Strategic Management Competitiveness and Globalization: Concepts (with InfoTrac)

by Hitt, Michael A.; Ireland, R. Duane; Hoskisson, Robert E.

• ISBN13: 9780324275308
• ISBN10: 0324275307
• Edition: 6th
• Format: Paperback
• Copyright: 2004-02-09
• Publisher: South-Western College Pub

Summary

Strategic Management: Competitiveness and Globalization, 6th edition provides the most accurate, relevant, and complete presentation of strategic management today. Authors Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson thoroughly revised each chapter, weaving cutting-edge ideas, research, and modern practice to create a presentation that captures the dynamic nature of the field. The authors integrate the traditional industrial organizational model of strategic management with the more modern resource-based view of the firm to explain how firms use the strategic management process to build a sustained competitive advantage. This is the concepts only split of the text.

Table of Contents

Preface	ix
Part 1 Strategic Management Inputs	1	(99)
Chapter 1 Strategic Management and Strategic Competitiveness	2	(34)
Opening Case: The Innovation Pipeline: A Lifeline of Survival In Business	3	(4)
The Challenge of Strategic Management	7	(1)
The Current Competitive Landscape	8	(7)
Strategic Focus: Gliding above the Water, Treading Water, and Drowning	9	(1)
The Global Economy	10	(1)
The March of Globalization	10	(3)
Technology and Technological Changes	13	(2)
The I/O Model of Above-Average Returns	15	(4)
Strategic Focus: How Do Firms Succeed in a Highly Challenging Economic Environment with Strong Competition? It Is Resources, Stupid!	18	(1)
The Resource-Based Model of Above-Average Returns	19	(2)
Strategic Intent and Strategic Mission	21	(1)
Strategic Intent	21	(1)
Strategic Mission	22	(1)
Stakeholders	22	(4)
Strategic Focus: Is Cisco a Survivor?	23	(1)
Classification of Stakeholders	23	(3)
Strategic Leaders	26	(4)
The Work of Effective Strategic Leaders	27	(1)
Predicting Outcomes of Strategic Decisions: Profit Pools	28	(1)
The Strategic Management Process	29	(1)
Summary	30	(1)
Review Questions	31	(1)
Experiential Exercises	31	(1)
Notes	32	(4)
Chapter 2 External Environment: Opportunities, Threats, Industry competition, and Competitor Analysis	36	(34)
Opening Case: The Economic Aftermath in High Technology: Will We Ever See the Sun Set?	37	(2)
The General, Industry, and Competitor Environments	39	(2)
External Environmental Analysis	41	(3)
Scanning	42	(1)
Monitoring	43	(1)
Forecasting	43	(1)
Assessing	43	(1)
Segments of the General Environment	44	(8)
The Demographic Segment	44	(2)
The Economic Segment	46	(1)
The Political/Legal Segment	46	(1)
The Sociocultural Segment	47	(1)
The Technological Segment	48	(1)
The Global Segment	49	(2)
Strategic Focus: War, Rivalry, and General Pestilence: The Airline Industry Is Experiencing Trauma	51	(1)
Industry Environment Analysis	52	(8)
Threat of New Entrants	53	(3)
Bargaining Power of Suppliers	56	(1)
Bargaining Power of Buyers	57	(1)
Threat of Substitute Products	57	(1)
Intensity of Rivalry among Competitors	57	(3)
Strategic Focus: Will the Real Media Industry Please Stand Up?	60	(1)
Interpreting Industry Analyses	60	(1)
Strategic Groups	61	(2)
Strategic Focus: It's a Competitive World: Some Succeed and Some Fail	62	(1)
Competitor Analysis	63	(2)
Summary	65	(1)
