CONTENTS
1 Introduction to Strategic Management = 1
1.1 A PERSPECTIVE ON ORGANIZATIONS, ENVIRONMENTS, AND STRATEGIES = 5
1.2 STRATEGIC MANAGEMNT TASKS AND RESPONSIBILITIES = 6
Strategic Management Tasks = 6
Strategic Management Responsibilities = 10
1.3 LEVELS OF STRATEGY IN THE FIRM = 12
1.4 THE NEED FOR STRATEGIES THROUGH FIRM EVOLUTION = 13
Advantates of Strategies = 13
The Strategic Evolution of Firms = 13
1.5 EVOLUTION AND ENTREPRENEURSHIP = 16
2 Environmental Analysis = 23
2.1 GENERAL ENVIRONMENTAL ANALYSIS = 25
General Environment of Corporations = 25
Analysis of the General Environment = 28
2.2 TECHNIQUES FOR ENVIRONMENTAL ANALYSIS = 31
2.3 ENVIRONMENTAL SCANNING AND INFORMATION SYSTEMS = 35
2.4 ANALYSIS OF ORGANIZATIONAL STAKE - HOLDERS = 36
2.5 ORGANIZATION - ENVIRONMENT CONTACT POINTS = 37
3 Industry Structure Analysis = 43
3.1 INDUSTRY COMPETITION = 45
3.2 STRUCTURAL FORCES THAT SHAPE INDUSTRY CONPETITION = 47
Threats to Entry = 48
Rivalry among Competitors = 51
Bargaining Power of Buyers = 55
Barbaining Power of Suppliers = 55
Threats from Substiture Products = 56
3.3 CONTEXT OF INDUSTRY COMPETITION = 57
Industry Regulations = 57
Natural Environment = 59
The Role of Competition = 59
3.4 STRATEGIC GROUP ANALYSIS = 62
3.5 STRATEGIC OPPORTUNITIES AND THREATS = 66
4 Setting Corporate Purpose and Direction : Missions, Objectives, Goals, and Targets = 70
4.1 WHOSE PURPOSES DOES THE CORPORATION SERVE? = 72
4.2 CORPORATE MISSIONS = 73
Developing Corporate Missions = 74
4.3 CORPORATE OBJECTIVES = 75
Developing Corporate Objectivies = 76
4.4 BUSINESS GOALS AND TARGETS = 77
4.5 PROCESS ISSUES = 78
Realism in Goal Setting = 78
Participation : Top - Down and Bottom - Up Processes = 79
Stakeholder Participation = 80
5 Strategy Formulation = 83
5.1 INTERNAL RESOURCE ANALYSIS = 86
Corporate Level Analysis = 87
Business Unit Analysis = 88
Strengths, Weaknesses, and Competitive Advantage = 89
5.2 TYPES CORPORATES STRATEGIES = 91
Diversification Strategies = 92
Four Patterns of Strategy = 93
5.3 TECHNIQUES FOR CHOOSING CORPORATE STRATEGIES = 95
BCG's Business Portfolio Matrix = 95
GE's Multifactor Portfolio Matrix = 97
Strategic Thrust = 98
5.4 TYPES OF BUSINESS UNIT STRATEGIES = 101
5.5 TECHNIQUES FOR CHOOSING BUSINESS UNIT STRATEGIES = 103
Product Life Cycle = 104
Experience Effect = 105
Market Share and Profitability Relationship = 107
5.6 TYPES OF FUNCTIONAL AREA POLICIES = 107
5.7 CHOOSING FUNCTIONAL AREA POLICIES = 109
5.8 ECOLOGICAL AND SOCIAL STRATEGIES = 110
Ecological Strategies = 110
Social Strategies = 112
6 Ethical, Social, and Behavioral Issues in Strategy Making = 117
6.1 ETHICAL ISSUES IN STRATEGY FORMULATION = 118
The Realm of Ethics = 118
The Conflicts of Ethics = 120
6.2 CORPORATE SOCIAL RESPONSIBILITY AND STRATEGY FORMULATION = 121
Areas of Social Responsibility = 123
Procedurers for Dealing with Social Responsibilities = 123
6.3 STRATEGY FORMULATION PROCESSES AND BEHAVIORS = 125
Authocratic Decision Process = 128
Bureaucratic Decision Process = 129
Adaptive Planning Process = 130
Political Decision Process = 130
7 Strategy Implementation = 134
7.1 SCOPE AND SCALE OF STRATEGIC CHANGE = 136
7.2 STRATEGY IMPLEMENTATION MODEL AND VARIABLES = 137
