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Giáo trình Strategic management theory and practice 4th edition john a parnell Giáo trình Strategic management theory and practice 4th edition john a parnell Giáo trình Strategic management theory and practice 4th edition john a parnell Giáo trình Strategic management theory and practice 4th edition john a parnell Giáo trình Strategic management theory and practice 4th edition john a parnell Giáo trình Strategic management theory and practice 4th edition john a parnell Giáo trình Strategic management theory and practice 4th edition john a parnell
Copyright © 2014 by SAGE Publications, Inc All rights reserved No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher FOR INFORMATION: SAGE Publications, Inc 2455 Teller Road Thousand Oaks, California 91320 E-mail: order@sagepub.com SAGE Publications Ltd Oliver’s Yard 55 City Road London EC1Y 1SP United Kingdom SAGE Publications India Pvt Ltd B 1/I Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044 India SAGE Publications Asia-Pacific Pte Ltd Church Street #10-04 Samsung Hub Singapore 049483 Photo credits (listed by page number): xx: © Can Stock Photo Inc / vally_home 11: Comstock/Comstock/Thinkstock 12: Protodisc/ Photodisc/Thinkstock 26: Jupiterimages/Comstock/Thinkstock 31: BananaStock/BananaStock/Thinkstock 39: Comstock/ Comstock/Thinkstock 41: Thomas Northcut/Digital 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JupiterImages/Comstock/Thinkstock 228: Comstock/Comstock/Thinkstock 232: Felipe Dupouy/Lifesize/Thinkstock 246: Mike Powell/Digital Vision/Thinkstock 247: Comstock/Comstock/Thinkstock 255: Comstock/Comstock/Thinkstock 270: iStockphoto/ Thinkstock 273: RyanMcVay/Photodisc/Thinkstock 292: ©iStockphoto.com/Marcus Clackson 296: DigitalVision/DigitalVision/ Thinkstock 300 (top): RyanMcVay/Lifesize/Thinkstock 300 (bottom): Comstock/Comstock/Thinkstock 326: © Can Stock Photo Inc./ fikmik 335: JupiterImages/Goodshot/Thinkstock 336: Stockbyte/Stockbyte/Thinkstock Strategy + Business reading credits (listed by chapter): Chapter 1: “The China Challenge” by Edward Tse reprinted with permission from the Spring 2010 issue of strategy+business magazine, published by Booz & Company Inc., based on the book The China Strategy, published by Basic Books Copyright © 2010 All rights reserved www.strategy-business.com Chapter 2: “Focus and Scale on the Internet” by Tim Laseter reprinted with permission from the Summer 2011 issue of strategy+business, published by Booz & Company Inc Copyright © 2011 All rights reserved www.strategy-business.com Chapter 3: “Competing for the Global Middle Class” by Edward Tse, Bill Russo, and Ronald Haddock, reprinted with permission from the Autumn 2011 issue of strategy+business magazine, published by Booz & Company Inc Copyright © 2011 All rights reserved www.strategy-business com Chapter 4: “The Rise of Generation C” by Roman Friedrich, Michael Peterson and Alex Koster reprinted with permission from the Spring 2011 issue of strategy+business magazine, published by Booz & Company Inc Copyright © 2011 All rights reserved www.strategy-business.com Chapter 5: “Values vs Value” by Timothy Devinney, Pat Auger, and Giana M Eckhardt reprinted with permission from the Spring 2011 issue of strategy+business magazine, published by Booz & Company Inc Copyright © 2011 All rights reserved www.strategy-business.com Chapter 6: “The Unique Advantage,” by Alexander Kandybin and Surbhee Grover reprinted with permission from the Autumn 2008 issue of strategy+business, published by Booz & Company Inc Copyright © 2008 All rights reserved www.strategy-business.com Chapter 7: “Growth through Focus: A Blueprint for Driving Profitable Expansion” by Sanjay Khosla and Mohanbir Sawhney reprinted with permission from the Summer 2010 issue of strategy+business magazine, published by Booz & Company Inc Copyright © 2010 All rights reserved www.strategy-business.com Chapter 8: “The Power of the Post-Recession Consumer” by John Gerzema and Michael D’Antonio reprinted with permission from the Spring 2011 issue of strategy+business magazine, published by Booz & Company Inc Copyright © 2011 All rights reserved www strategy-business.com Chapter 9: “10 Clues to Opportunity” by Donald Sull reprinted with permission from the Autumn 2011 issue of strategy+business, published by Booz & Company Inc Copyright © 2011 All rights reserved www.strategy-business.com Chapter 10: “Design for Frugal Growth” by Jaya Pandrangi, Steffen Lauster, and Gary L Neilson reprinted with permission from the Autumn 2008 issue strategy+business magazine, published by Booz & Company Inc Copyright © 2008 All rights reserved www strategy-business.com Chapter 11: “CEO Succession 2010: The Four Types of CEOs” by Ken Favaro, Per-Ola Karlsson, and Gary L Neilson reprinted with permission from the Summer 2011 issue of strategy+business magazine, published by Booz & Company Inc Copyright © 2011 All rights reserved www.strategy-business.com Chapter 12: “How to Prevent Self-Inflicted Disasters” by Eric Kronenberg reprinted with permission from the strategy+business website, published by Booz & Company Inc (http://www strategy-business.com/article/00086) Copyright © 2011 All rights reserved www.strategy-business.com Traditional case credits (listed by number): Case 1, Case 6, Case 7, Case 11: Reprinted with permission from the Society for Case Research Case 2, Case 8, Case 9: Reprinted with permission from Rebecca Treadway Case 3, Case 4: Reprinted with permission from Sue Cullers Case 5: Reprinted with permission from Neilson Publishers Case 10: Reprinted with permission from Marlene Reed Printed in the United States of America Library of Congress Cataloging-in-Publication Data Parnell, John A (John Alan), 1964Strategic management : theory and practice / John A Parnell — 4th ed p cm Includes bibliographical references and index ISBN 978-1-4522-3498-4 (pbk.) Acquisitions Editor: Patricia Quinlin Strategic planning Industrial management Organizational effectiveness I Title Associate Editor: Maggie Stanley HD30.28.P316 2014 658.4′012-—dc23 2012032644 Assistant Editor Megan Koraly This book is printed on acid-free paper Editorial Assistant: Katie Guarino Production Editor: Laureen Gleason Copy Editor: Megan Markanich Typesetter: C&M Digitals (P) Ltd Proofreader: Jen