Strategic Management: Competitiveness and Globalisation

Half Title Page
Title Page
Imprint Page
Brief Contents
Contents
Guide to the text
Guide to the online resources
Preface
About the Authors
Acknowledgements
Part 1: Strategic management input
Chapter 1: Strategic management and strategic competitiveness
Opening case study: McDonald’s and brand recognition
The strategic management process
The competitive landscape
The global economy
Strategic focus: Starbucks is a new economy multinational yet has had failures in key markets
The march of globalisation
Technology and technological changes
Strategic focus: The core of Apple: technology and innovation
The I/O model of above-average returns
The resource-based model of above-average returns
Vision and mission
Vision
Mission
Stakeholders
Classifications of stakeholders
Strategic leaders
The work of effective strategic leaders
Predicting outcomes of strategic decisions
Ethical dimensions
Study tools
Chapter 2: The external environment: opportunities, threats, industry competition and competitor analysis
Opening case study: Drilling for oil: risks and rewards
The general, industry and competitor environments
External environmental analysis
Scanning
Monitoring
Forecasting
Assessing
Segments of the general environment
The demographic segment
The economic segment
The political/legal segment
The sociocultural segment
The technological segment
The global segment
The physical environment segment
Strategic focus: Target (Tar-zhey) is trying to navigate in a new and rapidly changing competitive landscape
Industry environment analysis
Threat of new entrants
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitute products
Strategic focus: German performance/luxury cars: if you’ve seen one, have you seen them all?
Intensity of rivalry among competitors
Interpreting industry analyses
Strategic groups
Competitor analysis
Ethical considerations
Study tools
Chapter 3: The internal organisation: resources, capabilities, core competencies and competitive advantages
Opening case study: Large pharmaceutical companies, big data analytics, artificial intelligence and core competencies: a brave new world
Analysing the internal organisation
The context of internal analysis
Creating value
The challenge of analysing the internal organisation
Resources, capabilities and core competencies
Strategic focus: Tangible and intangible resources as the base for core competencies
Resources
Capabilities
Core competencies
Building core competencies
Strategic focus: Procter & Gamble: using capabilities and core competencies to create value for customers
The four criteria of sustainable competitive advantage
Value chain analysis
Competencies, strengths, weaknesses and strategic decisions
Study tools
Part 2: Strategic actions: Strategy formulation
Chapter 4: Business-level strategy
Opening case study: Clonakilla Wines in a quality niche position
Customers: their relationship with business-level strategies
Effectively managing relationships with customers
Reach, richness and affiliation
Who: determining the customers to serve
What: determining which customer needs to satisfy
How: determining core competencies necessary to satisfy customer needs
The purpose of a business-level strategy
Business models and their relationship with business-level strategies
Types of business-level strategies
Cost leadership strategy
Differentiation strategy
Focus strategies
Integrated cost leadership/differentiation strategy
Strategic focus: Apple vs Samsung vs Huawei: the battle for smart technology
Study tools
Chapter 5: Competitive dynamics
Opening case study: Tesco PLC: a case study in competitive behaviour
A model of competitive rivalry
Competitor analysis
Market commonality
Strategic focus: Competitive rivalry in fast fashion: a constant stream of actions and responses
Resource similarity
Drivers of competitive actions and responses
Competitive rivalry
Strategic and tactical actions
Likelihood of attack
First-mover incentives
Organisational size
Quality
Likelihood of response
Type of competitive action
Actor’s reputation
Dependence on the market
Competitive dynamics
Fast-cycle markets
Strategic focus: The emergence of competitive rivalry among battery manufacturers: who will establish the most attractive market position?
Standard-cycle markets
Study tools
Chapter 6: Corporate-level strategy
Opening case study: The quintessential diversified organisation
Purpose of corporate-level strategies
Levels of diversification
Low levels of diversification
Moderate and high levels of diversification
Strategic focus: Acciona’s related diversification and renewable energy growth
Reasons for diversification
Value-creating diversification: related constrained and related linked diversification
Operational relatedness: sharing activities
Corporate relatedness: transferring of core competencies
Market power
Strategic focus: Alphabet’s evolution through diversification
Simultaneous operational relatedness and corporate relatedness
Unrelated diversification
Efficient internal capital market allocation
Restructuring of assets
Value-neutral diversification: incentives and resources
Incentives to diversify
Resources and diversification
Value-reducing diversification: managerial motives to diversify
Study tools
Chapter 7: Acquisition and restructuring strategies
Opening case study: Strategic acquisitions and a people-focused integration of those acquisitions are vital capabilities of Atlassian
The popularity of merger and acquisition strategies
Mergers, acquisitions and takeovers: what are the differences?
