Synopses & Reviews
'This leading strategy text presents the complexities of strategic management through up-to-date scholarship and hands-on applications. Authors Charles Hill and Gareth Jones--both highly regarded in the management field--integrate cutting-edge research, rising trends in strategy, and hot topics such as corporate performance, governance, strategic leadership, technology, and business ethics through both theory and cases. Most of the chapter-opening and chapter-closing cases are new, and the authors have either replaced or substantially revised all Strategy in Action boxes. The Seventh Edition also contains a new Running Case on Wal-Mart, introducing relevant aspects of the company\'s strategy and performance to reinforce the practical application of key concepts and to illustrate how successive chapter topics tie together. In addition to numerous examples and hands-on activities, several new technology resources support instructors and enhance the learning experience for students.'
About the Author
Charles W. L. Hill is the Hughes M. Blake Professor of Business at the University of Washington Business School. His research interests focus on competition and competitive analysis, corporate strategy, international business, organizational structure, and corporate governance. Dr. Hill has published more than fifty articles in peer-reviewed academic journals and has served on the editorial boards of several journals, including the ACADEMY OF MANAGEMENT REVIEW and the STRATEGIC MANAGEMENT JOURNAL. He also is the author of a successful international business textbook. An active consultant, Dr. Hill has worked with Microsoft and Boeing. He received his PhD from the University of Manchester Institute of Science and Technology, England.Gareth R. Jones is a professor at Texas A&M University. He received his PhD from the University Of Lancaster, England, and he is trained in Economics and Organizational Theory and Behavior. His research interests include organizational design for performance, the evolution of business, and corporate-level strategy. Dr. Jones has published articles in all the major management journals and is co-author of several textbooks.
Table of Contents
'Note: Each chapter begins with an Overview, and concludes with a Summary of Chapter and Discussion Questions. I. Introduction to Strategic Management 1. Strategic Leadership: Managing the Strategy, Making Process for Competitive Advantage Opening Case: Wal-Mart Strategic Leadership, Competitive Advantage, and Superior Performance Strategic Managers The Strategy-Making Process Strategy in Action 1.1: Strategic Planning at Microsoft Strategy as an Emergent Process Strategy in Action 1.2: A Strategic Shift at Microsoft Strategy in Action 1.3: The Genesis of Autonomous Action at 3M Strategic Planning in Practice Strategic Decision Making Strategy in Action 1.4: Was Intelligence on Iraq Biased by Groupthink? Strategic Leadership Practicing Strategic Management. Small-Group Exercise: Designing a Planning System; Article File 1; Strategic Management Project: Module 1; Exploring the Web: Visiting 3M; General Task Closing Case: Shattered Dreams: Level 3 Communications Appendix to Chapter 1: Enterprise Valuation, ROIC, and Growth 2. External Analysis: The Identification of Opportunities and Threats Opening Case: Why Is the Pharmaceutical Industry So Profitable? Defining an Industry Porter\'s Five Forces Model Strategy in Action 2.1: Circumventing Entry Barriers into the Soft Drink Industry Strategy in Action 2.2: Price Wars in the Breakfast Cereal Industry Running Case: Wal-Mart\'s Bargaining Power over Suppliers Strategic Groups Within Industries Industry Life Cycle Analysis Limitations of Models for Industry Analysis The Macroenvironment Practicing Strategic Management. Small-Group Exercise: Competing with Microsoft; Article File 2; Strategic Management Project: Module 2; Exploring the Web: Visiting Boeing and Airbus; General Task Closing Case: Plane Wreck: The Airline Industry in 2001-2004 II. The Nature of Competitive Advantage 3. Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability Opening Case: Dell\'s Competitive Advantage Competencies, Resources, and Competitive Advantage The Value Chain Primary Activities Strategy in Action 3.1: Value Creation at Pfizer Support Activities The Building Blocks of Competitive Advantage Running Case: Support Activites as a Source of Value Creation at Wal-Mart Strategy in Action 3.2: Southwest Airlines\' Low-Cost Structure Analyzing Competitive Advantage and Profitability The Durability of Competitive Advantage Avoiding Failure and Sustaining Competitive Advantage Strategy in Action 3.3: The Road to Ruin at DEC Strategy in Action 3.4: Bill Gates\'s Lucky Break Practicing Strategic Management. Small-Group Exercise: Analyzing Competitive Advantage; Article File 3; Strategic Management Project: Module 3; Exploring the Web: Visiting Johnson and Johnson; General Task Closing Case: Google 4. Building Competitive Advantage Through Functional-Level Strategy Opening Case: Verizon Wireless Achieving Superior Efficiency Strategy in Action 4.1: Too Much Experience at Texas Instruments Efficiency, Flexible Manufacturing, and Mass Customization Strategy in Action 4.2: Toyota\'s Lean Production System Strategy in Action 4.3: Supply-Chain Management at Office Superstores Running Case: Human Resource Strategy and Productivity at Wal-Mart Achieving Superior Quality Strategy in Action 4.4: General Electric\'s Six Sigma Quality Improvement Process Strategy in Action 4.5: Six Sigma at Mount Carmel Health Achieving Superior Innovation Achieving Superior Responsiveness to Customers Practicing Strategic Management. Small-Group Exercise: Identifying Excellence; Article File 4; Strategic Management Project: Module 4; Exploring the Web: Visiting Applied Materials; General Task Closing Case: Redesigning the American Car III. Strategies 5. Building Competitive Advantage Through Business-Level Strategy Opening Case: Samsung Changes Its Business Model Again and Again Competitive Positioning and the Business Model Competitive Positioning: Generic Business-Level Strategy Cost Leadership Strategy in Action 5.1: Ryanair Takes Control over the Sky in Europe Differentiation Strategy in Action 5.2: L.L. Bean\'s New Business Model Strategy in Action 5.3: Up, Up, and Away in the Restaurant Business The Dynamics of Competitive Positioning Strategy in Action 5.4: Toyota\'s Goal? A High-Value Vehicle to Match Every Customer Need Strategy in Action 5.5: Holiday Inns on Six Continents Practicing Strategic Management. Small-Group Exercise: Finding a Strategy for a Restaurant; Article File 5; Strategic Management Project: Module 5; Exploring the Web: Visiting the Luxury Car Market; General Task Closing Case: How E*TRADE Uses the Internet to Gain a Low-Cost Advantage 6. Business-Level Strategy and the Industry Environment Opening Case: Nike\'s Winning Ways Strategies in Fragmented Industries Strategies in Embryonic and Growth Industries Strategy in Action 6.1: Clear Channel Creates a National Chain of Local Radio Stations Strategy in Action 6.2: How Prodigy Fell into the Chasm Navigating Through the Life Cycle to Maturity Strategy in Mature Industries Strategy in Action 6.3: Toys \"R\" Us\'s New Competitors Strategy in Action 6.4: Coca-Cola and PepsiCo Go Head-to-Head Strategies in Declining Industries Strategy in Action 6.5: How to Make Money in the Vacuum Tube Business Practicing Strategic Management. Small-Group Exercise: How to Keep the Hot Sauce Hot; Article File 6; Strategic Management Project: Module 6; Exploring the Web: Visiting Wal-Mart; General Task Closing Case: Information Technology, the Internet, and Changing Strategies in the Fashion World 7. Strategy in High-Technology Industries Opening Case: The Smart Phone Format War Technical Standards and Format Wars