Grubba Indexer: Wendy Allex Cover Designer: Anupama Krishnan Marketing Manager: Liz Thornton Permissions Editor: Jennifer Barron 13 14 15 16 17 10 Brief Contents Preface xv About the Author 1 Fundamentals of Strategic Management xix Industry Competition 27 The External Environment: Political-Legal and Economic Forces 53 The External Environment: Social and Technological Forces 79 The Organization: Ethics and Corporate Social Responsibility 117 Corporate-Level Strategies 151 Business Unit Strategies 183 Functional Strategies 219 9 Strategy Formulation 247 10 Strategy Execution: Structure 271 11 Strategy Execution: Strategic Change, Culture, and Leadership 293 12 Strategic Control and Crisis Management 327 Appendix 353 Case Analysis 354 Real-Time Cases 361 Traditional Cases 395 Glossary 611 Index 621 vi vi ENTREPRENEURSHIP STRATEGIC MANAGEMENT Detailed Contents Preface xv Description of Text xv Key Features xvi What’s New in This Edition xvi Ancillaries xvii Acknowledgments xviii About the Author xix Fundamentals of Strategic Management What Is Strategic Management? 1 Intended and Realized Strategies Scientific and Artistic Perspectives on Strategic Management 5 Influence on Strategic Management 6 Corporate Governance and Boards of Directors 7 Strategic Decisions 10 The Global Imperative 12 Summary 13 Key Terms 13 Review Questions and Exercises 14 Practice Quiz 14 True or False? 14 Multiple Choice 15 Student Study Site 15 Notes 16 Strategy + Business Reading: The China Challenge 18 Industry Competition Industry Life Cycle Stages 30 Industry Structure 32 Intensity of Rivalry Among Incumbent Firms 32 Concentration of Competitors 34 High Fixed or Storage Costs 35 Slow Industry Growth 35 Lack of Differentiation or Low Switching Costs 35 Capacity Augmented in Large Increments 36 Diversity of Competitors 36 27 High Strategic Stakes 36 High Exit Barriers 36 Threat of Entry 37 Economies of Scale 38 Brand Identity and Product Differentiation 38 Capital Requirements 39 Switching Costs 39 Access to Distribution Channels 39 Cost Advantages Independent of Size 39 Government Policy 39 Pressure From Substitute Products 40 Bargaining Power of Buyers 40 Bargaining Power of Suppliers 41 Limitations of Porter’s Five Forces Model 42 Summary 43 Key Terms 43 Review Questions and Exercises 44 Practice Quiz 44 True or False? 44 Multiple Choice 45 Student Study Site 45 Notes 46 Strategy + Business Reading: Focus and Scale on the Internet 47 The External Environment: Political-Legal and Economic Forces 53 Analysis of the External Environment 53 Political-Legal Forces 54 Global Considerations 60 Economic Forces 63 Gross Domestic Product 64 Inflation Rates 66 Interest Rates 66 Exchange Rates 66 Ecological Influences 67 Summary 69 Key Terms 69 Review Questions and Exercises 69 Practice Quiz 69 True or False? 69 Multiple Choice 70 Student Study Site 70 Notes 71 Strategy + Business Reading: Competing for the Global Middle Class 73 The External Environment: Social and Technological Forces Social Forces 79 Case #1: Eating Habits 83 79 Case #2: Automobiles 86 Global Concerns 88 Technological Forces 90 The Internet 92 Strategic Dimensions of the Internet 96 Movement Toward Information Symmetry 96 Internet as Distribution Channel 97 Speed 97 Interactivity 97 Potential for Cost Reductions and Cost Shifting 97 Forms of Electronic Commerce 98 Business-to-Business 98 Business-to-Consumer 98 Business-to-Government 99 Consumer-to-Consumer 99 Consumer-to-Business 99 Commoditization and Mass Customization 99 Environmental Scanning 100 Summary 102 Key Terms 102 Review Questions and Exercises 103 Practice Quiz 103 True or False? 103 Multiple Choice 103 Student Study Site 104 Notes 104 Strategy + Business Reading: The Rise of Generation C 108 The Organization: Ethics and Corporate Social Responsibility Organizational Direction: Mission, Goals, and Objectives 118 Goals and Stakeholders 118 The Agency Problem 120 Management Serves Its Own Interests 120 Management and Stockholders Share the Same Interests 122 Managerial Ethics 123 Perspectives on Ethics 126 Social Responsibility 129 Corporate Social Responsibility in Practical Terms 132 Sustainable Strategic Management 135 Takeovers 135 Outsourcing and Offshoring 136 Linking Managerial Ethics and Corporate Social Responsibility 139 Summary 140 Key Terms 140 Review Questions and Exercises 141 Practice Quiz 141 117 True or False? 141 Multiple Choice 142 Student Study Site 143 Notes 143 Strategy + Business Reading: Values vs Value 146 Corporate-Level Strategies 151 The Corporate Profile 151 Strategic Alternatives at the Corporate Level 153 Growth Strategies 153 Horizontal (Related) Integration 156 Horizontal (Related) Diversification 156 Conglomerate (Unrelated) Diversification 157 Vertical Integration 157 Strategic Alliances (Partnerships) 157 Stability Strategy 159 Retrenchment Strategies 161 Turnaround 161 Divestment 163 Liquidation 163 Boston Consulting Group Growth-Share Matrix 163 Global Corporate Strategy 166 Wal-Mart Abroad 168 Global Orientation Assessment 169 Summary 170 Key Terms 170 Review Questions and Exercises 172 Practice Quiz 172 True or False? 172 Multiple Choice 172 Student Study Site 173 Notes 173 Strategy + Business Reading: The Unique Advantage 176 Business Unit Strategies Porter’s Generic Strategies 184 Low-Cost (Cost Leadership) Strategy (Without Focus) 185 Focus–Low-Cost Strategy 187 Differentiation Strategy (Without Focus) 188 Focus-Differentiation Strategy 190 Low-Cost–Differentiation Strategy 191 Focus–Low-Cost–Differentiation Strategy 195 Multiple Strategies 195 The Miles and Snow Strategy Framework 196 Business Size, Strategy, and Performance 197 Assessing Strategies 198 Global Concerns 199 Summary 202 183 630 STRATEGIC MANAGEMENT Hewlett-Packard (HP), 120–121, 123 (table), 125 Heyer, Steven, 123 (table) HHI See Herfindahl-Hirschman Index Hill, Steve, 49 Hispanics, 81 Holding companies, 317–318, 317 (exhibit), 320–323 (exhibit), 321, 324 Hollywood Entertainment, 541–542 Home Box Office (HBO), 123 (table) Home Depot, 133 (box), 191, 378–379 Honda Motor Company, 256, 268 Hon Hai Precision Industry, 337–338 Hoover’s (website), 357 (table) Horizontal growth, 274–275 Horizontal integration, 156 Horizontal related diversification, 151–152, 156–157 Horizontal structure, 275 Hotels, 36, 94, 199 (box) Hot-fill technology, 290–291 “How to Prevent Self-Inflicted Disasters” (Kronenberg), 347–352 HP See Hewlett-Packard Huawei, 21 Hudson River clean-up, 476 Huiyuan Juice Group, 24, 62, 136 Human capital, 233–234, 233 (table) Human resources: about, 220 (table), 231–232 board of directors, 249 case analysis, 235 (box) Costco, 411–412 functional strategies, 231–234 human capital and knowledge management, 233–234, 233 (table) industry life cycle and, 236 (table) knowledge and competitive advantage, 234 middle management, supervisors, and employees, 250 organizational culture and, 298 planning program, 250 strengths and weaknesses, 248–250 Hungary, 555 (table) Hurd, Mark, 123 (table), 125 Hurricane Ivan, 133 (box) Hurricane Katrina, 338 Hypercompetition, 31 Hyundai Motor Company, 74, 194–195 IBM Corporation, 18, 24, 123 (table) IKEA, 201 Impact Articles (website), 357 (table) Imus, Don, 337 InBev, 156 Incentives, 350–351 Income statements: Costco, 415–416 (exhibit) Dollar General, 438 (box) Dollar Tree, 474–475 (box) Family Dollar Stores, 441 (box), 463 (box) Kodak, 502–503 (table) Macy’s Inc., 530–532 (exhibit) Netflix, 547–548 (exhibit) Skoda Auto, 560 (exhibit) India: air cargo networks, 578–579 automobile industry, 168, 557 business unit strategies, 202 cities, 571 (table), 582 (table), 583 (table), 584 (table), 587 (figure) consumer spending, 570–572, 583 (table), 584 (table) Dunkin’ Donuts, 200 entry into, 567–568, 574, 585 (table) micro-localization, 201 motorcycle industry, 256 outsourcing to, 136–137 railway network, 577 real estate costs, 573 retail, 572–575, 585–586 (table) road networks, 576–577, 588 (table) shipping ports, 578 Skoda Auto, 557 soft drink industry, 337 supply chain management/logistics, 575–578, 587 (figure) Taco Bell, 88 Wal-Mart, 169 warehousing, 578 web-based operations/capabilities, 579 workforce, 570, 588 (figure) Yum! Brands, 167 See also Staples case study Indonesia, 168 Industrializing countries, 74–75, 111–112, 314–315, 314 (exhibit) See also specific countries Industrial organization (IO), 6–7 Industries: critical success factors, 27–28 defined, 27 growth, slow, 35 identifying, 32 (box) position in, 251 primary, 29 profitability, potential, 43 (box) rules of engagement, 27 secondary, 29 Industry competition: about, 27–29, 32, 33 (figure) bargaining power of buyers, 40–41 entry, threat of, 37–40 industry life cycle, 30–31, 30 (figure) rivalry among incumbent firms, intensity of, 32–37 substitute products, 40 See also Industry structure Industry life cycle, 30–31, 30 (figure), 32 (box), 196–197, 235, 236 (table) Industry structure, 32–42 Index about, 32, 33 (figure) bargaining power of buyers, 40–41 entry, threat of, 37–40 intensity of rivalry among incumbent firms, 32–37 limitations of Porter’s five forces model, 42 substitute products, 40 Industry Week (website), 357 (table) Inert cultures, 297 Inflation rates, 66 Influence on strategic management, 6–7, (table) Informal leaders, 350 Informal organization, 333–334 Information asymmetry, 96 Information flow and mindsets, 348, 349 (exhibit), 351 Information symmetry, 96–97 Information systems management, 220 (table), 234–235, 235 (box) Infosys Technologies Ltd., 268 Ingredient synonymy, 179 Injury, denying, 128 Innovation: about, 176 adaptive culture and, 296 advantage, paths to, 178–180, 178 (exhibit) aptitude for, 289–290 Costco, 412–413 mis-investment, 176–178, 177 (exhibit) product, 193, 194 published information for strategic control, 331 reverse, 76 scale, advantage of, 180–181 structural, 195 value, 193, 194–195 Inside directors, 8, Inside perspectives on strategy, 2–3 Insider CEOs, 313 Integration, 156, 157, 180 Integrative social contracts view of ethics, 127 Intel, 160 Intelligence: competitive, 125 emotional, 303 Intended strategy, Interest rates, 66 Internal environment: analysis of, Costco, 411–414 Macy’s Inc., 522–525 Netflix, 543–546 Internal growth, 153–154, 154 (table) International franchising, 166 International level of global corporate strategy, 166 International licensing, 166 International Paper (IP) case study, 379–380 Internet: as distribution channel, 97 marketing, 222 social trends, 82 strategic dimensions of, 96–97 strategic management trends, 341 as technological force, 92–95 Internet companies: business unit strategies, 191 capabilities, local, 49–51 China, 62 execution, 51 focus, 49–51 grocery stores, 191 marketing, 223, 224 (box) retailers, 223, 224 (box) scale, 47–49 search firms, 62 technological forces, 94 travel agencies, 94 See also specific companies Internet Public Library (website), 357 (table) Intrapreneurship, 196 Introduction stage, of industry life cycle, 30 Inventory system, just-in-time, 231 Inventory turnover, 226 (table) IO See Industrial organization IP See International Paper case study Iraq war, 56 Ivan, Hurricane, 133 (box) J D Power, 331 J Hilburn (company), 50 Jack in the Box case study, 380–381 Japan: automobile industry, 60, 64, 67, 337 business negotiations, 89 earthquake and tsunami, 337 exchange rates, 67 inventory system, just-in-time, 231 J.C Penney Company, Inc., 522 JCPenney.com, 224 (box) JetBlue Airways, 159–160, 192, 302 JIT See Just-in-time inventory system Johnson & Johnson, 130 (figure), 291, 301 (box), 336, 340 Joint Juice, 268 Justice view of ethics, 127 Just-in-time (JIT) inventory system, 231 Kandybin, Alexander, 176–181, 177 (exhibit), 178 (exhibit) Kapai New Zealand case study, 483–498 business concept development, 484–485 competitors, 492 costs, 489, 490 (figure) future, 492–493, 495 growth opportunities, 493–495, 494 (figure) health concerns and industry responses, 491–492 management and staffing, 488 631 632 STRATEGIC MANAGEMENT marketing, 490 menu, 487–488, 496 (box) New Zealand, fast-food and salad stores in, 490–491 operations, 488 stores, 485–487 supply procurement, 488–489 values, 486 (figure) Karlsson, Per-Ola, 311–325 Kate Spade LLC, 260 70 Katrina, Hurricane, 338 Kelleher, Herb, 301 (box), 302 (box) Kellogg’s, 168 Ketchup consumption, Mexican, 88 KFC, 21, 43 (box), 167, 200 See also Yum! Brands Khosla, Sanjay, 208–217 Kirchner, Cristina, 55 Kmart, 155 (box) Knight-Ridder, 93–94 (box) Knight-Ridder Digital, 93 (box) Knowledge, 234, 250 Knowledge management, 233–234, 233 (table) Kodak case study, 498–517 balance sheet, 501–502 (table) definitions, 511 demand, 