Strategic Management: Competitiveness and Globalisation, 7th Edition PDF by Dallas Hanson, Kim Backhouse, David Leaney, Michael A Hitt, R Duane Ireland and Robert E Hoskisson

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Strategic Management: Competitiveness and Globalisation, 7th Edition

By Dallas Hanson, Kim Backhouse, David Leaney, Michael A. Hitt, R. Duane Ireland and Robert E. Hoskisson

Strategic Management: Competitiveness and Globalisation, 7th Edition

Contents:

Guide To The Text Xii

Guide To The Online Resources Xiv

Preface Xvi

About The Authors Xviii

Acknowledgements Xxi

1 PART 1

STRATEGIC MANAGEMENT INPUTS 1

1 Strategic management and strategic

competitiveness 2

Opening case study: McDonald’s and brand recognition 3

The strategic management process 4

The competitive landscape 7

The global economy 8

Strategic focus: Starbucks is a new economy

multinational yet has had failures in key markets 9

The march of globalisation 10

Technology and technological changes 11

Strategic focus:

The core of Apple: technology and innovation 14

The I/O model of above-average returns 15

The resource-based model of above-average

returns 17

Vision and mission 19

Vision 19

Mission 20

Stakeholders 21

Classifications of stakeholders 21

Strategic leaders 23

The work of effective strategic leaders 24

Predicting outcomes of strategic decisions 25

Ethical dimensions 25

STUDY TOOLS 27

2 The external environment: opportunities,

threats, industry competition and competitor

analysis 34

Opening case study: Drilling for oil: risks and rewards 35

The general, industry and competitor

environments 38

External environmental analysis 39

Scanning 40

Monitoring 40

Forecasting 41

Assessing 41

Segments of the general environment 41

The demographic segment 42

The economic segment 44

The political/legal segment 46

The sociocultural segment 47

The technological segment 49

The global segment 50

The physical environment segment 51

Strategic focus: Target (Tar-zhey) is trying to navigate in

a new and rapidly changing competitive landscape 52

Industry environment analysis 53

Threat of new entrants 54

Bargaining power of suppliers 57

Bargaining power of buyers 57

Threat of substitute products 58

Strategic focus: German performance/luxury cars: if

you’ve seen one, have you seen them all? 58

Intensity of rivalry among competitors 59

Interpreting industry analyses 61

Strategic groups 61

Competitor analysis 62

Ethical considerations 64

STUDY TOOLS 65

3 The internal organisation: resources, capabilities,

core competencies and competitive advantages 72

Opening case study: Large pharmaceutical companies,

big data analytics, artificial intelligence and core

competencies: a brave new world 73

Analysing the internal organisation 75

The context of internal analysis 75

Creating value 76

The challenge of analysing the internal organisation 77

Resources, capabilities and core competencies 79

Strategic focus: Tangible and intangible resources as the

base for core competencies 80

Resources 80

Capabilities 83

Core competencies 83

Building core competencies 84

Strategic focus: Procter & Gamble: using capabilities and

core competencies to create value for customers 85

The four criteria of sustainable competitive advantage 86

Value chain analysis 89

Competencies, strengths, weaknesses and

strategic decisions 92

STUDY TOOLS 94

2 PART 2

STRATEGIC ACTIONS: STRATEGY FORMULATION 101

4 Business-level strategy 102

Opening case study: Clonakilla Wines in a quality niche

position 103

Customers: their relationship with businesslevel

strategies 105

Effectively managing relationships with

customers 105

Reach, richness and affiliation 106

Who: determining the customers to serve 107

What: determining which customer needs to satisfy 107

How: determining core competencies necessary to

satisfy customer needs 108

The purpose of a business-level strategy 109

Business models and their relationship with

business-level strategies 109

Types of business-level strategies 110

Cost leadership strategy 112

Differentiation strategy 115

Focus strategies 119

Integrated cost leadership/differentiation strategy 120

Strategic focus: Apple vs Samsung vs Huawei: the battle

for smart technology 121

STUDY TOOLS 125

5 Competitive dynamics 131

Opening case study: Tesco PLC: a case study in

competitive behaviour 132

A model of competitive rivalry 134

Competitor analysis 135

Market commonality 136

Strategic focus: Competitive rivalry in fast fashion: a

constant stream of actions and responses 137

Resource similarity 138

Drivers of competitive actions and responses 139

Competitive rivalry 141

Strategic and tactical actions 141

Likelihood of attack 142

First-mover incentives 142

Organisational size 144

Quality 144

Likelihood of response 145

Type of competitive action 146

Actor’s reputation 146

Dependence on the market 147

Competitive dynamics 147

Slow-cycle markets 147

Fast-cycle markets 148

Strategic focus: The emergence of competitive rivalry

among battery manufacturers: who will establish the

most attractive market position? 150

Standard-cycle markets 152

STUDY TOOLS 153

6 Corporate-level strategy 161

Opening case study: The quintessential diversified organisation 162

Purpose of corporate-level strategies 163

Levels of diversification 164

Low levels of diversification 165

Moderate and high levels of diversification 166

Strategic focus: Acciona’s related diversification and

renewable energy growth 166

Reasons for diversification 167

Value-creating diversification: related constrained

and related linked diversification 169

Operational relatedness: sharing activities 170

Corporate relatedness: transferring of core competencies 170

Market power 171

Strategic focus: Alphabet’s evolution through diversification 172

Simultaneous operational relatedness and corporate relatedness 174

Unrelated diversification 174

Efficient internal capital market allocation 174

Restructuring of assets 176

Value-neutral diversification: incentives and resources 176

Incentives to diversify 177

Resources and diversification 178

Value-reducing diversification: managerial motives to diversify 179

STUDY TOOLS 182

7 Acquisition and restructuring strategies 189

Opening case study: Strategic acquisitions and a people focused

integration of those acquisitions are vital capabilities of Atlassian 190

The popularity of merger and acquisition strategies 192

Mergers, acquisitions and takeovers: what are the differences? 192

Reasons for acquisitions 193

Increased market power 193

Overcoming entry barriers 195

Strategic focus: Cross-border acquisitions by

organisations from emerging economies:

leveraging resources to gain a larger global footprint and market power 196

Cost of new product development and increased speed to market 198

Lower risk compared to developing new products 199

Increased diversification 199

Reshaping the organisation’s competitive scope 200

Learning and developing new capabilities 200

Problems in achieving acquisition success 201

Integration difficulties 201

Inadequate evaluation of target 202

Large or extraordinary debt 203

Inability to achieve synergy or harvest benefits 203

Too much diversification 204

Managers overly focused on acquisitions 205

Too large 205

Effective acquisitions 206

Restructuring 208

Downsizing 208

Down scoping 209

Leveraged buyouts 209

Restructuring outcomes 209

STUDY TOOLS 211

8 International strategy 218

Opening case study: An international strategy powers ABB’s future 219

Identifying international opportunities 221

Incentives to use international strategy 221

Three basic benefits of international strategy 222

International strategy types 224

International business-level strategy 225

International corporate-level strategy 227

Environmental trends 230

Liability of foreignness 230

Regionalisation 231

Choice of international entry mode 232

Exporting 232

Licensing 233

Strategic alliances 234

Acquisitions 235

New wholly owned subsidiaries 236

Dynamics of mode of entry 236

Strategic focus: Mondelez International: a global leader in

snack foods 237

Risks in an international environment 238

Political risks 238

Economic risks 239

The challenge of international strategies 240

Managing international strategies: size and complexity 240

Limits to international expansion 241

Strategic focus: Mexico’s FEMSA: building its international prowess 241

Strategic competitiveness outcomes 242

International diversification and returns 242

Enhanced innovation 243

STUDY TOOLS 244

9 Cooperative strategy 252

Opening case study: Global cars, with a twist 253

Strategic alliances as a primary type of

cooperative strategy 254

Types of major strategic alliances 255

Strategic focus: Samsung Electric is using diversifying

alliances to reduce its dependence on Google’s Android

operating system 256

Reasons organisations develop strategic alliances 258

Strategic focus: Industrial clusters: geographic centres

for collaborative partnering 260

Competition-reducing strategy 263

Business-level cooperative strategy 263

Complementary strategic alliances 264

Competition response strategy 266

Uncertainty-reducing strategy 266

Assessing business-level cooperative strategies 266

Corporate-level cooperative strategy 267

Diversifying strategic alliance 267

Synergistic strategic alliance 268

Franchising 268

Assessing corporate-level cooperative strategies 269

International cooperative strategy 269

Network cooperative strategy 270

Alliance network types 271

Competitive risks with cooperative strategies 272

Managing cooperative strategies 273

STUDY TOOLS 275

3 PART 3

STRATEGIC ACTIONS: STRATEGY IMPLEMENTATION 283

10 Corporate governance 284

Opening case study: General Electric’s complex

diversification strategy makes evaluation difficult for board directors 285

Separation of ownership and managerial control 288

Agency relationships 288

Product diversification as an example of an

agency problem 290

Agency costs and governance mechanisms 291

Ownership concentration 292

Ownership structures of companies in Australia 293

The increasing influence of institutional owners 293

Board of directors 293

Board of directors process 296

Enhancing the effectiveness of the board of directors 297

Executive compensation 298

The effectiveness of executive compensation 299

Strategic focus: Has more governance scrutiny made

large CEO compensation packages more reasonable? 300

Market for corporate control 301

International corporate governance 302

Corporate governance in Australia 302

