Strategic Management : Concepts and Cases

by David, Fred R.

• ISBN13: 9780130269959
• ISBN10: 0130269956
• Edition: 8th
• Format: Hardcover
• Copyright: 2000-11-01
• Publisher: Prentice Hall

Summary

The tenth edition of "Strategic Management" is a current, well-written strategic management book with the most up-to-date compilation of cases available. Designed in functional four-color, it offers a popular practitioner-oriented perspective, focuses on skill-building in all major areas of strategy formation, implementation, and evaluation, and weaves three very contemporary themes throughout each chapter globalization, the natural environment, and e-commerce. 46 Experiential Exercises, and 43 cases are included. The author provides and overview of strategic management, as well as strategy formulation and implementation, strategy evaluation, strategic management case analysis, 46 Experiential Exercises and 43 cases including service company cases and manufacturing company cases. For management professionals, small business owners and others involved in business.

Table of Contents

Preface	viii
Introduction How to Analyze a Business Policy Case	xxii
What Is a Business Policy Case?	xxiv
Guidelines for Preparing Case Analyses	xxiv
The Need for Practicality	xxiv
The Need for Justification	xxiv
The Need for Realism	xxiv
The Need for Specificity	xxv
The Need for Originality	xxv
The Need to Contribute	xxv
Preparing a Case for Class Discussion	xxv
The Case Method Versus Lecture Approach	xxvi
The Cross-Examination	xxvi
Preparing a Written Case Analysis	xxvi
The Executive Summary	xxvii
The Comprehensive Written Analysis	xxvii
Steps in Preparing a Comprehensive Written Analysis	xxvii
Making an Oral Presentation	xxviii
Organizing the Presentation	xxviii
Controlling Your Voice	xxviii
Managing Body Language	xxviii
Speaking from Notes	xxix
Constructing Visual Aids	xxix
Answering Questions	xxix
Fifty Tips for Success in Case Analysis	xxix
PART 1 Overview of Strategic Management	2	(48)
The Nature of Strategic Management	2	(48)
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 Strtegic Management	8	(4)
Strategists	9	(1)
Vision and Mission Statements	9	(1)
External Opportunities and Threats	10	(1)
Internal Strengths and Weaknesses	10	(1)
Long-Term Objectives	11	(1)
Strategies	11	(1)
Annual Objectives	12	(1)
Policies	12	(1)
The Strategic-Management Model	12	(2)
Benefits of Strategic Management	14	(2)
Financial Benefits	15	(1)
Nonfinancial Benefits	15	(1)
Why Some Firms Do No Strategic Planning	16	(1)
Pitfalls in Strategic Planning	17	(1)
Guidelines for Effective Strategic Management	17	(2)
Business Ethics and Strategic Management	19	(4)
Comparing Business and Military Strategy	23	(1)
The Nature of Global Competition	23	(6)
Advantages and Disadvantages of International Operations	25	(4)
The Cohesion Case and Experiential Exercises	29	(1)
The Cohesion Case: America Online, Inc., 200	30	(16)
Experiential Exercises	46	(4)
Experiential Exercise 1A: Strategy Analysis for America Online (AOL)	46	(1)
Experiential Exercise 1B: Developing a Code of Business Ethics for America Online (AOL)	46	(1)
Experiential Exercise 1C: The Ethics of Spying on Competitors	47	(1)
Experiential Exercise 1D: Strategic Planning for My University	48	(1)
Experiential Exercise 1E: Strategic Planning at a Local Company	48	(1)
Experiential Exercise 1F: Does My University Recruit in Foreign Countries?	49	(1)
PART 2 Strategy Formulation	50	(186)
The Business Mission	50	(24)
What Do We Want to Become?	52	(3)
