Concepts. 12e. Michael A. Hitt Texas A&M University and Texas Christian University. R. Duane Ireland Texas A&M University

Transcription

1 STRATEGIC MANAGEMENT Competitiveness & Globalization Concepts 12e Michael A. Hitt Texas A&M University and Texas Christian University R. Duane Ireland Texas A&M University Robert E. Hoskisson Rice University / > CENGAGE Learning* Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States

2 * # ^p# - (fontent^ } ' * * '<# Preface xv About the Authors xxii Part 1: Strategie Management Inputs 2 1: Strategie Management and Strategie Competitiveness 2 Opening Case: Alibaba: An Online Colossus in China Goes Global The Competitive Landscape 7 1-1a The Global Economy 8 1-1b Technology and Technological Changes 10 Strategie Focus: Starbucks Is "Juicing"lts Earnings per Store through Technological Innovations The I/O Model of Above-Average Returns The Resource-Based Model of Above-Average Returns Vision and Mission a Vision b Mission Stakeholders 19 Strategie Focus: The Failure ofblackberry to Develop an Ecosystem of Stakeholders a Classification of Stakeholders Strategie Leaders a The Work ofeffective Strategie Leaders The Strategie Management Process 26 Summary 28 Key Terms 28 Review Questions 29 Mini-Case 29 Notes 30 2: The Externa! Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis 38 Opening Case: Are There Cracks in the Golden Arches? The General, Industry, and Competitor Environments External Environmental Analysis a Scanning b Monitoring c Forecasting d Assessing Segments of the General Environment a The Demographic Segment b The Economic Segment c The Political/Legal Segment d The Sociocultural Segment e The Technological Segment f The Global Segment 52 vii

3 viii 2-3g The Sustainable Physical Environment Segment 53 Strategie Focus: Target Lost Its Sway Because Tar-zhey No Longer Drew the Customers Industry Environment Analysis a Threatof New Entrants b Bargaining Power of Suppliers c Bargaining Power ofbuyers d Threatof Substitute Products e Intensity ofrivairy among Competitors Interpreting Industry Analyses Strategie Groups 63 Strategie Focus: Watch Out All Retailers, Here Comes Amazon; Watch Out Amazon, Here Comes Jet.com Competitor Analysis Ethical Considerations 67 Summary 68 «Key Terms 68 Review Questions 68 Mini-Case 69 Notes 70 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages 76 Opening Case: Data Analytics, Large Pharmaceutical Companies, and Com Competencies: A Brave New World Analyzing the Internal Organization a The Context of Internal Analysis b CreatingValue c The Challengeof Analyzing the Internal Organization Resources, Capabilities, and Core Competencies a Resources 84 Strategie Focus: Strengthening the Superdry Brand as a Foundation to Strategie Success b Capabilities c Core Competencies Building Core Competencies a The FourCriteria of Sustainable Competitive Advantage b Value Chain Analysis Outsourcing Competencies, Strengths, Weaknesses, and Strategie Decisions 96 Strategie Focus: "We're Outsourcing thatactivity but Not That One? I'm Surprised!" 97 Summary 98 Key Terms 99 Review Questions 99 Mini-Case 100 Notes 101 Part 2: Strategie Actione: Strategy Formulation 108 4: Business-Level Strategy 108 Opening Case: Hain Ceiestiai Group: A Firm Focused on "Organic" Differentiation Customers: Their Relationship with Business-Level Strategies a Effectively Managing Relationships with Customers b Reach, Richness, and Affiliation c Who: Determining the Customers to Serve d What: Determining Which Customer Needs to Satisfy 114