Strategy in Action 7.1: Where Is the Standard for DVD Recorders? Strategy in Action 7.2: How Dolby Became the Standard in Sound Technology Strategies for Winning a Format War Costs in High-Technology Industries Strategy in Action 7.3: Lowering Costs Through Digitalization Managing Intellectual Property Rights Capturing First-Mover Advantages Technological Paradigm Shifts Strategy in Action 7.4: Disruptive Technology in Mechanical Excavators Practicing Strategic Management. Small-Group Exercise: Burning DVDs; Article File 7; Strategic Management Project: Module 7; Exploring the Web:Visiting Kodak; General Task Closing Case: Battling Piracy in the Videogame Market 8. Strategy in the Global Environment Opening Case: The Evolution of Global Strategy at Procter and Gamble The Global and National Environments The Globalization of Production and Markets Strategy in Action 8.1: Finland\'s Nokia Increasing Profitability and Profit Growth Through Global Expansion Running Case: Wal-Mart\'s Global Expansion Cost Pressures and Pressures for Local Responsiveness Strategy in Action 8.2: MTV Goes Global with a Local Accent Choosing a Global Strategy Basic Entry Decisions Strategy in Action 8.3: Merrill Lynch in Japan The Choice of Entry Mode Global Strategic Alliances Making Strategic Alliances Work Practicing Strategic Management. Small-Group Exercise: Developing a Global Strategy; Article File 8; Strategic Management Project: Module 8; Exploring the Web: Visiting IBM; General Task Closing Case: Planet Starbucks 9. Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing Opening Case: Read All About News Corp Corporate-Level Strategy and the Multibusiness Model Horizontal Integration: Single-Industry Strategy Strategy in Action 9.1: Beating Dell: Why Hewlett-Packard Wanted to Acquire Compaq Running Case: Wal-Mart\'s New Chain of \"Neighborhood Markets\" Strategy in Action 9.2: Horizontal Integration in Health Care Vertical Integration: Entering New Industries to Strengthen the \"Core\" Business Model Strategy in Action 9.3: Specialized Assets and Vertical Integration in the Aluminum Industry Alternatives to Vertical Integration: Cooperative Relationships Strategy in Action 9.4: DaimlerChrysler\'s U.S. Keiretsu Strategic Outsourcing Strategy in Action 9.5: Cisco\'s $2 Billion Blunder Practicing Strategic Management. Small-Group Exercise: Comparing Vertical Integration Strategies; Article File 9; Strategic Management Project: Module 9; Exploring the Web: Visiting Motorola; General Task Closing Case: The Rise of WorldCom 10. Corporate-Level Strategy: Formulating and Implementing Related and Unrelated Diversification Opening Case: United Technologies Has an \"Ace in Its Pocket\" Expanding Beyond a Single Industry Increasing Profitability Through Diversification Strategy in Action 10.1: Diversification at 3M: Leveraging Technology Two Types of Diversification Strategy in Action 10.2: Related Diversification at Intel Disadvantages and Limits of Diversification Choosing a Strategy Entry Strategy: Internal New Ventures Entry Strategy: Acquisitions Strategy in Action 10.3: Postacquisition Problems at Mellon Bank Entry Strategy: Joint Ventures Restructuring Practicing Strategic Management. Small-Group Exercise: Dun and Bradstreet; Article File 10; Strategic Management Project: Module 10; Exploring the Web: Visiting General Electric; General Task Closing Case: Tyco International IV. Implementing Strategy 11. Corporate Performance, Governance, and Business Ethics Opening Case: Nike: The Sweatshop Debate Stakeholders and Corporate Performance Strategy in Action 11.1: Bill Agee at Morrison Knudsen Strategy in Action 11.2: Price Fixing at Sotheby\'s and Christie\'s Agency Theory Governance Mechanisms Strategy in Action 11.3: Did Computer Associates Inflate Revenues to Enrich Managers? Ethics and Strategy Running Case: Working Conditions at Wal-Mart Practicing Strategic Management. Small-Group Exercise: Evaluating Stakeholder Claims; Article File 11; Strategic Management Project: Module 11; Exploring the Web: Visiting Merck; General Task Closing Case: The Collapse of Enron 12. Implementing Strategy in Companies That Compete in a Single Industry Opening Case: Nokia\'s New Product Structure Implementing Strategy Through Organizational Design Building Blocks of Organizational Structure Strategy in Action 12.1: Union Pacific Decentralizes to Increase Customer Responsiveness Strategic Control Systems Strategy in Action 12.2: Control at Cypress Semiconductor Organizational Culture Strategy in Action 12.3: How Ray Kroc Established McDonald\'s Culture Building Distinctive Competencies at the Functional Level Running Case: Sam Walton\'s Approach to Implementing Wal-Mart\'s Strategy Implementing Strategy in a Single Industry Strategy in Action 12.4: Restructuring at Lexmark Restructuring and Reengineering Practicing Strategic Management. Small-Group Exercise: Deciding on an Organizational Structure; Article File 12; Strategic Management Project: Module 12; Exploring the Web: Visiting Home Depot; General Task Closing Case: Strategy Implementation at Dell Computer 13. Implementing Strategy in Companies That Compete Across Industries and Countries Opening Case: GM Searches for the Right Global Structure Managing Corporate Strategy Through the Multidivisional Structure Strategy in Action 13.1: Amoco, ARCO, and Burmah Castrol Become Part of BP Implementing Strategy Across Countries Strategy in Action 13.2: SAP\'s ERP Systems Strategy in Action 13.3: Using IT to Make Nestle\'s Global Structure Work Entry Mode and Implementation Information Technology, the Internet, and Outsourcing Strategy in Action 13.4: Oracle\'s New Approach to Control Strategy in Action 13.5: Li and Fung\'s Global Supply-Chain Management Practicing Strategic Management. Small-Group Exercise: Deciding on an Organizational Structure (Continued); Article File 13; Strategic Management Project: Module 13; Exploring the Web: Visiting Sears; General Task Closing Case: The New HP Gets Up to Speed V. Cases in Strategic Management Introduction: Analyzing a Case Study and Writing a Case Study Analysis What Is Case Study Analysis? Analyzing a Case Study Writing a Case Study Analysis The Role of Financial Analysis in Case Study Analysis Conclusion Section A: Business-Level Cases: Domestic and Global 1. Brown-Forman Wine Estates 2. Welch Foods, Inc. 3. The Global Automobile Industry in 2004 4. Toyota: Origins, Evolution, and Current Prospects 5. General Motors in 2005 6. The Comeback of Caterpillar, 1985-2002 7. Huawei Technologies Co., Ltd. 8. The Home Video Game Industry: From Pong to Halo 2 9. Satellite Radio: XM Versus Sirius 10. Strategic Inflection: TiVo in 2003 11. The Music Industry in the Age of the Internet: From Napster to Apple\'s iPod 12. Staples 13. Gap International: A Specialty Apparel Retailer 14. Charles Schwab 15. Li and Fung--The Global Value Chain Configurator 16. Starbucks Corporation: Competing in a Global Market 17. Kentucky Fried Chicken and the Global Fast-Food Industry Section B: Corporate-Level Cases: Domestic and Global 18. Nucor in 2005 19. 3M in the New Millennium 20. The Rise of IBM 21. The Fall of IBM 22. The Rebirth of IBM 23. Hewlett Packard: The Merger with the Compaq Corporation 24. Hewlett Packard Ousts Carly Fiorina 25. Michael Eisner\'s Walt Disney Company: Part One 26. The Walt Disney Company, 1995-2005: Part Two 27. First Greyhound, Then Greyhound Dial, Then Dial, Now Henkel-Dial 28. Hanson PLC (A): The Acquisition Machine 29. Hanson PLC (B): Breaking It Up 30. Philips Versus Matsushita: A New Century, a New Round 31. GE\'s Two-Decade Transformation: Jack Welsh\'s Leadership Section C: Ethics Cases 32. Nike\'s Dispute with the University of Oregon 33. Etch-A-Sketch Ethics 34. Western Drug Companies and the AIDS Epidemic in South Africa\n
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