crafting and executing strategy

Chapter

I

page6:

David PaulMorris/Bloombergvia Geffylmages; page 11: @ PRNEWSWIRE / AP

@

Chapter 2 page 26: @ 2010, Zappos.com, Inc.; page 30: |oe Raedle/Getty Images; page 39: Reed/Reuters/Corbis; Jay Mallin/Bloomberg via Getty Images

@

|ason

Chapter 3 page 73: @ Bloomberg via Getty Images; @ Bloomberg via Getty Images

Chapter 4 page 100: @ KP Maclane/Brian Woodcock

Chapter 5 page 127: @ Bloomberg via Getty Images; page 137l. @ Willie Davis/Aravind Eye Founda-

tion; page 138:

@

Martin KlimeVZUMApress.com

Chapter 6

page 153: @ PRNewsFoto/Gilt Groupe/AP; page 157: @ Amazon.com; page @

Bloomberg via Getty Images; page 166:

@

161

American Apparel

ChapterT page 192: @ Bloomberg via Getty Images; page 205: Corbis; page 208: @ Bloomberg via Getty Images

@

Julie Dermansky/fulie Dermansky/

Chapter 8 page 248: @ AP Photo/Mike Derer; page 250: @ Bloomberg via Getty Images

Chapter 9 page 259 @ Bloomberg via Getty Images; page 267 @ PRNewsFoto/Novo Nordisk/AP; page 273: @ Bloomberg via Getty Images

Chapter

l0

page294: @ Proctor and Gamble; page298:

Chapter

@

Toyota; page 303

@

Apple Inc.

ll

page 326: @ Paulo Fridman/Corbis; page 333: @ Bloomberg via Getty Images; page 336l. Bloomberg via Getty Images

@

Chapter 12 page 345: @ PRNewsFotoiW L. Gore & Associates/AP

4d e. f. a.urr-t"1,, tO: A&E Channel, 254, C-279 A&W All American,205, C-123 ABC network, 254,C-95, C-133, C 134, c-27 3, C 27 s, c-27 I, C-27 9 - C -280, c,280, c-282 Abercrombie & Fitch, C-60, C-61, C-63 Aber Diamonds, 162, C-85 ABP Corporation, C-97 Academy Sports and Outdoors, C-50 Accenture, 103,208 Acer, C-182, C-192 market share in PCs, C-191 Adamson, Winery, C-393 Adelphia, 354 Adidas Group, C-43,C-52, C-56, C-59, C-71 business units, C-56 C-57 celebrity endorsements, C-58 event sponsorships, C-7 financial data, C-57

1

operations, C-57-C-58 outsourced production, C-58 research and development, C 58 sponsorships, C-58 Adobe, C-182 Advent International Corporation, C-60

AerLingus,151 Aerospatiale, 301 Affiliated Computer Services, 2 1 8 African Rhino Specialist Group, C-369 Africa Sport Hunting Safaris, C-377-C-379 AgFirst Farn-r Credit Bank, C 204 AgroFair, C-150

AIG.362 Airbus, 187

Air France-KLM, 276 Alle gro Manufac

t:ur

ing, 226

Allied Signal, 325 Allstate Insurance, 164 AIIy Financial, 264 Altria Group, C-287, C-289, C-290 Amazon.com, 41, 98, 150, 153, 294, 303, 330,359, c'20,c 26, c-132, c-134,

c

266, c-318 [ir.l-mor er adr antage.

I

5i

Amazon Instant Video, C-132, C-133 Anrazon Kindle, C-29-C-30, C-32, C-193 Amazon Prime Instant Video, C-135 C-136 Amazon Video on Demand, C-168, C-182 Ambassador Steel Corporation, C-20 Ambi Pure Air Care,247 AMC movie theaters, C-318 America Movil, 3

American Apparel, 176 vertical integration strategy, 1 66 American Buildings ComPanY, C-224 American Express, 153, C-16, C-25 American Lock,229 American Red Cross, C-2.74, C-328-C-329 American Youth Football, C-49 Amgen,358 employee motivation, 333 Anaheim Angels,254, C 275

Anheuser-Busch, 61, 7 0, I23 Animal Compassion Foundation, 278 Animal Planet, 136 Ann Taylor Stores, 29 Ansteel, C-241 AOL Time Warner, 37 Aplen, C-50 Applebeet, C 99 data on, C-100 Apple iBooks, C-31 Apple iBookstore, C-30 Apple Inc., 3,7 -8, 31, 65, 87, 90, 98, 130, ).63,222,258, 301, 3s2, C-20, C-31, c 78, C-134, c-168, c-186, C-211,

c

216, c-219

App Store, C-181 failure to enforce supplier code of conduct,259 financial performance 2007 -20 I I, C-1B1

outsourced value chain activities, 303 rivalry with Google L.rc., C 180-C-181 Apple Inc., case App Store, C-195 challenges facing, C- 187 competition in smartPhone market, C-187 competitive Position personal computer industry, C-192 personal media player industry, C-194 smartphone market, C I s5 concerns about Google, C-197 entry into tablet computer market,

c-792-c-r93 financial performance 2007

20II'

c-189 financial performance 2012, C-I97 iTunes, C-194 C-195

market capitalization in 2012, C-187 market share in smartPhones, C-196

in PC industrl', C-190-C

192

post-Steve Jobs era, C-187 revenue growth, C-187 rivals in PC industrY

DellInc,C-193-C

194

Hewlett-Packard, C- 193 sales, C-187 sales by operating segment,

C-i90

smartphone market, C- 195-C- 197 Steve Jobs era

launch ofiPhone, C-188-C 189 launch ofiPod, C-188 loss ofposition, C-188 product releases, C-188

rehired ir 1997, C-188 resignation and death in 201 1, C 189

turnaround

success,

C

189

Apple iPad, C 30, C-32 Apple iTextbooks, C-30 Apple iTunes, C-132, C-133,

c-194-c 195,c-3r7 Applied Productivity and Quality Center, 10,1 App Store, C-195 Aramark Food and Services, C-314 Araujo Estates Wine, C-397

Aravind

Eye Care System, 136

low-cost strategY, 137 ArborOne, C-206, C'207

ArcelorMittal, C-241', C 244 ArcelorMittal USA, C-245 earnings and revenues, C 244 ARCOM, C-206 Arla Foods, C-3I6 Armani, 199 Army and Air Force Exchange Service, C-50

Artesa, C-397

Ashworth,C 53,C

71

Asia Pacific Group, C-61

Asics,C15,C53 ASU5, nrarket .hrre in PC.. C- lql Atex, C-212 Athleta, C-71 Atlanta Bread Companl', C-99 clata on, C-100 Atlantic Rural Exposition, C-203 Atlee Landscaping, C-205

AI&T,216, c-132 AT&T Mobility, C 195 AT&T U-verse, C 134 Au Bon Pain, C 97, C'99 data on, C- 100 Auburn Steel Con'rPanY, C-228

Audi, 141 Aulani Disney Resort and SPa, C Avon Products, Inc.,31, 133 acqui:ition oiTiffanl' C-85

280

business ethics, 73 financial statements, I 13-1 16

I-1

l-2

Company Index

R L,J BackRub, C-169

Baidu, C-179 Baja Fresh, C-123

B&Q,272 Bank of America, 160, ).62, 220, 264 Bank of America/Merrill Lynch, C-77 Baosteel, C-241

Barker Steel Company, C-20 Barnes & Noble, C-20, C-26, C-31 Baseball Factory, C-49 BASR 41, 124 Bass Pro Shops, C-50 Bath &BodyWorks, 164 Bayonne Packaging, Inc., case

company history, C,359-C-360 equipment, C-364 income statement, C-361 management by walking around, C-359,

c-360-c-368 operations, C-365-C-366 order flow, C-364 quality control problems, C-360 revenue recognition, C-360 sales management problems, C-362-C-365 scheduling, C-366 C-368 setup and run tim e, C,362 value of shipments, C-363 BBC Worldwide, C 130 Beaird-Poulan, 225 Beam Inc.,229 Beaulieu, C 397 Bebe Stores, C 72 Bell helicopters, 229 Ben & |erry's, 279, C-377 Benchmarking Exchange, 103

Benchnet, 103 Beringer Vineyards, C 397 Beringer Wine Estates, C 399 Berkshire Hathaway, 3, 23 I Bernard L. Madol[ lnvestment Securities, 264

investment fraud, 265 Best Buy, 61, 145,325,334, C,20, C-23,

c-t32, c-r82 Best Buy Cinema Now, C-132 Best Practices, LLC, 103

Bethlehem Steel Corporation, C 228 Bic, 128

Blockbuster, C-132, C-135 Blockbuster Express, C- 132 Blockbuster@Home, C- 135 Blockbuster Online, C-133 Bloomingdalet, C-74 Bloomingfoods Coop, C- 150 Blue Coral Seafood Spirits, 253 Blue Nile, Inc., C-88 description, C-93 BMW AG, 7 ,2s, 130, 14t, 146, t80,276 Body Shop, 279 Boeing Company,301 Boeschen Vineyar ds, C-397 Bogner, C-53

Bombardier, 225 Bonefish Gr1lI,252 Bosch, 130 Boston Beer Company, 7 0, 1 62 Boston Consulting Group, 293 Boston Marathon, C-58 Bouchaine Vineyards, C-397 Bowman Companies, C-202 Brattleboro Food Co-op, C-150 Briggs & Stratton, 128 Bright House Networks, 169 Brinker International, C- 100 Bristol-Myers Squibb, horizontal acquisition strategy,161 British Airways, 151, 328 British Petroleum, 330, 362 British Steel, C-228 British Telecommunications, 216, 27 I Broadcom, 300-301 Brother International, C-2 I 8 Bruegger's, data on, C-100

BTR,243 244 Bugati, 133 Buick,305 Bulgari, C-86 description, C-92-C-93 Burberry, 199, C-77 Burger King, 301, C-97, C-318 Burghy,220

Steel Corporation, C 228 Wholesale Club, C-20, C-317 description, C-23 differentiating features, C-23-C-24 financial data, C 24 marketing and promotion, C-25 membership, C-24-C-25 operations, C-25 product offerings, C-23 Black & Decker, 225

Cahfornia Pizza Kitchen, C-99, C-290 data on, C-100

California Sustainable Winegrowing Alliance, C-396, C-397, C-399

California Tortill a, C - 123 Callaway Golf Company, 89 Calphalon,230 Calvin Klein, C-Iz, C-77 Campbell Soup Company, 130, C-15 Canada and North American Foodservice, c-290, c-297, C-294 Cannon Gun Safes, C-15 Canon, 202, 297, C-15, C-273, C-218 Capital One,325 Caracol, C-130 Carlson's Restaurants, C- 102

Carrabbat Italian Grill, 252 Carrefour, I07, C-260 Carrier,253 Cartier, i36, 799, C-77, C-86, C-93, C-94 Carvel Ice Cream, C-124 Casio, C-15 Castrol, 193 Caterpillar, 29 CBC Steel Buildings, C-224 CBS Television, C-130 Cerberus Capital Management, 357 Cessna,229

CGA, Inc., 136 Champion, C-53 Chanel, 7, 71, C-78 Charels Schwab, 130

Charter, C-132, C-134 Chateau Boswell Winery, C-397 Chateau Montelena, C-397 Chateau Ste. Michelle, C-399 Chattaronga Safaris, C-379-C-380 Cheeseburger in Paradise, 253

Chery Automotive Company, Ltd., C-254 Chevrolet, 305, C-253

Chevron,30l

Burtt Bees,272

Cheq. Volt, 280

corporate social responsibility, 273 Business for Innovative Climate and Energy Policy coalition, C-328 Business Roundtable, 270 Butter Lane Bakery, C-33

Chick-Fil-A,278 Chicot, 164

BYD,170

Birmingham BJ's

California Association of Wine Growers, c-396

r Cabela's, C-50

Cadbury, 250, C-290, C, 292 CADE Winery, C-397 Cadillac, 141,305 Cain Vineyard and Winery, C 397 Cakebread Cellars, C-397

Children's Hospital, C-19 Chili's Bar and Grill, C-99

dataon,C

100

Chipotle Mexican Grill, C-99 data on, C-100 Chipotle Mexican Grill, case acquired by McDonald's, C-l l5 advertising, C-120-C-12I brand awareness, C-121 branding, C-l2I companyhistory, C-l14 C l15 compensation, C-120 competition for Moe's Southwest Grlll, C-124

I-3

Company Index balance sheet 2006-201 1, C-8

promotion, C-121

number ofretail stores, C-73 outsourced manufacturing, C-73 outsourcing agreements, C-74 pricing strategy, C-74 product line, C-79 retail distribution in China, C-82 factory outlets, C-81 full-price stores, C-80-C-81 by geographic region, C-81 in )apan, C-81-C82 sales growth, C-73 sales growth and earnings 2012, C-74 stock price performance, C-74, C-76 strategic options in 2012, C-82-C-83

quality assurance, C-l 19

strategic priorities

employee compensation, C-

Qdoba Mexican Grll, C-124-C-125 Taco Bell, C-123-C-124 corporate culture, C-120 customer loyalty program, C- 121 divested by McDonald's, C- I 15 financial performance, C- I 1 5-C- 1 l6 growth since 1993, C-ll4 hiring practices, C-120 initial public offering, C- I l4 management, c- I 19-C- 120 marketing, C - 120 - C - l2L operations, C-l l6-C-1 i9 outlet development and construction costs, C-122-C-123

revenue growth 2007-201I,

C-l15

revenues, C-114 ShopHouse Southeast Asia Kitchen

concept, site selection,

c-II4,c-123 C-l2l-C-122

stock price performance, C-1 14 strategy elements, C-l 14

Chocklett Press, C-205 Chrome, C-182 Chrysler Group LLC, I 16, 187, 357 culture change, 358 Chunghwa Telecom, C-266 Ciba Vision, 325-326 Cinemax, C-133, C-135 Cinnabon, C-15,C-I24 Circuit City, C-20 Cisco Systems, 160, 168, 173,294-295,

c-332 Citigroup, 243,264 Citizen Holdings Company, 223 Classic Sports Network, 254 Clear Channel Communications, 169-170 Clearwide, 169 Clorox Company, 273 Clos Du Vaal, C-397 Clos Pegasse, C-397 CNN, I33 Coach China, C-82 Coach Inc., 167, C-12 Coach Inc., case acquisition by Sara Lee, C-74 aggressive competition for, C-73 balance sheet, C-7 5-C-7 6 st r ate gy, C -7

e-commerce, C-73 raise brand awareness, C-73 target men as customers, C-73 strategy against rivals, c-73 turnaround plan, C-74 wholesale locations, C-82

t60,272,280,

9

-

C

-

80

financial data by channels ofdistribution,

c-81 flexible outsourcing, C-79 general and administrative expenses, C-82 income statement, C-75 industry position, C-79 in luxury goods industry, C-7 -C-78 marketing research, C-7 4 net revenue, C-73

compliance with laws, C-18-C-19 respect suppliers, C- l9 reward shareholders, C- 19 take care ofemployees, C-19 take care of members, C-19 company history, C-7

competition bases of, C-20

Blt Wholesale Club, C-23-C-25 Sam's C1ub,

C-20-C-23

core values, C-18-C-19

distribution, C-15

l6-C- l7

pricing strategy, C-9-C- 10 product selection, C-10-C-1

Coach |apan, C-81-C-82 Cobra Go1f, 89

Coca-Cola Company,3,25, 87,

code ofethics

environmental sustainabiliry C-20 executive compensation, C- I 8 geographic operating data, C-14 income statemenr 2006-20Il, C-8-C-9 low-cost leadership strategy for growth, C-12-C-I3 1

treasure-hunt merchandising,

l3l,

132,

c-rs

strategic vision, 23 Colgate-Palmolive, 167, C-15 College Food Services, C-302, C-303 Columbia, C-43, C 52, C-53 Comcast,169,C-132, C 133, C-134 Community Coffee, 136 Companhia Vale do Rio Doce, C-234 Compaq Computer, C-189, C-191, C-193,

c-346 Conair Corporation, 226 Concha y Toro, 21 1 Concorde Motors (India) Ltd., C -248 Conference Board, C- 153 Connecticut Steel Corporation, C-20 Conservation International's Center for Environmental Leadership, C-323 CONSTANT, C-397 Continental Airlines, 336 Converse, C-53

Coors,61 Corner Bakery Cafe, C-99 data on, C-100

Corning,223

company history, C-74

differentiation

build market share, C-73

business model, C-9

Corporate Knights,260 Corus Steel, C-228 Costco Companies inc., C 7 Costco Wholesale, 138, 145, C-3f 7, C-3f 8 diamond sales, C-94, C-95 jewelry products, C-94 sales in 201 1, C-94 Costco Wholesale, case advertising, C-13-C-14 annual sales, C-6-C-7

c,r1-c-12 management by walking around, C-6 management change 2012, C-7 marketing by, C-13-C-14 market position, C-6 membership base and demographics,

c-1s-c-16 mission statement, C-9 number of warehouses worldwide, C-6 recruitment and hiring, C-18 sales by product category, C- I I size of membership, C-6 store layout and size, C-12 suppliers, C-15 supply chain management, C-15 warehouse n'ranagement, C- 16 warehouses and contents, C- I 1 website sales, C-14-C-

l5

workforce practices, C- l7 Countr)"wide Financial, 354 Courtyard by Marriott, 139 Courvoisier,229 Cox, C-132 Cracker Barrel, C-99 data on, C-100 Craftsman, C-15 Cray,297 C-Spire, C-195 Ctrip, defenses against rivals, 208 Culinary Institute of America, C-114 Culver's, data on, C-101 Cummins Engine Company, C'247

Cutter & Buck, C-53 Cuvaison Estate Wines, C-397 CVS Pharmacies, 136, C-318

I-4

Company Index

tlIJ Daewoo Commercial Vehicle Company, Ltd., C-247 Daimler AG, 29, 1.68, 170,26t Daimler Benz AG,C-247 DaimlerChrysler, I 68, C-247 David l. foseph Company, C-235 David Yurman, C-88 Davis Food Co-op, C-150 Deans Beans, C-163 De Beers Group, 162,220

Deepwater Horizon,362 Deer Park Refinery, 168 DEFEXPO -India,C-247 Dell Inc., 42, 106, 125, 132,205-206,209, 224-225, 293_294, 301, C_ 15, c-187, c-r92 market share in PCs, C-191 rivalry with Apple in PCs, C-193-C 19,1 Descente, C-53

Deutsche Bank, C-203, C-204 Devilt Den, case, C-302-C-304 employee problems, C-302 C-303 management problems, C-303 unethicai behavior, C-302-C-30,1 DHL Worldwide, 329 Dickt Sporting Goods, C-43, C-50 Diebold, Inc,265-266 Digital Equipment, C-346 DineEquity, C 100

DIRECTV C.132 Discover card, C-25 DISH Network, C-132, C-134, C-135, c-168, C-182 Disney Brothers Studio, C 274 Disney California Adventure Park, C-275, c-278, C-281 Disney Channel,254, C-275, C-278, C-280 Disney Cruise Line, 253, C-273, C-275, c-280, C-281 Disney Interactive, C-27 5 Disneyland, C-281 Disneyland Paris, 196, C-275, C 2BI Disneyland Resort, California, C-280

Disney-MGM Studios, C-275 Disney Publishin g, C-275 Disney Radio, 254

Disneyt Castaway Cay, C-281 Disney Store, 254 Disney Studios, C 274 Disney Vacation Club, C-280, C-281 Dll Mill and Industrial Services, C-235 DJJ Rail Services, C-235 DKNY, C-77 Dolce & Gabbana, C-73, C-74, C-77, C-78 Dollar General, 106, 305, C-20 Dome Corporation, C-50

Dominot Pizza,l39 Dom Perignon, C-12

DoubleClick, C 179 Dowdy & Associates, C-202

DRB-HICOM's Defense Technologies, C-247 Dream Works Animation, 293 Dreyer's Grand Ice Cream, partnership Starbucks, C-316-C-317

with

Ducati Motorcycles, 132, 164, 182, 310

Duckhorn Vineyards, C 400 Duckhorn Wine s, C-397 Duferco Group, C 233 Duferdofin-Nuc or, C-233

balance sheet, C-159, C-165 business model, C-154

capital flow, C-160 circumventing Nicaragua embargo, C- 149 company history, C- 148-C- 150 compared to Thanksgiving Coffee,

Dumukwa, C-380 Dunbar Armored, C-205

Dunkin Brands,

c,t63-c-164

325

Dunkin Donuts, C-3

r

t-_ E. & J. Gallo Winery, 300 Eastbay, C-53 Eastern Bank,

Elevation, LLC, C-205 Emerson EIectric,225 Enagas S. A., 276 Energy Star, C-20 Enron Corporation,3T , 266-268, 354 Epson, l0 Equal Exchange, case

C-i60

i

Eastman Chemical, C-21 Eastman Dry Plate and Film Company,

c,212 Eastman Kodak,353 Eastman Kodak, case balance sheet, C-215

bankruptcy filin g in2012, C-211,

c-2r4-c,2r6 business-level strategy

commercial segment, C-217 -C-2I8 cousumer segment, C 218-C-219 business model, C-218-C-2 business units, C-2I7

1

9

cash flow problems, C-21i

company history, C-212-C 211 competition in inkjet printers, C-21 1 earnings before interest and taxes, C-216 financial condition in 2012. C-2II-C-212 financial performance 2012, C-2I9 lack of success in digital cameras,

C-211-C 213 management changes, C-21 3-C -274 net sales by business unit, C-215-C-216 number ofpatents held by, C-2 19 operations in2012, C-216 C-2I9 organizational structure, C-2 I 7 reorganization plan, C-216-C-217 revenue decline 2009 20f1,C-219 spinoff of Eastman Chemical, C-21I statement of operations 2007-2011, C-24 EasyCard Corporation, C-266 eBay, 153, C-88 EBSCO, 17s, 176

EDS,208 Edward fones, 293,360 Einstein Bros. Bagels, data on, C-101 Einstein Noah Restaurant Group, C-101 Electronic Arts, 88, 197

competition, C- 163-C- 164 diversification, C- 150 effect of recession, C- 164 as fair trade company, C-148 in fair trade industry, C-160-C-163 in financial crisis of2008, C-148 financlal performance, C- I 56-C- 1 58 hiring policy, C-154 income statement, C-158, C-164 increased competition, C- 148 investment in, C-158-C-160 low employee turnover, C- 1 54 management, C- 150-C- 151 marketing strategy, C- 1 54-C- I 56 advertrsrng,

L

155

fundraising, C-156 interfaith program, C- 156 product variety, C-156 mission, C 151 problems to deal with exploitation of farmers, C- 151-C- 153 lack ofconsumer awareness, C-153 working conditions in U.S., C-153 rapid expansion in 1990s, C-149 sales by state, C-157 sales growth 2006-2010, C-I57 strategy-making for the future, c 164-C-166 timeline, C-145 worker-owned co-operative,

c-t 49-c-ts4 Ernst & Young, 278 ESPN, 2s4, C,27 5, C-279, C-280 ESPN2,254 Estabrook Farm, C-151 Est6e Lauder, C-78, C-79 Ethical Tea Partnership, C 323 Ethicsphere,267 Ethos Water Fund, C-329 Etude, C-397 Evolution Fresh, Inc., C,320 Evraz, C-24I

Exelon Corporation, 313 Expedia, Lnc.,247 Extreme Clean U.S.A., Inc., C-205

ErronMobil.

150

I-5

Company Index

r

r

Fox Studios, 160

Facebook,293,352, C-34, C-36, C 50, c-168, C-179, C 186 Facility Management Institute, C-333 Fairfield Inn & Suite, 139 Fair Trade Commission, Taiwan, C-267 Fair Trade International, C 323 Fair Trade Labeling Organization International, C- l5 1, C-161 Fair Trade USA, C-160, C-161, C-163 Family Mart, C-261, C-267 Fannie Mae, 42, 362

corporate governance failure, 38-40 Far East Tone, C-266 Fauquier Bankshares, C-202 Fazoli's, data on, C 101 Federal Express,

7

-8, 107, 154, 328, 329, 347

Fed Mart, C-7

Fendi,TI,C

Global Fund and Product, C-329 GIobal Reporting Institute, 225 Global Social Compliance Program, C-328

Fox Sports, 160

74

Ferragamo, C-7 3,

C -7

4,

C

-92-C-93

Ferrari, 136, 182 Fiat-Chryslea 162 Fiat SpA, t87,357, C-247 FIFA Soccer, 197 FIFA Women's World Cup Germany, C-58 FIFA World Cup, C-58 Fila, C-52, C-53 Finish Line, C-50 Firefox, C-182 Firehouse Subs, data on, C-101 First Colony Coffee, C-4 First Division Rugby, C-51 First XV C-50

Fisher&LudlowC 20 Five Guys Burgers and Fries, C-99 data on, C-101 Flemingt Prime Steakhouse & Wine Bar, 252

Fluor Corporation, C-386 FOCUS Brar-rds, C-124 Focus Media, 208 Folgers, C-151

Food Lion, 61 Food Network, C-33

FootJoy,229,C

53

Footlocker, C-50 Ford Motor Company, 2I,42,176, l4l,152, r87, 196, 201, 222, 32s, C 253 Fort Howard Steel, C-20 Fortune Brands, 229 Fortune Brands Home & Security, 229

Franciscan Estate, C-397

Freddie Mac,42, 362 corporate governance failure, 38-40 Friedmant fewelry, C-90 Frito-Lay, 130, 138, 348 Frog's Leap Winery, case balance sheet, C-402-C-403 debt load, C-404 distribution channels, C-400 environmental management

25. 98. 169,222.293.294,

C I97

employee motivation, 333

managers and employees, C-399-C-400

production in 2011, C-399 sales growth, C-400

strategy-making, C-404 sustainability philosophy, C-400-C-403 biodynamic growing technique:.

c-400-c-401 dry farming, C-400 energy self-sufficiency, C-40 1 year-round employment, C-40 sustainable growth, C-404 vineyard acquisitions, C-400 Fuddruckers, data on, C-101 Fuji, C-15 Fujifilm, C 2Il, C-212, C-2I3 Fujitsu, 202 FX, 160

1

mission statement,24 Nexus tablet computer, C-193 Google Inc., case acquisition of Motorola Mobility, C-168 AdWords, C-175-C-178 alliances for Google TV, C-168 balance sheet, C-177 business ethics problems, C-185-C-186 business model, C-168, C-172-C-179 cloud computing initiative, C-168 company history, C- 168-C- 17 2 core values, C-169-C-170 features offered by, C -I72-C-175 financial performance, C- 176 initial public offering by Dutch auction,

c-r69 C-r7r Internet rivals

Microsoft,

{Galleon Group, 264 Galyant, C-43 Game Crazy, C-135 Gap, Inc., C-6I, C-7I, C 72

Gargiulo Vineyards, C-397 Gemological Institute of America, C-87 Genentech, 170 General Electric, 3, 32, 38, 128, 231, 232, 243, 323, 325, 334, 344, 359,

3

6l

Glaceau, 160

Fox network, 160 Fox News, 133, 160

GlaxoSmithKline, 271 Global Exchange, C-155

Fox Broadcasting, C-133, C-134, C-136

l.

