Managers question the company's strategic direction and how it is managed by its founder and CEO. How can the company ensure future growth and success as its primary markets in the United States and Europe mature.
FEATURES NEW TO THIS 15TH EDITION
All the chapters have been updated and we have added a new chapter on Global Strategy. One of the new cases deals with privacy (Google and the right to be forgotten).
FEATURES
Strategy implementation is where "the rubber hits the road." Environmental scanning and strategy formulation are crucial to strategic management, but are only the beginning of the process. Many of the cases deal with well-known publicly held corporations - ideal subjects for further research by students who want to "update" the cases.
SUPPLEMENTS
Both the text and the cases have been class-tested in strategy courses and revised based on feedback from students and instructors. The test item file contains over 1200 questions, including multiple choice, true/false and essay questions.
VIDEO LIBRARY
He is past president of the North American Case Research Association, the Society for Case Research, and the Iowa State University Press Board of Directors. He has served on the editorial review boards of SAM Advanced Management Journal, the Journal of Business Strategies, and the Journal of Business Research.
Improve Your Grade!
Toyota Motors Co
79-91, May and June, 1990; “Top 100 Most Innovative Companies Shift Focus from Quantity to Quality,” Clarivate Analytics, http://www.prnewswire.com, accessed January 2017; “The Most Innovative Companies 2016: Getting Past “Not Invented Here,” The Boston Consulting Group, https://media-publications.bcg.com, accessed January 2017; Guidelines at Toyota, http://www.toyota-global.com/company/. Today, we recognize both a science and an art for the application of strategic management techniques.
PHASES OF STRATEGIC MANAGEMENT
Strategic management is a set of management decisions and actions that help determine the long-term performance of an organization. Originally called business policy, strategic management has advanced significantly with the concentrated efforts of researchers and practitioners.
BENEFITS OF STRATEGIC MANAGEMENT
The sophisticated annual five-year strategic plan is replaced with strategic thinking at all levels of the organization throughout the year. For example, the interconnected nature of the global financial community meant that the mortgage problems in the U.S.
IMPACT OF INNOVATION
The company has a relatively obvious long-term responsibility to the shareholders of the organization. Many agree with Richard D'Aveni, who says in his book Hypercompetition that any sustainable competitive advantage lies not in doggedly following a centrally managed five-year plan, but in stringing together a series of strategic short-term thrusts (such as Apple does by cutting into the sales of its own offerings with periodic introductions of new products).31 This means that corporations must develop strategic flexibility—the ability to shift from one dominant strategy to another.32.
ENVIRONMENTAL SCANNING
A well-crafted mission statement describes what the company is now and what it wants to become - management's strategic vision for the company's future. A program or tactic is a statement of the activities or steps needed to support a strategy.
EVALUATION AND CONTROL
This is done so that the new program has the potential to contribute significantly to the company's earnings performance and thus build shareholder value. The implementation of the strategy is discussed in more detail in Chapters 9 and 10.). of measures aimed at returning the company to its leading position.
FEEDBACK/LEARNING PROCESS
Threat of a takeover: Another company can initiate a takeover by buying a company's common stock. Strategic Pivot: Coined by Andy Grove, former CEO of Intel Corporation, a strategic pivot is what happens to a company when a major change occurs due to the introduction of new technologies, a different regulatory environment, a change in customers' values, or a change in what customers prefer.55.
WHAT MAKES A DECISION STRATEGIC?
This should be one of the best reads for anyone really interested in this topic.60. Logical Incrementalism: The fourth mode of decision-making can be seen as a synthesis of planning, adaptation and, to a lesser extent, the entrepreneurial mode.
STRATEGIC DECISION-MAKING PROCESS: AID TO BETTER DECISIONS
- Current Situation
- Current Performance
- Strategic Posture
- Corporate Governance
- Board of Directors
- Top Management
- External Environment: Opportunities and Threats (SWOT)
- Natural Physical Environment: Sustainability Issues
- Societal Environment
- Task Environment
- Internal Environment
- Corporate Structure
- Corporate Culture
- Corporate Resources
- Analysis of Strategic Factors (SWOT)
- Situational Analysis
- Review of Mission and Objectives
- Strategic Alternatives
- Strategic Alternatives
- Recommended Strategy
- Implementation
- What Kinds of Programs or Tactics Should Be Developed to Implement the Recommended Strategy?
- Are the Programs/Tactics Financially Feasible? Can Pro Forma Budgets Be Developed and Agreed On? Are Priorities and
- Will New Standard Operating Procedures Need to Be Developed?
- Evaluation and Control
- Is the Current Information System Capable of Providing Sufficient Feedback on Implementation Activities and
- Are Adequate Control Measures in Place to Ensure Conformance with the Recommended Strategic Plan?
Are they consistent with the company's mission, objectives, strategies and policies, and with the internal and external environment. Are they consistent with the company's mission, objectives, strategies and policies, and with the internal and external environment. Are they consistent with the company's mission, objectives, strategies and policies and with the internal and external environment.
Disarray with the HP Board of Directors
After a contentious annual meeting in 2013, the Chairman of the Board resigned and two other board members resigned. This means that the corporation is essentially run by a board of directors that oversees senior management, with shareholder consent. Increasingly, shareholders, activist investors and various interest groups have seriously questioned the role of the board of directors in corporations.