What Is Our Business?	55	(2)
Vision Versus Mission	56	(1)
The Process of Developing a Mission Statement	56	(1)
Importance of Vision and Mission Statements	57	(2)
A Resolution of Divergent Views	58	(1)
Characteristics of a Mission Statement	59	(5)
A Declaration of Attitude	59	(3)
A Customer Orientation	62	(1)
A Declaration of Social Policy	63	(1)
Components of a Mission Statement	64	(1)
Writing and Evaluating Mission Statements	65	(6)
Experiential Exercises	71	(3)
Experiential Exercise 2A: Evaluating Mission Statements	71	(1)
Experiential Exercise 2B: Writing a Vision and Mission Statement for America Online (AOL)	72	(1)
Experiential Exercise 2C: Writing a Vision and Mission Statement for My University	72	(1)
Experiential Exercise 2D: Conducting Mission Statement Research	73	(1)
The External Assessment	74	(48)
The Nature of an External Audit	76	(2)
Key External Forces	76	(1)
The Process of Performing an External Audit	76	(2)
Economic Forces	78	(2)
Social, Cultural, Demographic, and Environmental Forces	80	(5)
The U.S.-Mexican Border	83	(2)
Political, Governmental, and Legal Forces	85	(7)
Politics in Mexico	87	(1)
Politics in Russia	88	(2)
Politics in China	90	(2)
Technological Forces	92	(2)
Competitive Forces	94	(5)
Competitive Intelligence Programs	96	(2)
Cooperation Among Competitors	98	(1)
Competitive Analysis: Porter's Five-Forces Model	99	(3)
Rivalry Among Competing Firms	99	(2)
Potential Entry of New Competitors	101	(1)
Potential Development of Substitute Products	101	(1)
Bargaining Power of Suppliers	101	(1)
Bargaining Power of Consumers	101	(1)
Sources of External Information	102	(3)
Internet	102	(3)
Forecasting Tools and Techniques	105	(2)
Making Assumptions	106	(1)
The Global Challenge	107	(6)
The Impact of Diverse Industrial Policies	107	(2)
Globalization	109	(1)
China: Opportunities and Threats	110	(1)
Hong Kong	110	(1)
Taiwan	111	(2)
Industry Analysis: The External Factor Evaluation (EFE) Matrix	113	(2)
The Competitive Profile Matrix (CPM)	115	(5)
Experiential Exercises	120	(2)
Experiential Exercise 3A: Developing an EFE Matrix for America Online	120	(1)
Experiential Exercise 3B: The Internet Search	120	(1)
Experiential Exercise 3C: Developing an EFE Matrix for My University	120	(1)
Experiential Exercise 3D: Developing a Competitive Profile Matrix for America Online	121	(1)
Experiential Exercise 3E: Developing a Competitive Profile Matrix for My University	121	(1)
The Internal Assessment	122	(38)
The Nature of an Internal Audit	124	(3)
Key Internal Forces	125	(1)
The Process of Performing an Internal Audit	125	(2)
Integrating Strategy and Culture	127	(5)
American Versus Foreign Cultures	129	(3)
Management	132	(5)
Planning	132	(2)
Organizing	134	(1)
Motivating	134	(1)
Staffing	135	(1)
Controlling	136	(1)
Management Audit Checklist of Questions	137	(1)
Marketing	137	(4)
Customer Analysis	137	(1)
Selling Products/Services	137	(1)
Product and Service Planning	138	(1)
Pricing	138	(1)
Distribution	139	(1)
Marketing Research	139	(1)
Opportunity Analysis	140	(1)
Marketing Audit Checklist of Questions	141	(1)
Finance/Accounting	141	(5)
Finance/Accounting Functions	141	(1)
Basic Types of Financial Ratios	142	(4)
Finance/Accounting Audit Checklist of Questions	146	(1)
Production/Operations	146	(3)
Production/Operations Audit Checklist of Questions	149	(1)
Research and Development	149	(1)
Internal and External R&D	149	(1)
Research and Development Audit Checklist of Questions	150	(1)
Computer Information Systems	150	(3)
Strategic Planning Software	151	(1)