508–509, 508 (figure) digital strategy, 500, 503–504 growth abroad, 508–509 history, 2003-2007, 504–506, 505 (table) income statement, 502–503 (table) market share, 509–510, 510 (table), 511 (table) new Kodak, emergence of, 511–514, 512 (figure), 513 (figure) technological innovations, 506–507 Kola Real, 185 (box) Koster, Alex, 108–115 Kraft Foods: business unit strategies, 201 growth through focus, 210–211, 212, 213, 214, 215, 216 synergy, 152 See also Oreo cookies Kramer, Mark, 480, 482 (exhibit) Kroc, Ray, 296 Kroger case study, 382 Kronenberg, Eric, 347–352 Labels and labeling, 57, 59–60, 83 Lands’ End case study, 382–383 Laseter, Tim, 47–51 Latin America, 53–54 Latinos, 81 Lauster, Steffen, 286–291 LBO See Leveraged buyout Leadership: about, 295 Costco, 411 informal, 350 involved, 233 (table) Netflix, 543–544 style of, 300–303, 303 (figure) transactional, 300, 302, 303 (figure) transformational, 300–301, 302, 303 (figure) See also Strategic leadership Lean finely textured beef (LFTB), 82 Learning, 228 Ledger, metaphor of the, 129 Legal forces See Political-legal forces Lego, 187 Leighton, David, Leveraged buyout (LBO), 136 Leverage ratios, 226 (table) Levi Strauss, 40 LFTB See Lean finely textured beef LG Corporation, 317 (exhibit), 318 Licensing, international, 166 Life cycle, industry, 30–31, 30 (figure), 32 (box), 196–197, 235, 236 (table) Light bulbs, 476–477 Lipton, 210, 211–212, 213 Liquidation, 163 Liquidity ratios, 226 (table) Liquidity test, 226 (table) Loans, negative amortization, 119 Local capabilities, 49–51 Localization, 200–201, 214 Location, as physical resource, 251 Long-term debt-to-equity ratio, 226 (table) Lorillard, 31 Low-cost–differentiation strategy, 184, 191–195, 192–193 (box), 193 (table), 341 Low-cost (cost leadership) strategy (without focus): Porter’s generic strategies, 184, 185–187, 185 (box) Lowe’s, 133 (box) Macroenvironment, 53 See also External environment Macy’s Inc case study, 517–538 balance sheet, 532–533 (exhibit) Bloomingdale’s, 523–524 competition, 521–522, 525 (exhibit), 526 (exhibit), 527 (exhibit) employee training, 524 environmental movement, 521 external environment, 519–522 fast fashion, 521 history, 517–519 income statement, 530–532 (exhibit) internal environment, 522–525 Macy’s Online, 522 Material Girl line, 523 merchandise, 523 My Macy’s, 523, 529 (exhibit) operations, 525 organizational culture, 524 Index organizational structure, 522, 528–529 (exhibit) social responsibility, 524 stock price, 530 (exhibit) Macy’s Online, 522 Mad-cow disease, 56 MagPortal (website), 357 (table) Malaysia, 200 Mall retailers, 65 Management models, 316–324 about, 316–317 active management companies, 317 (exhibit), 318–319, 320–323 (exhibit), 323, 324 holding companies, 317–318, 317 (exhibit), 320–323 (exhibit), 321, 324 operationally involved companies, 317 (exhibit), 319–323, 320–323 (exhibit), 324 strategic management companies, 317 (exhibit), 318, 320–323 (exhibit), 321, 322, 324 Managerial ethics See Ethics, managerial Managers as stakeholders, 118–119, 119 (table) Marchionne, Sergio, 163 Marco’s Pizza, 187 Marketing: about, 220 (table), 221 case analysis, 225 (box) Costco, 413 Dollar General, 430–431, 430 (exhibit), 431 (exhibit) food to children, 85–86 industry life cycle and, 236 (table) Kapai New Zealand, 490 place (distribution) strategies, 224–225, 224 (box) pricing strategies, 221–222 product/service strategies, 222–224 promotion strategies, 222 to women, 80 Marketing Power (website), 358 (table) Market share, 29, 331–332, 509–510, 510 (table), 511 (table) Mars Inc., 176, 179, 181 Más Club, 195 Mass customization, 99–100 Massmart Holdings, 169 Material Girl line, 523 Matrixes: Boston Consulting Group growth-share, 163–165, 164 (figure), 165 (figure) strategy level-strategy complexity, 257–258, 258 (figure) SW/OT, 255–257, 257 (figure) Matrix structure, 278–279, 279 (figure) Matrixx Initiatives, 337 Mattel case study, 384–385 Maturity stage, of industry life cycle, 30–31 McCarthy, Barry, Jr., 543 McClatchy, 94 (box) McCord, Patty, 544 McDonald’s: attributes, 28 business unit strategies, 191–192 China, 61, 85, 294 corporate-level strategies, 154, 154 (table), 167 crisis management, 337 critical success factors, 43 (box) industry, 29, 40, 42 marketing, 222, 225 organizational culture, 296 political-legal forces, 59 Russia, 167 social forces, 84, 85 social responsibility, 133–134 strategic change, 293–294 strategy level-strategy complexity matrix, 258 (figure) SW/OT matrix, 256–257, 257 (figure) McKesson Corporation, 317 (exhibit), 318–319 M-commerce (mobile commerce), 98 Measurement, concern for, 233 (table) Memory device for making ethical decisions, 128 (box) Mendesh, John, 134 Mergers, 154, 424 See also specific companies Metaphor of the ledger, 129 Mexico: bribery, 125 Coca-Cola, 185 (box) ketchup consumption, 88 PepsiCo, 185 (box) soft drink industry, 185 (box) M-form structure (multidivisional structure), 276 Micro-localization, 201 Microsoft, 34, 244 Middle-class market, global, 73–77 Middle management, 250 Miles and Snow strategy framework, 196–197, 197 (box) Military conflicts, 56 Miller, Robert “Steve,” 162 Minorities, ethnic, 81 Minow, Nell, (box) Mintel International Group, 29 Mintzberg, Henry, Mis-investment, 176–178, 177 (exhibit) Mission: Bob’s Supermarket, 396 defined, Dollar General, 425 (exhibit) Dollar Tree, 460 (exhibit) Family Dollar Stores, 433 (exhibit), 452, 452 (exhibit) organizational direction and, 118 Skoda Auto, 555 strategy consistency with, 250 633 634 STRATEGIC MANAGEMENT Mobile commerce (m-commerce), 98 Mobile phones, 36, 60, 97, 507 Models: business, 3–4, 94–95 Carroll’s social responsibility, 479–480, 481 (exhibit) Porter and Kramer’s social responsibility, 480, 482 (exhibit) See also Management models; Porter’s five forces model Moffat, Robert, 123 (table) Moral hazard, 120, 159 Morningstar (website), 358 (table) Mortgage crisis, 119 Motel 6, 221 Motivators in organizational DNA, 348, 349 (exhibit), 350–351 Motley Fool, The (website), 358 (table) Motorcycle industry, 256, 268 MSNBC, 337 Mulally, Alan, 319 Multidivisional structure (M-form structure), 276 Multinational companies, 24–25, 42, 74–75 Multinational level of global corporate strategy, 166 Multiple strategies, 185 My Dollar Store, 65 My Macy’s, 523, 529 (exhibit) NAFTA See North