Description
Strategic Management Creating Competitive Advantages
1
2
3
4
Strategic Analysis
1 Strategic Management: Creating Competitive Advantages 4
2 Analyzing the External Environment of the Firm 36
3 Assessing the Internal Environment of the Firm 68
4 Recognizing a Firm’s Intellectual Assets 114
Strategic Formulation
5 Business-Level Strategy: Creating and Sustaining Competitive Advantages 146
6 Corporate-Level Strategy: Creating Value through Diversi?cation 182
7 International Strategy: Creating Value in Global Markets 218
8 Digital Business Strategy: Leveraging Internet and E-Business Capabilities 250
Strategic Implementation
9 Strategic Control and Corporate Governance 288
10 Creating Effective Organizational Designs 328
11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization 360
12 Managing Innovation and Fostering Corporate Entrepreneurship 394
13 Recognizing Opportunities and Creating New Ventures 428
Case Analysis
14 Analyzing Strategic Management Cases 470
Cases 500
Indexes 919
des33917_fm 11/19/04 10:56 AM Page v
contents
1
Strategic Analysis
Chapter 1
Strategic Management: Creating
Competitive Advantages 4
What Is Strategic Management? 8
De?ning Strategic Management 9
The Four Key Attributes of Strategic Management 10
The Strategic Management Process 11
Strategy Analysis 12
Strategy Formulation 14
Strategy Implementation 15
The Role of Corporate Governance and
Stakeholder Management 17
Zero Sum or Symbiosis? Two Alternate
Perspectives of Stakeholder Management 19
Social Responsibility: Moving Beyond the
Immediate Stakeholders 19
The Strategic Management Perspective: An
Imperative Throughout the Organization 21
Some Key Driving Forces 21
Enhancing Employee Involvement in the Strategic
Management Process 24
Ensuring Coherence in Strategic Direction 26
Organizational Vision 26
Mission Statements 28
Strategic Objectives 29
Summary 31
Chapter 2
Analyzing the External Environment
of the Firm 36
Creating the Environmentally Aware
Organization 39
The Role of Scanning, Monitoring, Competitive
Intelligence, and Forecasting 39
SWOT Analysis 45
The General Environment 45
The Demographic Segment 45
The Sociocultural Segment 48
The Political/Legal Segment 48
The Technological Segment 49
The Economic Segment 51
The Global Segment 52
Relationships among Elements of the
General Environment 52
The Competitive Environment 53
Porter’s Five-Forces Model of Industry
Competition 54
Strategic Groups within Industries 61
Summary 64
Chapter 3
Assessing the Internal Environment
of the Firm 68
Value-Chain Analysis 71
Primary Activities 73
Support Activities 76
Interrelationships among Value-Chain Activities
within and across Organizations 81
Resource-Based View of the Firm 81
Types of Firm Resources 82
Firm Resources and Sustainable
Competitive Advantages 84
The Generation and Distribution of a
Firm’s Pro?ts: Extending the Resource-Based
View of the Firm 89
Evaluating Firm Performance:
Two Approaches 91
Financial Ratio Analysis 91
Integrating Financial Analysis and Stakeholder
Perspectives: The Balanced Scorecard 94
Summary 97
Appendix to Chapter 3: Financial Ratio Analysis 102
Chapter 4
Recognizing a Firm’s
Intellectual Assets 114
The Central Role of Knowledge
in Today’s Economy 117
Human Capital: The Foundation
of Intellectual Capital 120
Attracting Human Capital 121
Developing Human Capital 123
Retaining Human Capital 126
The Vital Role of Social Capital 129
How Social Capital Helps Attract
and Retain Talent 130
The Potential Downside of Social Capital 132
Using Technology to Leverage Human
Capital and Knowledge 133
des33917_fm 11/19/04 10:56 AM Page vi
Related Diversi?cation: Market Power 190
Pooled Negotiating Power 190
Vertical Integration 192
Unrelated Diversi?cation: Financial
Synergies and Parenting 195
Corporate Parenting and Restructuring 197
Portfolio Management 198
Caveat: Is Risk Reduction a Viable Goal of
