Strategic Management with Premium Content Card and Business Week Subscription

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Edition: 10th
Format: Hardcover
Pub. Date: 2005-12-30
Publisher(s): McGraw-Hill/Irwin
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Summary

Contemporary research in strategic management, with an emphasis on conceptual tools and skills created by scholars and practitioners in the field are evident throughout STRATEGIC MANAGEMENT, 10e. Pearce and Robinson have retained high level of academic credibility and market-leading emphasis on strategic practice with this edition. This text continues to have strong support from longtime adopters and growing support in schools with a desire to provide straightforward treatment of strategic management with a practical, systematic approach. The 10th edition will once again include numerous Business Week short cases and a wide assortment of traditional, longer strategic management cases. Pearce and Robinson continue to use a unique pedagogical model they created to provide logic and structure to its treatment of strategic management which in turn makes the material more easily organized by the instructor and learned by the student.

Table of Contents

PART ONE OVERVIEW OF STRATEGIC MANAGEMENT
1(20)
Strategic Management
2(19)
The Nature and Value of Strategic Management
3(7)
Dimensions of Strategic Decisions
4(3)
Formality in Strategic Management
7(2)
Benefits of Strategic Management
9(1)
Risks of Strategic Management
10(1)
The Strategic Management Process
10(6)
Components of the Strategic Management Model
12(2)
Strategic Management as a Process
14(2)
Summary
16(1)
Key Terms
16(1)
Questions for Discussion
17(1)
Discussion Case: Can Anyone Save HP?
17(4)
PART TWO STRATEGY FORMULATION
21(268)
Company Mission
21(28)
What Is a Company Mission?
23(1)
The Need for an Explicit Mission
23(1)
Formulating a Mission
24(11)
Basic Product or Service; Primary Market; Principal Technology
24(2)
Company Goals: Survival; Growth; Profitability
26(1)
Company Philosophy
27(2)
Public Image
29(1)
Company Self-Concept
30(2)
Newest Trends in Mission Components
32(2)
An Exemplary Mission Statement
34(1)
Boards of Directors
35(1)
Agency Theory
36(3)
How Agency Problems Occur
37(1)
Problems That Can Result from Agency
37(2)
Solutions to the Agency Problem
39(1)
Summary
39(1)
Key Terms
39(1)
Questions for Discussion
40(1)
Discussion Case: The Future of The New York Times
40(4)
Appendix BB&T Vision, Mission, and Purpose
44(5)
Corporate Social Responsibility and Business Ethics
49(34)
The Stakeholder Approach to Social Responsibility
50(3)
The Dynamics of Social Responsibility
52(1)
Types of Social Responsibility
53(7)
Corporate Social Responsibility and Profitability
54(6)
Sarbanes-Oxley Act of 2002
60(5)
The New Corporate Governance Structure
63(1)
CSR's Effect on the Mission Statement
64(1)
Social Audit
64(1)
Management Ethics
65(1)
The Nature of Ethics in Business
65(1)
Satisfying Corporate Social Responsibility
65(13)
The Core of the CSR Debate
66(2)
Mutual Advantages of Collaborative Social Initiatives
68(1)
Five Principles of Successful Collaborative Social Initiatives
68(5)
Assembling the Components
73(1)
The Limits of CSR Strategies
73(2)
The Future of CSR
75(2)
Approaches to Questions of Ethics
77(1)
Codes of Business Ethics
78(2)
Major Trends in Codes of Ethics
80(1)
Summary
80(1)
Key Terms
81(1)
Questions for Discussion
81(1)
Discussion Case: Wal-Mart vs. Class Actions
81(2)
The External Environment
83(37)
The Firm's External Environment
84(1)
Remote Environment
84(8)
Economic Factors
84(1)
Social Factors
84(3)
Political Factors
87(1)
Technological Factors
88(1)
Ecological Factors
89(3)
International Environment
92(1)
Industry Environment
92(1)
How Competitive Forces Shape Strategy
93(2)
Contending Forces
95(6)
Threat of Entry
95(1)
Powerful Suppliers
96(3)
Powerful Buyers
99(1)
Substitute Products
100(1)
Jockeying for Position
100(1)
Industry Analysis and Competitive Analysis
101(5)
Industry Boundaries
101(2)
Industry Structure
103(2)
Competitive Analysis
105(1)
Operating Environment
106(4)
Competitive Position
106(1)
Customer Profiles
107(1)
Suppliers
108(1)
Creditors
108(1)
Human Resources: Nature of the Labor Market
108(2)
Emphasis on Environmental Factors
110(4)
Summary
