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This new edition of Craftingand Executing Strategy continues to provide a valuable resource forEuropean readers while embracing new and updated core concepts and key theoriesin strategy. Throughout the text you will find a range of examples thatillustrate how strategy works in the real world and encourage the practicalapplication of learning. Complementing the chapters is a section of new casesproviding in-depth analysis of the challenges of strategic management at arange of companies.
This edition includes: • A new 6Ds framework, allowing readers to structure theirapproach to strategic management around the fundamental elements of thestrategy process (Diagnosis, Direction, Decisions and Delivery) and the contextwithin which that process is managed (Dynamism and Disorder). • Opening cases that begin each chapter and feature real-lifebusiness scenarios from companies such as Tinder, Ikea and Victorinox,introducing strategic concepts and theories.
• Illustration Capsules, which have been updated to illustratecontemporary business concerns and demonstrate how companies have reactedstrategically, increasing understanding of successful strategies. Companiesfeatured include Burberry, TOMS, Aldi, Novo Nordisk and more. • Key Debates that stimulate classroom discussion and encouragecritical analysis. • Emerging Themes that present contemporary strategicopportunities and issues such as ripple intelligence and technology and neworganizational structures.
• A Different View encouraging readers to appreciate differingviewpoints on strategic concepts and theories. • End of chapter cases that capture each chapter’s main theoriesthrough engaging cases on companies such as Adidas and Nike, Lego and Uber. • New recommended reading at the end of each chapter which help tofurther knowledge, including classic texts and advanced reading, and authornotes providing context Connect is McGraw-Hill Education’s learning and teachingenvironment that improves student performance and outcomes while promotingengagement and comprehension of content.
New for this edition are interview-style videos, featuring authorAlex Janes in discussion with business leaders, exploring how organizationalstrategy has developed within companies as diverse as Jeep, Levi Strauss, NovoNordisk and a prestigious oil and gas company. The videos are provided infull-length or in segments, with questions aimed at encouraging classroomdiscussion or self-testing. This new edition is available with SmartBook, McGraw-HillEducation’s adaptive, digital tool that tests students’ knowledge of key conceptsand pinpoints the topics on which they need to focus study time.
Annað
- Höfundar: Alex Janes, Ciara Sutton
- Útgáfa:2
- Útgáfudagur: 2017-02-16
- Hægt að prenta út 2 bls.
- Hægt að afrita 2 bls.
- Format:ePub
- ISBN 13: 9781526802576
- Print ISBN: 9780077175153
- ISBN 10: 1526802570
Efnisyfirlit
- Cover
- Halftitle
- Title
- Copyright
- Dedication
- Brief Table of Contents
- Detailed Table of Contents
- Preface
- Connect
- Create
- Acknowledgements
- About the authors
- Guided tour
- Simulations
- Part One Concepts and Techniques for Crafting and Executing Strategy
- Section A: Introduction and Overview
- Chapter 1 What is Strategy and Why is it Important?
- Opening Case Apple: still at the top of the pile
- What do we Mean by Strategy?
- Strategy and the quest for competitive advantage
- Illustration Capsule 1.1 Sabmiller’s strategy in the brewing and beverage sector
- Key Debate 1.1 Is competitive advantage sustainable in the twenty-first century?
- Why an organization’s strategy evolves over time
- An organization’s strategy is partly proactive and partly reactive
- The relationship between an organization’s strategy and its business model
- Illustration Capsule 1.2 Web-based financial services – Zopa.com, a peer to peer lending website, and first direct, a UK-based telephone and internet bank
- Emerging Theme 1.1 Using innovative and multiple business models to achieve advantage
- What makes a good strategy?
- Illustration Capsule 1.3 Testing an organization’s strategy: a more detailed approach
- Why crafting and executing strategy are important tasks
- Good strategy + Good strategy Execution = Good management
- The Road Ahead
- The 6 DS of strategic management
- Diagnosis
- Direction
- Decisions
- Delivery
- Dynamism
- Disorder
- Chapter Summary and Key Points
- Closing Case Adidas and Nike – who will win the race to the top?
