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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.
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
Cases: Time-Tested Features
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
ANCILLARY MATERIALS
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