American Free Trade Agreement NAICS See North American Industry Classification System Napster, 91 National Association of Realtors, 60 Negative amortization loans, 119 Negotiations, business, 89 Neilson, Gary L., 286–291, 311–325 Nespresso System, 180 Nestlé, 85, 167, 180 Netflix, 338 See also Netflix case study Netflix case study, 539–551 balance sheet, 548–549 (exhibit) competition, 541–542, 546 (exhibit) devices, app ready, 546 (exhibit) external environment, 541–543 financial operations, 545–546 history, 539–540 income statement, 547–548 (exhibit) internal environment, 543–546 leadership, 543–544 organizational culture, 544 promotion, 545 research & development, 544–545 stock price, 547 (exhibit) trends, 542–543 Netto, 169 Networks: distribution, 39, 251 in organizational DNA, 348, 349 (exhibit), 351 social, 110 Newspapers, 93–94 (box) Newswise (website), 358 (table) New Zealand See Kapai New Zealand case study Nextag, 160 Nicorette, 181 Nike case study, 385–386 9/11 terrorist attacks, 83, 335 Nokia, 24 Nordstrom, Inc., 521–522 North American Free Trade Agreement (NAFTA), 61 North American Industry Classification System (NAICS), 28, 358 (table) Novak, David, 167 Objectives, 118 Objectivism, 126 Occupational Safety and Health Act (1970), 58 (table) Occupy Wall Street movement, 124 (box), 139 Office Depot, 34, 590 (figure) Offshoring and outsourcing, 95, 136–139, 186, 351 Oil companies, 41, 347 Olofsson, Lars, 261 Online auction industry, 31 Online companies See Internet companies Openness, climate of, 233 (table) Operationally involved companies, 317 (exhibit), 319–323, 320–323 (exhibit), 324 Operational variety, 233 (table) Opportunities and threats, 254–255, 255 (box), 267–269 Oral-B, 152 Ore-Ida, 179 Oreo cookies, 201, 214 Organizational culture: about, 295–297 Costco, 412 cultural strength and diversity, 297 global concerns, 298 Macy’s Inc., 524 Netflix, 544 shaping, 298 strategy consistency with, 250 Organizational DNA, 348–352, 349 (exhibit) Organizational resources, 248, 250–251, 262 Organizational size, 197, 227, 274 Organizational structure, 271–291 about, 271–273, 272 (figure) assessing, 279–281, 280 (figure) business unit operations, corporate involvement in, 281 corporate restructuring, 282 defined, 271 Index functional structure, 275–276, 276 (figure) geographic divisional structure, 277–278, 277 (figure) horizontal growth, 274–275 Macy’s Inc., 522, 528–529 (exhibit) matrix structure, 278–279, 279 (figure) in organizational DNA, 348, 349 (exhibit), 351 organization chart, sample, 272 (figure) organization size and, 274 product divisional structure, 276–277 Skoda Auto, 562 (exhibit) strategy consistency with, 250 Toyota, 604 (figure), 605, 605 (figure) vertical growth, 273–274 Organizations: flat, 273, 274 formal, 333, 334 informal, 333–334 introduction of, 13 (box) steep, 273, 274 tall, 273, 274 See also specific organizations Outside directors, Outside perspectives on strategy, Outsourcing and offshoring, 95, 136–139, 186, 351 Packaging, 180 Pandrangi, Jaya, 286–291 Pantaloon Retail (India) Limited, 568–569 See also Staples case study Papadakis, Constantine, Papa John’s case study, 386–387 Paper, demand for, 88–89 Papermaking machinery industry, 77 Partnerships, 95, 157–159 Patagonia Inc., 244 Patents, 178–179, 178 (exhibit) Patient Protection and Affordable Care Act (2010), 58 (table) Pawnshops, 65 Pension Security Act (2002), 58 (table) PepsiCo: brand characteristics, 179 capabilities, differentiated, 290–291 corporate-level strategies, 159, 163 crisis management, 337 entry, threat of, 37 industry growth, 35 marketing, 222 Mexico, 185 (box) sustainable strategic management, 135 technological forces, 91 Performance appraisal, 250 Performance gap, 233 (table) Performance ratios, 226 (table) Pershing Square Capital Management, PEST forces See Political-legal, economic, social, and technological forces PET See Polyethylene terephthalate Peterson, Michael, 108–115 Petroleum industry, 55 Pfizer case study, 387–388 Pharmaceutical manufacturers, 134 Philip Morris, 127, 194 Phones, cell, 36, 60, 97, 507 Photography, digital See Kodak case study Physical resources, 248, 251 Physicians Committee for Responsible Medicine, 133 PIMS program See Profit impact of market strategy program Pink slime, 82 Pizza Patrón, 81 Place (distribution) strategies, 224–225, 224 (box) Planning, 250, 299 (box), 337, 339–340 Planters (company), 179 Poland, 555 (table) Political-legal, economic, social, and technological (PEST) forces, 53 Political-legal forces, 54–63 about, 54–55, 57–58 (table) case analysis, 62–63 (box) cost of, 55, 56–57 effects of, 55–56, 58–59 Family Dollar Stores, 456 global considerations, 60–62 government regulation, threat of, 60 military conflicts, 56 public demand, 59–60 safety crises, 59 United States legislation, major, 57–58 (table) variation among nations, 55 Polyethylene terephthalate (PET), 135 POM Wonderful, 179 Porter and Kramer’s social responsibility model, 480, 482 (exhibit) Porter’s five forces model, 32–42 about, 32, 33 (figure) bargaining power of buyers, 40–41 entry, threat of, 37–40 limitations of, 42 rivalry among incumbent firms, intensity of, 32–37 substitute products, 40 Porter’s generic strategies, 184–195 about, 184–185, 184 (table) assessing, 198–199, 198 (figure) differentiation strategy (without focus), 188–190, 189 (box) focus-differentiation strategy, 190–191 focus–low-cost–differentiation strategy, 195 focus–low-cost strategy, 187–188 low-cost–differentiation strategy, 191–195, 192–193 (box), 193 (table) low-cost (cost leadership) strategy (without focus), 185–187, 185 (box) Miles and Snow strategy framework compared to, 197 635 636 STRATEGIC MANAGEMENT “The Power of the Post-Recession Consumer” (Gerzema and D’Antonio), 241–245 Price comparisons, 97 Price wars, 263 Pricing: airline industry, 28 Bob’s Supermarket, 401–402, 402 (table) Costco, 411 low-cost–differentiation strategy, 194 strategies, 221–222 Primary industry, 29 PR Newswire (website), 358 (table) Process innovations, 193, 194 Process R & D, 230 Procter & Gamble: business unit strategies, 190 corporate-level strategies, 152, 157–158 Hispanic market, 81 marketing, 222 organizational structure, 278–279 SK-II crisis in China, 335, 339 (box) technological forces, 91–92 technology and patents, 179 Product divisional structure, 