114(1)
Key Terms
114(1)
Questions for Discussion
114(1)
Discussion Case: The Raja of Steel
115(3)
Appendix Sources for Environmental Forecasting
118(2)
The Global Environment
120(30)
Globalization
121(1)
Development of a Global Corporation
121(2)
Why Firms Globalize
123(3)
Strategic Orientations of Global Firms
124(2)
At the Start of Globalization
126(2)
Complexity of the Global Environment
128(1)
Control Problems of the Global Firm
129(2)
Global Strategic Planning
131(6)
Multidomestic Industries and Global Industries
131(3)
The Global Challenge
134(2)
Market Requirements and Product Characteristics
136(1)
International Strategy Options
137(1)
Competitive Strategies for Firms in Foreign Markets
137(5)
Niche Market Exporting
138(1)
Licensing and Contract Manufacturing
139(1)
Franchising
140(1)
Joint Ventures
140(1)
Foreign Branching
141(1)
Wholly Owned Subsidiaries
141(1)
Summary
142(1)
Key Terms
143(1)
Questions for Discussion
143(1)
Discussion Case: Fakes
144(4)
Appendix Components of the Multinational Environment
148(2)
Internal Analysis
150(40)
SWOT Analysis: A Traditional Approach to Internal Analysis
153(5)
Using SWOT Analysis in Strategic Analysis
154(3)
Limitations of SWOT Analysis
157(1)
Value Chain Analysis
158(6)
Conducting a Value Chain Analysis
160(2)
Recognizing the Difficulty in Activity-Based Cost Accounting
162(2)
Resource-Based View of the Firm
164(9)
Three Basic Resources: Tangible Assets, Intangible Assets, and Organizational Capabilities
165(1)
What Makes a Resource Valuable?
165(6)
Using the Resource-Based View in Internal Analysis
171(2)
Internal Analysis: Making Meaningful Comparisons
173(3)
Comparison with Past Performance
173(1)
Benchmarking: Comparison with Competitors
174(1)
Comparison with Success Factors in the Industry
175(1)
Summary
176(1)
Key Terms
177(1)
Questions for Discussion
177(1)
Discussion Case: Apple's Blueprint for Genius
177(3)
Appendix A Key Resources across Functional Areas
180(1)
Appendix B Using Financial Analysis
181(9)
Long-Term Objectives and Strategies
190(42)
Long-Term Objectives
191(4)
Qualities of Long-Term Objectives
192(2)
The Balanced Scorecard
194(1)
Generic Strategies
195(3)
Low-Cost Leadership
195(1)
Differentiation
196(1)
Focus
197(1)
The Value Disciplines
198(4)
Operational Excellence
199(1)
Customer Intimacy
200(1)
Product Leadership
201(1)
Grand Strategies
202(23)
Concentrated Growth
202(4)
Market Development
206(2)
Product Development
208(1)
Innovation
209(2)
Horizontal Integration
211(1)
Vertical Integration
211(1)
Concentric Diversification
212(1)
Conglomerate Diversification
212(3)
Turnaround
215(2)
Divestiture
217(1)
Liquidation
217(1)
Bankruptcy
218(2)
Joint Ventures
220(1)
Strategic Alliances
221(1)
Consortia, Keiretsus, and Chaebols
222(3)
Selection of Long-Term Objectives and Grand Strategy Sets
225(1)
Sequence of Objectives and Strategy Selection
226(1)
Summary
226(1)
Key Terms
227(1)
Questions for Discussion
227(1)
Discussion Case: 3M's Rising Star
227(5)
Business Strategy
232(29)
Evaluating and Choosing Business Strategies: Seeking Sustained Competitive Advantage
233(18)
Evaluating Cost Leadership Opportunities
234(3)
Evaluating Differentiation Opportunities
237(3)
Evaluating Speed as a Competitive Advantage
240(2)
Evaluating Market Focus as a Way to Competitive Advantage
242(3)
Stages of Industry Evolution and Business Strategy Choices
245(5)
Competitive Advantage in Fragmented Industries
250(1)
Competitive Advantage in Global Industries
250(1)
Dominant Product/Service Businesses: Evaluating and Choosing to Diversify to Build Value
251(5)
Grand Strategy Selection Matrix
252(2)
Model of Grand Strategy Clusters
254(2)
Opportunities for Building Value as a Basis for Choosing Diversification or Integration
256(1)
Summary
256(1)
Key Terms
256(1)
Questions for Discussion
257(1)
Discussion Case: DHL's American Adventure
257(4)
Multibusiness Strategy
261(28)
The Portfolio Approach: A Historical Starting Point
263(6)
The BCG Growth-Share Matrix
264(1)
The Industry Attractiveness-Business Strategy Matrix
265(1)
BCG's Strategic Environments Matrix
266(2)
Limitations of Portfolio Approaches
268(1)
The Synergy Approach: Leveraging Capabilities and Core Competencies
269(7)
Capitalize on Core Competencies
269(7)
The Corporate Parent Role: Can It Add Tangible Value?
