Strategic Management, 4ed: Concepts and Cases (An Indian Adaptation)

Description

Strategic Management fourth edition delivers an insightful, clear, concise introduction to strategy management concepts and links these concepts to the skills and knowledge students need to be successful in the professional world. Written in an accessible Harvard Business Review style with lots of practical examples and strategy tools, the book engages students with an easy-to-understand learning experience to strategic management concepts. This Indian Adaptation sparks ideas, fuels creative thinking and discussion, while engaging students via contemporary examples, outstanding author-produced cases, and much more.

About the Author

effrey H. Dyer is the Horace Beesley Professor of Strategy at the Marriott School, Brigham Young University, where he serves as Chair of the Department of Organizational Leadership and Strategy. Before joining BYU, Dr. Dyer was a professor at the University of Pennsylvania’s Wharton School, where he maintains an adjunct professor position and continues to teach Executive MBAs. Dr. Dyer has considerable consulting experience, having spent 5 years working as a strategy consultant and manager at Bain & Company, where he consulted with such clients as Baxter International, Kraft.

Paul C. Godfrey currently serves as the William and Roceil Low Professor of Business Strategy in the Marriott School of Management at Brigham Young niversity. He was honored in 2013 with the Marriott School’s Teaching Award, and in 2017 with the school’s research award. His research has appeared in the Academy of Management Review, the Strategic Management Journal, the Journal of Business Ethics, and the Journal of Management Inquiry. He has recently published a book on eliminating poverty with Stanford University Press

Robert J. Jensen is an associate professor of Strategy and International Business and is a Whitman Faculty and Peery Research Fellow at the Marriott School of Management, Brigham Young University. He has published in many of the top management journals including Strategic Management Journal, Organization Science, Management Science, and the Journal of International Business Studies. His professional awards include the McKinsey & Company/SMS Best Conference Paper prize, honorable mention, a finalist for the Blackwell Best Dissertation Prize from the Academy of Management, as well as the William H. Newman Best Paper from a Dissertation award, and runner up for the Booz Allen Hamilton/SMS Ph.D.

fellowship.

David J. Bryce is Associate Professor of Organizational Leadership and Strategy at the Marriott School of Management and has been an adjunct Associate Professor of Management at the Wharton School where he has taught strategy in the MBA program for executives. He conducts research in the area of corporate strategy and has published in top academic journals such as Management Science and Organization Science. For more than 20 years, he has served as consultant on important strategic challenges to executives of start-ups, mid-market companies, and major corporations, including Eli Lilly, Prudential, Procter & Gamble, Microsoft, Johnson & Johnson, and the LG Group.

Safal Batra is a professor in the Department of Strategic Management and Entrepreneurship at IIM Kashipur since March 2015. He completed his master’s

degree at IIM Calcutta and doctorate from IIM Ahmedabad. His dissertation, which explored innovation in small businesses, was awarded the IFCI Best Thesis Award at IIM Ahmedabad. His current research interests include entrepreneurial personality and cognition, small business performance, and the determinants of entrepreneurial success. His research work has been published in some of the top entrepreneurship and management journals, including International Small Business Journal.

Table of Contents

Book Review

Preface to the Adapted Edition

Preface

Acknowledgements

About The Authors

About The Adapting Author

1 What Is Business Strategy?

What Is Business Strategy?
Competitive Advantage
The Strategic Management Process
What Information and Analysis Guides Strategy Formulation?
Vision, Mission, Goals, and Values
External Analysis
Internal Analysis
How Are Strategies Formulated?
Strategy Vehicles for Achieving Strategic Objectives
Strategy Implementation
Who Is Responsible for Business Strategy?
Who Benefits from a Good Business Strategy?

