Strategic Management: Concepts and Cases (8th Edition)

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9780130269959: Strategic Management: Concepts and Cases (8th Edition)

For undergraduate/graduate-level courses in Strategic Management, Strategy, and Business Policy. Communicating both the excitement and value of strategic management, this popular, lively and conversational text reflects the effect our rapidly changing world has on strategic management theory and practice. Designed in functional four-color, it offers a popular practitioner-oriented perspective, focuses on skill-building in all major areas of strategy formation, implementation, and evaluation, and weaves three very contemporary themes throughout each chapter-globalization, the natural environment, and e-commerce. Numerous Experiential Exercises-and the most up-to-date compilation of real-world company cases ever assembled in a business policy text-provide an unparalleled hands-on approach to state-of-the-art strategic management concepts and techniques for achieving competitive advantage in today's dynamic business environment.

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From the Back Cover:

Fred R. David's revision of his popular text gives students of all levels a thorough and interesting introduction to strategic management — one that will show you the value and the excitement of the field. Now with a greater emphasis on the use of technology and international strategic management, this eighth edition includes fascinating new cases, a useful model, handy matrices, and much more: * A new box on e-commerce appears in every chapter
* A new Cohesion Case featuring America Online illustrates key concepts at the end of each chapter
* Up-to-date international coverage has been integrated throughout the text
* Over 50 Experiential Exercises that help you learn new management skills
* A practical — not theoretical — orientation that shows you how to apply what you're reading about
* Available with "Mastering Strategy" — the most extensive cross-platform business education resource in the world
* MYPHLIP — Prentice Hall's industry standard Web gives you one-click access to all of the resources created by our award-winning team of educators.

Excerpt. © Reprinted by permission. All rights reserved.:

PREFACE

The new millennium has ushered in a radically different and more complex business world than it was just two years ago when the previous edition of this text was published. An avalanche of e-commerce has changed the nature of business to its core. European companies purchased hundreds of American companies. Downsizing, rightsizing, reengineering, and countless divestitures, acquisitions, and liquidations permanently altered the corporate landscape. Thousands of firms globalized, and thousands more merged in the last two years. Thousands prospered, and yet thousands more failed. Many manufacturers became e-commerce suppliers, and many rival firms became partners. Long-held competitive advantages have eroded, and new ones have formed. Both the challenges and opportunities facing organizations of all sizes today are greater than ever.

Our mission in preparing the eighth edition of Strategic Management was "to create the most current, well-written business policy textbook on the market—a book that is exciting and valuable to both students and professors." To achieve this mission, every page has been revamped, updated, and improved. The prior Chapter 10 titled "International Strategic Management" has been replaced with every chapter now comprising 20 percent new global content. There is a new E-commerce Theme permeating each chapter in this edition. Chapter 2 in the prior edition becomes Chapter 5 in this edition. New strategic-management research and practice are incorporated throughout the chapters, and hundreds of new examples abound. There is a new Cohesion Case on America Online (AOL)—2000. A wonderful selection of new cases include such companies as eBay, E*Trade, Amazon.com, Compaq Computer Corporation, First Union Corporation, and Wachovia Corporation. The time basis for all cases included in this edition is to 2000, representing the most up-to-date compilation of cases ever assembled in a business policy text.

SPECIAL NOTE TO PROFESSORS

This textbook meets all AACSB guidelines for the business policy and strategic management course at both the graduate and undergraduate level. Previous editions of this text have been used at more than five hundred colleges and universities. Prentice Hall maintains a separate Web site for this text at www.prenhall.com/davidsm. The author maintains the Strategic Management Club Online Web site at www.strategyclub.com. Membership is free to both professors and students.

Although structure of this edition parallels the last, dramatic improvements have been made in readability, currentness, and coverage. In keeping with the mission "to become the most current, well-written business policy textbook on the market," every page has undergone rethinking and rewriting to streamline, update, and improve the caliber of presentation. A net result of this activity is that every chapter is shorter in length, and there are now nine chapters instead of ten. New concepts and practices in strategic management are presented in a style that is clear, focused, and relevant.

CHAPTER THEMES

Three themes permeate all chapters in this edition and contribute significantly to making this text timely, informative, exciting, and valuable. A new boxed insert for each theme and substantial new narrative appear in each chapter. The three themes follow.

1. Global Factors Affect Virtually All Strategic Decisions
The global theme is greatly enhanced in this edition because doing business globally has become a necessity, rather than a luxury, in most industries. Nearly all strategic decisions today are affected by global issues and concerns. For this reason, the previous Chapter 10 on "International Strategic Management" has been replaced by substantial new global coverage in each chapter. There is growing interdependence among countries and companies worldwide. The dynamics of political, economic, and cultural differences across countries directly affect strategic management decisions.

