Strategic Management in Action / Edition 4

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Overview

Strategic Management in Action, 4/e is clearly differentiated from other volumes by its conversational writing style, increased use of pedagogy, and emphasis on readers doing strategy. The volume effectively integrates strategy theory and strategy action in an exciting and engaging way.

The author examines the foundations of auditing, as well as standards, materiality and risk, management assertions and evidence, client acceptance and audit planning, internal control, revenue and cash receipts transactions, expenditure and cash disbursements transactions, other accounts and transactions, sampling, completing the audit and reporting, ethics and legal liability and assurance and other services.

For business professionals involved in strategic planning.

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Editorial Reviews

Booknews
A lively, conversational text with an emphasis on current examples, real cases, and practical skill-building exercises. Discussion of functional, competitive, and corporate strategy integrates coverage of formulation, implementation, and evaluation. Pedagogical features include ongoing boxed comments by three real-life managers, boxes of review and discussion questions throughout chapters, Internet boxes, and cases and questions covering a broad range of types and sizes of organizations, from Continental Airlines to the Choctaw Indian Tribe. Annotation c. by Book News, Inc., Portland, Or.
Booknews
In this textbook for business students coverage includes basic strategic management concepts, the business environment, assessment of opportunities and threats, analysis of strengths and weaknesses, functional strategies, competitive strategies, corporate strategies, and strategic management in various organization types (such as small businesses and non-profits). The second edition contains a new section of seven case studies. Annotation c. Book News, Inc., Portland, OR (booknews.com)
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Product Details

  • ISBN-13: 9780132277471
  • Publisher: Prentice Hall
  • Publication date: 10/8/2007
  • Edition description: REV
  • Edition number: 4
  • Pages: 368
  • Product dimensions: 7.90 (w) x 10.06 (h) x 0.78 (d)

Read an Excerpt

PREFACE:

Preface

Welcome to the second edition of Strategic Management in Action! This book reflects my strong belief that strategic management can (and should) be interesting and exciting, and yet also can be based on sound, current academic theory. For a long time, I've felt there was a distinct need for a strategy book that effectively integrated strategy theory and strategy action—I wanted to show strategic management "in action." And Strategic Management in Action is a result of those beliefs!

How is this book different from the other strategic management textbooks on the market? I want to share with you what I feel are its competitive advantages—a term you will be quite familiar with after reading this text! As it did in the first edition, the book effectively integrates strategy theory and strategy action. It shows in an exciting and engaging way strategic management in action. How? Through the several new features in this edition and features retained from the first edition.

A new feature of this book is the inclusion of several chapter elements that illustrate and explore strategic management in action. One of these elements is a box theme called Strategic Management in Action. These boxes describe companies and the unique strategies they're using. Some of the companies portrayed include California Pizza Kitchen, FedEx, VISA USA, Krispy Kreme doughnuts, and E*Trade. Then, there are the FYI (For Your Information) boxes in every chapter that provide a concise overview of current strategic management issues. For example, some of the topics discussed include Corporate Reputations, Are Profits an Outdated Idea?, WhyGood Companies Go Bad, The DNA of Corporate Innovation, and so forth. In order to emphasize the global importance of strategic management, there's also a chapter box feature called Strategic Management—the Global Perspective. Some of the companies described include Giant Manufacturing Company Ltd. (Taiwan), Nestle SA (Switzerland), and Canadian Imperial Bank of Commerce. Finally, because strategic decision makers are often faced with ethical dilemmas, there's an ethics dilemma presented in every chapter under the heading of The Grey Zone. These were written to encourage you to think about the ethical implications inherent in strategic decisions. To make all of these chapter boxed features more relevant, most include suggestions for further research, review, or discussion. Be prepared—your professor might make assignments from any of these boxed items!

Another important change in this textbook is the addition of seven comprehensive cases. These cases include the following: Amazon.com, Eatertainment Industry, Greeting-Card Industry, Kellogg Company, Levi-Strauss, Southwest Airlines, and Starbucks. These cases were written so you can perform a thorough strategic analysis, identify strategic issues, and develop appropriate strategic choices. Additional cases I have written will be available online starting in the spring semester 2001 and may be assigned by your professor.