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Chapter 1 What is Strategy and Why is it Important?
- Section A: Introduction and Overview
- Chapter 2 Leading the Process of Crafting and Executing Strategy
- Opening Case Goal setting: the failure of Nokia in the wireless world
- What does the strategy-making, strategy-executing process entail?
- Direction: developing a strategic vision, a mission and a set of explicit values
- Developing a strategic vision
- Communicating the strategic vision
- Crafting a mission statement
- Key Debate 2.1 Are mission statements truthful and effective?
- Linking the vision and mission with organizational explicit values
- Illustration Capsule 2.1 Zappos family mission and core values
- Setting objectives
- What kinds of objectives to set
- Illustration Capsule 2.2 Examples of company objectives
- Crafting a strategy
- Strategy-making involves managers at all organizational levels
- A Strategic vision + Objectives + Strategy = A strategic plan
- Delivering the strategy
- Diagnosing and evaluating performance, and initiating corrective adjustments
- Corporate governance
- Illustration Capsule 2.3 Corporate governance failures at Fannie Mae and Freddie Mac
- A Different View Shareholder versus stakeholder approach
- Emerging Theme 2.1 New trends in raising capital and company ownership
- Chapter Summary and Key Points
- Closing Case Embedding A Vision: Scandic Hotels
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Chapter 3 Evaluating an Organization’s External Environment
- Opening Case When mining and metals hit rock bottom
- The key elements of an organization’s external environment: an overview
- The strategically relevant components of an organization’s macro-environment
- Thinking strategically about an organization’s industry and competitive environment
- Question 1: does the industry offer attractive opportunities?
- Question 2: what kinds of competitive forces are industry members facing and how strong are they?
- Identifying competitors, potential rivals and substitutes
- Illustration Capsule 3.1 Spotify and the digital music industry
- Competitive pressures created by the rivalry among competing sellers
- Competitive pressures associated with the threat of new entrants
- Additional Entry Threat Considerations
- Competitive pressures from the sellers of substitute products
- Competitive pressures stemming from supplier bargaining power
- Competitive pressures stemming from buyer bargaining power and price sensitivity
- Competitive pressures stemming from complementary products and services
- Is the collective strength of the competitive forces conducive to good profitability?
- Question 3: what factors are driving industry change and what impacts will they have?
- Analysing industry dynamics
- Identifying an industry’s drivers of change
- Assessing the impact of the factors driving industry change
- Emerging Theme 3.1 Ripple intelligence
- Developing a strategy that takes the changes in industry conditions into account
- Scenario planning
- Illustration Capsule 3.2 Future scenarios for the fashion industry
- Question 4: How are industry rivals positioned – who is strongly positioned and who is not?
- Using strategic group maps to assess the market positions of key competitors
- Illustration Capsule 3.3 Comparative market positions of selected hotel companies: a strategic group map example
- What can be learned from strategic group maps?
- Question 5: what strategic moves are rivals likely to make next?
- A Different View Finding Uncontested Strategic Space: Blue Ocean Strategy
- Question 6: what are the key factors for future competitive success?
- Question 7: does the industry offer good prospects for attractive profits?
- Key Debate 3.1 Is industry-level analysis the best way to view the competitive environment?
- Chapter Summary and Key Points
- Closing Case Uber: nightmare new entrant?
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Opening Case H&M: Is it all about speed in fast fashion?
- Question 1: what are the organization’s competitively important resources and capabilities?
- Identifying the organization’s resources and capabilities
- Emerging Theme 4.1 Knowledge and ‘functional stupidity’ in organizations
- Determining whether an organization’s resources and capabilities are strong enough to produce a sustainable competitive advantage
- Illustration Capsule 4.1 Inditex: mastering the hierarchy of dynamic capabilities
- Question 2: is the organization able to take advantage of external opportunities and overcome external threats?
