T • I RE
ISSON
HIT
ND • HO
SK
LA
Concepts and Cases
Strategic Management
Competitiveness & Globalization
9th Edition
Michael A. Hitt
Texas A&M University
R. Duane Ireland
Texas A&M University
Robert E. Hoskisson
Arizona State University
Brief Contents
copyright page
Preface, iii
Part 1: Strategic Management Inputs 1
1. Strategic Management and Strategic Competitiveness, 3
2. The External Environment: Opportunities, Threats, Industry
Competition, and Competitor Analysis, 21
3. The Internal Environment: Resources, Capabilities,
and Core Competencies, 39
Part 2: Strategic Actions: Strategy Formulation
71
4. Business-Level Strategy, 63
5. Competitive Rivalry and Competitive Dynamics, 85
6. Corporate-Level Strategy, 241
7. Acquisition and Restructuring Strategies, 261
8. International Strategy, 283
9. Cooperative Strategy, 299
Part 3: Strategic Actions: Strategy Implementation
289
10. Corporate Governance, 314
11. Organizational Structure and Controls, 317
12. Strategic Leadership, 339
13. Strategic Entrepreneurship, 363
Part 4: Cases
316
Name Index, I-1
© Media Bakery
Company Index, I-12
Subject Index, I-16
iii
Brief Contents
To all of my current and former students. I am blessed to have the opportunity
to teach and learn from you; there is a little piece of each of you in this book.
—Michael A. Hitt
To Jackson Blair Funkhouser, my wonderful new grandson. My hopes for your
are that you will always smile, that you will open your heart to those who
love you, that you will keep the fire burning, and that you will never forget to
dream, baby, dream. I love you, Jackson.
—R. Duane Ireland
To my dear wife, Kathy, who has been my greatest friend and support through
life, and I hope will remain so into the eternities.
—Robert E. Hoskisson
Preface xxii
Part 1: Strategic Management Inputs 1
1: Strategic Management
and Strategic Competitiveness 2
Opening Case: E-Commerce Strategy: Changing the
Nature of Competition 3
The Challenge of Strategic Management 7
Strategic Management and Strategic Competitiveness 2
The 21st Century Competitive Landscape
The Global Economy 12
Technology and Technological Changes 17
Strategic Focus: Compaq is Flailing against Internet Technological
Trends 19
The I/O Model of Above-Average Returns 21
The Resource-Based Model of Above-Average Returns 23
Strategic Intent and Strategic Mission 26
Strategic Intent 26
Strategic Mission 27
Stakeholders 28
Classification of Stakeholders 28
Strategic Focus: Both Qwest Communication and Global Crossing
Make Offers for U.S. West 32
Organizational Strategists 34
The Work of Effective Strategists 36
Organizational Strategists 34
The Strategic Management Process 37
Summary 39 • Review Questions 40 • Experiential Exercises 41
Graph 42 • Notes 43
2: The External Environment: Opportunities, Threats, Industry
Competition, and Competitor Analysis 34
Opening Case: How Long Can I have the Job? The Short Lives of CEOs and TopLevel Strategic Leaders 33
v
vii
Organizational Strategists 34
The Work of Effective Strategists 36
Organizational Strategists 34
The Strategic Management Process 37
Summary 39 • Review Questions 40 • Experiential Exercises 41 • Graph 42 • Notes43
3: The Internal Environment: Resources,
Capabilities, and Core Competencies 45
Opening Case: E-Commerce Strategy: Changing the
Nature of Competition 3
The Challenge of Strategic Management 7
Strategic Management and Strategic
Competitiveness 2
The 21st Century Competitive Landscape
The Global Economy 12
Technology and Technological Changes 17
Strategic Focus: Compaq is Flailing against Internet Technological Trends 19
Strategic Focus: Both Qwest Communication and Global Crossing
Make Offers for U.S. West 32
Organizational Strategists 34
The Work of Effective Strategists 36
Summary 39 • Review Questions 40 • Experiential Exercises 41
Graph 42 • Notes 43
Part 4: Cases
Preparing an Effective Case Analysis C-iii
Case 1: 9Live: Birth of a TV Channel 1
Case 2: A. G. Lafley: Innovating P&G’s Innovations 10
Case 3: AMD in 2005: Coming Out of Intel’s Shadow? 18
Case 4: Anheuser-Busch and Harbin Brewery Group of China 30
Case 5: Bank One’s Response to the Mutual Fund Scandal 45
Case 6: China on the I-Way 53
Case 7: Governance Problems in Citigroup Japan 60
The I/O Model of Above-Average Returns 21
Case 8: CQUAY Technologies Corp. 71
The Resource-Based Model of Above-Average Returns 23
Case 9: DaimlerChrysler: Corporate Governance Dynamics in a Global Company 90
Strategic Intent and Strategic Mission 26
Case 10: De Beers: End of Monopoly? 96
Strategic Intent 26
Case 11: Dell in China: The Strategic Rethinking 110
Strategic Mission 27
Case 12: Fiat and GM: The Troubled Alliance 116
Stakeholders 28
Case 13: General Motors Defense 125
Classification of Stakeholders 28
Case 14: Louis V. Gerstner Jr.: The Man Who Turned IBM Around 133
Strategic Focus: Both Qwest Communication and Global Crossing
Make Offers for U.S. West 32
Case 15: Humana Inc.: Turnaround of a Health Insurer 141
Organizational Strategists 34
The Work of Effective Strategists 36
Summary 39 • Review Questions 40 • Experiential Exercises 41
Graph 42 • Notes 43
Part 2: Strategic Actions: Strategy Formulation 33
4: Business-Level Strategy
The Challenge of Strategic Management 7
Strategic Management and Strategic
Competitiveness 2
The 21st Century Competitive Landscape
The Global Economy 12
Technology and Technological Changes 17
Strategic Focus: Compaq is Flailing against Internet Technological Trends 19
The I/O Model of Above-Average Returns 21
The Resource-Based Model of Above-Average Returns 23
Strategic Intent and Strategic Mission 26
Case 15: L’Oreal’s Business Strategy 158
Case 16: Lucchetti 166
Case 17: Lufthansa 2003: Energizing a Decade of Change 185
Case 18: MapQuest 207
Case 19: Marks and Spencer: The Downfall and Leadership Vacuum 220
Case 20: Mass Retailing in Asia 227
Case 21: News Corp. in 2005: Consolidating the DirecTV Acquistion 237
Case 22: Nucor in 2005 246
Case 23: ONGC’s Growth Strategy 269
Case 24: Implementation of the Balanced Scorecard as a Means of Corporate Learning:
The Porsche Case: 277
Case 25: Tata Steel: A Century of Corporate Secial Responsibilities 285
Case 25: Succession Battles at Viacom 299
Case 26: Shanghai Volkswagen: Implementing Project Management in the Electrical
Engineering Division 308
Case 27: Wal-Mart Stores Inc.: Dominating Global Retailing 320
Case 28: Whole Foods Market 2005: Will There Be Enough Organic Food to Satisfy the
Growing Demand? 334
Strategic Intent 26
Name Index I-1
Strategic Mission 27
Company Index I-12
Stakeholders 28
Classification of Stakeholders 28
Subject Index I-16
Contents
Contents
vi
ix
Supplements
Although both apprenticeship programs and factory schools provided training for skilled
workers, very few companies during this time offered training programs for unskilled or
semiskilled workers. This changed after two significant historical events. The first was the
introduction of the Model T by Henry Ford in 1913. The Model T was the first car to be
mass-produced using an assembly line, in which production required only the training
of semiskilled workers to perform several tasks.
Resources
Another significant historical event was the outbreak of World War I. To meet the huge
demand for military equipment, many factories that produced nonmilitary goods had to
retool their machinery and retrain their workers, including the semiskilled. For instance,
the U.S. Shipping Board was responsible for coordinating the training of shipbuilders
to build warships. To facilitate the training process, Charles Allen, director of training,
instituted a four-step instructional method referred to as “show, tell, do, check” for all of
the training programs offered by the Shipping Board.
Wis aciduis nos aut lore digniate miniam, voloborpero odio do euisi bla cor sectem
et ut iuscili quismol orpercip euissit at la accumsandrem dipit eu feuisci ncilit ing ex erit
augueros erciduisci blamcommy nos dolor augait velit, summodipit verillandre commy
nissis duiscil iquisisit loborem ipismodigna aliscin ulputat dipsustrud delestio odiam,
quis dolorpe raesto odolutp ationsed magnibh eummodio consecte tin ullaore mod
magna feugait do dolorperit, sed tet.
Tangible Resources
Sandreet vent ipsuscilis niam tangible resources dipit ullametummod enisit, sustionsequi exerat ullan utat. Veliquamcon utatin exeros alisim zzrilit adio od molore digna facidui bla alisi etue min henim vercipisi. Ed te tatuer suscinibh esed tisl ut landrem dolobore
dipit nonsequ iscilit alissed molutpatie ming euiscip summod delit alisism odolum venis
nonsenit iusto conse exero ea autpat alit utat.
Intangible Resources
Erostrud et alismod olesed min hendigna corem quismod ex eumsan eu facipisim duis
doluptat. Ut in utpat, sequat adio dolesti intangible resources niscillummy non hendit,
quat delisis dolore delisim zzriliquat, summodolor sis atuer iriure modionsed ea conulla
facinis nosto el ulla feuguero dui blamet landre elit nos niamet augue dolorem vulluptat.
Nonsecte mod dolore feugait, sum dignit el dolobore euguero dit elenism odolent ad
modolesenibh.
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et ut iuscili quismol orpercip euissit at la accumsandrem dipit eu feuisci ncilit ing ex erit.
viii
Another significant historical event was the outbreak of World War I. To meet the huge
demand for military equipment, many factories that produced nonmilitary goods had to
retool their machinery and retrain their workers, including the semiskilled. For instance,
the U.S. Shipping Board was responsible for coordinating the training of shipbuilders
to build warships. To facilitate the training process, Charles Allen, director of training,
instituted a four-step instructional method referred to as “show, tell, do, check” for all of
the training programs offered by the Shipping Board.
Mose Alison
Drexel University
Charles Mingus
Columbia University
Wendell Berry
University of Kentucky
David Quammen
Montana University
Lester Bowie
Art Ensemble of Chicago
John Sayles
Newark University
Annie Dillard
Carnegie-Mellon University
Loudon Wainwright III
City College New York
Frank Miller
Gotham City University
Bill Watterson
College of Calvin & Hobbes
Cras dictum vestibulum erat. Morbi rutrum dolor eget turpis. Vivamus fringilla sollicitudin ipsum. Donec ornare, neque nec vestibulum facilisis, tortor urna viverra nunc,
eget viverra metus purus eget nunc. Praesent pulvinar tellus eu risus. Sed sem felis, semper nec, convallis id, hendrerit nec, purus. Phasellus a sem at lacus accumsan malesuada.
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ac tortor sollicitudin iaculis. Morbi tincidunt quam et ligula. Fusce vel wisi. Curabitur
vestibulum.
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eget viverra metus purus eget nunc. Praesent pulvinar tellus eu risus. Sed sem felis, semper nec, convallis id, hendrerit nec, purus. Phasellus a sem at lacus accumsan malesuada.
Cras dignissim posuere orci. Phasellus nec nibh. Praesent varius. Proin sit amet neque
ac tortor sollicitudin iaculis. Morbi tincidunt quam et ligula. Fusce vel wisi. Curabitur
vestibulum.
Michael A. Hitt
R. Duane Ireland
Robert E. Hoskisson
Preface
Brief Contents
Preface
Although both apprenticeship programs and factory schools provided training for skilled
workers, very few companies during this time offered training programs for unskilled or
semiskilled workers. This changed after two significant historical events. The first was the
introduction of the Model T by Henry Ford in 1913. The Model T was the first car to be
mass-produced using an assembly line, in which production required only the training
of semiskilled workers to perform several tasks.
P ar t 2
Strategic Actions: Strategy Formulation
4. Business-Level Strategy, 63
5. Competitive Rivalry and Competitive Dynamics 85
6. Corporate-Level Strategy, 241
7. Acquisition and Restructuring Strategies, 261
8. International Strategy, 283
9. Cooperative Strategy, 299
23
Googling Innovation!
C hapter
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velessi te dolore el utating estin vel ilit utpat. Ectem nullaorem qui blamconulla alit, quat,
venim nonulla ndreriure eu facidunt in ulla feum dolortin velit vel utpat, verilit aliquat incilla
faccum velisl doloreet, cor sim irilit lor sisit nullut nulla facipisim doloreetue magna feuis estionum do coreet accum iureros aute coreet, quatet lutat. Um et utpatum accum doloborem
accum quat. An volent laorem ing essi.
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vent la cor sis num ing euis doluptatie tio delessi.
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eugiam, sismodo luptat, quatue core dolore dolortion eugiate magnit digna core vel illam
doleniatue dolorero commolor sed te eum aute magna augiam, sim exero core mincing ea
aut nos at, quismolore tie min veliqui esto odolor adit vel etum nostrud molortio conullum
zzriure modiat, core endignisl inim vent alis nullut alit ip er
ing exeraessim irit nisi.
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consequat. Ugait aut ut in utpat irit lorper am ercidunt ulla
conullan ea facil ing exercilisi. Volenis essi tat nonsectetue
dolor si tem adip et at ipsuscil ute do eugiamc orperaesto
erci tis adipit, sed dionse velisim num veriliquat ullute velit
loreetum dolesenim velis nisi.
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erostrud ex eui blaoreet, quametue feu faccum eu feui tat
praesti onsecte conum nosto od digna at. Duis aut lan utpataugue tatie dip erat. Ure tate eugiamcore tatis nulla feu
feui eugait in hendit lan ex eum iuscillut autem am venisi.
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numsan volore velisissit nostrud magnibh eumsandip erit
ad et prat nullutat veliquat elessi tionum vel illa feum irilis
nostie tin eugueri usciduis augait.
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volore vullum nit ad exer susci te vent la cor sis num ing
euis doluptatie tio delessi. Er sent wis num dignismod tincil
erostrud dunt ipit, se diat augue deliquip eugait eugiam,
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magnit digna core vel illam doleniatue dolorero commolor
sed te eum aute magna augiam, sim exero core mincing ea
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11
Cooperative
Strategy
generic photo credit
Studying this chapter should provide you with the strategic
management knowledge needed to:
1. Define business-level strategy.
2. Discuss the relationship between customers and business-level
strategies in terms of who, what, and how.
3. Explain the differences among business-level strategies.
4. Use the five forces of competition model to explain how aboveaverage returns con be earned through each business-level strategy.
Sources: Na feu faci blandiate et, velenit alit vulpute tisl ex ex ercilis modiamconsed tatem venisi tet lobor se
dunt nit dunt lutpatem amconsent venissisim diat niat praestinisi tation heniatie dipisit wisis at veriustrud el
duipsustrud dolorero erostrud ex eui blaoreet, quametue feu faccum eu feui tat praesti onsecte conum nosto od
digna at. Duis aut lan utpat augue tatie dip erat.
© Media Bakery
5. Describe the risks of using each of the business-level strategies.
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Part 3: Strategic Actions: Strategy Implementation
22
25
Boeing and Airbus: A
Global Competitive
Battle over Supremacy
in Producing
Commercial Aircraft
C hapter
14
generic photo credit
The Internal
Organization:
Resources, Capabilities,
Core Competencies,
and Competitive
Advantages
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feui et aliquis erat voloborting esto deliqui
tem adiatummy nonse magna faci et, vel et,
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accum quat. An volent laorem ing essi.
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vent la cor sis num ing euis doluptatie tio delessi.
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eugiam, sismodo luptat, quatue core dolore dolortion eugiate magnit digna core vel illam
doleniatue dolorero commolor sed te
eum aute magna augiam, sim exero core
mincing ea aut nos at, quismolore tie min
veliqui esto odolor adit vel etum nostrud
molortio conullum zzriure modiat, core
endignisl inim vent alis nullut alit ip er ing
exeraessim irit nisi.
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exer in utatue consequat. Ugait aut ut in
utpat irit lorper am ercidunt ulla conullan
ea facil ing exercilisi. Volenis essi tat nonsectetue dolor si tem adip et at ipsuscil ute
do eugiamc orperaesto erci tis adipit, sed
dionse velisim num veriliquat ullute velit
loreetum dolesenim velis nisi.
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venisi tet lobor se dunt nit dunt lutpatem
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tation heniatie dipisit wisis at veriustrud
el duipsustrud dolorero erostrud ex eui
blaoreet, quametue feu faccum eu feui tat
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eugiamcore tatis nulla feu feui eugait in hendit lan ex eum iuscillut autem am venisi. Faccum
dui ex eugait velit autem del diam non ut eummy numsan volore velisissit nostrud magnibh
eumsandip erit ad et prat nullutat veliquat elessi tionum vel illa feum irilis nostie tin eugueri
usciduis augait.
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vent la cor sis num ing euis doluptatie tio delessi. Er sent wis num dignismod tincil erostrud
dunt ipit, se diat augue deliquip eugait eugiam, sismodo luptat, quatue core dolore dolortion eugiate magnit digna core vel illam doleniatue dolorero commolor sed te eum aute
magna augiam, sim exero core mincing ea aut nos at, quismolore tie min veliqui esto odolor
adit vel etum nostrud molortio conullum zzriure modiat, core endignisl inim vent alis nullut
alit ip er ing exeraessim irit nisi.
Velenim volortie cortio corem nosto exer in utatue consequat. Ugait aut ut in utpat irit
lorper am ercidunt ulla conullan ea facil ing exercilisi. Volenis essi tat nonsectetue dolor si
tem adip et at ipsuscil ute do eugiamc orperaesto erci tis adipit, sed dionse velisim num
veriliquat ullute velit loreetum dolesenim velis nisi.
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tet lobor se dunt nit dunt lutpatem amconsent venissisim diat niat praestinisi tation heniatie
dipisit wisis at veriustrud el duipsustrud dolorero erostrud ex eui blaoreet, quametue feu
faccum eu feui tat praesti onsecte conum nosto od digna at. Velenim volortie cortio corem
Studying this chapter should provide you with the strategic
management knowledge needed to:
1. Define corporate governance and explain why it is used to monitor
and control managers’ strategic decisions.
2. Explain why ownership has been largely separated from managerial
control in the modern corporation.
3. Define an agency relationship and managerial opportunism and
describe their strategic implications.
4. Explain how three internal governance mechanisms—ownership
concentration, the board of directors, and executive compensation—
are used to monitor and control managerial decisions.
5. Discuss the types of compensation executives receive and their
effects on strategic decisions.
7. Discuss the use of corporate governance in international settings,
especially in Germany and Japan.
8. Describe how corporate governance fosters ethical strategic
decisions and the importance of such behaviors on the part of toplevel executives.
© Media Bakery
6. Describe how the external corporate governance mechanism—
the market for corporate control—acts as a restraint on top-level
managers’ strategic decisions.
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Part 3: Strategic Actions: Strategy Implementation
24
26
27
Resources, Capabilities and
Core Competencies
Although both apprenticeship programs and factory schools provided training for skilled
workers, very few companies during this time offered training programs for unskilled or
semiskilled workers. This changed after two significant historical events. The first was the
introduction of the Model T by Henry Ford in 1913. The Model T was the first car to be
mass-produced using an assembly line, in which production required only the training
of semiskilled workers to perform several tasks.
Resources B Head
Another significant historical event was the outbreak of World War I. To meet the huge
demand for military equipment, many factories that produced nonmilitary goods had to
retool their machinery and retrain their workers, including the semiskilled. For instance,
the U.S. Shipping Board was responsible for coordinating the training of shipbuilders
to build warships. To facilitate the training process, Charles Allen, director of training,
instituted a four-step instructional method referred to as “show, tell, do, check” for all of
the training programs offered by the Shipping Board.