7.3 RESOURCE ALLOCATION FOR STRATEGY IMPLEMENTATION = 138
7.4 ROLE OF STRUCTURE AND SYSTEMSS IN STRATEGY IMPLEMENTATION = 140
Organizational Structures = 140
Organizational and Administrative Systems = 143
Matching Strategies with Structures and Systems = 143
7.5 SKILLS AND STAFF FOR STRATEGY IMPLEMENTATION = 144
Acquiring Skills = 144
Matching Strategies with Skills and Staft = 145
7.6 ROLE OF CULTURE IN STRATEGY IMPLEMENTATION = 146
7.7 CORPORATE CULTURES = 147
Manifestions of Cultures = 147
Chaning Cultures = 149
7.8 ROLE OF PERFORMANCE EVALUATION AND REWARD SYSTEMS = 151
Strategy - sensitive Monetary Reward Systems = 152
Nonmonetary Rewards = 155
8 Strategy Evalustion, Monitoring, and Control = 160
8.1 CRITERIA FOR EVALUATING STRATEGIES = 162
Internal Validation = 162
External Validation = 164
8.2 STRATEGY REVIEW PROCESS = 165
8.3 STRATEGY MONITORING = 167
The Monitoring Function = 167
Critical Variables for Strategy Monitoring = 167
8.4 STRATEGIC CONTROL = 171
Types of Control = 171
Strategic Control Systems = 172
Problems of Control = 173
9 Global Strategic Management = 176
9.1 GLOBAL COMPETITIVE ADVANTAGE = 180
Four Attributes of Competitive Advantage = 180
Global Strategic Issues = 182
9.2 GLOBAL ENTRY STRATEGIES AND OWNERSHIP POLICIES = 182
Mode of Entry = 183
Forms of Ownership = 184
9.3 GLOBAL PRODUCTION SYSTEMS = 185
9.4 GLOBAL ADMINISTRATION AND CONTROL = 186
9.5 GLOBAL FINACIAL STRATEGIES = 188
10 Strategic Management of Corporate Crises = 192
10.1 CHARACTERISTICS OF CORPORATE CRISES = 195
10.2 A TYPOLOGY OF CORPORATE CRISES = 197
Industrial Crises = 198
10.3 STRATEGIC MANAGEMENT OF CORPORATE CRISES = 199
Corporate Strategies = 201
Business Unit Strategies = 204
10.4 THE TASKS OF CRISIS MANAGEMENT = 206
Structuring the Crisis = 206
Rescue and Emergency Management = 207
Stakeholder Communications = 208
Conflict Resolution = 210
Business Recovery and Learning = 210
11 Strategic Management of Mergers and Acquisitions = 214
11.1 STRATEGIC CONSIDERATIONS IN MERGERS AND ACQUISITION = 216
The Downside of Mergers and Acquisitions = 217
Strategic Considerations = 217
11.2 EVALUATING CANDIDATES FOR MERGERS AND ACQUISITIONS = 220
11.3 MANAGING THE ACQUISITION DECISION PROCESS = 222
11.4 POSTMERGER INTEGRATION OF ACQUIRED BUSINESSES = 224
External Integration = 224
Internal Integration = 225
Degree of Integration = 225
11.5 PROCEDURAL INTEGRATION = 226
11.6 PHYSICAL INTEGRATION = 227
11.7 MANAGERIAL AND SOCIOCULTURAL INTEGRATION = 229
11.8 STRATEGIES FOR INTEGRATION = 232
References = 236
CASES = 241
1. Acme Leasing Company / Philip H. Phan ; John E. Butler = 243
2. Airline Industry - Domestic / Paul Shrivastava = 257
3. Airline Industry - International / Briance Mascarehas = 268
4. American Airlines / Briance Mascarenhas = 282
5. Baker Medical Center, A, B, and C / John Chilingerian = 290
6. Beverly Enterprises / Per V. Jenster = 307
7. Boeing Company and de Havilland Aircraft of Canada, Ltd. / Per V. Jenster = 314
8. Citicorp - British National Life Assurance / John M. Gwin ; Per V. Jenster ; William K. Carter = 337
9. Comdisco Disaster Recovery Services' International Expansion / Coral R. Snodgrass = 362