2. E-Commerce Is a Vital Strategic Management Tool
A new e-commerce theme is deeply integrated throughout the chapters in response to immense e-commerce opportunities and threats facing organizations today. Almost all products can now be purchased over the Internet. Business-to-business e-commerce is ten times greater even than business-to-consumer e-commerce. Accelerating use of the Internet to gather, analyze, send, and receive information has changed the way strategic decisions are made. Since the last edition, literally millions of companies have established World Wide Web sites and are conducting e-commerce internationally.

3. Preserving the Natural Environment Is a Vital Strategic Issue
Unique to strategic-management texts, the natural environment theme is strengthened in this edition in order to promote and encourage firms to conduct operations in an environmentally sound manner. Countries worldwide have enacted laws to curtail firms from polluting streams, rivers, the air, land, and sea. Environmental concerns are a new point 'of contention in World Trade Organization (WTO) policies and practices. The strategic efforts of both companies and countries to preserve the natural environment are described in this edition. Respect for the natural environment has become an important Concern for consumers, companies, society, and the AACSB.

TIME-TESTED FEATURES

This edition continues many of the special time-tested features and content that have made this text so successful over the last decade. Trademarks of this text strengthened in this edition are as follows:

Chapters: Time-Tested Features

  • The text meets AACSB guidelines which support a practitioner orientation rather than a theory/research approach. This text supports that effort by taking a skills-oriented approach to developing a mission statement, performing an external audit, conducting an internal assessment, and formulating, implementing, and evaluating strategies.
  • The global theme permeating all chapters couches strategic-management concepts in a global perspective.
  • A simple, integrative strategic-management model appears in all chapters and on the inside front cover of the text.
  • A Cohesion Case (America Online—2000) appears after Chapter 1 and is revisited at the end of each chapter. This case allows students to apply strategic-management concepts and techniques to a real organization as chapter material is covered. This integrative (cohesive) approach readies students for case analysis.
  • End-of-chapter Experiential Exercises effectively apply concepts and techniques in a challenging, meaningful, and enjoyable manner. Eighteen exercises apply text material to the Cohesion Case; ten apply textual material to a college or university; another ten send students into the business world to explore important strategy topics. The exercises are relevant, interesting, and contemporary.
  • Excellent pedagogy, including Notable Quotes and Objectives to open each chapter, and Key Terms, Current Readings, Discussion Questions, and Experiential Exercises to close each chapter.
  • Excellent coverage of business ethics aimed at more than meeting AACSB standards.
  • Excellent coverage of strategy implementation issues such as corporate culture, organizational structure, marketing concepts, and financial tools and techniques.
  • A systematic, analytical approach presented in Chapter 6, including matrices such as the TOWS, BCG, IE, GRAND, SPACE, and QSPM.
  • The chapter material is again published in four color.
  • The Web site www.prenhall.com/davidsm provides chapter and case updates, an online Study Guide, and support materials.

Cases: Time-Tested Features

  • The 2000 timeframe for cases offers the most current set in any business policy text on the market.
  • The cases focus on well-known firms in the news making strategic changes. All cases are undisguised and most are exclusively written for this text to reflect current strategic-management problems and practices.
  • The cases feature a great mix of small business, international, and not-for-profit firms organized conveniently by industry.
  • Almost all cases provide complete financial information about the firm and an organizational chart.
  • A split-paperback version including only cases is available.
  • A special matrix provided here in preface compares all cases in the text on important criteria such as topics covered, size of firm, complexity of case, etc.

NEW TO THIS EDITION

In addition to the special time-tested trademarks described above, this edition includes some exciting new features designed to position this text as the clear leader and best choice for teaching business policy and strategic management include:

Changes in the Cases

  • Thirteen brand-new, year 2000 cases focusing on companies in the news appear exclusively for the first time in this text. The cases are:

    America Online (AOL)—The New Cohesion Case; E*Trade; eBay; Amazon.com; First Union Corporation; Wachovia Corporation; Lockheed Martin Corporation; Compaq Computer Corporation; Dell Computer Corporation; Research in Motion; M. D. Anderson Biomedical Services Department; Quorum Health Group; Reader's Digest Association; Reebok International.