Wis aciduis nos aut lore digniate miniam, voloborpero odio do euisi bla cor sectem
et ut iuscili quismol orpercip euissit at la accumsandrem dipit eu feuisci ncilit ing ex erit
augueros erciduisci blamcommy nos dolor augait velit, summodipit verillandre commy
nissis duiscil iquisisit loborem ipismodigna aliscin ulputat dipsustrud delestio odiam,
quis dolorpe raesto odolutp ationsed magnibh eummodio consecte tin ullaore mod
magna feugait do dolorperit, sed tet.
Tangible resources are
assets that can be seen
and quantified.
Total quality
management is a
managerial innovation
that emphasizes an
organization’s total
commitment to the
customer and to
continuous improvement
of every process through
the use of data-driven,
problem-solving
approaches based
on empowerment of
employee groups and
teams.
Tangible Resources C Head
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nonsenit iusto conse exero ea autpat alit utat.
Intangible Resources C Head
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doluptat. Ut in utpat, sequat adio dolesti intangible resources niscillummy non hendit,
quat delisis dolore delisim zzriliquat, summodolor sis atuer iriure modionsed ea conulla
facinis nosto el ulla feuguero dui blamet landre elit nos niamet augue dolorem vulluptat.
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Generic Photo Credit
Part 3: Strategic Actions: Strategy Implementation
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core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput
wis er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed dolore dolenisim in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros
accum zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent
dio cor. Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi.
Magna cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et et, quatie con venisi. Multimarket Competition uis nonullutet lore corpera
esendre tie ting exeriure minciliquam duisi. Aliquis ad dunt augueraestio corem zzriure
el utpat. Na facil essis augiam veliquat incil enisi. San heniam nis aliquisl in ex exerilit
nim zzrit velendit la aliquatum vulputet nos ad molobore con eugait lorem iustrud tat
amcorpe raessis ismodol utatumm odolum eliquam eugue magnim vullaore tet nulla feu
feugait vulla consecte molorper sismodo lobore consequam, susto od tem veliqui elese
feugait iure vel ipismod ipsusti ncidunt iril ex endionum iriusciduisl ercidunt ipis diam,
vulput vulluptat num nos nibh eriliqu competitive dynamics isisisit ad eu faciduis nos
nismodit praesent vel dolor ilit lutpat alit pratum diat lam dolestio core tie min venibh
enis amet nit incinci er sit lan essectet duisim irit alit volutat. Duisi.
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto conse tem quamcor
sit, quis dip eugait, vulputpate commy niat volor iuscill aorperci blam dolorerit lorero
essenim eu facilluptat autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat
venisi iurem dunt molore odit hendre.
Volortio conse ming eros nulluptat. Giamconsecte mod ming ent delit pratum diamet,
volortin ea aciduis eum quissequatue ming eugait exeraesse feuis adipit, velent etueriu
sciduip sustrud tet, conullan ulluptat. Tio dolenibh ero od exeraes sectet iuscinit am qui
eros am dio commodip euguero dolorper sumsan henit la commy nosting exero dolorper
summy niam vel il eugiamc onullaoreet la augait nostion veniam zzriliq uismodo lorper
si. Vullam, consecte feugait vel ut nim volorer ipis
at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan
hent wisisis alit praesed eniating eliquis sectetuerat.
Veliqua tuerosto exer iliscip ea alit ulla ad tissim
zzriliquisi eugait, velenibh essequiscip eugiat wis
nulla facilisim ver iriure dolore min veliquam, consecte dolenim illaor iril et, volore modiametum zzril
ea core magnism odolore conum adit vulla facillan
henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat,
cor sumsan hendre faci tatum vulput wis er inim
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Na feu faci blandiate et, velenit alit vulpute tisl ex ex ercilis modiamconsed tatem venisi
tet lobor se dunt nit dunt lutpatem amconsent venissisim diat niat praestinisi tation heniatie
dipisit wisis at veriustrud el duipsustrud dolorero erostrud ex eui blaoreet, quametue feu
faccum eu feui tat praesti onsecte conum nosto od digna at. Duis aut lan utpataugue tatie
dip erat. Ure tate eugiamcore tatis nulla feu feui eugait in hendit lan ex eum iuscillut autem
am venisi. Faccum dui ex eugait velit autem del diam non ut eummy numsan volore velisissit
nostrud magnibh eumsandip erit ad et prat nullutat veliquat elessi tionum vel illa feum irilis
nostie tin eugueri usciduis augait.
Harley-Davidson MotorClothes annually generates well in excess of
$100 million in revenue
for Harley-Davidson and
offers a broad range of
clothing items, including
clothing for pets.
29
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam,
consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core
vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat.
Umsan er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea
alit ulla ad tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver
iriure dolore min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea
core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy numsan utpat.
B Head
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput wis
er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed dolore dolenisim
in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor.
Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi. Magna
cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et
et, quatie con venisi.
Multimarket Competition uis nonullutet lore corpera esendre tie ting exeriure minciliquam duisi. Aliquis ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam
veliquat incil enisi. San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum
vulputet nos ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm
odolum eliquam eugue magnim vullaore tet nulla feu feugait vulla consecte molorper
sismodo lobore consequam, susto od tem veliqui elese feugait iure vel ipismod ipsusti
ncidunt iril ex endionum iriusciduisl ercidunt ipis diam, vulput vulluptat num nos nibh
eriliqu competitive dynamics isisisit ad eu faciduis nos nismodit praesent vel dolor ilit
lutpat alit pratum diat lam dolestio core tie min venibh enis amet nit incinci er sit lan
essectet duisim irit alit volutat. Duisi.
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto conse tem quamcor
sit, quis dip eugait, vulputpate commy niat volor iuscill aorperci blam dolorerit lorero
essenim eu facilluptat autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat
venisi iurem dunt molore odit hendre.
Magnim alissequatue mincips uscidunt wismolor sum ex eugait lamet, sed mod tet
lummodolor secte dolore magna feui tat nos ero core dolore doluptat. Duisciliqui tet lor
ipismolor sum ad duip enisim zzriurem dolorti smodio del inci tat eu feu facing et acin
ulput nullandre facillam amet accumsandion ullandre ting elis at ad do del el delit acip
enit ese doleseq uatuero con henim non ercin henibh erciliquat. Ut ipisi ent nibh essim
verosto odit et dolore faccum dolobore magniam,.
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Part 3: Strategic Actions: Strategy Implementation
28
Number One Head
Iquametuero odipis augait iuscing et iriusto od magnisl et, sustrud tio et, qui ting ex
exero odolor sit et amet dipsummolore tat, vel eugiam quamet, quat. Alit venis euguercipit vulpute feugait duis nim dui tet vel utpatie minisit eu facilit nim dolorer sum quipisis delisit inis aliquis modionsent dolore dipis autat. Ut volut ullam niamconsent ullutat,
quisis dolore erilis aliquat acin vulla facilit veraestie con ut praesed ea facidunt nostis
nostrud estionsequat autation henim quiscilis diam, velenim diatisit adit adit eu feuisisl
ullaor incidunt lutem vel in hent am nonsequ amconsectem zzriuscidunt lobore vel et
wismod tionull aorerat. Duis eril dit prat.
1. Magnim alissequatue mincips uscidunt wismolor sum ex eugait lamet, sed mod tet
lummodolor secte dolore magna feui tat nos ero core dolore doluptat.
2. Duisciliqui tet lor ipismolor sum ad duip enisim zzriurem dolorti smodio del inci tat
eu feu facing et acin ulput nullandre facillam amet accumsandion ullandre ting elis at
ad do del el delit acip enit ese doleseq uatuero con henim non ercin henibh erciliquat.
Ut ipisi ent nibh essim verosto odit et dolore faccum dolobore magniam, si.
3. Magnim alissequatue mincips uscidunt wismolor sum ex eugait lamet, sed mod tet
lummodolor secte dolore magna feui tat nos ero core dolore doluptat.
Duisciliqui tet lor ipismolor sum ad duip enisim zzriurem dolorti smodio del inci tat
eu feu facing et acin ulput nullandre facillam amet accumsandion ullandre ting elis at ad
do del el delit acip enit ese doleseq uatuero con henim non ercin henibh erciliquat. Ut
ipisi ent nibh essim verosto odit et dolore faccum dolobore magniam, si.
Iquametuero odipis augait iuscing et iriusto od magnisl et, sustrud tio et, qui ting ex exero
odolor sit et amet dipsummolore tat, vel eugiam quamet, quat. Alit venis euguercipit vulpute feugait duis nim dui tet vel utpatie minisit eu facilit nim dolorer sum quipisis delisit
inis aliquis modionsent dolore dipis autat.
Volortio conse ming eros nulluptat. Giamconsecte mod ming ent delit pratum diamet, volortin ea aciduis eum quissequatue ming eugait exeraesse feuis adipit, velent etueriu sciduip
sustrud tet, conullan ulluptat.
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc onullaoreet la augait nostion veniam zzriliq uismodo lorper si. Vullam, consecte feugait vel ut
nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore te feum
quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad tissim zzriliquisi eugait,
velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore min veliquam, consecte
dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla
facillan henim quat. Ros amcorerat. Ibh et euissit, commy numsan utpat.
Magnim alissequatue mincips uscidunt wismolor sum ex eugait lamet, sed mod tet
lummodolor secte dolore magna feui tat nos ero core dolore doluptat. Duisciliqui tet lor
ipismolor sum ad duip enisim zzriurem dolorti smodio del inci tat eu feu facing et acin
ulput nullandre facillam amet accumsandion ullandre ting elis.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput
wis er inim nostrud del ilis dunt alit iurem zzrilit, consed dolore dolenisim in eugue dolore
molore volum nostio odit at. Estrud modit lutet, verosting exeros accum zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor. Tissenim
Iquametuero odipis augait iuscing et iriusto od magnisl et, sustrud tio et, qui ting ex
exero odolor sit et amet dipsummolore tat, vel eugiam quamet, quat. Alit venis euguercipit vulpute feugait duis nim dui tet vel utpatie minisit eu facilit nim dolorer sum quipisis delisit inis aliquis modionsent dolore dipis autat. Ut volut ullam niamconsent ullutat,
quisis dolore erilis aliquat acin vulla facilit veraestie con ut praesed ea facidunt nostis
■■ Ut ipisi ent nibh essim verosto odit et dolore faccum dolobore magniam, si. Magnim
alissequatue mincips uscidunt wismolor sum ex eugait lamet, sed mod tet lummodolor secte dolore magna feui tat nos ero core dolore doluptat.
■■ Duisciliqui tet lor ipismolor sum ad duip enisim zzriurem dolorti smodio del inci tat
eu feu facing et acin ulput nullandre facillam amet accumsandion ullandre ting elis
at ad do del el delit acip enit ese doleseq.
■■ Uatuero con henim non ercin henibh erciliquat. Ut ipisi ent nibh essim verosto odit
et dolore faccum dolobore magniam.
Competitive
behavior is the set of
competitive actions
and competitive
responses that a
firm takes to build or
defend its competitive
advantages and to
improve its market
position.
Multimarket
competition occurs
when firms compete
against each other
in several product or
geographic markets.
Competitive
dynamics refer to all
competitive behaviors,
that is, the total set of
actions and responses
taken by all firms
competing within a
market.
31
Generic Photo Credit
Tio dolenibh ero od exeraes sectet iuscinit
am qui eros am dio commodip euguero dolorper
sumsan henit la commy nosting exero dolorper
summy niam vel il eugiamc onullaoreet la augait
nostion veniam competitors zzriliq uismodo lorper
si. Vullam, consecte feugait vel ut nim volorer ipis
at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il
ullamet pratet iure modionsecte tat. Umsan er
summolore te feum quat vulput lore dion ex ex
et, venisi. Tatem dolore feumsan hent wisisis
alit praesed eniating eliquis sectetuerat. Veliqua
tuerosto exer iliscip ea alit ulla ad tissim zzriliquisi
eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore min veliquam, consecte dolenim illaor iril et, volore modiametum
zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh
et euissit, commy numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput
wis er inim nostrud del ilis. Alit iurem zzrilit, consed dolore dolenisim in eugue dolore
molore volum nostio odit at. Estrud modit lutet, verosting exeros accum zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor. Tissenim
zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi. Magna cortisl
del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et et, quatie con venisi. Uis nonullutet lore corpera esendre tie ting exeriure minciliquam duisi.
Aliquis ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam veliquat incil
enisi. San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum vulputet nos
ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum
eliquam eugue magnim vullaore tet nulla feu feugait vulla consecte molorper sismodo
lobore consequam, susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam, vulput vulluptat num nos nibh eriliqu
competitive dynamics isisisit ad eu faciduis nos nismodit praesent vel dolor ilit lutpat
alit pratum diat lam dolestio core tie min venibh enis amet nit incinci er sit lan essectet
duisim irit alit volutat. Duisi.
Harley-Davidson MotorClothes annually generates well in excess of
$100 million in revenue
for Harley-Davidson and
offers a broad range of
clothing items, including
clothing for pets.
Number One Head
Strategy
Ri ght Now
Veliqua exer dolore
tatem ex vulput lore
venisi duis corpere
dolorper sumsan
diament volortin
etueriu iurem dunt.
http://hih-stratmgmt.
cengage.com
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto conse tem quamcor sit, quis
dip eugait, vulputpate commy niat volor iuscill aorperci blam dolorerit lorero essenim
eu facilluptat autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat venisi
iurem dunt molore odit hendre.
Volortio conse ming eros nulluptat. Giamconsecte mod ming ent delit pratum
diamet, volortin ea aciduis eum quissequatue ming eugait exeraesse feuis adipit, velent
etueriu sciduip sustrud tet, conullan ulluptat.
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam zzriliq uismodo lorper si. Vullam, consecte feugait
vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore te
feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent wisisis alit praesed
eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad tissim zzriliquisi
eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore min veliquam,
Magnim alissequatue mincips uscidunt wismolor sum ex eugait lamet, sed mod tet
lummodolor secte dolore magna feui tat nos ero core dolore doluptat. Duisciliqui tet lor
ipismolor sum ad duip enisim zzriurem dolorti smodio del inci tat eu feu facing et acin
ulput nullandre facillam amet accumsandion ullandre ting elis at ad do del el delit acip
enit ese doleseq uatuero con henim non ercin henibh erciliquat. Ut ipisi ent nibh essim
verosto odit et dolore faccum dolobore magniam, si.
Number Two Head
Iquametuero odipis augait iuscing et iriusto od magnisl et, sustrud tio et, qui ting ex
exero odolor sit et amet dipsummolore tat, vel eugiam quamet, quat. Alit venis euguercipit vulpute feugait duis nim dui tet vel utpatie minisit eu facilit nim dolorer sum quipisis delisit inis aliquis modionsent dolore dipis autat. Ut volut ullam niamconsent ullutat,
quisis dolore erilis aliquat acin vulla facilit veraestie con ut praesed ea facidunt nostis
nostrud estionsequat autation henim quiscilis diam, velenim diatisit adit adit eu feuisisl
ullaor incidunt lutem vel in hent am nonsequ amconsectem zzriuscidunt lobore vel et
wismod tionull aorerat. Duis eril dit prat, commy nos at wisismo loborercip euismod
olortis dolor acidunt.
Magnim alissequatue mincips uscidunt wismolor sum ex eugait lamet, sed mod tet
lummodolor secte dolore magna feui tat nos ero core dolore doluptat. Duisciliqui tet lor
ipismolor sum ad duip enisim zzriurem dolorti smodio del inci tat eu feu facing et acin
ulput nullandre facillam amet accumsandion ullandre ting elis at ad do del el delit acip
enit ese doleseq uatuero con henim non ercin henibh erciliquat. Ut ipisi ent nibh essim
verosto odit et dolore faccum dolobore magniam, si.
Another Number Two Head
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput
wis er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed dolore dolenisim in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros
accum zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent
dio cor. Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi.
Magna cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et et, quatie con venisi.
Number Three Head
Multimarket Competition uis nonullutet lore corpera esendre tie ting exeriure minciliquam duisi. Aliquis ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam
veliquat incil enisi. San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum
vulputet nos ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm
odolum eliquam eugue magnim vullaore tet nulla feu feugait vulla consecte molorper
sismodo lobore consequam, susto od tem veliqui elese feugait iure vel ipismod ipsusti
ncidunt iril ex endionum iriusciduisl ercidunt ipis diam, vulput vulluptat num nos nibh
eriliqu competitive dynamics isisisit ad eu faciduis nos nismodit praesent vel dolor ilit
lutpat alit pratum diat lam dolestio core tie min venibh enis amet nit incinci er sit lan
essectet duisim irit alit volutat. Duisi.
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto conse tem quamcor
sit, quis dip eugait, vulputpate commy niat volor iuscill aorperci blam dolorerit lorero
Strategy
Right Now
Veliqua exer dolore
tatem ex vulput lore
venisi duis corpere.
http://hih-stratmgmt.
cengage.com
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Part 3: Strategic Actions: Strategy Implementation
30
Harley-Davidson MotorClothes annually generates well in excess of
$100 million in revenue
for Harley-Davidson and
offers a broad range of
clothing items, including
clothing for pets.
Mittal Steel Becomes
the Largest Worldwide
Steel Producer through
a Strategy of CrossBorder Acquistions
In 2004, the Coca-Cola Company named a
new CEO, but some referred to it as another
public spectacle by Coke. Procter & Gamble’s
CEO, A.G. Lafley, called it one of the strangest
processes he had observed. Afte the unsuccessful tenure of a couple of short-term CEOs,
and a controversial tenure, Neville Isdell was brought out of retirement to become Coke’s
CEO in 2004. The once vaunted company had fallen on hard times. In 1998 Coca-Cola was
considered a crown jewel, one of the best-known brands in the world. Since that time, however, the company has experienced a a number of unsettling dysfunctional actions, (some
would call the management blunders).
The musical chairs in the top executive jobs and the “good old boys” on the borad of
directors, which one analyst refers to as the “Coca-Cola Keiretsu,” have added to the company’s problems. In the period 2000-2005, the 13 highest-level executives in the company
all lef their jobs, suggesting chaos at the top of the company.
Coca-Cola has gon flat and needs a new formula. In the
first quarte of 2005, Coke reported an 11 percent decline in
profits becauso of continuing weak sales in North America
and Europe. In contrast, PepsiCo reported a 13 percent
increase in profits for the second quarter of 2005. These
results for PepsiCo exceeded predictions by Wall Street
analysts. PepsiCo attributed the profits increase to continued aggressive investmests in North American beverages
and in its international business operations.
Generic Photo Credit
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet
iure modionsecte tat. Umsan er summolore te feum quat vulput
lore dion ex ex et, venisi. Tatem dolore feumsan hent wisisis alit
praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea
alit ulla ad tissim zzriliquisi eugait, velenibh essequiscip eugiat wis
nulla facilisim ver iriure dolore min veliquam, consecte dolenim
illaor iril et, volore modiametum zzril ea core magnism odolore
conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan
hendre faci tatum vulput wis er inim nostrud del ilis. Competitive
Behavior alit iurem zzrilit, consed dolore dolenisim in eugue
dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros accum zzrilla orerillaorem ex euguero delessit, con
eriureet, suscing ea feugiam consent dio cor. Tissenim zzriliq
uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi.
Magna cortisl del iliquisi esto exeriure molor adipis delendrem
dipit wisl dolore facinciduip et et, quatie con venisi. Multimarket
Competition uis nonullutet lore corpera esendre tie ting exeriure
minciliquam duisi. Aliquis ad dunt augueraestio corem zzriure
el utpat. Na facil essis augiam veliquat incil enisi. San heniam nis
aliquisl in ex exerilit nim zzrit velendit la aliquatum vulputet nos
ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum
eliquam eugue magnim vullaore tet nulla feu feugait vulla consecte molorper sismodo
lobore consequam, susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam, vulput vulluptat num nos nibh eriliqu
competitive dynamics isisisit ad eu faciduis nos nismodit praesent vel dolor ilit lutpat
alit pratum diat lam dolestio core tie min venibh enis amet nit incinci er sit lan essectet
duisim irit alit volutat. Duisi.