10. Copenhagen Handelsbank / Flemming Orinskov ; Susan C. Schneider = 375
11. The Dunlop - Pirelli Union / Sumantra Ghoshal = 393
12. Exxdon Corporation / Paul Shrivastava = 414
13. GENICOM Corporation / Per V. Jenster ; John M. Gwinn ; David B. Croll = 430
14. Greenpeace vs Ford / H. Landis Gabel ; Graham Wrkgley ; Hanna Nolan = 449
15. Humana, Inc. / George S. Vozikis ; Timothy S. Mescon = 464
16. Honeywell Europe, A and B / Susan C. Schneider ; Lenny Hansen ; Avivah Wittenberg - Cox = 480
17. Note on the Hospital Management Industry / Paul Shrivastava = 504
18. Iskra Power Tools / Robert C. Howard ; Willam A. Fischer ; Per V. Jenster = 539
19. Johns - Manville and Riverwood - Schuller / Arthur Sharplin = 560
20. Matsushita Electirc Industrial Co. Ltd. / Sumantra Ghoshal ; Christopher A. Bartlett = 575
21. Mud Island / George S. Wozikis ; Timothy S. Mescon ; Ernst P. Goss = 593
22. The Jonh Hancock Multual Life Insurance Company / Raymond M. Kinnynen ; L. Jake Katz = 610
23. The Southland Corporation (Formulating an Acquisition Strategy) ; Kenneth W. Olm ; George Eddy ; James B. Thomas = 630
24. The Southland Corporation (Impelmenting and Acquisition Strategy) / Kenneth W. Olm ; George Eddy ; James B. Thomas = 638
25. Turner Broadcasting System, Inc. / Neil H. Snyder = 648
26A. The World Tire Industry in 1989 / Briance Mascarenhas ; Jun Y. Park = 664
26B. The Bridgestone - Firestone Story / John J. Nevin = 674
27. Union Carbide Corporation / Paul Shrivastava = 687
28. YKK Zippers / Hideo Ishida = 706
COMPANY POLICY DOCUMENTS = 727
1. American Express Travel Related Serives Company - Building a Twenty - first Century Company : The Next Ten Years = 731
2. Chateau Ste Michelle - Corporate Strategy and Business Plan, 1982-1991 = 741
3. Crain's New York Business - The Vision = 765
4. Donaldson, Lufkin & Jenrette - Code of Business Ethics = 770
5. Ernst & Whinney - And Results : They Go Together = 775
6. ABC Company - Organization and Policy Guide = 777
7. Hewlett - Packard - Statement of Corporate Objectives = 782
8. J. C. Penney Company, Inc. - Statement of Business Ethics = 787
9. J. P. Morgan and Company - Auditing Department Function / Organization = 802
10. National Westminster Bank USA - The NatWest Way : Our Mission and Commitment to Quality = 804
11. NCR - Directional Strategy = 808
12. Sears, Robuck and Company - Our Corporate Vision = 812
13. NYNEX - The NYNEX Vision : How We Plan to Win in the Global Information Market - place = 820
14. Touch Ross - Human Resource Initiatives : A First Look = 825
15. United States Coast Guard - Connandant's Long - range View = 828
READINGS = 839
1. The Changing Shape of the Strategic Problem / H. lgor Ansoff = 841
2. Why Some Factories Are More Productive Than Others / Robert H. Hayes ; Kim B. Clark = 856
3. Generic Strategies : Toward a Comprensive Framework / Henry Mintzberg = 867
4. Structure Is Not Organization / Robert H. Waterman ; Jr. ; Thomas J. Peters ; Julien R. Phillips = 914
5. The Competitive Advantage of Nations / Michael E. Porter = 924
6. Formulating Strategy One Step at a Time / James Brian Quinn = 947
7. Linking Competitive Strategy and Share - holder Value Analysis / Alfred Rappaport = 972
INDEX = 982