Diversi?cation? 201
The Means to Achieve Diversi?cation 201
Mergers and Acquisitions 202
Strategic Alliances and Joint Ventures 203
Internal Development 206
Real Options Analysis: A Useful Tool 207
How Managerial Motives Can Erode
Value Creation 208
Growth for Growth’s Sake 209
Egotism 210
Antitakeover Tactics 212
Summary 212
Chapter 7
International Strategy: Creating
Value in Global Markets 218
The Global Economy: A Brief Overview 220
Factors Affecting a Nation’s Competitiveness 221
Factor Conditions 222
Demand Conditions 223
Related and Supporting Industries 223
Firm Strategy, Structure, and Rivalry 224
Concluding Comment on Factors Affecting
a Nation’s Competitiveness 226
International Expansion: A Company’s
Motivations and Risks 226
Motivations for International Expansion 226
Potential Risks of International Expansion 228
Achieving Competitive Advantage
in Global Markets 232
Two Opposing Pressures: Reducing Costs
and Adapting to Local Markets 232
International Strategy 234
Global Strategy 235
Multidomestic Strategy 236
Transnational Strategy 238
Entry Modes of International Expansion 239
Exporting 240
Licensing and Franchising 242
Strategic Alliances and Joint Ventures 242
Wholly Owned Subsidiaries 244
Summary 246
2
Using Networks to Share Information
and Develop Products and Services 133
Codifying Knowledge for Competitive Advantage 134
Retaining Knowledge When Employees Leave 135
The Central Role of Leveraging Human
Capital in Strategy Formulation 137
Leveraging Human Capital and
Business-Level Strategy 137
Leveraging Human Capital and
Corporate-Level Strategy 137
Leveraging Human Capital and
International-Level Strategy 139
Leveraging Human Capital and
Internet Strategies 139
Summary 139
Strategic Formulation
Chapter 5
Business-Level Strategy: Creating and
Sustaining Competitive Advantages 146
Types of Competitive Advantage
and Sustainability 150
Overall Cost Leadership 151
Differentiation 157
Focus 162
Combination Strategies: Integrating Overall
Low Cost and Differentiation 164
Industry Life Cycle Stages:
Strategic Implications 169
Strategies in the Introduction Stage 170
Strategies in the Growth Stage 171
Strategies in the Maturity Stage 172
Strategies in the Decline Stage 173
Relating Generic Strategies to Stages of the
Industry Life Cycle: The Personal
Computer Industry 175
Turnaround Strategies 175
Summary 177
Chapter 6
Corporate-Level Strategy:
Creating Value through Diversi?cation 182
Making Diversi?cation Work: An Overview 186
Related Diversi?cation: Economies of Scope
and Revenue Enhancement 187
Leveraging Core Competencies 188
Sharing Activities 189
des33917_fm 11/19/04 10:56 AM Page vii
3
Linking Strategic Control to Business-Level
and Corporate-Level Strategies 304
Business-Level Strategy and Strategic Control 305
Corporate-Level Strategy and Strategic Control 306
The Role of Corporate Governance 307
The Modern Corporation: The Separation
of Owners (Shareholders) and Management 309
Governance Mechanisms: Aligning the Interests
of Owners and Managers 311
External Governance Control Mechanisms 317
Summary 321
Chapter 10
Creating Effective
Organizational Designs 328
Traditional Forms of Organizational
Structure 330
Patterns of Growth of Large Corporations 331
Simple Structure 332
Functional Structure 333
Divisional Structure 334
Matrix Structure 338
International Operations: Implications
for Organizational Structure 339
How an Organization’s Structure Can In?uence
Strategy Formulation 341
Boundaryless Organizational Designs 341
The Barrier-Free Organization 343
The Modular Organization 347
The Virtual Organization 348
Boundaryless Organizations: Making Them Work 352
Summary 355
Chapter 11
Strategic Leadership: Creating
a Learning Organization and an
Ethical Organization 360
Leadership: Three Interdependent Activities 363
Setting a Direction 365
Designing the Organization 365