There's no doubt that the realities of the e-business world are having a major impact on organizational strategies. To introduce you to this topic, another new and significant feature in this book reflects the critical importance of understanding e-business and its implications for strategy. To explore e-business concepts, a boxed feature in every chapter called Strategic Management in an E-Business World addresses various aspects of e-business and how strategic decision makers are dealing with the dynamic changes taking place. Some of the topics discussed include choiceboards, Internet taxes, the appropriateness of internal analysis for e-businesses, stock options, and the competitive challenges with selling pet supplies on the Web. In addition, e-business strategies used by different companies are described and discussed.

Continued from the last edition of the book are several pedagogical tools to help you better learn and understand the concepts and theories of strategic management. For instance, the end-of-chapter Building Your Skills exercises give you the chance to "practice" the skills that successful strategic managers are going to need in tomorrow's organizations. In addition, short end-of-chapter cases (I like to call them case-ettes) provide an opportunity for you to further explore the topic in the chapter. These minicases provide a narrowly focused situation to examine and discuss. One change in this edition is that the chapter-opening Strategic Management in Action case can now be studied in addition to the other end-of-chapter cases. Each chapter also has several Consider This boxes that provide a number of review and discussion questions for a topic section that you've just read. Introduced in the first edition of the book, these boxes offer an excellent way for you to check your comprehension of the material you've just read and are also a great way to review chapter material. Finally, the chapter summaries are presented in a form called The Bottom Line, a term chosen very carefully. When a company focuses on the bottom line; it's focusing on the things that are the most important. Therefore, this section summarizes the important information, including key terms and definitions, in each chapter.

This edition continues to introduce the most current strategic management theories and practices. Some of these include world-class organizations, the guerrilla view of competitive advantage, online communities, data mining, real options theory, and several others. Of course, the traditional concepts of strategic management such as competitive advantage, SWOT, corporate growth, and strategy implementation are covered as well.

Another distinguishing feature of Strategic Management in Action retained from the first edition is that the discussion of the various strategy levels (functional, competitive, and corporate) covers formulation, implementation, and evaluation in the respective chapters. Other strategy texts cover strategy formulation in one chapter, implementation in another, and then evaluation in another. I felt that this approach made it hard for readers to see and understand the integrative nature of strategy. So, I decided it made more sense (both from the student's perspective in learning the material and from the professor's perspective in presenting the material) to discuss formulation, implementation, and evaluation as each strategy level was being discussed. So, for instance, when discussing functional strategy, you'll find information on how it's formulated, implemented, and evaluated; and likewise for the competitive and corporate levels, as well.

Finally, I want to say that I think this book is unique in the market because of its conversational and highly readable writing style. Although an author's writing style is difficult to describe (particularly your own!), I did write this text in a way to, try to make strategy and strategic management clear and understandable—yet enjoyable. My teaching philosophy (and I've been teaching for almost 25 years now, have won teaching awards at my university, and am consistently ranked in the top two or three in my department based on student evaluations) has been that education can be fun! So, I write like I teach. But only you, the reader, can ultimately judge how well I've written the material.

I need to thank a number of people for their contributions to this book. Without them, Strategic Management in Action, 2nd edition wouldn't be a reality. First of all are my students—current and past. Through my experiences (most of them enjoyable!) teaching our Strategic Management course, I've developed my own personal philosophy of what's worked and what hasn't. I learn things every semester from my students, and I hope they're learning from me. Then, I'd like to say "Thanks" to my department head, Barry Wisdom, and my college dean, Ron Bottin. Thank you for your support and encouragement. And then, of course, are my departmental secretaries, Carol Hale and Anita Looney. Thank you for all you do to make my life easier.

I would also like to recognize the individuals who provided me with intelligent and thorough reviews of the first edition of Strategic Management in Action. I appreciate your willingness to provide thorough and thought-provoking reviews. I know the second edition is better because of the suggestions you have provided. These individuals are Dr. William P Anthony, Florida State University; Dr. Jeryl L. Nelson, Wayne State College; Jerry Thomas, Arapahoe Community College; Patrick L. Schultz, Texas Tech. University; Frederick J. Richards, Sacred Heart University; Dr. A. D. Amar, Seton Hall University; Dr. Augustus Abbey, Morgan State University; and Dr. Richard D. Babcock, University of San Francisco.

Supplements

Instructor's Manual
Each chapter includes learning objectives, a detailed lecture outline, teaching notes to selected chapter exercises, and answers to all end-of-chapter material. Tips on where to incorporate PowerPoint slides are also included.