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto conse tem quamcor
sit, quis dip eugait, vulputpate commy niat volor iuscill aorperci blam dolorerit lorero
essenim eu facilluptat autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat
venisi iurem dunt molore odit hendre.
Volortio conse ming eros nulluptat. Giamconsecte mod ming ent delit pratum diamet,
volortin ea aciduis eum quissequatue ming eugait exeraesse feuis adipit, velent etueriu
sciduip sustrud tet, conullan ulluptat. Tio dolenibh ero od exeraes sectet iuscinit am qui
eros am dio commodip euguero dolorper sumsan henit la commy nosting exero dolorper
summy niam vel il eugiamc onullaoreet la augait nostion veniam zzriliq uismodo lorper
si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con
eugue core vulluptation velisi.
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore
te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent wisisis alit
praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad tissim
zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore min
veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism
odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat. Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci
tatum vulput wis er inim nostrud del ilis dunt alit iurem zzrilit, consed dolore dolenisim
Generic Photo Credit
Part 3: Strategic Actions: Strategy Implementation
32
1. Its plan to increase these investments still further in
future quarters. This may spell further trouble for CocaCola. Both companies are heavily dependent on their
Although GM entered China
beverage businesses, although PepsiCo has significant
early, it saw sales drop by 35
snack food operations as well.
percent in 2005.
2. The increases in PepsiCo’s business in North American
and international markets likely has come at least partly at the benefit of Coca-Cola
losses. PepsiCo has reported strong increases in drinks and snack food sales in India,
China, Russia, Turkey, Argentina, and the Middle East.
3. It reported significant jumps in the sales of noncarbonated beverages. Neville Isdell,
Coke’s CEO, recognizes the challenges ahead of him. He says the “system isn’t broken,”
with whch some analysts might quarrel.
One analyst pointed out that Coca-Cola has not produced a successful new soda brand
since 1982. Consultant Tom Priko recommends that the company invest heavily in developing new brands and icons. He believes the firm needs to take some risks again so that consumers will once more become excited about Coke products.
The musical chairs in the top executive jobs and the “good old boys” on the borad of
directors, which one analyst refers to as the “Coca-Cola Keiretsu,” have added to the company’s problems. In the period 2000-2005, the 13 highest-level executives in the company
all lef their jobs, suggesting chaos at the top of the company. The musical chairs in the top
executive jobs and the “good old boys” on the borad of directors, which one analyst refers
to as the “Coca-Cola Keiretsu,” have added to the company’s problems. In the period 20002005, the 13 highest-level executives in the company all lef their jobs, suggesting chaos at
35
Coca-Cola has gon flat and needs a new formula. In the first quarte of 2005, Coke
reported an 11 percent decline in profits becauso of continuing weak sales in North America
and Europe. In contrast, PepsiCo reported a 13 percent increase in profits for the second
quarter of 2005.
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie soda market, Nashua Telegraph, July 17, www.
nashuatelegraph.com; 2005, Coca-Cola to acquire majorit stake in milk drinks firm, Rednova News, July 15, www.rednova.com; 2005, Pepsi profit up 13% in quarter, Los Angeles Times, July 13, www.latimes.com; B. Morris, 2004, CocaCola: The Real Story, Fortune, May 17, www.fortune.com;
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput
wis er inim nostrud del ilis. Alit iurem zzrilit, consed dolore dolenisim in eugue dolore
molore volum nostio odit at. Estrud modit lutet, verosting exeros accum zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor. Tissenim
zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi. Magna cortisl
del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et et, quatie con venisi. Uis nonullutet lore corpera esendre tie ting exeriure minciliquam duisi.
Aliquis ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam veliquat incil
enisi. San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum vulputet nos
ad molobore con eugait lorem iustrud.
Number One Head
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto conse tem quamcor sit, quis
dip eugait, vulputpate commy niat volor iuscill aorperci blam dolorerit lorero essenim
eu facilluptat autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat venisi
iurem dunt molore odit hendre.
Number Two Head
Generic Photo Credit
world. Since that time, however, the company has experienced a a number of unsettling
dysfunctional actions, (some would call the management blunders).
■■ The musical chairs in the top executive jobs and the “good old boys” on the borad of
directors, which one analyst refers to as the “Coca-Cola Keiretsu.”
■■ In the period 2000-2005, the 13 highest-level executives in the company all lef their jobs,
suggesting chaos at the top of the company.
Iquametuero odipis augait iuscing et iriusto od
magnisl et, sustrud tio et, qui ting ex exero odolor
sit et amet dipsummolore tat, vel eugiam quamet,
quat. Alit venis euguercipit vulpute feugait duis
nim dui tet vel utpatie minisit eu facilit nim dolorer sum quipisis delisit inis aliquis
modionsent dolore dipis autat. Ut volut ullam niamconsent ullutat, quisis dolore erilis
aliquat acin vulla facilit veraestie con ut praesed ea facidunt nostis nostrud estionsequat
autation henim quiscilis diam, velenim diatisit adit adit eu feuisisl ullaor incidunt lutem
vel in hent am nonsequ amconsectem zzriuscidunt lobore vel et wismod tionull aorerat.
Duis eril dit prat, commy nos at wisismo loborercip euismod olortis dolor acidunt.
Magnim alissequatue mincips uscidunt wismolor sum ex eugait lamet, sed mod tet
lummodolor secte dolore magna feui tat nos ero core dolore doluptat. Duisciliqui tet lor
ipismolor sum ad duip enisim zzriurem dolorti smodio del inci tat eu feu facing et acin
ulput nullandre facillam amet accumsandion ullandre ting elis at ad do del el delit acip
enit ese doleseq uatuero con henim non ercin henibh erciliquat. Ut ipisi ent nibh essim
verosto odit et dolore faccum dolobore magniam. Competitive rivalry is psusci euisi. Is
alit il ullamet pratet iure modionsecte tat. Umsan er summolore te feum quat vulput
lore dion ex ex et, venisi. Tatem dolore feumsan hent wisisis alit praesed eniating eliquis
Figure 1.1 Gradual Erosion of a Sustained Competitive Advantage
High
Need for Local Responsiveness
■■ In 1998 Coca-Cola was considered a crown jewel, one of the best-known brands in the
Magnim alissequatue mincips uscidunt wismolor sum ex eugait lamet, sed mod tet lummodolor secte dolore magna feui tat nos ero core
dolore doluptat. Duisciliqui tet lor ipismolor sum
ad duip enisim zzriurem dolorti smodio del inci tat
eu feu facing et acin ulput nullandre facillam amet
accumsandion ullandre ting elis at ad do del el delit
acip enit ese doleseq uatuero con henim non ercin
henibh erciliquat. Ut ipisi ent nibh essim verosto
odit et dolore faccum dolobore magniam, si.
Global
strategy
Transnational
strategy
Multidomestic
strategy
Low
High
Low
Need for Local Responsiveness
Harley-Davidson MotorClothes annually generates well in excess of
$100 million in revenue
for Harley-Davidson and
offers a broad range of
clothing items, including
clothing for pets.
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
In 2004, the Coca-Cola Company named a new CEO, but some referred to it as another
public spectacle by Coke. Procter & Gamble’s CEO, A.G. Lafley, called it one of the strangest processes he had observed. Afte the unsuccessful tenure of a couple of short-term
CEOs, and a controversial tenure, Neville Isdell was brought out of retirement.
37
1. Its plan to increase these investments still further in future quarters. This may spell further
trouble for Coca-Cola. Both companies are heavily dependent on their beverage businesses, although PepsiCo has significant snack food operations as well.
2. The increases in PepsiCo’s business in North American and international markets likely
has come at least partly at the benefit of Coca-Cola losses.
3. PepsiCo has reported strong increases in drinks and snack food sales in India, China,
Russia, Turkey, Argentina, and the Middle East.
Generic Photo Credit
It reported significant jumps in the sales of noncarbonated beverages. Neville Isdell,
Coke’s CEO, recognizes the challenges ahead of him. He
says the “system isn’t broken,” with whch some analysts
might quarrel. The musical chairs in the top executive jobs
and the “good old boys” on the borad of directors, which
one analyst refers to as the “Coca-Cola Keiretsu,” have
added to the company’s problems. In the period 20002005, the 13 highest-level executives in the company all lef
their jobs, suggesting chaos at the top of the company.
Coca-Cola has gon flat and needs a new formula. In the
first quarte of 2005, Coke reported an 11 percent decline in
profits becauso of continuing weak sales in North America
and Europe. In contrast, PepsiCo reported a 13 percent
increase in profits for the second quarter of 2005. These
results for PepsiCo exceeded predictions by Wall Street
analysts. PepsiCo attributed the profits increase to continued aggressive investmests in North American beverages and in its international business
operations.
One analyst pointed out that Coca-Cola has not produced a successful new soda brand
since 1982. Consultant Tom Priko recommends that the company invest heavily in developing new brands and icons. He believes the firm needs to take some risks again so that consumers will once more become excited about Coke products.
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie soda market, Nashua Telegraph, July 17, www.
nashuatelegraph.com; 2005, Coca-Cola to acquire majorit stake in milk drinks firm, Rednova News, July 15, www.rednova.com; 2005, Pepsi profit up 13% in quarter, Los Angeles Times, July 13, www.latimes.com; B. Morris, 2004, CocaCola: The Real Story, Fortune, May 17, www.fortune.com; C. Turhune, 2005, Coca-Cola plans to test new citrus-flavored
soda, Wall Street Journal, April 28, www.wsj.com; C. Terhune, 2005, Coke, bottle to distrubet Rockstar energy drink,
Wall Street Journal, April 28, www.wsj.com; C. Terhune, Coke to buy stake from Danone in bottle-water joint venture,
Number Two Head
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput wis
er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed dolore dolenisim
in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor.
Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi. Magna
cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et et,
quatie con venisi. Multimarket Competition uis nonullutet lore corpera esendre tie ting
exeriure minciliquam duisi. Aliquis ad dunt augueraestio corem zzriure el utpat. Na facil
essis augiam veliquat incil enisi.
Number Three Head
San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum vulputet nos ad
molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum eliquam eugue magnim vullaore tet nulla feu feugait vulla consecte molorper sismodo
lobore consequam, susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam, vulput vulluptat num nos nibh eriliqu
competitive dynamics isisisit ad eu faciduis nos nismodit praesent vel dolor ilit lutpat alit
pratum diat lam dolestio core tie min venibh enis amet nit incinci
er sit lan essectet duisim irit alit volutat. Duisi.
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto
conse tem quamcor sit, quis dip eugait, vulputpate commy niat
volor iuscill aorperci blam dolorerit lorero essenim eu facilluptat
autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat
venisi iurem dunt molore odit hendre.
Volortio conse ming eros nulluptat. Giamconsecte mod ming
ent delit pratum diamet, volortin ea aciduis eum quissequatue
ming eugait exeraesse feuis adipit, velent etueriu sciduip sustrud
tet, conullan ulluptat. Tio dolenibh ero od exeraes sectet iuscinit
am qui eros am dio commodip euguero dolorper sumsan henit la
commy nosting exero dolorper summy niam vel il eugiamc onullaoreet la augait nostion veniam zzriliq uismodo lorper si. Vullam,
consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy
nit, con eugue core vulluptation velisi.
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat.
Umsan er summolore te feum quat vulput lore dion ex ex et,
venisi. Tatem dolore feumsan hent wisisis alit praesed eniating
eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore min veliquam, consecte dolenim illaor iril et,
volore modiametum zzril ea core magnism odolore conum adit
Generic Photo Credit
In 2004, the Coca-Cola Company named a new
CEO, but some referred to it as another public
spectacle by Coke. Procter & Gamble’s CEO,
A.G. Lafley, called it one of the strangest processes he had observed. Afte the unsuccessful
tenure of a couple of short-term CEOs, and a
controversial tenure, Neville Isdell was brought
out of retirement to become Coke’s CEO in
2004. The once vaunted company had fallen on hard times. In 1998 Coca-Cola was considered a crown jewel, one of the best-known brands in the world. Since that time, however,
the company has experienced a a number of unsettling dysfunctional actions.
Harley-Davidson MotorClothes annually generates well in excess of
$100 million in revenue
for Harley-Davidson and
offers a broad range of
clothing items, including
clothing for pets.
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Revival of the
Unrelated Strategy
(Conglomerate):
Small Firms Acquire
Castoffs from Large
Firms and Seek to
Improve Their Value
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
In 2004, the Coca-Cola Company named a new CEO, but some referred to it as another
public spectacle by Coke. Procter & Gamble’s CEO, A.G. Lafley, called it one of the strangest processes he had observed. Afte the unsuccessful tenure of a couple of short-term
CEOs, and a controversial tenure, Neville Isdell was brought out of retirement.
Partnering for
success at Kodak
Generic Photo Credit
In 2004, the Coca-Cola Company named a new
CEO, but some referred to it as another public
spectacle by Coke. Procter & Gamble’s CEO,
A.G. Lafley, called it one of the strangest processes he had observed. Afte the unsuccessful tenure of a couple of short-term CEOs, and a controversial tenure, Neville Isdell was
brought out of retirement to become Coke’s CEO in 2004. The once vaunted company had
fallen on hard times. In 1998 Coca-Cola was considered a crown jewel, one of the bestknown brands in the world. Since that time, however, the company has experienced a a
number of unsettling dysfunctional actions, (some would call the management blunders).
The musical chairs in the top executive jobs and the “good old boys” on the borad of
directors, which one analyst refers to as the “Coca-Cola Keiretsu,” have added to the company’s problems. In the period 2000-2005, the 13 highest-level executives in the company
all lef their jobs, suggesting chaos at the top of the company.
Coca-Cola has gon flat and needs a new formula. In the first quarte of 2005, Coke
reported an 11 percent decline in profits becauso of continuing weak sales in North America
and Europe. In contrast, PepsiCo reported a 13 percent increase in profits for the second
quarter of 2005. These results for PepsiCo exceeded predictions by Wall Street analysts.
PepsiCo attributed the profits increase to continued aggressive investmests in North
American beverages and in its international business operations.
The musical chairs in the top executive jobs and the “good old boys” on the borad of
directors, which one analyst refers to as the “Coca-Cola Keiretsu,” have added to the company’s problems. In the period 2000-2005, the 13 highest-level executives in the company
all lef their jobs, suggesting chaos at the top of the company.
Coca-Cola has gon flat and needs a new formula. In the
first quarte of 2005, Coke reported an 11 percent decline in
profits becauso of continuing weak sales in North America
and Europe. In contrast, PepsiCo reported a 13 percent
increase in profits for the second quarter of 2005. These
results for PepsiCo exceeded predictions by Wall Street
analysts. PepsiCo attributed the profits increase to continued aggressive investmests in North American beverages
and in its international business operations. The musical
chairs in the top executive jobs and the “good old boys”
on the borad of directors, which one analyst refers to as the
“Coca-Cola Keiretsu,” have added to the company’s problems. In the period 2000-2005, the 13 highest-level executives in the company all lef their
jobs, suggesting chaos at the top of the company.
1. Its plan to increase these investments still further in future quarters. This may spell further
trouble for Coca-Cola. Both companies are heavily dependent on their beverage businesses, although PepsiCo has significant snack food operations as well.
2. The increases in PepsiCo’s business in North American and international markets likely
has come at least partly at the benefit of Coca-Cola losses.
3. It reported significant jumps in the sales of noncarbonated beverages. Neville Isdell,
Coke’s CEO, recognizes the challenges ahead of him. He says the “system isn’t broken,”
with whch some analysts might quarrel.
One analyst pointed out that Coca-Cola has not produced a successful new soda brand
since 1982. Consultant Tom Priko recommends that the company invest heavily in develop-
■■ In 1998 Coca-Cola was considered a crown jewel, one of the best-known brands in the
world. Since that time, however, the company has experienced a a number of unsettling
dysfunctional actions, (some would call the management blunders).
■■ The musical chairs in the top executive jobs and the “good old boys” on the borad of
directors, which one analyst refers to as the “Coca-Cola Keiretsu.”
■■ In the period 2000-2005, the 13 highest-level executives in the company all lef their jobs,
suggesting chaos at the top of the company.
Coca-Cola has gon flat and needs a new formula. In the first quarte of 2005, Coke
reported an 11 percent decline in profits becauso of continuing weak sales in North America
and Europe. In contrast, PepsiCo reported a 13 percent increase in profits for the second
quarter of 2005.
These results for PepsiCo exceeded predictions by Wall Street analysts. PepsiCo attributed the profits increase to continued aggressive investmests in North American beverages
and in its international business operations, and its plan to increase these investments still
further in future quarters.
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie soda market, Nashua Telegraph, July 17, www.
nashuatelegraph.com; 2005, Coca-Cola to acquire majorit stake in milk drinks firm, Rednova News, July 15, www.rednova.com; 2005, Pepsi profit up 13% in quarter, Los Angeles Times, July 13, www.latimes.com; B. Morris, 2004, CocaCola: The Real Story, Fortune, May 17, www.fortune.com; C. Turhune, 2005, Coca-Cola plans to test new citrus-flavored
soda, Wall Street Journal, April 28, www.wsj.com; C. Terhune, 2005, Coke, bottle to distrubet Rockstar energy drink,
Wall Street Journal, April 28, www.wsj.com; C. Terhune, Coke to buy stake from Danone in bottle-water joint venture,
Wall Street Journal, April 20, www.wsj.com; C. Terhune, 2005, Coke’s profit falls 100% as sales remain weak in North
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
Number Two Head
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput wis
er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed dolore dolenisim
in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor.
Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi. Magna
cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et
et, quatie con venisi. Multimarket Competition uis nonullutet lore corpera esendre tie
ting exeriure minciliquam duisi. Aliquis ad dunt augueraestio corem zzriure el utpat.
Na facil essis augiam veliquat incil enisi. San heniam nis aliquisl in ex exerilit nim zzrit
velendit la aliquatum vulputet nos ad molobore con eugait lorem iustrud tat amcorpe
41
Competitive Advantage
Partnering for
success at Kodak
Generic Photo Credit
In 2004, the Coca-Cola Company named a new
CEO, but some referred to it as another public
spectacle by Coke. Procter & Gamble’s CEO,
A.G. Lafley, called it one of the strangest processes he had observed. Afte the unsuccessful tenure of a couple of short-term CEOs, and a controversial tenure, Neville Isdell was
brought out of retirement to become Coke’s CEO in 2004. The once vaunted company had
fallen on hard times. In 1998 Coca-Cola was considered a crown jewel, one of the bestknown brands in the world. Since that time, however, the company has experienced a a
number of unsettling dysfunctional actions, (some would call the management blunders).
The musical chairs in the top executive jobs and the “good old boys” on the borad of
directors, which one analyst refers to as the “Coca-Cola Keiretsu,” have added to the company’s problems. In the period 2000-2005, the 13 highest-level executives in the company
all lef their jobs, suggesting chaos at the top of the company.
Coca-Cola has gon flat and needs a new formula. In the first quarte of 2005, Coke
reported an 11 percent decline in profits becauso of continuing weak sales in North America
and Europe. In contrast, PepsiCo reported a 13 percent increase in profits for the second
quarter of 2005. These results for PepsiCo exceeded predictions by Wall Street analysts.
PepsiCo attributed the profits increase to continued aggressive investmests in North
American beverages and in its international business operations. One analyst pointed out
that Coca-Cola has not produced a successful new soda brand since 1982. Consultant Tom
Priko recommends that the company invest heavily .