Nurturing a Culture Dedicated to Excellence
and Ethical Behavior 367
Overcoming Barriers to Change and the
Effective Use of Power 367
Emotional Intelligence: A Key
Leadership Trait 370
Developing a Learning Organization 374
Empowering Employees at All Levels 375
Accumulating and Sharing Internal Knowledge 376
Chapter 8
Digital Business Strategy: Leveraging
Internet and E-Business Capabilities 250
How the Internet Is Affecting the Five
Competitive Forces 257
The Threat of New Entrants 257
The Bargaining Power of Buyers 258
The Bargaining Power of Suppliers 259
The Threat of Substitutes 260
The Intensity of Competitive Rivalry 262
How the Internet Adds Value 263
Search Activities 263
Evaluation Activities 265
Problem-Solving Activities 265
Transaction Activities 266
Other Sources of Competitive Advantage 267
Business Models 268
How the Internet Is Affecting the
Competitive Strategies 270
Overall Cost Leadership 272
Differentiation 273
Focus 275
Are Internet-Based Advantages Sustainable? 278
Are Combination Strategies the Key
to E-Business Success? 278
Leveraging Internet Capabilities 280
Summary 281
Strategic Implementation
Chapter 9
Strategic Control and Corporate
Governance 288
Ensuring Informational Control: Responding
Effectively to Environmental Change 291
A Traditional Approach to Strategic Control 291
A Contemporary Approach to Strategic Control 292
Attaining Behavioral Control: Balancing
Culture, Rewards, and Boundaries 295
Building a Strong and Effective Culture 296
Motivating with Rewards and Incentives 297
Setting Boundaries and Constraints 299
Behavioral Control in Organizations:
Situational Factors 302
Evolving from Boundaries to Rewards
and Culture 303
des33917_fm 11/19/04 10:56 AM Page viii
Gathering and Integrating External Information 378
Challenging the Status Quo and Enabling
Creativity 380
Creating an Ethical Organization 381
Individual Ethics versus Organizational Ethics 381
Integrity-Based versus Compliance-Based
Approaches to Organizational Ethics 383
Role Models 387
Corporate Credos and Codes of Conduct 387
Reward and Evaluation Systems 388
Summary 390
Chapter 12
Managing Innovation and Fostering
Corporate Entrepreneurship 394
Managing Innovation 397
Types of Innovation 398
Challenges of Innovation 400
De?ning the Scope of Innovation 401
Managing the Pace of Innovation 402
Collaborating with Innovation Partners 402
Corporate Entrepreneurship 404
Focused Approaches to Corporate
Entrepreneurship 405
Dispersed Approaches to Corporate
Entrepreneurship 408
Measuring the Success of Corporate
Entrepreneurship Activities 410
Entrepreneurial Orientation 414
Autonomy 414
Innovativeness 416
Proactiveness 418
Competitive Aggressiveness 419
Risk Taking 421
Summary 423
Chapter 13
Recognizing Opportunities
and Creating New Ventures 428
New Ventures and Small Businesses 431
Categories of Entrepreneurial Ventures 431
Opportunity Recognition: Identifying
and Developing Market Opportunities 435
The Opportunity Recognition Process 438
Characteristics of Good Opportunities 440
Entrepreneurial Resources 442
New-Venture Financing 443
Other Entrepreneurial Resources 447
Entrepreneurial Leadership 450
Vision 450
4
Dedication and Drive 451
Commitment to Excellence 453
Entrepreneurial Strategy 454
Entry Strategies 455
Generic Strategies 459
Combination Strategies 462
Summary 463
Case Analysis
Chapter 14
Analyzing Strategic
Management Cases 470
Why Analyze Strategic Management Cases? 472
How to Conduct a Case Analysis 473
Become Familiar with the Material 475
Identify Problems 477
Conduct Strategic Analyses 477
Propose Alternative Solutions 478
Make Recommendations 480
How to Get the Most from Case Analysis 480
Using Con?ict-Inducing Decision-Making
Techniques in Case Analysis 483
Symptoms of Groupthink and How to Prevent It 485
Using Con?ict to Improve Decision Making 485
Following the Analysis-Decision-Action Cycle