Test Item File
Each chapter contains multiple choice, true/false, chapter essay, and case essay questions. Together, the questions cover the content of each chapter in a variety of ways providing flexibility in testing the student's knowledge of the text.

Windows/Prentice Hall Test Manager, version 4.0
Containing all of the questions in the printed Test Item File, Test Manager is a comprehensive suite of tools for testing and assessment. Test Manager allows educators to easily create and distribute tests for their courses, either by printing and distributing through traditional methods, or by online delivery via a Local Area Network (LAN) server.

Instructor's Resource CD-ROM
Contains the electronic Instructor's Manual, Test Manager, and PowerPoint Electronic Transparencies. The PowerPoint Transparencies, a comprehensive package of text outlines and figures corresponding to the text, are designed to aid the educator and supplement in-class lectures.

Companion Web Site
The Prentice Hall Companion Web Site features an interactive and exciting online Student Study Guide. Students can access multiple choice, true/false, and Internet-based essay questions that accompany each chapter in the text. Objective questions are scored online, and incorrect answers are keyed to the text for student review. Faculty resources are also posted on this site and are password-protected. For more information, contact your local sales representative.

Acknowledgments

I'd also like to thank the wonderful people at Prentice Hall, my publisher. As usual, all of you have been just super to work with! A big THANK YOU to David Shafer, Executive Editor, Management. David, thanks for all your help and encouragement. A special thank you to Natalie Anderson for her unwavering support and for being a friend. The other people on the Management team have been just great to work with as well. These include Jennifer Glennon, Michele Foresta, and Kim Marsden. Thank you for all your hard work to make this book successful! My marketing manager, Michael Campbell, is a dream come true for an author. He is so knowledgeable about the market and the product. Michael, thank you for all your hard work. I'd also like to thank the hardworking people on the production side. Emma Moore, Suzanne Grappi, Steve Frim, and Nancy Marcello, have been truly super professionals who helped make Strategic Management in Action, 2nd edition look as great as it does! Thanks!

Next, I'd like to say a special thank you to a good friend and outstanding mentor—Steve Robbins, a textbook publishing icon! Steve, your friendship and advice continue to mean a lot to me! As I've said before, thanks for "taking a chance" on me and for "showing me the ropes" of textbook publishing. Although I can never fill your shoes (particularly the ones that make you a world-class and exceptionally successful sprinter), I know I'm a better writer because of you! Thanks!

Finally, I'd like to say THANKS to my family—my wonderful and truly supportive husband, Ron, and our bright, beautiful, and remarkably well-adjusted daughters, Sarah and Katie. Words cannot express how much you guys mean to me! Thank you for being patient with me when I was focused on writing and for not complaining about the many carryout meals we've consumed! You provide that much-needed balance to my life. And what I've been able to do, is because of all three of you. Thanks!

Mary Coulter
Southwest Missouri State University

Read More Show Less

Table of Contents

Ch. 1 Introducing the concepts 1
Ch. 2 The context of managing strategically 29
Ch. 3 Assessing opportunities and threats : doing an external analysis 65
Ch. 4 Assessing strengths and weaknesses : doing an internal analysis 105
Ch. 5 Functional strategies 137
Ch. 6 Competitive strategies 181
Ch. 7 Corporate strategies 215
Ch. 8 Strategic management in other organization types 263
App. 1 How to do a comprehensive case analysis 295
App. 2 Comprehensive cases for analysis 301
Read More Show Less

Preface

Preface

Welcome to the second edition of Strategic Management in Action! This book reflects my strong belief that strategic management can (and should) be interesting and exciting, and yet also can be based on sound, current academic theory. For a long time, I've felt there was a distinct need for a strategy book that effectively integrated strategy theory and strategy action—I wanted to show strategic management "in action." And Strategic Management in Action is a result of those beliefs!

How is this book different from the other strategic management textbooks on the market? I want to share with you what I feel are its competitive advantages—a term you will be quite familiar with after reading this text! As it did in the first edition, the book effectively integrates strategy theory and strategy action. It shows in an exciting and engaging way strategic management in action. How? Through the several new features in this edition and features retained from the first edition.