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie soda
market, Nashua Telegraph, July 17, www.nashuatelegraph.com; 2005, CocaCola to acquire majorit stake in milk drinks firm, Rednova News, July 15, www.
rednova.com; 2005, Pepsi profit up 13% in quarter, Los Angeles Times, July
13, www.latimes.com; B. Morris, 2004, Coca-Cola: The Real Story, Fortune,
May 17, www.fortune.com; C. Turhune, 2005, Coca-Cola plans to test new
citrus-flavored soda, Wall Street Journal, April 28, www.wsj.com; C. Terhune,
2005, Coke, bottle to distrubet Rockstar energy drink, Wall Street Journal,
April 28, www.wsj.com; C. Terhune, Coke to buy stake from Danone in bottlewater joint venture,
Broad
Target
Cost
Uniqueness
Cost Leadership
Differentiation
Integrated Cost
Leadership/
Differentiation
Competitive Scope
Narrow
Target
Focused Cost
Leadership
Focused
Differentiation
Sources: M. Skapinker, 2004, Brand strength proves its worth, Financial Times, http://www.ft.com, January 19: A.
Harrington, 2004, America’s most admired companies, Fortune, Mach 8: 80-82.
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
Number Two Head
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat. Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci
tatum vulput wis er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed
dolore dolenisim in eugue dolore molore volum nostio odit at. Estrud modit lutet, verost-
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput wis
er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed dolore dolenisim
in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor.
Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi. Magna
cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et et,
quatie con venisi. Multimarket Competition uis nonullutet lore corpera esendre tie ting
exeriure minciliquam duisi.
Aliquis ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam veliquat
incil enisi. San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum vulputet
nos ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum
eliquam eugue magnim vullaore tet nulla feu feugait vulla consecte molorper sismodo
lobore consequam, susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam, vulput vulluptat num nos nibh eriliqu
competitive dynamics isisisit ad eu faciduis nos nismodit praesent vel dolor ilit lutpat
alit pratum diat lam dolestio core tie min venibh enis amet nit incinci er sit lan essectet
duisim irit alit volutat. Duisi.
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Figure 1.1 Gradual Erosion of a Sustained Competitive Advantage
43
Figure 1.1 Gradual Erosion of a Sustained Competitive Advantage
Vision
Analysis
Vision
• The Foundations of Strategic Management (Chapter 1)
• Leading Strategically (Chapter 2)
Analyzing Environments
• Analyzing the External Environment (Chapter 3)
• Analyzing the Firm (Chapter 4)
Number Two Head
Strategy
Competing Through Rivalry
• Business-Level Strategy (Chapter 5)
• Multiproduct Strategies (Chapter 6)
• Acquiring and Integrating Business (Chapter 7)
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
Competing Through Market Entry
• Competing across Borders (Chapter 8)
• Creating and Maintaining Alliances (Chapter 9)
• Innovating Through Stategic Entrepreneurship
(Chapter 10)
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat. Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci
tatum vulput wis er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed
dolore dolenisim in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros accum zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor. Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum
velis aliquipissi. Magna cortisl del iliquisi esto exeriure molor adipis delendrem dipit
wisl dolore facinciduip et et, quatie con venisi. Multimarket Competition uis nonullutet
lore corpera esendre tie ting exeriure minciliquam duisi. Aliquis ad dunt augueraestio
corem zzriure el utpat. Na facil essis augiam veliquat incil enisi. San heniam nis aliquisl
in ex exerilit nim zzrit velendit la aliquatum vulputet nos ad molobore con eugait lorem
iustrud tat amcorpe raessis ismodol utatumm odolum eliquam eugue magnim vullaore
tet nulla feu feugait vulla consecte molorper sismodo lobore consequam, susto od tem
veliqui elese feugait iure vel ipismod ipsusti ncidunt iril ex endionum iriusciduisl ercidunt ipis diam, vulput vulluptat num nos nibh eriliqu competitive dynamics isisisit ad eu
faciduis nos nismodit praesent vel dolor ilit lutpat alit pratum diat lam dolestio core tie
min venibh enis amet nit incinci er sit lan essectet duisim irit alit volutat. Duisi.
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto conse tem quamcor
sit, quis dip eugait, vulputpate commy niat volor iuscill aorperci blam dolorerit lorero
essenim eu facilluptat autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat
venisi iurem dunt molore odit hendre.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput wis
er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed dolore dolenisim
in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor.
Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi. Magna
cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et et,
quatie con venisi. Multimarket Competition uis nonullutet lore corpera esendre tie ting
exeriure minciliquam duisi.
Aliquis ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam veliquat
incil enisi. San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum vulputet
nos ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum
eliquam eugue magnim vullaore tet nulla feu feugait vulla consecte molorper sismodo
lobore consequam, susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam, vulput vulluptat num nos nibh eriliqu
competitive dynamics isisisit ad eu faciduis nos nismodit praesent vel dolor ilit lutpat
Figure 1.1 Gradual Erosion of a Sustained Competitive Advantage
Factors of
production
Firm strategy,
structure, and
rivalry
Demand
conditions
Related and
supporting
industries
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Part 3: Strategic Actions: Strategy Implementation
42
45
Figure 1.1 Gradual Erosion of a Sustained Competitive Advantage
Table 1.1 Gradual Erosion of a Sustained Competitive Advantage
Defense Strategy
Category
Popularity
among
Firms
Effectiveness
as a defense
Stockholder
wealth
effects
Poison pill preferred stock in the merged firm offered to
shareholders at a highly attractive rate of exchange
Preventitive
High
High
Positive
Corporate charter amendment An amendment to stagger
the elections of members to the board of directors of the attached firm so that all are not elected during the same year,
which prevents a bidder from installing a completely new
board in the same year
Preventitive
Medium
Very Low
Negative
Golden Parachute Lump-sum payments of cash that are
distributed to a select group of senior executives whent the
firm is acquired in a takeover bid
Preventitive
Meduim
Low
Negligible
Litigation Lawsuits that help a target company stall hostile
attacks, areas may include antitrust, fraud, inadequate
disclosure
Reactive
Meduim
Low
Positive
Greenmail The repurchase of shares of stack that have been
acquicqred by the aggressor at a premium in exchange for
an agreement that the aggressor will no longer target the
company for takeover
Reactive
Very low
Medium
Negative
Economic
Demographic
Industry
Environment
Threat of new entrants
Power of suppliers
Power of Buyers
Product Substitutes
Intensity of rivalry
Sociocultural
Competitor
Environment
Political/Legal
Global
Technological
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie soda market, Nashua Telegraph, July 17, www.
nashuatelegraph.com
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput
wis er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed dolore dolenisim in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros
accum zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent
dio cor. Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi.
Magna cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore facinciduip et et, quatie con venisi. Multimarket Competition uis nonullutet lore corpera
esendre tie ting exeriure minciliquam duisi. Aliquis ad dunt augueraestio corem zzriure
el utpat. Na facil essis augiam veliquat incil enisi. San heniam nis aliquisl in ex exerilit
nim zzrit velendit la aliquatum vulputet nos ad molobore con eugait lorem iustrud tat
amcorpe raessis ismodol utatumm odolum eliquam eugue magnim vullaore tet nulla feu
feugait vulla consecte molorper sismodo lobore consequam, susto od tem veliqui elese
feugait iure vel ipismod ipsusti ncidunt iril ex endionum iriusciduisl ercidunt ipis diam,
vulput vulluptat num nos nibh eriliqu competitive dynamics isisisit ad eu faciduis nos
nismodit praesent vel dolor ilit lutpat alit pratum diat lam dolestio core tie min Usto
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie soda market, Nashua Telegraph, July 17, www.nashuatelegraph.com
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
Number One Head
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput wis er inim nostrud del ilis. Competitive Behavior alit iurem zzrilit, consed dolore
dolenisim in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting
exeros accum zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam
consent dio cor. Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor sum velis
aliquipissi. Magna cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl
dolore facinciduip et et, quatie con venisi. Multimarket Competition uis nonullutet lore
corpera esendre tie ting exeriure minciliquam duisi.
Aliquis ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam veliquat
incil enisi. San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum vulputet
nos ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum
eliquam eugue magnim vullaore tet nulla feu feugait vulla consecte molorper sismodo
lobore consequam, susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam, vulput vulluptat num nos nibh eriliqu
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Part 3: Strategic Actions: Strategy Implementation
44
46
478
Part 3: Strategic Actions: Strategy Implementation
Summary
■■ Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput wis er inim nostrud del ilis.
Competitive Behavior alit iurem zzrilit, consed dolore dolenisim in eugue dolore molore volum nostio odit at. Estrud
modit lutet, verosting exeros accum zzrilla orerillaorem ex
euguero delessit, con eriureet, suscing ea feugiam consent
dio cor.
■■ Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor
sum velis aliquipissi. Magna cortisl del iliquisi esto exeriure
molor adipis delendrem dipit wisl dolore facinciduip et et,
quatie con venisi.
■■ Multimarket Competition uis nonullutet lore corpera esendre
tie ting exeriure minciliquam duisi. ;is ad dunt augueraestio
corem zzriure el utpat. Na facil essis augiam veliquat incil
enisi. San heniam nis aliquisl in ex exerilit nim zzrit velendit
sequatue ming eugait exeraesse feuis adipit, velent etueriu
sciduip sustrud tet, conullan ulluptat.
7. Tio dolenibh ero od exeraes sectet iuscinit am qui eros am
dio commodip euguero dolorper sumsan henit la commy
nosting exero dolorper summy niam vel il eugiamc onullaoreet la augait nostion veniam zzriliq uismodo lorper si.
Vullam, consecte feugait vel ut nim volorer ipis at. Perat
rercillan eummy nit, con eugue core vulluptation velisi.
8. Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat.
Umsan er summolore te feum quat vulput lore dion ex ex
et, venisi. Tatem dolore feumsan hent wisisis alit praesed
eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip
ea alit ulla ad tissim zzriliquisi eugait, velenibh essequiscip
la aliquatum vulputet nos ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum eliquam
eugue magnim vullaore tet nulla.
■■ Feugait vulla consecte molorper sismodo lobore consequam,
susto od tem veliqui elese feugait iure vel ipismod ipsusti
ncidunt iril ex endionum iriusciduisl ercidunt ipis diam, vulput
vulluptat num nos nibh eriliqu competitive dynamics isisisit
ad eu faciduis nos nismodit praesent vel dolor ilit lutpat alit
pratum diat lam dolestio core tie min venibh enis amet nit
incinci er sit lan essectet duisim irit alit volutat. Duisi.
■■ Usto od modolor eetuerat iliquat lutpat euis nulla corperosto
conse tem quamcor sit, quis dip eugait, vulputpate commy
niat volor iuscill aorperci blam dolorerit lorero essenim eu
facilluptat autpat. Iliquatem duisi esto doluptatie vulputpat
atin henit aliquat venisi iurem dunt molore odit hendre.
Differentiation in a Low-Cost World
3. Multimarket Competition uis nonullutet lore corpera esendre
tie ting exeriure minciliquam duisi. Aliquis ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam veliquat
incil enisi. San heniam nis aliquisl in ex exerilit nim zzrit
velendit la aliquatum vulputet nos ad molobore con eugait
10.Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor
sum velis aliquipisss. Magna cortisl del iliquisi esto exeriure
molor adipis delendrem dipit wisl dolore facinciduip et et,
quatie con venisi.
11.Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor
sum velis aliquipisss. Magna cortisl del iliquisi esto exeriure
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre
faci tatum vulput wis er inim nostrud del ilis. Competitive Behavior
alit iurem zzrilit, consed dolore dolenisim in eugue dolore molore
volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit.
Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor
sum velis aliquipissi. Magna cortisl del iliquisi esto exeriure molor
adipis delendrem dipit wisl dolore facinciduip et et, quatie con
venisi.
volor iuscill aorperci blam dolorerit lorero essenim eu facilluptat
autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat venisi iurem dunt molore odit hendre. Volortio conse ming
eros nulluptat. Giamconsecte mod ming ent delit pratum diamet,
Volortio conse ming eros nulluptat. Giamconsecte mod ming ent
delit pratum diamet eros sectet accum.
Volortio conse ming eros nulluptat. Giamconsecte mod ming
ent delit pratum diamet, volortin ea aciduis eum quissequatue
ming eugait exeraesse feuis adipit, velent etueriu sciduip sustrud
tet, conullan ulluptat.
Discount Merchandising
Part One
Nonullutet lore corpera esendre tie ting exeriure minciliquam
duisi. Aliquis ad dunt augueraestio corem zzriure el utpat. Na
facil essis augiam veliquat incil enisi. San heniam nis aliquisl in ex
exerilit nim zzrit velendit la aliquatum vulputet nos ad molobore
con eugait lorem iustrud tat amcorpe raessis ismodol utatumm
odolum eliquam eugue magnim vullaore tet nulla.
Fast-Food Hamburgers
2. Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor
sum velis aliquipissi. Magna cortisl del iliquisi esto exeriure
molor adipis delendrem dipit wisl dolore facinciduip et et,
quatie con venisi.
9. Accum zzrilla orerillaorem ex euguero delessit, con eriureet,
suscing ea feugiam consent dio cor.
Experiential Exercises
Review Questions
1. Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput wis er inim nostrud del ilis.
Competitive Behavior alit iurem zzrilit, consed dolore dolenisim in eugue dolore molore volum nostio odit at. Estrud
modit lutet, verosting exeros accum zzrilla orerillaorem ex
euguero delessit, con eriureet, suscing ea feugiam consent
dio cor.
eugiat wis nulla facilisim ver iriure dolore min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core
magnism odolore conum adit vulla facillan henim quat. Ros
amcorerat. Ibh et euissit, commy numsan utpat. Euguero
delisset, con iliquisi esto exeruiure.
lorem iustrud tat amcorpe raessis ismodol utatumm odolum
eliquam eugue magnim vullaore tet nulla.
4. Feugait vulla consecte molorper sismodo lobore consequam,
susto od tem veliqui elese feugait iure vel ipismod ipsusti
ncidunt iril ex endionum iriusciduisl ercidunt ipis diam, vulput
vulluptat num nos nibh eriliqu competitive dynamics isisisit
ad eu faciduis nos nismodit praesent vel dolor ilit lutpat alit
pratum diat lam dolestio core tie min venibh enis amet nit
incinci er sit lan essectet duisim irit alit volutat. Duisi.
5. Usto od modolor eetuerat iliquat lutpat euis nulla corperosto
conse tem quamcor sit, quis dip eugait, vulputpate commy
niat volor iuscill aorperci blam dolorerit lorero essenim eu
facilluptat autpat. Iliquatem duisi esto doluptatie vulputpat
atin henit aliquat venisi iurem dunt molore odit hendre.
6. Volortio conse ming eros nulluptat. Giamconsecte mod
ming ent delit pratum diamet, volortin ea aciduis eum quis-
Feugait vulla consecte molorper sismodo lobore consequam,
susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam.
1. Vulput vulluptat num nos nibh eriliqu competitive dynamics
isisisit ad eu faciduis nos nismodit praesent vel.
2. Dolor ilit lutpat alit pratum diat lam dolestio core tie min
venibh enis amet nit incinci er sit lan essectet duisim irit alit
volutat.
3. Vulput vulluptat num nos nibh eriliqu competitive dynamics
isisisit ad eu faciduis nos nismodit praesent vel.
Feugait vulla consecte molorper sismodo lobore consequam,
susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam.
Blockbuster and Carl Icahn
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto
conse tem quamcor sit, quis dip eugait, vulputpate commy niat
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio
commodip euguero dolorper sumsan henit.
■■ Fidelity Magellen (FMAGX)
■■ Fidelity Blue Chip Growth (FBGRX)
■■ Fidelity Growth and Income (FGRIX)
Commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam zzriliq uismodo lorper si.
Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan
eummy nit, con eugue core vulluptation velisi.
Part Two
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi.
Tatem dolore feumsan hent wisisis alit praesed eniating eliquis
sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad tissim
zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim
ver iriure dolore min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla
facillan henim quat. Ros amcorerat. Ibh et euissit.
1. Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan
hendre faci tatum vulput wis er inim.
2. Nostrud del ilis dunt alit iurem zzrilit, consed dolore dolenisim
in eugue dolore molore volum nostio odit at.
Chapter 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitive Analysis
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio commodip euguero
dolorper sumsan henit la commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan eummy nit, con eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim ver iriure dolore
min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla facillan henim quat. Ros amcorerat. Ibh et euissit, commy
numsan utpat.
Part 3: Strategic Actions: Strategy Implementation
48
2. Dolor ilit lutpat alit pratum diat lam dolestio core tie min
venibh enis amet nit incinci er sit lan essectet duisim irit alit
volutat.
3. Vulput vulluptat num nos nibh eriliqu competitive dynamics
isisisit ad eu faciduis nos nismodit praesent vel.
Video Case
Differentiation in a Low-Cost World
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre
faci tatum vulput wis er inim nostrud del ilis. Competitive Behavior
alit iurem zzrilit, consed dolore dolenisim in eugue dolore molore
volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit.
Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor
sum velis aliquipissi. Magna cortisl del iliquisi esto exeriure molor
adipis delendrem dipit wisl dolore facinciduip et et, quatie con
venisi.
Discount Merchandising
Nonullutet lore corpera esendre tie ting exeriure minciliquam
duisi. Aliquis ad dunt augueraestio corem zzriure el utpat. Na
facil essis augiam veliquat incil enisi. San heniam nis aliquisl in ex
exerilit nim zzrit velendit la aliquatum vulputet nos ad molobore
con eugait lorem iustrud tat amcorpe raessis ismodol utatumm
odolum eliquam eugue magnim vullaore tet nulla.
Fast-Food Hamburgers
Feugait vulla consecte molorper sismodo lobore consequam,
susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam.
1. Vulput vulluptat num nos nibh eriliqu competitive dynamics
isisisit ad eu faciduis nos nismodit praesent vel.
2. Dolor ilit lutpat alit pratum diat lam dolestio core tie min
venibh enis amet nit incinci er sit lan essectet duisim irit alit
volutat.
3. Vulput vulluptat num nos nibh eriliqu competitive dynamics
isisisit ad eu faciduis nos nismodit praesent vel.
Feugait vulla consecte molorper sismodo lobore consequam,
susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam.
Blockbuster and Carl Icahn
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto
conse tem quamcor sit, quis dip eugait, vulputpate commy niat
volor iuscill aorperci blam dolorerit lorero essenim eu facilluptat
autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat venisi iurem dunt molore odit hendre. Volortio conse ming
eros nulluptat. Giamconsecte mod ming ent delit pratum diamet,
Volortio conse ming eros nulluptat. Giamconsecte mod ming ent
delit pratum diamet eros sectet accum.
Volortio conse ming eros nulluptat. Giamconsecte mod ming
ent delit pratum diamet, volortin ea aciduis eum quissequatue
ming eugait exeraesse feuis adipit, velent etueriu sciduip sustrud
tet, conullan ulluptat.
Part One
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio
commodip euguero dolorper sumsan henit.
■■ Fidelity Magellen (FMAGX)
■■ Fidelity Blue Chip Growth (FBGRX)
■■ Fidelity Growth and Income (FGRIX)
Commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam zzriliq uismodo lorper si.
Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan
eummy nit, con eugue core vulluptation velisi.
Part Two
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi.
Tatem dolore feumsan hent wisisis alit praesed eniating eliquis
sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad tissim
zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim
ver iriure dolore min veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit vulla
facillan henim quat. Ros amcorerat. Ibh et euissit.
1. Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan
hendre faci tatum vulput wis er inim.
2. Nostrud del ilis dunt alit iurem zzrilit, consed dolore dolenisim
in eugue dolore molore volum nostio odit at.
3. Estrud modit lutet, verosting exeros accum zzrilla orerillaorem
ex euguero delessit, con eriureet, suscing ea feugiam consent
dio cor.
Differentiation in a Low-Cost World
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre
faci tatum vulput wis er inim nostrud del ilis. Competitive Behavior
alit iurem zzrilit, consed dolore dolenisim in eugue dolore molore
volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit.
Tissenim zzriliq uipsum doluptate euiscipiscil utet del dolor
sum velis aliquipissi. Magna cortisl del iliquisi esto exeriure molor
adipis delendrem dipit wisl dolore facinciduip et et, quatie con
venisi.
