Strategic Management and Business Policy: Toward Global Sustainability, 13th Edition

Welcome to the 13th edition of Strategic Management and Business Policy! Although the chapters are the same as those in the 12th edition, many of the cases are new and different. We completely revised seven of your favorite cases (Apple, Dell, Google, Carnival, Panera Bread, Whole Foods, and Church & Dwight) and added 12 brand-new ones (iRobot, Rosetta Stone, Logitech, Chrysler, Tesla Motors, TomTom, Volcom, TOMS Shoes, Best Buy, Dollar General, Boston Beer, and Burger King) for a total of 19 new cases! More than half of the cases in this book are new to this edition! Although we still make a distinction between full-length and mini cases, we have interwoven them throughout the book to better identify them with their industries. This edition continues the theme that runs throughout all 12 chapters: global environmental sustainability. This strategic issue will become even more important in the years ahead, as all of us struggle to deal with the consequences of climate change, global warming, and energy availability. We continue to be the most comprehensive strategy book on the market, with chapters ranging from corporate governance and social responsibility to competitive strategy, functional strategy, and strategic alliances. To keep the size of the book manageable, we offer special issue chapters dealing with technology, entrepreneurship, and not-for-profit organizations on the Web site (www.pearsonhighered.com/wheelen). Cover......Page 1 Half-Title Page......Page 3 Title Page......Page 5 Copyright Page......Page 6 Dedication Page......Page 7 Brief Contents......Page 11 Contents......Page 13 Preface......Page 31 About the Contributors......Page 39 Acknowledgments......Page 37 PART ONE: Introduction to Strategic Management and Business Policy......Page 51 CHAPTER 1 Basic Concepts of Strategic Management......Page 52 1.1 The Study of Strategic Management......Page 55 1.2 Globalization and Environmental Sustainability: Challenges to Strategic Management......Page 57 Global Issue: REGIONAL TRADE ASSOCIATIONS REPLACE NATIONAL TRADE BARRIERS......Page 59 1.3 Theories of Organizational Adaptation......Page 62 1.4 Creating a Learning Organization......Page 63 1.5 Basic Model of Strategic Management......Page 64 Strategy Highlight 1.1: DO YOU HAVE A GOOD MISSION STATEMENT?......Page 68 1.6 Initiation of Strategy: Triggering Events......Page 73 Strategy Highlight 1.2: TRIGGERING EVENT AT UNILEVER......Page 74 1.7 Strategic Decision Making......Page 75 1.8 The Strategic Audit: Aid to Strategic Decision-Making......Page 78 1.9 End of Chapter Summary......Page 79 APPENDIX 1.A: Strategic Audit of a Corporation......Page 84 CHAPTER 2 Corporate Governance......Page 92 2.1 Role of the Board of Directors......Page 95 Strategy Highlight 2.1: AGENCY THEORY VERSUS STEWARDSHIP THEORY IN CORPORATE GOVERNANCE......Page 100 Global Issue: CORPORATE GOVERNANCE IMPROVEMENTS THROUGHOUT THE WORLD......Page 106 2.2 The Role of Top Management......Page 108 Environmental Sustainability Issue: CONFLICT AT THE BODY SHOP......Page 109 2.3 End of Chapter Summary......Page 112 CHAPTER 3 Social Responsibility and Ethics in Strategic Management......Page 120 3.1 Social Responsibilities of Strategic Decision Makers......Page 122 Environmental Sustainability Issue: THE DOW JONES SUSTAINABILITY INDEX......Page 126 Strategy Highlight 3.1: JOHNSON & JOHNSON CREDO......Page 128 3.2 Ethical Decision Making......Page 129 Strategy Highlight 3.2: UNETHICAL PRACTICES AT ENRON AND WORLDCOM EXPOSED BY “WHISTLE-BLOWERS”......Page 130 Global Issue: HOW RULE-BASED AND RELATIONSHIP-BASED GOVERNANCE SYSTEMS AFFECT ETHICAL BEHAVIOR......Page 131 3.3 End of Chapter Summary......Page 136 Ending Case for Part One: BLOOD BANANAS......Page 140 PART TWO: Scanning the Environment......Page 143 CHAPTER 4 Environmental Scanning and Industry Analysis......Page 144 4.1 Environmental Scanning......Page 148 Environmental Sustainability Issue: MEASURING AND SHRINKING YOUR PERSONAL CARBON FOOTPRINT......Page 150 Global Issue: IDENTIFYING POTENTIAL MARKETS IN DEVELOPING NATIONS......Page 157 4.2 Industry Analysis: Analyzing the Task Environment......Page 159 Strategy Highlight 4.1: MICROSOFT IN A HYPERCOMPETITIVE INDUSTRY......Page 168 4.3 Competitive