276–277 Production: capacity, 251 functional strategies, 220 (table), 227–230, 231 (box), 236 (table) sustainable, 194 Products: design of, 223 experience of, 180 features of, 189 innovation in, 193, 194 substitute, 40 women, marketing to, 80 See also specific products Product/service R & D, 230 Product/service strategies, 222–224 Profile, corporate, 151–153 Profitability of the industry, potential, 43 (box) Profit centers, 276 Profit impact of market strategy (PIMS) program, 330 Promotion strategies, 222, 545 Prospectors (Miles and Snow strategy framework), 196 Public as stakeholders, 119 (table) Public demand, 59–60 Public Register (website), 358 (table) Pull-based functional relationships, 290 Purchasing, 220 (table), 230–231, 231 (box) Quaker Oats, 179 Quality: about, 185 commitment to, 193–194 production strategies, 228–229 product/service, 251, 330–331 Skoda Auto, 556 Toyota, 603–604 Question marks, in BCG growth-share matrix, 164, 164 (figure), 165, 165 (figure) Quick ratio, 226 (table) Quidsi Inc., 49 Quill.com, 223 Quiznos, 191 Rand, Ayn, 126 R & D See Research and development Rationalization tactics, 128–129 Ratios, financial, 220 (table), 225–226, 226 (table), 227 (box) Razor and blades business model, Reactors (Miles and Snow strategy framework), 196 Real estate industry, 33, 60, 189 (box) Realized strategy, Recession: about, 56 buying patterns and, 101 consumers after, 241–245 dollar stores and, 448–449, 448–449 (exhibit) industry, effects on, 65 Netflix, 542 social forces and, 81 Recording Industry Association of America, 127 Recycling efforts in soft drink industry, 135 Reebok, 161 Reengineering, business process, 333 Relative market share, 29, 332 Relativism, ethical, 125 RelayFoods.com, 50–51 Religious trends, 79–80 Religious view of ethics, 127 Renault, 201 Report, finalizing case analysis, 358–359 Reputation, 244, 251 Research and development (R & D): functional strategies, 220 (table), 229–230, 236 (table) innovation and, 331 Netflix, 544–545 process, 230 product/service, 230 Researching case project, 355–356, 356–358 (box) Research in Motion (RIM), Ltd., 335 Research Intelligence Group (RIG), 125 Residential real estate, 189 (box) Resource-based theory, Resources, organizational, 248, 250–251, 262 Respol YPF, 55 Responsibility, denying, 128 Restructuring, corporate, 282 Retailing Today (website), 358 (table) Retrenchment strategies, 161–163 Return on assets, 226 (table) Return on equity, 226 (table) Index Return on sales, 226 (table) Reuters (website), 358 (table) Reverse innovation, 76 Reynolds American, 31 RIG See Research Intelligence Group Rights of victims, denying, 128 Rights view of ethics, 126–127 RIM See Research in Motion, Ltd “The Rise of Generation C” (Friedrich, Peterson, and Koster), 108–115 Rivalry among incumbent firms, intensity of, 32–37 RJR Nabisco, 230 Rules of engagement, 27 Russia, 167, 200, 557 Russo, Bill, 73–77 Ryanair, 188 SafeAuto, 195 Safety crises, 59 Saint Consulting Group, 160–161 Sales, return on, 226 (table) Sales tax collection, 58–59 Sales-to-working capital ratio, 226 (table) Salt content in packaged foods, 56 Sam’s Club, 410, 414 (exhibit) San Francisco Board of Supervisors, 59 Sarbanes-Oxley Act (2002), 8, 58 (table) Satellite television providers, 332 Save-A-Lot, 188 Sawhney, Mohanbir, 208–217 Scale: building, 216 economies of, 38, 100, 221, 228 innovation and, 180–181 Internet companies, 47–49 leveraging, 291 Scandals, corporate, 124 (table) Scanning imperative, 233 (table) Schultz, Howard, 268 Scientific perspective on strategic management, 5–6 Screening employees, 232 Sears, 155 (box), 294–295 (box) Secondary industry, 29 Seiyu, 337 Selection, adverse, 120 Self-interest view of ethics, 126 Self-publishing business model, Self-reference criterion, 88, 298 September 11, 2001, terrorist attacks, 83, 335 Service guarantees, 229 Service-level agreement (SLA), 290 Service stations, 41 Seven-Up, 37 Shakeout stage, of industry life cycle, 30 Shanghai Automotive Industry, 158 Shareholders, 9, (box), 118, 119, 119 (table) Sharp Shopper, 188 Sherman Antitrust Act (1890), 57 (table) Shijiazhuang Sanlu Group, 340 ShopperTrak RCT, 91 ShopRunner, 186 Showrooming, 97 SIC See Standard Industrial Classification SI Group, 61 Simon, William, 162 Simple structure, 272 Sinegal, Jim, 411 Singapore Airlines, 180 Sino Legend Chemical, 61 Sirius, 34 Six Sigma, 229 Size, organizational, 197, 227, 274 SK-II crisis, 335, 339 (box) Skinner, Jim, 59 Skoda Auto case study, 552–563 automobile industry trends, 559 balance sheet, 560–561 (exhibit) China, 558 Czech Republic, 554–555, 555 (table), 558 dealership network, 556 education, 556 Europe, 558 future, 559–560 health management, 557 history, 552–553 income statement, 560 (exhibit) India, 557 mission statement, 555 organizational structure, 562 (exhibit) production and sales, 557–559, 558 (table) quality, 556 Russia, 557 sales to fleet customers, 556 senior management, 555–556 Volkswagen, 553–554 SLA See Service-level agreement Sloan, Alfred P., Jr., 73 SLSC matrix See Strategy level-strategy complexity matrix Smartphone apps, 97 Smoking bans, 59 Social forces, 79–90 automobile industry, 86–88 case analysis, 89 (box) cultural differences, 88–90 demographic trends, 80–81 eating habits, 83–86 religion, 79–80 societal trends, 80–83 societal values, 79–80 Social media, 82 Social networks, 110 Social responsibility, 129–135 agency problem, 121–122 arguments for/against, 131–132 defined, 129 ethics and, 139–140 Macy’s Inc., 524 637 638 STRATEGIC MANAGEMENT manufacturing and waste management practices, 83 models, 479–480, 481 (exhibit), 482 (exhibit) in practical terms, 132–135 strategy formulation issues, 262 sustainable strategic management, 135 See also General Electric (GE) case study Social weighting, 128 Societal trends, 80–83 Societal values, 79–80 Soft drink industry: economic forces, 66 entry, threat of, 37 growth, 35 India, 337 Mexico, 185 (box) sustainable strategic management, 135 See also specific companies South Africa, 169 Southwest Airlines: case study, 388–389 corporate-level strategies, 154, 156 market share, 29 strategic change, 294 strategic leadership, 301–302 (box) ticket prices, 37 (box) Spam, 58 (table), 127 Span of control, 273 Speed, 97, 189 Spend Shift movement, 241–245 Sports Illustrated, 152, 155 Sport utility