A new feature of this book is the inclusion of several chapter elements that illustrate and explore strategic management in action. One of these elements is a box theme called Strategic Management in Action. These boxes describe companies and the unique strategies they're using. Some of the companies portrayed include California Pizza Kitchen, FedEx, VISA USA, Krispy Kreme doughnuts, and E*Trade. Then, there are the FYI (For Your Information) boxes in every chapter that provide a concise overview of current strategic management issues. For example, some of the topics discussed include Corporate Reputations, Are Profits an Outdated Idea?, Why GoodCompanies Go Bad, The DNA of Corporate Innovation, and so forth. In order to emphasize the global importance of strategic management, there's also a chapter box feature called Strategic Management—the Global Perspective. Some of the companies described include Giant Manufacturing Company Ltd. (Taiwan), Nestle SA (Switzerland), and Canadian Imperial Bank of Commerce. Finally, because strategic decision makers are often faced with ethical dilemmas, there's an ethics dilemma presented in every chapter under the heading of The Grey Zone. These were written to encourage you to think about the ethical implications inherent in strategic decisions. To make all of these chapter boxed features more relevant, most include suggestions for further research, review, or discussion. Be prepared—your professor might make assignments from any of these boxed items!

Another important change in this textbook is the addition of seven comprehensive cases. These cases include the following: Amazon.com, Eatertainment Industry, Greeting-Card Industry, Kellogg Company, Levi-Strauss, Southwest Airlines, and Starbucks. These cases were written so you can perform a thorough strategic analysis, identify strategic issues, and develop appropriate strategic choices. Additional cases I have written will be available online starting in the spring semester 2001 and may be assigned by your professor.

There's no doubt that the realities of the e-business world are having a major impact on organizational strategies. To introduce you to this topic, another new and significant feature in this book reflects the critical importance of understanding e-business and its implications for strategy. To explore e-business concepts, a boxed feature in every chapter called Strategic Management in an E-Business World addresses various aspects of e-business and how strategic decision makers are dealing with the dynamic changes taking place. Some of the topics discussed include choiceboards, Internet taxes, the appropriateness of internal analysis for e-businesses, stock options, and the competitive challenges with selling pet supplies on the Web. In addition, e-business strategies used by different companies are described and discussed.

Continued from the last edition of the book are several pedagogical tools to help you better learn and understand the concepts and theories of strategic management. For instance, the end-of-chapter Building Your Skills exercises give you the chance to "practice" the skills that successful strategic managers are going to need in tomorrow's organizations. In addition, short end-of-chapter cases (I like to call them case-ettes) provide an opportunity for you to further explore the topic in the chapter. These minicases provide a narrowly focused situation to examine and discuss. One change in this edition is that the chapter-opening Strategic Management in Action case can now be studied in addition to the other end-of-chapter cases. Each chapter also has several Consider This boxes that provide a number of review and discussion questions for a topic section that you've just read. Introduced in the first edition of the book, these boxes offer an excellent way for you to check your comprehension of the material you've just read and are also a great way to review chapter material. Finally, the chapter summaries are presented in a form called The Bottom Line, a term chosen very carefully. When a company focuses on the bottom line; it's focusing on the things that are the most important. Therefore, this section summarizes the important information, including key terms and definitions, in each chapter.

This edition continues to introduce the most current strategic management theories and practices. Some of these include world-class organizations, the guerrilla view of competitive advantage, online communities, data mining, real options theory, and several others. Of course, the traditional concepts of strategic management such as competitive advantage, SWOT, corporate growth, and strategy implementation are covered as well.

Another distinguishing feature of Strategic Management in Action retained from the first edition is that the discussion of the various strategy levels (functional, competitive, and corporate) covers formulation, implementation, and evaluation in the respective chapters. Other strategy texts cover strategy formulation in one chapter, implementation in another, and then evaluation in another. I felt that this approach made it hard for readers to see and understand the integrative nature of strategy. So, I decided it made more sense (both from the student's perspective in learning the material and from the professor's perspective in presenting the material) to discuss formulation, implementation, and evaluation as each strategy level was being discussed. So, for instance, when discussing functional strategy, you'll find information on how it's formulated, implemented, and evaluated; and likewise for the competitive and corporate levels, as well.

Finally, I want to say that I think this book is unique in the market because of its conversational and highly readable writing style. Although an author's writing style is difficult to describe (particularly your own!), I did write this text in a way to, try to make strategy and strategic management clear and understandable—yet enjoyable. My teaching philosophy (and I've been teaching for almost 25 years now, have won teaching awards at my university, and am consistently ranked in the top two or three in my department based on student evaluations) has been that education can be fun! So, I write like I teach. But only you, the reader, can ultimately judge how well I've written the material.