- Identifying an organization’s internal strengths
- Identifying organizational weaknesses and competitive deficiencies
- Identifying opportunities
- Identifying the threats to an organization’s future profitability
- What do the SWOT listings reveal?
- A Different View A Critical Look at SWOT
- Tows
- Question 3: Are the organization’s prices and costs competitive, and does it have an appealing customer value proposition?
- The concept of a value chain
- Illustration Capsule 4.2 The value chain for just coffee, a producer of fair-trade organic coffee
- The value chain system for an entire industry
- Benchmarking: a tool for assessing whether the costs and effectiveness of an organization’s value chain activities are in line
- Strategic options for remedying a disadvantage in costs or effectiveness
- Illustration Capsule 4.3 Benchmarking and ethical conduct
- Translating Proficient Performance of Value Chain Activities into Competitive Advantage
- Question 4: does the organization have competitive strength?
- Strategic Implications of Competitive Strength Assessments
- Key Debate 4.1 Extending the resource-based view
- Question 5: what strategic issues and problems merit priority managerial attention?
- Question 6: how well is the organization’s strategy working?
- Chapter Summary and Key Points
- Closing Case King digital entertainment: development of dynamic capabilities or the result of luck?
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Chapter 5 Strategies for Competitive Advantage: Generic Strategies and Beyond
- Opening Case Different approaches to online dating
- The five generic competitive strategies
- Low-cost provider strategies
- The two major avenues for achieving a cost advantage
- Illustration Capsule 5.1 How Aldi And Lidl developed low-cost strategies that even Walmart could not match
- The keys to being a successful low-cost provider
- When a low-cost provider strategy works best
- Pitfalls to avoid in pursuing a low-cost provider strategy
- Key Debate 5.1 Is cost leadership a discrete position or just another type of differentiation?
- Broad differentiation strategies
- Managing the value chain to create the differentiating attributes
- Delivering superior value via a broad differentiation strategy
- When a differentiation strategy works best
- Pitfalls to avoid in pursuing a differentiation strategy
- Illustration Capsule 5.2 Competing successfully with low-cost rivals
- Focused (or Market Niche) strategies
- A focused low-cost strategy
- A focused differentiation strategy
- When a focused low-cost or focused differentiation strategy is attractive
- Emerging Theme 5.1 Technology: is focus the strategy of the future?
- The risks of a focused low-cost or focused differentiation strategy
- Illustration Capsule 5.3 Burberry: attracting the right customers
- Best-cost Provider Strategies
- When a best-cost provider strategy works best
- Illustration Capsule 5.4 Technology-driven best-cost strategy: Les Nouveaux Ateliers
- Best-cost provider strategy: big risk or the only option in future?
- The contrasting features of the five generic competitive strategies: a summary
- Successful competitive strategies are resource-based
- A Different View Combining Generic Strategies with the Resource-based View: The Market-control/value Matrix
- Chapter Summary and Key Points
- Closing Case LA Fitness: caught between boutique and budget gyms
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Opening Case What happened to Nintendo’s blue ocean?
- Going on the offensive: strategic options to improve a company’s market position
- Choosing the basis for competitive attack
- Choosing which rivals to attack
- Blue ocean strategy: a special kind of offensive
- Defensive strategies: protecting market position and competitive advantage
- Blocking the avenues open to challengers
- Signalling challengers that retaliation is likely
- Timing a company’s offensive and defensive strategic moves
- The potential for first-mover advantages
- Illustration Capsule 6.1 Amazon.com’s first-mover advantage in online retailing
- The benefits of being a fast follower
- The potential for late-mover advantages
- To be a first mover or not?
