Strategic Management: A Dynamic Perspective ^{2nd Ed.}

International Edition

Key Benefit — Carpenter/Sanders is the first book built around a dynamic perspective on strategy

Key Topics — Three themes constitute the dynamic perspective on strategy: (1) changing strategies for changing times, (2) the integration of formulation and implementation, and (3) strategic leadership.

Crafting Business Strategy for Dynamic Contexts — Chapter 6 is the aggregate of much of the current research on dynamic strategies, including: Competitive Dynamics, Technological Changes, and Hypercompetition . After reading the chapter, students will learn models that guide them through formulating and implementing a strategy in a dynamic, or changing, environment.

Strategy Diamond: The strategy diamond outlines five key elements necessary for creating a complete strategy: arenas, vehicles, differentiators, staging, and economic logic. The Strategy Diamond gives students a concrete model for considering all aspects of a strategy in order to create and implement a complete strategy. The arenas and staging elements deal specifically with the dynamic aspect of strategy.

How Would You Do That' exercises — There are two of these robust exercises in each chapter, immersing students in the implementation challenges real companies face. The exercises allow implementation to remain in the forefront of the student's minds even in the formulation chapters.

Market — For undergraduate/MBA strategic management courses.

• PART ONE: STRATEGY AND STRATEGIC LEADERSHIP IN DYNAMIC TIMES
  1. Introducing Strategic Management
     • Three Overarching Themes
     • What Is Strategic Management?
       • The Strategic Leader's Perspective
       • Why Study Strategy?
       • What Is Strategy?
       • Business Strategy Versus Corporate Strategy
     • Strategy Formulation and Implementation
       • Strategy Formulation
       • Strategy Implementation Levers
     • How Would You Do That? 1.1
       The Five Elements of Strategy at JetBlue
       • Strategic Leadership
     • What Is Competitive Advantage?
       • Determinants of Competitive Advantage
     • Summary of Challenges
     • Review Questions
     • Experiential Activities
     • How Would You Do That?
     • Endnotes
  2. Leading Strategically Through Effective Vision and Mission
     • Strategic Leadership
       • What This Chapter Is About
       • The Roles Leaders Fill
       • The Skill Set of the Effective Strategic Leader: The Level 5 Hierarchy
       • What Does It Take to Be a CEO?
       • What Makes an Effective Executive Team?
     • How Would You Do That? 2.1
       Mapping Your Social Network
     • The Imprint of Strategic Leadership: Vision and Mission
       • Defining Vision and Mission
       • What Should Vision and Mission Statements Encompass?
       • Why Vision and Mission Statements Are Not Substitutes for Strategy
       • Goals and Objectives
     • Strategic Purpose and Strategic Coherence
       • Strategic Purpose
       • Strategic Coherence
     • Stakeholders, Stakeholder Analysis, and Stakeholder Planning
       • Stakeholders and Strategy
       • Stakeholder Analysis
       • Stakeholder Planning
     • Ethics, Biases, and Strategic Decision Making
     • How Would You Do That? 2.2
       Driving Stakeholder Analysis at Tritec Motors
       • Ethics and Strategy
     • Summary of Challenges
     • Review Questions
     • Experiential Activities
     • How Would You Do That?
     • Endnotes
• PART TWO: THE INTERNAL AND EXTERNAL ENVIRONMENT OF STRATEGY
  3. Examining the Internal Environment: Resources, Capabilities, and Activities
     • Internal Drivers of Strategy and Competitive Advantage
       • Internal Models of Competitive Advantage
       • Strategic Leadership
     • Resources and Capabilities
       • Resources
       • Capabilities
       • The VRINE Model
     • Dynamic Capabilities
       • Resources as Stocks and Flows
       • Rebundling Resources and Capabilities
     • The Value Chain
       • Tradeoff Protection
       • Seeking Clues to Value Chain Advantages Through Financial Analysis
       • Outsourcing, Offshoring and the Value Chain
     • How Would You Do That? 3.1
       Applying DuPont Analysis to Understand Competitive Advantage in Retailing
     • Strategic Leadership: Linking Resources and Capabilities to Strategy
       • Senior Managers
       • Middle Managers
     • Summary of Challnges
     • Review Questions
     • Experiential Activities
     • How Would You Do That?
     • Endnotes
  4. Exploring the External Environment: Macro and Industry Dynamics
     • The External Context of Strategy
       • Industry- and Firm-Specific Factors
       • Fundamental Characteristics of the External Context
       • Key Questions
     • Macro Environment
       • PESTEL Analysis
       • Globalization
     • Industry Analysis
       • I/O Economics and Key Success Factors
       • What Is an Industry?
       • A Model of Industry Structure
     • How Would You Do That? 4.1
       A Five-Forces — Plus Complementors — Analysis of the U.S. Airline Industry
       • Competitor Analysis
       • The Value Curve
     • How Would You Do That? 4.2
       Evaluating the Value Curve in the Wine Industry
     • Dynamic Characteristics of the External Context
       • Drivers of Change: Making the Five-Forces Model Dynamic
       • When Industries Divide
       • When Industries Collide
     • Summary of Challenges
     • Review Questions
     • Experiential Activities
     • How Would You Do That?
     • Endnotes
• PART THREE: BUSINESS, CORPORATE, AND GLOBAL STRATEGIES
  5. Creating Business Strategies
     • An Introduction to Business Strategies
     • Types of Strategies — Finding a Position That Works
       