Intelligence......Page 170 Strategy Highlight 4.2: EVALUATING COMPETITIVE INTELLIGENCE......Page 172 4.4 Forecasting......Page 173 4.5 The Strategic Audit: A Checklist for Environmental Scanning......Page 175 4.6 Synthesis of External Factors—EFAS......Page 176 4.7 End of Chapter Summary......Page 177 APPENDIX 4.A: Competitive Analysis Techniques......Page 183 CHAPTER 5 Internal Scanning: Organizational Analysis......Page 186 5.1 A Resource-Based Approach to Organizational Analysis......Page 188 5.2 Business Models......Page 192 5.3 Value-Chain Analysis......Page 193 Strategy Highlight 5.1: A NEW BUSINESS MODEL AT SMARTYPIG......Page 194 5.4 Scanning Functional Resources and Capabilities......Page 197 Global Issue: MANAGING CORPORATE CULTURE FOR GLOBAL COMPETITIVE ADVANTAGE: ABB VERSUS MATSUSHITA......Page 200 Environmental Sustainability Issue: USING ENERGY EFFICIENCY FOR COMPETITIVE ADVANTAGE AND QUALITY OF WORK LIFE......Page 211 5.5 The Strategic Audit: A Checklist for Organizational Analysis......Page 213 5.6 Synthesis of Internal Factors......Page 214 5.7 End of Chapter Summary......Page 215 Ending Case for Part Two: BOEING BETS THE COMPANY......Page 220 PART THREE: Strategy Formulation......Page 223 CHAPTER 6 Strategy Formulation: Situation Analysis and Business Strategy......Page 224 6.1 Situation Analysis: SWOT Analysis......Page 226 6.2 Review of Mission and Objectives......Page 231 6.3 Generating Alternative Strategies by Using a TOWS Matrix......Page 232 6.4 Business Strategies......Page 233 Environmental Sustainability Issue: PATAGONIA USES SUSTAINABILITY AS DIFFERENTIATION COMPETITIVE STRATEGY......Page 237 6.5 End of Chapter Summary......Page 249 CHAPTER 7 Strategy Formulation: Corporate Strategy......Page 254 7.2 Directional Strategy......Page 256 Strategy Highlight 7.1: TRANSACTION COST ECONOMICS ANALYZES VERTICAL GROWTH STRATEGY......Page 260 Global Issue: COMPANIES......Page 262 Strategy Highlight 7.2: SCREENING CRITERIA FOR CONCENTRIC DIVERSIFICATION......Page 265 7.3 Portfolio Analysis......Page 270 Environmental Sustainability Issue: GENERAL MOTORS AND THE ELECTRIC CAR......Page 272 7.4 Corporate Parenting......Page 276 7.5 End of Chapter Summary......Page 279 CHAPTER 8 Strategy Formulation: Functional Strategy and Strategic Choice......Page 286 8.1 Functional Strategy......Page 288 Global Issue: INTERNATIONAL DIFFERENCES ALTER WHIRLPOOL’S OPERATIONS STRATEGY......Page 293 Environmental Sustainability Issue: OPERATIONS NEED FRESH WATER AND LOTS OF IT!......Page 295 8.2 The Sourcing Decision: Location of Functions......Page 297 8.3 Strategies to Avoid......Page 300 8.4 Strategic Choice: Selecting the Best Strategy......Page 301 8.5 Developing Policies......Page 308 8.6 End of Chapter Summary......Page 309 Ending Case for Part Three: KMART AND SEARS: STILL STUCK IN THE MIDDLE?......Page 316 PART FOUR: Strategy Implementation and Control......Page 319 CHAPTER 9 Strategy Implementation: Organizing for Action......Page 320 9.1 Strategy Implementation......Page 322 9.3 What Must Be Done?......Page 323 Environmental Sustainability Issue: FORD’S SOYBEAN SEAT FOAM PROGRAM......Page 324 Strategy Highlight 9.1: THE TOP TEN EXCUSES FOR BAD SERVICE......Page 327 9.4 How Is Strategy to Be Implemented? Organizing for Action......Page 328 9.5 International Issues in Strategy Implementation......Page 341 Global Issue: MULTIPLE HEADQUARTERS: A SIXTH STAGE OF INTERNATIONAL DEVELOPMENT?......Page 344 9.6 End of Chapter Summary......Page 346 CHAPTER 10 Strategy Implementation: Staffing and Directing......Page 350 10.1 Staffing......Page 352 Strategy Highlight 10.1: HOW HEWLETT-PACKARD IDENTIFIES POTENTIAL EXECUTIVES......Page 356 10.2 Leading......Page 361 Environmental Sustainability Issue: ABBOTT LABORATORIES’ NEW PROCEDURES FOR GREENER COMPANY CARS......Page 362 Global Issue: CULTURAL DIFFERENCES CREATE IMPLEMENTATION PROBLEMS IN MERGER......Page 371 10.3 End of Chapter Summary......Page 372 CHAPTER 11 Evaluation and Control......Page 378 11.1 Evaluation and Control in Strategic Management......Page 380 11.2 Measuring Performance......Page 382 Environmental Sustainability Issue: HOW GLOBAL WARMING COULD AFFECT CORPORATE VALUATION......Page 390 Global Issue: COUNTERFEIT GOODS AND PIRATED SOFTWARE: A GLOBAL PROBLEM......Page 396 11.3 Strategic Information Systems......Page 397 