vehicles (SUVs), 86, 87 SSM See Sustainable strategic management Stability strategy, 159–161 Stakeholders, 118–119, 119 (table), 249 Stampfer, Meir, 85 Standard Industrial Classification (SIC), 28 Standards (benchmarks), 329–332 Stanley Black & Decker case study, 370–371 Staples, 34 See also Staples case study Staples case study, 563–593 background information, 564 customer market, 580 (table) dilemma, 564 financials, 565, 565 (table), 589 (table) future, 579 Future Group, 568 Future Logistics Solutions Limited, 569–570 India, air cargo networks, 578–579 India, cities, 571 (table), 582 (table), 583 (table), 584 (table), 587 (figure) India, consumer spending, 570–572, 583 (table), 584 (table) India, entry into, 567–568, 574, 585 (table) India, railway network, 577 India, real estate costs, 573 India, retail, 572–575, 585–586 (table) India, road networks, 576–577, 588 (table) India, shipping ports, 578 India, supply chain management/logistics, 575–578, 587 (figure) India, warehousing, 578 India, web-based operations/capabilities, 579 India, workforce, 570, 588 (figure) international operations, 566, 581–582 (table) North American delivery, 566, 580–581 (table) North American retail, 565, 580 (table) Office Depot, 590 (figure) Pantaloon Retail (India) Limited, 568–569 supply chain strategy and networks, generally, 566–567 Starbucks: business unit strategies, 189, 200 case study, 389–390 corporate-level strategies, 160, 162 opportunities, 268 strategy formulation, 263 StarKist, 180 Stars, in BCG growth-share matrix, 164,164 (figure), 165 (figure) Starwood Hotels & Resorts Worldwide, 123 (table) State sales tax collection, 58–59 Steep organizations, 273, 274 Steps in strategic management, Stockholders, 122 Stock price: Costco, 415 (exhibit) Dollar General, 432 (exhibit) Macy’s Inc., 530 (exhibit) Netflix, 547 (exhibit) Stone, Kevin, 268 Stonecipher, Harry, 123 (table) Stories, 296 Strategic alliances, 157–159 Strategic change: about, 293–295, 303 evaluating, 260–262 implementing, 305 (box) institutionalizing, 304–305 need for, recognizing, 304 Sears, 294–295 (box) vision, creating, 304 Strategic control, 327–334 about, 2, 327–328, 329 (figure) case analysis, 334 (box) defined, 327 exerting, 332–334, 333 (table) focus of, 328 need for, 327 published information for, 330–332 standards (benchmarks), 329–332 Strategic groups, 183–184 Strategic leadership, 299–303 about, 299–300 CEO succession, 299 (box) defined, 300 Index Johnson & Johnson, 301 (box) leadership style, 300–303, 303 (figure) Southwest Airlines, 301–302 (box) Strategic management: artistic perspective on, defined, influence on, 6–7, (table) scientific perspective on, 5–6 steps in, strategy versus, trends, 341 Strategic management companies, 317 (exhibit), 318, 320–323 (exhibit), 321, 322, 324 Strategies/strategy: business, 183 competitive, 183 consistency among, 250 defined, 1–2 factors in successful, generic, 183 inside perspectives on, 2–3 intended, mission and goals, consistency with, 250 multiple, 185 organizational culture, consistency with, 250 organizational structure, consistency with, 250 outside perspectives on, realized, strategic management versus, strategy formulation issues, 262 Strategy artists, Strategy at Work: airline industry, creating barriers to entry in, 37–38 (box) boards of directors, responsiveness of, (box) CEO succession planning, 299 (box) distribution in Internet retailing, 224 (box) ethical concerns and corporate scandals, 124 (box) ethical decisions, memory device for making, 128 (box) Hasbro, 82 (box) Johnson & Johnson, 301 (box) Kmart, 155 (box) Knight-Ridder & McClatchy, 93–94 (box) Kola Real, 185 (box) Sears, 155 (box), 294–295 (box) social responsibility, 133 (box) Southwest Airlines, 301–302 (box) Strategy execution See Organizational culture; Organizational structure; Strategic change; Strategic leadership Strategy formulation, 247–269 about, 2, 247 issues, 260–263 as iterative process, 4–5 opportunities and threats, 254–255, 255 (box) strategy level-strategy complexity matrix, 257–258, 258 (figure) strengths and weaknesses, 247–254, 252 (table), 253–254 (box) SW/OT matrix, 255–257, 257 (figure) Strategy level-strategy complexity (SLSC) matrix, 257–258, 258 (figure) Strategy + Business Readings: “CEO Succession 2010” (Favaro, Karlsson, and Neilson), 311–325 “The China Challenge” (Tse), 18–25 “Competing for the Global Middle Class” (Tse, Russo, and Haddock), 73–77 “Design for Frugal Growth” (Pandrangi, Lauster, and Neilson), 286–291 “Focus and Scale on the Internet” (Laseter), 47–51 “Growth Through Focus” (Khosla and Sawhney), 208–217 “How to Prevent Self-Inflicted Disasters” (Kronenberg), 347–352 “The Power of the Post-Recession Consumer” (Gerzema and D’Antonio), 241–245 “The Rise of Generation C” (Friedrich, Peterson, and Koster), 108–115 “The 10 Clues to Opportunity” (Sull), 267–269 “The Unique Advantage” (Kandybin and Grover), 176–181, 177 (exhibit), 178 (exhibit) “Values vs Value” (Devinney, Auger, and Eckhardt), 146–148 Strategy scientists, Streamlined Sales Tax Project, 59 Strength-opportunity alternatives, 256 Strengths, weaknesses, opportunities, and threats (SWOT) analysis: about, 247 opportunities and threats, 254–255, 255 (box), 267–269 SW/OT matrix, 255–257, 257 (figure) See also Strengths and weaknesses Strengths and weaknesses, 247–254 about, 247–248 case analysis, 253–254 (box) organizational resources, 248, 250–251 physical resources, 248, 251 top management, 249 VRIO framework, 251–253, 252 (table) Strength-threat alternatives, 256 Strong culture, 297 Structural innovations, 195 Structure See Organizational structure Subcultures, 296 Subscription business model, Substitute products, 40 Sull, Donald, 267–269 Sunscreen labels, 59–60 Supervisors, 250 Suppliers, 119 (table), 251 Supply chain management/logistics, 566–567, 575–578, 587 (figure) 639 640 STRATEGIC MANAGEMENT Sustainability, 341 Sustainable production, 194 Sustainable strategic management (SSM), 135 Sustained competitive advantage, SUVs See Sport utility vehicles Svensen-Ameln, Carl August, 268–269 Swarovski AG, 180 Swipe fees, 60 Switching costs, 35–36, 39 SWOT analysis See Strengths, weaknesses, opportunities, and threats analysis Synergy, 152 Systems perspective, 233 (table) Taco Bell, 43 (box), 88 See also Yum! Brands Tactics See Functional strategies