       • Generic Strategies
     • Economic Drivers of Strategic Positioning
       • Drivers of Low-Cost Advantage
     • How Would You Do That? 5.1
       How to Take the Learning Curve on Two Wheels
     • Threats to Successful Competitive Positioning
       • Threats to Low-Cost Positions
       • Threats to Differentiation Positions
       • Threats to Focus Positions
       • Threats to Integrated Positions
     • Strategy and Fit with Industry Conditions
       • Strategies for Different Industry Conditions
     • Testing the Quality of a Strategy
       • Does Your Strategy Exploit Your Firm's Resources and Capabilities?
       • Does Your Strategy Fit with Current Industry Conditions?
       • Are Your Differentiators Sustainable?
       • Are the Elements of Your Strategy Consistent and Aligned with Your Strategic Position?
       • Can Your Strategy Be Implemented?
     • Summary of Challenges
     • Review Questions
     • Experiential Activities
     • How Would You Do That?
     • Endnotes
  6. Crafting Business Strategy for Dynamic Contexts
     • Strategy and Dynamic Contexts
       • The Challenges to Sustainable Competitive Advantage
     • Revolutionary Strategies That Lead Industry Change
       • Reconceive a Product or Service
       • Reconfigure the Value Chain
     • How Would You Do That? 6.1
       [yellow tail]® Creates a New Value Curve in the Wine Industry
       • Redefine Your Arenas
       • Rescale the Industry
       • Reconsidering the Competitive Mindset
     • First Movers, Second Movers, and Fast Followers
       • First-Mover Strategy and the Industry Life-Cycle
       • The Pros and Cons of First-Mover Positioning
       • First Movers and Complemetary Assets
     • Defensive Strategies for Incumbents Caught Off-Guard
       • Containment
       • Neutralization
       • Shaping
       • Absorption
       • Annulment
       • The Pitfalls of the Retaliatory Mindset
     • Summary of Challenges
     • Review Questions
     • Experiential Activities
     • How Would You Do That?
     • Endnotes
  7. Developing Corporate Strategy
     • Corporate Strategy
       • The Evolution of Diversification in then United States
     • Economic Logic of Diversification: Synergy
       • Economy-of-Scope Synergies
       • Revenue-Enhancement Synergies
       • Economic Benefits of Diversification
       • Limits of Diversification Benefits
       • Resource Relatedness and Strategic Similarity
       • Ulterior Motives for Diversification
     • Types of Diversification
       • Vertical Scope
       • Horizontal Scope
       • Geographic Scope
     • How Would You Do That? 7.1
       Six Steps to a Profit Pool
     • Strategies for Entering Attractive New Businesses
       • Focus on an Niche
       • Using a Revolutionary Strategy
       • Leverage Existing Resources
       • Combination Strategy
     • Competitive Advantage and Corporate Strategy
       • Arenas
       • Resources
       • Implementation
     • Corporate Strategy in Stable and Dynamic Contexts
       • Corporate Strategy in Stable Contexts
       • Corporate Strategy in Dynamic Contexts
     • How Would You Do That? 7.2
       Evaluating Discovery at Disney
     • Diversification in a Dynamic Context at Disney
     • Summary of Challenges
     • Review Questions
     • Experiential Activities
     • How Would You Do That?
     • Endnotes
  8. Looking at International Strategies
     • International Strategy
     • International Strategy and Competitive Advantage
       • The Pros and Cons of International Expansion
       • Key Factors in International Expansion
     • Using CAGE to Choose Foreign Countries
     • How Would You Do That? 8.1
       Putting CAGE to Work at Virgin Mobile
     • Entry Vehicles into Foreign Countries
       • Exporting
       • Alliances
       • Foreign Direct Investment
       • Importing and International Strategy
     • International Strategy Configurations
       • Resolving the Tension Between Local Preferences and Global Standards
       • Born-Global Firms
     • Summary of Challenges