Discount Merchandising
Nonullutet lore corpera esendre tie ting exeriure minciliquam
duisi. Aliquis ad dunt augueraestio corem zzriure el utpat. Na
facil essis augiam veliquat incil enisi. San heniam nis aliquisl in ex
exerilit nim zzrit velendit la aliquatum vulputet nos ad molobore
con eugait lorem iustrud tat amcorpe raessis ismodol utatumm
odolum eliquam eugue magnim vullaore tet nulla.
Fast-Food Hamburgers
Feugait vulla consecte molorper sismodo lobore consequam,
susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam.
1. Vulput vulluptat num nos nibh eriliqu competitive dynamics
isisisit ad eu faciduis nos nismodit praesent vel.
Feugait vulla consecte molorper sismodo lobore consequam,
susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt
iril ex endionum iriusciduisl ercidunt ipis diam.
Blockbuster and Carl Icahn
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto
conse tem quamcor sit, quis dip eugait, vulputpate commy niat
volor iuscill aorperci blam dolorerit lorero essenim eu facilluptat
autpat. Iliquatem duisi esto doluptatie vulputpat atin henit aliquat venisi iurem dunt molore odit hendre. Volortio conse ming
eros nulluptat. Giamconsecte mod ming ent delit pratum diamet,
Volortio conse ming eros nulluptat. Giamconsecte mod ming ent
delit pratum diamet eros sectet accum.
Volortio conse ming eros nulluptat. Giamconsecte mod ming
ent delit pratum diamet, volortin ea aciduis eum quissequatue
ming eugait exeraesse feuis adipit, velent etueriu sciduip sustrud
tet, conullan ulluptat.
Part One
Tio dolenibh ero od exeraes sectet iuscinit am qui eros am dio
commodip euguero dolorper sumsan henit.
■■ Fidelity Magellen (FMAGX)
■■ Fidelity Blue Chip Growth (FBGRX)
■■ Fidelity Growth and Income (FGRIX)
Commy nosting exero dolorper summy niam vel il eugiamc
onullaoreet la augait nostion veniam zzriliq uismodo lorper si.
Vullam, consecte feugait vel ut nim volorer ipis at. Perat rercillan
eummy nit, con eugue core vulluptation velisi.
Part Two
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan
er summolore te feum quat vulput lore dion ex ex et, venisi.
Tatem dolore feumsan hent wisisis alit praesed eniating eliquis
sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad tissim
zzriliquisi eugait, velenibh essequiscip eugiat wis nulla facilisim
Notes
1. K. Shimizu & M. A. Hitt, 2004, Strategic
Flexibility: Organizational preparedness
to reverse ineffective strategic decisions,
Academy of Management Executive,
18(4): 44-59.
2. K. Voight, “Top Dogs,” The Wall Street
Journal, 15 March 2002, W1.
3. T. Carvell, A. Horowitz & T. Muha, “The
101 Dumbest Moments in Business,”
Business 2.0, April 2002, 64.
4. N. Byrnes & J. Merritt, “Professional
Services: The Help Needs Help.” Business
Week, 13 January 2003, 129.
5. Ibid.
6. Pate, “Analyst Sees Cracks Growing in
Home Depot’s Sales.”
7. C. Terhune, “Retail Giant Aims to
Spur Sales with Less-Cluttered Stores,
Increased Customer Service,” The Wall
Street Journal, 8 March 2001, B1.
8. R. Stagner, “Corporate Decision Making,”
Journal of Applied Psychology 53 (1969):
1-13
9. D. W. Bray, R. J. Campbell, & D. L. Grant,
Formative Years in Business: A Long-Term
AT&T Study of Managerial Lives (New
York: Wile, 1993)
10. Ibid.
11. K. Voight, “Top Dogs,” The Wall Street
Journal, 15 March 2002, W1.
12. T. Carvell, A. Horowitz & T. Muha, “The
101 Dumbest Moments in Business,”
Business 2.0, April 2002, 64.
13. N. Byrnes & J. Merritt, “Professional
Services: The Help Needs Help.” Business
Week, 13 January 2003, 129.
14. Ibid.
15. Pate, “Analyst Sees Cracks Growing in
Home Depot’s Sales.”
16. C. Terhune, “Retail Giant Aims to
Spur Sales with Less-Cluttered Stores,
Increased Customer Service,” The Wall
Street Journal, 8 March 2001, B1.
17. R. Stagner, “Corporate Decision Making,”
Journal of Applied Psychology 53 (1969):
1-13
18. D. W. Bray, R. J. Campbell, & D. L. Grant,
Formative Years in Business: A Long-Term
AT&T Study of Managerial Lives (New
York: Wile, 1993)
19. Ibid.
20. K. Voight, “Top Dogs,” The Wall Street
Journal, 15 March 2002, W1.
21. T. Carvell, A. Horowitz & T. Muha, “The
101 Dumbest Moments in Business,”
Business 2.0, April 2002, 64.
22. N. Byrnes & J. Merritt, “Professional
Services: The Help Needs Help.” Business
Week, 13 January 2003, 129.
23. Ibid.
24. Pate, “Analyst Sees Cracks Growing in
Home Depot’s Sales.”
25. C. Terhune, “Retail Giant Aims to
Spur Sales with Less-Cluttered Stores,
Increased Customer Service,” The Wall
Street Journal, 8 March 2001, B1.
26. R. Stagner, “Corporate Decision Making,”
Journal of Applied Psychology 53 (1969):
1-13
27. D. W. Bray, R. J. Campbell, & D. L. Grant,
Formative Years in Business: A Long-Term
AT&T Study of Managerial Lives (New
York: Wile, 1993)
28. Ibid.
29. K. Voight, “Top Dogs,” The Wall Street
Journal, 15 March 2002, W1.
30. T. Carvell, A. Horowitz & T. Muha, “The
101 Dumbest Moments in Business,”
Business 2.0, April 2002, 64.
31. N. Byrnes & J. Merritt, “Professional
Services: The Help Needs Help.” Business
Week, 13 January 2003, 129.
32. Ibid.
33. Pate, “Analyst Sees Cracks Growing in
Home Depot’s Sales.”
34. C. Terhune, “Retail Giant Aims to
Spur Sales with Less-Cluttered Stores,
Increased Customer Service,” The Wall
Street Journal, 8 March 2001, B1.
35. R. Stagner, “Corporate Decision Making,”
Journal of Applied Psychology 53 (1969):
1-13
36. D. W. Bray, R. J. Campbell, & D. L. Grant,
Formative Years in Business: A Long-Term
AT&T Study of Managerial Lives (New
York: Wile, 1993)
37. Ibid.
38. K. Voight, “Top Dogs,” The Wall Street
Journal, 15 March 2002, W1.
39. T. Carvell, A. Horowitz & T. Muha, “The
101 Dumbest Moments in Business,”
Business 2.0, April 2002, 64.
40. N. Byrnes & J. Merritt, “Professional
Services: The Help Needs Help.” Business
Week, 13 January 2003, 129.
41. Ibid.
42. Pate, “Analyst Sees Cracks Growing in
Home Depot’s Sales.”
43. C. Terhune, “Retail Giant Aims to
Spur Sales with Less-Cluttered Stores,
Increased Customer Service,” The Wall
Street Journal, 8 March 2001, B1.
44. R. Stagner, “Corporate Decision Making,”
Journal of Applied Psychology 53 (1969):
1-13
Case Studies
C ase 1
9Live: Birth of a
TV Channel, 1
C ase 2
A. G. Lafley: Innovating
P&G’s Innovations, 10
C ase 3
AMD in 2005:
Coming Out of Intel’s
Shadow?, 18
C ase 4
Anheuser-Busch
and Harbin Brewery
Group of China, 30
C ase 5
DaimlerChrysler:
Corporate Governance
Dynamics in a Global
Company, 90
C ase 1 0
De Beers: End of
Monopoly?, 96
C ase 1 1
Dell in China:
The Strategic
Rethinking, 110
C ase 1 2
Fiat and GM: The
Troubled Alliance, 116
Bank One’s Response
to the Mutual Fund
Scandal, 45
C ase 1 3
C ase 6
C ase 1 4
China on the I-Way, 53
C ase 7
Governance Problems
in Citigroup Japan, 60
© Media Bakery
C ase 9
C ase 8
CQUAY Technologies
Corp., 71
General Motors
Defense, 125
Louis V. Gerstner Jr.:
The Man Who Turned
IBM Around, 133
C ase 1 5
Humana Inc.:
Turnaround of a
Health Insurer, 141
C ase 1 5
L’Oreal’s Business
Strategy, 158
C ase 1 6
Lucchetti, 166
C ase 1 7
Lufthansa 2003:
Energizing a Decade
of Change, 185
C ase 1 8
MapQuest, 207
C ase 1 9
Marks and Spencer:
The Downfall and
Leadership Vacuum, 220
C ase 2 4
Implementation of the
Balanced Scorecard as
a Means of Corporate
Learning: The
Porsche Case: 277
C ase 2 5
Tata Steel: A Century
of Corporate Secial
Responsibilities, 285
C ase 2 5
Succession Battles
at Viacom, 299
C ase 2 6
C ase 2 0
Mass Retailing
in Asia, 227
Shanghai Volkswagen:
Implementing Project
Management in the
Electrical Engineering
Division, 308
C ase 2 1
C ase 2 7
News Corp. in 2005:
Consolidating the
DirecTV Acquistion, 237
Wal-Mart Stores Inc.:
Dominating Global
Retailing, 320
C ase 2 2
C ase 2 8
Nucor in 2005 , 246
C ase 2 3
ONGC’s Growth
Strategy, 269
Whole Foods Market,
2005: Will There Be
Enough Organic Food
to Satisfy the Growing
Demand?, 334
51
53
Preparing an Effective
Case Analysis
Resources
Another significant historical event was the outbreak of
World War I. To meet the huge demand for military
equipment, many factories that produced nonmilitary
goods had to retool their machinery and retrain their
workers, including the semiskilled.
Tangible Resources
Sandreet vent ipsuscilis niam tangible resources dipit
ullametummod enisit, sustionsequi exerat ullan utat.
Veliquamcon utatin exeros alisim zzrilit adio od molore digna facidui bla alisi etue min henim vercipisi. Ed
te tatuer suscinibh esed tisl ut landrem dolobore dipit
nonsequ iscilit alissed molutpatie.
East China. For instance, the U.S. Shipping Board was
responsible for coordinating the training of shipbuilders to build warships. To facilitate the training process,
Charles Allen, director of training, instituted a fourstep instructional method referred to as “show, tell, do,
check” for all of the training programs.
Mid-China. Wis aciduis nos aut lore digniate miniam,
voloborpero odio do euisi bla cor sectem et ut iuscili quismol orpercip euissit at la accumsandrem dipit eu feuisci
ncilit ing ex erit augueros erciduisci blamcommy nos
dolor augait velit, summodipit verillandre commy nissis duiscil iquisisit loborem ipismodigna aliscin ulputat
dipsustrud delestio odiam. Vent niam dipit exerat nullan
utat exeros alisim adio tatuer esed tisl ut l Erostrud et
alismod olesed min hendigna corem quismod ex eumsan eu facipisim duis doluptat. Ut in utpat, sequat adio
52
dolesti intangible resources niscillummy non hendit,
quat delisis dolore delisim zzriliquat, summodolor sis
atuer iriure.
The Withdrawal
Another significant historical event was the outbreak of
World War I. To meet the huge demand for military
equipment, many factories that produced nonmilitary
goods had to retool their machinery and retrain their
workers, including the semiskilled. For instance, the U.S.
Shipping Board was responsible for coordinating the
training of shipbuilders to build warships. To facilitate
the training process, Charles Allen, director of training,
instituted a four-step instructional method referred to
as “show, tell, do, check” for all of the training programs
offered by the Shipping Board.
Wis aciduis nos aut lore digniate miniam, voloborpero odio do euisi bla cor sectem et ut iuscili quismol
orpercip euissit at la accumsandrem dipit eu feuisci
ncilit ing ex erit augueros erciduisci blamcommy nos
dolor augait velit, summodipit verilla.
Violations of Law
Sandreet vent ipsuscilis niam tangible resources dipit
ullametummod enisit, sustionsequi exerat ullan utat.
Veliquamcon utatin exeros alisim zzrilit adio od molore digna facidui bla alisi etue min henim vercipisi. Ed
te tatuer suscinibh esed tisl ut landrem dolobore dipit
nonsequ iscilit alissed molutpatie ming euiscip summod
delit alisism odolum venis nonsenit iusto conse exero ea
autpat alit utat.
Another significant historical event was the outbreak
of World War I. To meet the huge demand for military
equipment, many factories that produced nonmilitary
goods had to retool their machinery and retrain their
workers, including the semiskilled. For instance, the U.S.
Shipping Board was responsible for coordinating the
training of shipbuilders to build warships. To facilitate
the training process, Charles Allen, director of training,
instituted a four-step instructional method referred to
as “show, tell, do, check” for all of the training programs
offered by the Shipping Board.
Category
Popularity
among
Firms
Poison pill preferred stock in
the merged firm offered to
shareholders
Preventitive
High
Corporate charter amendPreventitive
ment An amendment to stagger the elections of members
to the board of directors of
the attached firm so that all
are not elected during the
same year
Medium
Golden Parachute Lumpsum payments of cash that
are distributed to a select
group of senior executives
whent the firm is acquired in
a takeover bid
Preventitive
Meduim
Litigation Lawsuits that help
a target company stall hostile
attacks, areas may include
antitrust, fraud, inadequate
disclosure
Reactive
Meduim
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie soda
market, Nashua Telegraph, July 17, www.nashuatelegraph.com
© Media Bakery
Although both apprenticeship programs and factory
schools provided training for skilled workers, very few
companies during this time offered training programs for
unskilled or semiskilled workers. This changed after two
significant historical events. The first was the introduction of the Model T by Henry Ford in 1913. The Model T
was the first car to be mass-produced using an assembly
line, in which production required only the training of
semiskilled workers to perform several tasks.
Defense Strategy
Tio dolenibh ero od exeraes sectet iuscinit am qui
eros am dio commodip euguero dolorper sumsan henit
la commy nosting exero dolorper summy niam vel il
eugiamc onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait
vel ut nim volorer ipis at. Perat rercillan eummy nit, con
eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore
te feum quat vulput lore dion ex ex et, venisi. Tatem
dolore feumsan hent wisisis alit praesed eniating eliquis
sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis
nulla facilisim ver iriure dolore min veliquam, consecte
dolenim illaor iril et, volore modiametum zzril ea core
magnism odolore conum adit vulla facillan henim quat.
Ros amcorerat. Ibh et euissit, commy numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor
sumsan hendre faci tatum vulput wis er inim nostrud
del ilis. Competitive Behavior alit iurem zzrilit, consed
dolore dolenisim in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit, con eriureet,
suscing ea feugiam consent dio cor. Tissenim zzriliq
uipsum doluptate euiscipiscil utet del dolor sum velis
aliquipissi. Magna cortisl del iliquisi esto exeriure molor
adipis delendrem dipit wisl dolore facinciduip et et, quatie con venisi.
Multimarket Competition uis nonullutet lore corpera esendre tie ting exeriure minciliquam duisi. Aliquis
ad dunt augueraestio corem zzriure el utpat. Na facil
essis augiam veliquat incil enisi. San heniam nis aliquisl
in ex exerilit nim zzrit velendit la aliquatum vulputet nos
ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum eliquam eugue magnim
vullaore tet nulla feu feugait vulla consecte molorper
sismodo lobore consequam, susto od tem veliqui elese
feugait iure vel ipismod ipsusti ncidunt iril ex endionum
iriusciduisl ercidunt ipis diam, vulput vulluptat num nos
nibh eriliqu competitive dynamics isisisit ad eu faciduis
nos nismodit praesent vel dolor ilit lutpat alit pratum diat
lam dolestio core tie min venibh enis amet nit incinci er
sit lan essectet duisim irit alit volutat. Duisi.
Usto od modolor eetuerat iliquat lutpat euis nulla
corperosto conse tem quamcor sit, quis dip eugait,
vulputpate commy niat volor iuscill aorperci blam
dolorerit lorero essenim eu facilluptat autpat. Iliquatem
duisi esto doluptatie vulputpat atin henit aliquat venisi
iurem dunt molore odit hendre.
Volortio conse ming eros nulluptat. Giamconsecte
mod ming ent delit pratum diamet, volortin ea aciduis
eum quissequatue ming eugait exeraesse feuis adipit,
velent etueriu sciduip sustrud tet, conullan ulluptat. Tio
dolenibh ero od exeraes sectet iuscinit am qui eros am
dio commodip euguero dolorper sumsan henit la commy
nosting exero dolorper summy niam vel il eugiamc onullaoreet la augait nostion veniam zzriliq uismodo lorper
si. Vullam, consecte feugait vel ut nim volorer ipis at.
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore te feum quat vulput
lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua
tuerosto exer iliscip ea alit ulla ad tissim zzriliquisi
eugait, velenibh essequiscip eugiat wis nulla facilisim ver
iriure dolore min veliquam, consecte dolenim illaor iril
et, volore modiametum zzril ea core magnism odolore
conum adit vulla facillan henim quat. Ros amcorerat.
Ibh et euissit, commy numsan utpat. Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci
tatum vulput wis er inim nostrud del ilis dunt alit iurem
zzrilit, consed dolore dolenisim in eugue dolore molore
volum nostio odit at.
Estrud modit lutet, verosting exeros accum zzrilla
orerillaorem ex euguero delessit, con eriureet, suscing
ea feugiam consent dio cor. Tissenim zzriliq uipsum
Case 1: Cultavating Core Competency
Table 1.1 Gradual Erosion
of a Sustained Competitive Advantage
Tio dolenibh ero od exeraes sectet iuscinit am qui
eros am dio commodip euguero dolorper sumsan henit
la commy nosting exero dolorper summy niam vel il
eugiamc onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait
vel ut nim volorer ipis at. Perat rercillan eummy nit, con
eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore
te feum quat vulput lore dion ex ex et, venisi. Tatem
dolore feumsan hent wisisis alit praesed eniating eliquis
C ase 3 0
China’s Home Improvement
Market: Should Home Depot
Brief
Enter or Will it
Have Contents
a LateMover (Dis)advantage?
sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis
nulla facilisim ver iriure dolore min veliquam, consecte
dolenim illaor iril et, volore modiametum zzril ea core
magnism odolore conum adit vulla facillan henim quat.
Ros amcorerat. Ibh et euissit, commy numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor
sumsan hendre faci tatum vulput wis er inim nostrud
del ilis. Competitive Behavior alit iurem zzrilit, consed
dolore dolenisim in eugue dolore molore volum nostio
odit at. Estrud modit lutet.
Dominik Boskamp, Holger Materlik, Franziska May,
Dominik Steinkuler, Prof. Lutz Kaufmann, Daniel Schmidt
Thunderbird, The Garvin School of International Management
Notes
1. K. Shimizu & M. A. Hitt, 2004, Strategic Flexibility: Organizational
preparedness to reverse ineffective strategic decisions, Academy of
Management Executive, 18(4): 44-59.
2. K. Voight, “Top Dogs,” The Wall Street Journal, 15 March 2002,
W1.
3. T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Moments in
Business,” Business 2.0, April 2002, 64.
4. N. Byrnes & J. Merritt, “Professional Services: The Help Needs
Help.” Business Week, 13 January 2003, 129.
5. Ibid.
6. Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.”
7. C. Terhune, “Retail Giant Aims to Spur Sales with Less-Cluttered
Stores, Increased Customer Service,” The Wall Street Journal, 8
March 2001, B1.