- Illustration Capsule 6.2 New bases for competitive advantage
- Strengthening an organization’s market position via its scope of operations
- Illustration Capsule 6.3 Horizontal and vertical scope options in the confectionery sector
- Horizontal merger and acquisition strategies
- Illustration Capsule 6.4 Al Noor and Mediclinic Merger
- Why mergers and acquisitions sometimes fail to produce anticipated results
- Vertical integration strategies
- The advantages of a vertical integration strategy
- The disadvantages of a vertical integration strategy
- Weighing the pros and cons of vertical integration
- Outsourcing strategies: narrowing the scope of operations
- A major risk of outsourcing value chain activities
- Key Debate 6.1 Is innovation better suited within or outside an organization?
- Strategic alliances and partnerships
- Why and how strategic alliances are advantageous
- Capturing the benefits of strategic alliances
- The drawbacks of strategic alliances and partnerships
- How to make strategic alliances work
- Emerging Theme 6.1 Using business ecosystems for competitive advantage
- Chapter Summary and Key Points
- Closing Case Safaricom and M-Pesa: Innovation through partnership
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Opening Case Oriflame
- Why organizations decide to enter international markets
- Why competing across national borders makes strategy-making more complex
- Cross-country variation in factors that affect industry competitiveness
- Locating value chain activities for competitive advantage
- The impact of government policies and economic conditions in host countries
- The risks of adverse exchange rate shifts
- Cross-country differences in demographic, cultural and market conditions
- Illustration Capsule 7.1 Diamond model revisited
- The concepts of multidomestic competition and global competition
- Strategic options for entering and competing in international markets
- Illustration Capsule 7.2 Entry strategy: the radio model (WBMH)
- Export strategies
- Licensing strategies
- Franchising strategies
- Acquisition strategies
- Greenfield venture strategies
- Alliance and joint venture strategies
- Illustration Capsule 7.3 Four examples of cross-border strategic alliances
- Competing Internationally: The three main strategic approaches
- Multidomestic strategy: think local, act local
- Global strategy: think global, act global
- Transnational strategy: think global, act local
- The quest for competitive advantage in the international arena
- Using location to build competitive advantage
- Sharing and transferring resources and capabilities across borders to build competitive advantage
- Using cross-border co-ordination for competitive advantage
- Emerging Theme 7.1 Born globals
- Profit sanctuaries and cross-border strategic moves
- Using cross-market subsidization to make a strategic move
- Using cross-border tactics to defend against international rivals
- Strategies for competing in the markets of developing countries
- Illustration Capsule 7.4 Yum! brands’ strategy for becoming the leading food service brand in China
- Strategy options for competing in developing country markets
- Defending against global giants: strategies for local organizations in developing countries
- Illustration Capsule 7.5 How CTRIP successfully defended against international rivals to become China’s largest online travel agency
- Key Debate 7.1 Globalization
- Chapter Summary and Key Points
- Closing Case Netcare: create a truly global company or focus on home?
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Opening Case Extending the brand: Victorinox
- When to diversify
- Illustration Capsule 8.1 Corporate growth strategies
- Building shareholder value: a primary justification for diversifying
- Strategies for entering new businesses
- Acquisition of an existing business
- Internal development
- Joint ventures
- Choosing a mode of entry
- Choosing the diversification path: related versus unrelated businesses
- Strategic fit and diversification into related businesses
- Identifying cross-business strategic fit along the value chain
- A Different View Related Diversification as a Pursuit of Market Adjacencies
- Strategic fit, economies of scope and competitive advantage
- Emerging Theme 8.1 The increased value of a diversification strategy in emerging economies
- Diversification into unrelated businesses
- Building shareholder value via unrelated diversification
- The path to greater shareholder value through unrelated diversification
- The drawbacks of unrelated diversification
- Inadequate reasons for pursuing unrelated diversification
- Key Debate 8.1 Theory on determinants of the boundaries of the firm
- Combination related–unrelated diversification strategies
- Evaluating the strategy of a diversified organization
- Step 1: evaluating industry attractiveness
- Step 2: evaluating business-unit competitive strength
- Step 3: checking the competitive advantage potential of cross- business strategic fit
- Step 4: checking for resource fit
- Step 5: ranking the performance prospects of business units and assigning a priority for resource allocation
- Step 6: crafting new strategic moves to improve overall corporate performance
- Illustration Capsule 8.2 Managing diversification at Johnson & Johnson: the benefits of cross-business strategic fit
- Illustration Capsule 8.3 VF’s corporate restructuring strategy, which made it the star of the apparel industry
- Chapter Summary and Key Points
- Closing Case Who has the parenting advantage? Philips exits TV
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Opening Case Ethics and banking
- What do we mean by business ethics?