11.4 Problems in Measuring Performance......Page 398 Strategy Highlight 11.1: SOME RULES OF THUMB IN STRATEGY......Page 401 11.6 Strategic Incentive Management......Page 402 11.7 End of Chapter Summary......Page 404 Ending Case for Part Four: HEWLETT-PACKARD BUYS EDS......Page 410 PART FIVE: Introduction to Case Analysis......Page 413 CHAPTER 12 Suggestions for Case Analysis......Page 414 12.1 The Case Method......Page 415 12.3 Financial Analysis: A Place to Begin......Page 416 Environmental Sustainability Issue: IMPACT OF CARBON TRADING......Page 420 Global Issue: FINANCIAL STATEMENTS OF MULTINATIONAL CORPORATIONS: NOT ALWAYS WHAT THEY SEEM......Page 421 12.4 Format for Case Analysis: The Strategic Audit......Page 423 12.5 End of Chapter Summary......Page 425 APPENDIX 12.A: Resources for Case Research......Page 427 APPENDIX 12.B: Suggested Case Analysis Methodology Using the Strategic Audit......Page 430 APPENDIX 12.C: Example of a Student-Written Strategic Audit......Page 433 Ending Case for Part Five: IN THE GARDEN......Page 440 C......Page 893 E......Page 895 I......Page 896 L......Page 897 O......Page 898 P......Page 899 S......Page 900 Z......Page 902 C......Page 903 F......Page 904 K......Page 905 O......Page 906 S......Page 907 Z......Page 908 C......Page 909 H......Page 910 N......Page 911 S......Page 912 Z......Page 913 PART SEVEN: Cases in Strategic Management......Page 443 CASE 1 The Recalcitrant Director at Byte Products Inc.: Corporate Legality versus Corporate Responsibility......Page 449 CASE 2 The Wallace Group......Page 455 CASE 3 Everyone Does It......Page 465 CASE 4 The Audit......Page 469 CASE 5 Starbucks’ Coffee Company: The Indian Dilemma......Page 471 CASE 6 Guajilote Cooperativo Forestal: Honduras......Page 493 CASE 7 Apple Inc.: Performance in a Zero-Sum World Economy......Page 499 CASE 8 iRobot: Finding the Right Market Mix?......Page 525 CASE 9 Dell Inc.: Changing the Business Model (Mini Case)......Page 535 CASE 10 Rosetta Stone Inc.: Changing the Way People Learn Languages......Page 541 CASE 11 Logitech (Mini Case)......Page 561 CASE 12 Google Inc. (2010): The Future of the Internet Search Engine......Page 567 CASE 13 Reorganizing Yahoo!......Page 581 CASE 14 TiVo Inc.: TiVo vs. Cable and Satellite DVR: Can TiVo survive?......Page 599 CASE 15 Marvel Entertainment Inc.......Page 621 CASE 16 Carnival Corporation and plc (2010)......Page 637 CASE 17 Chrysler in Trouble......Page 657 CASE 18 Tesla Motors Inc. (Mini Case)......Page 675 CASE 19 Harley-Davidson Inc. 2008: Thriving through a Recession......Page 681 CASE 20 JetBlue Airways: Growing Pains?......Page 713 CASE 21 TomTom: New Competition Everywhere!......Page 729 CASE 22 Volcom Inc.: Riding the Wave......Page 745 CASE 23 TOMS Shoes (Mini Case)......Page 765 CASE 24 Best Buy Co. Inc.: Sustainable Customer Centricity Model?......Page 769 CASE 25 The Future of Gap Inc.......Page 783 CASE 26 Rocky Mountain Chocolate Factory Inc. (2008)......Page 795 CASE 27 Dollar General Corporation (Mini Case)......Page 819 CASE 28 Inner-City Paint Corporation (Revised)......Page 827 CASE 29 The Carey Plant......Page 831 CASE 30 The Boston Beer Company: Brewers of Samuel Adams Boston Lager (Mini Case)......Page 835 CASE 31 Wal-Mart and Vlasic Pickles......Page 839 CASE 32 Panera Bread Company (2010): Still Rising Fortunes?......Page 845 CASE 33 Whole Foods Market (2010): How to Grow in an Increasingly Competitive Market? (Mini Case)......Page 871 CASE 34 Burger King (Mini Case)......Page 877 CASE 35 Church & Dwight: Time to Rethink the Portfolio?......Page 881 This comprehensive text offers an engaging look into new and traditional strategic management topics. Its thorough coverage helps students develop an understanding of the wide range of theories and research available in this field--from competitive strategy and industry analysis to environmental trends and ethics. Integration of international issues throughout provides an essential understanding of global economics and its impact on business activities in any location This text equips readers with the strategic concepts they will need to know as we face issues such as climate change, global warming and energy availability.This thirteenth edition provides an array of timely, well-researched, and class-tested cases—nineteen of which are new or revised.