276(7)
The Parenting Framework
276(3)
The Patching Approach
279(4)
Summary
283(1)
Key Terms
283(1)
Questions for Discussion
284(1)
Discussion Case: Beyond Blue
284(5)
PART THREE STRATEGY IMPLEMENTATION, CONTROL, AND INNOVATION
289(138)
Implementation
291(33)
Short-Term Objectives
293(5)
Qualities of Effective Short-Term Objectives
294(4)
The Value-Added Benefits of Short-Term Objectives and Action Plans
298(1)
Functional Tactics That Implement Business Strategies
298(3)
Differences between Business Strategies and Functional Tactics
300(1)
Outsourcing Functional Activities
301(2)
Empowering Operating Personnel: The Role of Policies
303(3)
Creating Policies That Empower
304(2)
Executive Bonus Compensation Plans
306(8)
Major Plan Types
306(6)
Matching Bonus Plans and Corporate Goals
312(2)
Summary
314(1)
Key Terms
314(1)
Questions for Discussion
315(1)
Discussion Case: Toyota Implements a Low-Cost Strategy
315(3)
Appendix Functional Tactics
318(6)
Organizational Structure
324(34)
Traditional Organization Structures and Their Strategy-Related Pros and Cons
327(7)
Simple Organizational Structure
328(1)
Functional Organizational Structure
328(2)
Divisional Structure
330(2)
Matrix Organizational Structure
332(1)
Product-Team Structure
332(2)
What a Difference a Century Makes
334(4)
Globalization
334(3)
The Internet
337(1)
Speed
337(1)
Initial Efforts to Improve the Effectiveness of Traditional Organizational Structures
338(5)
Redefine the Role of Corporate Headquarters from Control to Support and Coordination
338(1)
Balance the Demands for Control/Differentiation with the Need for Coordination/Integration
339(1)
Restructure to Emphasize and Support Strategically Critical Activities
340(1)
Reengineer Strategic Business Processes
340(1)
Downsize and Self-Manage: Force Decisions to Operating Level
341(2)
Creating Agile, Virtual Organizations
343(9)
Outsourcing---Creating a Modular Organization
343(4)
Strategic Alliances
347(2)
Toward Boundaryless Structures
349(3)
Summary
352(2)
Key Terms
354(1)
Questions for Discussion
355(1)
Discussion Case 1: A Crash Diet for Sara Lee
355(1)
Discussion Case 2: Online Extra: Turning Two Tech Teams into One
356(2)
Leadership and Culture
358(32)
Strategic Leadership: Embracing Change
360(12)
Clarifying Strategic Intent
361(3)
Building an Organization
364(3)
Shaping Organizational Culture
367(1)
Recruiting and Developing Talented Organizational Leadership
368(4)
Organizational Culture
372(11)
The Role of the Organizational Leader in Organizational Culture
372(1)
Build Time in the Organization
373(3)
Emphasize Key Themes or Dominant Values
376(1)
Encourage Dissemination of Stories and Legends about Core Values
376(1)
Institutionalize Practices That Systematically Reinforce Desired Beliefs and Values
377(1)
Adapt Some Very Common Themes in Their Own Unique Ways
377(1)
Manage the Organizational Culture in a Global Organization
377(1)
Manage the Strategy-Culture Relationship
378(5)
Summary
383(1)
Key Terms
384(1)
Questions for Discussion
384(1)
Discussion Case: The Immelt Revolution
384(6)
Control, Innovation, and Entrepreneurship
390(37)
Establishing Strategic Controls
391(9)
Premise Control
393(1)
Strategic Surveillance
393(1)
Special Alert Control
394(1)
Implementation Control
395(3)
The Balanced Scorecard Methodology
398(2)
Innovation and Entrepreneurship
400(21)
Incremental Innovation
403(5)
Breakthrough Innovation
408(1)
Risks Associated with Innovation
409(4)
Entrepreneurship
413(6)
Intrapreneurship
419(2)
Summary
421(1)
Key Terms
422(1)
Questions for Discussion
422(1)
Discussion Case 1: The Nimble Shall Inherit the Earth
422(1)
Discussion Case 2: Building an Idea Factory
423(4)
PART FOUR CASES
427
Guide to Strategic Management Analysis
428
Section A Business Week Cases
1(1)
American Express: Charge!