  • Twenty-eight fully-updated cases from the last edition are included as follows:

    The Limited; Wal-Mart Stores; Target Corporation; Mandalay Resort Group; Harrah's Entertainment; The Audubon Institute; Riverbanks Zoological Park and Botanical Garden; The Classic Car Club of America; RailTex; Greyhound Lines; Carnival Corporation; Southwest Airlines Co.; Central United Methodist Church; Elkins Lake Baptist Church; Harley-Davidson; Winnebago Industries; Avon Products; Revlon; UST; Pilgrim's Pride Corporation; H. J. Heinz Company; Hershey Foods Corporation; The Boeing Company; Apple Computer; Stryker Corporation; Biomet; Playboy Enterprises; Nike.
Specific Chapter Changes

  • Chapter 1 titled "The Nature of Strategic Management"—New headings, subheadings, and topics include: History of Strategic Planning, Pitfalls in Doing Strategic Planning, Why Some Firms Do No Strategic Planning, Guidelines for Doing Strategic Planning, Internet Ethics Issues, Nature of Global Competition, Advantages and Disadvantages of International Operations.
  • Chapter 2 titled "The Business Mission"—Extensive new coverage of vision statements is provided including numerous examples. All-new example mission statements are provided and evaluated. New topics include Concern About Company Mission Across Continents and Vision Versus Mission. Chapter material is totally reorganized to improve caliber of presentation.
  • Chapter 3 titled "The External Assessment"—Fully undated Web site references and narrative with all new examples. New headings include The Global Challenge, Politics in Mexico, Politics in Russia, Politics in China, Is the Internet Revolution Bypassing the Poor, Minorities?, What Country is the Most Wireless Nation? Expanded coverage of Competitive Intelligence and Cooperation Among Competitors is provided. New demographic trend information included.
  • Chapter 4 titled "The Internal Assessment"—New headings, subheadings, and topics include: American Versus Foreign Cultures, Changing Role of Women in Japan, E-Stores Replacing Brick Stores. All new examples provided. Prior table giving internal audit checklist of questions now integrated throughout the chapter. Extensive new advertising and global material.
  • Chapter 5 titled "Strategies in Action"—Previously Chapter 2, new headings include: Should Internet Sales Remain Tax-Free? Does the USA Lead in Small Business Startups?, The Nature of Long-Term Objectives, and Not Managing by Objectives. All new strategy examples are provided, including the lists of current divestitures, joint ventures, and mergers. Previous table titled Guidelines for Situations When Particular Strategies Are Most Effective has been replaced with appropriate integration throughout the chapter. Joint Venture is no longer grouped as a Defensive Strategy. Michael Porter's generic strategy material shifts and expands in coverage.
  • Chapter 6 titled "Strategy Analysis and Choice"—New headings include: Industries Most Affected By Online Sales, Merger Mania in Europe, Boards of Directors. The long-term objectives material shifts to prior chapter. New year2000 examples provided throughout. Extensive new coverage provided on governance. Matrix approach to strategy analysis and choice improved.
  • Chapter 7 titled "Implementing Strategies: Management Issues"—New headings include: Restructuring Changes a Country, The Mexican Culture, The Russian Culture, The Chinese Culture, CEO's Becoming E-Commerce Leaders. Increased coverage of women in top management, natural environment issues, e-engineering, global issues, and e-commerce. All new examples provided.
  • Chapter 8 titled "Implementing Strategies: Marketing, Finance/Accounting, R&D, and CIS Issues"—New coverage of Internet marketing, Internet advertising, market segmentation, New headings include: Europe Acquiring the USA, Business Reaction to Global Warming, New Trends in Firms Going Public. New examples provided throughout. Expanded coverage of global and e-commerce factors.
  • Chapter 9 titled "Strategy Review, Evaluation, and Control"—New headings are The Best Companies in Britain, France, and Germany and Using Virtual Close for Strategy Evaluation. All new examples provided. Increased coverage of global factors and e-commerce issues.

ANCILLARY MATERIALS

  • Instructor's Resource CD-ROM. Includes improved PowerPoint slides offering professors easy lecture outlines for in-class presentations. Chapter headings and topics are highlighted on up to forty PowerPoint slides per chapter. The Instructor's Manual and Test Item File are also included.
  • Case Instructor's Manual. Provides a comprehensive teacher's note for all forty-one cases. The teachers' notes feature detailed analyses, classroom discussion questions with answers, an external and internal assessment, specific recommendations, strategy implementation material, and an epilogue for each case. Each teachers' note is also provided on a PowerPoint slide for convenience to the professor.
  • Instructor's Manual. Provides lecture notes, teaching tips, answers to all end chapter Experiential Exercises and Review Questions, additional Experiential Exercises not in the text, a glossary with definitions of all end-of-chapter key terms and concepts, sample course syllabi, and a test bank of nearly fifteen hundred questions with answers.
  • Twenty Color Care Video Segments. To accompany the Cohesion Case, a color video prepared by America Online (AOL) is available to adopters free of charge. Shown near the beginning of the course, the AOL video can arouse students' interest in studying the Cohesion Case and completing Experiential Exercises that apply chapter material to this case. In addition, a collection of nineteen other color case video segments is available free of charge. The segments average fifteen minutes each and were professionally prepared by firms used in cases in this text.
  • PHLIP/CW—Prentice Hall Learning on the Internet Partnership (PHLIP). This...

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