     • Review Questions
     • Experiential Activities
     • How Would You Do That?
     • Endnotes
• PART FOUR: STRATEGY VEHICLES FOR NEW DIRECTIONS
  9. Understanding Alliances and Cooperative Strategies
     • Strategic Alliances
       • Growth of Alliances
       • Failure Rates
     • Why Alliances?
       • Alliances and Competitive Advantage
       • Alliance Motivation over Time
     • Form and Structure of Alliances
       • Joint Ventures and Other Equity Alliances
       • Nonequity Alliances
       • Multiparty Alliances
     • Alliances as Strategy Vehicles
       • Alliances and Business Strategy
       • Corporate and International Strategic Alliances
       • Alliance Networks
       • Risks Arising from Alliances
     • Alliances in Stable and Dynamic Contexts
       • Relative Stability and Alliance Motivation
       • Relative Stability and the Coevolution Model of Corporate Strategy
     • What Makes an Alliance Successful?
       • Understanding the Determinants of Trust
       • Managing Knowledge and Learning
       • Understanding Alliance Evolution
       • Measuring Alliance Performance
       • Dedicated Alliance Function
       • When Do Partners Fit?
     • How Would You Do That? 9.1
       Assessing Alliance Fit at Millennium Pharmaceuticals
     • Summary of Challenges
     • Review Questions
     • Experiential Activities
     • How Would You Do That?
     • Endnotes
  10. Studying Mergers and Acquisitions
      • Motives for Mergers and Acquisitions
        • Differences Between Acquisitions and Mergers
        • Managerial Self-Interest
        • Hubris
        • Synergy
      • Mergers, Acquisitions, and Strategy
        • The Vehicle and Its Economic Logic
        • Benefits of Acquisition over Internal Development
        • Drawbacks of Acquisition over Internal Development
      • Types of Mergers and Acquisitions
        • Types of Acquisitions
      • Pricing and Premiums
        • Pricing
        • Premiums
      • How Would You Do That? 10.1
        The Impact of Premiums on Required Synergies
      • The Acquisition Process
        • Stages of the Acquisition Process
      • Integrating and Implementing an Acquisition
        • Strategic Interdependence
        • Need for Autonomy
        • The Implementation Process
      • Acquisitions in Different Industry Contexts
        • M&As and Industry Life Cycle
        • M&As in Dynamic Contexts
        • M&As and Coevolution
      • Summary of Challenges
      • Review Questions
      • Experiential Activities
      • How Would You Do That?
      • Endnotes
• PART FIVE: IMPLEMENTATION, NEW VENTURES, AND GOVERNANCE IN DYNAMIC CONTEXTS
  11. Organizational Structure, Systems, and Processes
      • Interdependence of Strategy Formulation and Implementation
        • A Model Company
        • The Knowing-Doing Gap
      • How Would You Do That? 11.1
        Developing a Balanced Scorecard for the NUWC
      • Implementation Levers
        • Structure
        • Forms of Organization Structure
        • Systems and Processes
        • People and Rewards
      • Strategic Leadership and Strategy Implementation
        • Decisions About Levers
        • Decisions About Resource Allocation
        • Communicating with Key Stakeholders About Strategy
      • Implementation Levers in Global Firms and Dynamic Contexts
        • Implementation Solutions for Global Firms
        • Implementation Levers in Dynamic Contexts
        • Linking Strategy Implementation to Staging
      • Summary of Challenges
      • Review Questions
      • Experiential Activities
      • How Would You Do That?
      • Endnotes
  12. Considering New Ventures and Corporate Renewal
      • From New-Venture Creation to Corporate Renewal
        • New-Venture Creation Versus Corporate Renewal
      • Entrepreneurship and the Entrepreneurial Process
        • What Is Entrepreneurship?
        • The Entrepreneurial Process
      • New-Venture Creation and Corporate New Venturing
        • New-Venture Scenarios
        • Corporate New Venturing