Apple's concerns in 2012,

Fox Family Channel C-275

Foster Wheeler, 25

objectives, 30

Google Inc..

c,t92, C-r97, C-332

evolution of, C-393 financial ratios, C-403 income statement, C-402

Fox Conn, 303 Fox Entertainment, C-133, C-134

Foster's Group, C-399

Godiva Chocolates, 136 Golden Gate Capital, C-100 Goldman Sachs, 293, 362 Good Humor, C-317 Goody,230 Goodyear Tire Company, 164

325, 352, 3s8, C- 132, C-r34, C-187,

system, C-392

General Electric Capital, 229 General Electric Medical Diagnoslics, 229 General Foods, C-289 General Mills, 90, 223 General Motors, I 16, 141, 152, 187, 209, 297, 305,353, c-253 Gerdau, C-241 Gilbeys, 229 Gillette Company, 10, 247 Gilt Groupe, blue ocean strategy, 153 Giorgio Armani,253, C 73, C-77, C-78

Foster Farms, C-15

GMC,305

C- 183-C- 184 Yahool, C-i84 C-185 market position in 2012, C-168 market share browser market, C-182 search engine market, C-183 smartphones, C-181 problems in China, C-179 revenue by source, C- 178 revenues by region, C-180 revenues in 20i2, C-168

revenue sources,

C - 17 5

search technology,

-C-

17

9

C 175

stock price performance, C-169,

C I72

strategy-making control of desktop, C- 18 l-C- 182 dominate Internet advertistng, C-17 9 expand into TV C-182 rivalry in table comPuters, C-180 smartphone market, C- 180-C- 18 I Google TV, C-168, C-182 Graniterock, 360 Green Mountain Coffee Roasters, 277, C 4,

c-318, c-319, c-320 Greenpeace, 24 Greg Norman, C-53

Grey Goose Vodka, 107

t-6

Companv Index

Greyhound Lines, 106 Groupe Danone, C-290

Groupon,352 Gucci, 130, C-74,C 77 Guggenheim Museum, NY, 131 Gulf States Manufactuers, C-224 GW Sound, C-205

il H. I. Heinz Company, 61 strategic vision, 23

HALL,C-397 Hallmark,329 Hallmark Chann eL, C -282 Hamilton Sunstrand, 253 Handy Dan Home Improvement, 151 Hannover 96 football club, C-49 Hanson Trust, 230 Harley-Davidson, Inc., 106, 164 Harris Corporation, 318 Harris Poll EquiTrend, C-96 Harris Rebar, C-20 Harris Steel, C-224, C-230, C-237 Harry Winston, C-88 Hartmann, C-15 Hathawayshirts, C-12 Hautelook, 153 Haworth, C-344 HBO, C-132, C-133, C-134, C-135, C-136,

c-t45, c-282 HdV Wines-Hyde de Villaine, C-397 Heitz Wine Cellars, C-397 Helly Hansen, C-53 Hengdeli Holdings, C-93 Henkel AG, case acquisition ofNational Starch and Chemical Co.,C-349 bonus compensation group performance, C-353 individual performance, C-354 payout, C-354 team performan ce, C-353 brands, C-346 busincss segments, C-346 company history, C-346 competitors, C-347 core values, C-350 C 351

corporate culture, C-351 dives{ment ol underperforming brands, C-349 effect offinancial crisis, C-348 employee retention, C-345 executive discussion of strategy development ofvalues, C-354-C 355 effect of performance management,

c-35s-C-358 long-term targets, C-354 financial goals, C-346-C-349

financial performance 2000 -2010, C-347 management, C-3 5 -C-346 performance management, C 35 I -C-353 development roundtable, C -3 52 -C -3 53 evaluation grid, C-352 frame of orientation, C,353 plant closings, C-349 -C-350 product line, C 348 sales increase 2012, C-358 strategy-making, C-349 vision and values workshop, C-350-C-35I vision statement, C-350 Herman Miller Inc., case accessories team, C-342 C-344 balance sheet, C-341-C-342 board of directors, C-336-C-337 charitable contributions, C-337 company history, C-332-C 334 competitors, C-344 cooperative advertising, C 338 core values, C-335- C-336 corporate social responsibiliry C-335 cross-functional teams, C-337 and economic crisis of2000-2002, C-335 employee relations employees as shareholders, C-334 employee stock ownership plan,

c-334-c-335 empowerment, C-337 fringe benefits, C-340 promotion from within, C-340 retirement plans, C 340 Scanlon Plan, C-333 social contract, C-335 stock purchase plan, C-340 environmental advocacy, C-336 environmentally friendly design, C-339 environmental stewardship, C-334 fi nancial manage nent, C -3 40 -C - 3 42 in Great Depression, C-332 -C- 333 green marketing, C-338 growth prospects, C-344 human resource management, c 339,C-340 industry position, C-332 initial public olfering, C-333 international expansion, C-333 lean manufacturing, C-338-C-339 management, c-336-C-337 marketing, C-338 multiplant operations, C-333-C-334 in office equipment industry, C-344 product design, C-333 production, C-338-C-339 in recession of 2008-2009, C-335 recycling progra m, C - 337 research and deveiopment by, C-342 statement of operations, C-343 transparency, C-336 work teams, C-337

Hermes, C-74,C-77 Hess Collection Winery, C-397 Hewlett-Packard, 10, 27, 167, 209, 261, 303, 32t, C-t5,C-182, C-187, C-t92, C-21t. c-273, C-2t8, C-346 market share in PCs, C-191 net revenue 2007-2011, C-193 rivalry with Apple in PCs, C 193 Hibbett Sporting Goods, C 50

Hi-c,

160

Highland Capital Partners, C-60 Hi-Life, C-261, C-267 Hilton Garden Inns, C-338 Hilton Hotels Corporation,29,42. 189, C-316 Himaraya, C-50

Hindalco,209 Hipo Carrocera

SA,, C-247 Hirschler Fleischer, C 202 History Channel, 136 HNI Corporation, C-344 Hockey Canada, C-49 Hollinger International, 354 Holll'wood Video, C- 135 Home Depot, 25, 6I, 125,130, 151, 206,272, C-20 Honda Motors,28, 55, 116, 130, 141, 156,

t79,200,202,297,31.8 Honeywell Corporation, 325 Hong Kong Disneyland, C-275, C-278,C-281 Honig Vineyard and Winery, C-397

Horizon Airlines, C-3 16 Hour Glass Ltd., C-93 HSBC,243

HTC, C-i68, C-18t, C-r97, C-2rr,

c-2I6,C-2t9 smartphone market share, C-196 Hugo Boss, 30I, C-78 Hulu.com, 169-170, C-132, C-133, C-143

Hulu Plus, C

135

Hurley, C-15 Hyatt Hotels, C-316 Hyundai, C-250 Hlundai Engineering & Construction

Co.,Ltd.,276 Hyundai Heary Industries, 3 Hyundai Motors, 7-8

i i IAC/InterActive Corp, 247 IBM, 167,209, 353, C-188

Ideli,

153

IHS Screen Digest Research, C 134 IKEA,3, 107,283 Il Giornale Coffee Company acquisition of Starbucks, C-3 10 founding of, C-309 Inbev,70 Industrial Designers Society of Am ericu C-334

Company Index rhino poaching problem, C-369, c-382-C-383

Infosys Technologies, 208 ING Insurance, 301 Integrated Metals Technology, C-339 Intel Corporation, 58, 169, 352, C-168, C-182 Interfaith Program, C-156 International Brotherhood of Teamsters, C-16 International Coffee and Tea, 247 International Coffee Partnership, C-316 International Paper Company, 163, C-365 Internet Explorer, C-I82 Itausa-Investimentos Itau S/A, 276 ITEC Steel Inc., C-228

Kirkland Signature, C-10, C-15

ITT Corporation,254

Kraft Cheese Company, C-289 Kraft Foods, Inc., C-317, C-318

L. L. Bean,63

restructuring, 250 Kraft Foods, Inc., case acquisition by Philip Morris, C-289 acquisition of Cadb:ury, C-290, C-292 acquisition of Nabisco, C-290 balance sheet, C-298 brands, C-287

Ladera Vineyards, C-397

Iwerks-Disney Commercial Artisls, C-27 4 Izod, C-53

I

J

f. C. Penney, C-95 f.

Creq C-63 W Marriott Hotels,

Kmart, 305 Kodak,25, C-15 Kohlt, C-20 Koninklijke DSM N.V., 276 Koninklijke Philips Electronics N.V., 276

IFE,C-24r liangsu Shagang, C-241 fiffy Lube International, 7-8

limBeam,229 |imlar Corporation, C-79

fM Family Enterprises, employee motivation,

333

Iohn Deere, 55, 364 fohnson & lohnson, 7 -8, 247, 27 1, 364 diversification at, 248 product line, 253 fones ofNew Yorh C-15 foseph Phelps Vineyards, C-397 ]PMorgan Chase,264 luddt Hill, C-397 Just Coffee, C-163

r\ Kara's Cupcakes, C-37

Kellogg's,204 Kentucky Fried Chicken, 189, 205, C-123 Keurig Single-Cup Brewing, C-318, C-319 Kimberly-Clark, C-15 Kirby Building Syshems, C-224

KT Corporation,2T6 Kwa Zulu Natal Wildlife, C-371

L

C

-29 I - C -292

Developing Markets, C-294

Errope,C-294

Jack-in-the-Box, Inc., C-102, C-724 fackson Family Wines, C-395 faguar, l4l, C-246, C 247, C -248, C-252,

lapan Earthquake Relief Fund, C-329 lasons Deli, C-99 data on, C-101 lericho Canyon Vineyards, C-397 fetBlue Airways, 328, C-344

self-funding problem, C-369 services, C-372 Krupp Brothers, C-397

I

value chain, 100 KP Sports, C-43, C-44

139

c-253-C-254, c-255 lames fuver Equipment, C-205 lapan Airlines, 301

sales transactions, C-371

KP Maclane, 116

business segments,

I. M. Smucker,247 |.

KitchenAid, C-15 Klean Steel, C-228 KLM Royal Dutch Airlines, 191

r-7

financial performance 2007 -2071,

c-288 c-289 financial performance 2012, C-299 income statement, C-297 -C-298 international expansion, C-290 North America, C-293-C-294 restructuring in 2072, C-296-C-297 revenues by product category, C-296 revenues in 2011, C-287 company history, C-289 corporate strategy acquisitions, C-290 business lineup restructuring, C-290 divestitures, C-290 initial public offering, C-290 divestment by Altria Group, C-287 divestment of North American grocery business, C-287 -C-289,

c-296-c-297 nancial performance 2012, C-292-C-296 financial summa ry, C -29 4- C -29 5

fi

revenues, C-293

Kraft Foods Developing Markets, c-292,C-294 Kraft Foods Europe, C-297-C-292, C-294 Kraft Foods North America, C-291, c-293-C-294 Kroger,61, 727,C-318 Kruger National Park, case and animal supermarket, C-383 financial performance, C-370 game capture organization, C-372 history and description, C-369-C-370 income generati on, C-37 0-C-37 2 rhino capture, C-372-C-377 rhino hunting, C-377- C-382

Lacoste, C-53 Lafayette Tent & Awning Company, C-205

Lmbertson Truck, C-86 L&M Farms, C-202 Land Rover, C-246, C-247 , C-252, c-253-c-254, C-2s5 Larkmead Vineyards, C-397 Laugh-O-Grams, C-274 Laurel Steel, C-20 Leadership in Energy and Environmental Design (LEED), C-372, C-326, C-334,

c-338, C-401 Leap Wine Cellars, C 393 Lee Roy Selmont,253

Lender Group, C-203, C-204, C-205, C-206,

c-207,c-2t0 Lenovo, 209, C-182, C-194 Lenovo/IBM, market share in PCs, C-191

Lenox,230 LensCrafters,360 Levelor,230 Levi Strauss & Company, 24, C-75, C-36 Lexis-Nexis, 175,176 Lexmark, 10 LG Corporation, C-168 Lifetime channel, C-282 Lifetime network 254 LrfelimeTY, C-279 Limited Brands, C-60 Lincoln automobiles, 141 Lincoln Electric Company, 91, 358 employee motivation, 333 Linkedln, 352,C-35 Lionsgate, C-130 Lipton Tea, 277, C-3I7

Liz Claiborne, tnc., 364 LMP Steel & Wire CompanY, C-20 Logitech, C-168,C-L82 Long |ohn Silver's, 189, 205, C-723 Long Meadow Ranch WinerY, C-397 If,Orlal, 222-223, 3t2-313, C-346, C-347 product line, 253 Lotte Shopping CompanY Ltd.,276 Loughridge Appraisals Ltd. lnc., C-202 Louis Vuitton, 136, C-74, C-77 Louis Vuitton Moet Hennessy; see LVMH

I-8

Companv Index

Lowet' C-20 LTV Corporation, C-228 Ltrcy,C 72 lululemon Athetica, c-53, C-60 lululemon Athletica, case

Manning

Selr.age

&

28

Lee,

Microsoft Corporation, 25, 58, 130,

Maple LeafFoods, 162 Marchesi Antinori, C-399 Marchon Eyewear,rnc.,C-79

Marion

C-63 in Canada and Australia, C-60 community based marketing, c-68 company history, C-59-C 60 competitors, c-7r-c-72 core values, c-69-c-7r corporate culture, c-69-c-71 as cult phenomenon, C-60 distribution facilities, c-68 equity investors, C-60 financial performance, C-61 C-62 franchising by, c-63 growth strategy brand awareness, c-60-c-61 broaden appeal of products, C-6 1 international expansion, C 61 nerv product technologies, C-61 new stores in North America, c-60 initial public offering, C-60 international expansion, C-59 manufacturers'code ofconduct, C-68 mission, C-62 net revenues 2012, C-59 number of employees, C-69 product design and development, C 66-C-67 prodr.rct line, C-66 retail distribution, C-63-C-64 sales growth, C 59 stock price performance, C-59 store expansion strategy, C-63-C-64 store locations and description, C 61-C-65 store openings 2010 2011, C-59 store personnel, C 69 surging growth in 2012, C-59 target market, C 62 value chain activity outsourced, C-68 website strategy, C 64 wholesale strategy, C-64 lululemon Athletica USA, Inc., C-60 Lutheran World Relief, C-156 Luxottica, C-79, C-86 Luxury Institute, C 81 LVMH, 192, 220, C-78 acquisition ofBulgari, C-93 business-level strategy,

Steel Compan1.,

C-181, C-i82, C-IB7,C-332 agreement with yahoo, c-185

Q-2Q

Market Insurance Company, C-202 Markham Vineyards, C-397

Marmot, c-53 Marriott Host International, C-314 Marriott International, r39,278,360, c-93 Marriott Residence Inns, 139

Maruti-Suzuki, 204 Marvel comics, 222

Mitsubishi Corporation, 202, C-234 Mitsui & company, Lrd,., c 233 Mitsui uSA, c-233 Modellt sporting Goods, c,50

Mintel, C-33 Nlinute Maid,

c-282

c-276,

357 , 361 ethics,73 Maserati, 182 Massey coal company, c-386 Massey Energy Corporation CEO, C-3S6-C-38S in coal industry, C-386 critics of, C-386 and government regulation, C-388 mine disaster, C-385-C-391 number ofemployees, C-385 revenue in 2009, C-385 MasterCard, 42, C-25 Mayo Clinic, 24 McAfee,8 McAlister's Deli, data on, C 101

Mary Kay Cosmetics, 133,

Moen,229

Moet Southwest Grill, C-123

business

3, 5, 7, 10, 14, 25,

201-202, 206, 220,

C-3,C 97,C 99,C

27

i80, 189,

data on,

C

Morgan Keegan & Company, C-205 Morgan Keegan Financial Products, Inc., C-203, C-204 Motel 6, 136 Motor Development International, C-247 Motorola,207, 303,325, c-188, c-197, c-213 Motorola Mobility, C,168, C-i81, C 187,C-197

196, 135,

C-320 6

McGraw Hill, C-26, C-28, C-30, Connect, C 27

Movado Group, C- 1 2, C-79 Movie Gallery, C-135

Mumm Napa, C

C-32

Macyt, Inc., 63, C-95

MGM. C I3O MG Rover, C-247

398

Michelin, 130, 180, C 15 Michigan Star Furniture Company, Mickey Mouse Cltb, C 274

MySpace, 169

Mystic Monk Coffee, case affiliate program, C 5 company history, C-2-C-3 financial performance, C 5 marketing by, C 5 operating expenses, C-5 operations, C-4 production, C-4 profit margin, C-5 strategic vision, C-5 target market, C-4 website operations, C 5

N

Michael Kors, C-73

C-58

Motto Kryla Fisher, C-405

Museum of Modern Art, NY, C-333, C-334

t\

Magnatrax Corporatron, C 20 Magnolia Bakery, C-33 Mahindra & Mahindra, 206, C-250 Major League Baseball, C 4,1, C-,18, C-49,

101

Monro Muffler Brake, C-23

I, 320,360, 36 1,

114, C-115,

C

description, C-124 Mondelez Intern ational, C-287, C-292, C-296-C-297 Mondragon co-operatives, C 154 Monk Coffee Affiliate Program, C-5

C-267, strategy,

160

Nlirama-r Films, C 275

Marvel Entertainment, c-273, c-275,

McDonaldt,

C IB4

Millercoors, 70 Millstone, c-4 Nlilwaukee Bucks, c-49

LearnSmart, C-27 McGuire Woods Consulting LLP, C-202 McKinsey & Comp any, 293, 334 Mead lohnson, 161 Meadow Event Park, C-203, C-204,C-210 Meadow Farm, C,203, C-205 Merc Co-op, C 150 Mercedes-Benz, 7, 130, 14l,261,293 Merck, 325 Mercy Corps, C-323 Merrill Lynch, 220 Merrl'vale Vineyards, C-397

I lrrl

financial performance 2007-2011, online services, C-183-C-184 Microsoft Exchange, C-195 x'Iicrosoft Xbox, c-137 Miljo Grenland/Innovasjon, C-247

Marsh, c-205 Marshall Sons, C-247 Marsh & Mclennan, 354 Maruti, C-250, C-253

c-277,

134,

150, 151, 162,271,283, C_168, C_180,

C-332

Nabisco, C 289,C-294 Napa Valley Vintners Association,

C-397, C-398

Company Index NASCAR, 197,C-86 National Association for the Specialty Food Trade, C-34 National Basketball Association. 197, C-49,

c-s8 National Communication Commission, Taiwan, C-266 National Football Leagre, I97, C-44, c-48 C-49, C-sO, C-58 National Hockey League, C-44, C-48, C-58 National Restaurant Association,

c-rt2, c-125

c-t44-C-145 subscriber data, C-139 subscription plans 20 10-2012, C- 138 subscription trends, C 139-C-140 New Balance, C-53

Newell Company, 297 Newell-Rubbermaid, I 89, 230 New England Food Co-operative Organization, C-149, C-i50, C-151 NewMarket Corporation, C-202 News Corporation, 160, 163, C-133 New York Times Company, 15

c-71 description, C- 53-C-54 event sponsorships, C-71

manufacturing, C-56 marketing, C-54 principal products, C-54 research and development, C-56 sales by region 2009-201 1, C-55 worldwide distribution network, C-54

case

advertising, C-144 balance sheet, C-131 business model, C- 137-C- 139 cost ofstreaming content, C-141 effect on movie industry, C'136-C-137 effects of strategy change break with SIarz, C-127

-C I28

need for damage control, C-128-C-129 negative customer reaction, C-127 stock price decline, C-130 stock price slide, C- 127

subscriber losses, C- 130 expenditures to additions to library, C-142 increase in subscribers 2010-20II, C I27 industry environment competitive intensity, C 134-C-136 enabling technologies, C-130-C- 132 growth of DVD business, C- 1 32-C- 133 trends in home viewing, C-133-C-134

c

new content acquisitions, C-i41 transition to Internet delivery,

NeXT, C-188 Nike, Inc., 24, 89, 167, 20I, 27 )., 279, 301., c-42, C-43, C-52, C-58, C-s9, C-61,

c-130, c-133 NCR Corporation, C-135 NDP Group, C-125 NEC,2O2 Neiman Marcus, 70 Nelson Steel, Inc., C-20 Nestl6, 180, C-75, C-290 Nestld Waters, C-34 Netflix, 25, C-168, C-182

international expansion,

c-143-c-t44

strategy reversal, C- 129-C- 130

National Semiconductor, C- 188 National Starch and Chemical Company, C-349 National Tyre Services, 244 National Wildlife Federation, C-334 Nation's Restaurant News, C-124 Nationwide Golf Car, Inc., C-205 NBA-Development League, C-58 NBC network, C-1,34, C-220, C-333 NBCUniversal, C-275 NBCUniversal International Television,

Netflix,

statement of operations 2000-2011, C-131 stock price performance, C- 127 strategy-making comprehensive library, C- 140-C- 141 easy-to-use softwar e, C- I 42-C- I 43 just-for-kids option, C- 1 42 mail delivery vs. streaming,

C- 1 30,

r45-c-t 46

marketing, C-144 new capital raised, C 130 performance prospects 20 12,

c-r46- C-r47 revenue increase 2010-2011, C-127

Nucor Corporation, 106, 125, 126, 357 incentives for strategy execution, 336 Nucor Corporation, case BESTmarking program, C-232 company history, C-220 - C'221

competition ArcelorMittal

U S A, C-244-C-245 foreign steel makers, C-243 C-244 United States Steel, C-244-C-245 employee relations, C 238-C-240 environmental performance, C-236 financial performance 2007 -2011, C-223 groMh in steel market I970-2OII, C-221 human resource practices, C-238-C-240 industry position in 2012, C-220-C-221 innovative technologies, C-220 low-cost leadership, C-22I- C-222 low employee turnover, C-238 management changes, C-221 -C-222 management philosophy, C-236-C-237 organizational structure, C-236-C-237 pricing and sales, C-226 C-227 production statistics 1970-201, C-221 product line expansion steel- making, C -225 - C - 226 steel products, C-222-C-225 sales and earnings I970 - 201 I. C-22 I sales by product category, C-227

strategy-making growth via acquisitions, C-228-C-231 growth via joint ventures,

c-232-C-233 1ow-cost production, C-232

new technologie s, C-23I -C-232 plant constructio n, C-23 I -C-232 raw materials strategy. C-23J C 2J5 shift to value-added products,

Nikomart, C-261 Nikon, C 213 NiMitt LLC - Mitsui USA, C-233 Nintendo, 3, 151, 175 Nintendo Wii, C-137

Nippon Steel, C-241 Nissan Motor Company, 98, Nokia, 207, C-I68, C-I97

357, C-253

smartphone market share, C-196 Noodles & Company, C-101 Nordstrom, 87, 107, I30, 153, 321, 344, 347-348,358, c 71 employee motivation, 333

objectives,30

c-235-C-236 workforce compensation, C 237 -C-238 in world steel indtstry, C-240-C-242 Nucor Fastener, C-224 Nucor Steel Commercial Corporation, C 228 Nucor-Yamato, C 225

tJ Occupational Safety and Health Administration, mission statement, 24

Nordstrom Rack, C-71 North American Coffee Partnership, C-316 North Face, 250, C-53 Northwest Airlines, 191 Northwest Water (UK), 323

Odwalla, 160 Office Depot, C-20

Novo Nordisk, 268 ethical principles, 267 NPD Group, C-136

Olympus,266 Omiya Ardija, C-50 Omniplex World Services, C-202 On2 Technologies, C- 182 Opera, C-182 Opus One, C-398

NTT,216 Nuclear Corporation of America, C-220 Nucor Building Systems, C-224

I-9

Official Sports Partner, C-58

oK,

c

261

ok6 usA, c-1s0

I-f0

Companv Index

Oracle Corporation, 162, C-344 Organic Trade Association, C-395 Oriental Land Company, C-281

supply chain, C-109-C-1 10 target market, C-97-C-99 Panera Bread Foundation, C-105

OSI Restaurant Partners, 252

Papa fohn's, 139

Otis Elevator, 196, 253,329 Outback Steakhouse, 252 Ovid Napa Valley, C-398

Paradise Bakery & Cafe, C-96, C-97, C-108 Paramount Studios, C-130, C-136 Parmalat, 354 Parry Cellars, C-398 Patagonia, C-43,C-53 Peabody Coal, C-386, C-389 Pearson PLC, 276, C-26, C-27, C-30 Peet's Coffee, C-37 Peju Winery, C-398 Pelican Paper Company, Inc., C-205 Pemex, 168,362 PenPal Exchange, C-156

iJ r

Pabst, 70 Pacific Gas & Electric Company, 275, Palm, C-192

C-401

Panasonic, C-15, C-213 Panera Bread Company, 158 Panera Bread Company, case

PepsiCo,

advertising, C-106 business model, C-99-C-102 business segment information,

Providence Equity Partners, C-133 Prudential Life Insurance, C-42 Publlx Supermarkets, 61, 360 Puma, C-52, C-53

87,I25,I31.,248,275,276,280,

Qantas Airways, 192, 2l

l,

328

Qdoba Mexican Grill, C-1.02, C-123 description, C-124 -C-215 Qualserve Benchmarking Clearinghouse, 103, 104 Quintessa, C-398

QVC, C-es Qwest Communications, 37, 354 Qwikster, C-128-C-129

c-318, c-320

C

111

company history, C-96-C-97 competitors, C-100-C- 102 customer loyalty program, C-

licensing partnership, C-3 1 7 objectives, 30 Starbucks joint ventures, C-3 PepsiCo/Lipton, C-317 Pesman Art Studio, C-27 4 PetSmart, C,20

iJ l6

PGA Tour, C-86 Phenix Cheese Corporation, C-289 Philip Morris Companies, C-287,

Radio Disney, C-280 Radisson Hotels, C-316 Rainbow Grocery C-154 Ralph Lauren, 133, 253, C-74 Range Rover, C-254 RCTV C-130 Red Barn vineyard, C-393

financialperformance2Ol2,C-ll3

c-289,c-290 PhilipsElectronics,3T-38

Redbox, C-132,C-135 Red Bull, 130

franchise operations company support for, C- 108

Pillsbury,223 Ping Golf,89

Red Hat, C-169

Pnar,C-273,C-276,C-277,C-282 PizzaHti,189, 205, C-123, C-260

RedTomato,C-149,C

i05 C-97-C-99

differentiation strategy, distribution, C- 109 -C-1

10

divestment of Au bon Pain, C-97 effect offinancial crisis, C-96 expansion goal, C-96 financial performance, C-98

criteriaforconsideration,C-107 initial investment. C-107 new openings since 201 l, C- I l3 number offranchise groups, C-108 operating standards, C-108 sales, C-108 growth strategies, C-102 honors and awards, C-96 interest in Paradise Bakery & Caf6, C-97 management change2Ol0,C-97 management information

system,

c-1 10-c-112 marketing by, C- 105-C-106 marketing research, C-105-C-106 non-profit locations, C- 105 number of employees, C-109 number ofoutlets in 2012, C-96 off-premise catering, C-104 C-105 operating statistics, C-99 product line, C-LOL-C-|O4 revenues in2}II, C-96 sales in 2011, C-96 stock price performance, C-l l3 stores

environment/ambience, C- 108-C-109 operation, C-109 site selection, C- 108-C- I 09 strategy-making, C- 97 - C - lO2