Takeovers, 135–136, 456 See also specific companies Taleb, Nassim, 340 Tall organizations, 273, 274 Target, 9, 54, 193 Tata, 168 Taylor, Tom, 133 (box) Teams: crisis management, 339 employee, 455–456 top management, 10–11 Technological forces, 90–100 about, 90–92 case analysis, 96 (box) commoditization and mass customization, 99–100 electronic commerce, forms of, 98–99 Internet, 92–95 Internet, strategic dimensions of, 96–97 Technology: advantage, paths to, 178–179, 178 (exhibit) Generation C and, 113–114 Kodak, 506–507 Netflix, 542–543 physical resources, 251 See also Internet Telecommunications, 23–24, 112 “The 10 Clues to Opportunity” (Sull), 267–269 Tenure: board member, 249 global governance trends, 316, 319–320, 320 (exhibit), 321 (exhibit) top management, 249 Ternary Software, 11 Terrorism, 83, 335 Tesco, 101, 169 Thapliyal, Hira, 268 Threat of entry, 37–40 Threat of government regulation, 60 3M, 331 Thrift, 242–243 Time Warner Inc., 123 (table), 152, 155 Tim Hortons (company), 256 Timing, 189 “A Tipping Point for the Global Economy” (de Souza and Tse), 314–316, 314 (exhibit), 315 (exhibit) TomTom, 139–140 Toothpaste, 190 Top management, 249, 298 See also Chief executive officers Top management teams, 10–11 Total quality management (TQM), 229 Toy industry, 82 (box) Toyoda, Akio, 162, 599–600 Toyota: business unit strategies, 194 corporate-level strategies, 158, 162 social forces, 86 See also Toyota case study Toyota case study, 593–610 background, 593–594 crisis, described, 595–597 crisis, enduring, 602–603 crisis, government and consumer response to, 597–598 crisis, market effects of, 598–599 future, 605–606 legal challenges, 600–602 market for automobiles, 594–595 organization structure, 604 (figure), 605, 605 (figure) quality control failure, reasons for, 603–604 Toyoda, Akio, 599–600 Toys“R”Us, 159 TQM See Total quality management Trade associations, 355 Training and development, 250, 524 Transactional leadership, 300, 302, 303 (figure) Transformational leadership, 300–301, 302, 303 (figure) Transparency, 243–244 Trends: automobile industry, 559 demographic, 80–81 economic and consumer, 403 governance, global, 313–316, 314 (exhibit), 315 (exhibit) health and fitness, 81 Netflix, 542–543 religious, 79–80 societal, 80–83 strategic management, 341 Triple bottom line, 131 Trust, 243–244 Tse, Edward: “The China Challenge,” 18–25 “Competing for the Global Middle Class,” 73–77 “A Tipping Point for the Global Economy,” 314–316, 314 (exhibit), 315 (exhibit) Turnarounds, 161–162 Index Turnover: CEO, by region, 315, 315 (exhibit) CEO, China, 315, 315 (exhibit) CEO, global, 311–312, 311 (exhibit), 313, 322 (exhibit) inventory, 226 (table) middle management, supervisors, and employees, 250 Tylenol crisis, 336, 340 Unfriendly takeovers, 136 Union Carbide, 336 “The Unique Advantage” (Kandybin and Grover), 176–181, 177 (exhibit), 178 (exhibit) United (airline), 158 United Kingdom, 56, 169 United States: automobile industry, 53, 55, 56 exchange rates, 66–67 global imperative, 12 legislation, major, 57–58 (table) University presidents, U.S Department of Justice, 34, 60, 160 U.S Environmental Protection Agency, 55 U.S Federal Trade Commission, 134 U.S Food and Drug Administration, 57, 59–60, 125–126 U.S Immigration and Customs Enforcement, 55–56 Utilitarian view of ethics, 126 Valuable, rare, imitable, and organization (VRIO) framework, 251–253, 252 (table) Value America Inc., 48 Value chain, 248 Value innovations, 193, 194–195 Values, 79–80, 128–129, 486 (figure) “Values vs Value” (Devinney, Auger, and Eckhardt), 146–148 Venezuela, 55 Vertical growth, 273–274 Vertical integration, 157, 180 Viking Range Corporation, 190 Vision, 212, 299, 304, 460 (exhibit) Volkswagen (VW), 65, 74, 167, 553–554 VRIO framework See Valuable, rare, imitable, and organization framework VW See Volkswagen Walgreens, 153, 391–392 Wall Street Journal (website), 358 (table) Wal-Mart: bargaining power of buyers, 40 business unit strategies, 186, 198–199 Canada, 168 case study, 392–393 China, 169, 338 corporate-level strategies, 160–161, 162, 168–169 crisis management, 338 as Dollar General competitor, 446–447 (table) environmental labeling program, 83 focus, 49 Germany, 168–169 global corporate strategy, 168–169 health care costs, 138 India, 169 industry, 32 (box) managerial ethics, 123 (table) marketing, 221 political-legal forces, 54, 60 social responsibility, 134–135 South Africa, 169 strategic change, 262 United Kingdom, 169 Washington Times (website), 358 (table) Weak culture, 297 Weakness-opportunity alternatives, 256 Weakness-threat alternatives, 256 Webb-Pomerene Export Trade Act (1918), 57 (table) Websites for researching case projects, 355–356, 356–358 (box) Webvan Group Inc., 48, 50 Welch, Jack, 302 Wells, David, 543 Wendy’s, 154, 154 (table) Whistle-blowers, 126 Whole Foods Markets, 83 “Whole grain” on food labels, 57 Williams, Boyd, 189 (box) Winemaker’s logic, 208–209, 209 (table) Winn-Dixie, 338 Wizz Air, 188 Women, marketing products to, 80 Work-arounds, 351 The World Is Flat (Friedman), 90 World Trade Organization (WTO), 61 WTO See World Trade Organization Xerox, 39 XM (satellite radio), 34 Yahoo! Business News (website), 358 (table) Yahoo! Finance (website), 358 (table) YPF SA, 55 Yum! Brands: business unit strategies, 200 case study, 393–394 corporate-level strategies, 163, 167 organizational structure, 280 See also KFC; Taco Bell Zappos, 49 Zara International Inc., 181 Zhang Ruimin, 73 Zhejiang Provincial Industrial and Commercial Administration, 339 Zicam cold remedy, 337 641 The essential online tool for researchers from the world’s leading methods publisher More content and new features added this year! 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Fundamentals of Strategic Management What Is Strategic Management? 1 Intended and Realized Strategies Scientific and Artistic Perspectives on Strategic Management 5 Influence on Strategic. .. journals such as Academy of Management Learning and Education, Management Decision, and the British Journal of Management He serves on a number of academic journal editorial boards and consults... compensation package, advise top management on strategic issues, and monitor managerial and company performance as representatives of the shareholders Critics charge that board members not always