2 Analysis of the External Environment: Opportunities and Threats

Determining the Right Landscape: Defining a Firm’s Industry
Five Forces That Shape Average Profitability Within Industries
Rivalry: Competition Among Established Companies
Buyer Power: Bargaining Power and Price Sensitivity Supplier Bargaining Power
Threat of New Entrants
Threat of Substitute Products
Overall Industry Attractiveness
Where Should We Compete? New Thinking About the Five
Forces and Industry Attractiveness
How the General Environment Shapes Firm and Industry Profitability
Complementary Products or Services
Technological Change
General Economic Conditions
Demographic Forces
Ecological/Natural Environment
Global Forces
Political, Legal, and Regulatory Forces
Social/Cultural Forces

3 Internal Analysis: Strengths, Weaknesses, and Competitive Advantage

The Value Chain
The Resource-Based View
Resources
Capabilities
Priorities
Creating a Sustainable Competitive Advantage: The VRIO Model of Sustainability
Value
Rarity
Inimitability
Organized to Exploit
Assessing Competitive Advantage with VRIO
The Competitive Advantage Pyramid: A Tool for Assessing Competitive Advantage
Gathering Data for the Competitive Advantage Pyramid Analysis
Using the Competitive Advantage Pyramid

4 Cost Advantage

Economies of Scale and Scope
Ability to Spread Fixed Costs of Production
Ability to Spread Nonproduction Costs
Specialization of Machines and Equipment
Specialization of Tasks and People
Evaluating Economies of Scale: The Scale Curve
Economies of Scope
Learning and Experience
The Learning Curve
The Experience Curve
Experience Curves and Market Share
How Strategists Use the Scale and Experience Curves to Make Decisions
Proprietary Knowledge
Lower Input Costs
Bargaining Power over Suppliers
Cooperation with Suppliers
Location Advantages
Preferred Access to Inputs
Different Business Model or Value Chain
Eliminating Steps in the Value Chain
Performing Completely New Activities
Tata Nano: A Cautionary Tale

5 Differentiation Advantage

What Is Product Differentiation?
Sources of Product Differentiation
Different Product/Service Features
Quality or Reliability
Convenience
Brand Image
How to Find Sources of Product Differentiation
Customer Segmentation
Mapping the Consumption Chain
Building the Resources and Capabilities to Differentiate
New Thinking: Achieving Low Cost and Differentiation
Assessing Differentiation Performance
Strategy in Your Career: What Is Your Unique Value?

6 Corporate Strategy

Corporate Versus Business Unit Strategy
Creating Value Through Diversification
Levels of Diversification
Value Creation: Exploit and Expand Resources and Capabilities
The Eight Ss
Destroying Value Through Diversification
Methods of Diversification
The Acquisition and Integration Process
Making the Acquisition
Integrating the Target

7 Vertical Integration and Outsourcing

What Is Vertical Integration?
The Value Chain
Forward Integration and Backward Integration
Three Key Reasons to Vertically Integrate
Capabilities
Coordination
Control
Dangers of Vertical Integration
Loss of Flexibility
Loss of Focus
Advantages of Outsourcing
Dangers of Outsourcing

8 Strategic Alliances

What Is a Strategic Alliance?
Choosing an Alliance
Types of Alliances
Nonequity or Contractual Alliance
Equity Alliance
Joint Venture
Vertical and Horizontal Alliances
Ways to Create Value in Alliances
Combine Unique Resources
Pool Similar Resources
Create New Alliance-Specific Resources
Lower Transaction Costs
The Risks of Alliances
Hold-Up
Misrepresentation
Building Trust to Lower the Risks of Alliances
Building an Alliance Management Capability
Improving Knowledge Management
Increasing External Visibility
Providing Internal Coordination
Facilitating Intervention and Accountability

9 International Strategy

The Globalization of Business
Why Firms Expand Internationally
Growth
Efficiency
Managing Risk
Knowledge
Responding to Customers or Competitors
Where Firms Should Expand
Cultural Distance
Administrative Distance
Geographic Distance
Economic Distance
How Firms Compete Internationally
Multidomestic Strategy—Adapt to Fit the Local Market
Global Strategy—Aggregate and Standardize to Gain Economies of Scale
Arbitrage Strategy
Combining International Strategies
How a Firm Gets into a Country: Modes of Entry
Exporting
Licensing and Franchising
Alliances and Joint Ventures
Wholly Owned Subsidiaries
Choosing a Mode of Entry

