround Management	358	(2)
How Would You Do That? 12.2
A Successful Turnaround at ISH	360	(3)
Summary	363	(1)
Key Terms	364	(1)
Review Questions	364	(1)
How Would You Do That?	364	(1)
Group Activities	364	(1)
Endnotes	365	(1)
Corporate Governance in the Twenty-First Century	366	(279)
What Is Corporate Governance?	369	(1)
Corporate Governance and Competitive Advantage	370	(6)
Evidence That Governance Works	370	(3)
Corporate Governance and Strategy	373	(1)
The Major Parties in Corporate Governance	373	(1)
Codes of Governance	373	(3)
Ownership and the Roles of Owners	376	(1)
The Board of Directors	377	(5)
Insiders Versus Outsiders	378	(1)
The Board's Activities and the Company's Strategy	379	(3)
Executive Compensation	382	(1)
Executive Ownership	382	(1)
How Would You Do That? 13.1
Establishing Executive Ownership Requirements at Dendrite International	383	(5)
Incentive Compensation	384	(4)
The Market for Corporate Control	388	(1)
The Faces of Corporate Governance Around the World	389	(1)
Differing National Governance Practices	389	(1)
How Would You Do That? 13.2
How to Hire and Compensate the Big Banana	390	(3)
The Case of Germany	392	(1)
The Case of China	392	(1)
Summary	393	(1)
Key Terms	394	(1)
Review Questions	394	(1)
How Would You Do That?	394	(1)
Group Activities	394	(1)
Endnotes	395	(7)
PART SIX CASE STUDIES: PULLING IT ALL TOGETHER
Kmart---Fall of a Retailing Giant	402	(10)
Charlotte Beers at Ogilvy & Mather Worldwide (A)	412	(14)
Trilogy Farm (A)	426	(7)
The Formula One Constructors	433	(10)
Prince Edward Island Preserve Co.	443	(11)
Carrefour vs. Wal-Mart: The Battle for Global Retail Dominance	454	(22)
The Chinese Fireworks Industry	476	(7)
Home Depot's Strategy Under Bob Nardelli	483	(8)
Ryanair---The ``Southwest'' of European Airlines	491	(8)
Advanced Micro Devices---Life Beyond Intel	499	(9)
Airbus --- From Challenger to Leader	508	(9)
Moving Tata Consultancy Services into the ``Global Top 10''	517	(11)
McDonald's and the McCafe Coffee Initiative	528	(6)
Coca-Cola's Re-Entry and Growth Strategies in China	534	(8)
Fuji Xerox and the Xerox Corp.: Turning Tables?	542	(10)
Neilson International in Mexico (A)	552	(7)
The HP-Compaq Merger Story	559	(10)
Cisco Systems, Inc.: Acquisition Integration for Manufacturing (A)	569	(18)
Multiplication of the Best Practices at Holcim: A History of Firsts	587	(11)
Implementation of the Balanced Scorecard as a Means of Corporate Learning: The Porsche Case	598	(7)
Blue Whale Moving Company, Inc. (A)	605	(10)
Reviving Iridium	615	(7)
DaimlerChrysler: Corporate Governance Dynamics in a Global Company	622	(15)
Trouble in the ``Magic Kingdom'' ---Governance Problems at Disney	637	(8)
Case index	645	(8)
Glossary	653	(4)
Name index	657	(6)
Company/product index	663	(8)
Subject index	671	(16)
Photo credits	687