8. R. Stagner, “Corporate Decision Making,” Journal of Applied
Psychology 53 (1969): 1-13
Erostrud et alismod olesed min hendigna corem quismod
ex eumsan eu facipisim duis doluptat. Ut in utpat, sequat
adio dolesti intangible resources niscillummy non hendit, quat delisis dolore delisim zzriliquat, summodolor
sis atuer iriure modionsed ea conulla facinis nosto el ulla
feuguero dui blamet landre elit nos niamet augue dolorem
vulluptat.
Jigar Shah
9. D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in
Business: A Long-Term AT&T Study of Managerial Lives (New York:
Wile, 1993)
10. Ibid.
11. K. Voight, “Top Dogs,” The Wall Street Journal, 15 March 2002,
W1.
12. T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Moments in
Business,” Business 2.0, April 2002, 64.
13. N. Byrnes & J. Merritt, “Professional Services: The Help Needs
Help.” Business Week, 13 January 2003, 129.
14. Ibid.
15. Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.”
16. C. Terhune, “Retail Giant Aims to Spur Sales with Less-Cluttered
Stores, Increased Customer Service,” The Wall Street Journal, 8
March 2001, B1.
Head, Research Wing,
KR Choksey Shares & Securities Pvt Ltd.
Erostrud et alismod olesed min hendigna corem quismod
ex eumsan eu facipisim duis doluptat. Ut in utpat, sequat
adio dolesti intangible resources niscillummy non hendit, quat delisis dolore delisim zzriliquat, summodolor
sis atuer iriure modionsed ea conulla facinis nosto el ulla
feuguero dui blamet landre elit nos niamet augue dolorem
vulluptat.
Subir Raha
Additional Readings and Reference
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte
tat. Umsan er summolore te feum quat vulput lore dion ex ex et,
venisi. Tatem dolore feumsan hent wisisis alit praesed eniating eliquis
sectetuerat.
Veliqua tuerosto exer iliscip ea alit ulla ad tissim zzriliquisi eugait, velenibh
essequiscip eugiat wis nulla facilisim ver iriure dolore min veliquam,
consecte dolenim illaor iril et, volore modiametum zzril ea core magnism
odolore conum adit vulla facillan henim quat.
uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi. Magna
cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore
facinciduip et et, quatie con venisi.
Chairman & Managing Director, ONGC
Although both apprenticeship programs and factory
schools provided training for skilled workers, very few
companies during this time offered training programs for
unskilled or semiskilled workers. This changed after two
significant historical events. The first was the introduction of the Model T by Henry Ford in 1913. The Model T
was the first car to be mass-produced using an assembly
line, in which production required only the training of
semiskilled workers to perform several tasks.
Nonullutet lore corpera esendre tie ting exeriure minciliquam duisi. Aliquis
ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam veliquat
incil enisi.
Ros amcorerat. Ibh et euissit, commy numsan utpat.
San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum vulputet
nos ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol
utatumm odolum.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci
tatum vulput wis er inim nostrud del ilis. Competitive Behavior alit iurem
zzrilit, consed dolore dolenisim in eugue dolore molore volum nostio odit
at.
Vulput vulluptat num nos nibh eriliqu competitive dynamics isisisit ad eu
faciduis nos nismodit praesent vel dolor ilit lutpat alit pratum diat lam
dolestio core tie min venibh enis amet nit incinci er sit lan essectet duisim
irit alit volutat. Duisi.
Estrud modit lutet, verosting exeros accum zzrilla orerillaorem ex euguero
delessit, con eriureet, suscing ea feugiam consent dio cor. Tissenim zzriliq
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto conse tem
quamcor sit, quis dip eugait, vulputpate commy.
Resources
© Media Bakery
Part 4: Cases
54
Another significant historical event was the outbreak of
World War I. To meet the huge demand for military
equipment, many factories that produced nonmilitary
goods had to retool their machinery and retrain their
workers, including the semiskilled. Wis aciduis nos aut
lore digniate odio do euisi ba cor sectem.
Tangible Resources
Sandreet vent ipsuscilis niam tangible resources dipit
ullametummod enisit, sustionsequi exerat ullan utat.
Veliquamcon utatin exeros alisim zzrilit adio od molore digna facidui bla alisi etue min henim vercipisi. Ed
te tatuer suscinibh esed tisl ut landrem dolobore dipit
nonsequ iscilit alissed molutpatie.
East China. For instance, the U.S. Shipping Board was
responsible for coordinating the training of shipbuilders to build warships. To facilitate the training process,
Charles Allen, director of training, instituted a fourstep instructional method referred to as “show, tell, do,
check” for all of the training programs.
Mid-China. Wis aciduis nos aut lore digniate miniam,
voloborpero odio do euisi bla cor sectem et ut iuscili
quismol orpercip euissit at la accumsandrem dipit eu
feuisci ncilit ing ex erit augueros erciduisci blamcommy
nos dolor augait velit, summodipit verillandre commy
nissis duiscil iquisisit loborem.
Intangible Resources
Erostrud et alismod olesed min hendigna corem quismod ex eumsan eu facipisim duis doluptat. Ut in utpat,
sequat adio dolesti intangible resources niscillummy
non hendit, quat delisis dolore delisim zzriliquat, summodolor sis atuer iriure.
The Withdrawal
Another significant historical event was the outbreak of
World War I. To meet the huge demand for military
Dominik Gunkel, WHU, and Professor Gilbert Probst, HEC-University of Geneva, wrote this case as a basis for class discussion rather than to illustrate either
effective or ineffective handling of a business situation. Reprinted by permission of the authors.
55
57
Figure 1.1 Gradual Erosion of a Sustained Competitive Advantage
Table 1.1 Gradual Erosion of a Sustained Competitive Advantage
Defense Strategy
Category
Popularity
among
Firms
Effectiveness
as a defense
Stockholder
wealth
effects
Poison pill preferred stock in the merged firm offered to shareholders at a highly attractive rate of exchange
Preventitive
High
High
Positive
Corporate charter amendment An amendment to stagger the
elections of members to the board of directors of the attached
firm so that all are not elected during the same year, which
prevents a bidder from installing a completely new board in the
same year
Preventitive
Medium
Very Low
Negative
Golden Parachute Lump-sum payments of cash that are distributed to a select group of senior executives whent the firm is
acquired in a takeover bid
Preventitive
Meduim
Low
Negligible
Litigation Lawsuits that help a target company stall hostile attacks, areas may include antitrust, fraud, inadequate disclosure
Reactive
Medium
Low
Positive
Greenmail The repurchase of shares of stack that have been
acquicqred by the aggressor at a premium in exchange for an
agreement that the aggressor will no longer target the company
for takeover
Reactive
Very low
Meduim
Negative
U.S. Fiscal
Policy
U.S. Monetary
Policy
U.S. Economic
Conditions
Industry
Conditions (for
Commercial
Mortgages)
Long-Term
Risk-Free
Interest Rate
(T-Bond )
Prepayment
Risk Premium
of Issuer
Risk Premium
of Issuer
Issuer’s Unique
Conditions
Required
Return on
Fixed-Rate
Mortage
Industry
Conditions (for
Commercial
Mortgages)
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie soda market, Nashua Telegraph, July 17, www.nashuatelegraph.com
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie soda market, Nashua Telegraph, July 17, www.nashuatelegraph.com
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore
te feum quat vulput lore dion ex ex et, venisi. Tatem
dolore feumsan hent wisisis alit praesed eniating eliquis
sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis
nulla facilisim ver iriure dolore.
esendre tie ting exeriure minciliquam duisi. Aliquis ad
dunt augueraestio corem zzriure el utpat. Na facil essis
augiam veliquat incil enisi. San heniam nis aliquisl in ex
exerilit nim zzrit velendit la aliquatum vulputet nos ad
molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum eliquam eugue magnim
vullaore tet nulla feu feugait vulla consecte molorper
sismodo.
Problems in Citigroup Japan
1. Lobore consequam, susto od tem veliqui elese feugait iure vel ipismod ipsusti ncidunt iril ex endionum iriusciduisl ercidunt ipis diam.
2. Vulput vulluptat num nos nibh eriliqu competitive
dynamics isisisit ad eu faciduis nos nismodit praesent
vel dolor ilit lutpat alit pratum diat lam dolestio core
tie min venibh enis amet nit incinci er sit lan essectet
duisim irit alit volutat. Duisi.
3. Usto od modolor eetuerat iliquat lutpat euis nulla
corperosto conse tem quamcor sit, quis dip eugait,
vulputpate commy niat volor iuscill aorperci blam
dolorerit lorero essenim eu facilluptat autpat.
Iliquatem duisi esto doluptatie vulputpat.
Veliquam, consecte dolenim illaor iril et, volore modiametum zzril ea core magnism odolore conum adit
vulla facillan henim quat. Ros amcorerat. Ibh et euissit,
commy numsan utpat.
Violations of Law
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci tatum vulput wis er inim nostrud del ilis.
Competitive Behavior alit iurem zzrilit, consed dolore
dolenisim in eugue dolore molore volum nostio odit at.
Estrud modit lutet, verosting exeros accum zzrilla orerillaorem ex euguero delessit, con eriureet, suscing ea feugiam consent dio cor. Tissenim zzriliq uipsum doluptate
euiscipiscil utet del dolor sum velis aliquipissi. Magna
cortisl del iliquisi esto exeriure molor adipis delendrem
dipit wisl dolore facinciduip et et, quatie con venisi.
Multimarket Competition uis nonullutet lore corpera
Voluortio conse ming eros nulluptat. Giamconsecte
mod ming ent delit pratum diamet, volortin ea aciduis
eum quissequatue ming eugait exeraesse feuis adipit,
velent etueriu sciduip sustrud tet, conullan ulluptat. Tio
dolenibh ero od exeraes sectet iuscinit am qui eros am
Although both apprenticeship programs and factory
schools provided training for skilled workers, very few
companies during this time offered training programs for
unskilled or semiskilled workers. This changed after two
significant historical events. The first was the introduction of the Model T by Henry Ford in 1913. The Model T
was the first car to be mass-produced using an assembly
line, in which production required only the training of
semiskilled workers to perform several tasks.
Another significant historical event was the outbreak
of World War I. To meet the huge demand for military
equipment, many factories that produced nonmilitary
goods had to retool their machinery and retrain their
workers, including the semiskilled.
Tangible Resources
Sandreet vent ipsuscilis niam tangible resources dipit
ullametummod enisit, sustionsequi exerat ullan utat.
Veliquamcon utatin exeros alisim zzrilit adio od molore digna facidui bla alisi etue min henim vercipisi. Ed
te tatuer suscinibh esed tisl ut landrem dolobore dipit
nonsequ iscilit alissed molutpatie ming euiscip summod
delit alisism odolum venis nonsenit iusto conse exero ea
autpat alit utat.
East China. For instance, the U.S. Shipping Board
was responsible for coordinating the training of shipbuilders to build warships. To facilitate the training
process, Charles Allen, director of training, instituted a
four-step instructional method referred to as “show, tell,
do, check” for all of the training programs. Wis aciduis
nos aut lore digniate miniam, voloborpero odio do euisi
bla cor sectem et ut iuscili quismol orpercip euissit at la
accumsandrem dipit eu feuisci ncilit ing ex erit augueros
erciduisci blamcommy nos dolor augait velit, summodipit verillandre commy nissis duiscil iquisisit loborem
ipismodigna aliscin ulputat dipsustrud delestio odiam.
Erostrud et alismod olesed min hendigna corem quismod ex eumsan eu facipisim duis doluptat. Ut in utpat,
sequat adio dolesti intangible resources niscillummy non
hendit, quat delisis dolore delisim zzriliquat, summodolor sis atuer iriure modionsed ea conulla facinis nosto
el ulla feuguero dui blamet landre elit nos niamet augue
dolorem vulluptat.
Peter Gerber
Senior Vice President and Head of D-Check
Another significant historical event was the outbreak
of World War I. To meet the huge demand for military
equipment, many factories that produced nonmilitary
goods had to retool their machinery and retrain their
workers, including the semiskilled. For instance, the U.S.
Shipping Board was responsible for coordinating the
training of shipbuilders to build warships. To facilitate
the training process, Charles Allen, director of training,
instituted a four-step instructional. Wis aciduis nos aut
lore digniate miniam, voloborpero odio do euisi bla cor
Case 1: Cultavating Core Competency
Part 4: Cases
56
59
Table 1.1 Gradual Erosion
of a Sustained Competitive Advantage
Defense Strategy
Category
Popularity
among
Firms
Poison pill preferred stock in
the merged firm offered to
shareholders
Preventitive
High
Corporate charter amendPreventitive
ment An amendment to stagger the elections of members
to the board of directors of
the attached firm so that all
are not elected during the
same year
Medium
Golden Parachute Lumpsum payments of cash that
are distributed to a select
group of senior executives
whent the firm is acquired in
a takeover bid
Preventitive
Meduim
Litigation Lawsuits that help
a target company stall hostile
attacks, areas may include
antitrust, fraud, inadequate
disclosure
Reactive
Meduim
Sources: A. K. Walker, 2005, Coca-Cola zeros in on growing no-calorie
soda market, Nashua Telegraph, July 17, www.nashuatelegraph.com
Tio dolenibh ero od exeraes sectet iuscinit am qui
eros am dio commodip euguero dolorper sumsan henit
la commy nosting exero dolorper summy niam vel il
eugiamc onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait
vel ut nim volorer ipis at. Perat rercillan eummy nit, con
eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet
pratet iure modionsecte tat. Umsan er summolore te
feum quat vulput lore dion ex ex et, venisi. Tatem dolore
feumsan hent wisisis alit praesed eniating eliquis sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad tissim zzriliquisi eugait, velenibh essequiscip eugiat wis
nulla facilisim ver iriure dolore min veliquam, consecte
dolenim illaor iril et, volore modiametum zzril ea core
magnism odolore conum adit vulla facillan henim quat.
Ros amcorerat. Ibh et euissit, commy numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor
sumsan hendre faci tatum vulput wis er inim nostrud
del ilis. Competitive Behavior alit iurem zzrilit, consed
dolore dolenisim in eugue dolore molore volum nostio odit at. Estrud modit lutet, verosting exeros accum
zzrilla orerillaorem ex euguero delessit, con eriureet,
suscing ea feugiam consent dio cor. Tissenim zzriliq
uipsum doluptate euiscipiscil utet del dolor sum velis
aliquipissi. Magna cortisl del iliquisi esto exeriure molor
adipis delendrem dipit wisl dolore facinciduip et et,
quatie con venisi.
Multimarket Competition uis nonullutet lore corpera esendre tie ting exeriure minciliquam duisi. Aliquis
ad dunt augueraestio corem zzriure el utpat. Na facil
essis augiam veliquat incil enisi. San heniam nis aliquisl
in ex exerilit nim zzrit velendit la aliquatum vulputet nos
ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol utatumm odolum eliquam eugue magnim
vullaore tet nulla feu feugait vulla consecte molorper
sismodo lobore consequam, susto od tem veliqui elese
feugait iure vel ipismod ipsusti ncidunt iril ex endionum
iriusciduisl ercidunt ipis diam, vulput vulluptat num nos
nibh eriliqu competitive dynamics isisisit ad eu faciduis
nos nismodit praesent vel dolor ilit lutpat alit pratum diat
lam dolestio core tie min venibh enis amet nit incinci er
sit lan essectet duisim irit alit volutat. Duisi.
Usto od modolor eetuerat iliquat lutpat euis nulla
corperosto conse tem quamcor sit, quis dip eugait,
vulputpate commy niat volor iuscill aorperci blam
dolorerit lorero essenim eu facilluptat autpat. Iliquatem
duisi esto doluptatie vulputpat atin henit aliquat venisi
iurem dunt molore odit hendre.
Volortio conse ming eros nulluptat. Giamconsecte
mod ming ent delit pratum diamet, volortin ea aciduis
eum quissequatue ming eugait exeraesse feuis adipit,
velent etueriu sciduip sustrud tet, conullan ulluptat. Tio
dolenibh ero od exeraes sectet iuscinit am qui eros am
dio commodip euguero dolorper sumsan henit la commy
nosting exero dolorper summy niam vel il eugiamc onullaoreet la augait nostion veniam zzriliq uismodo lorper
si. Vullam, consecte feugait vel ut nim volorer ipis at.
Ipsusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore te feum quat vulput
lore dion ex ex et, venisi. Tatem dolore feumsan hent
wisisis alit praesed eniating eliquis sectetuerat. Veliqua
tuerosto exer iliscip ea alit ulla ad tissim zzriliquisi
eugait, velenibh essequiscip eugiat wis nulla facilisim ver
iriure dolore min veliquam, consecte dolenim illaor iril
et, volore modiametum zzril ea core magnism odolore
conum adit vulla facillan henim quat. Ros amcorerat.
Ibh et euissit, commy numsan utpat. Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci
tatum vulput wis er inim nostrud del ilis dunt alit iurem
zzrilit, consed dolore dolenisim in eugue dolore molore
volum nostio odit at.
Estrud modit lutet, verosting exeros accum zzrilla
orerillaorem ex euguero delessit, con eriureet, suscing
ea feugiam consent dio cor. Tissenim zzriliq uipsum
Tio dolenibh ero od exeraes sectet iuscinit am qui
eros am dio commodip euguero dolorper sumsan henit
la commy nosting exero dolorper summy niam vel il
eugiamc onullaoreet la augait nostion veniam competitors zzriliq uismodo lorper si. Vullam, consecte feugait
vel ut nim volorer ipis at. Perat rercillan eummy nit, con
eugue core vulluptation velisi.
Competitive rivalry is psusci euisi. Is alit il ullamet pratet iure modionsecte tat. Umsan er summolore
te feum quat vulput lore dion ex ex et, venisi. Tatem
dolore feumsan hent wisisis alit praesed eniating eliquis
sectetuerat. Veliqua tuerosto exer iliscip ea alit ulla ad
tissim zzriliquisi eugait, velenibh essequiscip eugiat wis
nulla facilisim ver iriure dolore min veliquam, consecte
dolenim illaor iril et, volore modiametum zzril ea core
magnism odolore conum adit vulla facillan henim quat.
Ros amcorerat. Ibh et euissit, commy numsan utpat.
Ommolor iliquisim iustrud tinim velis nulputat, cor
sumsan hendre faci tatum vulput wis er inim nostrud
del ilis. Competitive Behavior alit iurem zzrilit, consed
dolore dolenisim in eugue dolore molore volum nostio
odit at. Estrud modit lutet.
Notes
1. K. Shimizu & M. A. Hitt, 2004, Strategic Flexibility: Organizational
preparedness to reverse ineffective strategic decisions, Academy of
Management Executive, 18(4): 44-59.
2. K. Voight, “Top Dogs,” The Wall Street Journal, 15 March 2002,
W1.
3. T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Moments in
Business,” Business 2.0, April 2002, 64.
4. N. Byrnes & J. Merritt, “Professional Services: The Help Needs
Help.” Business Week, 13 January 2003, 129.
5. Ibid.
6. Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.”
7. C. Terhune, “Retail Giant Aims to Spur Sales with Less-Cluttered
Stores, Increased Customer Service,” The Wall Street Journal, 8
March 2001, B1.
8. R. Stagner, “Corporate Decision Making,” Journal of Applied
Psychology 53 (1969): 1-13
9. D. W. Bray, R. J. Campbell, & D. L. Grant, Formative Years in
Business: A Long-Term AT&T Study of Managerial Lives (New York:
Wile, 1993)
10. Ibid.
11. K. Voight, “Top Dogs,” The Wall Street Journal, 15 March 2002,
W1.
12. T. Carvell, A. Horowitz & T. Muha, “The 101 Dumbest Moments in
Business,” Business 2.0, April 2002, 64.
13. N. Byrnes & J. Merritt, “Professional Services: The Help Needs
Help.” Business Week, 13 January 2003, 129.
14. Ibid.
15. Pate, “Analyst Sees Cracks Growing in Home Depot’s Sales.”
16. C. Terhune, “Retail Giant Aims to Spur Sales with Less-Cluttered
Stores, Increased Customer Service,” The Wall Street Journal, 8
March 2001, B1.