in Case Analysis 487
Summary 491
Appendix to Chapter 14: Sources of Company and Industry
Information 493
Cases
1. Adolph Coors in the Brewing Industry 500
2. American Red Cross to 2002 (A) 514
3. American Red Cross, 2002–2004 (B) 525
4. Atari and InfoGrames Entertainment SA 530
5. Ben & Jerry’s Homemade, Inc.: Passing
the Torch 540
6. The Best-Laid Incentive Plans 555
7. Carly Fiorina: The Reinvention
of Hewlett-Packard 559
des33917_fm 11/19/04 10:56 AM Page ix
29. Panera Bread Company 783
30. Pixar Animation Studios 793
31. Procter & Gamble 799
32. Robin Hood 805
33. Samsung Electronics 806
34. Schoolhouse Lane Estates 811
35. Segway: A New Dimension
in Human Transportation 825
36. The Skeleton in the Corporate Closet 834
37. Southwest Airlines: How Much Can
“LUV” Do? 837
38. Starbucks Corporation: Competing
in a Global Market 846
39. Toys “R” Us Moving into 2004 866
40. Trouble in Paradise 872
41. Wal-Mart’s Strategy for the 21st Century:
Sustaining Dominance 876
42. World Wrestling Entertainment 895
43. Yahoo! 901
44. Yum! Brands, Pizza Hut, and KFC 907
Indexes
Company 919
Name 926
Subject 936
8. Challenges Brewing
at Breckenridge Brewery 576
9. Chiquita’s Global Turnaround 589
10. Crown Cork and Seal in 1989 597
11. Dippin’ Dots Ice Cream 615
12. eBay: King of the Online Auction Industry 621
13. Edward Marshall Boehm, Inc. 640
14. Ford Motor Company in 2004: Entering
a Second Century of Existence 641
15. FreshDirect 650
16. General Motors 660
17. Go Global—or No? 666
18. Green Mountain Coffee Roasters 670
19. Growing for Broke 679
20. Heineken 683
21. Jay’s Foods, LLC 689
22. JetBlue Airways 700
23. Johnson & Johnson 710
24. The Lincoln Electric Company, 1989 716
25. McDonald’s 730
26. Microsoft’s Battle for the Living Room:
The Trojan Horse—The Xbox 736
27. Nokia’s Strategic Intent for the
21st Century 751
28. Outback Steakhouse Goes International 764
des33917_fm 11/19/04 10:56 AM Page x
doc_675677078.pdf
Strategic Management Creating Competitive Advantages
1
2
3
4
Strategic Analysis
1 Strategic Management: Creating Competitive Advantages 4
2 Analyzing the External Environment of the Firm 36
3 Assessing the Internal Environment of the Firm 68
4 Recognizing a Firm’s Intellectual Assets 114
Strategic Formulation
5 Business-Level Strategy: Creating and Sustaining Competitive Advantages 146
6 Corporate-Level Strategy: Creating Value through Diversi?cation 182
7 International Strategy: Creating Value in Global Markets 218
8 Digital Business Strategy: Leveraging Internet and E-Business Capabilities 250
Strategic Implementation
9 Strategic Control and Corporate Governance 288
10 Creating Effective Organizational Designs 328
11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization 360
12 Managing Innovation and Fostering Corporate Entrepreneurship 394
13 Recognizing Opportunities and Creating New Ventures 428
Case Analysis
14 Analyzing Strategic Management Cases 470
Cases 500
Indexes 919
des33917_fm 11/19/04 10:56 AM Page v
contents
1
Strategic Analysis
Chapter 1
Strategic Management: Creating
Competitive Advantages 4
What Is Strategic Management? 8
De?ning Strategic Management 9
The Four Key Attributes of Strategic Management 10
The Strategic Management Process 11
Strategy Analysis 12
Strategy Formulation 14
Strategy Implementation 15
The Role of Corporate Governance and
Stakeholder Management 17
Zero Sum or Symbiosis? Two Alternate
Perspectives of Stakeholder Management 19
Social Responsibility: Moving Beyond the
Immediate Stakeholders 19
The Strategic Management Perspective: An
Imperative Throughout the Organization 21
Some Key Driving Forces 21
Enhancing Employee Involvement in the Strategic
Management Process 24
Ensuring Coherence in Strategic Direction 26
Organizational Vision 26
Mission Statements 28
Strategic Objectives 29
Summary 31
Chapter 2
Analyzing the External Environment
of the Firm 36
