Too Tempting

Frank T. Rothaermel wrote Strategic Management 6e from the ground up because the world has changed dramatically since 5e was published (in January 2020). Events such as the COVID-19 pandemic, social justice movements, war, and disenchantment with the economic system profoundly impact how leaders run companies in their quest for competitive advantage. Rothaermel 6e synthesizes and integrates conceptual frameworks, empirical research, and practical applications with current real-world examples to help students make sense of a fast-changing and complex world. Rothaermel 6e is industry-leading in diversity and inclusion by featuring leaders with different backgrounds and companies that today’s students can relate to and thus internalize the knowledge acquired. The new 6e prepares students with the foundation they need to understand how companies gain and sustain competitive advantage while developing skills to become successful leaders capable of making well-reasoned strategic decisions. As sole author, Rothaermel continues to provide an unmatched tight linkage between the concepts and cases, resulting in engaging and enjoyable content. Cover Title Page Copyright Page Dedication Contents in Brief Contents About the Author Preface Acknowledgments PART ONE / ANALYSIS CHAPTER 1 WHAT IS STRATEGY? CHAPTERCASE 1 / Part I Tesla: The Trillion-Dollar Tech Titan 1.1 What Strategy Is: Gaining and Sustaining Competitive Advantage Crafting and Implementing Strategy at Tesla What is Competitive Advantage? 1.2 Stakeholder Strategy and Competitive Advantage Value Creation Stakeholder Impact Analysis 1.3 The Analysis, Formulation, Implementation (AFI) Strategy Framework Key Topics and Questions of the AFI Strategy Framework 1.4 Implications for Strategic Leaders CHAPTERCASE 1 / Part II CHAPTER 2 STRATEGIC LEADERSHIP: MANAGING THE STRATEGY PROCESS CHAPTERCASE 2 / Part I Facebook Becomes Meta 2.1 Strategic Leadership What Do Strategic Leaders Do? Strategic Leadership at Meta’s Facebook How Do You Become a Strategic Leader? The Strategy Process Across Levels: Corporate, Business, and Functional Leaders 2.2 Vision, Mission, and Values A Purpose-Driven Vision Mission Values 2.3 The Strategic Management Process Top-Down Strategic Planning Scenario Planning Strategy as Planned Emergence: Top Down and Bottom Up 2.4 Strategic Decision Making Strategic Inflection Points Two Distinct Modes of Decision Making Cognitive Biases and Decision Making How to Improve Strategic Decision Making 2.5 Implications for Strategic Leaders CHAPTERCASE 2 / Part II CHAPTER 3 EXTERNAL ANALYSIS: INDUSTRY STRUCTURE, COMPETITIVE FORCES, AND STRATEGIC GROUPS CHAPTERCASE 3 / Part I Airbnb’s Pandemic Pivot 3.1 The PESTEL Framework Political Factors Economic Factors Sociocultural Factors Technological Factors Ecological Factors Legal Factors 3.2 Industry Structure and Firm Strategy: The Five Forces Model Industry vs. Firm Effects In Determining Firm Performance Competition in the Five Forces Model The Threat of Entry The Power of Suppliers The Power of Buyers The Threat of Substitutes Rivalry Among Existing Competitors Applying the Five Forces Model to the U.S. Airline Industry A Sixth Force: The Strategic Role of Complements 3.3 Changes over Time: Entry Choices and Industry Dynamics Entry Choices Industry Dynamics 3.4 Performance Differences within the Same Industry: Strategic Groups The Strategic Group Model Mobility Barriers Strategic Group Dynamics 3.5 Implications for Strategic Leaders CHAPTERCASE 3 / Part II CHAPTER 4 INTERNAL ANALYSIS: RESOURCES, CAPABILITIES, AND CORE COMPETENCIES CHAPTERCASE 4 / Part I Five Guys’ Core Competency: “Make the Best Burger. Don’t Worry about Cost.” 4.1 From External to Internal Analysis 4.2 Core Competencies Leveraging Core Competencies Requires Focus on What to Do and What Not to Do Resources and Capabilities 4.3 The Resource-Based View Resource Heterogeneity and Resource Immobility The VRIO Framework Isolating Mechanisms: How to Sustain a Competitive Advantage 4.4 The Dynamic Capabilities Perspective Core Rigidities Dynamic Capabilities Resource Stocks and Resource Flows 4.5 The Firm Value Chain and Strategic Activity Systems Firm Value Chain Strategic Activity Systems 4.6 Implications for Strategic Leaders Using Swot Analysis to Generate Insights From External and Internal Analysis CHAPTERCASE 4 / Part II CHAPTER 5 SHARED VALUE AND COMPETITIVE ADVANTAGE CHAPTERCASE 5 / Part I Patagonia: A Pioneer in Creating Shared Value 5.1 From Corporate Social Responsibility to Creating Shared Value Shareholder Capitalism Shareholder Capitalism in Crisis? Stakeholder Capitalism and Shared Value 5.2 Competitive Advantage Accounting Metrics Shareholder Value Creation Economic Value Creation The Balanced Scorecard The Triple Bottom Line 5.3 Implications for Strategic Leaders CHAPTERCASE 5 / Part II PART TWO / FORMULATION CHAPTER 6 BUSINESS STRATEGY: DIFFERENTIATION, COST LEADERSHIP, AND BLUE OCEANS CHAPTERCASE 6 / Part I JetBlue Airways: En Route to a New Blue Ocean? 