Strategic Management An Organization Change Approach

by Sherman, Herbert; Rowley, Daniel James; Armandi, Barry R.

• ISBN13: 9780761833642
• ISBN10: 0761833641
• Format: Paperback
• Copyright: 2005-11-29
• Publisher: UPA

Summary

Strategic Management: An Organization Change Approach examines the art and science of strategic management in businesses and other organizations. Working from an established theoretical base, this new work discusses practical applications of various strategic management philosophies while focusing on strategy as organizational change. Sherman, Rowley, and Armandi outline specific strategies and tactics that managers can use to maximize not only productivity, but also satisfaction in their 'human organizations.' In an interactive and approachable manner, Strategic Management analyzes the importance of an organization's internal and external environment; explains how to develop an organizational mission, vision, values, and goals; identifies human-level vs. corporate-level strategy choices; and offers advice on how managers can effectively implement their plans. The authors also consider variables that might affect the proposed strategic management approaches, such as international environments, and non-profit, government, and small businesses.

Author Biography

Barry R. Armandi is a Distinguished Teaching Professor at the State University of New York - Old Westbury and Chair of the Management, Marketing, and Information Systems department in the School of Business. Daniel James Rowley is a Professor of Management and the former Department Chair at the School of Business at the University of Northern Colorado. Herbert Sherman is a Professor and Program Coordinator for the Business and Accounting program at Southampton College - Long Island University.