Computer Information Systems Audit Checklist of Questions	152	(1)
The Internal Factor Evaluation (IFE) Matrix	153	(5)
Experiential Exercises	158	(2)
Experiential Exercise 4A: Performing a Financial Ratio Analysis for America Online (AOL)	158	(1)
Experiential Exercise 4B: constructing an IFE Matrix for America Online (AOL)	158	(1)
Experiential Exercise 4C: Constructing an IFE Matrix for My University	158	(2)
Strategies in Action	160	(38)
Long-Term Objectives	162	(1)
The Nature of Long-Term Objectives	162	(1)
Not Managing by Objectives	163	(1)
Types of Strategies	163	(1)
Integration Strategies	164	(5)
Forward Integration	164	(2)
Backward Integration	166	(2)
Horizontal Integration	168	(1)
Intensive Strategies	169	(1)
Market Penetration	169	(1)
Market Development	169	(1)
Product Development	170	(1)
Diversification Strategies	170	(4)
Concentric Diversification	172	(1)
Horizontal Diversification	172	(1)
Conglomerate Diversification	173	(1)
Defensive Strategies	174	(3)
Retrenchment	174	(1)
Divestiture	175	(2)
Liquidation	177	(1)
Joint Ventrure and Combination Strategies	177	(3)
Joint Venture	177	(3)
Combination	180	(1)
Michael Porter's Generic Strategies	180	(2)
Cost Leadership Strategies	181	(1)
Differentiation Strategies	181	(1)
Focus Strategies	182	(1)
The Value Chain	182	(1)
Mergers	182	(3)
Leverged Buyouts (LBOs)	184	(1)
Strategic Management in Nonprofit and Governmental Organizations	185	(2)
Educational Institutions	186	(1)
Medical Organizations	186	(1)
Governmental Agencies and Departments	187	(1)
Strategic Management in Small Firms	187	(5)
Experiential Exercises	192	(6)
Experiential Exercise 5A: What Happened at America Online in the Year 2000?	192	(1)
Experiential Exercise 5B: Examining Strategy Articles	192	(1)
Experiential Exercise 5C: Classifying Some Year 2000 Strategies	193	(1)
Experiential Exercise 5D: Strategic Management at the Dynamic Computer Company	194	(2)
Experiential Exercise 5E: How Risky Are Various Alternative Strategies?	196	(1)
Experiential Exercise 5F: Developing Alternative Strategies for My University	196	(1)
Experiential Exercise 5G: Lessons in Doing Business Globally	197	(1)
Strategy Analysis and Choice	198	(38)
The Nature of Strategy Analysis and Choice	200	(1)
The Process of Generating and Selecting Strategies	201	(1)
A Comprehensive Strategy-Formulation Framework	201	(2)
The Input Stage	203	(1)
The Matching Stage	203	(16)
The Threats-Opportunities-Weaknesses-Stregths (TOWS) Matrix	204	(4)
The Strategic Position and Action Evaluation (SPACE) Matrix	208	(4)
The Boston Consulting Group (BCG) Matrix	212	(3)
The Internal-External (IE) Matrix	215	(2)
The Grand Strategy Matrix	217	(2)
The Decision Stage	219	(4)
The Quantitative Strategic Planning Matrix (QSPM)	219	(3)
Positive Features and Limitations of the QSPM	222	(1)
Cultural Aspects of Strategy Choice	223	(1)
The Politics of Strategy Choice	223	(2)
The Role of a Board of Directors	225	(6)
Experiential Exercises	231	(5)
Experiential Exercise 6A: Developing a TOWS Matrix for America Online (AOL)	231	(1)
Experiential Exercise 6B: Developing a SPACE Matrix for America Online (AOL)	231	(1)
Experiential Exercise 6C: Developing a BCG Matrix for America Online (AOL)	231	(1)
Experiential Exercise 6D: Developing a QSPM for America Online (AOL)	232	(1)
Experiential Exercise 6E: Formulating Individual Strategies	232	(1)
Experiential Exercise 6F: The Mach Test	232	(2)
Experiential Exercise 6G: Developing a BCG Matrix for My University	234	(1)
Experiential Exercise 6H: The Role of Boards of Directors	235	(1)