Pfizer,Inc.,92

Redhook Ale Brewery, C-307

Playdom, Inc., C-277, C-283 PNG) Enterprises,C-202 Polo Goll C-53 Polo Ralph Lauren, 164, C-52,C-53,C-77

Popchips,differentiationstrategy,l38 Port Everglade Steel Corporation,

C-228

POSCO, C-241 Post Foods, C-290

I5l

Reeboh C-53, C-s6, C-58, C's9,C-60,C-71 Reebok-CCM Hockey, C-57, C-58 Refco,354 Regalia Manufacturing Company, C-205 Regions Bank, C-204 REI,293 Relactivity, C-130 Renault, C-253 Renauit-Nissan, 168

PostNL N. V, 276 Poulan, 128

Repsol YPF S. A.,276

Prada, 133, C-7 3, C-7 4, C-77, C-7 8 Pratt & Whitney, 253

c-21r, c-216, C-219 smartphone market share, C-196 Reserve Bank of India, C-250 Reuters.com, C-178 Richmond Steel Recycling,C-228 Ricoh,202, C-218 RIM: see Research in Motion Ringling Brothers, 154 Rio Tinto Grorry,C-234 Ripken Baseball, C-49 Rite-Aid, 136,354,362 Ritz-Carlton Hotels, 130, 139 Roark Capital Group, C-100, C- 101, C- 124 Robert Craig Winery, C-398 Robert Mondavi Winery, C-398

Research in Motion, C-181, C-1,92, C-197,

Preccor, C-15

Premier League Football, C-51 President Chain Store Corporation,C-268 balance sheets, C-270 income statements. C-269 joint venture with 7-Eleven, Inc., C-259,

c-261-C-272 Price Club, C-7 PriceCostco, C-7 Price Enterprises Inc., C-7 Procter & Gamb\e,3,25,88,98,

127,225,247,

274,312, C-i5, C-15i, C-346,

management development, 294 strategic vision, 23

C-347

Roche Holding AG,276

Company Index Rockport, C-53, C-56-C-57, C-53 Rod Markin Consulting, C-206 Roku, C-137

Rolex,7,70,

130

Rolls-Royce, 133,136 Roquette, 192, 2ll Rosenthal, C-93 Roto-Rooter, 189 Royal Bank of Sc otland, 2 43 Royal Dutch/Shell, 27 8, 362 Roy's Restaurant,252 Rubbermaid,29T Ruby Tuesday, C-99, C-102 RueLaLa, 153 Russell, C-53

Rutherford Dust Society, C-393 Ryanair, 106, 150-151, 328 Ryka, C-53

q Safari, C-182 Safeway, 61, 127, 136, C-318 St. Iude Children's Research Hospital, 265 St. Sup6ry Estate, C-398

Saint Louis Bread Company, C-96, C-105 Saintsbury, C-398 Saks

Fifth Avenu e, 7 0,

C-7 4

Salomon, C-53 Salvatore Ferragamo, C-73 Salvestrin, C-398 Sam's Club, I45, C-7, C-317

description,

C -20 -C -2

1

distribution, C-23-C-24 financial data, C-23 membership and hours of operation,

c-2r-c-22 merchandise offe r ings, C-21 -C -23 Samsung Electronics Company Ltd., 173, 207,276, C,rs, C-187, C-t97,C-211 smartphone market share, C-196 Samsung Group, 173 Samuel Adams, 162 Sandleman & Associates, C-96 Sanford Financial Grotp,264, 354 investment fraud, 265 San Pellegrino, C-34 Sara Lee Corp or alion, 247 acquisition of Coach Inc.,C-74 SAS Institute,29 Satyam Computer Services, 208 Saucony, C-53 Save the Children, C-329

Schlotzky's, C-124 Schneiders, 162 Schramsberg Vineyards, C-398 Scotland Yard, 24

Scottrade,304 Scotty Cameron, 229

Sears, Roebuck,353, C-10, C-95 Seattle's Best Coffee, C-4, C-3 17-C-3

1

8

Seiko Epson, C-211, C-218 SELFHELP Crafts of the World, C-161

Sephora,192,211 7-Eleven Inc., 189 7-Eleven Inc., case business model, C-257-C-258 company history, C-257 convenience store concept, C-257 franchise operations, C-257 -C-258 franchises worldwid,e 2011, C-256 international expansion, C-256 location of stores, C-257 store construction, C-257, C-258 in Taiwan coffee counters, C-266-C-267 delivery and pickup, C-266 franchise rights and Shanghal C-272 future developm ents, C -27 I -C -27 2 i-Cash cards, C-266 infrastructure support, C-268-C-27 I initial mistakes, C-261-C-263 innovations, C-264-C-265 localization, C-263-C-264 logistics, C-268 market share, C-267 number of stores, C-267 partnership with President Chain Stores, C-259, C-261-C-272 phone plans, C-266 pre-ordering, C-266 seating areas, C-267 store layout, C-262 taxi services, C-267-C-268 24-hour stores, C-257

I-r I

customer demographics, C-34 financial performance, C-27, C-39 growth initiatives, C- 37 -C- 4l growth options 20ll-2073, C-40 hiring poiicy, C-37 human resource issues, C-36-C-37 marketing strate gy, C-35-C-36 mission statement, C-36 prospects for survival in 2010, C-33 rebranding, C-36 San Francisco Bay area locations, C-38 social media use, C-35-C-36 in specialty bakery market, C-33-C-35 store staffing levels, C-37 Signet Group, PLC, C-89 description, C-91-C-92 financial data, C-92 Sikorsky,253 Silicon Valley Bank, C-403 Silverado Vineyards, C-398 Silver Oak Cellars, C-398 Singapore Airlines, 3 Sirius XM satellite radio, C-280 versus over-the-air broadcasters, I Sk1pe, 162

l

Sleep Inn, 136 SMG, C-205 SMS Schloemann-Siemag AG, C-242

Smucker's,225 Snack Food Asso ciation,TT Snapper, 55 Solazyme, 191,211

cross-border alliances, 192 Solidaridad, C- 161 Sony Corporation, 98, 151, 202, C-15,

c-182,C-2r2

Severstal, C-241

Sony Pictures Television, C-130, C-136

Seward Community Co-op, C-150 Shanda,207 Shanghai Disney Resort, C-278, C-281

Sony PlayStation 3, C-137

Sharo, 202 Sharpie pens,230 Sheba Properties Ltd., C -248 Shell Oil Company, 168 Sheraton Hotels, 98, C-316 ShopHouse Southeast Asian Kitchen, C- I 14 test format, C-123 Shougang Corporation, C-234 Showtime, C-132,C 133, C-134, C-135,

c-r45, c-282 Siddall, Inc., C-205 Siemens AG,29,354 Sift Cupcake and Dessert Bar, case advertising, C-35-C-36 balance sheet, C-39 business plan, C-39-C-4I community events, C-36 company history, C-35 competitors, C-37 core values, C-36

Sony PlayStation Network, C-I32 South African National Parks, case

criticisms of, C-383 Environmental Crimes Unit, C-372,

c-382 game capture org anization,

C -37

2

justification for selling rhinos, C-383 rhino capture, C-369, C 372-C-377 and rhino poaching, C-382-C-383 Veterinary Wildlife Services, C-372, c-373-C-375 views on rhino hunting, C-371 South African National Police, C-382 Southern Financial Corporalion, C 202 Southern Title Insurance Corporation, c-202 Southland Ice Company, C-257 South Pacific Steel Corporation, C-20 Southwest

Airlines,3,7, 103, 125,

t26-127,293 Sport-Chek International, C-50 Sportman International, C-50

l-12

Company Index

Sports Authority, C-50 SportsScanINFO, C-44 Spottswoode Estate Vineyard & Winery,

c-398 SpringHill Suites, 139 Spring Mountain, C-393 Sprinkles, C-37 Sprint, C-195 Sprint-Nextel, 169 Spydea 303, C-53

Wine Cellars, C-398, C-399 Stagt Leap Winery, C-398, C-399 Standard and Poor's, C-221, C-228, C 344 Staples, 61, 275,280, C-20 Starbucks,31, 116, 131, 154, 180, 272,280, 308, 360, C-3, C-4, C-6r, C-99, C-t02, c-163, c-260, c-267, C,293 Stag's Leap

Starbucks, case

acquisition by Il Giornale, C-310 acquisition of Seattle's Best Coffee,

financial perform ance 2012, C-330 growth plans, C-310-C-31 1

international expansion, C-305 international strategy, C-330 joint ventures, C-316-C-317 labor productivity, C-330 licensing agreement with Kraft, C-317 mission statemenl, C-324, C-325 national expansion, C-3 l0-C-3 I t new market segments, C-316-C-319 new product launch 2009, C-318, C-319 non-coffee options, C-3 19 operations and production, C-327 performance targets, C-330 as private company, C-310-C-311 product line expansion, C-316- C-319 sales mix in 2011, C-319 store ambience, C-312 store design,

c-317-c-318

blanket major cities, C-314 demographic profile, C-3 14

agreement with PepsiCo and Unilever,

business model development,

c-308-c-309 capital formation, C-309 capital raising, C-3 I 1 coffee purchasing strategy ethical sourcing, C-326-C-327 and Fair Trade International, C-326 key elements, C 324 partnership with Conservation International, C-326 pricing and purchasing arrangements,

c-32s-c-326 small farmer support program, c 326-C-327 company history, C-307-C-3 l0 consumer products group, C 319-C-320 core values, C-324, C-325 corporate social responsibility strategy charitable contributions, C-328-C-329 community involvement, C-328 corporate citizenship, C-328 environmental stewardship, C-328 ethical sourcing, C-327 -C-328 customer relations, C-329-C-330 effect of recession, C-305 employee relations fringe benefit program, C-323 health care coverage, C-321 stock option plan, C 321 stock purchase plan, C-322 training and recognition, C-322-C-324 work environmenl, C-322 Ethical Tea Partnership, C-326 financial performance 2007-201 1, C-306

C-3i2

store expansion strategy

advertising, C-320

c,317 alliance with Creen Mountain, c-3I 8-C,31 9

management, C-201 mission, C-200-C-201 new site selection, C-198

international expansion, C-314-C-316 licensing agreements, C-314 C-315 strategic plan, C-3 10-C-3 I

I

supply chain management, C-312 top managemenr, C-329 transformation activities, C-305 vertical integration, C-320 vision, C-310 workplace environment, C-320, C-322 Starbucks Coffee, Tea, and Spice, C-307 Starbucks Coffee School, C-323 Starbucks Farmer Support Centers,

c-323-C-324 Starbucks Foundation, C-328 C-329 Star Furniture Company, C-332 STAR satellite

TV 206

State

c-204 notional amount swap, C-204 taxable bonds, C-203

tax-exempt bonds, C-204 unsecured debt, C-204 company history, C- 198-C- 1 99 corporate governance, C 201,-C-203 credrtors. (.-205

c-206-c-207 fundraising consultants, C 206

c-207-c-209 timeline, C-199 State Farm Insurance, 164 Steelcase, C-344 Sterling Pharmaceuticals, C-2 1 2 Sterling Vineyards, C-398 Stihl, 145 Stonfield Farm, 279 Stony Hill Mneyard, C-398 Strategic Planning Institute, 103 Stride Rite, 128 Subway, C-97, C-318 SUGGI, C-53 Sumitomo Metal Industries, C-228 Summers Grorp,244 Summit, C-130 Sunbelt Rentals, C-205 Sun Capital Partners, C-101

Sundaram Fasteners, 209 Sun Microsystems, 162, C - 169 Super 8, 136136 Super Target, C-10 Susan G. Komen for the Cure, 29

Suzuki, 206, C-250 Swiss Re

Limited,276

SYSCO Corporation, C-3

l6

T I

Taco Bell, 189,205

description, C-123- C- 1.24 TAL Manufacturing Solutlons Ltd., C -248 Target Stores,

case

acquisitions and divestitures, C-203 bankruptcy threat, C-207 board of directors, C-202 capital investment strategy, C-204-C-205 capital raising strategy Department of Agriculture loans,

debt obligations, C 203 financial performance 2006-20

C- 199-C-200 operating structure, C-201 in recession, C-205-C-206 strategic options for survival,

T Rowe Price Associates, C-130

Stars Restaurant, C-1 14 Starz, C-127, C-132, C-133, C- 135, C-145,

c-282 Fair ofVirginia,

in not-for-profit sector,

I 0,

7

-8, 63, 7 I, 98, 138, 145,225,

325, J30, C-20, C-78, C-95, C-132,

c-318 Tata Daewoo, C-247 Tata Daewoo Commercial Vehicle Cornpany

Ltd.,

c -248, c-2s3

Tata Englneering and Locomotive Company,

c-246,C-247 Tata Group

description, C-2,16 financial summary, C 246 future of subsidi aries, C-254-C-255 Tata Hispano Motors Carrocera S.A., C -248 Tata Holset Ltd., C-247 Tata Marcopolo Motors Ltd., C -248 Tata Motors, Ltd., case acquisition of laguar and Land Rover,

c-247 awards, C-247

Company Index balance sheet, C-249 business strategy

international

gr owth, C-252, C-253 low-cost leadership, C-253 challenges factng, C-246

commercial vehicles, C-263 company history, C - 246 -C - 247 competitors in India, C-253 economic conditions in India,

c-248-C-250 g1obal manufactw ing, C - 246

growth prospects, C-254-C-255 income statement, C - 248 -C -249 in Indian's auto industry, C-250, C-251 industry position, C-246 international expansion, C-247 joint ventures, C-247, C-248 marketing research, C-252 Nano people's car, C-252-C-253 ownership of, C-246 passenger cars, C-252 production of laguar and Land Rover,

c-2s3 c-254 sales by country, C-250

subsidiaries, C-248 target market, C-252 unit sales, C-254 Tata Motors European Technical Centre plc,

c

-248

Tata Motors Insurance Broking & Advisory Serr.ices Ltd., C -248 Tata Motors Limited, Hispano, C-253 Tata Motors (SA) Proprietary Ltd., C -248 Tata Motors (Thailand) Ltd., C -248, C-253 Tata Nano Europa, C-247 Tata Steel, C-241 Tata Technologies Ltd., C -248

TaylorMade-adidas Goll C-56, C-58 Taylor Wine Company, C-393 Tazo Tea, C-317, C-318, C-319,C'323

TDAmeritrade, 304 Team Great Britain, C-58 Telco Constructlon Equipment Company

Lrd.,c -248 Telefe,

C

130

Telemundo, C-130 Televisa, 209, C-130 Tencent,207 Ten Thousand Villages, C-161 Tesla Motors, 170 Tesla Roadster, 280

Textron, 229 T.G.I. Fridays, C-99, C-I02 Thanksgiving Coffee Company balance sheet, C-165 compared to Equal Exchange,

c-r63-c-r64 description, C-163 C-164 evaluation of fi nancial per[ormance.

c-164

income statement, C-164 net income, C-164 net income 2010, C-164 sales, C-164 working capital, C-164 Thonburi Automotive Assembly Plant Company,C-247

3M Corporation,92,93, 107, 130, 367, C-347

ThyssenKrupp, C-24I, C-242 Tiffany & Company, 98, 133, 162, 183 Tiffany & Company' case branding, C-88-C-89 company history, C 84-C-85

competition Blue Nile, Inc., C-93

Bulgari, C-92-C-93 Costco, C-94 Signet Group, C-91-C-92 diamond purchasing, C-88 effect of financial crisis of 2008, C-86 financial performance, C-86*C-87 flagship location, lvlanhattan, C-85 importance of branding, C-94 C-96

international expansion, C-85 and jewelrv industry, C-89-C-91 management changes. C-85

online sales, C-85 product line diversification, C-85 strategy-making, C-85 C-86 suit against eBay, C-88 sustainability, C-84 Timberland, 250, C-53 Time Warner, C-132 Time Warner Cable, 169, C-133, C-134

Timex,70 Titleist,229 TML Distribution Company Limited,

c

248 TML Drivelines Limited, C -248 TML Holdings Pte. Ltd., C -248 TNS International, C-96 Tokyo Disney Resort, C-281 Tommy Hilfiger, l'64, C-7 4 Toon Disney,254 Topside Tent & Party Rental, C-205 Toro, 55 Toronto Maple Leafs, C-49 Toshiba, market share in PCs, C-191 Tot'em stores, C-257 Touchstone Pictures, C-282 TownePlace Suites, 139 Toyota Motor Company, 116, 133, 152,202' 277 , 283,297 ,298, 333, 357

best-cost strategy, 141 Toyota Production System, 298,312 Toyota Supplier Support Center, C-339 Toys "R'Us, C-132, C-133 Trader foe's, 137, C-20 mission statement. 24

I-13

TransFair USA, C-161 Treasury Wine Estates, C-399

Trefethen Family Vineyards, C-398 Tres Sabores, C-393, C-404 Trico Steel Company, C'228 Trinchero Napa Valley, C-398 TripAdvisor, 247 Tropical Forest Foundation, C-334 Tupperware, 361 Turley Wine Cellars, C-393 TV Azteca, C-130

TV Bandeirantes, C-130

TV

G1obo, C-130 Twentieth Century Fox, 163, 160 Twitter, 352, C-34, C-50 Tyco International, 354

Tyson Foods, 280

U Ukrop's Super Markets, employee

motivation,

333

Under Armour, C-59 event sponsorships, C-71

Under Armour, case advertising media, C-50 balance sheet 2006-2011, C-45 company renamed in 2005, C-44

competition adidas Group, C-56-C-58

major competitors, C-63 Nike, Inc., C-53-C-56 distribution facilities, C-52 distribution strategy direct-to-consumer sales, C-50 in Europe and Latin America.

c-50 -c-51 product licensing, C-50 wholesale, C-50 growth strategy initiatives, C-46 history as KP Sports, C-42-C-44 income statement 2006-20ll, C- 45 initial public offering in 2005, C-44 inventory management, C-52 licensing agreements, C-47 long-term growth potential, C-42 market share ]n 2017, C-42 mission, C-45 C-46 outsourcing manufacturing, C-5i-C-52 product design and development, C 51 product line strategy accessories, C-47 apparel, C-46-C-47 cash flow data, C-45

footwear, C-47 product presentation, C-49-C-50 rapid growth after 2000, C-43-C-44 retail marketing, C-49-C-50 sales

in

201 1, C-42

r-t4

Company Index

Under Armour, case-Cont. sports marketing celebrity sponsorships, C-49 college and university teams,

c-47-C-48 professional teams, C-48-C-49 stock ownership, C-44 supply chain, C-51-C-52 Under Armour All-America Football Game, C-49 Under Armour All-America Lacrosse Llasslc. ( --49 Under Armour Marathon, C-49 Under Armour Senior Bowl, C-49 Ungaro, C-93 Unilever, 192, 205, 21. l, 277, C-3\7, C-320, c-346, C-347 Union Bank and Trust Company, C-202 Union Bankshares, C-202 Union Cab, C-154 Union First Market Bankshares, Inc.,

c-20t, c-202 Union ofEuropean Football Associations, C-58 Uni-President Enterprises Corporation Group, C-259, C-261 business units, C-268 diversification, C-261

first 7-Eleven store, C-261 launch ofPresident Chain Stores, C-261 United Airlines, C-316 United for a Fair Economy, C-154 United Parcel Service, 29, 329, C-4 United Parcel Service Store, 189 United States Federation of Worker Cooperatives, C-154 United States Green Building Council,

c-334, C-401

urv, c-27;, c-z8o

\/ v

V

Sattui Winery, C-398 Vector Products, 225 Vente Priv6e, 153 Verco Manufaciuring Company, C-20 Verizon Communications, 301, C-132 Verizon Wireless, C-23, C-195 Versace, 71, C-73, C-77 VF Corporation, 250, C-72 Virginia Golf Cars. 1nc.. C-205 Visa, C-25 Vizio, Inc., 128 Volker Eisele Family Estate, C-398 Volkswagen, 187, 212, C-253 VUDU.com, C-L32,C-136 Vulcraft, C-20, C-220, C-222

c-1, c-r37

136, 344, 358, 360

365

case

equipment maintenance, C-390 C 391 rock dust, C-390 ventilation problems, C-390 company CEO, C-386-C-388 go\rernment regulation of mining, C-388 and Massey Energy Corporation, c 385-C-388 number of employees, C-389

c-275-C-276 financial performance 2012, C-286 income statements, C-284 management changes, C-275 operating results consumer products, C-283 interactive media, C-284 media networks, C-280 parks and resorts, C-282 studio entertainment, C-283 performance since 2005, C-273 relaled diversitication, C-275,

c,276 C-283 revenues 2007 -2011, C-273 stock price performance, C-277 Walt Walt Walt Walt

Disney International, C-275 Disney Pictures, C-282 Disney ProducLions, C-274, C-275 Disney Studios, C-i30, C-134,C-275 Walt Disney World Resort, C-275, C-280, C-281 Warner Brothers, C-136 Warner Home Entertainment, C-133 Waterford, C-12 WD Partners, C-124 Weather Channel, 154

Westin Hotels, C-316 Wetpac Banking Corporation, 276

Walgreens, 136 Walmart, 3, 7, 14, 61, 7 0, 7 l, 91, 125, 126, r28. t36, r4s. ls0, t80,225,272, 280 28i, 343,357,359,360, C 6, c-7, c-20, c-78, c-94, C-r32, C-13s,

c-136, C-3r8 valuecharr. l2l Walmart Photo Center, C-136 Walmart Supercenters, C- 10 Walt Disney Company, 93, 19 6, 200, 222, 360, C-133

Walt Disney Compaw case acquisitions, C'27 5, C'27 6-C-27

Wendyt, 301, C-97 Westbeach Sports, C-59

businesses runby, 253-254

causes

parks and resorts, C-280-C-281 studio entertainm ent, C-28 I -C-282 synergies among units, C-278 fi nancial perform ance 2007 -20 I I,

Welsh Rugby Union, C-49

WL. Gore & Associates,

employee motivation, 333

United States Steel, C-220, C-241, C-244 sales and production, C-244-C-245 United States Tennis Association, C-86 United States Women's National Soccer Team, C-49 United Technologies, 253 United Way, C-19 Universal Corporation, C-202 Universal Studios, C-134, C-136, C-27 4 UPEC lnfra:tructure Companies,

international expansion effort, C-278 media networks, C-27 8-C-280

Wegmans, employee motivation, 333 \Vells Fargo, 160,264

w corporate culture, 345

United States Postal Service, 329,

c-268, C 272 Upper Big Branch Mine disaster,

occurrence April 2010, C-385 safety and health citations, C-389 safety violations, C-389-C-390 US. Beverages, C-290, C-291 U.S. Cheese, C-290, C-291 U.S. Convenience Meals, C-290, C-291 US. Foodservice, C-316 U.S. Grocery, C-290, C-29 I UTC Fire & Security, 253 u I (- Power. ,2 5 J

8

Whirlpool Corporation, 128,

White Rock Vineyards, C-398 Whole Foods Market, 138, 278,279,

c-t63, c-320 William Hill Estate Winery, C-398 Willy Street Grocery Co-op, C- 150 Wilton Companies, C-202 Wine Institute, C-396

WorldCom,37,354 World Fair Trade Organization, C-4 Worthington Industries, C-228 Wuhan, C-241 Wuling Automotive, C-253

balance sheets, C 285

capital expenditures, C-273 company history, C -27 4-C -27 5 corporate strategy consumer products, C-282-C-283 financial resource allocation. C 278 focus ol C-276 interactive media, C-283 C 284

130, 301, 338

Six Sigma program, 326

Xebro. ( ,-5{

I

Xerox Corporation, 103, 218 XM/DIRECTV C-280 Xstrata PLC. 276

Company Index

I

Yahool, C-i34, C-169, C-183 financial performance 2007-201 1, c-18s

online services, C-184-C- 185

\amaha,222

Yuengling & Sons, 70, 77 Yum! Brands, 189, 204, C'123 strategy for China, 205

X

Zagat, C-96 Zale, C-95 Yamato-Kogyo, C-225 Zappos Family of Companies, mission and Yelp.com, C-37 core values, 26-27 YouTube, 139, C-35, C-I32,C-134,C-143, Zara,163 C-168, C-175, C-178, C-182, C-185

Zella, C^72 Zingeli Safaris, C-381 Zipcar Inc.,I54

I-r5

,&

Bareilles, Sara, 169

Brinkman, lohannes, 284

Barkema, H.,255,314

Briscoe, fason, 340 Brodt, s., C-396,C-406

Barney, lay B., 117, 365 Barrett, Amy,248 Barringer, Bruce,43

Aaronson, Susan Ariel, 284 Abkowitz, Alyss,265 Abufarha, N., C-167 Adams, lohn B.,C-202 Adams, John Quincy, 342 Adams, Steven 8., C-332 Agboka, Christelle, C-331

Bartels, Rudy, C-337

Aggarwal,,{khil, C-153

Baum, 1., 314 Baun, William 8.,285

Ahlstrand, Bruce,43 Ahuja, G.,255 Albert, 8., C-166, C-167 Al Din, Ashur, C-345 Alexader, John, C-153 Alexander, M., 255 Alix, Amanda, C-147 Ambroz, Milan,340 Amelio, Gil, C-188

Amit, R.,

117

Amsden, Davida M., 339 Amsden, Robert T,339 Anand, J., 212 Anderson, Eric T., 16 Annan, Kofi, 178 Anslinger, Patricia L., 177, 255 Antony, fiju,339 Argandoa, Antonio, 284 Armstrong, D., 161 Arnold, David 1., 213 Ascari, Alessio, 339 Ash, Mary Ka,v, 18

Atkin, T., C-406 Atkinson, Frank, C-202 Auris, fan-Dirk, C-354 Austin, Miies, C-49 Austin, Nancy, C-245 Aycock, Dave, C-222 Azarenka, Victoria, C-54

ft t-) Badaracco, loseph L., 365 Bagel-Trah, Simone, C-350, C-354, C-355,

c-357-c-358 Bailey, Wendy J., 284

Bain, l. S.,78 Baldwin, Jerry,C-307, C-308, C-309, C-310 Ballus, Andrea, C 33, C-35, C-36, C-37, c-39, C-41 Ballus, Jeff, C-33 Band, David C., 340

Bandler, Iames,265 Banke, Barbara, C-395

I-16

Barthdlemy, J6.r6me, 177 ,314 Bartlett, Christopher A., 117, 177,2I3,3I3,

3t4,365

Ba-.rter, Wayne, C-342, C-343

Beale, G. William "Blllyl' C-201, C-2A2 Beauclramp, T.L.284

Beckett, Ron,339 Beckham, David, C-58 Beer, lonah, C-399, C-40I, C-106 Begany, Tim, C-126