RESPONSIBILITIES OF THE BOARD
As a board becomes less involved in the affairs of the company, it moves further to the left on the continuum (see Figure 2-1). To the extent that they still control most of the stock, however, the founders dominate the board. Outside directors (sometimes called non-management directors) may be directors of other companies but are not employees of the board of directors.
NOMINATION AND ELECTION OF BOARD MEMBERS
Describe the impact of the Sarbanes–Oxley Act on corporate governance in the United States. Without being replaced, she was informed by phone call from the president of the board that she was fired. Although Mayer struggled to change the company's fortunes, at least there was something consistent about management.
IMPROVING GOVERNANCE
EVALUATING GOVERNANCE
AVOIDING GOVERNANCE IMPROVEMENTS
Shareholders demand that directors and top managers own more than token amounts of stock in the company. Instead of only being able to vote for or against directors nominated by the board's nominating committee, shareholders may ultimately be allowed to nominate board members. The top management function is typically performed by the company's CEO, in coordination with the chief operating officer (COO) or president, executive vice president, and vice presidents of divisions and functional areas.87 Even though strategic management involves everyone in the organization organization holds the board of directors and top management primarily responsible for the strategy and the implementation of that strategy in the company.88.
RESPONSIBILITIES OF TOP MANAGEMENT
The CEO communicates high-performance standards and also shows confidence in the followers’ abilities to meet these standards: The leader empowers followers by
Finkelstein, "The Strategic Value of CEO External Directorate Networks: Implications for CEO Compensation," Strategic Management Journal (September 2001), pp. Korn/Ferry International, 2004), p. Judge, "Boundary Conditions of the Galatea Effect: A Field Experiment and Constructive Replication," Academy of Management Journal (August 2004), pp.
Purbani Group—The CSR Pioneer in Bangladesh
What are the company's responsibilities and how many of them must be fulfilled. Milton Friedman and Archie Carroll offer two contrasting views of corporate responsibility to society. Friedman's claim that the primary goal of business is profit maximization is only one side of the ongoing debate about corporate social responsibility (CSR).
CORPORATE STAKEHOLDERS
Friedman, ‘The Social Responsibility of Business Is to Verhoog Its Profits’, The New York Times Magazine (september pp. Godfrey, ‘The Relationship Between Corporate Philanthropy and Shareholder Wealth: A Risk Management Perspective’, Academy of Management Review (oktober 2005), pp. Kant, ‘The Foundations of the Metaphysic of Morals’, in Ethical Theory: Classical and Contemporary Readings, 2e ed., door L.
Kodak—What Happened to a Great Company?
Changes in the technological part of the societal environment can also have a major impact on various industries. Trends in the economic part of the societal environment can have an obvious impact on business activity. Trends in the ecological part of the environment have accelerated at a pace that is difficult to keep up with.
PORTER’S APPROACH TO INDUSTRY ANALYSIS
A buyer purchases a large portion of the seller's product or service (for example, oil filters purchased by a major automaker). Burrows, 'the First Five Years of Mass Obsession', Bloomberg BusinessWeek (June www.apple.com/iphone/built-in-apps/app-store.html; http://www.statista.com/statistics/ 268251 / number-of-apps-in-the-itunes-app-store-since-2008/. In his book iDisorder: Understanding Our Obsession with Technology and Overcoming Its Hold on Us, psychologist Larry Rosen notes that “the iPhone has changed everything about how we interact with technology, both for good and for bad.”
INTERNATIONAL RISK ASSESSMENT
To the extent that the pressure for coordination is strong and the pressure for local responsiveness is weak for MNCs within a particular industry, that industry will tend to become global. In contrast, when the pressure for local responsiveness is strong and the pressure for coordination is weak for multinational corporations in an industry, that industry will tend to be multidomestic. The dynamic tension between the pressure for coordination and the pressure for local responsiveness is captured in the phrase, "Think globally but act locally."
HYPERCOMPETITION
In Column 2 (Weight), assign a weight to each factor, from 1.0 (Most Important) to 0.0 (Not Important), based on that factor's likely impact on the current and future success of the sector if whole. All weights must sum to 1.0, regardless of the number of strategic factors.). Visit the Society for Competitive Intelligence Professionals website (www.scip.org). Pharmaceutical Industry: Improving Our Understanding of the Competitive Process”, Strategic Management Journal (July 2007), pp.
Understanding Capabilities—Bombardier and the C-Series Aircraft
Examine each product line’s value chain in terms of the various activities involved in producing that product or service: Which activities passed the VRIO test and
Examine the “links” within each product line's value chain: links are the links between how one value activity is performed (for example, marketing) and the cost of performing another activity (for example, quality control). For example, quality inspection of 100% of production by workers themselves instead of the usual 10% by quality control inspectors could increase production costs, but this increase could be offset by savings obtained by reducing the number of repairmen required to correct defects. products and increasing the amount of salespeople's time devoted to selling instead. It could also be used by the entire company as a differentiator against competitors and allow the company to charge more.
Examine the potential synergies among the value chains of different product lines or business units: Each value element, such as advertising or manufacturing, has
Sorensen, “The Strength of Corporate Culture and Reliability of Firm Performance”, Administrative Science Quarterly (mars 2002), f. Journal (Mars 2003), fq.
