Strategic Management Evaluation and Execution v. 1.0 This is the book Strategic Management: Evaluation and Execution (v. 1.0). This book is licensed under a Creative Commons by-nc-sa 3.0 (http://creativecommons.org/licenses/by-nc-sa/ 3.0/) license. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. This book was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz (http://lardbucket.org) in an effort to preserve the availability of this book. Normally, the author and publisher would be credited here. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Additionally, per the publisher's request, their name has been removed in some passages. 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You can browse or download additional books there. ii Table of Contents About the Authors................................................................................................................. 1 Acknowledgments................................................................................................................. 3 Dedications............................................................................................................................. 4 Preface..................................................................................................................................... 5 Chapter 1: Mastering Strategy: Art and Science............................................................ 7 Defining Strategic Management and Strategy.......................................................................................... 10 Intended, Emergent, and Realized Strategies ........................................................................................... 18 The History of Strategic Management....................................................................................................... 25 Understanding the Strategic Management Process................................................................................. 35 Conclusion .................................................................................................................................................... 39 Chapter 2: Leading Strategically ..................................................................................... 40 Vision, Mission, and Goals........................................................................................................................... 43 Assessing Organizational Performance ..................................................................................................... 53 The CEO as Celebrity.................................................................................................................................... 60 Entrepreneurial Orientation....................................................................................................................... 70 Conclusion .................................................................................................................................................... 77 Chapter 3: Evaluating the External Environment........................................................ 78 The Relationship between an Organization and Its Environment..........................................................81 Evaluating the General Environment ........................................................................................................ 85 Evaluating the Industry............................................................................................................................. 102 Mapping Strategic Groups ........................................................................................................................ 118 Conclusion .................................................................................................................................................. 122 Chapter 4: Managing Firm Resources........................................................................... 123 Resource-Based Theory............................................................................................................................. 127 Intellectual Property ................................................................................................................................. 139 Value Chain................................................................................................................................................. 149 Beyond Resource-Based Theory: Other Views on Firm Performance ..................................................156 SWOT Analysis............................................................................................................................................ 160 Conclusion .................................................................................................................................................. 163 iii Chapter 5: Selecting Business-Level Strategies.......................................................... 164 Understanding Business-Level Strategy through “Generic Strategies” ..............................................168 Cost Leadership .......................................................................................................................................... 172 Differentiation............................................................................................................................................ 177 Focused Cost Leadership and Focused Differentiation .......................................................................... 187 Best-Cost Strategy...................................................................................................................................... 199 Stuck in the Middle.................................................................................................................................... 207 Conclusion .................................................................................................................................................. 212 Chapter 6: Supporting the Business-Level Strategy: Competitive and Cooperative Moves................................................................................................................................... 213 Making Competitive Moves ...................................................................................................................... 217 Responding to Competitors’ Moves ......................................................................................................... 228 Making Cooperative Moves....................................................................................................................... 235 Conclusion .................................................................................................................................................. 241 Chapter 7: Competing in International Markets........................................................ 242 Advantages and Disadvantages of Competing in International Markets.............................................246 Drivers of Success and Failure When Competing in International Markets........................................259 Types of International Strategies............................................................................................................. 269 Options for Competing in International Markets................................................................................... 273 Conclusion .................................................................................................................................................. 282 Chapter 8: Selecting Corporate-Level Strategies ....................................................... 283 Concentration Strategies .......................................................................................................................... 288 Vertical Integration Strategies................................................................................................................. 296 Diversification Strategies.......................................................................................................................... 302 Strategies for Getting Smaller .................................................................................................................. 310 Portfolio Planning and Corporate-Level Strategy .................................................................................. 315 Conclusion .................................................................................................................................................. 318 Chapter 9: Executing Strategy through Organizational Design.............................. 319 The Basic Building Blocks of Organizational Structure ......................................................................... 323 Creating an Organizational Structure ..................................................................................................... 331 Creating Organizational Control Systems ..............................................................................................