Belling, Keith, 38 Iefl C-35, C-36, C-37 Benzekri, Borzou, C-345 Bellus,

E. , ll7, 176 Berlin, Lorin, 284 Berry, Leonard L., 285 Bettcher, Kim Eric, 284 Betts, Doug, 358

Bergen, Mark

Bezos, jeff, 157, 330, 359 Bhattacharya, Arindam K., 208, 213

Binkley, Christina, 100 Birchall, David W, I 18 Bird, Katie, 273 Birinyi, Laszlo,44 Blakely, Lindsay,38 Blanding, Michael, C-166 Blank, Arthur, 151 Blankenship, Donald L., C-386-C-388,

c-389-C-390, C-391 Bleeke, ioe1, 177, 212

Bluedorn, Allen C.,43 Boesky, Ivan, C-212 Bogan, Christopher E., 339 Boldin, Anquan, C 49 Bontis, Nick, 118 Bossidy, Larry, 313, 365 Boudette, Neal E., 358 Bower, loseph L., 43, 177 Bowie, N. E., 284 Bowker, Gordor.r, C-307, C-308, C-309,

c-310 Brady, Tom, C-49 Branagh, Nicole, C-49

Brearton, David, C-299 Brees, Drew, C-54 Brenner, D.,C-406 Brin, Sergey, C-168-C-169, C-171, C-186

Brohan, Mark, I53,157 Bromiley, Philip,43 Brooks, S., C-395, C-406 Brotman, Ieff,C-7, C-9, C-18 Brown, David, 284 Brown, Robert,43 Brown, Shona L., 16 Brugman, leb,285 Brush, T,255 Bryan, lohn, C-201 Bryant, Adam, C-358 Bryce, David J., 176 Buckley, P.1.,212

Bufford, Jodi, C-201 Bulgari, Constantino, C-92 Bulgari, Georgio, C-92 Bulgari, Sotirio, C-92 Burcher, Peter, 339 Burke, Doris, 265 Burke, Ronald J., 339 Burnah, Phillip, 314, 340 Burns, Lawton R., 339 Burnsed, Brian, 339 Burton, R. M.,314 Bush, George W, C'391 Byler, Edna Ruth, C-161 Byrne, lohn,313 Byrnes, N., 336 Byrnes, Nanette, C-245 Byrnes, Rhonda, C-69

r Cahn, Miles, C-74 Caliguiri, Paula M., 340 Camp, Robert C., 118 Campbell, A.,255,314 Campbell, f. Kermit, C-334 Cannella, A., 255 Caplinger, Dan, C-126 Capron, Laurence, 80, 2I2 Carasco, Emily F., 365

Carp, David, C-212-C-213 Carroll, Archie B., 284 Carroll, Matthew, 153 Carter, lohn C.,365 Carver, Iohn,43 Casperson, Todd, C-153 Cavanaugh, Roland R., 339 Cha, Sandra E., 365 Chameides. B|r1,273

Name Index Champy, )., 339

Debaise, Colleen, 153

Chandler, Alfred,314 Chandler, Colby, C-2i2 Chaney, William, C-85 Chang, Aihwa, C-256

DeCarlo, Scott,40 Dechant, Kathleen,284 Decinney, Timothy M. 284

Chang, D. F., 137

Delios, A., 212 Dell, Michael, 149 Delmas, M. A., C-405 DeMerritt, Doug, C-400, C-406 De Pree, Dirk fan, C-332, C-333 De Pree, Hugh, C-333, C-334, C-339 De Pree, Max, C-334, C-337 Derfus, Pamela |.,78

unattaflee,5., 255 Chavez, Cesar, C-151

Chen, Chia-Pei,284 Chen, Roger,284 Chen, Shih-Fen, C-256 Cheney, Lauren, C-49 Chichestes Richard, C-202 Christensen, Clayton M., 16,340, C-342 Christensen, H. Kurt, 212 Clarh Delwyn N.,355 Clark, Robert C.,43 Cocuzza, Thomas G., 118 Cohen, Alan R., C-302 Collins, James C ., 43,285, 313, 317 Collins, |ohn, 149 Collis, David J., 2,43,255 Conley, L., C-166 Cooh Tim, C-187, C- 189, C-197 Cooper, Robin, 118 Copeland, Michael V., C-147 Copeland, Thomas E., 255 Cordon, Carlos, 314 Correnti, lohn, C-222 Covey, Steven, C-69 Covin, Jeffrey G., 43, 177 Coyne, Kevin P., 176 Crawford, Iames, C-391 Creamer, Paula, C-58 Creed, Greg, C-124 Cristie, James R.,40 Crosby, Philip,339 Cusamano, Michael

A'

F Fahey, Liam, 176,2I3

Decker, Charles L.,294

Charan, Ram,3l3, 355 Charney, Dov, 166 Chatain, O., 177 Chatham, lennifer A., 365

120,

Cutler, L,, C-406

U

17 6

l-17

Deshpand6, Rohit,284

Dhanaraj,C.2l2 Dickinson, Rink, C-148, C- 149, C- 150, C- 151, c-163, C-r64-C-r6s, C-r66, C-r67

Dienhart, lohnW.,269 DiMicco, Daniel R., C-222, C-232, C-243 Dinur, A.,212 Disney, Roy O., C-274, C-275 Disney, Walt, 287, C,273, C-274, C-275 Donald, lim, C-329 Donaldson, Thomas,284 Dosi, G., 313 Dowdy, T., C-202 Doz, Yves L., I77,212,213,255 Dragonetti, Nicola C., 118 Dranikoff, Lee,255 Drucker, Peter F., 80, 255,342 Duhigg, Charles, 259, 303 Dunfee, Thomas W.,284 Dussauge, Capron P., 272,314 Dutta, Soumitra,339 Dyer, feffrey H., 176, 177,213

Fanfa, Corey, C-33 Farkas, Charles M,, 365 Fawcett, Stanley 8., 314, 340 Federer, Roger, C-54

Ferratt, Thomas W,339 Ferrier, W f., 176 Fiegenbaum, Avi,78 Fi1o, David, C-169

Fiorentio, Amy.,274 Fiorina, Carly, C-346 Fisher, George, C-212-C-21 3 Floyd, Steven W, 313 Fogelsong, Robert, C-391 Foote, Nathaniel, l17 , 314 Forbes,

Malcolm,3lT

Ford, Henry,2l Francis, Arlene, C-333 Frankel, Daniel, C-147

FranKort, Lew c-82

C-7 4,

C-79-C-80, C-81,

Franko, Lawrence G., 255 Franson, P,, C-406 Fraser, Kenneth P.,345 Fritzsche, Michael, C-201 Frost, Carl, C-333 Frost, Tony, 213

Fulks, Kip, C-43,C-44 Furyk, Jim, C-58

f: Gabrys, Richard, C-391 Galunic, D. Charles, 255

r

t_

Gamble, fohn E., C-73, C-I68, C-187,

Eames, Charles, C-333

Garcia, Sergio, C-58

Eames, Ray, C-333

Eastburn, Ronald W, C-73 Eastman, George,C-212

Gardner, fohn L., 192 Gatrette,8., 212 Garvin, David A.,43

Edwards, Jim,265

Gates, Bill, 149, 178, C-I83

C-2II,

c-247, C-273, C-287

Eichenwald, Ktrrt, 28 4, 365 Eisenhardt, Kathleen M., 16,

Gates, Gary, C-400

Il7,

255

Eisenstat, Russell, 117, 314

Gavetti, G., 146 Gehani, R. Ray, C-211 George, S.,339

Dalton, Dixie, C-202 Daniel, L., C-406 Darr, Eric D., 340

Eisner, Alan, C-275 Eisner, Michael, 214, C-275

Ger, Guitz,213

Ekberg, P., C-406

Geroski,

Dash, Eric,40

El

DAveni, Richard, 176 Davidson, Hugh, 22,43 Davidson, Wallace N., 285 Davis, Scott, 176 Davis, Vernon, C-49

Elfenbein, Hillary A., 285 El-felly, Abuzar,285 Ellis, |. L., C-85

Ghemawat, Pankaj,213 Ghoshal, Sumantra, 117, 177, 213,313, 314,

Ells, Steve, C-l14, C-115, C-123

Gilbert, Clark G., 43

Dawar, Niroj, 213

English, Michael f., 339 Ernst, David, 177,212 Everts, Rob, C-148,C-149, C-150, C-151,

Day, Christine M., C-61 Day'ton, Nick A., 340 Deal, Terrence E., 365

Afifi, Ashraf, C-354, C-355

Elsaesser,

Caitlin,38

c-r64-c-165. c-166, c-t67

Pau]L

A.,177

Gerstner, Louis V., lr., l2O,342

365

Gilbert, D., 265 Gilinsky, Armand,lr., C-33, C-392, C-406

Gilpin, M., C-202 Girard, Alexander, C-333 Glaister,

K.W.,2I2

I-18

Name Index

Glisson, Britton, C-202

Hess, David,284

brovel

Hesselbein, Frances, 314 Hicks, L. Wayne, C-126

J,, 155

Goffee, Robert, 365

Johnson, Dustin, C-58 |ohnson, Julie, C-393, C-404 Johnson, Kim, C-302 Johnson, Mark W, 16 Johnson, Richard, C-202

Goldberg, Alan B., C-25 Golden, TimothyD.,284 Goldsmith, Marshall, 3 14 Goleman, Daniel, 365 Gomes, Rick, C-366, C-367 Goodell, leff, C-386, C-391 Goodland, Robert,284 Goodman, Paul S., 340 Goodrich, D., C-166 Goold, M., 255,314

Hirsch, lerry, 358 Hodgetts, Richard M., 340 Hofmann, Hannah, C-352 Hofmeyer, Markus, C -3 69, C-37 7 Hofmeyer, Robyn, C-342, C-343 Holpp, Larry, 339

Jung,

Horn, lohn,

Goosen, Retiel C-58

fit

House, Charles H., 43

Gordon, |oseph, 339 Gordon, M. ioseph, /r, 339 Gordon, Marcy, 284 Gordon, Mary Ellen, 78 Govindarajan, Vijay, 1 18 Graham, Jefferson,333 Grant, L. 8., C-406 Grant, R., 313 Greenfield, W M.,284

Hout, Thomas M., 365 Hoving, Walter, C-85 Howes, Daniel,358 Hsieh, lames, C-260, C-26I, C-266, C-267,

Kagermann, Henning, 16

c-268, C-272 Hubbell, Victoria, 365

Kaminski, Joanna, C-148 Kanazawa, Michael T., 365 Kane, Louis, C-96 Kane, Yukari Iwatani, C-197 Kanter, Rosabeth Moss, 177, 213,3I4,365 Kaplan, D., C-167 Kaplan, David A., C-126 Kaplan, Nancy f., 177 Kaplan, Robert S., 43, 1 18

Greenhouse, Steven, C-25 Gregorio, Rui, C-33

Gregory-Cla1ton, Sean, C- 1 13 Grimm, Curtis M.,78, 176 Gunnarson, Sarah K., 365 Guthey, G.

T, C-406

Hill, Ronald Pad,27l Hilmer, F.,314 Hindo, Brian, 339

176

Huggins, Dennis L., 38, 161 Hughes, lonathan,177

Hult, G.,314 Humble, John,365 Hurd, fonathan, 177 Hyland, Paul,339

lones, Gareth, 365 Joseph, Peter, C-3 Judge, Lady, C-391

Andrea,3l

furan,1.,339

Kahaner, Larry,78 Kale, Prashant, 177, 213

Kallio,Larry, C-342

Karim, S.,314 Katila, R., 255

I I

Katz, Basil, 284

tJ fE Haddock, M. A., C-210 Hall, Gene, 339 Hall, Ted, C-399 Hambrick, Donald C., 176,255 Hamel, Gary, 177, 212, 213, 214, 255, 313 Hamm, Steve,213 Hammer, M.,339 Hanson, ]ames, 230 Hariharan, S., 78 Harper, Bryce, C 49 Harrigan, Kathryn R., 176,177 Haspeslagh, P, 255 Hastings, Reed, C-128, C-129, C-136-C-137, c-145, C-146 Haynes, Robert H., 314 Ha1-ward, M. L. A.,255 Hazelgrove, Bruce, C-202 Heeley, Michael B., 177 Heifetz, Ronald A., 365

Heikkild,

Jussi, 314

Helfat, Constance E., 1 17, I 18, 313, 314 Hendricks, Kevin 8., 43 Henkel, Fritz, C-346 Henriques, Adrian,284 Herrera, Tilde, 284 Hertsgaard, M., C .406 Heskett, James L.,340,365, C 153

Iacobucci, Dawn, 118 Iansiti, Marco, 127 Iger, Robert, C -27 3, C-27 5, C-27 8, C -250, c-282, C-283, C-286 Inkpen, A. C., 177,212 Inman, Bobby R., C-391 Intardonato, J., C-406 Isidore, Chris, 40 Iverson, F. Kenneth, C 220, C-221-C-222,

c-239 Iwerks, Ub, C-274

*l

Kaufman, Rhonda,43 Kaufman, Stephen P.,43 Kearney, Hannah, 296 Keeble, lustin, 284 Keeley, Larry, C-219 Kelly, M., C-166 Kennedy, Allen A., 365

Kerr, Steven, 340 Khandelwal, Deepauk, C- 150 Khanna, Tarun, 213 Khuzami, Robert,266 Kiehl, Andy, C-33 Killifer, Valerie, C- 126

Kim, Jane 1., 265 Kim, W Chan,43,

I

|ackson, David,365 Jacobs, Brandon, C-49

lacobsen, Kristine,

1

18

177

Kimberly, John R., 339 Kindred, Natalie, C-345 King, David, C-201

lames, LeBron, C-54

Knight, Phil,279

lannarone, Iohn, C-I17 Iassawalla, Avan R., 365 Jelinek, Craig, C-7, C-9, C-i8 lemison, D.,255 Jennings, Bryan, C-rl9

Koch, Charles G., 18 Kogut, B., 212,3I4 Koller, Tim, 255 Kolwaski, Michael, C-85 Kotlea Philip, i76 Kotter, John P.,22, 340, 365

fickling, Mark,

Koza, M., 177

Jenk, ]ustin, 177 40

lobs, Steven, 31, C-187, C-188-C-189,

Kraft,

r97,c-355 lohn, King ofEngland, C-301

Krakofl Reed, C-74, C 79, C

c

Johnson, D., C-166

J.

L., C-289

Kramer, Mark R., 284, 285 Krebs, Michelle, 358

80

I-19

Name Index Kumar, N., 213

Manz, Charles C., C-332

Kwak, Mary, 176

Marz,Karcn,C-332 Maphalala, M.,C-167 Marchese, Samantha, C-148

I

L Lachenauer, Rob, 175 Larnpel, foseph, 43, C-300 Lang, Bret, C-147

Lanzolla, Gianito, L77 Launder, William, C-147 Laurie, Donald L., 355 Lawrence, Anne T., C-385 Lawrence, Ron, C-310 Lawrence Anne T., 284 Lee, Hau L., 118 Lee, Terry Nels, 340 Lehner, Ulrich, C-346 Lemak, David J., 340 Leson, G., C-167 Levesque, Lynned C., 43 Levicki, C., 314 Levien, Roy, 127

Marchionne, Sergio, 358 Marcus, Bernie, 151 Margolis, Joshua D,, 284,285 Marino, Lou, C-187 Markides, Constantinos C., 16,80, 177,254, 255,287

Martin,

J., 117

Montgomery, Joseph C,, 340 Moore, Dan, C-391 Moore, Daryl, C-311 Moran, John R., 166 Moreton, Wi-lliam W., C-97, C- 113 Morgan, C. David,30 Morgan, Solomon, C-84 Morrison, Paul E., C-359 Moscaritolo, Angela, C-147 Moschetti, Paula, C-399, C-401 Mroz, ]ohn Edward, 314

Marx, Matt, 340 Mary, Daniel, C-2, C-3, C-5 Mary, Simon, C-3 Mathews, Clay,C-54 Mathewson, Mark, C-33 Mattioli, Dana, C-72 Mauborgne, Rende 43, 177 McCawley, Tom,285 McClellan, I ennrfer, C-202 McCool, Grant,284 McCormick, Chris "Maccai' C-49 McGrath, Rita Gunther, 176 Mclver, Ronan, 177 McKones-Sweets, K. E,, C-166 Mclaughlin, Andrew, C-186 Mclellan, Eiizabeth, C-383 McNulty, Iohn,C-367 Meers, Robert, C-60 Menges, Kathrin, C-351, C-353, C-354, c-355, C-3s6 Menkes, Iustin,313 Menor, Larry,43 Meyer, K. 8.,212 Michael, David C., 208,273 Miitts, Heather, C-49 Miles, Morgan P.,43 Miles, Robert H.,355 Miller, Claire Cane, C-331 Miller, Danny, 177,314 Miller, Herman, C-332 Miller, L,, C-167 Miller, Ronald, C-275 Milliken, Iohn, C-359-C-3 60, C -362-C-363,

Muller, Joanne, 213 Murphy, Patrick 8.,365 Murray, Paul, C-337

M

c-365-C-367 Milne, George R.,78

Mabunda, David, C-372, C-382 Macauley, Margaret W, 303 Macdonald, J. G., C-166 MacMillan, Ian C., 176 MacNeil, H., C-166

Ming-Jer Chen, 175

Madhok, Anoop,l77

Mirobito, Ann M.,285 Mistr, William, C-202 Mitchell, Will, 80, 212, 314 Mixon, William 8., C-369 Mizrahi, Isaac,8

Obama, Barack, C-186 O'Bannon, Douglas P., 285 Obel, B., 314 Ohinata, Yoshinobu, 339 Ohmae, Kenichi,44 Ohno, Taiichi, 298 Olian, |udy D., 340,365 Olie, R.,212

Lewin,4.,177 Lewis, Ray, C-49 Lieberthal, Kenneth, 213 Liedtka, Jeanne M .,255, 374 Liedtke, Michael, C-147 Light, loe, C-166 Lin, fudith H., 153

Lin,Lyda,C-272 Lindsay, Samantha, C-26

Lindsol, Harry, C-26, C-28-C-29, C-30,

c-32 Link,Jay,C-337 Little, Arthur D., 284 Little, Royal,229 Lombardi, Vince,317 Lorsch, )ay W, 43, 365 Loughridge, P atricia, C- 202 Lubatkin, M., 255 Lyles,M. A'212

Madofl Bernard L,265, 269 Maggitti, Patrick G.,

78

Magretta, )oan, 16 Mahan, Hunter, C-49 Maier, Molly,38 Majchrzak, Ann, 339 Mani, Divya A.,294 Mannix, E.,314

MingZeng,146 Mintz, Charles, C-274 Mintz, |enni, 340 Mintzberg, Henry, 16, 43, 314

Moharnmad,259 Mokwa, Michael P., 78 Montgomery, Cynthia A., 16,78,

25s,365

N Nadal, Rafael, C-54 Nadler, David A.,43 Nardelli, Robert,358 Natchiar, G., 137 Nazareth, Rita, 254 Nell, W., C-155 Nelson, George, C-333 Nelson, Pam, C-33 Nelson, R.,313 Neronha, Peter, C-185 Ness, Joseph

A.,

118

Neuman, Robert P.,339 Newton, S. K., C-406 Nichols, P.M'284 Nicklaus, Meredith, C-33 Niles-Jolly, Kathryn, 365 Nohria, Nilin,365 Nordheim, Christie, 1 18 Nordstrom, Blake,30 North, Rodney, C-151, C-153,

c-r66, c-r67 Norton, David P.,43

Olsen, Dave, C-310 Olsen, E.,314

Olson, Susan, C-41 Olusoga,

II7,

Ada78

O'Reilly, Charles A., 339 Oren, Shannon, C-399, C-406 Osegowitsch, Thomas, 177 Osono, Emi,298

Name Index

r-20

p

Rose, Justin, C-58 Rosenfeld, Irene, 250, C-287

Pablo, E.,212 Page, Larry, C-168-C-169, C-171, C-185,

c-185 Paine, Lynn Sharp, 213,284, 365

Quelch, Iohn A.,213 Quinn, fames Brian, 314, 339,365 Quinn, Sean, C-365, C-366 Quittner, |osh, 157

Palepu, Krishna G.,213

Palmeri, Christopher, 166 Pan, Y. G., 177

r"!

Pande, Peter S., 339 Patterson, Abbe,

C-i7i

Rabil, Paul, C-49 Raines, Franklin,39

Patterson, fulien, C-202 Patton, Leslie, C-126

Rosenthal, |im,339 Rosenthal, Jonathan, C-149, C-f50, C-f66

Rothschild, William E., 17 6 Rounds, Kate, C-331 Rowe, W. Glen, C-198 Rozyne, Michael, C-149, C- I 50, CRuch, Dick, C-334 Ruggless, Ron, C-l13 Rui, H.,213 Rukstad, Michael G., 2, 43 Runcan, Tim, C-58

Paul, S. M., 161

Rainsford, P., C-406 Rajarathnam, Raj, 259

Paul, Satya, C-78 Payne, Charles W, C-202

Rand, Dave, C-359, C-360, C-365, C-36,C-367 Rand, Neil, C-367

Peck, Emily,284

Randall, Robert M.,213 Rao, Ashkay R., 176 Rasulo, |ay, C-277, C-287, C-286 Raubitschek, R.,314 Rayasam, R., C-166

Sanchanta, Mariko, C-331

Reed, John,284 Reed, Richar4 340

Sashittal, Hemant C., 365

Reid, foanne, 365

Sathe, Vijay, 365

Penn, C., C-406 Pensiero, Ioe, C-367 Perez, Antonio, C-212, C-213-C-216

Pedman, Lawrence,256 Perry, Keny, C-58 Peteraf, Margaret A.,Il7,I f 8, 313 Peters, Tom, C-245 Petit,

4.,212

Petrecca, Laura,38

Pfsffsr, feffrey, 340, 365 Pfeffer, Jenna P.,23 Phelps, Michael, C-49

Phillips, Baxter, Ir., C-39I Phoenix, 169 Piacenza, Bruno, C-354, C-355, C-356 Pickens, T. Boone, Jr., C-212 Pisano, Gary P., 117,177,314 Plank, Kevin, C-42, C-43, C-44 Plank, Scott, C-43, C-44 Polk, E., C-166 Poole, Shelley, C-202 Porras, ]erry L, 43,285 Portanger, Erik,284

Porter Michael

E

., 76, 44, 50,77,78,99,

102, 1 18, 720, t22, r24,130, 146,

t77, 780, t8r, t82, 2r2, 254, 2ss, 284,285,36s Posey, Buster, C-49

Post, James E.,284 Powell, Thomas C.,340

Prahalad, C. K., 314 Premji, Azim,2

177 , 212,

Preston, Lee E., 285 Price, Raymond L.,43 Price,. Sol, C-7

Priddle, Alisa, 358 Priem, Richard L., 145 Pruthi, S.,212 Pugh, Lyle, C-202 Pujols, Albert, C-54

213,214, 285, 313,

Rendich, Andy, C-129 Reyes, fose, C-49 Rhoads, Gary K., 314, 340 Rhode, Giibert, C-332, C-333 Richards, Terry, C-400 fuchardson, Sandy,43 fuchard the Lionheart, C-301 Ridderstrale, Jonas, 314 Riggs, Bonnie, C-126 Riggs, Cynthia, C-33 Ritter, Bill, C-25 Rivkin, |an, 16 Robert, Michel, 22,43, 149 Roberts, Curry A., C-199, C-201 Roberts, Daniel, C-58 Roberts, David, C-391

e

rJ

Sacks, Danielle, C-72 Saekel, K., C-406

Salamon, L. M., C-210 Sanyal, Rajib,284

Scanlan, Gerald,340 Scanlon, Joseph N., C-333 Scherer, F. M., 78 Schermerhorn, fohn R., 269

Schmidt, Eric, 325, C-168 Schnarr, Karen, C-198 Schneider, Anton,255 Schneider, Benjamin, 365 Schoemaker, P., 117

Schriffrin, M.,

177

Schuell, K., C-166 Schuler, Fran, C-360 Schultz, E. J.,250 Schultz, Howard,3l, C-4, C-305, C-307-C-3II, c-3 16, C-3 r 9, C- 320, C-32r, C-324,

Rock" Melinda,339 Rodgers, Aaron, C-54

Seth, A.,212

Rodriguez, Alex, C-54

Shah,

Robin Hood, case, C-300-C-301 organizational structure, C-300 strategy change, C-300-C-301 Robinson, P., C-166 Robinson, Phyllis, C-150

Rogovsky, Nikolai,284

Roll, R.,255 Roman. Ronald M.,285 Romo, Tony, C-54 Roos, Goran, ll8 Rorsted, Kasper, C-345, C-346, C-348, c-349,C-350, C-351, C-3s4, C-3ss, c-356, C-357, c-358 Rose, Derrick, C-58

I

Rynes, Sara L.,340,365

c-327, C-329 -C-330, C-33 1 Schurman, Mark, C-335, C-342 Schwartz, A., C-167 Schwartz, Mark D., 284,365 Sculley, John, C-188 Seepersaud, Steve, C-58 Selby, Richard W, t20 Server, Andy, C-331

Roberts, Sarah, 284

I5

Amit 1.,284 Shaich, Ron, C-96, C-97, C-105 Shank, lohn K., rl8 Shapiro, Nina, C-25 Shapiro, Roy D., C-359 Sharapova, Maria, C-54 Shaw, Shaw,

Gordon,43 Warren,256

Shein, Edgar, 365

Shih,WillyC., r77,374

t-21

Name Index Wakeam, lason,I77

Shimizu, Norihiko,298

Tata, Ratan, C-252

Shin, Annys,40

Tatum, Donn, C-275 Tebow, Tim, C-54 Teece, David 1., 1 17, 1 l8 Templeton, Ross M.,273 Thomas, Howard,78 Thomas, Terry,269 Thompson, Arthur A., Ir.,284' C 6, C-42,

Shippea Frank, C-332 Shliefer, A., 255 Shnayerson, Michael, C-386, C-387' C-391

Shuen,Amy,117 Siegel, Zev, C-307 Simester, Duncan, 16 Simons, Robert, 314, 340, C-345 Sims, Ronald R.,284 Sinegal, Jim, C-6,C-7, C-9, C-10, C-12,

c-17, c-18 Singh, Harbir, 177,213

Slevin, Dennis P., 177

Iain,27l Ken

Thomson, AIan, 365 Thornton, Emily,339 Thrupp, A., C-396, C 406 Thulasiraj, R., 137 Tice, H. S., C-210 Tiffany, Charles Lewis, C-84-C 85' C-88 Tiffany, Louis Comfort, C-85 Tilger, Carsten, C-354, C-356 Tillman, Christine, C-202

Singh, iang B., 365 Sinha, fayant,213 Slater, S., 314

Smith, Smith, Smith, Smith, Smith,

c-s9, c-96, c-rr4, c-r27 ' c'220' c-305

G'78,176

Kennedy, 339

N. Craig,285 Orin, C-329

Snyder, Jim, C 391 Sokolowski, S. W., C-210

Walker, Brian, C-335, C-336' C-344 Walker, Esmond Cardon, C-275 Walker, Kemba, C-49 Wal1, lohn, C-58 Wally, S., 314 Walsh, James P., 255, 285 Walston, Stephen L., 339 Walters, C., C-406

Walton, M.,339 Walton, Sam, 359, C 6 Wang, Qianwei,339

Wascog Alex, C-362, C-363,

c-366,

c

367

Washington, William, C-202 Waters,

J.