4 ix 4-1 e How: Determining Gore Competencies Necessary to Satisfy Customer Needs The Purpose ofa Business-Level Strategy Typesof Business-Level Strategies a Cost Leadership Strategy b Differentiation Strategy 122 Strategie Focus: Apple vs. Samsung: Apple Differentiates and Samsung Imperfectly Imitates c Focus Strategies d Integrated Cost Leadership/Differentiation Strategy 129 Strategie Focus: RadioShack's Failed Focus Strategy: Strategie Flip-Flopping 130 Summary 134 Key Terms 135 Review Questions 135 Mini-Case 135 Notes 136 5: Competitive Rivalry and Competitive Dynamics 142 Opening Case: Does Google Have Competition? Dynamics of the High Technology Markets A Model of Competitive Rivalry Competitor Analysis a Market Commonality b Resource Similarity 148 Strategie Focus: Does Kellogg Have the Tiger by the TaiI or Is It the Reverse? Driversof Competitive Behavior Competitive Rivalry a Strategie and Tactical Actions Likelihood of Attack a First-Mover Benefits b Organizational Size c Quality Likelihood of Response a Type of Competitive Action b Actor's Reputation c Market Dependence Competitive Dynamics a Slow-Cycle Markets b Fast-Cycle Markets c Standard-Cycle Markets 162 Strategie Focus: The Ripple Effect of Supermarket Wars: Aldi Is Changing the Markets in Many Countries 163 Summary 164 Key Terms 166 Review Questions 166 Mini-Case 166 Notes 167 6: Corporate-Level Strategy 172 Opening Case: Disney Adds Value Using a Related Diversification Strategy Levels of Diversification a Low Levels of Diversification b Moderate and High Levels of Diversification Reasons for Diversification Value-Creating Diversification: Related Constrained and Related Linked Diversification 179

5 X 6-3a Operational Relatedness: Sharing Activities b Corporate Relatedness: Transferring of Core Competencies c Market Power d Simultaneous Operational Relatedness and Corporate Relatedness Unrelated Diversification a Efficient Internal Capital Market Allocation 185 Strategie Focus: GE and United Technology Are Firms that Have Pursued Internal Capital Allocation and Restructuring Strategies b Restructuring of Assets Value-Neutral Diversification: Incentives and Resources a Incentives to Diversify 188 Strategie Focus: Coca-Cola's Diversification to Deal with Its Reduced Growth in Soft Drinks b Resources and Diversification Value-Reducing Diversification: Managerial Motives to Diversify 193 Summary 196 Key Terms 196 Review Questions 196 Mini-Case 197 Notes 198 7: Merger and Acquisition Strategies 204 Opening Case: Mergers and Acquisitions: Prominent Strategies for Firms Seeking to EnhanceTheir Performance The Popularityof Mergerand Acquisition Strategies a Mergers, Acquisitions, and Takeovers: What Are the Differences? Reasons for Acquisitions 208 Strategie Focus: A Merger ofequals: Making It Happen Isn't Easy! a Increased Market Power b Overcoming Entry Barriers 211 Strategie Focus: Different Strategie Rationales Driving Cross-Border Acquisitions c Costof New Product Development and Increased Speed to Market d Lower RiskComparedto Developing New Products e Increased Diversification f Reshaping the Firm's Competitive Scope g Learning and Developing New Capabilities Problems in Achieving Acquisition Success a Integration Difficulties b Inadequate Evaluation oftarget c Large or Extraordinary Debt d Inabilityto Achieve Synergy e Too Much Diversification f Managers Overly Focused on Acquisitions g Too Large Effective Acquisitions Restructuring a Downsizing b Downscoping c Leveraged Buyouts d Restructuring Outcomes 225 Summary 227 Key Terms 228 Review Questions 228 Mini-Case 228 Notes 230

6 8: International Strategy 236 Opening Case: Netflix Ignites Growth Through International Expansion, But Such Growth Also Fires Up the Competition Identifying International Opportunities a Incentives to Use International Strategy b Three Basic Benefits of International Strategy International Strategies a International Business-Level Strategy b International Corporate-Level Strategy 246 Strategie Focus: Furniture Giant IKEA's Global Strategy Environmental Trends a Liability of Foreignness b Regionalization Choice of International Entry Mode a Exporting b Licensing c Strategie Alliances d Acquisitions e New Wholly Owned Subsidiary f Dynamics of Mode of Entry Risks in an International Environment a Political Risks b Economic Risks 259 Strategie Focus: The Global Soccer Industry and the Effect ofthe FIFA Scandal Strategie Competitiveness Outcomes a International Diversification and Returns b Enhanced Innovation The Challenge of International Strategies a Complexity of Managing International Strategies b Limits to International Expansion 264 Summary 265 Key Terms 266 Review Questions 266 Mini-Case 266 Notes 268 9: Cooperative Strategy 276 Opening Case: Google, Intel, and Tag Heuer: Collaborating to Produce a Smartwatch Strategie Alliances as a PrimaryType of Cooperative Strategy a Types of Major Strategie Alliances b Reasons Firms Develop Strategie Alliances Business-Level Cooperative Strategy a Complementary Strategie Alliances b Competition Response Strategy c Uncerta i nty-red ucing Strategy d Competition-Reducing Strategy 287 Strategie Focus: Strategie Alliances as the Foundation for Tesla Motors' Operations e Assessing Business-Level Cooperative Strategies Corporate-Level Cooperative Strategy a Diversifying Strategie Alliance 291

