Preface
PART l
STRATEGlC MANAGEMENT AND
ENVlRONMENTAL ANALYSlS
Chapter l
Stakeholders and the Strategic Management Process
Chapter 2
The Broad Environment
Chapter 3
The Operating Environment and Extemal Stakeholders
PART2
ORGANlZATlONAL ANALYSlS
AND STRATEGlC DlRECTlON
Chapter 4
The Intemal Environment and Competitive Advantage
Chapter 5
Strategic Direction
PART3
STRATEGY FORMULATlON
Chapter 6
Business-Level Strategy
Chapter 7
Corporate-Level Strategy
PART4
STRATEGY IMPLEMENTATlON AND CONTROL
Chapter 8
Strategy Inplementation
Chapter 9
Strategic Control
Chapter lO
Corporate Restructuring
Case Note:
Preparing a Case Analysis
CASES
PART 1 PREFACE
CHaptter1 STRATEGlC MANAGEMENT AND ENVlRONMENTAL ANALYSlS
Stakeholders and the Strategic Management Process
THE STRATEGIC MANAGEMENT PROCESS
Strategic Insight 1.1 The Increasing Importance of Strategic Mamgement
Environmental and Organizational Analysis
Strategic Direction
Strategy Fonnulation
Strategy Implementation and Control
Strategic Application l.l Identifying the Strategic Management Process
Strategic Restructuring
ALTERNATIVE PERSPECTlVES ON STRATBGY DEVELOPMENT
STAKEHOLDER ANALYSB AND MANAGEMENT
Strategic Insight l .2 Stonyfield Farm Saved from Demise Through Innwvative Use of
Stakeholders
Stakeholder Analysis
Stakeholder Management
THE CASE FOR GOINMG GLOBAL
Strategic Insight 1.3 Marwgement Differences Across the United States, Europe, and Japan
Chapter2 The Broad Environment
ASSESSMENT OF THE BROAD ENVlRONMENT
Sodocultural Forces
Strategic Insight 2.1 Eliminating Waste Makes Bottom-Line Sense
Global Economic Forces
Technological Forces
Global Political and Legai rorces
Strategk tnsight 2.2 Golfing Conghmerate Forgets to Check with Regulators
Foreign Environments 38
Strategic Insight 23 Need a Friend in Asia! Try the Singapore Connection
CoLLECnNG INFORMATlON ON THE BROAD ENVlRONMENT
Strategic Application 2.1 Examples of Questwns to Ask About a Potential Foreign Market
Strategic Application 2.2 Assessment of the Braad Environment
Chapter3 The Operating Environment and External Stakeholders
ASSESSMENT OF THE OPERATING ENVlRONMENT
Extemal Stakeholders and Environmental Uncertainty
Strategic Management of Organizahons and Stakeholders: Concepts and Cases
Competitive Forces
Strategk Applkation 3.1 Abbrevwted Example of the Five Forces m the Brewing Industry
MANAGlNG AND PARTNERING WTTH EXTERNAL STAKEHOLDERS
Traditional Stakeholder Management Techniques
Strategic Partnering
Strategic Insight 3.2 Intemational Rivals Join torces in Major Alliances
PAKT2 ORGANlZATlONAL ANALYSlS AND STRATEGlC DlRECTlON
Chapter4 The Internal Environment and Competitive Advantage
llMTERNAL STAKEHOLDERS AS COMPETTnVE RESOURCES
The Chief Executive and Organization Managers
Strategic Insight 4.1 America's Most Successful Businesswomen
Strategic Insight 4.2 Sam Walton: A Visionary Leader
Owners
Employees and Human Resource Management
Strategic Insight 4.3 Effective Human Resource Management Leading to Competitive
Advantage
Strategic Insight 4.4 Analyzing Geographically Diverse Employees
Strategic Applkation 4.1 Conducting a Cultural Audit
INTERNAL RESOURCES AND COMPETmVE ADVANTAGE
Strategic Application 4.2 Competitive Resources Associated with intemal Stakeholders .
Uniquely Valuable Resources
Financial Resources
Value-Creating Activities
APPENDlX: AGENCY PROBLEMS: CONSEQUENCES AND PREVENTlONS
Executive Compensation
Short-Run versus Long-Run Decision Making
Agency and Growth
Agency and Boards of Directors
Chapler5 Strategic Direction
ESTABUSHMENT OF STRATEGlC DIRECTlON
Organizational Mission
Business Definition
Organizational Vision
Strategic Insight 5.1 TLC Group Uses Tragedy As an Opportunity for Redefining Its
Business
Enterprise Strategy and Ethics
Strategic Application 5.1 Applying the Ethical Theories to an Ethical Dilemma
Strategic Insight 5.2 Daw Coming's Ethics Audit Process
Strategic Insight 5.3 Is the Japanese Market Open to Foreign Companies?