A.,

16

Watson, GregorYH., 118 Webb, Allen P., 365 Webb, Sam, 250

Tirrell, M., 161 Touryalai, H., 177

Weber, James,284 Wegrzyn, Charles, C-153

Tovstiga, George, 1 18 Tracy, Brian, C-69

Weir, Mike, C-58 Weise, E., C-166

Tse, D.

K.,

Weiss, Eric,40

177

Iefl

177

Weiss,

Spielberg, Steven, 18

Tirlly, Shawn,2l3 Turley, Larry, C-393 Turner, Clinton, C-202 Turnipseed, David L., C-2,C-247 Turpin, Pat,38 Tushman, Michael L., 339

Spindler, Michael, C-188

Twer, Doran,340

Stalk, George, lr., 176 Stanford, R. Allen,265 Steensma, H. K., 212

tl

Wetlaufer, Suzy, 365 White, David, 177 White, Gordon,230 Whiteman, G., C-406 Whitman, J. R., C-166 Wie, Michelle, C-54

Somerville, Iain,314 Song, K.,212 Spacey, Kevin, C-133 Speth, ]. G.,284 Spicer, Andrew,284

U

Steinebach, Lothar, C-354, C-355'

c-3s6-c-3s7 Stephens, Debra,27l Stevenson, Howard,340 Stone, Brad, C-186, C-219

\/

Stone, Reuben 8., 118

3

13, 359

Welch, Suzy,313 Wells, David, C 146 Wernerfelt, Birger, 78, I17 ,255 Wessel, Godecke,339

Wiedman, Christine,43 Wieters, Matthew, C-49 Williams, Derrick, C-49

Williams, Iohn, C 392, C-393'C-399,C-400'

c-40r, c-403-c -404' C-406

Story, Louisa,273 St-Pierre, Georges, C-49

Van By1en, Hans,

Strickland, A. 1., C-26, C-84' C-369 Stroh, Linda K., 340 Strong, Maurice,256

Suil, Donald, 118 Sun Tzu, 287

3 I

-r I

C 354, C-356' C-357

Van Marrewijk, Marcel N. A., 284 Van Putten, Alexander 8., 176 Varchaver, Nicholas, 265 Veiga, fohn F.,284,340

Stuckey, John, 177 Suarez, Fernando, 177 Suboleski, StanleY, C-391

Swift, Taylor, 169 S1'ron, Richard,39 Szulanski, Gabr rel, 212,

Ungan, Mustafa, 339 Upton, David M.,314

We1ch, ]ack, 2, 17 8, 214,

4

Vermeulen, F.,255 Vigilla, Hubert, C-41 Vishny, R.,255 Vogelstein, Fred, 340, 365 Volkema, Mike, C-334, C-335'C-336 Vonn, Lindsey, C-49 Vullo, Cara, C-148

\A/

vv

Tahilini, Tarun, C-78

Wade, Dwayne, C-54

Takeouchi, Hirotaka, 298

Wade, ]udy,339

Williams, Serena, C-54 Williams, Venus, C-54 Williamson, A., C-166 Williamson, O.,314 Williamson, Peter f., 80, 146'255 Wilson, ChiP, C-59, C-60, C-61,

c-66,c'69 Wilson, Robert, C-353 Wing, Gabe, C-337 Wingfield, Nick, 259, C-197 Winiarski, Warren, C-393, C-399

Winkler, Mar gat et, C -27 4 Winter, SidneY G ., 117 , 272' Wood, Ryan, C-43,C-44 Woods, Tiger, C-54 Wooldridge, Bill, 313 Worrell, Dan L.,285

313

'

3I4

l-22

Name Index

Worthen,

Itm,C-366,C-367

Wright, M., 212 Wu Hsiu-Chi, C-26I

146,).76 212 lohn, C-84-C-85

Yoffie, DavidB., yoon, Sangwon, Young,

Z

Y Yang, Don lones, Yip, G.,

213

C-331

Zander,U.,3l4 Zbarack| Mark

1., 339

Zemsky,p., 177 Zetsloot, Gerald I. 1.M.,284 Zimmerman, Ryan, C-49 Zol1o, M., 117,314

Advertising

A

Costco Wholesale, C-8 Eastman Kodak, C-215 Equal Exchange, C-159, C-165 Frog's Leap Winery, C-402-C-403 Google Inc., C-177 Herman Miller Inc., C-341-C-342 Kraft Foods 2012, C-298

c-115

definition,

159

diversification by to access resources, 218 to build market position, 218 and due diligence,2i8 by Equal Exchange, C- 1 50 failure to deliver, 218 by Henkel AG, C-349 by Kraft Foods Cadbur;', C-290' C-292 Nabisco, C 290

of Kraft Foods by Philip Morris, C-289 by local companies in developing

countries,208 209 by Nucor Corporation, C-228-C-231

On2 Technologies by Google, c- 1 82-C- 183 premium vs. bargain price for, 218 and restructuring, 230 ofStarbucks by Il Giornale, C-310 State Fair ofVirginla, Inc., C-203 transaction costs, 221 by \Aialt Disney Company, C-273, C-275,

208

Chipotle Mexican Grill, C- 120-C- 12 1 as competitive weapon, 53 Costco Wholesale, C- 13-C- 14 Equal Exchange packaging and labeling, C- 155 public awareness campaign, C-155

Acquisition costs, 217, 218

of Coach by Sara Lee, C-7 4 to create subsidiaries, I90 criteria in unrelated diversification, 228 cross-border, 1 80

Starbucks, C-320

All-in-one business machine, 207 Ambidextrous organizations, 325

Ambition, obsession with, 264 Asia, strategic alliances in, 183 Assumptions, in competitor analysis, Athletic apparel industry globalbrands, C 71

Activities execution-critical, 3 19 -320 independent actions, 321

prescribed,32l Activity-based accounting, 101 Activity ratios, 85-86 Adaptation of best practices, 322 Adaptive culture advantage to all companies, 352 high-tech companies, 352 no compromise in values, 352 stakeholder interests, 352 supportive n'ork climate, 351

73

major competitors, C-7 1 -C-7 2 revenues and sales, C-71

Attitude changes,6T Audit committee, 37 Authority; see Delegation of authority Automobile industry bargaining pou.er, 61 grorvth potential in China, 181 in India, C-250-C-251 outsourcing by, 302 Tata Motors, C-246-C-255 Availability of substitutes, 57 Average collection period, 85

Awards,33l to Starbucks, C-328

D

President Chain Stores, C-270 Sift Cupcake and Dessert Bar, C-39 Starbucks 2007 -2011, C-306 Tata Motors, C-249 Thanksgiving Coffee, C 165 Under Armour, C-45 Bankruptcy Chapter 1 1 proceedings, C-208-C-209 Chapter 7 proceedings, C-209 Eastman Kodak, C-211, C-2I4-C-216 not-for-profit sector options, C-200 threat for State Fair ofVirginia, C-207 Banks, corporate frard, 264 Bargaining porver

ofbuyers,60-63 of diversified companies, 237 of suppliers, 58-60 Barriers to entry brand preferences and customer loyalty, 54

cereal industry, 71 cost advantages of incumbents, 54 dealer networks, 55

in diversification decision, 220 government policies, 55 high capital requirements, 54-55 and industry driving forces, 65 network effects, 54 for new venture development,2i9 overcoming, 55 securing retail space, 55 for startups,217 Beer industry

L")

advertising, 74

Backward integration to achieve greater competitiveness, I63 and buyer bargain.ing power, 61 cost saving conditions, 163

definition,

1nc-.

Netflix, C-l3l-C-132

lvebsite, C- 155

Google AdSense, C-278 Google AdWord s, C - 17 5 -C-17 6 Google's desire to dominate, C-179 Herman Miller Inc., C-338 media for Under Armour, C-50 by Panera Bread Company, C-106 Sift Cupcake and Dessert Bar, C-35-C-36

c-276-c-277 YouTube by Google, C-).78-C-179

(,-/5-(,-/f)

t.oacn

in China,

Accounting activity-based, l0l oversight of, 37 Accounting scan dals, 265 -266 corporate, 37 Freddie Mac and Fannie Mae, 39-40 Acquisitionsj see nlso Mergers and acquisitions of Chipotle Mexican Grill by McDonald's,

Balance sheet

beer industry, 74

162

differentiation-based competitive advantage,163 in-house value chain activities, 163 production and pricing problems, 163 and supplier bargaining power, 60 Balanced scorecard,29

key success factors, 74

Benchmarking to assess cost effectiveness, 103 consulting organizations, 1 03

definition,

103

ethical conduct in, 104 guidelines, 104 to identify best practices, 322 information sources for, 103 key purposes as

oi

101

motivation, 360

r-23

I-24

Subiect Index

Benchmarking-Conf. objectives, l03

Brand-building,

to uncover competitive advantage, 106 Best-cost provider strategies, 7-8 compared to other strategies, 140

definition, 122, 140 distinguishing

fe atw es, I 42- I 43

resource and capability analysis, i40 target market, 140 at Toyota, i41

value-conscious buyers, 140 when most competitive, 140-141 Best practices, 105 across value chain,322 adaptation to circumstances, 322 benchmarking to identily, 322 capturing benefi Is of , 327 -328

definition,32l motivation,360 Befier-off test,227 as

ror orversrtlcatton, ll,/ for unrelated diversification, 228 Big box stores, increasing market share, C-94 Blo

o

mb erg Busin

e s sw e

ek, C

- 3 3

6

Blue-ocean strategy

definition,

152

examples, 154

Gilt Groupe, 153 long term success problem, 154 online auction industry, 152-154 types of marketspace, 152

Board of directors audit committee, 37 compensation committee, 38 corporate governance appraisal of directors, 37-38 evaluation of leadership skills, 38 oversight of compensation, 38 oversight of financial accounting, 37 focus on short-term performance, 38 guarding against self-dealing, 264 Herman Miller Inc., C 336-C-337 independence of, 38-40 inside directors, 37 outside directors, 37 responsibilities of, 38-40 State Fair of Virginia, Inc., C-207-C-203 Bonds taxable, C-203 ta-x-exempt, C-204 Bonus compensation, Henkel AG group performance, C-353 individual performance, C-354 payout linked to goals, C-354 payout terms, C-354 team performan ce, C-353 -C-354 Brainstorming, 361 Brand awareness Chipotle Mexlcan Grill, C-121 Coach Inc., C-73 Panera Bread Company, C-105

131

Brand image and reputation, 237 Branding significance in jewelry industry, C 94 C-95 by Tiffany & Company, C-88 Branding capabilities, Z4 Brand loyalty, first-mover advantage, 155 Brand managers

origin at Procter & Gamble, 294 role in strategy-malting. 3l Brand names exploiting use of, 222 global, 195 Brand preferences, as barrier to entry, 54 Brand recognition, 54 Brands, 87,

88

see

also Product line

corporate, 229-230 Henkel AG, C-346 Kraft Foods, C-287 switching costs, 50 umbrella, 230

Bribery areas predominant in, 260 and codes ofethics,261 companies fined foa 261 and Foreign Corrupt Practices Act, 261 issue for multinational corporations,

260-261, persistence o{ 261

BRIC countries,204 Broad differentiation strategies benefits for firms, 139 definition, 12I to deliver superior value intangible features, 133 lower buyers' costs, 132 resource and capability analysis, 133 signaling value, 133 switching costs to lock in buyers,

t33-134 tangible features, 133 distinguishing features, 142- 143 enhancing profitability, 130 pitfalls to avoid overspending, 135 rapid imitation, 134-135 too high price, 135 too many frills, 135 trivial improvements, 135 unenthusiastic buyers, 135 unique customer value proposition, 139 uniqueness drivers, I J0- I3I continuous improvement, 131 customer service, l3l high-quality inputs, 131 human resource management activities, l3l

innovation,

131

marketing and brand-building, 131 research and development, 131 superior product features, 131

value chain management, 130-131 value chain revamping, 132 when most competitive diversity ofbuyer needs, 134 diversity of product uses, 134 few rival firms, 134

technological changes, 134 ways of differentiating products, I34 Browser market share rankings, C-I82 Budget reallocation, 318 Bureau ofLabor Statistics, C-34 Bush administratlon (2nd), C-229 Business base

broadening extending geogr aphic scope, 247 at Johnson & iohnson, 248 from rapidly changing conditions, 247

transfer of resources and capabilities, 247

narrowing by divesting, 247-249 by restructuring, 247 -249 Business buyers, bargaining power, 61 Business case for corporate social responsibility environmentally sustainable practices, 280-281 increased patronage, 279

long-term interest of shareholders, 280 281 lower costs, 280-287 reputation,2T9 revenue enhancement, 280 workforce retention, 280-28 t Business case for ethical strategy, 268 270 Business ethics; see also Illegal activity; Unethical business behavior cases for ethical strategy business case,268-270 moral case, 268 in competitive intelligence, 73 delrnltron, Z5 / as good business, 269-270 Googlet problems in 2012 fined by Federal Communications Commission, C-186 legal settlement, C-186 nature of, C-185-C-186 net neutrality issue, C-186 integrative social contract theory, 262 at Novo Nordisk,267 standards in Europe and U.5.,258-259 Business-level

st r

ategy, 82

definition,34 delegation of, 216 at Eastman Kodak commercial segment, C-2I7 -C-2I8 consumer segment, C-278-C-219 international growth, C-252 lululemon Athletica, C-63 responsibility for, 33

Subject and scope ofthe firm, Tata

159

Motors

commercial vehicles, C-253 iaguar and Land Rover, C-253-C-254

Henkel AG,

C-346

Index

competitive advantage ofToyota,298 competitive attack based on, 150 competitively superior, 91 competitively valuable, 8 in competitor analysis, 72 core competencies,93 cross-functional,8g

Kraft Foods competition for,

l-25

C-292-C-293 C-294 passenger cars, C-252 Europe, C-294 peoplei carlNano,C-252-C-253 financial summary,C-294-C-296 Business lineup higher costs, C-293 restructured by Kraft Foods, North America, C-293-C-294 definition, 87 C-290-C-292 product differentiation, C-293 distinctive competence, 93 restructuring and retrenching, 249-250 revenues, C-293 in diversification decision,220 sticking with, 246-247 strategy goals, C-292 dynamic management, 92 Business model Panera Bread company, C-il1 gained in foreign markets, 180 Costco Wholesale, C-9 ranking, 244-245 generalized vs. specialized, 222-223 customer value proposition, l0 sales by Apple Inc., C-190 Herman Miller Inc., C-333 development at Starbucks, C-308-C-309 sales by Eastman Kodak, C-2 I 5-C-2 6 hollowed out by outsourcing, 167 -168 Eastman Kodak, C-218 C-219 Walt Disney Cornpany knowledge-based, 88 Equal Exchange, C- I 54 consumer produ cts, C-282-C-283 of local companies in developing markets, examples, 10 interactive media, C-283-C-284 209 Google inc., C-168,C-172-C-179 media networks, C-278-C-280 means of categorizing, 88-89 oflocal companies in developing parks and resorts, C-280-C-281 nine-cell matrix for strength of,239-240 countries,207 studio entertainment, C-28I-C-282 related to value chain activities, 107 modified in developing countries,205-206 Business strategy, 215 required in forward integration, 165 Mystic Monk Coffee, C-4 Business Week, C-334 resource bundles, 89 Netflix Buyer bargaining power shared for competitive advantage, DVD-by-mail option, C I37 competitive pressures from,60-63 200-2Ol streamingoption,C-137 C-138 factorsdeterminingstrengthof toachievedominantdepth,200-201 Panera Bread Company, C-99-C-102 backward integration threat,61 exarnples,200 potential problems,201 profit formula, 10 information on pricing and costs,6l 7-Eleven Stores nurr.rber ofsellers, 6I for strategy execution, 291-292 franchise operations, C-257-C-258 strategy supportive,29l option to delay purchases,62 store construction,C-257 for sustainable competitive advantage, price sensitivity,62-63 store location, C-257 supply and demand,6l 89-91 valuable, in diversified companies, 237 Sirius XM radio vs. over-the air switching costs, 61 broadcasters, I I weak differentiation, 6I Capabilities based matrix structure, 306 and sustainable business practices, 275 negotiating terms ofsale, 61 Capacity utilization, 74 full-time, 124 textbookpublishers,C-26- C-27 andvalue chain activities, i25 Businessplan Buyerdemand,49 Capital,raisedbyNetflixin20ll,C 130 at Sift Cupcake and Dessert Bat C-39-C'41 Buyer demographics, 65-66 Capital expenditures, by Nucor, C-232 Capital investment strategy, State Fair of Buyers Starbucks, C-310-C-311 Business process reengineering dispersal oflocations, 199 Virginia, Inc., C-204-C-205 diverse product uses, I 34 Capital market, internal, 230 capturing benefits of, 327 -328 compared to other process management identifying types along value chain,63 Capital requirements, 54-55 tools, 327 leverage of,6l Capital strategy, State Fair ofvirginia, Inc. Department ofAgriculture loans, C-204 lowering overall costs of, 132 definition, 323 notional amount swap, C 204 and strength ofrivalry, 5l examples,323 taxable development bonds, C-203 as motivation, 360 and threat ofnew entrants, 56 tax-exempt bonds, C-204 problems leading to, 323 unenthusiastic, 135 unsecured debt, C-204 value-conscious, 140 success of,324 Career planning, at Procter & Gamble, 294 value chain activities,323 Carmelite monks of Wyoming Business risk background, C-2 effect ofeconomic conditions, 184 185 C daily activities, C-3 impact ofgovernment policies, 184-185 r.nonastery, C-2-C'3 increasedbyforwardintegration, 164 Capabilities newsitepurchase,C-3 versusopportunityindeveloping accessedbymergersandacquisitions, 160 Cash cows, 242,243 added in partnerships, 302 countries, 204 Cash flow building and strengthening reduction in, 66 acquired by mergers and acquisitions, in diversified companies, 242-243 spread by entering foreign markets, 180 Under Armour, C-45 297-298 Business segments/units Cash hogs, 242-243 collaborative partnerships, 299 competitive strength scores internal deve1opment,296-297 Catering program, Panera Bread Cornpany, calculating, 237-238 C-104-C-105 competence,93 interpreting,23g Developing Markets,

1

I-26

Subject Index

Causal ambiguity,

90

Celebrity endorsements, for Under

C

49

Armour,

Cloud computing, C 168 competition, C-1S1-C-182

CoalMineHealthandSafetyActof

reward for bad behavior, 281

runner-up,

1969,

making C-388 advantages,30T-308 Coalminingindustry basic tenets, 308 government regulation, c-386 disadvantages, 307-308 Massey Energy corporation, CEO compensation, 38 C-385-C-388 Costco Wholesale, C-18 methane explosions, C-386 Equal Exchange, C-154 and United Mine Workers, C-386 Herman Miller Inc., C-336 Upper Big Branch Mine disaster, Massey Energy Corporation, C-385-C-391 C-387-C-388 Coal River (Shnayerson), C-386 CEOs Code ofconduct/ethics and corporate governance,3T and bribery/kickbacks, 261 evaluation ofleadership skills,38 Costco Wholesale Henkel AG, C-345-C-346 compliance with laws, C-I8-C-19 Massey Energy Corporation, customer relations, C-19 C-386-C-388 respect suppliers, C-19 role in strategy-making,31 reward shareholders, C-19 Ceremonial events, 357 take care ofemployees, C-19 Certificate ofdeposit, Equal Exchange, for lululemon Athletica suppliers, C-68 C-160 questions for creating,263 Certification standards, 13I and Sarbanes-Oxley Act,262-263 Change-resistant cultures Coffee industry stodgy bureaucracies, 353 comparison offree trade vs. New York unhealthybehaviors,352 prices, C-152 Channels of distribution; see Distribution competition in, C-148 channels consumption in United States, C-3 Chapter 11 bankruptcy Equal Exchange in, C-148-C-166 EastmanKodak,C-2It, C-214-C-216 freetradeindustryand,C 160 C-164 not-for-profit sector, C-200 retail sales of organic coffee, C-4 proceedings, C-208-C-209 specialtycoffees, C-4-C-5 Chapter 7 bankruptcy Starbucks and competitors, C-4 not-for-profit sector, C-200 World Fair Trade Organization, C-4 proceedings, C-209 Coffee sales, C-266-C-267 Charitable contributions,2Tl Collaborative partnerships, to access Herman Miller Inc., C-337 capabilities,299 by Starbucks, C-328-C-329 College students Chieffinancial officer, role in strategyand digital technologies, C-26 making, 3l textbook purchases, C-26 Child labor, 260 College textbooks; see Textbook publishing China Combination structure,306 advertising in, 208 Communication ofstrategic vision,2l-22 auto market groMh potential, 181 Communication systems, 125 capital of manufacturing, 183 Community-based marketing at lululemon Coach Inc. in, C-82 Athletica, C-68 Dell Inc. in,205-206 Community involvement, Starbucks, C-328 demand for luxury goods, C-78 Community service, 271 Google's problems in, C-179 Companies local distribution in, l8l acquiring and restructuring,230 low-cost labor,208 appraisal ofdirectors of,37-38 core values,25-26 online travel agency,2O8 population, 204 crafting strategy, 3l-35 factors affecting performance, 3 prepaid access cards,zl7 internal universities,299 second largest economy,204 Yum! Brands in,205 mission statement,24-25 performance evaltation,36-37 Clean Water Act, C-386 performance indicators, 12 Clearance sales, 53 present situation in choosing strategy, 45 Clinton adminisftation, C-229 Centralized decision

152

settingobjectives,2T,3O

sizeof,74 strategicgroup map,69-71 strategic vision, 20-24 strategy execution,25-26 strategy-making and execution process,

19-20 struggling, 152 tests for winning strategy competitive advantage test, 12

fit test,

12

performance test, 12 top performers, 3 tradition-steeped,347

triple-bottom-line repofiing,276 vertically integrated, 162 vision and values,25-26 vulnerable market leaders, 152 Company culture, 87, 88, 125; see also Corporate culture Comparative cost, in diversification decision, 220-221 Compensation; see also CEO compensation at Chipotle Mexican Grill, C-120 at Costco Wholesale employees, C-16 C-17 executives, C-18 forms of,331 guidelines for,335-337 Herman Miller Inc., C-339-C-340 incentive,335 at Nucor Corporation,336 bonus plan, C-237 department manager incentive plan, C-237 401(k) plans, C-238 production incentive plan, C-237 profit sharing, C-238 senior officer incentive plan, C-237-C-238 at Starbucks, C-322

oftop executives,

38

Compensation committee, 38 Compensation incentives, 361 Competence,93

Competition for Apple Inc. in PCs Dell Inc., C-193 C-194 Hewlett-Packard, C-193 for Chipotle Mexican Grill Moe's Southwest Grill, C-124 Qdoba Mexican Grill, C-124-C-2I5

TacoBell,C-123-C-124 in coffee industry, C-148 for Costco Wholesale bases of competition, C-20 BJ's Wholesale Cltb, C-23-C-25 Samt Club, C-20-C-23

Subiect for Disney media networks, C-280 factors affecting substitutes availability and price, 57 quality and performance, 58 switching costs, 58 for Google Inc., C-168

narrow market niche, 8 and value chain activities, 7 from strategy execution, 300 Toyota Production System, 298 translatingvalue chain activities into,

106-108 C-184 Competitiveadvantagetest, 12 Yahoo!, C- 184-C- I 85 Competitive assets, 86, 94 for Google Inc. on Internet Competitive attack Microsoft, C-I83-C-184 basis for Yahoo!, C-184-C-185 continuous innovation, 151 guerrilla tactics, 151 for Henkel AG, C-347 for Herman Miller Inc., C-344 improving on ideas of rivals, I5I and industry attractiveness, 237 leapfrogging competitors, l5l in inkjet printer industry, C-218-C-219 lower prices, 150-151 forlululemonAthletica,C-7| C-72 preemptivestrike, l5l in luxury goods market, C-77 strongest competitive assets, 150 for Nucor Corporation restricting challenger's options, 154 ArcelorMittal, C-244-C-245 signaling retaliation, 155 foreign steel makers, C-243-C-244 time needed for, l5l-152 Competitive forces United States Steel, C-244-C-245 for Panera Bread Company, C-99 buyer bargaining power, 60-63 price sensitivity,60-63 for Sift Cupcake and Dessert Bat C-37 and profitabilitF, 63-64 strategy for,4-5 rivalry among competing sellers, 49-53 strategy matched to, 64 in textbook industry sellers ofsubstitutes,56-58 Ebooks, C-28-C-30 supplier bargaining power, 58-60 neweditions,C 28 threatofnewentrants,54-56 rental textbooks, C-28 Competitive intelligence, and business used book market, C-28 ethics, 73 Competitive liabilities, 94 for Tiffany & Company Blue Nile, Inc., C-93 Competitively superior capabilities and resources, gl Bulgari, C-92-C-93 Competitively unattractive industry, 63 Costco, C-94 Signet Group, C-91-C-92 Competitive moves, likely by rivals, 71 Competitiveness for Under Armour backward integration to achieve, 163 adidas Group, C-56-C-58 DVD rental business, C-134-C-136 intensityof, C-52-C 53 forward integration to enhance, 163-164 major competitors, C-53 restaurant business, C- I 12 Nike, Inc., C-53-C-56 of unrelated businesse s, 228-229 Competitive advantage; see also Diamond and value chain system, 102 ofnational competitive advantage; Competitive position see also Industry Sustainable competitive advantage position; Market position from corporate social responsibiliry Apple Inc. 277-278 PC industry, C-192 ofcross-business strategic fit, 241 personal media players, C-194 differentiation-based, 163 smartphone market, C-195 in differentiation strategies, 133 Costco Wholesale, C-6 in international arena benefits ofcross-border coordination, measures to strengthen, 149 Nucor Corporation,C-220-C-221 201 Competitive power, VRIN tests for, 90-9 I sharing transfer of resources/ Competitive strategies; see also Generic capabilities, 199-200 competitive strategies using location, 198-199 limited in unrelated diversification,232 resource-based, 143-144 Competitive strength assessment from related diversification,226 benchmarking data, 109 from strategic fit, 226 example, 109, i10 strategies for key success factors, 109 differentiation, 7 need for, 108 low-cost provider, T-8 Microsoft,C-183