Table of Contents

Preface	xiii
Introduction	xix
Chapter One: The Importance of Strategic Management	1	(60)
Chapter Objectives	2	(1)
Introductory Case: United Airlines Hits Turbulent Times	2	(3)
The Role of Strategic Planning and Strategic Management	5	(12)
Basic Definitions	6	(6)
The Nature of Strategy Formulation	12	(3)
The Nature of Strategies and Tactics	15	(2)
The Dynamics of Strategic Management	17	(13)
Why Strategic Management?	18	(1)
Change is the Name of the Game in Strategic Management	18	(2)
The Strategic Management Process	20	(3)
The Responsibilities of Strategic Managers	23	(2)
What About Non-Change Strategies?	25	(2)
Change, Learning, and Competences: The Foundation of Effective Strategic Management	27	(3)
Strategy Formulation and Development: A Preliminary Introduction	30	(10)
The Potential of Resistance to Planning and Change	30	(3)
Moving Forward with the Pre-Planning Process	33	(7)
Some Closing Thoughts on September 11th	40	(1)
Summary	41	(1)
Key Terms and Concepts	42	(1)
Web sites	42	(1)
Discussion Questions	43	(1)
Exercises	43	(1)
Experiential Exercise	44	(2)
Appendix: Organization Development	46	(7)
Up-Date on the United Case	53	(1)
Endnotes	54	(7)
Chapter Two: Mission, Goals and Objectives	61	(54)
Chapter Objectives	61	(1)
Introductory Case: Enron	62	(2)
Confirming the Corporate Mission	64	(14)
The Importance of an Organizational Mission	67	(7)
Formal Mission Statements	74	(4)
Organizational Goals and Objectives	78	(11)
Definitions of Goals and Objectives	79	(2)
Types of Objectives	81	(8)
Organizational Policies and Procedures	89	(5)
Corporate Governance	94	(10)
Stockholders — the Core of the Governance Structure	95	(3)
The Board of Directors	98	(3)
The Chief Executive Officer (CEO)	101	(2)
The Chief Operating Officer (COO)	103	(1)
Mid-Level Managers, Departmental Managers, and Organizational Operatives	103	(1)
Summary	104	(1)
Key Terms and Concepts	105	(1)
Websites	105	(1)
Discussion Questions	106	(1)
Exercises	106	(1)
Endnotes	107	(8)
Chapter Three: The External Environment	115	(86)
Chapter Objectives	115	(1)
Introductory Case: The Changes in the Airline Industry	116	(3)
Defining the External Environment	119	(17)
Macro Environment	123	(13)
Industry and Market Structure	136	(26)
Industry Environment	136	(10)
Using the Porter Model to Analyze an Industry	146	(4)
Market Structures	150	(4)
Industry Life Cycle	154	(6)
Strategic Groups and Competitive Analysis	160	(1)
Immediate Environment Environmental Analysis	161	(1)
Summarizing Findings - Opportunities and Threats	162	(1)
Methodology for Conducting O/T	162	(2)
Summary	164	(1)
Key Terms and Concepts	165	(1)
Web sites	165	(1)
Discussion Questions	166	(1)
Exercises	166	(1)
Experiential Exercise	167	(2)
Appendix: Industry References and Other Secondary Sources	169	(27)
Endnotes	196	(5)
Chapter Four: The Internal Environment	201	(70)
Chapter Objectives	201	(1)
Introductory Case: The Disney Company	202	(2)
The Nature of the Internal Environment	204	(3)
Establishing a Competitive Edge Through Internal Analysis	207	(37)
The Resource-Based Approach	208	(10)
The Value Chain Approach	218	(5)
The Functional Approach	223	(21)
Summarizing Findings	244	(8)
Strengths and Weaknesses	244	(5)
Combining the External and Internal Analyses — SWOT Analysis	249	(3)
Summary	252	(1)
Key Terms and Concepts	253	(1)
Web sites	253	(1)
Discussion Questions	254	(1)
Exercises	254	(11)
Appendix: Tools for Conducting a Financial Analysis	265
Endnotes	263	(8)
Chapter Five: Business Level Strategies & Market Competition	271	(62)
Chapter Outline	271	(1)
Chapter Objectives	271	(1)
Introductory Case: Samsung's Out to Be No.1 in Consumer Electronics	272	(2)
Business-Level Strategies	274	(3)
Strategy, SWOT Analysis and Market Structures	277	(3)
Strategy, SWOT Analysis, and Change	277	(2)
Strategy, Market Structures, and Change	279	(1)
The Concept of Business Level Strategies	280	(13)
Strategic Approaches to the Marketplace (Strategic Personality)	281	(8)
Comments on the Miles and Snow Typology of Strategic Approaches	289	(4)
Methods of Creating Competitive Advantage (Competitive Strategy)	293	(18)
Low-Cost Leadership	294	(3)
Differentiation	297	(4)
Focus Strategy - Narrow Competitive Scope	301	(4)
Beyond Porter's Four Competitive Strategies - Blended Strategy	305	(4)
Choices for Creating a Competitive Advantage	309	(2)
The Strategy Matrix: Integrating Porter's Modified Strategy with Miles and Snow's Competition Within and Between Markets and Market Segments	311	(1)
Competitive Strategy Selection	311	(9)
Summary	320	(1)
Key Terms and Concepts	321	(1)
Web sites	321	(1)
Discussion Questions	321	(1)
Exercises	322	(2)
Appendix: The Miles and Snow Strategic Variables	324	(3)
Endnotes	327	(6)
Chapter Six: Corporate Level Strategies	333	(68)
Chapter Objectives	333	(1)
Introductory Case: General Motors – Over a Century of Growth	334	(2)
Corporate Level Strategies	336	(2)