- Where do ethical standards come from – are they universal or dependent on local norms?
- Illustration Capsule 9.1 Building ethical standards across Apple’s supply chain
- The school of ethical universalism
- The school of ethical relativism
- Ethics and integrated social contracts theory
- How and why ethical standards impact on the tasks of crafting and executing strategy
- What are the drivers of unethical strategies and business behaviour?
- Faulty oversight and the overzealous pursuit of personal gain, wealth and self-interest
- Illustration Capsule 9.2 Investment fraud at Bernard L. Madoff investment securities and Stanford Financial Group
- Heavy pressures on managers to meet or beat short-term earnings targets
- An organizational culture that puts profitability and business performance ahead of ethical behaviour
- Illustration Capsule 9.3 Rebuilding siemens’ reputation
- Why should an organization’s strategies be ethical?
- The moral case for an ethical strategy
- Emerging Theme 9.1 Technology and socio-cultural change
- The business case for ethical strategies
- Strategy, corporate social responsibility and environmental sustainability
- What do we mean by CSR?
- Key Debate 9.1 Who is responsible for CSR?
- Illustration Capsule 9.4 Novo Nordisk’s triple bottom line
- What do we mean by sustainability and sustainable business practices?
- Crafting CSR and sustainability strategies
- The moral case for CSR and environmentally sustainable business practices
- The business case for CSR and environmentally sustainable business practices
- Chapter Summary and Key Points
- Closing Case News Corporation at bay
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Chapter 10 Configuring the Organization
- Opening Case Turning around the Co-operative Bank
- A framework for executing strategy
- The principal components of the strategy execution process
- Building an organization capable of good strategy execution: where to begin
- Strategy execution and structure
- Deciding which value chain activities to perform internally and which to outsource
- Aligning the firm’s organizational structure with its strategy
- Determining how much authority to delegate
- Emerging Theme 10.1 New structures: empty bird’s nests, G-forms and research commons
- Facilitating collaboration with external partners and strategic allies
- Further perspectives on structuring the work effort
- People: staffing the organization
- Putting together a strong management team
- Illustration Capsule 10.1 How GE develops a talented and deep management team
- Recruiting, training and retaining capable employees
- Systems for strategy execution
- Support systems
- Control systems
- A Different View Dynamic Control Systems
- Reward systems
- Illustration Capsule 10.2 What organizations do to motivate and reward employees
- Organizational processes, policies and procedures that facilitate strategy execution
- Allocating resources to the strategy execution effort
- Building and strengthening core competences and competitive capabilities
- Illustration Capsule 10.3 Toyota’s legendary production system: a capability that translates into competitive advantage
- Instituting policies and procedures that facilitate strategy execution
- Configuration/Alignment
- Configuration
- Alignment
- Key Debate 10.1 Alignment vs Agility
- Chapter Summary and Key Points
- Closing Case Lego: brick by brick to the top of the pile
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Opening Case Expressing small-town values in a global organization: Ikea
- Instilling an organizational culture that promotes good strategy execution
- Illustration Capsule 11.1 The organizational culture at google
- Identifying the Key Features of an Organization’s Culture
- A Different View Schein’s Levels of Culture
- Organizational cultures can be strongly or weakly embedded
- Why organizational cultures matter to the strategy execution process
- Healthy cultures that aid good strategy execution
- Unhealthy cultures that impede good strategy execution
- A Different View A Taxonomy of Organizational Culture
- Changing a problem culture: the role of leadership
- Illustration Capsule 11.2 Changing the ‘old Detroit’ culture at Chrysler
- Leading the strategy execution process
- Staying on top of how well things are going
- Putting constructive pressure on organizational units to execute the strategy well and achieve operating excellence
- Key Debate 11.1 What is organizational culture?