Strategic Application 5.2 Identificatim of Strategic Direction
AT-nTUDE TOWARD GROWTH
Growth Strategies
Strategic Insight 5.4 Culligan Water Conditioning Expands Its Scope
Stability Strategies
INTERNATlONAL ExPANSlON AND STRATEGlC DlRECTlON
PART3 STRATEGY FORMULATlON
Chapter6 Business-Level Strategy
GENERlC BUSINMESS STRATEGlES
Cost Leadership
Strategic Insight 6.1 Chaparral Steel Unleashes Worker to Cut Costs
Differentiation
BestCost
Focus
Strategic Insight 6.2 Norton Manufacturing Focuses on Precision Crankshafts
GLOBAL BusINESS STRATEGY
Strategic Application 6.1 Analysis of Business-Level Strategies
Global Product/Market Approach
Strategic Insight 6.3 Porter's Competitive Advantage of Nations
Global Expansion Tactics
Enhancing Global Business-Level Strategy
POSITIONlNG COMPETlTlVE STRATEGlES IN A DYNAMlC ENVlRONMENT
Chapter7 Corporate-Level Strategy
DEVELOPMENT OF CORPORATE-LEVEL STRATEGY
Concentration
Vertical Integration
Diversification
Strategic Insight 7.1 Hitachi's Unrelated Diversification Strategy
Strategic Insight 7.2 Grand Metropolitan's Related Diversification Strategy
Corporate-Level Core Capabilities
Strategic Insight 7.3 Novell's Corporate-Level Tactics
DlVERSlFlCATlON METHODS
Intemal Venturing
Acquisitions
Strategic Alliances
Strategic Application 7.1 Diversificatwn Strategy Impact Amlysis
APPENDlX: PORTFOUO MODELS FOR SELECTlON OF BUSlNESSES AND iNVESTMENT PRlORlTlES
Boston Consulting Group Matrix
General Electric Business Screen
Strategic Application 7A.1 Assessing industry Attractiveness
Strategic Application 7A.2 Assessing Competitive Position
PART4 STRATEGY IMPLEMENTATlON AND CONTROL
Chapter8 Strategy Implementation
FUNCTlONAL STRATEGlES
Strategic Application 8.1 Evaluating Activities Using the Value Chain
Strategic Insight 8.1 An Example of Integrated, Interdependent Activity Mamgement-
The Just-in-Time Philosophy
MARKETlNG STRATEGY
Strategic Insight 8.2 Wallace Co, Inc., Wins Malcolm Baldrige Natioml Quality Avsard after
Redesign of Functional Strategies
Operations Strategy
Research and Development Strategy
Information Systems Strategy
Human Resources Strategy
Financial Strategy
Managing Functional Strategies
STRUCTURlNG TO SUPPORT STRATEGY
Strategic Application 8.2 Conducting a Functional Strategy Audit
Business-Level Structures
Strategic Insight 8.3 A Change m Organizational Structure at TransAmerica Telemarketing
Inc., Improves Customer Service
Corporate-Level Structures
Strategic Insight 8.4 Strategic Business Unit Structure at Johnson & Johnson
Chapter9 Strategic Control
DEVELOPMENT OF STRATEGlC CONTROL SYSTEMS
Designing a Strategic Control System
Determination of Control Factors
Strategic Insight 9.1 Lifeline Systems Implements TQM
Strategic AppLication 9.1 A Sample Scorecard for "Keeping Score with Stakeholders'
ELEMENTS OF A STRATEGlC CONTROL SYSTEM
Feedforward Controls
Feedback Control Systems
Concurrent Controls
Combining Control Elements
CRlSlS PREVENTlON AND MANAGEMENT
Strategic Application 9.2 Crisis Management Strategic Checklist
Chapter10 Corporate Restructuring
REORlENTATlON THROUGH RESTRUCTURlNG
Refocusing Corporate Assets
Retrenchment
Strategic Insight 10.1 Voices ofSuroivors: Words That Downsizing CEOs Should Hear
Chapter Xl Reorganization
Leveraged Buyouts
Strategic Insight 10.2 FM Corporation Survives Chapter Xl
Strategic Insight 10.3 Kelly Truck Line-A Small LBO That Worked
Changes to Organizational Design
Combined Restructuring Approaches
Strategic Insight 10.4 Internatwnal Harvester's Restructuring Process
REORlENTATlON THROUGH CONTTNUOUS LEARNlNG
Strategic Application lO.l Restructuring Impact Analysis for a Large, Diversified Firm
THE CHALLENGE OF THE FUTURE
Strategk insight 10.5 Leaming Profile ofa Leaming Organization