10 Innovative Strategies That Change the Nature of Competition

What Is an Innovative Strategy?
Incremental Versus Radical Innovation
Categories of Innovative Strategies
Reconfiguring the Value Chain to Eliminate Activities (Disintermediation)
Low-End Disruptive Innovations
High-End/Top-Down Disruptive Innovations
Reconfiguring the Value Chain to Allow for Mass Customization
Blue Ocean Strategy—Creating New Markets by Targeting Non consumers
Create a Platform to Facilitate Transactions
Free Business/Revenue Models
Hyper competition: The Accelerating Pace of Innovation
Innovation and the Product/Business/Industry Life Cycle (S-Curve)
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage

11 Competitive Strategy and Sustainability

Understanding the Competitive Landscape
Strategic Groups and Mobility Barriers
Strategy Canvas
Evaluating the Competition
What Drives the Competitor?
What Is the Competitor Doing or Capable of Doing?
How Will a Competitor Respond to Specific Moves?
Using Game Theory to Evaluate Specific Moves
Principles of Competitive Strategy
Know Your Strengths and Weaknesses
Bring Strength Against Weakness
Protect and Neutralize Vulnerabilities
Develop Strategies That Cannot Be Easily Copied
Competitive Actions for Different Market Environments
Competition Under Monopoly
Competition Under Oligopoly
“Perfect” Competition
Dynamic Environments
Sustaining Competitive Advantage

12 Implementing Strategy

Alignment: The 7S Model
Strategy
Structure
Systems
Staffing
Skills
Style
Shared Values
Strategic Change
The Three Phases of Change
The Eight Steps to Successful Change
Measurement
Line of Sight

13 Corporate Governance and Ethics

The Purposes of the Corporation
The Shareholder Primacy Model
The Stakeholder Model
Governance: Boards and Incentives
The Board of Directors
Compensation and Incentives
Corporate Ethics
Corporate Culture and Ethics
Creating an Ethical Climate

14 Strategy and Society

Strategy and Social-Value Organizations
The Tools of Strategy and the Creation of Social Value
External Analysis and the Value Net
Internal Analysis: Resources and Capabilities
Cost Leadership, Differentiation, and Innovative Strategies
Corporate Strategy and Alliance
Implementation and Governance
Strategy and Social Change
Corporate Social Responsibility (CSR)
CSR and Firm Performance
Social Entrepreneurship
Types of Social Entrepreneurship
Skills of Social Entrepreneurs
Challenges in Social Entrepreneurship

Summary

Key Terms

Review Questions

Application Exercises

Mini Case

References

Appendix A Data Sources for Analysis

Appendix B 20 Valuable Financial Ratios for Strategic Analysis

Glossary

Company Index

Author Index

Subject Index

Case 1 Walmart Stores: Gaining and Sustaining Competitive Advantage

Case 2 Coca-Cola and Pepsi: The Shifting Landscape of the Carbonated Soft Drink Industry

Case 3A ESPN in 2015: Continued Dominance in Sports Television?

Case 3B ESPN and ESPN+ in 2021: Challenges of Growth

Case 4 Southwest Airlines: Flying High with Low Costs

Case 5 Harley-Davidson: Growth Challenges Ahead

Case 6 Ecolab and the Nalco Acquisition: Sustainable Advantage Through Shared Values

Case 7 Nike: Sourcing and Strategy in Athletic Footwear

Case 8 AT&T and Apple: A Strategic Alliance

Case 9 Competing with Free in Video Communications: Zoom vs the Tech Giants—Microsoft Teams, Google Meets, Apple FaceTime, and WhatsApp (Facebook)

Case 10A Tesla Motors: Disrupting the Auto Industry?

Case 10B Tesla and Panasonic’s Strategic Partnership: By Jeff Dyer and Gordon Scott

Case 11A Smartphone Wars in 2013

Case 11B Smartphone Wars in 2021

Case 12 Lincoln Electric: Aligning for Global Growth

Case 13 ICARUS Revisited: The Rise and Fall of Valeant Pharmaceuticals

Case 14 Safe Water Network: Mastering the Model at Dzemeni

Case 15 Facebook at a Crossroads: Russian Interference in the 2016 U.S. Election

Case 16 Uber