6.1 Business-Level Strategy: How to Compete for Advantage Strategic Position Generic Business Strategies 6.2 Differentiation Strategy: Understanding Value Drivers Product Features Customer Service Complements 6.3 Cost-Leadership Strategy: Understanding Cost Drivers Cost of Input Factors Economies of Scale Learning Curve Experience Curve 6.4 Business-Level Strategy and the Five Forces: Benefits and Risks Differentiation Strategy: Benefits and Risks Cost-Leadership Strategy: Benefits and Risks 6.5 Blue Ocean Strategy: Combining Differentiation and Cost Leadership Value Innovation Blue Ocean Strategy Gone Bad: “Stuck in the Middle” 6.6 Implications for Strategic Leaders CHAPTERCASE 6 / Part II CHAPTER 7 BUSINESS STRATEGY: INNOVATION, ENTREPRENEURSHIP, AND PLATFORMS CHAPTERCASE 7 / Part I Netflix: No Longer a Disruptor? 7.1 Competition Driven by Innovation Netflix’s Continued Innovation The Speed of Innovation The Innovation Process The Four Industrial Revolutions 7.2 Strategic and Social Entrepreneurship 7.3 Innovation and the Industry Life Cycle Introduction Stage Growth Stage Shakeout Stage Maturity Stage Decline Stage Crossing the Chasm 7.4 Types of Innovation Incremental vs. Radical Innovation Architectural vs. Disruptive Innovation 7.5 Platform Strategy The Platform vs. Pipeline Business Models The Platform Ecosystem 7.6 Implications for Strategic Leaders CHAPTERCASE 7 / Part II CHAPTER 8 CORPORATE STRATEGY: VERTICAL INTEGRATION AND DIVERSIFICATION CHAPTERCASE 8 / Part I Amazon’s Corporate Strategy 8.1 What Is Corporate Strategy? Why Firms Need to Grow Three Dimensions of Corporate Strategy 8.2 The Boundaries of the Firm Firms vs. Markets: Make or Buy? The Make-or-Buy Continuum 8.3 Vertical Integration along the Industry Value Chain Types of Vertical Integration Benefits and Risks of Vertical Integration When Does Vertical Integration Make Sense? Alternatives to Vertical Integration 8.4 Corporate Diversification: Expanding Beyond a Single Market Types of Corporate Diversification Core Competencies and Corporate Diversification Corporate Diversification and Firm Performance 8.5 Implications for Strategic Leaders CHAPTERCASE 8 / Part II CHAPTER 9 CORPORATE STRATEGY: STRATEGIC ALLIANCES, MERGERS, AND ACQUISITIONS CHAPTERCASE 9 / Part I Little Lyft Gets Big Alliance Partners and Beats Uber in Going Public 9.1 How Firms Achieve Growth The Build-Borrow-Buy Framework 9.2 Strategic Alliances Why Do Firms Enter Strategic Alliances? Governing Strategic Alliances Alliance Management Capability 9.3 Mergers and Acquisitions Why Do Firms Merge with Competitors? Why Do Firms Acquire Other Firms? M&A and Competitive Advantage 9.4 Implications for Strategic Leaders CHAPTERCASE 9 / Part II CHAPTER 10 GLOBAL STRATEGY: COMPETING AROUND THE WORLD CHAPTERCASE 10 / Part I IKEA: The World’s Most Profitable Retailer 10.1 What Is Globalization? Stages of Globalization State of Globalization 10.2 Competing Globally: Why? Advantages of Competing Globally Disadvantages of Competing Globally 10.3 Competing Globally: Where and How? Where in the World to Compete? The CAGE Distance Framework How Do MNEs Enter Foreign Markets? 10.4 Cost Reductions vs. Local Responsiveness International Strategy Multidomestic Strategy Global-Standardization Strategy Transnational Strategy 10.5 National Competitive Advantage: World Leadership in Specific Industries Porter’s Diamond Framework 10.6 Implications for Strategic Leaders CHAPTERCASE 10 / Part II PART THREE / IMPLEMENTATION CHAPTER 11 ORGANIZATIONAL DESIGN: STRUCTURE, CULTURE, AND CONTROL CHAPTERCASE 11 / Part I “A” Is for Alphabet and “G” Is for Google 11.1 Organizational Design and Competitive Advantage Organizational Inertia: The Failure of Established Firms Organizational Structure Mechanistic vs. Organic Organizations 11.2 Strategy and Structure Simple Structure Functional Structure Multidivisional Structure Matrix Structure 11.3 Organizing for Innovation 11.4 Organizational Culture: Values, Norms, and Artifacts Where Do Organizational Cultures Come From? How Does Organizational Culture Change? Organizational Culture and Competitive Advantage 11.5 Strategic Control-and-Reward Systems Input Controls Output Controls 11.6 Implications for Strategic Leaders CHAPTERCASE 11 / Part II CHAPTER 12 CORPORATE GOVERNANCE, BUSINESS ETHICS, AND BUSINESS MODELS CHAPTERCASE 12 / Part I Theranos: Bad Blood 12.1 Corporate Governance Agency Theory The Board of Directors Other Governance Mechanisms 12.2 Strategy and Business Ethics Bad Apples vs. Bad Barrels 12.3 Business Models: Strategy in Action The Business Model Framework Popular Business Models Dynamic Nature of Business Models Business Model Innovation 12.4 Implications for Strategic Leaders CHAPTERCASE 12 / Part II PART FOUR / MINICASES HOW TO CONDUCT A CASE ANALYSIS Company Index Name Index Subject Index "The market for strategy texts can be broadly separated into two overarching categories: traditional application-based and research-based. Traditional application-based strategy books represent the first-generation texts with first editions published in the 1980s. The researchbased strategy books represent the second-generation texts with first editions published in the 1990s. I wrote this text to address a needed new category-a third generation of strategy content that combines into one the student-accessible, application-oriented frameworks of the first-generation texts with the research-based frameworks of the second-generation texts. The market response to this unique approach to teaching and studying strategy continues to be overwhelmingly enthusiastic"-- Provided by publisher