Review Questions	66	(1)
Experiential Exercises	66	(1)
Notes	67	(3)
Chapter 3 The Internal Environment: Resources, Capabilities, and Core Competencies	70	(30)
Opening Case: Technology and Dealer Service: Caterpillar's Sources of Competitive Advantage	71	(3)
The Nature of Internal Environmental Analysis	74	(5)
The Context of Internal Analysis	74	(1)
Creating Value	75	(1)
Strategic Focus: Sears, Roebuck and Co.: Still Where America Shops?	76	(1)
The Challenge of Internal Analysis	77	(2)
Resources, Capabilities, and Core Competencies	79	(5)
Resources	79	(2)
Capabilities	81	(1)
Core Competencies	82	(2)
Building Core Competencies	84	(7)
Four Criteria of Sustainable Competitive Advantage	84	(2)
Strategic Focus: Competitive Parity in the Airline Industry: The Best That Can Be Done?	86	(3)
Value Chain Analysis	89	(2)
Outsourcing	91	(3)
Strategic Focus: The Use of Outsourcing: Nothing but Positive Outcomes?	93	(1)
Core Competencies: Cautions and Reminders	94	(1)
Summary	95	(1)
Review Questions	95	(1)
Experiential Exercises	96	(1)
Notes	97	(3)
Part 2 Strategic Actions: Strategy Formulation	100	(202)
Chapter 4 Business-Level Strategy	102	(34)
Opening Case: Krispy Kreme-The Michelangelo of Doughnut Making?	103	(3)
Customers: Who, What, and How	106	(5)
The Importance of Effectively Managing Relationships with Customers	106	(1)
Reach, Richness, and Affiliation	107	(1)
Who: Determining the Customers to Serve	108	(2)
What: Determining Which Customer Needs to Satisfy	110	(1)
How: Determining Core Competencies Necessary to Satisfy Customer Needs	110	(1)
Types of Business-Level Strategy	111	(20)
Strategic Focus: Southwest Airlines' Activity System: Is It Imitable?	112	(2)
Cost Leadership Strategy	114	(4)
Differentiation Strategy	118	(4)
Focus Strategies	122	(2)
Strategic Focus: Satisfying Unique Needs: Of Shoes and Cars	124	(2)
Integrated Cost Leadership/Differentiation Strategy	126	(2)
Strategic Focus: Global Burgers: Are McDonald's Glory Days a Thing of the Past?	128	(3)
Summary	131	(1)
Review Questions	132	(1)
Experiential Exercises	132	(1)
Notes	133	(3)
Chapter 5 Competitive Rivalry and Competitive Dynamics	136	(32)
Opening Case: JetBlue and Song: Competitive Rivalry between Low-Cost Carriers	137	(3)
A Model of Competitive Rivalry	140	(1)
Competitor Analysis	141	(3)
Market Commonality	141	(1)
Resource Similarity	142	(2)
Drivers of Competitive Actions and Responses	144	(2)
Strategic Focus: Toyota and Volkswagen: Direct Competitors or Not?	145	(1)
Competitive Rivalry	146	(3)
Strategic and Tactical Actions	147	(1)
Strategic Focus: Water, Water Everywhere: Which to Drink?	148	(1)
Likelihood of Attack	149	(5)
First-Mover Incentives	149	(1)
Organizational Size	150	(2)
Quality	152	(2)
Likelihood of Response	154	(2)
Type of Competitive Action	154	(1)
Actor's Reputation	154	(1)
Dependence on the Market	155	(1)
Competitive Dynamics	156	(6)
Slow-Cycle Markets	156	(1)
Fast-Cycle Markets	157	(2)
Standard-Cycle Markets	159	(1)
Strategic Focus: Teradyne Inc.: Life in the Fast Lane	160	(2)
Summary	162	(1)
Review Questions	163	(1)
Experiential Exercises	163	(1)
Notes	164	(4)
Chapter 6 Corporate-Level Strategy	168	(32)
Opening Case: Sony's Chairman Idei Seeks to Foster Related Diversification	169	(2)
Levels of Diversification	171	(2)
Low Levels of Diversification	171	(2)
Moderate and High Levels of Diversification	173	(1)