Index

I-27

quantitative ranking, 109 resource and capabilities analysis, 109 strategic implications, 109-1 I I SWOT analysis, 109 weighted ratings, 109, ll0 Competitive strength scores

abilitytomatchrivals,23T,23S bargaining leverage, 237, 238 benefits from strategic fit, 237,238 brand image and reputation, 237,238 calculating,238 costs relative to competitors, 237,238

interpreting,239 profitability relative to rivals, 237,238 relative to market share, 237,238 resourceandcapabilities fit,237,238 Competitive weapons advertising, 53 couponing, 53 customization, 53 dealer networks, 53 improved products, 53

innovation,

53

price discounts, 53 warranties, 53 Competitor analysis framework assumptions, 73 capabilities,T2 current strategy, 72

information sources,

73

objectives, 72

Competitors diversity of,52 equal in size and stability, 52 increase in number of, 52

leapfrogging, 151 ways ofmatching focused strategies, 139

Computer-assisted design, 125 Concentration oflocations for economies of scale, I 98 experience and learning benefits, I 98 for lower production costs, 198 superior resources, 199 Conglornerates,228 Consistency in execution, 319-320 Consumer preferences, shift in, 139-140 Consumer products, Walt Disney Company, C-282-C-283 Consumer products group, Starbucks, C-319-C-3ZO Consumers appeal ofcorporate social responsiblliry,2T9 on jewelry industry, C-89 of premium wines

demographics, C-394 green consumers, C-395 health awareness,C-394-C-395 segments, C-393-C-395 reached by Internet, 65 unaware offree trade industry, C-153

t-28

Subject Index

Consumer spending, in restaurants, C-l Continuous improvement, 360 Continuous product innovation, 1 5 I Continuous quality improvement, 13 1

Control in decentralized system, peer-based, 330-33 Convenience stores

12

1

main competitors, C-261 number of7-Eleven stores, C-256 number ofstores, C-261 in Taiwan, C-259-C-261 U.S.-Taiwan comparison, C-259-C-260 Convergence of industries, 160 Cooperative advertising, Herman Miller Inc,, C-338 132

Core business, concentration on, 167 Core competencies, 93, 107

expioited by entering foreign markets, 180 Core values, 19-20

Costco Wholesale, C- l8-C- 1 9

deflnition,25 examples,25 Google Inc., C-17 0-C-17 | Henkel AG, C-350-C-351 Herman Miller Inc., C-335-C-336 linked tc vision, 25-26 lululemon Athletica, C-69-C-71 Nucor Corporation, C -236-C-237 role in corporate culture, 346 Sift Cupcake and Dessert Bar, C-36 Starbucks, C-324, C-325 transformed into cultural norms, 347 as rvindow dressing, 25 Zapposrcom,26-27 Corporate brands, 229 230 Corporate citizenship, 27 2 Starbucks, C-328 Corporate culture; see a/so Problem cultures changing at Chrysler, 358

difficulties, 354 identifying obstacles, 354-355 making a case for change, 355-356 5ubstantive actions, 356-357 symbolic actions, 357

time needed for,

357

-358

Chipotle Mexican Grill, C-120 conducive to strategy execution, 345-353 connection to strategy execution process, 349-350 core values and ethics in, 346

348

adaptation, 351-352 351

Henkel AG bonus compensation, C-353-C-354 performance management, c-3s 1-c-353 redefining vision and values,

271

environmental protection, 27 2 ethical principles in operations, 270 work environment,2T2 workforce diversity, 272 Herman Miller Inc., C-335, C-337 sustainable business practices, 27 5-277 and triple bottom line,274-275

Corporate social responsibility strategy at

Burti

Bees, 273

c-350-c-35 1 Herman Miller Inc., C-336

company variations, 272 reporting standards, 272

key features, 344-346

at Starbucks

lululemon Athletica, C-69 -C-7 I matched to strategy, 350 mirrored in work environment, 344 Nucor Corporation, C-240 originating with founders or strong leaders,345-346 putting profit ahead of ethics, 266-268 role of stories, 347 -348 strong-culture companies, 348-3 49 unhealthy types, 352-354 at rv\I L. Gore & Associates, 345 weak culture companies, 349 wide variance in, 343-344 Corporate fraud

Enron,266-268 Corporate governance and accounting scandals of 2000-2002,37 appraisal of company directors, 37-38 board of directors and, 37-40 evaluation of leadership skills, 38 failure at Freddie Mac and Fannie Mae,

39-40

examples, 229

identifying underperformers, 230 internal capitai market, 230

CorPorate Responsibility Magazine,

27

4,

c

328 Corporate restructuring, Kraft Foods 2012,

c-296-C-297 Corporate scandals, in greed-driven companies, 354

Corporate social responsibility balancing stakeholder interests, 270

ol T.5-216

Corporate structure, 306 Corporate venturing, 219 Corrective adjustments, 1 9-20

initiating,36

37

Corruption, in India, C-250 Cost(s)

intangible,269 internal administrative, 269 visible,269

internal,

l0t

lowered by corporate social responsibiliry 279-280 and prices, 97-98 reduced by entering foreign markets, 180 relative to rivals, 237 shrinking differences in, 66

Cost-based competitive advantage, 7 Cost competitiveness

evaluating, 101 means of improving, 105 Cost-cutting methods, 123-125 Cost differences, l0I Cost disadvantages, options for remedying, 104

Cost-effectiveness, 98 Cost efficiency, from mergers and

of

charitable contributions.

facets

responsibility for, 33 Walt Disney Cornpany acquisitions, C-27 6- C-27 8 allocation of financial resources, C-278 capture synergies, C-278

ofincumbents,54 from price-cutting, 150-l 5i

Corporate responsibilit)., 272

elements

32

Cost advantage

value added by', 229

culture-induced peer pressure, 350

definition,

for diversified companies, 215

of ethical wror-rgdoing

guarding against self-dealing, 264 nol-lor-profi I sector. C-200 oversight of compensation, 38 oversight of financial accounting, 37 State Fair ofVirginia, Inc., C-201-C203 Cor p or at e Kn ights magazine 27 4 Corporate parenting benefits oi 228

definition,2T0

charitable contributions, C-328-C-329 community involvement, C-328 corporate citizenship, C-328 environmental stewardship, C-328 ethical sourcing, C- 327 -C-328 Corporate strategy

tocus, L-1,/b international expansion efforts, C-278

by banks, 264

cultural norms, 347 definition,343

community sewice,

ol

and good strategy execution

high-performing, 309

business model C -257 -C-258 developed by 7-Eleven Stores, C-257

Coordination with channel allies, with suppliers, 132

to energize employees, 350 forces causing evolution

27

I

acquisitions, I59-160

Subject Index Cost-efficient supply chain management, 124 Cost estimates,

l0i

Cost-of-entry test

for dirersification, 217 related diversific ation, 221

for unrelated diversification, 228 Cost of sales, Mystic Monk Coffee, C-5

Cost-producing activities, elimination of, 105 Cost-saving in customer service, 226

in distribution, 226 in market activities, 225 problem in backward integration, 163 Costs ofproduction

and centralized locations, 198

industry driving force, 66 low at Nucor Corporation, C-232 in low-wage countries, 183 overspending, 135 Cost structure competitiveness ol 97-108 value chain activities to identif' components, l0l Counterfeiting, in luxury goods market, C-78 Couponing, as competitive weapon, 53 Creditors, State Fair ofVirginia, Inc., C-205 Credit rating,243 and profits, 265 Critical mass of talented managers, 293 Cross-border acquisitions, I 80 Cross-border alliances, 1 80 Cross-border allocation of financial resources, 230

Cross-border coordination, 201 Cross-border markets, transfer of expertise

to,209 Cross-business collaboration, 222. 223 Cross-business strategy fit, 309-310

Cross-functional capabilities, 89 Cross-functional teams, Herman Miller inc.,

c-337 Cross-industry strategic fit, 235 CSREurope, 272

Cultural differences in foreign markets, 187-188 in strategic alliances, 171, 191 Cultural fit, 248-249 Cultural norms, 347 in strong-culture companies, 348 Culture-induced peer pressure, 350 Currency devaluation, effect on Kraft Foods, C-294 Current ratio, 84 Current strategy, in competitor analysis, 72 Customer base, building, 128 Customer loyalty as barrier to entry, 54 and switching costs, 131

Customer loyalty program Chipotle Mexican Grill, C-121 Panera Bread Company, C-105 Customer needs, ol locals, 201 Customer relations Coach Inc., C-80 Costco Wholesale, C-19 at lululemon Athletica, C-69 Starbucks, C-329-C-330 Customer service improved, 131 7-Eleven Stores, C-266-C-268 strategic fit in, 226

Customer service training, at Coach Inc., C-80 Customer value proposition competitiveness of, 97-108

definition, l0 in differentiation strategies, 129 Sirius XM radio vs. over-the-air broadcasters, value chain analysis

100

Customization, as competitive weapon, 53 Cut-rate pricing attack, 203

D Days of inventory, 85

Dealer networks, 55 as competitive weapon, 53 Dealers, bypassing activities and costs of,

t25-126 Debt-equity ratio, 85 Herman Miller Inc., C-340 Decentralized decision making advantages, 308-309 basic tenets, 308

capturing cross-business strategic fit, 309-3 1 0 challenge of maintaining control, 309 disadvantages, 308-309 Decision making centralized, 307-308 decentralized, 308-3 10 in multidomestic strategy, 194 at Starbucks, C-310-C-31 I in strategic alliances, 171 Defensive strategy options blocking avenues open to rivals, 154 signaling retaliation, 1 55

timing of first-mover advantages, I 55- 1 56 first-mover disadvantages, I 56 late-mover advantages, 1 56 pros and cons for first movers, 157-158 Delegation of authority in centralized decision making, 307-308 in decentralized decision making, 308-3

l0

Deliberate strateg)', 9 Delivery and pickup service, C-266 Demand for luxury goods in China and India, C-78 network effects on, 54 Demand conditions, and national competitive advantage, 181 Demographics differences in foreign markets, 187-188 of India in 2012, C-248

industry driving force, 65-66 and market size, I8l Sift Cupcake and Dessert Bar customers, C-34 specialty bakery market, C-34 Departmental structure, 304

Department of Agriculture, C-118, C-204 Department of Commerce, C-229 Department stores, decline in market share, C-82

11

for,98

r-29

Deregulation,6T Design for manufacture procedures, 125 Developing countries bribery and kickbacks in, 260 business risk vs. opportunities in, 204 exploitation of farmers, C-151-C-I53 strategies for competing in change local markets, 206 low price, 205 modify business model, 205-206 places to avoid, 206-207 tailoring products to fit, 204 Yum! Brands in China,205 strategies for local companies acqursitions, 208-209 business model, 207 Ctrip in China, 208 knowledge of local workforce, 207 -208 rapid gron th, 208-209 transfer of expertise, 209 understanding customers, 207 Diamond of natronal competitive advantage demand conditions, I81 factor conditions, 181 firm, strategl', structure, and rivalry, 183

illustrated,182 related and supporting industries, 182

and relative strength ofcountries, 181 Diamonds characteristics, C-87-C-88 purchasing, C-88 C-89

Differentiation and buyer bargaining power, 61 and increase in rivalry,

5l

and supplier bargaining power, 60

in value chain system, 106 Differentiation based competitive advantage, 163

I-30

Sublect Index

strategy to build shareholder value by Kraft Foods C-23-C-24 better-off test, 217 grocery business , C-287, C-2g6-C-zg7 c-79-c-80 cost-of-entry test,217 ofpizza business, c-290 for competitive advantage,7 industry attractiveness test, 217 ofPost cereals, C-290 customized for company situation, 288 corporate venturing, 219 Kraft Foods by AlVi^, C-287 Digital cameras, problem for Eastman cross-business value chain activities,2l5 State Fair ofVirginia, Inc., C-203 Kodak, C-211, C-213-C-214,C-217 decidingmeans of entry,215 byYuml Brands, C-123 Direct-to consumer sales, by Under internal development,2lg Dividend payout ratio, 86 Armour, C-50 investment possibilities, 216 Dividends, Nucor Corporation, C-22I Disaster relie{ aided by Equal issues in deciding on Dividend yield on common stock, 85 Exchange, C 156 barriers to entry,220 Divisional structure,305 Dispersal of locations comparative cost,227 DMADV (define, measure, analyze, design, buyer-related activities, 199 question ofspeed, 220-221 andverify),324 short delivery time, 199 resources and capabilities, 220 DMAIC (define, measure, analyze, improve, trade barriers, 199 at Johnson & Johnson, 248 and control), 324-325 transportation costs, 199 jointventures,2l9 Dominating depth,200-201 Disposable income, in India, C-251 in multidivisional structure, 305-306 Dot-com bubble, C-335 Disruptive technoiogical innovation, C 232 occasions for, 216 Dow fones Sustainability World I ndex,275, Distinctive competence, 93, 107, 301 picking new industries, 215 276 Distribution poor cultural fif,248-249 Down-the-line managers, 32 Bayonne Packaging, Inc., C-365 steering resources to attractive units,216 decision making by,308-309 at Costco Wholesale, C- 15 and synergy,217 Due diligence, 218 Panera Bread Company, C-107-C-ll0 wide-ranging possibilities,2lT Dumping,203 Samt Club, C-22 Diversified companies by foreign steel makers, C-229 by Under Armour business strategy,2ls Dutch auction initial public offering, direct-to-consumer, C-50 cash flow, 242-243 C-I69-C-I7| in Europe and Latin America, comparison ofunit value chain activities, DVD rentai business, C-280 C-50-C-51 241 industry environment, C-130-C-136 product licensing, C-50 corporate strategy,215 Netflix in, C-127-C-130, C-136-C-140 wholesale, C-50 drawbacks Dynamic capabilities, 92 Distribution channels allocating financial resources,230 internal development,2g6-297 blpassed in forward integration, 164 demands on management, 231-232 from mergers and acquisitions,2gT-298 China, 181 limited competitive advantage,232 from partnerships,299 Coach Inc. internal capital market,242 Dynamic fit, 12 in China, C-82 new strategic moves Dynamic management, 91-92 factory outlets, C-8i broadening business base, 247 full-price stores, C-80-C-81 divesting and retrenching, 247 249 f international wholesalers, C 82 options,245-246 Lin fapan, C-81- C-82 restructuring business lineup, 249-250 U.S. wholesalers, C-82 sticking with business lineup, 246 Earnings before interest and taxes, Eastman dispersal oflocations, 199 parenting advantage,32l. Kodak, C-216 Frog's Leap Winery, C-400 strategy evaluation Earnings targets, short-term, 264-266 India, 181 business unit competitive strengths, Ebooks lululemon Athletica, C-63-C-64 237-240 benefits of at Nucor Corporation, C-226-C-228 competitive value ofstrategic fit, 241 blpassing used book market, C-32 shared in strategic alliances, 191 industry attractiveness,234-237 faster updating, C-32 strategic fit in,226 new strategic moves,245-250 higher returns for authors, C-32 in value chain, 102 nine-cell matrix for, 239-240 economics of Distribution facilities priorities for resource allocation, asency vs. retail prices, C-31-C-32 ai lululemon Athletica, C-68 author royalties, C-31, C-32 244-245 Under Armour, C-52 resource fit, 242-244 challenge to publishers, C-30 steps,233 Distributors,55 cheap to produce, C-30 b)?assing activities and costs of,125-126 turnaround capabilities,230 disadvantages for students, C-30 Divestment(s),244-245,247 249 impactonretailers,C-30-C-3I coordinationwith,l32 Diversification, due diligence before, 218 industry pricing nodel, C-31 of Au Bon Pain by Panera, C-97 less expensive to buy, C-29 Diversification strategies; see also of Chipotle Mexican Grill by pricing strategy, C-31 Related diversification; Unrelated McDonaldt, C-115 in corporate restrtctving,249 as viable alternative, C-28-C-30 diversification Eastman Chemical by Eastman Amazon Kindle, C-29-C-30 acquisition, 218 Apple iBooks, C-30 actions for overall performance, 216 Kodak, C-2ll Differentiation

at BJ's Wholesale Club, at coach Inc.,

Sublect Apple iTextbooks, C-30 Apple Study Cards, C-30 Economic conditions,48 effect on foreign-market entry, 185 in India in 2012,C-248-C-250 Economic metric,274-275 Economic risks, 185 Economicvalue added, C 339, C-340 Economies ofscale caPturing, 123 and centralized locations, 198 from entering foreign markets, 180 from strategic alliances, 191 Economies ofscope competitive advanlage from,227 contrasted with economies ofscale, 226

C-321 C-322

stock option plan, stock purchase plan,

I-31

sustainable energy sources, 276-277

alUnlever,277 training and recognition, C-322-C-324 Environmental management systems, work environment, C-320, C-322 Frog's Leap Winery, C-392, C-399, Employee

retention

C-400-C-403, C-404

Henkel AG, C-345 Nucor Corporation, C-238

Employees acting on ideas from,332 attracted by corporate social responsibility, 279-280 compensation plans at Nucor, at Costco

C-237-C-238

Wholesale

compensation plan,C-16- C-I7 recruitment and selection, C- 18 workforce practices, C-17 Costco Wholesale core values, C-19 decision making by, 308-309 empowerment, 328,360 energized by corporate culture, 350 Frog's Leap Winery, C-399-C-400 incentives for,33l-332 low turnover at Nucor, C-238 at lululemon Athletica, C-69 Massey Energy Corporation, C-385 monitoring performance of, 330-331

definition,227 226-227 Economist, C-228 Education, in India, C-250 Electronic scorecards, 330 Embargo on Nicaragua, C-149 Emergent strategy,9 Emerging markets, demand for luxury goods, C-78 Employee empowerment, Herman Miller Inc.,C-337 motivating, l25 Employee relations orientation sessions,299 peer-based control,330-331 Costco Wholesale qualilyofllfe,272 benefitpackage, C-16-C-17 in restaurant business, C-lI2 compensation, C-16 reward systems, 332-337 recruitment and selection, C-18 Sam's Club, C-23 Frog's Leap Win ery, C 401 Henkel AG at Sift Cupcake and Dessert Bar, bonus compensation, C-353-C-354 C 36-C-37 communication ofcore values, strategic role oftraining,299 in strong-culture companies,348 C-350-C-351 unethical behavior at Devil's Den, performance management, C-302-C-304 C-351-C-353 Herman Miller Inc. unsatisfactory working conditions, C-153 employee stock ownership plan, C-340 as valued partners, 360 in weak-culture companies, 349 fringe benefits, C-340 Employee stock ownership plan profit sharing, C-339 Herman Miller Inc., C-340 Nucor Corporation egalitarian approach,C-238-C-239 Starbucks, C-321 Empowerment, 328,360 fringe benefits, C-238-C-239 Engine technological district, Italy, 182 incentive plan, C-238 Enterprise resource planning, 125 information sharing, C-239 Enterprise Resource Planning software, 324 lack ofjob description, C-239 Entrepreneurship, in strategy-making, 31 medical and dental plans, C-238 Er"rtry new employees, C-239-C-240 effect ofindustry growth rate,65 principles, C-238 industry driving force,66 scholarships, C-239 Environment, 275 service awards, C-239 Environmental factors,48 teamwork, C-239 Environmentally sustainable practices, tuition reimbursement, C-238 275-277 Sift Cupcake and Dessert Bar, C-36-C-37 business case for,279-281 Starbucks greenhouse gases, 276 fringe benefit program, C-323 for natural resources,276 health care coverage,C-32| and strategic fit,

Index

Environmental melric,274-275 Environmental proleclion,2T2 Environmental Protection Agency, C-328 Environmental stewardship Herman Miller Inc., C-336, C-338, C-339 Starbucks, C-328 Environmental sustainability at Costco Wholesale, C-20 at Nucor Corporation, C-236 wine industry of California, C-396-C 399 Equity investors, C-60 Esprit de corps,360 Ethical dilemma, Devil's Den, C-302-C-304 Ethical relativism

definition, 259 payment ofbribes and kickbacks, 260 261 underlying thesis,259-260 use ofunderage labor,260 variations across countries, 258-260 Ethical sourcing, by Starbucks, C-326, C-327-C-328 Ethicalstandards cross-country differences, 259-260 impact on strategy,262-264

inMuslimstates,2sg

ofright and wrong,257 role in corporate culture, 346 schools

of

ethical relativism,25S-262 ethical universalism,258 transformed into cultural norms,347 Ethical strategy business case for, 268-270 moral case fo! 268 Ethical universalism, 258 Elhics,257; see also Business ethics and benchmarking, 104 integrative social contract theory,262 Euro, 187 Excess supply, and strength ofrivalry, 52 Exchange rate fluctuations, effect on Kraft Foods, C-294 Exchange rates adverse shifts in, 185-187

unpredictabiliry

187

and weak dollar, 186-187

Execution-critical activities, 319-320 Exit effect ofindustry growth rate, 65 industrydriving force,66 Exit barriers, high,52 Experience and centralized locations, 198 from entering foreign markets, 180 taking advantage of, 124

l-32

Subject Index

Expertise

Financial rncentives competitively valuable, 8 incentive compensation, 335 diverse kinds of, 167 perks and fringe benefits, 331 transferring, 222 Financial management, Herman Miller transfer to cross-border markets, 209 C-340-C-342 Export strategies, 188-189 Financial objectives External analysis; see Macro-environment balanced scorecard for, 29 External environment,45 definition,23 External fit, 12 short- vs. long-term,28 External threats, 96 types of, 28 Financial performance Apple Inc. 2007-2011, C-181,

price-to-earnings ratio, g5

profitability ratios, 83-84

Inc.,

C-189 Applelnc.20l2,C-197 Bayonne Packaging, Inc., C-361 Face-to-face contacts,359-360 Blt Wholesale Club, C-24 Facilities tours, 359-360 Chipotle Mexican Grill, C- I 15-C- 16 Factor conditions, and national competitive Coach Inc., C-75-C-76 advantage, 181 Costco Wholesale, C-8-C-9 Factory stores, Coach Inc., C-81 Eastman Kodak, C-219 Fair trade industry Equal Exchange, C-156-C-158 basic principles, C-160-C-l6l evaluation of, for Thanksgiving Coffee, competition in, C-163-C-164 C-I64 Equal Exchange in, C-148-C-160, Frog's Leap Winery, C-402-C-403 C-163-C-166 Google Inc., C-176 Fair Trade Labeling Organization, C-151 Henkel AG, C-347 food and beverage products, Herman Miller Inc., C-343 C-l6l-C-162 Kraft Foods 2007 2011, C 288-C-289 history of, C-161 Kraft Foods 2012,C-299 labels, C-162 Kraft Foods business units, newproducts added, C-162 C-294-C-296 numberofproductsoffered,C-161 KrugerNationalPark,C-370 social agenda, C-160 lagging indicators,ZS-2g validationsystem,C-I62-C-163 leadingindicators,29 Family work environment, 332 lululemon Athletica, C-6I-C-62 Fannie Mae, failure ofcorporate governance, Microsoft 2007-2011, C-184 39-40 Mystic Monk Coffee, C-5 Farmers, exploitation oi C-151-C-153 Netflix after strategy shift, C-130 Fast-casual restaurants Nucor Corporation,C-223 listing of, C 100-C- 102 Panera Bread Company 2002-20 1, C-98 Panera Bread company, C-96*C-1 10 Panera Bread Cornpany in 2012, C-ll3 FastCompany, C-335, C-342 Sam's Club, C-22 Faulty oversight, 264 Sift Cupcake and Dessert Bar, C-35, C-39 Federal Communications Commission Starbucks 2007 -2}ll, C-306 Google fined by, C-186 Starbucks in 2012, C-330 and net neutrality, C-182 C-183, C-186 State Fair ofvirginia, Inc., C-206-C-207 Tata Group, C-246 Financial accounting, oversight of, 37 Tiffany & Company, C-86-C-87 Financial crisis of2008,96, 230 effects of Walt Disney Company, C 273, on Henkel AG, C-348 C-275-C-276 wine industry2002-2010, C-393 onjewelryindustry, C-89-C-90 Yahoo!, C- 185 on luxury goods market, C-77 Financial ratios on Panera Bread Company, C-96 activity ratios, 85-86 on PC industry, C-I92 California wineries, C-403 on Starbucks, C-305 dividend payout ratio, 86 on State Fair ofVirginia, Inc., dividend yield on common stock, 85 C-205-C-206 free cash flow, 86 on steel industry, C-242 internal cash flows, 86 on Tiffany & Company, C-86 leverage ratios, 84-85 subprime loans,264 liquidity ratios, 84 Financial goals, Henkel AG, C-346-C-349 f I

1

1

Financial reporting, oversight oi 37 Financial resources allocation in diversified companies, 244-245 cross-border allocation, 230 Financial resources fit cash cows,242 cash hogs, 242-243 and companlwide performance targets,243 credit rating,243 in diversified companies,243 internal capital market,242

portfolio approach, 242 Financial services, mergers and acquisitions 1n,247

Firm size,74 Firm strategy, structure, and rivalry, and national competitive advantage, I83 First-nover advantages at Amazon.com, 157

conditions favoring learning curve effects, 156 property rights protection, 156 reputation and brand loyalty, 155 setting technical standards, 156 switching costs, 156

definition, 155 prosandcons,157-158 risks and benefits, 155

Fittest,

12

Five forces model of competition; see a/so

Competitive forces and competitively unattractive

industry, 63

definition,49 and good profitability, 63 64 illustrated, 50 and industry attractiveness, 63

and outlook for profitability, 75 steps in using, 49 on strategic group map, 70-71 Fixed costs, and strength ofrivalry, 52 Flat structure, 304 Focused differentiation strategies

definition,

122

distinguishing features, 142-143 examples, 136-137 at Popchips, 138 risks, 139-140 when most attractive, 139 Focused low-cost strategies

Aravind

Eye Care System, 137

avenues to achieving,

definition,

1

36

122

distinguishing featvres, 142-143 examples, 136 versus low-cost provider strategies, 136

Subject risks, 139-140 when most attractive, Focused strategies,

examples,

139

8

compared to other strategies,

definition, 122 differentiation, 136-138 examples,

164

supply chain management in,

Globalbrand names,

165

Franchising 135-136

136

low-cost, 136 matched by rivals, 139 risks, 139 and shift in consumer preferences, 139 too many competitors, 139-140 when most attractive, 139 Food and Drug Administration, C-365 Foreign Corrupt Practices Act, 261, C-19 Foreign marketst see also International

expansion developing countries competing in, 204-207 strategies for local companies, 207 -209 economic risks, 185 factors in strategy-making for cultural differences, 187-188 demographic differences, 187-188 and diamond ofnational competitive

C-63 Company company support, C-108

lululemon Athletica, Panera Bread

contribution to advertising, C-106 criteria for consideration, C-I07 initial investment, C-107 number offranchise groups, C-108 operating standards, C-108 profitability,