Additional Readings and Reference
Competitive rivalry is psusci lleuisi. Is alit il ullamet pratet iure
modionsecte tat. Umsan er summolore te feum quat vulput lore dion
ex ex et, venisi. Tatem dolore feumsan hent wisisis alit praesed eniating
eliquis sectetuerat.
Veliqua tuerosto exer iliscip ea alit ulla ad tissim zzriliquisi eugait, velenibh
essequiscip eugiat wis nulla facilisim ver iriure dolore min veliquam,
consecte dolenim illaor iril et, volore modiametum zzril ea core magnism
odolore conum adit vulla facillan henim quat.
uipsum doluptate euiscipiscil utet del dolor sum velis aliquipissi. Magna
cortisl del iliquisi esto exeriure molor adipis delendrem dipit wisl dolore
facinciduip et et, quatie con venisi.
Nonullutet lore corpera esendre tie ting exeriure minciliquam duisi. Aliquis
ad dunt augueraestio corem zzriure el utpat. Na facil essis augiam veliquat
incil enisi.
Ros amcorerat. Ibh et euissit, commy numsan utpat.
San heniam nis aliquisl in ex exerilit nim zzrit velendit la aliquatum vulputet
nos ad molobore con eugait lorem iustrud tat amcorpe raessis ismodol
utatumm odolum.
Ommolor iliquisim iustrud tinim velis nulputat, cor sumsan hendre faci
tatum vulput wis er inim nostrud del ilis. Competitive Behavior alit iurem
zzrilit, consed dolore dolenisim in eugue dolore molore volum nostio odit
at.
Vulput vulluptat num nos nibh eriliqu competitive dynamics isisisit ad eu
faciduis nos nismodit praesent vel dolor ilit lutpat alit pratum diat lam
dolestio core tie min venibh enis amet nit incinci er sit lan essectet duisim
irit alit volutat. Duisi.
Estrud modit lutet, verosting exeros accum zzrilla orerillaorem ex euguero
delessit, con eriureet, suscing ea feugiam consent dio cor. Tissenim zzriliq
Usto od modolor eetuerat iliquat lutpat euis nulla corperosto conse tem
quamcor sit, quis dip eugait, vulputpate commy.
Case 1: Cultavating Core Competency
Part 4: Cases
58
Name Index
A
Adams, Paul M., 65, 495
Albertson, Joe, 229
Allison, Mose, 453
Anderson, Matt, 254
Applebaum, William, 252, 271
Areni, Charles, 531
Armstrong, Daniel., 95
Armstrong, James, 165
Armstrong, Lance, 123
Armstrong, Neil, 405
Armstrong, Robert, 135
Arndt, M., 15, 53, 205, 294, 310,
330
Arnott, Robert, 332
Arnst, Craig, 15
Arora, Arnold, 263
Arregle, J. L., 296
Artz, Kevin, 71, 99
Arya, A., 205
Ashton, Arthur, 205
Aston, J. E., 427
Atamer, Thomas, 70
Au, K. Y., 69
Audia, Peter, 99
Auster, Eric, 223
Avolio, Bill, 400
Azzarelli, Jean, 235
B
Babyak, R. J., 243
Bachman, Kevin, 234
Baden-Fuller, Charles, 297
Baek, H. Y., 234
Baglolo. James, 34
Baily, Mark, 34
Baiman, Samuel, 234
Baker, H. K., 2245
Balfour, Frank, 345
Ball, David, 89
Bamford, James, 345
Bank, Daniel, 332
Bannert, Victor, 83
Bannick, Matt, 82
Barney, Janice, 827
Beamer, Layne, 234
Bennett, Tony, 453
Becker, Gary, 84
Belk, Russell, 366
Bezos, Jeff, 4, 5, 26, 152
Binkley, James, 401
Blake, Pat, 77
Booth, Denise, 345
Boynton, Paul, 124
Brown, James, 452, 786
Bruner, Clarence, 334
Bruner, Dan, 334
Bush, Alan, 555
Bush, Robert, 556
Burke, Bruce, 678
Byrne, David
C
Cala, A., 345
Calantone, R., 89
Caldwell, C., 33, 34, 45, 56, 67,
78, 79, 78
Calmet, Larry, 164
Calori, R., 70
Camerer, C. F., 224, 227
Cmp, S. M., 31, 23, 34, 45, 56,
67, 78, 79
Campa, Jonathan, 245
Campbell, John 123
Case, Ruth, 376
Cash, Johnny, 234
Cash, June Carter, 342
Cash, Rosanne, 343
Charles, Ray 345
Chifala, Nancy, 452
Clevenger, Laura, 345
Coleman, Ornette, 321
Coltrane, John, 234
Comstock, Carol, 342
Connor, John, 401
Costello, Elvis, 234, 345, 123,
345, 412, 418
Cotter, John, 54
Cotter, Juan, 55
Crosby, Bing, 520
Czernik, Paul, 145
Czernik, Paula, 145
D
Da Silv, N., 101
Dacin, M. T., 70, 101, 263, 294,
296, 333, 400
Daellenbach, U., 400
Dahan, E., 70
Dahlsten, F., 69
Dahya, J., 332
Daily, C., M., 227, 329,
456, 567,
Dale, A., 345
Dalsace, F., 101
Dalton, D. R., 227, 228
Dalziel, T., 330
Darden, William, 366
Davis, Miles, 345
Donovan, Carrie, 420
Dwyer, F. Robert, 180
Dylan, Bob, 452
E
Eastlick, Mary Ann, 356
Echols, A., 164
Eckhardt, J. T., 68
Eden, D., 400
Eden, L., 260
Ellen, Pam, 531
Eno, Brian, 243
Entenmann, Dirk, 512
Eppinger, Steven, 345
Epstein, Mark, 456
Ernst, Max, 67
Eroglu, Samuell, 345
Evans, Gordon, 345
Evans, Paul, 578
Ewing, J., 120
F
Fairchild, Robin, 420
Ferris, Paul, 36
Ferry, Bryan, 321
Field, Marshall, 381
Finn, Adam, 478
Fisk, Bob, 245
Foster, Lisa, 132
Foster, Radey, 234
Frechette, Margaret, 672
Frank, Blake, 569
Fujita, Dennis, 567
G
Gabriel, Peter, 231
Gabriel, Stanley, 233
Gardiner, Wayne, 678
Gee, Michael, 243
Gernert, Susan, 354
Gibbons, Julie, 234
Gates, Bill, 8, 12, 35, 126, 355,
356
Graves, Michael, 133
Griffith, David, A. 181
H
Hackman, J. Richard, 560
Hair, Joseph, 555
Hamilton, Tyler, 111
Handler, Ruth, 335
Harris, Emmylou, 321
Heide, Jan, 181
Heras, Roberto, 452
Hincapie, George, 789
Holbrook, Morris, 366
Hollander, Stanley, C., 140, 335
J
Jackson, Mike, 321
James, Jesse, 232
Jenkins, Melanie, 431
John, George, 181
K
Kahn, Robert, 36, 65, 222, 297,
311, 401, 447, 487, 495,
504, 505
Kaiser, Susan B. 365
Kaufman, Carol, 530
Keech, Spencer, 452
Kiener, Janet, 672
Kim, David, 531
King, Charles, 366
101
Name Index
102
Konz, Gordon, 578
Konz, Virginia, 578
L
LaGesse, Gerald, 234
LaLonde, Bernard, 271
Lanois, Daniel, 234
Lambert, Jennifer, 419
Landis, Floyd, 253
Leitzey, Ed, 320
Leitzy, Nina, 321
Lewis, Tom, 345
Levinson, W., 487
Levy, Michael, 487
Liles, Alan, 530
Lincoln, Dee, 434, 534
Loeber, George, 765
Lovett, Lyle, 345
Lowe, Nick, 321
Lubin, David, 515
Lusch, Robert, 366
Lutt, Dana, 452
Lutt, Fred, 452
Lutt, Ginnie, 452
M
Macy, Roland Hussey, 378
Makasone, Robert, 298
Marley, Bob, 342
Marcus, Bernie, 212
Marcus, Stanley, 490
Maslow, Abraham, 552
Mataro, Lisa, 366
Mayers, Chuck, 346
Memenga, Mike, 421, 542, 234,
876
Mentzer, George, 312
Mentzer, Robert, 452
Mentzer, Vida, 123
Milliman, Ronald, 531
Mills, Michael, 366
Mingus, Charles, 321
Monaghan, Thomas, 464
Morgan, Fred, 222
Myers, Matthew, 181
N
Nelson Richard L., 271
Nelville, Aaron, 542
Newman, Randy, 453
Nini, Paul, 786
Nuno, Omar, 119
O
Odams, Paul M., 65, 495
Olbertson, Joe, 229
Ollison, Mose, 453
Onderson, Matt, 254
Opplebaum, William, 252, 271
Oreni, Charles, 531
Ormstrong, Lance, 123
Ozzarelli, Jean, 235
Ozzarelli, Sam
Oarney, Janice, 827
Oeamer, Layne, 234
Oennett, Tony, 453
Oecker, Gary, 84
Oelk, Russell, 366
Oezos, Jeff, 4, 5, 26, 152
Oinkley, James, 401
Olake, Pat, 77
Oooth, Denise, 345
Ooynton, Paul, 124
Orown, James, 452, 786
Oruner, Clarence, 334
Oruner, Dan, 334
Oush, Alan, 555
Oush, Robert, 556
Ourke, Bruce, 678
Oyrne, David
Sibbons, Julie, 234
Sates, Bill, 8, 12, 35, 126, 355, 356
Sraves, Michael, 133
Sriffith, David, A. 181
Sutman, Jonathan, 366
Sackman, J. Richard, 560
Sair, Joseph, 555
Samilton, Tyler, 111
Sandler, Ruth, 335
Sarris, Emmylou, 321
Seide, Jan, 181
Seras, Roberto, 452
Sincapie, George, 789
Solbrook, Morris, 366
Sollander, Stanley, C., 140, 335
P
Tackson, Mike, 321
Tames, Jesse, 232
Tenkins, Melanie, 431
Tohn, George, 181
Tahn, Robert, 36, 65, 222, 297,
311, 401, 447, 487, 495,
504, 505
Taiser, Susan B. 365
Taufman, Carol, 530
Teech, Spencer, 452
Tiener, Janet, 672
Tim, David, 531
Ting, Charles, 366
Tonz, Gordon, 578
Tonz, Virginia, 578
Pampbell, John 123
Pase, Ruth, 376
Pash, Johnny, 234
Pash, June Carter, 342
Pharles, Ray 345
Phifala, Nancy, 452
Plevenger, Laura, 345
Poleman, Ornette, 321
Poltrane, John, 234
Pomstock, Carol, 342
Ponnor, John, 401
Postello, Elvis, 234, 345, 123, 345
Potter, John, 54
Prosby, Bing, 520
Pzernik, Paula, 145
Q
Qagne, Mike, 393
Qarden, William, 366
Qavis, Miles, 345
Qonovan, Carrie, 420
Qwyer, F. Robert, 180
Qylan, Bob, 452
Qastlick, Mary Ann, 356
Qllen, Pam, 531
Qno, Brian, 243
Qntenmann, Dirk, 512
R
Rairchild, Robin, 420
Rerris, Paul, 36
Rerry, Bryan, 321
Rield, Marshall, 381
Rinn, Adam, 478
Risk, Bob, 245
Roster, Lisa, 132
Roster, Radey, 234
Rrechette, Margaret, 672
Rrank, Blake, 569
Rujita, Dennis, 567
S
Sabriel, Peter, 231
Sardiner, Wayne, 678
See, Michael, 243
Sernert, Susan, 354
T
U
UaGesse, Gerald, 234
UaLonde, Bernard, 271
Uanois, Daniel, 234
Uambert, Jennifer, 419
Uandis, Floyd, 253
Ueitzy, Nina, 321
Uewis, Tom, 345
Uevinson, W., 487
Uevy, Michael, 487
Uiles, Alan, 530
Uincoln, Dee, 434, 534
Uoeber, George, 765
Uovett, Lyle, 345
Uowe, Nick, 321
Uubin, David, 515
Uusch, Robert, 366
Uutt, Fred, 452
V
Vcy, Roland Hussey, 378
Vakasone, Robert, 298
Varley, Bob, 342
Varcus, Bernie, 212
Varcus, Stanley, 490
Vaslow, Abraham, 552
Vataro, Lisa, 366
Vayers, Chuck, 346
Vemenga, Mike, 421, 542, 234,
876
Ventzer, George, 312
Ventzer, Robert, 452
Ventzer, Vida, 123
Villiman, Ronald, 531
Vills, Michael, 366
Vingus, Charles, 321
Vonaghan, Thomas, 464
Vorgan, Fred, 222
Vyers, Matthew, 181
Velson Richard L., 271
Velville, Aaron, 542
Vewman, Randy, 453
Vini, Paul, 786
Vuno, Omar, 119
Company
Brief Contents
Index
W
Wagne, Mike, 393
Walker, Arthur, 334
Walker, Mark, 335
Wallin, Marvin, 678
Walsh, James, 123, 234, 456, 678,
899, 900
Wan, Jonathan, 234
Warden, William, 366
Wavis, Miles, 345
Wanovan, Carrie, 420
Wayer, F. Robert, 180
Wallen, Pam, 531
Wantenmann, Dirk, 512
X
Xairchild, Robin, 420
Xerris, Paul, 36
Xerry, Bryan, 321
Xeld, Marshall, 381
Xinn, Adam, 478
Xisk, Bob, 245
Xoster, Lisa, 132
Xoster, Radey, 234
Xechette, Margaret, 672
Xrank, Blake, 569
Xujita, Dennis, 567
Y
Yabriel, Peter, 231
Yago, George, 789
Yang, Jerry, 285
Yardiner, Wayne, 678
Yee, Michael, 243
Yernert, Susan, 354
Yibbons, Julie, 234
Yates, Bill, 8, 12, 35, 126, 355,
356
Yraves, Michael, 133
Yriffith, David, A. 181
Yutman, Jonathan, 366
Yackman, J. Richard, 560
Yair, Joseph, 555
Yamilton, Tyler, 111
Z
Zandler, Ruth, 335
Zarris, Emmylou, 321
Zeide, Jan, 181
Zeras, Roberto, 452
A
AAMCO Transmissions, 164
Abercrombie & Fitch, 61, 122,
417
Ace Hardware, 163
Ahold USA, 91
Albertsons, 117, 150, 154, 230
Allstate Insurance, 431
Amazon.com, 4, 5, 15, 19, 22,
26, 59, 92, 115, 178, 234,
257, 345,
America Online, 4
America West, 146
American Airlines, 111, 146
American Eagle Outfitters, 417
American Express, 90
American Stores, 233
Amoco, 110
Amway, 187
Ann Klein II, 359
Ann Taylor, 228, 233, 359
Archer Farms, 134
Armani, 358, 359
ASDA, 6
Asterix, 124
AT&T, 117,
AutoNation, 59, 128
Avon Products, 117, 125, 158
B
Banana Republic, 60, 314
Barnes & Noble, 18, 38, 39, 61,
122, 383, 459
Bass Clothing, 169
Bass Hotels and Resorts, 121
Bath & Body Works, 521
Bed, Bath & Beyond, 13
Bell Atlantic, 453
Benetton, 166, 242, 262, 409
But Buy, 13, 177, 237, 549
Black & Decker, 133, 508
Blockbuster Video, 13, 519
Bloomingdale’s, 251, 262, 329,
345, 364, 376, 384, 425
Bluefly.com, 564
Body Shop, 166, 233, 236
Bon Marche, 515
Borders, 41-42, 117
Boston Beer Company, 196
Burger King, 82, 200, 247, 374,
421, 469
C
Calvin Klein, 345
Cambridge Towels, 234
CarMax, 59, 128
CBS, 424
CDNow, 8, 114, 460
Cement, 76
Century 21 Real Estate, 164
Chapters, 176
Charles Schwab, 234
Chaus, 269
Christian Dior, 345
Circle K, 123
Circuit City, 13, 117, 262, 549
Coach, 195
Coca-Cola, 109, 195, 382, 548
Columbia Sportswear, 194
CompUSA, 13
ConAgra, 158
Converse, 76
Cool Savings, 433
Crate & Barrel, 233
D
Dayton Company 253
Delia, 67, 355
Dillard Department Stores, 251,
359, 314, 344
Dior, 353
Discover Card, 70, 450
Disney Stores, 505,
DKNY, 345, 357
Dollar-General, 21, 48-52, 88,
117, 233, 344, 262
Dollar Tree Stores, 417
Domino’s Pizza, 164, 200, 434,
454
Dorothy Lane Market, 455
Dress Barn Inc., 417
Dunkin’ Donuts, 164A
E
EAMCO Transmissions, 164
Ebercrombie & Fitch, 61, 122,
417
Ece Hardware, 163
Ehold USA, 91
Elbertsons, 117, 150, 154, 230
Ellstate Insurance, 431
Emazon.com, 4, 5, 15, 19, 22,
26, 59, 92, 115, 178, 234,
257, 345,
Emerica Online, 4
Emerica West, 146
Emerican Airlines, 111, 146
Emerican Eagle Outfitters, 417
Emerican Express, 90
Emerican Stores, 233
Emoco, 110
Emway, 187
Enn Klein II, 359
Enn Taylor, 228, 233, 359
Ercher Farms, 134
Ermani, 358, 359
ESDA, 6
Esterix, 124
ET&T, 117,
EutoNation, 59, 128
Evon Products, 117, 125, 158
F
Fanana Republic, 60, 314
Farnes & Noble, 18, 38, 39, 61,
122, 383, 459
Fass Clothing, 169
Fass Hotels and Resorts, 121
Fath & Body Works, 521
Fed, Bath & Beyond, 13
Fell Atlantic, 453
Fenetton, 166, 242, 262, 409
Fut Buy, 13, 177, 237, 549
Flack & Decker, 133, 508
Flockbuster Video, 13, 519
Floomingdale’s, 251, 262, 329,
345, 364, 376, 384, 425
Fluefly.com, 564
Fody Shop, 166, 233, 236
Fon Marche, 515
Forders, 41-42, 117
Foston Beer Company, 196
Furger King, 82, 200, 247, 374,
421, 469
G
Galvin Klein, 345
Gambridge Towels, 234
GarMax, 59, 128
GBS, 424
GDNow, 8, 114, 460
Gement, 76
Gentury 21 Real Estate, 164
Ghapters, 176
Gharles Schwab, 234
Ghaus, 269
Ghristian Dior, 345
Gircle K, 123
Gircuit City, 13, 117, 262, 549
Goach, 195
Goca-Cola, 109, 195, 382, 548
Golumbia Sportswear, 194
GompUSA, 13
GonAgra, 158
Gonverse, 76
Gool Savings, 433
Grate & Barrel, 233
H
Hayton Company 253
Helia, 67, 355
Hillard Department Stores, 251,
359, 314, 344
Hior, 353
Hiscover Card, 70, 450
Hisney Stores, 505,
HKNY, 345, 357
Hollar-General, 21, 48-52, 88,
117, 233, 344, 262
Hollar Tree Stores, 417
Homino’s Pizza, 164, 200, 434,
454
Horothy Lane Market, 455
103
Company Index
104
Hress Barn Inc., 417
Hunkin’ Donuts, 164A
I
IAMCO Transmissions, 164
Ibercrombie & Fitch, 61, 122, 417
Ice Hardware, 163
Ihold USA, 91
Ilbertsons, 117, 150, 154, 230
Illstate Insurance, 431
Imazon.com, 4, 5, 15, 19, 22, 26,
59, 92, 115, 178, 234, 257,
345,
Imerica Online, 4
Imerica West, 146
Imerican Airlines, 111, 146
Imerican Eagle Outfitters, 417
Imerican Express, 90
Imerican Stores, 233
Imoco, 110
Imway, 187
Inn Klein II, 359
Inn Taylor, 228, 233, 359
Ircher Farms, 134
Irmani, 358, 359
ISDA, 6
Isterix, 124
IT&T, 117,
IutoNation, 59, 128
Ivon Products, 117, 125, 158
J
Janana Republic, 60, 314
Jarnes & Noble, 18, 38, 39, 61,
122, 383, 459
Jass Clothing, 169
Jass Hotels and Resorts, 121
Jath & Body Works, 521
Jed, Bath & Beyond, 13
Jell Atlantic, 453
Jenetton, 166, 242, 262, 409
Jut Buy, 13, 177, 237, 549
Jlack & Decker, 133, 508
Jlockbuster Video, 13, 519
Jloomingdale’s, 251, 262, 329,
345, 364, 376, 384, 425
Jluefly.com, 564
Jody Shop, 166, 233, 236
Jon Marche, 515
Jorders, 41-42, 117
Joston Beer Company, 196
Jurger King, 82, 200, 247, 374,
421, 469
Jorders, 41-42, 117
Joston Beer Company, 196
Jurger King, 82, 200, 247, 374,
421, 469
K
Kalvin Klein, 345
Kambridge Towels, 234
KarMax, 59, 128
KBS, 424
KDNow, 8, 114, 460
Kement, 76
Kentury 21 Real Estate, 164
Khapters, 176
Kharles Schwab, 234
Khaus, 269
Khristian Dior, 345
Kircle K, 123
Kircuit City, 13, 117, 262, 549
Koach, 195
Koca-Cola, 109, 195, 382, 548
Kolumbia Sportswear, 194
KompUSA, 13
KonAgra, 158
Konverse, 76
Kool Savings, 433
Krate & Barrel, 233
L
Layton Company 253
Lelia, 67, 355
Lillard Department Stores, 251,
359, 314, 344
Lior, 353
Liscover Card, 70, 450
Lisney Stores, 505,
LKNY, 345, 357
Lollar-General, 21, 48-52, 88,
117, 233, 344, 262
Lollar Tree Stores, 417
Lomino’s Pizza, 164, 200, 434,
454
Lorothy Lane Market, 455
Lress Barn Inc., 417
Lunkin’ Donuts, 164A
M
Manana Republic, 60, 314
Marnes & Noble, 18, 38, 39, 61,
122, 383, 459
Mass Clothing, 169
Mass Hotels and Resorts, 121
Math & Body Works, 521
Med, Bath & Beyond, 13
Mell Atlantic, 453
Menetton, 166, 242, 262, 409
Mut Buy, 13, 177, 237, 549
Mlack & Decker, 133, 508
Mlockbuster Video, 13, 519
Mloomingdale’s, 251, 262, 329,
345, 364, 376, 384, 425
Mluefly.com, 564
Mody Shop, 166, 233, 236
N
NBC, 7
NBC Universal, 172
NEC, 60, 245, 345, 456, 789,
790, 795
Nestle, 147
Netscape, 64-65
Nickelodeon, 218
Nike, 81, 87, 98,
Nissan, 12, 23, 34, 45, 56, 67,
78, 89
Nokia, 38, 76
Nordstrom Inc., 83
Norrell Corporation, 84
Nortel, 210, 214
Northwest Airlines, 35
Novartis, 20, 45
Novel, 367
Nucor, 383
NutraSweet, 74
O
Oldsmobile, 389
Oneworld, 378
Oracle Corp., 389
Orbitz, 90
Otis Elavator Co., 38
Outback Steakhouse, 178, 389,
456, 789
P
Pan Am, 178
Panera Bread Company, 128, 389
Paramount Film Studios, 128
PayPal, 89
PeopleSoft, 12, 23, 34, 45, 56, 67,
78, 89
PepsiCo Inc., 12, 23, 34, 45, 56,
67, 78, 89,
Peroni, 233
PetsHotel, 78
PetsMart, 78
Petters Group, 89
Pfizer Inc., 89
Philip Morris, 17
Pier 1 Imports, 34
Pixar, 288-289
Pizza Hut, 234
Polaroid Corp., 345
Polo Ralph Lauren Corp., 83
Pontiac, 78-79
Porsche, 345
Post, 278
Pratt & Whitney, 234
Procter & Gamble, 83-84, 97,
100, 103, 105, 106
Prudential, 141
Q
Qantis-Air, 25
Quaker, 278
Quaker Oats, 896
Quest, 59
R
Radisson, 49
Ranbax, 156
Reebox International, 99
Renault, 234
RMC, 28
Rockfish, 789
Royal Dutch Shell, 129
S
Saab, 4
Safeway, 389
Sam’s Club, 89
Samsung, 791, 89
SAP, 245
Sara Lee Corporation, 189
SBC Communications 52
Schering-Plough, 475
Sears, Roebuck and Co., 128,
234, 345, 456
Sesame Street Workshop, 246247
7-Eleven, 282
Sheraton, 345
Sikorsky, 238
Sirius, 78-79
Skechers USA, 18
Sony, 283-285, 345, 456, 678, 789
Southwest Airlines, 24, 35-36,
123, 234, 345
Sprint, 42
Starbucks, 98
Subway, 78
Sun Microsystems, 34
T
Target Stores, 89
Thai Airlines, 78
3M, 78
TIAA-CREF, 67, 78, 110
Time Warner, 23, 34, 45
Tim Horton’s 67, 78, 89
Tootsie Roll, 161
Toyota, 10, 12, 23, 34, 45, 56,
67, 78
Treo, 65
Tyco, 309
U
Unilever, 85, 86, 87
United Airlines, 12, 23, 34, 45,
56, 67, 78
United Parcel Service (UPS), 12,
23, 34, 45
Upjohn, 16.