Reasons for Diversification	173	(1)
Related Diversification	174	(8)
Operational Relatedness: Sharing Activities	175	(1)
Corporate Relatedness: Transferring of Core Competencies	176	(1)
Strategic Focus: Cendant: A Diversified Service Conglomerate	177	(2)
Market Power	179	(2)
Strategic Focus: Johnson & Johnson Seeks to Combine Diagnostic Devices and Drugs	181	(1)
Simultaneous Operational Relatedness and Corporate Relatedness	182	(1)
Unrelated Diversification	182	(3)
Efficient Internal Capital Market Allocation	183	(1)
Restructuring	184	(1)
Diversification: Incentives and Resources	185	(6)
Incentives to Diversify	185	(1)
Strategic Focus: Yahoo!'s Low Performance and Uncertain Future Have Led to Strategic Diversification	186	(4)
Resources and Diversification	190	(1)
Managerial Motives to Diversify	191	(2)
Summary	193	(1)
Review Questions	194	(1)
Experiential Exercises	194	(1)
Notes	195	(5)
Chapter 7 Acquisition and Restructuring Strategies	200	(32)
Opening Case: Comparing the Acquisition Strategies of News Corp. and AOL Time Warner	201	(2)
The Popularity of Merger and Acquisition Strategies	203	(1)
Mergers, Acquisitions, and Takeovers: What Are the Differences?	204	(1)
Reasons for Acquisitions	204	(7)
Increased Market Power	204	(1)
Strategic Focus: Oracle Tries to Build Market Power through Acquisition of PeopleSoft	205	(2)
Overcoming Entry Barriers	207	(1)
Cost of New Product Development and Increased Speed to Market	208	(1)
Lower Risk Compared to Developing New Products	209	(1)
Increased Diversification	209	(1)
Reshaping the Firm's Competitive Scope	210	(1)
Learning and Developing New Capabilities	210	(1)
Problems in Achieving Acquisition Success	211	(6)
Integration Difficulties	212	(1)
Inadequate Evaluation of Target	212	(1)
Large or Extraordinary Debt	213	(1)
Inability to Achieve Synergy	213	(1)
Strategic Focus: Consolidation in the Global Beer Industry and Firms Overpaying for Acquisitions	214	(1)
Too Much Diversification	215	(1)
Managers Overly Focused on Acquisitions	216	(1)
Too Large	217	(1)
Effective Acquisitions	217	(3)
Restructuring	220	(5)
Downsizing	220	(1)
Downscoping	220	(1)
Leveraged Buyouts	221	(1)
Strategic Focus: Leveraged Buyouts and Private Equity Restructuring Deals Experience a Revival	222	(1)
Restructuring Outcomes	223	(2)
Summary	225	(1)
Review Questions	225	(1)
Experiential Exercises	226	(1)
Notes	227	(5)
Chapter 8 International Strategy	232	(36)
Opening Case: China: Manufacturer for the World	233	(3)
Identifying International Opportunities: Incentives to
Use an International Strategy	236	(3)
Increased Market Size	237	(1)
Return on Investment	238	(1)
Economies of Scale and Learning	238	(1)
Location Advantages	239	(1)
International Strategies	239	(7)
International Business-Level Strategy	239	(3)
International Corporate-Level Strategy	242	(3)
Strategic Focus: Large U.S. Auto Manufacturers and the Transnational Strategy	245	(1)
Environmental Trends	246	(3)
Liability of Foreignness	246	(1)
Strategic Focus: Uncertainty, Liability of Foreignness, and Regionalization	247	(1)
Regionalization	248	(1)
Choice of International Entry Mode	249	(4)
Exporting	249	(1)
Licensing	250	(1)
Strategic Alliances	250	(1)
Acquisitions	251	(1)
New Wholly Owned Subsidiary	252	(1)
Dynamics of Mode of Entry	253	(1)
Strategic Competitiveness Outcomes	253	(3)
International Diversification and Returns	254	(1)
