Synopses & Reviews
Discover the art of strategic thinkingRevised and updated to reflect the cutting edge of academic thinking about business strategy, the Fourth Edition of Besanko, Dranove, Shanley, and Schaefer’s highly acclaimed text offers a solid economic foundation for strategic analysis. By presenting basic concepts of economic theory with ideas in modern strategy literature, the book provides an economic lens for viewing the broad sweep of the strategic activities of the firm.
The book begins by focusing on the boundaries of the firm and examines competitive strategy from the perspective of industrial organization (IO) economics, particularly Porter’s Five Forces. It then explores strategic positioning and dynamics as well as topics associated with internal organization, including personnel economics, organization structure, and strategic fit.
Features of the Fourth Edition
- Chapters on human resources management, entry, positioning, dynamics, technological change, and organizational structure are substantially revised.
- An updated chapter on business history covers the recent dot-com bubble.
- Presents economic principles without overemphasizing the math.
- Rigorous treatment of organizational topics such as structure and culture enables you to experience the full scope of strategic thinking.
- The authors use Porter’s Five Forces as a tool for organizing industry analysis, building on the coverage of industrial organization and game theory. The text also considers the Value Net, another tool for organizing industry analysis.
- Includes coverage of make or buy decisions (Chapters 2-4) and benefit and cost advantage and sustaining advantage (Chapters 11-13).
- Fascinating examples, including many new to this edition, bring the economic models to life. Many of the examples involve businesses outside of the United States.
Review
“…the book seeks to supply an economic lens for viewing the broad sweep of the strategic activities of the firm.” (Times Higher Education Supplement, Thursday 28th February 2008)
Synopsis
Covering the broad sweep of modern economics and strategy research, this comprehensive book broke new ground in its original edition by applying modern economic principles to study the firm's strategic position. Completely updated and revised, this new edition integrates recent insights from the theory of the firm, industrial organization, and strategy research, while building upon a strong theoretical and empirical foundation familiar to academics working in economics and strategy.
New co-author Scott Schaefer adds his expertise on organizational economics
New chapters on performance evaluation and strategic fit
Hundreds of examples ground theory in the everyday activities of the firm and show how the economic principles of strategy actually work
A unique, modern treatment of topics
Synopsis
DISCOVER THE ART OF STRATEGIC THINKINGThis Third Edition of Besanko, Dranove, Shanley, and Schaefer’s highly acclaimed text blends economic theory with the latest thinking on strategy. The result is an innovative and highly effective framework for understanding the strategic activities within a firm.
Offering in-depth, modern coverage of a broad range of topics, the Third Edition features expanded material on personnel economics, revised treatment of culture and power, in-depth coverage of competition in markets with network effects, detailed discussion of the opinion theory of investment, and updated coverage of diversification.
HIGHLIGHTS OF THE THIRD EDITION
- Presents economic principles without overemphasizing the math.
- Rigorous treatment of organizational topics such as structure and culture enables you to experience the full scope of strategic thinking.
- The authors use Porter’s Five Focus as a tool for organizing industry analysis, building on the coverage of industrial organization and game theory. The text also considers the Value Net, another tool for organizing industry analysis.
- Includes coverage of make or buy decisions (Chapters 2-4) and benefit and cost advantage and sustaining advantage (Chapter 12-14).
- Fascinating examples bring the economic models to life. Many of the examples involve businesses outside the United States.
Table of Contents
Introduction: Strategy and Economics.
Primer: Economic Concepts for Strategy.
PART ONE: FIRM BOUNDARIES.
1. The Evolution of the Modern Firm.
2. The Horizontal Boundaries of the Firm: Economies of Scale and Scope.
3. The Vertical Boundaries of the Firm.
4. Organizing Vertical Boundaries: Vertical Integration and Its Alternatives.
5. Diversification.
PART TWO: MARKET AND COMPETITIVE ANALYSIS.
6. Competitors and Competition.
7. Strategic Commitment.
8. The Dynamics of Pricing Rivalry.
9. Entry and Exit.
10. Industry Analysis.
PART THREE: STRATEGIC POSITION AND DYNAMICS.
11. Strategic Positioning for Competitive Advantage.
12. Sustaining Competitive Advantage.
13. The Origins of Competitive Advantage: Innovation, Evolution, and Environment.
14. Agency and Performance Measurement.
PART FOUR: INTERNAL ORGANIZATION.
15. Incentives in Firms.
16.Strategy and Structure.
17. Environment, Power, and Culture.
18. Strategy and the General Manager.
G lossary.
Name Index.
Subject Index.