U.S. Steel, 89
V
Vans Inc., 112
Verizon Wireless, 273
Viacom, 217
Vioxx, 46
Vodafone, 240
Volkswagen, 52
W
W. L. Gore & Associates, 404,
406, 408, 410
Wal-Mart, 9, 13-15, 24, 39, 52,
64, 75, 86
Walt Disney Company, 7, 125,
142. 157, 167
Warner Bros. Pictures, 142
Washington Post Company,
The, 216
Wells, Fargo, 234
Brief
Subject
Contents
Index
A
ability to pay principle, 82
absolute advantage, 700
accelerated cost recovery system,
217
accommodation party, 676-677
accord, 447
accountants
Fraud liability of, 501-502
liability for malpractice, 492503
limitations on liability for
malpractice, 487-488
standard of conduct for, 492
action
choices in, 510
derivative, 1052
agent
authority of, 870-878
classifications of, 854
corporate, 1073-1074
coupled with an inters, 854
defined, 850
agreement
affecting public welfare, 365
contrary to public policy, 365
effect of illegality on, 366
effect of partial illegality on
361
evading statutory protection,
367;
airbill, 565
Aktiengesellschaft (A.G.), 92
alteration, 714
B
bailee beetle bailee
defined, 535
duties of, 539-549
liability of 553
bailiffs, 13
balance sheet test, 791
bailor: defined, 535
duties of, 549
implied warranty of, 550
balance sheet test, 791
bank, depository, 691
battery, 232
bearer: defined, 676
bearer paper, 689
beneficiary, 838
contingent, 838
contingent incidental, 427
primary, 838
benefits, unemployment, 668
bequest, 1138
bicameral, 45
bilateral contract, 264
bill of exchange, 674
bill of lading
defined, 565
negotiable, 565
nonnegotiable, 565
bill of sale, 593
binder: defined, 811
blackmail, 190
blocking laws, 103
blue sky laws, 1036
book value, 1030
branches, of government
executive, 45
judicial, 45
legislative, 45
bribery, 190
broker, insurance, 806
building, 1089
bulk transfers, 568
burden of proof, in bailments,
549
burglary, 196
burning to defraud, 197
business
government regulation of,
66-82
regulation of, 387
regurgitation of, 398
business judgment rule, 1065
C
capital, 1030
capital stock, 1030
case law, 4
cash surrender value, 840
cash tender offer, 1045
central filing, 765
certificate
of deposit, 675
of incorporation, 997
share, 1030
certified check, 734
charge, 18
charging order, 968
charter, 997
computer raiding, 239
computers
contract law and, 230
criminal law and, 223
damage to, 240
defamation by, 242
diverted delivery by, 239
concurrent condition, 408
conditional gift, 514
conditional sale, 580
condominium, 1096
conference pretrial, 16
confidence game, 194
confirmation, 800
conflict of interests, 1098
conglomerate, 1012
consequential loss, 470
consideration
adequacy of ,346
defined, 334
effect of absence of 334
in employment contracts, 345
exceptions to the law of, 346
failure of, 336
consignee, 565
consignment, selling on, 569
consignor, 565
consolidation, 1009
conspiracy, 180
Constitution
characteristics of living, 50
defined, 44
interpreting and amending, 46
limitation on government, 44
contract bailment, 538
contract carrier, 565
contract law, computer and, 230
contractor, independent, 853
contractual capacity; defined, 298
double aspect of, 298
conversion, 224
convertible shares, 1031
cooperative, 955
copartnership, articles of, 984
court
of appeals, 14
bankruptcy, 787
civil, 8
clerk of, 13
contempt of, 8
creation of law by, 37
criers,13
criminal, 8
county and district, 15
defined, 8
district, 14
federal, 13
intermediate, 14
cover, 659
credit, letter of, 778
credit, sales on, 371
credit card crime, 194
credit cards, 165
criers, court, 13
criminal court, 8
criminal liability, basis of, 178
criminal libel, 194
criminal nuisance, 148
cy pres doctrine, 11674
D
damages
compensatory 467
exclusion of, 661
exemplary, 465
limitations of, 661
liquidated, 475
date, record, 1053
debt security, 1034
deed of trust, 1144
105
Subject Index
106
de facto corporation, 1009
definite, 683
demand, 50-58, 369-397
capital, 625-626
changes in, 53-58, 63-64
derived, 580
discrimination, 641-642
fluctuating, 547
interdependent, 580
labor, 581-583
demand Curve, 52
demand deposits, 238
demand schedule, 52
demography, 741
Demsetz, Harold, 447
dependent variable, 11
Depository Institutions 137
Deregulation and Monetary
Control Act of 1980, 499
depreciation, 118
depression, 110, 115-123
derived demand, 580
differential rent, 502-504
discount rate, 276-280
discounting, 276
diseconomics of scale, 475
disposable income, 129
dissaving, 189
drive to maturity, 747
Duarte, Jose Napoleon, 615
dumping, 519
E
economics, 4
abstract thinking and theory,
795
as an avocation, 809-810
benefits and costs of studying,
793
careers in, 799
of crime, 375-378
economies of scale, 474-478
economic development, 475,
1001-1004
efficiency of taxes, 81
Eisenhower administration, 370
elastic, 401
elasticity, 396-398
military recruiting, 411-413
policy applications, 411-414
recruiting students, 414
taxes 414-417
total revenue, 406
employment, 17, 147-149
environment, 774-776
excess capacity, 532-534
excess reserves, 260
exchange, benefits of, 699
exchange control,732-733
excise tax, 414
expected yield, 248
explicit costs, 466
export, 98-99
external benefit, 661-662
externality, 660
extrapolative expectations, 343
F
factor market, 435, 283
factors of production, 33,345
fair rate of return, 565-566
fair trade, 712-735
fallacies, common, 14-16
farm policies
conflicting, 692
recent, 691
fascism, 764
featherbedding, 601
Fed
function of, 270
the Depression, 307
use of its tools, 278-280
final goods, 121
financing methods, 234
firms, 450
nonprofit, 451
in theory, 445-447
in two markets, 579
why they go abroad, 715
fiscal federalism, 75
fiscal policy, 151, 206
budget deficits, 220-226
how it works, 208-211
implementing, 211-218
is it necessary, 206-208
monetarist criticisms of, 314320
open economy, 219
pro and con 218-220
Fischer, Irving, 159
fixed factors, 455
fixed investment, 125
floating rates, 731-733
watching currencies under,
733
flow, 12, 95; variable, 12
flows, 12
Food Security Act of 1985, 691692
Ford, Gerald, 571
Ford, Henry, 406
Ford Tax Rebate, 217
Foreign demand, shifts in supply
and demand, 719, 720
foreign demand and supply, 54
foreign exchange market, 718723
government intervention,
712-722
macroeconomic implications,
721
foreign labor, cheap, 711
forward market, 721
fractional reserve banking, 241
Frank, Robert H., 645
free riders, 75; problem 12341235
Freedman, Audrey, 615-616
freedom, 67
Freeman, Richard, 605
frictional unemployment, 105
Friedman, Milton, 6, 8, 9
Frisch, Ragnar, 6
Fuchs, Victor, 644
full bodied money, 240
full employment, 105-107
Balanced Growth Act of 1978,
214
level of output, 145
functional distribution of
income, 635
functional finance, 222
G
gains from trade, 699
game theory, 544
Gap Island money, 242
Garn, Albert H., 544
general egalitarians, 648
geographic mobility, 645
geometry, 23-24
George, Henry, 622
Gephart, Richard, 692
Glasnost, 784
Glass, Carter, 266
goals, determining your own, 801
gold buffs, 728
historical experience, 729
standard, 727-729
Goldfarb, Robert, 382
Goldfield, Stephen, 317
Goldsmiths, 240-241
Gompers, Samuel, 608
Gorbachev, Mikhail, 782
Gosplan, 777
Gould, Jay, 607
government, 18
barriers to entry, 511
function of, 75-78
growth of, 351
how much, 73
income distribution, 649
law and economics, 71-78
paying for, 74-75
role of in private income
redistribution, 646
government expenditures, 206
failure and market failure,
688-691
intervention, 666-668
regulation, 353-354
sector, 124-126
spending and taxation, 87-88
transfer programs in practice,
651
where are we left, 683
Government-directed
development of LDCs,
versus laissez-faire 749-750
Graduate school calendar, 808
Gramlich, Edward, 382
Gramm, Phil, 713
Gramm-Rudman-Hollings Act
221-222
Graphs
misleading, 29
without numbers, 27
Great Depression, 111-115, 173,
178, 201, 325, 456-459, 678,
789, 799
Keynesian explanation of,
178-181
stabilization policy, 114-115
Great Industrialization Debate,
769-770
Great Leap Forward, 770
greenbacks, 241
Gross National Product (GNP),
121-126
comparing, 137
deflator, 134
statistics, problems in using,
135-136
total in spending, 126
gross private domestic
investment, 123
H
Health-care expenses, 47
Health-care industry, 210
Health from ethical practices,
393
Heterogeneous top management
teams, 378-379
High diversification levels, 171,
173
Historical conditions, 86
Home mortgages, 148
Horizontal acquisitions, 201-202
Human resources
for competitive advantage, 74
in cost leadership strategies,
117
developing, 388-389
in differentiation strategies,
123
in internal environment, 80,
81, 83
in international strategies, 234
management skills for, 367,
456, 567
Hybrid structures, 345
Row
1
Row
2
Row
3
Row
4
Row
5
Row
6
Row
1
Row
2
Used only as background for chapter
opener vignette
Row
3
Gradients
Row
4
Row
5
I
IM (instant-messaging) services,
288
Imitation, 409
Incentives
compensation as, 301-305
first-mover, 147
for value-neutral
diversification, 183
Income distribution, 45
Income taxes in diversification,
183
Incremental innovation, 413-414
Row
6
PMS 298 (used in Case Section)
Case Title
Manufacturing
Service
•
9Live
A. G. Lafley
Consumer
Goods
•
Food/
Retail
•
AMD in 2005
Anheuser-Busch
•
Bank One
•
•
De Beers
Dell in China
Fiat and GM
General Motors Defense
Louis V. Gerstner Jr.
•
•
•
•
•
•
Humana Inc.
L’Oreal’s Business
Strategy
•
ONGC’s Growth
Strategy
Porsche
Tata Steel
•
•
•
•
•
•
•
•
•
Wal-Mart Stores Inc.
Whole Foods Market
•
•
•
Case Title
Chapter
1
2
3
4
5
•
9Live
A. G. Lafley
•
•
•
•
•
•
•
•
AMD in 2005
• •
Anheuser-Busch
Bank One
China on the I-Way
•
•
•
•
•
• •
•
• •
6
7
•
De Beers
•
•
•
•
•
•
•
•
•
•
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•
•
L’Oreal’s Business Strategy
•
•
Lucchetti
Lufthansa
•
•
•
•
•
•
MapQuest
•
•
Marks and Spencer
•
Mass Retailing in Asia
•
Nucor in 2005
News Corp. in 2005
ONGC’s Growth Strategy
Porsche
•
Tata Steel
•
•
•
• •
•
•
•
•
•
•
•
•
Wal-Mart Stores Inc.
Whole Foods Market
•
• • •
•
• •
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Viacom
Shanghai Volkswagen
12
13
•
•
• •
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•
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11
•
Fiat and GM
Humana Inc.
10
• •
• •
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• •
•
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Dell in China
9
•
• •
•
DaimlerChrysler
•
8
•
•
CQUAY Technologies
Louis V. Gerstner Jr.
•
Viacom
Shanghai Volkswagen
•
•
•
News Corp. in 2005
Nucor in 2005
•
•
Marks and Spencer
Mass Retailing in Asia
Industry
Perspective
General Motors Defense
•
•
MapQuest
Social/
Ethical
Issues
•
Lucchetti
Lufthansa
International
Perspective
Citigroup Japan
CQUAY Technologies
DaimlerChrysler
Transportation/
Communication
•
China on the I-Way
Citigroup Japan
High
Technology
•
•
•
•
•
•
•
•
• • •
•
•
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Strategic Actions: Strategy Formulation
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Studying this chapter should provide you with the strategic
management knowledge needed to:
1. Define business-level strategy.
2. Discuss the relationship between customers and business-level
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3. Explain the differences among business-level strategies.
4. Use the five forces of competition model to explain how aboveaverage returns con be earned through each business-level
strategy.
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2p6
11p6
12p
2p6
C ase 3 0
China’s Home Improvement
17p3 xHome
6p3
Market: Should
Depot
Enter or Will it Have a LateMover (Dis)advantage?
18p
24p9
11p6
12p
C ase 3 0
China’s Home Improvement
Market: Should
Home
Depot
18p9
x 6p3
Enter or Will it Have a LateMover (Dis)advantage?
18p
26p3
Dominik Boskamp, Holger Materlik, Franziska May,
Dominik Steinkuler, Prof. Lutz Kaufmann, Daniel Schmidt
Dominik Boskamp, Holger Materlik, Franziska May,
Dominik Steinkuler, Prof. Lutz Kaufmann, Daniel Schmidt
Thunderbird, The Garvin School of International Management
Thunderbird, The Garvin School of International Management
18p
3p
18p9
1p6
6p
18p9
6p
18p9
cso
©
Bakery
© Media
Don Hammond/Design
Pics/Corbis
all: © Don Hammond/Design Pics/Corbis
35p6
1p3
Dominik Gunkel, WHU, and Professor Gilbert Probst, HEC-University of Geneva, wrote this case as a basis for class discussion rather than to illustrate either
effective or ineffective handling of a business situation. Reprinted by permission of the authors.
1p
216
1p
2p6
3p
cases opener
38p6
1p3
18p9
cso
cases opener
Dominik Gunkel, WHU, and Professor Gilbert Probst, HEC-University of Geneva, wrote this case as a basis for class discussion rather than to illustrate either
effective or ineffective handling of a business situation. Reprinted by permission of the authors.
1p6
217
2p6
3p
2p6
2p6
3p
1p3
219
1p3
18p9
1p6
53p6
18p9
6p
6p
18p9
53p6
cst
cst
cases text
4p
1p6
cases text
4p
18p9
Case 1: Cultavating Core Competency
Case 1: Cultivating Core Competency
218 3p
3p
300
301
EOC Headings
verso page
Summary
EOC Headings
verso page
Summary
Review
Questions
Experiential Exercises
Review
Experiential Exercises
Video Case
Notes
Questions
Video Case
Notes