Creating the Environmentally Aware
Organization 39
The Role of Scanning, Monitoring, Competitive
Intelligence, and Forecasting 39
SWOT Analysis 45
The General Environment 45
The Demographic Segment 45
The Sociocultural Segment 48
The Political/Legal Segment 48
The Technological Segment 49
The Economic Segment 51
The Global Segment 52
Relationships among Elements of the
General Environment 52
The Competitive Environment 53
Porter’s Five-Forces Model of Industry
Competition 54
Strategic Groups within Industries 61
Summary 64
Chapter 3
Assessing the Internal Environment
of the Firm 68
Value-Chain Analysis 71
Primary Activities 73
Support Activities 76
Interrelationships among Value-Chain Activities
within and across Organizations 81
Resource-Based View of the Firm 81
Types of Firm Resources 82
Firm Resources and Sustainable
Competitive Advantages 84
The Generation and Distribution of a
Firm’s Pro?ts: Extending the Resource-Based
View of the Firm 89
Evaluating Firm Performance:
Two Approaches 91
Financial Ratio Analysis 91
Integrating Financial Analysis and Stakeholder
Perspectives: The Balanced Scorecard 94
Summary 97
Appendix to Chapter 3: Financial Ratio Analysis 102
Chapter 4
Recognizing a Firm’s
Intellectual Assets 114
The Central Role of Knowledge
in Today’s Economy 117
Human Capital: The Foundation
of Intellectual Capital 120
Attracting Human Capital 121
Developing Human Capital 123
Retaining Human Capital 126
The Vital Role of Social Capital 129
How Social Capital Helps Attract
and Retain Talent 130
The Potential Downside of Social Capital 132
Using Technology to Leverage Human
Capital and Knowledge 133
des33917_fm 11/19/04 10:56 AM Page vi
Related Diversi?cation: Market Power 190
Pooled Negotiating Power 190
Vertical Integration 192
Unrelated Diversi?cation: Financial
Synergies and Parenting 195
Corporate Parenting and Restructuring 197
Portfolio Management 198
Caveat: Is Risk Reduction a Viable Goal of
Diversi?cation? 201
The Means to Achieve Diversi?cation 201
Mergers and Acquisitions 202
Strategic Alliances and Joint Ventures 203
Internal Development 206
Real Options Analysis: A Useful Tool 207
How Managerial Motives Can Erode
Value Creation 208
Growth for Growth’s Sake 209
Egotism 210
Antitakeover Tactics 212
Summary 212
Chapter 7
International Strategy: Creating
Value in Global Markets 218
The Global Economy: A Brief Overview 220
Factors Affecting a Nation’s Competitiveness 221
Factor Conditions 222
Demand Conditions 223
Related and Supporting Industries 223
Firm Strategy, Structure, and Rivalry 224
Concluding Comment on Factors Affecting
a Nation’s Competitiveness 226
International Expansion: A Company’s
Motivations and Risks 226
Motivations for International Expansion 226
Potential Risks of International Expansion 228
Achieving Competitive Advantage
in Global Markets 232
Two Opposing Pressures: Reducing Costs
and Adapting to Local Markets 232
International Strategy 234
Global Strategy 235
Multidomestic Strategy 236
Transnational Strategy 238
Entry Modes of International Expansion 239
Exporting 240
Licensing and Franchising 242
Strategic Alliances and Joint Ventures 242
Wholly Owned Subsidiaries 244
Summary 246
2
Using Networks to Share Information
and Develop Products and Services 133
Codifying Knowledge for Competitive Advantage 134
Retaining Knowledge When Employees Leave 135
The Central Role of Leveraging Human
Capital in Strategy Formulation 137
Leveraging Human Capital and
Business-Level Strategy 137
Leveraging Human Capital and
Corporate-Level Strategy 137
Leveraging Human Capital and
International-Level Strategy 139
Leveraging Human Capital and
Internet Strategies 139
Summary 139
Strategic Formulation
Chapter 5
Business-Level Strategy: Creating and
Sustaining Competitive Advantages 146
Types of Competitive Advantage
and Sustainability 150
Overall Cost Leadership 151
Differentiation 157