C-108

7-Eleven Stores operations, C-257-C-258

in Taiwan,

C-261-C-272

rvorldwide locations, C-256 Franchising strategies examples,

190

problems with, 190 Freddie Mac, failure of corporate

39-40 flow,86

governance, Free cash

Index

Freedom oflnformation Act, C-186 Free trade industry lack ofconsumer awareness, C-153 advantage, 181-183 price comparisons, C-152 effect ofeconomic conditions, 185 Fringe benefits, 331 impact of government policy, 184-185 at Costco Wholesale, C-16-C-17 locating value chain activities, 183-184 Herman Miller Inc., C-340 nlarket conditions, 187-188 at Starbucks, C-323 risk ofexchange rate shifts, 185-187 Full-capacity operations, 124 political risks, 184-185 Full integration, 162 and profit sanctuaries, 201-204 Full-price stores, Coach Inc., C-80-C-81 reasons for entering Functional-area strategies access to resources and capabilities, 180 definition,34 exploit core competencies, 180 responsibility for, 33 lower costs, 180 Functional-area strategy, 82 new customers, 179 Functional structure, 304-305 Fundraising, Equal Exchange, C 156 spread business risk, 180 Fundraising consultants strategies for entering acquisition ofsubsidiaries, 190 for State Fair ofVirginia, C-206

I-33 195

Globalization changing competitive landscape, 179

industry driving force,65-66 Globaily competitive markets, 52 Global positioning systerns, 330 Global strategy advantages and disadvantages, 197 benefits ofstandardization, 196

definition,

195

drawbacks, 196 at Ford Motor Company, 196 global brand names, 195 research and development costs, 196 think global, act global approach, 195-196 value chain activities, 195 Gold price increases, C-89-C-90 segment of jewelry industry, C-90 Good Morning America, C-95 Government investigation ofinside

trading,264 Government policy as barrier to entry, 55 impact on foreign-market entry, 184-185 impact on industry practices,6T Government regulation ofcoal mining, C-388 Granholm v. Hesld, C-405 Great Depression, Herman Miller Inc. during, C-332-C-333 Great Recession, 754; see also Financial crisis

of2008 Greed,264 Greed-driven cultures, 353-354 Greenfield ventures conditions for appeal of, 190

definition, 189 problems with, 190 Gross domestic product

lndiain2012,C-248

188-189 not for-profit sector percentage, C-200 franchising, 189 Gross profit margin ratio, 83 greenfield-ventures,189-190 G Growth joint ventures, 190-193 Chipotle Mexican Grill, C-i 14 goals at Starbucks, C-330 licensing, i89 Generalized resources and capabilities strategic alliances, 190-193 ignored in related diversific^tton,222-223 limited opportunities,216 Foreign subsidiarystrategies tlpes o{ 229-Z3O lululemon Athletica, C-59 national, by Starbucks, C-311 acquisitions, 190 in unrelated diversification, 228-229 greenfield ventures, 189-190 Panera Bread Company, C-97 Generally accepted accounting principles, 37 potential in developing markets, 181 Fort Bragg Army Garrison, 29 Generic competitive strategies profitable, 232 Fortune, C-322, C-334, C-339 best-cost provider strategies, 122, 140 14\ prospects for Tata Motors, C-254-C-255 Forward channel allies broad differentiation strategies, 12i, reason for unrelated diversification,232 129-135 value chain, 105-106 at Under Armour after 2000, C-43-C-44 distinguishing features, 142-143 in value chain, 102 Growth rate, long-term changes, 65 Forward integration focused strategies, I22, I39-I40 lorv-cost provider strategies, l2I, L22-I29 Growth strategy competition against distribution at Costco Wholesale, C-I2-C-13 resource-based, 143-144 allies, 164 lululemon Athletica definition, 162 Geographical coverage, from mergers and broaden product appeal, C-6I to enhance competitiveness, 163-164 acquisitions, 160 exporting,

r-34

Subject Index

Growth strategy-Cort

international expansion, C-61 new product technologies, C-61 new stores in North America, C-60 raise brand awareness, C-60-C-61 Panera Bread Company, C-102 Sift Cupcake and Dessert Bar business plan for, C-37-C-47

Image,87,88 Imitation and differentiation strategies, 134-135 difficult for resources, 9l Immediate industry and competitive environment,4T

Immigrant labor, Frog's Leap Winery, C-40I Impact Databank, Review, and Forecast of the Wine Industry, C-405

options 201 1-20I3, C-40 at Under Armour, C-46

Implied social co ntr acl, 27 8 -27 9 Imports of steel into U.S., C-243,C-244

Guerri-lla warfare tactics, 151

Inc. Magazine, 192

H Health care coverage, at Starbucks, C-32i High-cost advantage, reallocating, 105 High-performance culture, 35 I High-powered incentives, 33 I

Hiring policy at Chipotle Mexican Grill, C-120 at Costco Wholesale, C-18

Equal Exchange, C-154 by Sift Cupcake and Dessert Bar, C-37 Hit-and-run tactics, l5l Home Show C-333 Horizontal merger and acquisition strategies, ses also Mergers and acquisitions Bristol-Myers Squibb, 161

definition,159 Nucor Corporation,

C - 228 - C - 23

I

objectives,159-160 reasons for failure, 16l-162 Starbucks, C-3 17-C-318 Walt Disney Comp any, C-27 5,

c-276,C-277 Horizontal scope, 159 Host countries economic risks, 185 political risks, 184-185 Households, disposable income in India, C-251 Housing price bubble, 264 Human assets, 87, 88 Human resource management

in differentiation strategies,

131

Equal Exchangc, C- 1 54 Herman Miller Inc., C-339-C-340 Nucor Corporation, C -23 8-C -240 at Sift Cupcake and Dessert Bar,

c-36-C-37 Human resources, 87,88 I I

i.Cash cards, C-266 Illegal activity Massey Energy Corporation,

c-389-C-391 poaching rhinos, C-382-C-383

Incentive compensation, 335 Incentive plans, 125: see also Reward systems acting on ideas from employees, 332 awards and public recognition, 332 financial,331 to focus attention on objectives, 331 high-powered, 33 I information sharing, 332 inspirational strategic vision, 332 Nucor Corporation, 336 bonus plan, C-237 department manager incentive pian, c_237 401(k) plans, C-238 production inventive plan, C-237 profit sharing, c-238 senior officer incentive plan, C-237

promotion from within, 332 work atmosphere, 332 work environment, 332 Incentive systems, 87, 88 Income statement Bayonne Packaging, Inc., C-361 Coach Inc., C-75 Costco Wholesale, C-8-C-9 Equal Exchange, C-158, C-f64 Frogt Leap Win ery, C-402 Kraft Foods 2012, C-297-C-298 President Chain Stores, C-269 Starbucks 2007-2071, C-306 Tata Motors, C- 248-C-249 Thanksgiving Coffee, C-164 Under Armour, C-45 Incompatible subcultures, 354 Independent actions, 321

India all-in-one business machine, 207 automobile industry domestic sales 2006-20ll, C-251 dominant firms, C-250 evolution 1990-2012, C-250-C-251 fuel prices, C-251 highway projects, C-25 I increased demand, C-251 urban population, C-250 demand for luxury goods, C-78 distribution channels, 181 information technology firms in, 208

macroeconomic conditions demographics, C-248 disposable income,

C-2il.

education, C-250 inflation, C-250

political corruption, C-250 projected growth, C-250 recovery from recession,

c-248-C-250 middle class income, C-252 Indianapolis 500 race, C-86 Industries attractive, 63 blue-ocean strategy, 152-154 competitively unattractive, 63 convergence of, 160

deciding on means ofentry,215 life cycle of strategy, 8 long-term growth rate changes, 65 regulated, 55

Industry analysis external environment, 45 immediate competitive environment, 47 internal environment, 45 key success factors, 7 3-7 5 macroeconomic factors, 46-48 outlook for profitabiliry 75 strategic group mapping, 69 -7 I Industry and competitive environment assessing,48-49 buyer bargaining power, 60-63 components,4T price sensitivity, 60-63

profitabiliry 63-64 sellers of substitutes, 56-58

strength of competitive forces, 49*53 supplier bargaining power, 58-60 threat of new entrants, 54-56

Industry attractiveness,

75

evaluating calculating quantitative scores, 234-235

interpreting scores,

235

-237

indicators,235 nine-cell matrix for strength of,239-240

Industry attractiveness scores calculating, 234-235 cross-industry st r ategic t:J, 235 and intensity of competition, 237 interpreting, 235-237 matching resource requirements, 235 measures, 235

weighted,236

Industry attractiveness test for diversification, 217 for unrelated diversification, 228 Industry clusters, 182 Industry concentration, and supplier bargaining power, 60 Industry consolidation, steel indrstry, C-242

Subiect Industry driving

forces

adjusting strategy for, 68 assessing impact of,68 buyer demographics, 65-66 changes in cost efficiency, 66

Inkjet printer industry competition, Innovation, 134

C-218

Index

I-35

Internally performed value chain activities, 105

weapon,53 Internal Revenue Code hindered by Six Sigma,325 and not-for-profit organizations, industry driving force, 66 C-199-C-200 changes societal concerns,6T 7-Eleven Stores, C-264-C-268 and State Fair ofVirginia, Inc.,C-201 concept of,64 striving for, 13I Internal Revenue Service, and not-for-profit diffusion oftechnical know-how, 66 Innovator\ Dilemi?d (Christensen),C-342 organizations, C-200 entry or exit ofmajor firms, 65 Inputs Internal universities,2gg globalization,65 access in foreign markets, i83-184 International editions oftextbooks, C-29 innovation,65 differentiation,60 International expansion; see also Developing Internet,65 high-quality, I31 countries; Foreign markets long-term growth rate changes,65 67 lower-cost, 125 Coach Inc., C-81-C 82 most common,67 Inside directors, 37 by Costco Wholesale, C-6 reductions in uncertainty and business Inside trading,264 Henkel AG, C-346 risk, 66 Insular cultures, 353 Herman Miller Inc., C-333 regulatory influences,67 Intangible assets Kraft Foods, C-290 on strategic group map, 7l brands, 88 lululemon Athletica, C-59, C-60 technological changes,65 companyculture,83 Netflix, C-130, C-I45-C,146 Industry environment, DVD business company image,88 7-Eleven Stores, C-256, C-259 competitive intensity, C-134-C-136 definition,87 suppliers, 180 distribution channels, C-132-C- 133 human assets, 88 Tata Motors, C-247, C-252 enabling technologies, C-130-C-132 incentive systems,88 Under Armour, C-50-C-51 initiatives to promote streaming, intellectual capital, 88 via joint venture by Nucor, C-232-C-233, C-133-C-134 relationships,88 C-234 major players, C-133-C-134 Intangible costs of ethical wrongdoing, 269 Walt Disney Company,C-278 shorter studio release times, C-133 Intangible features, 133 International Labor Organization,260 trends in home viewing, C-133-C-134 Integrative social contract theory International Standards Organization,2T2 Industry leadership, in global terms, 179 and bribery and kickbacks, 262 International strategy Industry opportunity, 94 and major religions, 262 advantages ofapproaches, 197 Industry position precedence ofuniversal norms, 262 definition, 193 Coach Inc., C-79 to resolve cross-country oflocal companies in developing Herman Miller Inc., C-332 differences,262 markets,209 Nucor Corporation, C-220-C-221 between universalism and relativism, 262 Netflix, C-130, C-145-C-146 Tata Motors, C-246 Intellectual capital, 87, 88 Nucor Corporatlon, C-232- C-233 Inflation, in India, C-148-C-250 Intellectualproperty options Information, and buyer bargaining power, 6l global strategy, 195-196 first-mover advantage, 156 Information sharing,332 held by Eastman Kodak, C-219 muitidomestic strategy, 193-195 in strategic alliances, l7i Interfaith program, Equal Exchange, C-156 transnational str^tegy, 196-197 Information systems Internal administrative costs ofethical 7-Eleven Stores,C-261-C-272 areas covered by, 329 wrongdoing, 269 Starbucks, C-314-C-316, C-330 better strategy execution, 329 Internal analysis Walt Disney Company, C-273, C-278, company examples, 328-329 C-280-C-28 I competitive strength of rivals, 08- I I electronic scorecards,330 International trade cost structure,9T-108 performance tracking, 325 customervalue proposition, 97-108 and adverse exchange rate real-time,330 present strategy,8l-86 shifts, i85-187 Information technology, 125 resource and capability analysis, 86-92 effect ofweak dollar, 186-187 in India, 208 strategic issues and problems, I t 1 unfair practices, C-229 Internet Infrastructure, and national competitive SWOT analysis, 92-97 advantage, 181 Internal capital market, 230 consumer information from, 61 industry driving force,65 Inimitability definition,242 and differentiation strategies, 733-134 Internal cash flow,86 net neutrality, C-182-C-183, C-186 Interstate commerce, C-405 ofresources,9o Internal costs, 101 Inventory management Initial public offering Internal development, 219 Coach Inc., C-79-C-80 Chipotle Mexican Grill, C-l15 Internal development of capabilities Dutch auction by Google, C-169-C- 171 lululemon Athletica, C-64-C-65 fine-tuning,297 Herman Miller Inc., C-333 incremental and complex process, 296 Under Armour, C-52 Inventory turnover, 85 by Kraft Foods, C-289-C 290 managerial acIions,2g7 Internal environment, 45 Investment, in Equal Exchange, lululemon Athletica, C-60 Internal fit, 12 C-158-C-160 by Under Armour, C-44 as competitive

1

1

l-36

Subject Index

Investment Development Authority, County Caroline, Ya.,C-203,C-204 Investment fraud

branding capabilities, T4 clever advertising, 74

265 Stanford Financial Group,265 Investment opportunities, 215 Inwardly-focused cultures, 353 ISO 9000 standards, C-232 ISO 9001 standards, l3l ISo I 4000 standards, C-232 ISO 26000 standards,272 Italy, engine technological district, i82

full capacity utilizat\on,7

definition,

Madoff Securities,

73 4

importance for competitive

success,

73-74 network ofdistributors, 74 for strategy-making,74-75 superior differentiation, 74 variation by industry, 74

Kickbacks

in,260 ofethics,26l

areas predominant

and codes

and Foreign Corrupt Practices Act,26I issue for multinational corporations,

\)I C-81-C-82 /CKmagazine, C-88 fewelryindustry competition from non jewelry outlets, C-90 competitors in, C-91-C-94 decreasing number offirms, C-90 diamond segment, C-87-C-S9 effects offinancial crisis of2008, C-89-C-90 expected increase in outlets, C-90 gold price increases, C-89-C-90 sales by major retarlers, C-95 Tiffany & Company, C-84-C-87 wage cuts, C-90 Joint ventures to access capabilities,299 definition, 169 diversification by,219 drawbacks, 219 to enter foreign markets economies ofscale from, 19i gains in technical expertise, 191 risks, l9l-193 shared distribution networks, l9l wide use of, 190 examples, 169 to gain access to resources and capabilities, 180 host-government ownership requirements, 219 Japan, Coach Inc.

in,

Nucor Corporation,C-232-C-233,C-234 Nucor-Yamato, C225-C-226 Starbucks, C-316-C-317, C-318-C-319 Tata Motors, C-247 , C-248 transaction and coordination costs,22l Just-in-time systems,

124

Ll K factors about,74 in beer industry, T4

Key success

basic questions

260-26l of,261 Knowledge-based capabilities,83 Knowledge diffusion,66 KSF; see Key success factors persistence

I lLabor, underage,260 Labor costs

in

China,208

Licensing strategies, 189 Lifestyle changes,6T Lifestyles ofHealth and Sustainability, C-395 Line-and-staff structure, 304 Liquidity ratios, 84 Litigation by Tiffany against eBay, C-88 Loans

from Small Business Administration, C-33 to State Farr ofMrginia, Inc.,C-204 Lobbying by Google Inc., C- I 86 Local companies vs. multinational corporations in developing countries, 207-209 Local markets, changes in developing countries,206 Local-regional firms, 152 Location, see also Stores advantageous value chain activities,

183

184

Chipotle Mexican Grill, C-121-C-123 for competitive advantage concentration, 198-199 aispersal, 199 industry clusters, 182 Panera Bread Company, C I08 C'109 7-Eleven Stores in Taiwan, C 261 C-264 in United States, C-257 Starbucks stores, C-315 Logistics, 7-Eleven Stores, C-268 Long-term debt-to-capital ratio, 84 Long-term debt-to equity ratio, 85 Long-term objectives, 28 Lowballing on prices, 151 Low-cost leadership achieving, 122 123 Costco Wholesale, C 9-C-12 Low-cost production, at Nucor Corporation,

country differences, 65 in low-wage countries, 183 in steel industry, 336 Labor force oflocal companies in developing countries, 207-208 Lagging indicators,2t-Z9 Late-mover advantages, 157 Late-mover disadvantages, 155-156 Latin America, strategic alliances in, 183 Leadership of strategy execution, 358-362 making corrective adjustments, 361-362 management by walking around, 359-360 C 232 mobilizing for excellence,360-361 Lorv-cost provider, T top-down process, 359 Low-cost provider strategies Leadership path,294 avenues for achieving Leadership skills, 38 cost-efficient value chain management, 123-125 Leading by example, 357 value chain revamping, 125-127 Leading indicators,29 and centralized production, 198 Lean manufacturing, Herman Miller Inc., cost drivers, 123,124 C-338-C-339 customized for company situation, 288 Leapfrogging competitors, 151 Leapfrog technological innovation,C-232 definition, l2I in developing countries, 205 Learning curve effects, 124 distinguishing features, 142-143 first-mover advantage, I 56 driving dorvn costs, 124 l,earning effects, and centralized locations, versus focused low-cost strategies, 136 198 Learning process, in strategic alliances, l7l keys to success, 128 low-cost leadership,122-123 LEED-certified wine, C-401 options Legal forces,48 maintain present price, I23 Leverage ratios,84-85 Licensing

agreements

ofproducts by Under Armour, Starbucks, C-314,

C-315

C-50

underpricing, pitfalls, 129

123

when most competitive, 128

Subject Index at Equal Exchange, C-149 Nucor Corporat ion, C -22I - C -222 Management development at Procter

Lower prices, 150-151 Luxury goods market aggressive competition, C-73 Coach Inc. in, C-73-C-83 consumer spendingin 2011, C-77 counterfeiting problem, C-78 demand in emerging markets, C-78 diamond industry, C-87-C-89 in financial crisis of 2008, C-77 leading brands, C-77 main categories, C-77 main competitors, C-77 market shares, C-73 sales, C-73 Tiffany & Company in, C-84-C-87,

Managers basic tasks for strategy execution

in big companies, 290 necessary internal changes, 288-289

in small companies, 290 capturing benefits of process management tools,327 -328 critical mass of talent, 293 with high ethical principles, 268 in high-performance culture, 351 motives for unrelated diversification, 232-233 strategy execution skills, 287-288 Managing by the numbers, 321 Manufacturing advantageous value chain locations,

c-9r-c-9s U.S. jewelry industry,

C-89-C-91

variety ofproducts in., C-90-C-91

M Macro-environment competitive environment, 48-64 competitor analysis, 71-73 components of,47

183

disruptive change in, 36 economic conditions, 46, 48 environmental forces, 46-48 industry driving forces, 64-68 key success factors, 73-7 5 legal and regulatory factors, 46-48

125

Market(s), expansion by Starbucks, C-3 Market capilalization, Apple Inc. in

market position of rivals,68-71 outlook for profitability, 75

2012,

PESTEL analysis, 46

1

I

c-r87

Market conditions, in foreign markets,

political factors, 46, 48 sociocultural forces, 46, 48 strategically relevant factors in, 46 48 technological factors, 46-48 Management at Chipotle Mexican Grill, C-l 19 C-120 choices in how to compete, 4 crafthg and executing strategy, 13

dynamic,9T-92 at Equal Exchange, C-150-C-151

fiduciary du!l,257 Frog's Leap Winery, C-399-C-400

Herman Miller Inc., C-336-C-337

lululemon Athletica, C-61 1

I

time demands by subsidiaries, 231-232 at Under Armour, C-44 Management by walking around, 359-360 Bavonne Packaging, Inc., C-360-C-368 Costco Wholesale, C-6 Management change at Apple Inc., C-188, C-189 at Eastman Kodak, C-217

184

China as capital ol 183 cross-border coordination, 20 I global, by Tata Motors, C-246 Herman Miller Inc., C-338-C-339 outsourced by lululemon Athletica, C-68 strategic fitin,225 Manufacturing execution systems software,

definition,46

at Starbucks, C-329 -C-330 strategy issues meriting attention, I

&

Gamble,294 Management information systems, Panera Bread Company, C-1 10-C-l I I Management teams, 292-293 Costco Wholesale, C-18

187- 188

Marketing Chipotle Mexican Grill, C- 120-C- I 2 r community-based at lululemon Athletica,

c-68 emphasis on, 131 by Equal Exchange advertising, C-I55 fundraising, C-156 interfaith program, C-156 product variety, C-156 Herman Miller Inc., C-338 Panera Bread Company, C-105-C-106 strategic fit in, 225 -226 Marketing innovations, industry driving force, 66

Marketing research Coach Inc., C-74 Panera Bread Company, C-105-C-106

Marketing strategy,

34

Bl's Wholesaie Club, C-25

Costco Wholesale, C- 13 -C- 14 Mystic Monk Coffee, C-5

I-37

Sift Cupcake and Dessert Bar, C'35-C-36 by Under Armour advertising and promotion, C-50 retail marketing, C-49-C- 50 sports marketing, C- 47 -C- 49 Marketing vice president, role in strategy-

making,3l Market leaders global vs. domestic, 179 r,ulnerable, 152 Market niche, 8 Market niche strategies; see Focused strategies

Market opportunity, 94 Market penetration curve, I 58 Market position Costco Wholesale, C-6 defensive strategies to protect, 1 54- 1 58 dominating depth, 200-20 I Google Inc., C-168 Kraft Foods, C-294 in multidomestic strategy, 193-194 offensive strategies to improve, 150-158 of rivals, 68-7 I strengthening by mergers and acquisitions, 159-162 by outsourcing, 66- l 68 by scope of operations, 1 58 by strategic alliances, 168-174 vertical integration strategies, 1,62-166 Market share ofbig box stores, C-94 browser market, C-I82 Coach Inc., C-73 from continuous innovation, 151 decline for department stores, C-82 effect of used books on publishers, C-28 Google Inc. browser market, C-182 search engine market, C-183 1

smartphones, C-I81 from guerrilla tactics, 151 leading PC vendors, C-l9l relative to rivals, 237 in search engine market, C-183 7-Eleven Stores, C 267-C-268 smartphones, C-l8l smartphone vendors, C-196 Market size, factors dictating, 181 Market space in blue-ocean strategy, 152-154 types of, 152 Markup, at Costco Wholesale, C-10 Matching costs, 133-134 Materials handling, reducing, 126 Matrix structure, 306 -307 Membership Bf 's Wholesale Club, C-24-C-25 at Costco Wholesale base, C-15-C-16

I-38

Subject Index

Membership-Con

r.

demographics, C- 15-C- 16 size of, C-6 Sam's Club, C-21 Merger, 159 Mergers and acquisitions; see also Acquisitions acquiring capabilities through

difficulty,

397

-298

occasions for, 397

expanding horizontal scope, 1 59 in financial services, 247 horizontal, 159-762 by local companies in developing countries,209 objectives

Monitoring employee performance, 330-33 Moral case for corporate social responsibility, 27 8-279 Motivational practices; see Incentives Motivational techniques, 36 1 Motivation of employees, 125 Movie industry decline in profitability, C-217 DVD rental business, C-130-C-136 shift to digital technology, C-217 trends in home viewing, C-133-C-134 use of Kodak film, C-217 Walt Disney Company in, C-273-C-274,

c-28r-C-282 Multidivisional structure, 305-306 Multidomestic strategy

complementary resources/capabilities,

advantages and disadvantages, 197

160

cost efficiency, 159-160 geographic coverage, 160 leading industry convergence, 160 new product categories, 160 new technologies, I60 reasons for failure, I6I-162 versus strategic alliances, 168, 17Z

M-forms,305 Mine Act of 1977, C-388 Mine Improvement and New Emergency Response Act, C^388

Mine Safety and Health Administration, c-388, C-390 Mission Equal Exchange, C-151 lululemon Athletlca, C-62 not-for-profit sector, C-200 State Fair ofVirginia, Inc., C-200-C-20I

definition,

193

drawbacks, i95 strengths, 193-194 think local, act local approach, t-94-195 Multinational corporations problem ofbribery and kickbacks,

260-26r problem ofethical relations,

261

strategies for local companies against

acquisitions, 208*209 business model,207

knowledge of local workforce, 207_208 rapid-growth strategy, 208-209 transfer of expertise, 209 understanding customers, 207 Multiplant operations, Herman Miller Inc.,

1

New product categories, from mergers and acquisitions, 160 New product launch Apple iPad, C- 192-C-193 Apple iPod, C- 188-C- 189 New textbook editions, C-28-C-29 easily updated as Ebooks, C-32 New venture development, 2 l9 New Yorker, C-220 New York Times, C-400 Next-generation products. I 5l Nicaragua, embargo in 1980s, C-149 Nine-cell industry attractiveness matrix, 239-240

No-layoffpolicy, 336 Nonfinancial resources fit guard against overtaxing resources, 244 matching resources and capabilities, 243-244 Nonprofit locations, Panera Bread Company, C-105 Non-substitutable resources, 9 1

Not-for-profit sector Chapter 1 1 bankruptcy option, C-200 Chapter 7 bankruptcy option, C-200 characteristics, C- 199-C-200 corporate governance, C-200 dissolution of, C-200 gaining tax-exempt status, C-199-C-200 mission, C-200 percentage ofGross domestic product, C-200

restriction on profit uses, C-200 State Fair ofVirginia, Inc., C,198-C-210

c-333-C-334 Mutual restraint, 203-204

Sustainable Winegrowing

Program, C-396 Under Armour, C. 45-C-46 Mission statement Costco Wholesale, C-9

definition,

24

N

Obama administration, C-182 Objectives, 19 20 balanced scorecard method, 29

Napa Valley wine industry, C-392-C-399

ofbenchmarking, 103 in competitor analysis, 72 conflict in strategic alliances, 19l-I92

and profit-making,25

NASDAQ, C-19 National Environmental Management Act, South Africa, C-370

Sift Cupcake and Dessert Bar, C-36

L\aturat resoufces, 275

definition,

Starbucks, C--324, C-325

Net income, Coach Inc., C-73 Net neutrality, C- 182-C-183, C- I86 Net profit margin, 83 Net return on sales, 83 Net return on total assets, 83 Net sales, byApple Inc.2009-2011, C-190 Network effects, as barrier to entry, 54 Network structure, 310 New customers, in foreign markets, 179 Neu'entrants and Darners to entry, 54-55 as competitive threat, 54 defenses by incumbents, 54 factors affecting threat of, 56 and strength of rivalry, 5 1

for every organizational level, 29 30

examples,24-25

Zappos.com,26-27 Mobile phone use, 158 Mobihzing for excellence celebrating success, 361 compensation incentlves, 36 1 and consequences for poor performance, 361 empowerment,360 focus on strategic objectives, 360 fostering esprit de corps, 360 motivational techniques, 36 I treating employees as partners, 360 using process management tools, 360 Monitoring developments, 1 9-20

deadlines

in,27 27

examples, 30

quantifiable and measurable, 27 in strategic plan, 35 stretch, 28

top-down process, 30 as yardsticks, 27 Offensive strategy options blue-ocean strategy, 152 - I54 choosing basis for attack, 150-152 choosing rivals to attack, 152 principles, 150 timing of, 155-158

first-mover advantages, I 55fi

rst-mover disadvantages,

1

1

56

56

Subiect Index Iate-mover advantages, 156 pros and cons for first movers, 15,/- 158 Office furniture industry effect of recession, C-344 Herman Miller Inc. in, C-330-C-344 need for ergonomically correct function, C-344 and telecommuting trend, C-344 Office oI Federal Housing Enterprise Oversight, 39 One-business company, strategy-making

in,215 Online sales consumer products, C-26 Costco Wholesale, C- 14-C- l5 of diamonds, C-88 International editions of textbooks, C-29 lululemon Athletica, C-64 new textbook editions, C-28-C-29 Online systems, 328 Online training courses, 65, 299 Online virtual textbooks e1'fect on publisher-professor relations,

c-27 McGraw-Hill Connect, C-27 McGraw-Hill LearnSmart, C-27 Pearson mylab, C-27 On-the-job training, at Procter & Gamble,294 On-the-scene managers, 32 Operating budget, 318 Operating expenses Mystic Monk Coffee, C-5

Netflix, C-131 Panera Bread Company, C-99 Operating profit, 83 Operating strategies

definition,34 responsibility for, 33 Operating systems better strategy execution, 329 company examples, 328-329 performance tracking, 325 Operation Perfect Hedge, 264 Operations Bayonne Packaging, Inc., C-364-C-366 Chipotle Mexican Grill, C- 1 16-C- I 19 at Eastman Kodak, C-216-C-217 ethical principles in, 27 0 full-capacity, 124 Mystic Monk Coffee, C-4 Sams Club, C-21- C'22 scope narrowed by outsourcing, 166-168 at Starbucks, C-327 State Fair ofVirginia, Inc., C-201 streamlining, 126 Organic foods, C-1I8 Organizational learning, 35-37 Organizational levels, objectives for all,

29-30

Organizational structure

detlnltlon.