International Diversification and Innovation	254	(1)
Complexity of Managing Multinational Firms	255	(1)
Risks In an International Environment	256	(4)
Political Risks	256	(1)
Economic Risks	256	(1)
Limits to International Expansion: Management Problems	256	(2)
Strategic Focus: Intellectual Property Rights in China and Southeast Asia	258	(2)
Summary	260	(1)
Review Questions	261	(1)
Experiential Exercises	261	(2)
Notes	263	(5)
Chapter 9 Cooperative Strategy	268	(34)
Opening Case: Alliances In Response to Rivalry: Telecommunication versus Cable Firms	269	(2)
Strategic Alliances as a Primary Type of Cooperative Strategy	271	(5)
Three Types of Strategic Alliances	271	(1)
Reasons Firms Develop Strategic Alliances	272	(4)
Business-Level Cooperative Strategy	276	(6)
Complementary Strategic Alliances	276	(2)
Competition Response Strategy	278	(1)
Uncertainty Reducing Strategy	278	(1)
Strategic Focus: Competition Response Alliances in the Media Content, Internet, Software, and Cell Phone Equipment Industries	279	(1)
Competition Reducing Strategy	280	(1)
Assessment of Business-Level Cooperative Strategies	281	(1)
Corporate-Level Cooperative Strategy	282	(3)
Diversifying Strategic Alliance	282	(1)
Synergistic Strategic Alliance	283	(1)
Franchising	283	(1)
Assessment of Corporate-Level Cooperative Strategies	284	(1)
International Cooperative Strategy	285	(3)
Strategic Focus: Cross-Border Alliances Battle to Win the President's Entourage: S-92 versus EH101 Helicopters	286	(2)
Network Cooperative Strategy	288	(1)
Alliance Network Types	288	(1)
Competitive Risks with Cooperative Strategies	289	(3)
Strategic Focus: Rivalry and Mistrust: Failure and Success of Music Industry Alliances	290	(2)
Managing Cooperative Strategies	292	(1)
Summary	293	(1)
Review Questions	294	(1)
Experimental Exercises	295	(1)
Notes	296	(6)
Part 3 Strategic Actions: Strategy Implementation	302
Chapter 10 Corporate Governance	304	(34)
Opening Case: Corporate Governance and CEO Pay: Has Controversy Changed Compensation Practices?	305	(3)
Separation of Ownership and Managerial Control	308	(5)
Agency Relationships	309	(1)
Product Diversification as an Example of an Agency Problem	310	(2)
Agency Costs and Governance Mechanisms	312	(1)
Ownership Concentration	313	(3)
The Growing Influence of Institutional Owners	313	(1)
Shareholder Activism: How Much Is Possible?	314	(1)
Strategic Focus: The Growing Activism of Shareholders	315	(1)
Board of Dßrectors	316	(4)
Enhancing the Effectiveness of the Board of Directors	318	(1)
Strategic Focus: Controversy in the Boardroom	319	(1)
Executive Compensation	320	(3)
A Complicated Governance Mechanism	321	(1)
The Effectiveness of Executive Compensation	322	(1)
Market for Corporate Control	323	(2)
Managerial Defense Tactics	324	(1)
International Corporate Governance	325	(4)
Strategic Focus: Corporate Governance Is Changing across the World	326	(1)
Corporate Governance in Germany	327	(1)
Corporate Governance in Japan	328	(1)
Global Corporate Governance	329	(1)
Governance Mechanisms and Ethical Behavior	329	(1)
Summary	330	(1)
Review Questions	331	(1)
Experimental Exercises	331	(1)
Notes	332	(6)
Chapter 11 Organizational Structure and Controls	338	(34)
Opening Case: Amaze Entertainment: Bringing Video-Game Excitement Directly to You!	339	(2)
Organizational Structure and Controls	341	(3)