1(1)
Mara Der Hovanesian
Two Men and a Lot of Trucks
1(1)
Stacy Perman
Bang! Racing Company: A Wild Ride at NASCAR
1(1)
Mark Hyman
Jordan Burke
Best Buy and Circuit City: The Warranty Windfall
1(1)
Robert Berner
Coca-Cola: Gone Flat
1(1)
Dean Faust
Nanette Byrnes
Golf Equipment Industry: Driven To Succeed
1(1)
Mark S. Murphy
Iran: The Mideast's Model Economy
1(1)
Stanley Reed
Babak Pirouz
Juicy Couture: To Live and Thrive in L.A.
1(1)
Christopher Palmeri
Legal Environment of Business: How to Fix the Tort System
1(1)
Mike France
Lehman Brothers: Lehman's New Street Smarts
1(1)
Emily Thornton
Louis Vuitton: The Vuitton Money Machine
1(1)
Carol Matlack
Diane Brady
NASCAR: The Prince of NASCAR
1(1)
Tom Lowry
Nokia: Will Rewiring Nokia Spark Growth?
1(1)
Andy Reinhardt
Moon Ihlwan
Outsourcing Innovation: A Contentious Corporate Strategy
1(1)
Pete Engardio
Bruce Einhorn
Pfizer's Pharmaceutical's Funk
1(1)
Amy Barrett
Siemens Corp.'s New Boss: Can He Deliver?
1(1)
Jack Ewing
Diane Brady
Societal Trend: Far from the Madding Crowd
1(1)
Michelle Colin
Societal Trend: Now, the Geezer Glut
1(1)
Peter Engardio
Carol Matlack
Sony's Sudden Samurai
1(1)
Brian Bremmer
Symantec Corp.: I Can't Wait to Compete . . .
1(1)
Sarah Lacy
Technological Environment of Business: Hydrogen Cars Are Almost Here, But. . .
1(1)
Otis Port
United Technologies: The Unsung CEO
1(1)
Diane Brady
UPS: Big Brown's New Bag
1(1)
Dean Foust
Video Game Industry: Game Wars
1(1)
Ronald Glover
Cliff Edwards
Young & Rubicam: ACT II: Ann Fudge's Two Year Break from Work Has Changed Her Life
1(1)
Diane Brady
Section B Comprehensive Cases
1(1)
JetBlue Airways
1(1)
Brian Shutt
Mary Kay Sullivan
John Gallagher
Kentucky Fried Chicken and the Global Fast-Food Industry---2005
1(1)
Jeffrey A. Krug
High Tech Burrito
1(1)
Armand Gilinsky
Diana Clark
Randall D. Harris
T. K. Clarke
The Pet Care Industry: From PetsMart to Camp Bow Wow
1(1)
Debora J. Gilliard
From KaZaA to Skype
1(1)
N. Rajshekar
V. Kalyani
Nokia and the Global Mobile Phone Industry
1(1)
Shirisha Regani
Anheuser-Busch and Harbin Brewery Group of China
1(1)
Michael H. Moffet
Kannan Ramaswamy
Coca-Cola's Marketing Challenges in Brazil: The Tubainas War
1(1)
Davi Gertner
Rosane Gertner
Dennis Guthery
The National Basketball Association's International Strategy
1(1)
Kyle Moon
John Lawrence
Wal-Mart Stores Inc.: Dominating Global Retailing
1(1)
Kannan Ramaswamy
Target Stores' Differentiation Strategies
1(1)
Suchitra Jampani
Ajith Sankar
Apple Computer 2005: iTunes, iPod and iMac
1(1)
Katie Sticklor
Wendy Silva
Alan N. Hoffman
Best Buy: Staying at the Top
1(1)
Henri Bourgeois
Benetech Bookshare.org: A Technology Social Venture
1(1)
Geoffrey Desa
Suresh Kotha
Douglas E. Olesen
Making It Big
1(1)
Joan Winn
The Apollo Group, Inc. (University of Phoenix)
1(1)
Richard B. Robinson
XM Radio: The Sky Is the Limit
1(1)
Joseph Jordan
Melissa A. Schilling
Matthew Shaffer
Jason Sullivan
Nancy Wolfe
Richard Robinson
BET: The Edge on Talent
1(1)
Gerry Yemen
Erika James
Martin Davidson
Robin Hood
1(1)
Joseph Lampel
Southwest Airlines Act II---An Airline in Trouble?
1(1)
Shirisha Regani
IKEA's Innovative Human Resource Management Practices and Work Culture
1(1)
Shirisha Regani
The Procter & Gamble (P&G)--Gillette Merger
1(1)
Ruchi Chaturvedi N.
Turnaround of JCPenney
1(1)
Ajith Sankar
DaimlerChrysler AG and the Global Automotive Industry
1(1)
Robert J. Mockler
Marc E. Gartenfeld
Besnik Fetoski
General Motors---2005
1(1)
David Welch
Dan Beucke
Emily Thornton
Richard Robinson
Name Index 1(10)
Subject Index 11(14)
Case Index 25

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