Focus 162
Combination Strategies: Integrating Overall
Low Cost and Differentiation 164
Industry Life Cycle Stages:
Strategic Implications 169
Strategies in the Introduction Stage 170
Strategies in the Growth Stage 171
Strategies in the Maturity Stage 172
Strategies in the Decline Stage 173
Relating Generic Strategies to Stages of the
Industry Life Cycle: The Personal
Computer Industry 175
Turnaround Strategies 175
Summary 177
Chapter 6
Corporate-Level Strategy:
Creating Value through Diversi?cation 182
Making Diversi?cation Work: An Overview 186
Related Diversi?cation: Economies of Scope
and Revenue Enhancement 187
Leveraging Core Competencies 188
Sharing Activities 189
des33917_fm 11/19/04 10:56 AM Page vii
3
Linking Strategic Control to Business-Level
and Corporate-Level Strategies 304
Business-Level Strategy and Strategic Control 305
Corporate-Level Strategy and Strategic Control 306
The Role of Corporate Governance 307
The Modern Corporation: The Separation
of Owners (Shareholders) and Management 309
Governance Mechanisms: Aligning the Interests
of Owners and Managers 311
External Governance Control Mechanisms 317
Summary 321
Chapter 10
Creating Effective
Organizational Designs 328
Traditional Forms of Organizational
Structure 330
Patterns of Growth of Large Corporations 331
Simple Structure 332
Functional Structure 333
Divisional Structure 334
Matrix Structure 338
International Operations: Implications
for Organizational Structure 339
How an Organization’s Structure Can In?uence
Strategy Formulation 341
Boundaryless Organizational Designs 341
The Barrier-Free Organization 343
The Modular Organization 347
The Virtual Organization 348
Boundaryless Organizations: Making Them Work 352
Summary 355
Chapter 11
Strategic Leadership: Creating
a Learning Organization and an
Ethical Organization 360
Leadership: Three Interdependent Activities 363
Setting a Direction 365
Designing the Organization 365
Nurturing a Culture Dedicated to Excellence
and Ethical Behavior 367
Overcoming Barriers to Change and the
Effective Use of Power 367
Emotional Intelligence: A Key
Leadership Trait 370
Developing a Learning Organization 374
Empowering Employees at All Levels 375
Accumulating and Sharing Internal Knowledge 376
Chapter 8
Digital Business Strategy: Leveraging
Internet and E-Business Capabilities 250
How the Internet Is Affecting the Five
Competitive Forces 257
The Threat of New Entrants 257
The Bargaining Power of Buyers 258
The Bargaining Power of Suppliers 259
The Threat of Substitutes 260
The Intensity of Competitive Rivalry 262
How the Internet Adds Value 263
Search Activities 263
Evaluation Activities 265
Problem-Solving Activities 265
Transaction Activities 266
Other Sources of Competitive Advantage 267
Business Models 268
How the Internet Is Affecting the
Competitive Strategies 270
Overall Cost Leadership 272
Differentiation 273
Focus 275
Are Internet-Based Advantages Sustainable? 278
Are Combination Strategies the Key
to E-Business Success? 278
Leveraging Internet Capabilities 280
Summary 281
Strategic Implementation
Chapter 9
Strategic Control and Corporate
Governance 288
Ensuring Informational Control: Responding
Effectively to Environmental Change 291
A Traditional Approach to Strategic Control 291
A Contemporary Approach to Strategic Control 292
Attaining Behavioral Control: Balancing
Culture, Rewards, and Boundaries 295
Building a Strong and Effective Culture 296
Motivating with Rewards and Incentives 297
Setting Boundaries and Constraints 299
Behavioral Control in Organizations:
Situational Factors 302
Evolving from Boundaries to Rewards
and Culture 303
des33917_fm 11/19/04 10:56 AM Page viii
Gathering and Integrating External Information 378
Challenging the Status Quo and Enabling
Creativity 380
Creating an Ethical Organization 381
Individual Ethics versus Organizational Ethics 381
Integrity-Based versus Compliance-Based