- Emerging Theme 11.1 Millennial leadership?
- Leading the process of making corrective adjustments
- Illustration Capsule 11.3 Microsoft Sweden: Introduction of an activity-based office
- A final word on leading the process of crafting and executing strategy
- Chapter Summary and Key Points
- Closing Case Gail Kelly: The banking CEO with the human touch
- Assurance of Learning Exercises
- Exercises for Simulation Participants
- Recommended Reading
- Endnotes
- Case Carnival Corporation & plc
- Company background
- Acquisitions
- New ships, new destinations
- Stormy seas
- Cruising’s evolution
- A cyclical industry
- Scanning the horizon
- The era of the ‘smart ship’
- Green ocean strategy
- Complex supply chains
- The new strategy
- The board meeting
- Endnotes
- Company background
- Company background
- The revolution in bookselling
- Looking to the future
- The new owner
- Change at the top
- Daunt’s strategy
- The conference call
- Sources
- Company background
- The battle in the boardroom
- The ‘Musk’ way
- The automobile industry in the 21st century
- Innovation
- Regulation and hand-outs
- Commodities and financing
- Global markets and consumption patterns
- Luxury versus ultra low cost
- The electric vehicle market
- Sources
- Company background
- The turbulent environment of airlines
- The strategic implementation of ancillary services
- Investors’ perspectives
- Kenya Airways’ operational approach
- Staff costs and productivity
- Passenger quality services
- Marketing strategy
- The local and international competition
- Risks and challenges
- Leading Kenya Airways into a bright future
- The promise in the next 10 to 20 years
- Endnotes
- Company background
- The impact of a new base overseas
- The product portfolio
- The competition
- Recent trends and uncertainties
- The company and its allies
- Changing owners
- The new strategy
- Company background
- Demerger
- Hennequin’s strategy
- The global hotel industry
- History
- Current trends
- Key players in the global hotel industry
- The boardroom coup
- The new strategy
- Endnotes
- Company history
- The 2001 acquisition of quaker oats
- Acquisitions after 2001
- Building shareholder value in 2014
- Frito-Lay North America
- Quaker foods North America
- Latin American foods
- PepsiCo America’s beverages
- PepsiCo Europe
- Asia, Middle East and Africa
- Value chain alignment between PepsiCo brands and products
- PepsiCo’s strategic situation in 2014
- Endnotes
- Company background
- The human disengagement that resulted from the restructure
- Top-line findings
- Recommended remedial actions
- So what did we do?
- The outcome
- Sources
- Company background
- Industry background
- Building the TOMS brand
- A business model dedicated to socially responsible behaviour
- Giving Partners
- Building a relationship with Giving Partners
- Maintaining a dedication to corporate social responsibility
- Giving trips
- Environmental sustainability
- Creating the TOMS workforce
- Financial success at TOMS
- Production at TOMS
- The future
- Endnotes
- Company history
- Overview of the tractor and agricultural equipment industry
- Industry competition
- International markets for agricultural equipment
- Deere & Company’s strategy in 2014
- Deere’s rivals in the tractor and agricultural equipment industry
- CNH Industrial NV
- AGCO corporation
- Caterpillar, Inc.
- The future for Deere & Company
- Company background
- KBC’s response to digitization
- Digital strategy: ‘Klant 2020’
- Programme organization
- Project life cycle
- Roll-out status
- Endnotes
- Company background
- More products and more stores
- Services and systems
- Structure
- Working-class culture
- The crisis unfolds
- Post-recession shopping
- An industry in turmoil
- The changing UK population
- E-tailing and the online grocery sector
- Suppliers and buyers
- The crisis deepens
- Next steps
- The meeting with the new directors
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