I need to thank a number of people for their contributions to this book. Without them, Strategic Management in Action, 2nd edition wouldn't be a reality. First of all are my students—current and past. Through my experiences (most of them enjoyable!) teaching our Strategic Management course, I've developed my own personal philosophy of what's worked and what hasn't. I learn things every semester from my students, and I hope they're learning from me. Then, I'd like to say "Thanks" to my department head, Barry Wisdom, and my college dean, Ron Bottin. Thank you for your support and encouragement. And then, of course, are my departmental secretaries, Carol Hale and Anita Looney. Thank you for all you do to make my life easier.

I would also like to recognize the individuals who provided me with intelligent and thorough reviews of the first edition of Strategic Management in Action. I appreciate your willingness to provide thorough and thought-provoking reviews. I know the second edition is better because of the suggestions you have provided. These individuals are Dr. William P Anthony, Florida State University; Dr. Jeryl L. Nelson, Wayne State College; Jerry Thomas, Arapahoe Community College; Patrick L. Schultz, Texas Tech. University; Frederick J. Richards, Sacred Heart University; Dr. A. D. Amar, Seton Hall University; Dr. Augustus Abbey, Morgan State University; and Dr. Richard D. Babcock, University of San Francisco.

Supplements

Instructor's Manual
Each chapter includes learning objectives, a detailed lecture outline, teaching notes to selected chapter exercises, and answers to all end-of-chapter material. Tips on where to incorporate PowerPoint slides are also included.

Test Item File
Each chapter contains multiple choice, true/false, chapter essay, and case essay questions. Together, the questions cover the content of each chapter in a variety of ways providing flexibility in testing the student's knowledge of the text.

Windows/Prentice Hall Test Manager, version 4.0
Containing all of the questions in the printed Test Item File, Test Manager is a comprehensive suite of tools for testing and assessment. Test Manager allows educators to easily create and distribute tests for their courses, either by printing and distributing through traditional methods, or by online delivery via a Local Area Network (LAN) server.

Instructor's Resource CD-ROM
Contains the electronic Instructor's Manual, Test Manager, and PowerPoint Electronic Transparencies. The PowerPoint Transparencies, a comprehensive package of text outlines and figures corresponding to the text, are designed to aid the educator and supplement in-class lectures.

Companion Web Site
The Prentice Hall Companion Web Site features an interactive and exciting online Student Study Guide. Students can access multiple choice, true/false, and Internet-based essay questions that accompany each chapter in the text. Objective questions are scored online, and incorrect answers are keyed to the text for student review. Faculty resources are also posted on this site and are password-protected. For more information, contact your local sales representative.

Acknowledgments

I'd also like to thank the wonderful people at Prentice Hall, my publisher. As usual, all of you have been just super to work with! A big THANK YOU to David Shafer, Executive Editor, Management. David, thanks for all your help and encouragement. A special thank you to Natalie Anderson for her unwavering support and for being a friend. The other people on the Management team have been just great to work with as well. These include Jennifer Glennon, Michele Foresta, and Kim Marsden. Thank you for all your hard work to make this book successful! My marketing manager, Michael Campbell, is a dream come true for an author. He is so knowledgeable about the market and the product. Michael, thank you for all your hard work. I'd also like to thank the hardworking people on the production side. Emma Moore, Suzanne Grappi, Steve Frim, and Nancy Marcello, have been truly super professionals who helped make Strategic Management in Action, 2nd edition look as great as it does! Thanks!

Next, I'd like to say a special thank you to a good friend and outstanding mentor—Steve Robbins, a textbook publishing icon! Steve, your friendship and advice continue to mean a lot to me! As I've said before, thanks for "taking a chance" on me and for "showing me the ropes" of textbook publishing. Although I can never fill your shoes (particularly the ones that make you a world-class and exceptionally successful sprinter), I know I'm a better writer because of you! Thanks!

Finally, I'd like to say THANKS to my family—my wonderful and truly supportive husband, Ron, and our bright, beautiful, and remarkably well-adjusted daughters, Sarah and Katie. Words cannot express how much you guys mean to me! Thank you for being patient with me when I was focused on writing and for not complaining about the many carryout meals we've consumed! You provide that much-needed balance to my life. And what I've been able to do, is because of all three of you. Thanks!

Mary Coulter
Southwest Missouri State University

Read More Show Less

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