Approaches to Organizational Ethics 383
Role Models 387
Corporate Credos and Codes of Conduct 387
Reward and Evaluation Systems 388
Summary 390
Chapter 12
Managing Innovation and Fostering
Corporate Entrepreneurship 394
Managing Innovation 397
Types of Innovation 398
Challenges of Innovation 400
De?ning the Scope of Innovation 401
Managing the Pace of Innovation 402
Collaborating with Innovation Partners 402
Corporate Entrepreneurship 404
Focused Approaches to Corporate
Entrepreneurship 405
Dispersed Approaches to Corporate
Entrepreneurship 408
Measuring the Success of Corporate
Entrepreneurship Activities 410
Entrepreneurial Orientation 414
Autonomy 414
Innovativeness 416
Proactiveness 418
Competitive Aggressiveness 419
Risk Taking 421
Summary 423
Chapter 13
Recognizing Opportunities
and Creating New Ventures 428
New Ventures and Small Businesses 431
Categories of Entrepreneurial Ventures 431
Opportunity Recognition: Identifying
and Developing Market Opportunities 435
The Opportunity Recognition Process 438
Characteristics of Good Opportunities 440
Entrepreneurial Resources 442
New-Venture Financing 443
Other Entrepreneurial Resources 447
Entrepreneurial Leadership 450
Vision 450
4
Dedication and Drive 451
Commitment to Excellence 453
Entrepreneurial Strategy 454
Entry Strategies 455
Generic Strategies 459
Combination Strategies 462
Summary 463
Case Analysis
Chapter 14
Analyzing Strategic
Management Cases 470
Why Analyze Strategic Management Cases? 472
How to Conduct a Case Analysis 473
Become Familiar with the Material 475
Identify Problems 477
Conduct Strategic Analyses 477
Propose Alternative Solutions 478
Make Recommendations 480
How to Get the Most from Case Analysis 480
Using Con?ict-Inducing Decision-Making
Techniques in Case Analysis 483
Symptoms of Groupthink and How to Prevent It 485
Using Con?ict to Improve Decision Making 485
Following the Analysis-Decision-Action Cycle
in Case Analysis 487
Summary 491
Appendix to Chapter 14: Sources of Company and Industry
Information 493
Cases
1. Adolph Coors in the Brewing Industry 500
2. American Red Cross to 2002 (A) 514
3. American Red Cross, 2002–2004 (B) 525
4. Atari and InfoGrames Entertainment SA 530
5. Ben & Jerry’s Homemade, Inc.: Passing
the Torch 540
6. The Best-Laid Incentive Plans 555
7. Carly Fiorina: The Reinvention
of Hewlett-Packard 559
des33917_fm 11/19/04 10:56 AM Page ix
29. Panera Bread Company 783
30. Pixar Animation Studios 793
31. Procter & Gamble 799
32. Robin Hood 805
33. Samsung Electronics 806
34. Schoolhouse Lane Estates 811
35. Segway: A New Dimension
in Human Transportation 825
36. The Skeleton in the Corporate Closet 834
37. Southwest Airlines: How Much Can
“LUV” Do? 837
38. Starbucks Corporation: Competing
in a Global Market 846
39. Toys “R” Us Moving into 2004 866
40. Trouble in Paradise 872
41. Wal-Mart’s Strategy for the 21st Century:
Sustaining Dominance 876
42. World Wrestling Entertainment 895
43. Yahoo! 901
44. Yum! Brands, Pizza Hut, and KFC 907
Indexes
Company 919
Name 926
Subject 936
8. Challenges Brewing
at Breckenridge Brewery 576
9. Chiquita’s Global Turnaround 589
10. Crown Cork and Seal in 1989 597
11. Dippin’ Dots Ice Cream 615
12. eBay: King of the Online Auction Industry 621
13. Edward Marshall Boehm, Inc. 640
14. Ford Motor Company in 2004: Entering
a Second Century of Existence 641
15. FreshDirect 650
16. General Motors 660
17. Go Global—or No? 666
18. Green Mountain Coffee Roasters 670
19. Growing for Broke 679
20. Heineken 683
21. Jay’s Foods, LLC 689
22. JetBlue Airways 700
23. Johnson & Johnson 710
24. The Lincoln Electric Company, 1989 716
25. McDonald’s 730
26. Microsoft’s Battle for the Living Room:
The Trojan Horse—The Xbox 736
27. Nokia’s Strategic Intent for the
21st Century 751
28. Outback Steakhouse Goes International 764
des33917_fm 11/19/04 10:56 AM Page x
doc_675677078.pdf