Organizational Structure	341	(1)
Organizational Controls	342	(1)
Strategic Focus: Effective Timing of Structural Change at Eastman Chemical Company	343	(1)
Relationships between Strategy and Structure	344	(1)
Evolutionary Patterns of Strategy and Organizational Structure	345	(19)
Simple Structure	346	(1)
Functional Structure	346	(1)
Multidivisional Structure	347	(1)
Matches between Business-Level Strategies and the Functional Structure	348	(2)
Strategic Focus: Thinking Globally, Acting Locally: The Foundations of Procter & Gamble's Multidivisional Structure	350	(2)
Matches between Corporate-Level Strategies and the Multidivisional Structure	352	(5)
Strategic Focus: United Technologies Corp.: Where Strategy and Structure Are Matched	357	(1)
Matches between International Strategies and Worldwide Structures	358	(4)
Matches between Cooperative Strategies and Network Structures	362	(2)
Implementing Business-Level Cooperative Strategies	364	(1)
Implementing Corporate-Level Cooperative Strategies	364	(1)
Implementing International Cooperative Strategies	365	(1)
Summary	366	(1)
Review Questions	367	(1)
Experiential Exercises	367	(2)
Notes	369	(3)
Chapter 12 Strategic Leadership	372	(34)
Opening Case: Strategic Leadership: The Good, the Bad, and the Guilty	373	(3)
Strategic Leadership	376	(1)
Managers as an Organizational Resource	377	(4)
Top Management Teams	379	(2)
Managerial Labor Market	381	(4)
Strategic Focus: The Times Are Changing: Is Wonder Woman Still Required for Top Executive Positions in the 21st Century?	382	(3)
Key Strategic Leadership Actions	385	(9)
Determining Strategic Direction	385	(1)
Effectively Managing the Firm's Resource Portfolio	386	(1)
Strategic Focus: Changing the House That Jack Built-A New GE	387	(3)
Sustaining an Effective Organizational Culture	390	(1)
Emphasizing Ethical Practices	391	(1)
Strategic Focus: As Corporate Scandals and Ethical Dilemmas Proliferate, Heads Roll	392	(2)
Establishing Balanced Organizational Controls	394	(3)
Summary	397	(1)
Review Questions	398	(1)
Experiential Exercises	399	(1)
Notes	400	(6)
Chapter 13 Strategic Entrepreneurship	406
Opening Case: Entrepreneurial Success: It Can Happen Anywhere, Anytime	407	(2)
Strategic Entrepreneurship and Innovation	409	(3)
Strategic Focus: Social Entrepreneurship: Innovative, Proactive, Risk-oriented, and Purposeful	410	(1)
Innovation	411	(1)
Entrepreneurs and Entrepreneurial Capabilities	412	(1)
International Entrepreneurship	413	(1)
New Product Development and Internal Corporate Ventures	414	(2)
Incremental and Radical Innovation	414	(1)
Autonomous Strategic Behavior	415	(1)
Induced Strategic Behavior	416	(1)
Implementing New Product Development and Internal Ventures	416	(3)
Cross-Functional Product Development Teams	417	(1)
Facilitating Integration and Innovation	418	(1)
Creating Value from Innovation	418	(1)
Cooperative Strategies for Entrepreneurship and Innovation	419	(2)
Strategic Focus: Partnering to Innovate	420	(1)
Acquisitions to Buy Innovation	421	(1)
Capital for Entrepreneurial Ventures	421	(2)
Strategic Focus: Acquisitions as a Pathway to Innovation	422	(1)
Creating Value through Strategic Entrepreneurship	423	(1)
Summary	424	(1)
Review Questions	425	(1)
Experiential Exercises	425	(1)
Notes	426
Introduction: Preparing an Effective Case Analysis	C-1
Name Index	I-1
Company Index	I-15
Subject Index	I-19