Strategic Management: Concepts and Cases, Ninth Edition

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9780130479129: Strategic Management: Concepts and Cases, Ninth Edition

Designed in functional four-color, this book 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. Forty-one Experiential exercises, and 41 cases are included. Coverage includes developing a mission statement, performing an external audit, conducting an internal assessment, and formulating, implementing, and evaluating strategies, as well as global issues and concerns. For anyone interested in the fields of Strategic Management, Strategy, and Business Policy.

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

The global recession and war on terrorism 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. E-commerce has changed the nature of business to its core.

Thousands of strategic alliances and partnerships were formed in 2000 and 2002. Hundreds of companies declared bankruptcy, and interest rates fell to the—lowest level in fifty years. 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 eroded, and new ones formed. Both the challenges and opportunities facing organizations of all sizes today are greater than ever.

Changes made in this ninth edition are aimed squarely at illustrating the effect of this new world order on strategic-management theory and practice. Changes in this edition are substantial. To survive and prosper in the new millennium, organizations must build and sustain a competitive advantage. This new edition provides up-to-date, state-of-the-art coverage of strategic-management concepts and techniques for achieving a competitive advantage.

Our mission in preparing the ninth 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. New strategic-management research and practice are incorporated throughout the chapters, and hundreds of new examples abound. There is a new Cohesion Case on American Airlines—2002. Scores of reviewers and I believe American Airlines—2002 you will find this edition to be the best ever—and now the best business policy textbook available for communicating both the excitement and value of strategic management. The text is concise and exceptionally well organized. Now published in six different languages—English, Chinese, Spanish; Arabic, Indonesian, and Japanese—this text is perhaps the most widely used strategic-planning book in the world.

Special Note to Professors

This textbook meets all AACSB guidelines for the business policy and strategic management course at both the graduate and undergraduate levels. 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/david. The author maintains the Strategic Management Club Online Web site at www.strategyclub.com. Membership is now free to both professors and students.

Although the 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. 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. There is substantial new global coverage in each chapter due to growing interdependence among countries and companies worldwide. The dynamics of political, economic, and cultural differences across countries directly affect strategic management decisions. Doing business globally is more risky and complex than ever before. The global theme is targeted at illustrating how organizations today can effectively do business in the new millennium.

2. E-Commerce Is a Vital Strategic Management Tool

The 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. The 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 two decades. Trademarks of this text strengthened in this edition are as follows:

  • The 2002 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.
  • All cases have been class tested to ensure that they are interesting, challenging, and effective for illustrating strategic-management concepts.
  • Almost all cases provide complete financial information about the firm and an organizational chart.
  • Customized inclusion of cases to comprise a tailored text is available to meet the special needs of some professors.
  • A split-paperback version including only cases is available.
  • An outstanding ancillary package, including a comprehensive Instructor's Manual and an elaborate Case Instructor's Manual. An extensive transparency package, color case videos, PowerPoint diskettes, and computerized test bank come free with adoption.
Key Chapter Improvements
  • Dramatically improved coverage of global issues and concerns has been woven into every chapter.
  • Mostly new E-Commerce Perspective boxed inserts appear in each chapter to portray the increasing reliance upon e-commerce by both large and small firms.
  • Mostly new Global Perspective boxed inserts are provided in each chapter to support the expanded Global theme.
  • Mostly new Natural Environment perspective boxed inserts appear in each chapter to show strategic relevance of this issue to business.
  • All new examples are provided in every chapter.
  • New research is integrated into every chapter, with new current readings at the end of each chapter.
  • More than one hundred new Web site addresses are provided throughout the chapters in a new Visit The Net Feature.
Time Tested Features—Cases

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

  • The 2002 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.
  • All cases have been class tested to ensure that they are interesting, challenging, and effective for illustrating strategic-management concepts.
  • Almost all cases provide complete financial information about the firm and an organizational chart.
  • Customized inclusion of cases to comprise a tailored text is available to meet the special needs of some professors.
  • A split-paperback version including only cases is available.
  • An outstanding ancillary package, including a comprehensive Instructor's Manual and an elaborate Case Instructor's Manual. An extensive transparency package, color case videos, PowerPoint diskettes, and computerized test bank come free with adoption.
Changes in the Cases
    Eight brand-new, year 2001 cases focusing on companies in the news appear exclusively for the first time in this text. The cases are:
    – Winn-Dixie
    – Coors Brewing
    – Royal Caribbean
    – Strictly Roots Natural Hair Salon
    – Reader's Digest Association
    – Reebok International
    – E*Trade
    – e Bay
    – Amazon.com
    – Lockheed Martin Corporation
    – Dell Computer Corporation
    – 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
    – 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
    – Stryker Corporation
    – Biomet
    – Playboy Enterprises
    – Nike
    – Wachovia Corporation
    – Hewlett-Packard
    – First State Bank of Roan's Prairie
    – US Airways
  • Thirty-two fully updated cases from the last edition are included as follows:
    • The new mix of forty cases includes a nice balance of twenty service companies and twenty manufacturing companies
    • The new mix of cases includes three purely e-commerce cases to support the new e-commerce theme. The cases are E*Trade, eBay, and Amazon.
    • The new mix of cases includes eight small-business cases and six not-for-profit cases.
    • The new mix of cases include thirty-two "international" companies.
  • 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 updated 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.
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 with Test Item File. Provides lecture notes, teaching tips, answers to all end of chapter Experiential Exercises and Review Questions, additional Experiential Exercises not in the text, sample course syllabi, and a Test Item file with multiple-choice use true/false questions.
  • Twenty Color Case Video Segments. To accompany the Cohesion Case, a color video prepared by American Airlines is available to adopters free of charge. Shown near the beginning of the course, the American Airlines 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.
  • The Prentice Hall Companion Website www.prenhall.com/david Features an interactive and exciting online student study guide. Students can access multiple-choice, true/false, and Internet-based essay questions that accompany each chapter in the text. Objective questions are scored online, and incorrect answers are keyed to the text for student review. And drunleadable supplement are available for faculty.
  • Standard Web CT-Free to Adopters. Standard Web CT, an online course from Prentice Hall, features Companion Web Site and Test Item File Content in an easy-to-use system. Developed by educators for educators and their students, the online content and tools feature the most advanced educational technology and instructional design available today. The rich set of materials, communication tools, and course management resources can be easily customized either to enhance a traditional course or to create the entire course online.
  • Transparency Masters. Approximately one hundred transparency masters are available with this text. These transparencies feature figures and key topics in the text and are provided as full-colour acetates.
  • Printed and Computerized Test Bank. The test bank for this text includes 737 True/False questions, 425 multiple-choice questions, and 202 essay questions for the text chapters. Answers to all objective questions are provided. The test questions given in the Instructor's Man

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