Cadr Note： Preparing a Case Analysis Case Note-l
STRUCTURlNG AN ENVlRONMENTAL ANALYSB CaSe Note-S
Industry Analysis Case Note-3
Extemal Stakeholders and the Broad Environment Case Note-4
Strategic Issues Facing the Industry Case Note-5
STRUCTURING AN ORGANIZATIONAL ANALYSB Case Note-6
Evaluation of the Intemal Environment Case Note-6
identification of Resources and Capabilities Case Note-7
Performance Evaluation Case Note-8
Sources of Competitive Advantage Case Note-8
DEVELOPlNG A STRATEGIC PLAN Case Note-9
Strategic Direction and Major Strategies Case Note-9
Evaluation of Opportunities and Recommendations Case Note-lO
Strategic Application A.l A PayoffMatrix Approach to Evaluating Opportunities Case Note-ll
Implementation and Control Case Note-ll
CASES
Part1 Agricultural Products
CASE l DlBRELL BROTHERS, INC. C-l
David W. Grigsby and Lester A. Hudson
CASE 2 PERDUE FARMS INC.--l995 C-l9
George C. Rubenson, Frank M. Shipper and Jean M. Hanebury
Part2 Automobile Industry
CASE 3 ELECTRlC VEHlCLES: MACROENVlRONMENTAL CONDlTlONS FOR INDUSTRY
REJUVENATlON C-32
Robert N. McGrath
CASE 4 THE GENERAL MOTORS CORPORATlON IN l995 C-42
Stephen J. Snyder and E. Brian Peach
CASE 5 U.S. ELECTRICAR C-60
Robert N. McGrath
Part3 Communications
CASE 6 NTN COMMUNlCATlONS, INC.-INTERACTlVE TELEVBlON: THE PUTURE IS NOW C-71
Julie Driscoll, Alan N. Hoffman, Alison Rude, Carol Rugg, and Bonnie Silvieria
CASE 7 XEL COMMUNlCATlONS INC. (A) C-80
Robert P. McGowan and Cynthia V. Fukami
CASE 8 XEL COMMUNlCATlONS, llMC. (0: FORMlNG A STRATEGlC PARTNERSHlP C-97
Cynthia V. Fukami and Robert P. McGowan
Part4 Computers and Software
CASE 9 HAMlLTON TECHNOLOGlES,IiNC. C-l03
John A. Seeger, John H. Friar, and Raymond M. Kinnunen
CASE lO IBM REBORN: RESTRUCTURlNG A SLUGGISH COMPUTER INDUSTRY GlANT C-l24
William C. House
Part5 Consumer Products (Miscellaneous)
CASE ll HARLEY-DAVlDSON C-l32
Nabil A. Ibrahim
CASE 12 RUBBERMAlD INCORPORATED: BEYONDGAULT C-148
Bernard A. Deitzer, Susan Hanlon, Alan G. Krigline, and Thomas C. Peterson
CASE l3 WHlRLPOOL'S QUEST FOR GLOBAL LEADERSHlP C-172
Arieh A. Ullmann
Part6 Diversified Firms
CASE l4 BOMBARDlER IN THE 1990sC-l92
Joseph Lampel and famal Shamsie
CASE 15 EASTMAN KODAK COMPANY C-206
James A. Kidney
CASE 16 TEXTRON INC. AND THE CESSNA 172 C-219
Robert N. McGrath, Blaise P. Waguespack, Jr, and George A. Wrigley
Part7 Entertainment Products and Services
CASE 17 CARMlKE ClNEMAS, INC, iN l995 C-231
Tracy Robertson Kramer and Marilyn L. Taylor
CASE 18 ClNEPLEX ODEON: BACK TO THE FUTURE C-246
Joseph Lampel and Jamal Shamsie
CASE 19 NlNTENDO VERSUS SEGA (A): THE VlDEOGAME INDUSTRY C-259
Romuald A. Stone
CASE 20 NlNTENDO VERSUS SEGA (B): THE VlDEOGAME WARS C-286
Romuald A. Stone
Part8 Specialty Food and Beverage
CASE 21 BEN & JERRY'S HOMEMADE INC.: "Yo! l'M YOUR CEO !C-297
Katherine A. Auer and Alan N. Hoffman
CASE 22 BROOKLYN BREWERY, LTD.: THE BEER INDUSTRY C-3l2
Robert J. Mockler, Narasimhaswamy Banavara, Alfred Sturup and Dorothy G. Dologite
Part9 Health Care
CASE 23 INVACARE CORPORATlON, 1997 C-341
Walter E. Greene
CASE24 PERRlGO COMPANY C-354
Ram Subramanian
CASE 25 BlOMET, INC.--l996 C-366
Peter Schoderbek
Part10 Retailing
CASE 26 DAYTON HUDSON CORPORATlON C-375
Jan Zahrly, Marshall Foote, Troy Gleason Aaron Martin, Brent Olson
and Brian Wavra
CASE 27 NORDSTROM INC., l996 C-383
Stephen E. Barndt
Paer11 PSpecial Stakeholder Issues
CASE 28 THE IRAN-CONTRA AFFAlR (A): "WlLL NO ONE RlD ME OF THB TROUBLESOME
PRlEST?" C-403
Steven J. Maranville
CASE 29 COLUMBIA COLLEGE AND LEADERSHIP POR WOMEN C-413
Michael F. Welsh
CASE 30 ASHLAND OlL AND THE TRI-CmES: TENSION ON THE RlVER 0-422
Brian K. Burton and W. Harvey Hegarty
GLOSSARY G-l
INDEX 1-1
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