Preface ix

PART I : INTRODUCTION TO STRATEGIC

MANAGEMENT 1

Chapter 1 Basic Concepts of Strategic Management 1

1.1 The Study of Strategic Management 2

1.2 Initiation of Strategy:Triggering Events 4

1.3 Basic Model of Strategic Management 5

1.4 Strategic Decision Making 11

Chapter 2 Corporate Governance and Social Responsibility 17

2.1 Corporate Governance: Role of the Board of Directors 18

2.2 Corporate Governance: Role of Top Management 24

2.3 Social Responsibilities and Ethics in Strategic Decision Making 26

PART I I : SCANNING THE ENVIRONMENT 32

Chapter 3 Environmental Scanning and Industry Analysis 32

3.1 Environmental Scanning 33

3.2 Industry Analysis: Analyzing the Task Environment 38

3.3 Competitive Intelligence 48

3.4 Forecasting 49

3.5 Synthesis of External FactorsEFAS 51

Chapter 4 Internal Scanning: Organizational Analysis 55

4.1 Resource-Based View of the Firm 55

4.2 Business Models 58

4.3 Value-Chain Analysis 59

4.4 Scanning Internal Resources and Capabilities 61

4.5 Synthesis of Internal FactorsIFAS 72

PART I I I : STRATEGY FORMULATION 76

Chapter 5 Strategy Formulation: Situation Analysis

and Business Strategy 76

5.1 Situational (SWOT) Analysis 76

5.2 Review of Mission and Objectives 80

5.3 Generating Alternative Strategies Using a TOWS Matrix 81

5.4 Business Strategies 82

Chapter 6 Strategy Formulation: Corporate Strategy 93

6.1 Corporate Strategy 94

6.2 Directional Strategy 94

6.3 Portfolio Analysis 101

6.4 Corporate Parenting 105

Chapter 7 Strategy Formulation: Functional Strategy and

Strategic Choice 109

7.1 Functional Strategy 110

7.2 The Sourcing Decision: Location of Functions and Competencies 114

7.3 Strategies to Avoid 114

7.4 Strategic Choice: Selection of the Best Strategy 115

7.5 Development of Policies 120PART IV: STRATEGY IMPLEMENTATION

AND CONTROL 122

Chapter 8 Strategy Implementation: Organizing for Action 1228.1 What Is Strategy Implementation? 123

8.2 Who Implements Strategy? 123

8.3 What Must Be Done? 124

8.4 How Is Strategy to Be Implemented? Organizing for Action 125

8.5 International Issues in Strategy Implementation 136

Chapter 9 Strategy Implementation: Staffing and Leading 138

9.1 Staffing 139

9.2 Leading 143Chapter

10 Evaluation and Control 151

10.1 Evaluation and Control in Strategic Management 152

10.2 Measuring Performance 153

10.3 Strategic Information Systems 160

10.4 Guidelines for Proper Control 161

10.5 Strategic Incentive Management 161

PART V: INTRODUCTION TO CASE

ANALYSIS 165

Chapter 11 Suggestions for Case Analysis 16511.1 The Case Method 165

11.2 Frameworks for Case Analysis 165

11.3 Researching the Case Situation 166

11.4 Financial Analysis: A Place to Begin 166

11.5 Using the Strategic Audit in Case Analysis 172

Appendix 11.A Suggested Techniques for Case Analysis

and Presentation 174

A. Case Analysis 174

B. Written Report 175

C. Oral Presentation by Teams 175

Appendix 11.B Resources for Case Research 177

A. Company Information 177

B. Economic Information 177

C. Industry Information 177

D. Directory and Index Information on Companies and Industries 178

E. Ratio Analysis Information 178

F. Online Information 178

Appendix 11.C Strategic Audit of a Corporation 179

I. Current Situation 179

II. Corporate Governance 179

III. External Environment: Opportunities and Threats (SWOT) 180

IV. Internal Environment: Strengths and Weaknesses (SWOT) 180

V. Analysis of Strategic Factors (SWOT) 184

VI. Strategic Alternatives and Recommended Strategy 184

VII. Implementation 184

VIII. Evaluation and Control 185