Experiential Exercise 6I: Locating Companies in a Grand Strategy Matrix	235	(1)
PART 3 Strategy Implementation	236	(64)
Implementing Strategies: Management Issues	236	(38)
The Nature of Strategy Implementation	238	(2)
Management Perspectives	239	(1)
Annual Objectives	240	(2)
Policies	242	(2)
Resource Allocation	244	(1)
Managing Conflict	244	(1)
Matching Structure with Strategy	245	(4)
The Functional Structure	246	(1)
The Divisional Structure	247	(1)
The Strategic Business Unit (SBU) Structure	248	(1)
The Matrix Structure	249	(1)
Restructuring, Reengineering, and E-Engineering	249	(3)
Restructuring	251	(1)
Reengineering	251	(1)
Linking Performance and Pay to Strategies	252	(2)
Managing Resistance to Change	254	(1)
Managing the Natural Environment	255	(3)
Creating a Strategy-Supportive Culture	258	(4)
The Mexican Culture	259	(1)
The Russian Culture	260	(1)
The Japanese Culture	261	(1)
Production/Operations Concerns When Implementing Strategies	262	(1)
Human Resource Concerns When Implementing Strategies	263	(8)
Employee Stock Ownership Plans (ESOPs)	264	(2)
Balancing Work Life and Home Life	266	(1)
Corporate Fitness Programs	267	(4)
Experiential Exercises	271	(3)
Experiential Exercise 7A: Revising America Online's Organizational Chart	271	(1)
Experiential Exercise 7B: Matching Managers with Strategy	271	(1)
Experiential Exercise 7C: Do Organizations Really Establish Objectives?	272	(1)
Experiential Exercise 7D: Understanding My University's Culture	273	(1)
Implementing Strategies: Marketing, Finance/Accounting, R&D, and CIS Issues	274	(26)
The Nature of Strategy Implementation	276	(1)
Marketing Issues	276	(6)
Market Segmentation	278	(2)
Product Positioning	280	(2)
Finance/Accounting Issues	282	(9)
Acquiring Capital to Implement Strategies	284	(2)
Proforma Financial Statements	286	(1)
Financial Budgets	287	(1)
Evaluating the Worth of a Business	288	(2)
Deciding Whether to Go Public	290	(1)
Research and Development (R&D) Issues	291	(3)
Computer Information Systems (CIS) Issues	294	(4)
Experiential Exercises	298	(2)
Experiential Exercise 8A: Developing a Product-Positioning Map for America Online (AOL)	298	(1)
Experiential Exercise 8B: Performing an EPS/EBIT Analysis for America Online (AOL)	298	(1)
Experiential Exercise 8C: Preparing Pro Forma Financial Statements for America Online (AOL)	298	(1)
Experiential Exercise 8D: Determining the Cash Value of America Online (AOL)	299	(1)
Experiential Exercise 8E: Developing a Product-Positioning Map for My University	299	(1)
Experiential Exercise 8F: Do Banks Require Pro Forma Statements?	299	(1)
PART 4 Strategy Evaluation	300	(23)
Strategy Review, Evaluatio, and Control	300	(23)
The Nature of Strategy Evaluation	302	(4)
The Process of Evaluating Strategies	305	(1)
A Strategy-Evaluation Framework	306	(5)
Reviewing Bases of Strategy	306	(2)
Measuring Organizational Performance	308	(2)
Taking Corrective Actions	310	(1)
Published Sources of Strategy-Evaluation Information	311	(2)
Characteristics of an Effective Evaluation System	313	(1)
Contingency Planning	314	(2)
Auditing	316	(1)
The Environmental Audit	317	(1)
Using Computers to Evaluate Strategies	317	(4)
Experiential Exercises	321	(2)
Experiential Exercise 9A: Preparing a Strategy-Evaluation Report for America Online (AOL)	321	(1)
Experiential Exercise 9B: Evaluating My University's Strategies	321	(1)
Experiential Exercise 9C: Who Prepares an Environmental Audit?	321	(2)
Name Index	323	(2)
Subject Index	325	(7)
Company Index	332