      • Initial Public Offerings and Managerial Professionalism
        • How Does an IPO Work?
        • Cost of an IPO
        • An IPO or a More Formal Organization?
      • Why Do Organizations Fail?
        • External Causes of Organizational Failure
        • Internal Causes of Organizational Failure
      • How Would You Do That? 12.1
        Are Ford's Numbers Fizzy or Flat?
      • Strategic Change and Organizational Renewal
        • The Change Process
        • Turnaround Management
      • Summary of Challenges
      • Review Questions
      • Experiential Activities
      • How Would You Do That?
      • Endnotes
  13. Corporate Governance in the Twenty-First Century
      • What Is Corporate Governance?
      • Corporate Governance and Competitive Advantage
        • Evidence That Governance Works
        • Corporate Governance and Strategy
        • The Major Parties in Corporate Governance
        • Codes of Governance
      • Ownership and the Roles of Owners
      • The Board of Directors
        • Insiders Versus Outsiders
        • The Board's Activities and the Company's Strategy
      • Executive Compensation
        • Executive Ownership
        • Incentive Compensation
      • How Would You Do That? 13.1
        Doing Some Repairs at Home Depot
      • The Market for Corporate Control
      • The Faces of Corporate Governance Around the World
        • Differing National Governance Practices
        • The Case of Germany
        • The Case of China
      • Summary of Challenges
      • Review Questions
      • Experiential Activities
      • How Would You Do That?
      • Endnotes
• PART SIX: CASE STUDIES: PULLING IT ALL TOGETHER
  1. Robin Hood
  2. Three Dimensional Printing
  3. Sothwest Airlines
  4. Pleasant Valley Elementary School: Celebrating Success One Student at a Time
  5. Prince Edward Island Preserve Co.
  6. ESRI: Changing World
  7. ICMR Case Collection: Li and Fung — The Global Value Chain Configurator
  8. Update: Music Industry in 2006
  9. Razorfish
  10. Embraer: Shaing up the Aircraft Manufacturing Market
  11. Wal-Mart in the 21st Century: A Global Perspective
  12. Home Depot's Strategy Under Bob Nardelli
  13. Ryanair — The "Southwest" of European Airlines
  14. Airbus — From Challenger to Leader
  15. Hornby Plc: Building Communities
  16. Oracle Corporation: Transformation to an e-business
  17. McDonald's and the McCafe Coffee Initiative
  18. House of Tata, 1995: The Next Generation (A)
  19. Apple's iPod System: iPod, iTunes and Fairplay
  20. Coca-Cola's Re-Entry and Growth Strategies in China
  21. Neilson International in Mexico (A)
  22. eBay International
  23. Renault-Volvo Strategic Alliance (A): March 1993
  24. Symbian Ltd. and Nokia: Building the Smart Phone Industry
  25. British Airways — USair: Structuring a Global Strategic Alliance (A)
  26. Oracle: Growth by Acquisitions
  27. The Expansion of Vincor
  28. Cisco Systems, Inc.: Acquisition Integration for Manufacturing (A)
  29. Implementation of the Balanced Scorecard as a Means of Corporate Learning: The Porsche Case
  30. Google in China
  31. Green Room Productions, LLC
  32. Blue Whale Moving Company, Inc. (A)
  33. AtomShockwave (A): A Venture Rollercoaster in the Online Entertainment Industry
  34. David Walentas' Two Trees Management Company
  35. DaimlerChrysler: Corporate Governance Dynamics in a Global Company
  36. Trouble in the "Magic Kingdom" — Governance Problems at Disney
  37. VNU's Strategy Derailed by Active Investors

This is something as odd as a MBA-level book on strategy, with a fresh perspective. In fact, it's nearest competitors are probably Grant or Johnson and Scholes.

Excellent reading, very good explanations, consistent views.

The bad part is that a third of the book is made up of case studies (but that may be my preferences talking) and that it is sometimes screaming bad, American, dot.com layout in certain parts of the book. But if you can live with it, I can wholeheartedly recommend this book, to both beginners and practitioners, for a fresh look at strategy (aka the Dynamic look).