7 xii 9-3b Synergistic Strategie AI IIa nee c Franchising Bd Assessing Corporate-Level Cooperative Strategies International Cooperative Strategy Network Cooperative Strategy a Alliance NetworkTypes Competitive Risks with Cooperative Strategies 295 Strategie Focus: Failing to Obtain Desired Levels ofsuccess with Cooperative Strategies Managing Cooperative Strategies 297 Summary 299 Key Terms 300 Review Questions 300 Mini-Case 300 Notes 302 Part 3: Strategie Actions: Strategy Implementation : Corporate Governance 308 Opening Case: The Corporate Raiders of the 1980s Have Become the Activist Sharehoiders of Today Separation of Ownership and Managerial Control a Agency Relationships b Product Diversification as an Exampleofan Agency Problem lc Agency Costs and Governance Mechanisms Ownership Concentration a The Increasing Influence of Institutional Owners Board of Directors a Enhancing the Effectiveness of the Board of Directors b Executive Compensation c The Effectiveness of Executive Compensation 323 Strategie Focus: Do CEOs Deserve the Large Compensation Packages They Receive? Market for Corporate Control a Managerial Defense Tactics International Corporate Governance a Corporate Governance in Germany and Japan 328 Strategie Focus: "Engagement" versus "Activist"Sharehoiders in Japan, Germany, and China b Corporate Governance in China Governance Mechanisms and Ethical Behavior 332 Summary 333 Key Terms 334 Review Questions 334 Mini-Case 335 Notes : Organizational Structure and Controls 344 Opening Case: Luxottica's Dual CEO Structure: A Key to Long Term Success or a Cause for Concern? Organizational Structure and Controls a Organizational Structure 347 Strategie Focus: Changing McDonald's Organizational Structure: A Path to Improved Performance? b Organizational Controls Relationships between Strategy and Structure Evolutionary Patterns of Strategy and Organizational Structure a Simple Structure 352

8 xiii 11-3b Functional Structure c Multidivisional Structure d Matches between Business-Level Strategies and the Functional Structure e Matches between Corporate-Level Strategies and the Multidivisional Structure 357 Strategie Focus: Sony Corporation's New Organizationa! Structure: Greater Financial Accountability and Focused Allocations of Resources f Matches between International Strategies and Worldwide Structure g Matches between Cooperative Strategies and Network Structures Implementing Business-Level Cooperative Strategies Implementing Corporate-Level Cooperative Strategies Implementing International Cooperative Strategies 372 Summary 373 Key Terms 373 Review Questions 374 Mini-Case 374 Notes : Strategie Leadership 382 Opening Case: Can You Follow an leon and Succeed? Apple and Tim Cook After Steve Jobs Strategie Leadership and Style The Role of Top-Level Managers a Top Management Teams Managerial Succession 391 Strategie Focus: Trial by Fire: CEO Succession at General Motors Key Strategie Leadership Actions a Determining Strategie Direction b Effectively Managing the Firm's Resource Portfolio 397 Strategie Focus: All the Ways You Can Fail! c Sustaining an Effective Organizationa! Culture d Emphasizing Ethical Practices e Establishing Balanced Organizational Controls 403 Summary 406 Key Terms 407 Review Questions 407 Mini-Case 407 Notes : Strategie Entrepreneurship 416 Opening Case: Entrepreneurial Fervorand Innovation Drive Disney s Success Entrepreneurship and Entrepreneurial Opportunities Innovation Entrepreneurs International Entrepreneurship Internal Innovation a Incremental and Novel Innovation 423 Strategie Focus: Innovation Can Be Quirky b Autonomous Strategie Behavior c Induced Strategie Behavior Implementing Internal Innovations a Cross-Functional Product Development Teams b Facilitating Integration and Innovation c Creating Value from Internal Innovation Innovation through Cooperative Strategies 430

9 xiv 13-8 Innovation through Acquisitions 431 Strategie Focus: What Explains the Lack of Innovation at American Express? Is It Hubris, Inertia, or LackofCapability? Creating Value through Strategie Entrepreneurship 433 Summary 435 Key Terms 436 Review Questions 436 Mini-Case 436 Notes 437 Part 4: Preparing an Effective Case Analysis C-1 Name Index 1-1 Company Index 1-20 Subject Index 1-23