Reasons for acquisitions
Increased market power
Overcoming entry barriers
Strategic focus: Cross-border acquisitions by organisations from emerging economies: leveraging resources to gain a larger global footprint and market power
Cost of new product development and increased speed to market
Lower risk compared to developing new products
Increased diversification
Reshaping the organisation’s competitive scope
Learning and developing new capabilities
Problems in achieving acquisition success
Integration difficulties
Inadequate evaluation of target
Large or extraordinary debt
Inability to achieve synergy or harvest benefits
Too much diversification
Managers overly focused on acquisitions
Too large
Effective acquisitions
Restructuring
Downsizing
Downscoping
Leveraged buyouts
Restructuring outcomes
Study tools
Chapter 8: International strategy
Opening case study: An international strategy powers ABB’s future
Identifying international opportunities
Incentives to use international strategy
Three basic benefits of international strategy
International strategy types
International business-level strategy
International corporate-level strategy
Environmental trends
Liability of foreignness
Regionalisation
Choice of international entry mode
Exporting
Licensing
Strategic alliances
Acquisitions
New wholly owned subsidiaries
Dynamics of mode of entry
Strategic focus: Mondelez International: a global leader in snack foods
Risks in an international environment
Political risks
Economic risks
The challenge of international strategies
Managing international strategies: size and complexity
Limits to international expansion
Strategic focus: Mexico’s FEMSA: building its international prowess
Strategic competitiveness outcomes
International diversification and returns
Enhanced innovation
Study tools
Chapter 9: Cooperative strategy
Opening case study: Global cars, with a twist
Strategic alliances as a primary type of cooperative strategy
Types of major strategic alliances
Strategic focus: Samsung Electric is using diversifying alliances to reduce its dependence on Google’s Android operating system
Reasons organisations develop strategic alliances
Strategic focus: Industrial clusters: geographic centres for collaborative partnering
Competition-reducing strategy
Business-level cooperative strategy
Complementary strategic alliances
Uncertainty-reducing strategy
Competition response strategy
Assessing business-level cooperative strategies
Corporate-level cooperative strategy
Diversifying strategic alliance
Synergistic strategic alliance
Franchising
Assessing corporate-level cooperative strategies
International cooperative strategy
Network cooperative strategy
Alliance network types
Competitive risks with cooperative strategies
Managing cooperative strategies
Study tools
Part 3: Strategic actions: Strategy implementation
Chapter 10: Corporate governance
Opening case study: General Electric’s complex diversification strategy makes evaluation difficult for board directors
Separation of ownership and managerial control
Agency relationships
Product diversification as an example of an agency problem
Agency costs and governance mechanisms
Ownership concentration
Ownership structures of companies in Australia
The increasing influence of institutional owners
Board of directors
Board of directors process
Enhancing the effectiveness of the board of directors
Executive compensation
The effectiveness of executive compensation
Strategic focus: Has more governance scrutiny made large CEO compensation packages more reasonable?
Market for corporate control
International corporate governance
Corporate governance in Australia
Corporate governance in Germany and Japan
Corporate governance in China
Corporate governance in Spain
Governance mechanisms and ethical behaviour
Strategic focus: Rewarding top executives of one of the most poorly governed banks in the world: Westpac
Corporate governance and organisation performance
Corporate social responsibility
Study tools
Chapter 11: Organisational structure and controls
Opening case study: Changing McDonald’s organisational structure and controls: a path to improved performance
Organisational structure and controls
Organisational structure
Organisational controls
Relationships between strategy and structure
Evolutionary patterns of strategy and organisational structure
Simple structure
Functional structure
Multi-divisional structure
Matches between business-level strategies and the functional structure
Matches between corporate-level strategies and the multi-divisional structure
Strategic focus: Globalisation and beer
Strategic focus: General Electric’s decline, new strategy and reorganisation
Matches between international strategies and worldwide structure
Matches between cooperative strategies and network structures
Implementing business-level cooperative strategies
Implementing corporate-level cooperative strategies
Implementing international cooperative strategies
Study tools
Chapter 12: Strategic leadership
Opening case study: Meg Whitman: a pioneering strategic leader
Strategic leadership and style
The role of executive managers
Executive management teams
Managerial succession
Strategic focus: Women in leadership
Key strategic leadership actions
Determining strategic direction
Effectively managing the organisation’s resource portfolio
Sustaining an effective organisational culture
Strategic focus: Organisational culture: is it really that important?
Emphasising ethical practices
Leadership and corporate social responsibility
Establishing balanced organisational controls
Study tools
Chapter 13: Strategic entrepreneurship
Opening case study: Today it is gas and diesel: tomorrow it is likely to be electric vehicles, plug-in hybrids, and driverless cars and trucks
Entrepreneurship and entrepreneurial opportunities
Innovation
Product innovation
Entrepreneurs
International entrepreneurship
Internal innovation
Incremental and radical innovation
Implementing internal innovations
Cross-functional product development teams
Facilitating integration and innovation
Creating value from internal innovation
Innovation through cooperative strategies
Strategic focus: Social networking websites facilitate innovation: application software innovation
Innovation through acquisitions
Strategic focus: Will these acquisitions lead to innovation success or to strategic failure?
Creating value through strategic entrepreneurship
Study tools
Part 4: Case studies
Introduction: A summary of the case analysis process
Case 1: JB Hi-Fi Ltd acquisition of The Good Guys
Case 2: Challenges at Australia Post
Case 3: Nyrstar NV: a case study in a failed vertical integration strategy
Case 4: Pfizer
Case 5: Atlassian
Case 6: The Sunshine Coast UNESCO Biosphere Reserve and Smart City: a new governance opportunity in a post-pandemic world?
Case 7: CrossFit at the crossroads
Case 8: The movie exhibition industry: 2018 and beyond
Case 9: Pacific Drilling: the preferred offshore driller
Case 10: The trivago way - growing without growing up?
Case 11: The Volkswagen emissions scandal
Case 12: Otis in the global elevator industry
Case 13: Dick Smith: the fall of an Aussie icon
Glossary
Name Index
Subject Index