Corporate governance in Germany and Japan 306

Corporate governance in China 307

Corporate governance in Spain 308

Governance mechanisms and ethical behaviour 308

Strategic focus: Rewarding top executives of one of the

most poorly governed banks in the world: Westpac 309

Corporate governance and organisation performance 311

Corporate social responsibility 311

STUDY TOOLS 313

11 Organisational structure and controls 321

Opening case study: Changing McDonald’s organisational

structure and controls: a path to improved performance 322

Organisational structure and controls 323

Organisational structure 324

Organisational controls 325

Relationships between strategy and structure 326

Evolutionary patterns of strategy and

organisational structure 327

Simple structure 328

Functional structure 328

Multi-divisional structure 328

Matches between business-level strategies and the

functional structure 329

Matches between corporate-level strategies and the

multi-divisional structure 332

Strategic focus: Globalisation and beer 333

Strategic focus: General Electric’s decline, new strategy

and reorganisation 339

Matches between international strategies and

worldwide structure 340

Matches between cooperative strategies and network structures 344

Implementing business-level cooperative strategies 345

Implementing corporate-level cooperative strategies 346

Implementing international cooperative strategies 347

STUDY TOOLS 348

12 Strategic leadership 355

Opening case study: Meg Whitman: a pioneering strategic leader 356

Strategic leadership and style 358

The role of executive managers 360

Executive management teams 361

Managerial succession 363

Strategic focus: Women in leadership 365

Key strategic leadership actions 366

Determining strategic direction 366

Effectively managing the organisation’s resource portfolio 368

Sustaining an effective organisational culture 370

Strategic focus: Organisational culture: is it really that important? 372

Emphasising ethical practices 373

Leadership and corporate social responsibility 374

Establishing balanced organisational controls 375

STUDY TOOLS 378

13 Strategic entrepreneurship 386

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 387

Entrepreneurship and entrepreneurial opportunities 389

Innovation 389

Product innovation 391

Entrepreneurs 391

International entrepreneurship 392

Internal innovation 393

Incremental and radical innovation 393

Implementing internal innovations 394

Cross-functional product development teams 395

Facilitating integration and innovation 396

Creating value from internal innovation 396

Innovation through cooperative strategies 397

Strategic focus: Social networking websites facilitate

innovation: application software innovation 398

Innovation through acquisitions 399

Strategic focus: Will these acquisitions lead to innovation

success or to strategic failure? 400

Creating value through strategic entrepreneurship 401

STUDY TOOLS 403

4 PART 4

CASE STUDIES 411

Introduction: A summary of the case analysis process 412

Case 1: JB Hi-Fi Ltd acquisition of The Good Guys 415

Case 2: Challenges at Australia Post 426

Case 3: Nyrstar NV: a case study in a failed vertical integration strategy 432

Case 4: Pfizer 442

Case 5: Atlassian 454

Case 6: The Sunshine Coast UNESCO Biosphere

Reserve and Smart City: a new governance

opportunity in a post-pandemic world? 458

Case 7: CrossFit at the crossroads 465

Case 8: The movie exhibition industry: 2018 and beyond 482

Case 9: Pacific Drilling: the preferred offshore driller 506

Case 10: The trivago way – growing without growing up? 522

Case 11: The Volkswagen emissions scandal 539

Case 12: Otis in the global elevator industry 549

Case 13: Dick Smith: the fall of an Aussie icon 555

Glossary 566

Name Index 572

Subject Index 580

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