Growth Strategies	338	(28)
Concentration on Internal Growth	340	(7)
Growth through Diversification	347	(19)
Maintenance Strategies	366	(13)
Conglomerates and I-bolding Companies	367	(3)
Cooperative Strategies	370	(9)
Harvest and Corrective Strategies	379	(8)
Reorganization: Profit Strategies, Restructuring, Rethinking Strategy	380	(2)
Divestiture: Harvest, Retrenchment, Divestiture, Liquidation	382	(5)
Using the Corporate Level Strategy Matrix	387	(2)
Summary	389	(1)
Key Terms and Concepts	389	(1)
Web sites	390	(1)
Discussion Questions	390	(1)
Endnotes	391	(10)
Chapter Seven: Strategy Implementation: An Organization Change Approach	401	(60)
Chapter Objectives	401	(1)
Introductory Case: Where Has Chrysler Gone? The Daimler Chrysler Merger	402	(2)
Strategy Implementation	404	(3)
What is Strategy Implementation?	407	(18)
Successful and Unsuccessful Implementation	407	(3)
Implementation as a Change/Intervention Process	410	(4)
Implementation as a Learning Process	414	(3)
Implementation As an Internal Alignment and External Adaptation Process	417	(5)
Synthesis: The Strategy Implementation Process	422	(3)
Key Implementation Elements	425	(18)
Organizational Structures	426	(10)
Leadership	436	(4)
Organizational Culture	440	(3)
Perfect Fit: Matching Strategy, Structure, Culture, and Leadership	443	(2)
Summary	445	(1)
Key Terms and Concepts	446	(1)
Web sites	447	(1)
Discussion Questions	448	(1)
Exercises	448	(1)
Experiential Exercise	449	(4)
Endnotes	453	(8)
Chapter Eight: Implementation Techniques and Interventions	461	(84)
Chapter Objectives	461	(1)
Introductory Case: Southwest Airlines is Flying High in Disastrous Times	462	(3)
Strategy Implementation: Interventions	465	(12)
Change and Change Agents	469	(5)
Intervention Techniques: The Process	474	(3)
Intervention Techniques: A General Model	477	(30)
Individual (Intra-personal) Interventions	479	(7)
Interpersonal and Small Group Interventions	486	(7)
Team/Group/Subsystem Interventions	493	(5)
Intergroup/Subsystems Interface Interventions	498	(3)
Organizational/Systems Wide Interventions	501	(3)
Transorganizational/Environmental Interventions	504	(3)
Use the Appropriate Intervention to Produce the Desired Changes	507	(2)
Summary	509	(1)
Key Terms and Concepts	510	(1)
Web sites	510	(1)
Discussion Questions	511	(1)
Exercises	512	(1)
Experiential Exercise	512	(4)
Appendix Description of Other Intervention Techniques	516	(15)
Endnotes	531	(14)
Chapter Nine: Strategy Evaluation and Control	545	(50)
Chapter Objectives	545	(1)
Introductory Case: Hewlett Packard	546	(2)
The Nature of Evaluation and Control	548	(6)
Total Quality Management and Control	550	(2)
Reengineering and Controlling Change	552	(2)
A Conceptual Overview of the Control Function	554	(7)
The Control Process: Measuring Performance and Correcting Deviations	561	(3)
Establishing Measurement Performance Criteria and Standards	564	(16)
Correcting Deviations from Standards	572	(3)
Strategic Control Systems	575	(5)
Tactical and Organizational Controls	580	(4)
Operational Controls: Budgets, Schedules, Financial Hurdles	581	(2)
Individual Control Systems	583	(1)
Summary	584	(1)
Key Terms and Concepts	585	(1)
Web sites	586	(1)
Discussion Questions	587	(1)
Exercises	587	(1)
Experiential Exercise	588	(2)
Endnotes	590	(5)
Chapter Ten: International Strategy and Multinational Corporations	595	(44)
Chapter Objectives	595	(1)
Introductory Case: Waterford Crystal	596	(2)
The Emergence of a Worldwide Market	598	(11)
Becoming a World-Class Organization	600	(1)
Pursuing a Global Competitive Advantage	600	(5)
The Decision to Enter the International Arena	605	(4)
Moving from Domestic to International to Global Competition	609	(23)
Risks and Rewards/Opportunities and Threats	609	(13)
Multinational Corporate Strategic Options	622	(3)
Multinational Corporate Tactical Options	625	(7)
Waterford Crystal Revisited	632	(1)
Summary	632	(1)
Key Terms and Concepts	633	(1)
Web sites	633	(1)
Discussion Questions	633	(1)
Exercises	634	(1)
Endnotes	634	(5)
Chapter Eleven: Strategy Changes: Ethical and Technological Causes	639	(38)
Chapter Objectives	639	(1)
Introductory Case: Nokia and Ericsson: Reactions to a Disaster	639	(7)
Business Ethics and the Social Responsibility of the Firm	646	(13)
Defining Business Ethics and Business Responsibility	647	(7)
Business Ethics Issues Inherent in Strategy	654	(5)
Defining the e-Business Environment	659	(10)
The Impacts of the Internet and the Growth of Technology on e-Business	660	(2)
e-Business and Improving the Value Chain	662	(3)
Growth of Virtual Organizations and e-Commerce	665	(1)
Traditional Business and e-Commerce	666	(1)
Risks and Rewards of E-solutions	667	(2)
Summary	669	(1)
Key Terms and Concepts	669	(1)
Web sites	669	(1)
Discussion Questions	670	(1)
Exercises	670	(1)
Experiential Exercise	671	(2)
Endnotes	673	(4)
Appendix A	677	(18)
Subject Index	695	(6)
Source Index	701