J(Jz

delegation of authority centralized decision making, 307-308 decentralized decision making, 308-310 designing, 302-303 Eastman Kodak, C-217 Equal Exchange, C-149, C-154

facilitating collaboration,

3

1

-302

Paper packaging industry Bayonne Packaging in, C-359-C-368

matched to strategy collaboration, 3 l0 delegation of authority, 307-3 l0 outsourcing value chain activities, 1

matrix, 306-307 multidivisional, 305-306 network structure, 310 Nucor Corporation, C -23 6 -C-237 Robin Hood, case, C-300 simple,304 strategy-supportive, 291 for structuring work effort, 3 1 0-3 I I Organizational units reallocation of operating funds, 3 l8 resource distribution across, 318

Organization for Economic Cooperation and Development, anti-bribery

standards,26l Organizations ambidextrous, 325 key actions for strategy execution,

290-292 capturing resources and capabilities,

)ot )o) staffing, 291-292 29

1

Patent protection, 156 Patents held by Eastman Kodak, C-219 Peer-based control, 330-331 Penalties for wrongdoing, 269 Per capita Gross domestic product, India

in

2012, C-248

Performance of collection of businesses, 2 l6 of substitutes, 58 Performance evaluation, l9-20 of strategy execulion, 36-37 Performance expectations, in highperformance culture, 351 Performance indicators, 12 Performance management, Henkel AG development roundtable, C-352-C-353 evaluation grid, C-352 frame of orientation, C-353 Performance measurement, by balanced Performance metrics, 3 Performance monitoring, 330-33 Performance targets, 28

st^ffing,292-295 Orientation sessions, 299 Outside directors, 37

I

companl.'r,vide, 243

105

Starbucks, C-330

to access capabilities, 299 by Apple, Inc., 303 by Coach Inc., C-79 cost advantages, 125

definiiion, 166-167 versus internal performance, 300-302 ofless important activities, 302

Performance test, l2 Performance tracking, 329 -33 I Perks,331 Personal computer industry competitive position of Apple, C-192 competitors for Apple Inc.,

c-r93-C t94

by lululemon Athletica, C-68 reasons for access to diversified expertise,

growth 1980s- 1990s, C-359 Parenting advantage, 23 I Parenting capabilities, 229 -230 Partial integration, 162 Partnerships to add capabilities, 302 facilitating collaboration with, 310 in stralegic alliances, I7l

scorecard, 29

value chain activities, 291

outsourcing,

30

by Under Armour, C-51-C-52 Overspending, 135

D I

Kraft Foods, C-287

structuring work effort,

risks on, L67-168 and scope of the firm, 159 streamlining internal operations by,

I0

functional, 304-305

300-30

l-39

effects of recession, C- 192

I67

activity crucial to comPetitive advantage, 167

concentration on core business, 167 outside specialists, 167 reduces risk exposure, 167 speeds time to market, 167

market shares ofleading vendors, C-I9l overview of, C-790-C-192 Personal gain, pursuit of, 264 PESTEL,46,48,75 Piece-rate incentive plan, 336 Planet, in triple bottom line, 274 Plant closings, Henkel AG, C-349-C-350

I-40

Subject Index

Plant construction, by Nucor Corporation,

c-23r-C

232

Poaching, C-382-C,383 Policies to facilitate strategy execution, 319-321 Political forces, 48 Political risks, 184-i85 Politicized cultures, 353 Ponzi schemes,265 Population, oflndia in 2012, C-249

Process management tools best practices, 32I 322 business process reengineering, 323-324

capturing benefits of managerial actions, 327 -328 specifying outcomes, 327 Six Sigma quality control, 324-326 total quality man agement, 324 Product(s) continuous innovation, 151 diverse uses, 134

with extra frills,

Price(s) basis ofcompetition in developing

countries, 205 and costs, 97-98 lowballing on, 151 151

of substitutes, 57 and supplier bargaining power, 60 in wine industry, C-394 Price competition, 128 Price-cutting, 52 Price-cutting offensive, I 50- 1 5 1 Price differences, 101 Price discounting, as competitive weapon, 53 Price premium, too high, 135 Price sensitivity, of buyers, 6t-62 Price-to-earnings ratio, 85 Price wars, 52

Pricing strategy Coach Inc., C-74 Costco Wholesale, C-9-C-10 Nucor Corporation, C-226-C-228 Tata Motors, C-252 Primary value chain activities, 98 101

service, 99

supply chain management, 99

Printing press industry, C-218 Private brands, at BJ's Wholesale Club, C-23 Proactive strategy, 8-9 change-resistant,

3

52

-3 53

changing

difficulqr,354 identifring obstacles, 354-355 making a case for change, 355-356 substantive actions, 356-357 symbolic actions, 357 time needed, 357-358 greed-driven, 353-354 incompatible subcultures, 354

135

intangible features, 133 market penetration curve, 158 new or improved features, 53 next-generation, 1 5 1 with superior features, 131 tailored for developing countries, 204 tangible features, 133 trivial improvements, 135 with upscale attributes, 140 Product attributes, ability to match rivals, 237

Product design Coach Inc., C 74 at Herman Miller Inc., C-333 lululemon Athletica, C-6-C 67 at Under Armour, C-5I Product development lululemon Athletica, C- 6-C-67 strategy, 34

operations, 99 sales and marketing, 99

Problem cultures

Loactl lnc.,

319-32I

Preemptive strike, 151 Pre-ordering, C,266 Prepaid phone cards, C-266 Pressure grottps,279

distribution,99 to identi$' cost structure components,

Bf's Wholesale Club, C-23

Procedures to facilitate strategy execution,

Portfolio appr o ach, 242 Poverty, and child labor, 260

lower,150

rnsular. J5.t

politicized,353

at Under Armour, C-51 Product differentiation, 128 Coach Inc., C-79-C-80 and rivalry, 5 I superior, T4 Product innovation, industry driving force,66

Production cross-border coordination, 20 1 Herman Miller Irc., C-338-C-339 outsourced by lululemon Athletica, C-68 outsourcing by CoachInc., C-79 Panera Bread Company, C-107-C-1 10 at Starbucks, C-327 Tata Motors, C-253 Production capacity, and strength of

rivaky,52

,/9

Google Inc.. C- 17 I -CHenkel AG, C-348

making,31

Apple's early releases, C-188 releases, C- 188-C- 1 89

t7 5

steel making, C-225 C-226 steel products, C -222 -C -225 Panera Bread Company, C-102-C-105 Samt Club, C-21

Under Armour accessories, C-47 apparel, C-46-C-47

footwear, C-47 Walt Disney Company,C-282-C 283 Product presentation, by Under Armour,

c-49-C,50 Product redesign, 105 Product versioning, 131

Profit Apple Inc. tn 2012, C-187 credit rating and decline in, 265 growth requirem enls, 228 and mission statements, 25 Nucor Corporation, C-22I in triple bottom line, 274 uses by not-for-profit sector, C-200

Profitability in developing co untr ies, 20 6 -207 in differentiation strategies, 130 eroded by overspending, 135 eroded by supplier bargaining power, 58 versus ethics, 266-268 and five-forces model of competition,

63-64 identifring threats to, 94-96 limited by buyer bargaining power, 60-61 outlook for, 75 problem in baclaarard integration, 163 relative to rivals,237 restaurant business, C-112

from strategic fit,226 Profitability ratios, 83-84 Profit formula definition, 10 Sirius XM vs. over-the-air 1 1

Profit margins component ofvalue chains, 100

in retailing,

Product licensing, by Under Armour, C-50 Product line Apple computers, C-192

1

Kraft Foods, C-289, C-29 I -C-292 lululemon Athle tica, C - 66 Nucor Corporation gradual expansion of, C-222

broadcasters,

Production technologies, 125 Production vice president, role in strategy-

Applet post-2000

(-

Costco Wholesale, C-10-C-1 Equal Exchange, C 156 Frog's Leap Winery, C 399

71

Profit potentiai on strategic group map, 70-71 Profit sanctuaries as competitive asset, 203 cross-market subsidization, 203

Subject to defend against rivaIs,203-204

definition,20l for domestic-only companies, 202 and dumping,203 examples, 201-202

for global companies, 202 for international companies, 202 to wage strategic offensive, 203 Profit sharing, Herman Miller Inc., C-339 Promotion BIt Wholesale Club, C-25 Under Armour, C-50 Promotion from within, 331 Herman Miller Inc., C-340 Property rights protection, first-mover advantage, 156

Proprietary know-how, problem in licensing strategies,189 Psychology of Achievement (Tracy), C-69 Public recognition, 331 Punishment and rewards, 332-334 Purchase, option to delay, 61 Purchasing power, from entering foreign markets, 180 Purchasing power parity India in 2012, C-248

Quality

continuous improvement, l3l of substitutes, 58 Quality assurance, Under Armour, C-51

Quality control Bayonne Packaging, Inc., C-360 business process reengineering, 323 -324 at Chipotle Mexican Grill, C-l19 at Nucor, C-232

processes, Six Sigma

l3l

programl 324-328

total quality man agement, 324 Quality of life, 272

R Radio, Walt Disney Company in,

c-278-C-280 Rapid-growth strategy, by local companies in developing countries, 208-209 Rare resources, 90 Raw materials strategy, Nucor Corporation,

c-233-C-235 Reactive strategy, 9 Reagan administration, C-149 Realized strategy, 9

Real-time information systems, 330 Rebranding, by Under Armour, C-44 Recession, effect on Herman Miller Inc., C-335

Recognition program, at Starbucks,

c,323-C-324

Index

l-41

dynamic management, 91-92

identifying capabilities, 88-89

identif ing resources, 86-88

Recruiting

VRIN tests for competitive advantage,

capable employees, 293-295 at Chipotle Mexican Grill, C-120 at Costco Wholesale, C-18 at Procter & Gamble, 294 Recycling program, Herman Miller Inc., C-337 Regulatory forces, 48 impact on industry practices, 67 Related and supporting industries, and national competitive advantage, 182 Related businesses, 221 Related diversifi cation, 217

combined with unrelated diversification, 233 competitive adv antage fr om, 226 cross-business collaboralion, 222 examples, 222-223 exploiting brand name recognition, 222 in multidivisional structure, 305-306 specialized resources and capabilities, 222-224 strategic fit, 221-222 along value chain, 224 -226 economies of scope, 226-227 leading to competitive advantage, 227 value chain actiities, 222 value chain match up,222 Walt Disney Company acquisitions, C-27 3, C-27 6,

c-276 c-277

r43-144 Resource bundles, S9 Resource

fit

definition,242 financial resources, 242-243 nonfinancial res ow ces, 243 -244 in related diversi fication, 242 in unrelated diversification, 242 Resource requirements, matching, 235 Resources accessed by mergers and acquisitions, 160

acquiring, developing, and strengthening, 295-299 allocation oi 318-319 causal ambiguity,90 competitive attack based on, 150 competitively more valuable, 87 competitively superior, 9l

definition,87 in diversification decision, 220 dynamic management, 91-92 gained in foreign markets, 180 generalized vs. specialized, 222-223

hard-to-copy, 90 intangible, 87-88

oflocal companies in developing markets,209

consumer produ cfs, C -282 - C -283 interactive medi a, C-283-C-284 media networks, C-27 8-C-280 parks and resorts, C-280-C-281 studio entertainm ent, C-28I -C-282 Related-unrelated diversification strategies, 232

Relationship managers, 310 Rental textbooks, C-28 Reporting stand ar ds, 27 2 Reputation and brand image, 237 damaged by wrongdoing, 268-269

first-mover advantage,

90-9r Resource-based competitive strategies,

155

tied to corporate social responsibiliry 279 Reputational assets, 87, 88 Research and development, 131, 309-310 in global strategy, 196 at Herman Miller Inc., C-342 locations in foreign markets, 184 strategic fit in, 225 Resource allocation to subsidiaries, 244 Resource and capability analysis, 107 assessing competitive power, 89-91 for best-cost provider strategies, 140

definition,86 for differentiation strategies,

133

reason for concentration oflocation, 199 related to value chain activities, 107 required in forward integration, I65 shared for competitive advantage to achieve dominant depth,200-2Ol examples,200 potential problems, 201 social complexity, 90 steered to attractive business units, 216

for strategy

exec

fiion,

29 |

-292

strategy-supportive, 291 for sustainable competitive advantage, 89-91

tangible,8T-88 valuable, in diversified companies, 237 Resource shifting, 318 Restaurant industry

changing consumer tastes, C-l 12 Chipotle Mexican Grill, C-l l4-C-123 competitiveness, C- I 12 consumers, C-125 fast-casual segment, C- 100-C- 102, C- 125 Moe's Southwest Grill, C-124 number of employees, C- 112 number of establishments, C- I I2 number of estabiishments in U.S., C-125

profitabiliry C-l12

l-42

Subject Index

Restaurant industry

-Cont.

promotions, C-112 Qdoba Mexican Grill, C-I24-C-\25 sales in 20i2, C-124 spending in, C-1 12 Taco Bell, C-123-C-t24 Restructuring, 230, 247 -249 of business lineup, 249-250 at Eastman Kodak, C-216-C-2I7 at Kraft Foods,250 reasons for, 249

Retail distribution, lululemon Athletica,

c-63-C-64 Retailers/Retailing bargaining power, 61 blpassed in forward integration, 164 carrying Under Armour products, C-50 competitive profit margins, 7t decline ofdepartment stores, C-82

lululemon Athletica,

C-

64-C- 65

securing shelf space from, 55 Under Armour, C-49-C-50 Retraining, 299 capable employees, 293-295

Revenues

Kraft Foods in 2012, C-287 lululemon Athletica, C-59 Massey Energy Corporation, C-385

Netflix, C-127

7-Eleven Stores, C-268 sources for Google Inc., C-172-C-179 State Fair ofVirginia, Inc., C-201 Under Armour, C-46 Walt Disney Company, C-27 3

Reward systems; see also Incenlives balance between rewards and

punishment, 332-334 compensation guidelines achievable outcomes, 334-335 awarding results, 336-337 communication to employees, 337 extended to all workers, 335

objectivity and fairness in,

at selected companies, 333 at Starbucks, C-32I-C-324

Rhino sales, hunting, and poachrng, case animal supermarket, C-383 conservation responsibilities, C-384 estimated population, C-370 hunting, C-377-C-382 and Kruger National Park, C-369-C-370 number ofarrested poachers, C-383 poaching, C-382-C-383 safari companies, C-37 7 - C- 382 South African National Parks 2

-C

-

37

335

151

likely moves by, 7l market position, 68-71 mutual restraint amorrg, 204 signaling retaliation against, 1 55 using profit sanctuaries to defend against, 203 -20 4 for strategic offensive against, 203 weaknesses or strengths in relation to,

c-237

108-111

Rolling Stone, C-386 Runner-up firms, 152 Russia, McDonald's in, 206

) Safari companie s, C-37 7 -C-382 Sales

Apple Inc. 2009-201 1, C-190 business unrts at Eastman Kodak,

c-2I5-C-216 7

Environmental Crimes Unit, C-382 game capture organization, C-372

justification of selling rhinos, C-383 operating expenses of capture, C-373 Veteri nary Wildlife Services,

Coach Inc., C-73

Costco Wholesale, C-6*C-7 ancillary businesses, C- I I by product category, C- I 1 domestic vehicles in India 2005-2OII, C-251 Equal Exchange, C-157, C-158

c-373-C-375

in jewelry industry by major retailers, C-95

views on hunting. C-371 Risk reduction, reason for unrelated diversification, 232

lululemon Athletica, C-59 Nucor Corporation by product category 1990-2011, C-227 by product category 20Il-20I2, C-228

Risks, in strategic alliances with foreign

partners

Panera Bread Company, C- 1 13

conflicting objectives, 191-192

Apple Inc. in 2012, C-t87 Chipotle Mexican Grill, C- 114 decline at Eastman Kodak, C-219 Dell Inc. 2007-2012, C-294 Google Inc., C-178 Hewlett-Packard 2007 -2012. C-293

ethics of competitive intelligence on, 73

improving on ideas of,

401(k) plans, C-238 production incentive plan, C-237 profit sharing, C-238 senior officer incentive plan, C-237

captures, C-369, C-37

Retrenching, 249-250 Return on assets, 83 Return on capital employed, 84 Return on invested capital, 84 Return on investment, from entering foreign markets, 179 Return on sales, 83 Return on stockholders'equity, 84 Revenue enhancement, 280 Revenue recognition, Bayonne Packaging, Inc., C-360

at

performance bonuses, 335 time factor, 336 Herman Miller Inc., C-339-C-340 Nucor Corporation bonus plan, C-237 department manager incentive plan,

cultural barriers, 191 loss of competitive advantage, 192-193

overdependence, 193 transaction costs, 191

Rivalry

U.S. restaurants, C-1 12

among competing sellers competitive weapons, 53 diversity of competitors, 52

Sales

excess supply, 52

factors affecting strength of, 51 high exit barriers, 52 high fixed or storage costs, 52 increased number of competitors, 52 less costly to switch brands, 50 less

Qdoba Mexican crill, C-125 straiegic fit in, 225-226 Taco Bell, C-123-C-124 Tata Motors 20II-2012, C-254 Tiffany & Company, C-86

differentiation,

51

slowly growing buyer demand, 49 strong, 52 weak, 52 Rivals; see also Competition; Competitors blocking avenues open to, 154

growth

Chipotle Mexican Grill, C- I i5 iquat .b,xcnange. L-15,/ at Equal Exchange, C-149 Sales management, Bayonne Packaging, Inc.,

c-362-C-36s Sarbanes-Oxley Act, 37, 262 -263 Scanlon Plan, C-333

ofthe firm definition and description, 158-159 horizontal, 159 vertical,159

Scope

Search engine market shares, C-183 Seattle Times, C-307 Secret, The (Byrne), C-69

chosen for attack, 152

Securities and Exchange Commission, 263,

comparing value chains of, 101 competitive analysis of, 71-73 competitive intelligence on, 7 I-7

c-19, c-336 Diebold case, 265-266 Self-dealing, 264

3

I-43

Subject Index Self-interest, 264 Sellers of substitute products, 56-58 Services with upscale attributes, 140 Seven Habits of Highly Effective People (Covey), C-69 Shareholders

benefits of corporate social responsibility 280-28

Stock option plan, at Starbucks, C-321 Stock price, and corporate social

Social metric, 274-275 Societal concerns, changes in, 67

responsibility, 280

Sociocultural forces, 48

Stock price performance

South Africa

estimated rhino population, C-370 Kruger National Park, C-369-C-372 National Environmental Management

I

Act, C-370

and corporate governance, 38 Costco Wholesale, C-19 damaged by company wrongdoing, 269 in Under Armour, C-44 Shareholder value goal of diversific ation, 217

from strategic fit, 226 in unrelated diversification, 228-229 Shelf space, 55

Shipping costs, reducing, 126 Short-term earnings targets, 264-266 Short-termism, 266 Short-term objectives, 28 Signaling value, 133 Simple structure, 304 Single-business units, 305 Site selection, Chipotle Mexican Grill,

c-72r-C-722 Six Sigma quality control programs blended approach, 325

safari companies, C-37

7

- C-382

South African Police Service, C-382 Specialized resources and capabilities,

222-223 Specialty bakery market, C-33-C-34 Speed in diversification d ecision, 220-221

Spinoff,247 Sports marketing

by Tiffany & Company, C-86 by Under Armour, C-47 -C-39 Stabilization, reason for unrelated diversification, 232 Staffing common practices, 295 recruiting. training. and retraining employees, 293-295 at Sift Cupcake and Dessert Bar, C-37 for strategy exec:ulion, 29 I *292

Chipotle Mexican Grill, C-114 Coach Inc., C-7 3, C-7 4, C-7 6 Google Inc., C-172, C-179 lululemon Athletica, C-59 at Netflix, C-127 Panera Bread Company, C-1 13 Walt Disney Company, C-27 7 Stock purchase plan, at Starbucks, C-322 Storage costs, and strength ofrivalry, 52 Store expansion strategy, lululemon Athletica, C-63-C-64 Store layout, 7-Eleven Stores in Taiwan, C-262 in United States, C-257, C-258 Store locations Coach Inc., C-80 Sift Cupcake and Dessert Bar, C-38 Stores

Chipotle Mexican Grill development and construction costs,

c-122-C-r23 site selection, C- 1.2I -C- 122 Coach Inc.

strong management teams, 292-293

I

Stakeholders

factory outlets, C-8

full-price, C-80-C-81

definition, 324

and corporate governance, 38 and corporate social responsibilit{, 270, 278-279 Standardization, in global strategy, 196 Standards wars, 156

DMADV

Startups

capturing benefits of, 327 -328 companies in forefront of, 325 compared to other process management

tools, 327 approach, 324

DMAIC approach. 324 325 for health care,325 innovation stifled by, 325 as

internal,2l9 State laws on sales

Whirlpool, 326

Slogans, to express strategic vision, 24 Small Business Administration, C-33

Smartphone market Apple's concerns about Google, C-197 competitive position of Apple, C-195 competitors for Apple, C-187 demand and competition in,

c-195-c-797 Google vs. Apple rivalry, C-180-C-181 market share ofleading vendors, C- 196

market shares, C-181 Social complexity, 90 Social contract lmplicit, 278-279 integration lheory, 262 Social media use by Sift Cupcake and Dessert Bar,

c-35-c use

36

in specialty food

ofalcoholic beverages,

segn-rent, C-35

increasing number of, C-113 number of locations, C-109 operations, C-109 site selection, C-108 size and environment, C-108 ambiance, C-312 -C-314

Statement of operations

design characteristics, C-3 12 expansion strategies, C-3 l4-C-3 16

Eastman Kodak, C-214

Herman Miller Inc., C-343 Statistical information, 330 Steel

Panera Bread Company

Starbucks

c-40s

motivation, 360

principles underlying, 324-325 for value chain activities, 326 at

barriers to entry,2l7

by geographical region, C-80

lululemon Athletica, C-64-C-65

international strategy, C-314-C-316, c-330

industry

competition in U.5., C-244-C-245 consolidation by Nucor, C-228-C-23 in financial crisis of2008, C-242 glut of imports, C-228-C-229 industry consolidation, C-242 major exporting countries, C-242 mini-mills, C-241-C-242 Nucor Corporatton, C-220 C-245 production by countrY, C-240

licensed, C-314

I

number of, C-305 Store showroom strategy, lululemon Athletica, C-64 Stories, role in corporate culture, 347-348 Strategic alliances

to access capabilities, 299 advantages over mergers and acquisitions, 1.72

technologies, C-241-C-242

advantages over vertical integration, 172

top

versus armtJength transactions, I 72

15 companies, C-241

United States tariff, C-229 worldwide capacitY, C-240

worldwide production, C

240

Stock, Equal Exchange, C- 159-C-160 Stockholders, in Equal Exchange,

c

1s9 c-160

benefits to companies, 168 capturing benefits of decision-making Process, l7l information sharing, 171 living up to commitments, 171 managing learning Process, 171

l-44

Subject Index

Strategic alliances C o nt. picking good partners, 171 sensitivity to cultural differences, characteristics, 168- 169 common reasons for, 170

definition,

Strategic group, 69

l7l

168

risks,191-193 sharing distribution networks,

ol

definition,4

of

effect of industry driving forces, identifying rivals, 70

l9l

71

Prollt prospects,,/U-,/I c-188-C-189 Strategic objectives

3

10

172

management as organizational capabllity,174 versus mergers and acquisitions, 168 more common in Asia and Latin America, 183 Nucor Corporation, C-232-C-233,

c-234 number of, 169-170 purposes, 169 requirements for success credible commitment, 173 learning process, I73 management system,173 safeguards, 173

trust,173 7-Eleven Stores, C-259, C-26I -C-27 2 by Solazyme, 192

for strong industry position, 170 technological advances, 1 69

l7l

unrealized gains, 172 versus vertical integration, 168 Strategic balance sheet, 93 Strategic direction, board guidanc e,37 -38 Strategic fit along value chain

customer service, 226 distribution-related, 226 manufacturing-r elafed, 225 research and development, 225 sales and marketing, 225-226 supply- chain activitles, 224 -225 technological activities, 225 benefiting from, 237 competitive value of diversified companies, 241

cross-industry, 235 222

and economies of scope,226-226 leading to competitive advantage, 227 limited in unrelated diversification, 232

profitabihty from, 227 shareholder value from, 227 in value chain activilies,222

deliberate, 9 direction and guidance from, 4 diversity of, 4 effectiveness

Strategic leadership, Steve Jobs at Apple,

190

facilitating collaboration with, joint ventures, 169 loss ofproprietary knowledge,

definition,22l

example, T0 value

examples, 170

time span o{

constructing, 69

definition,6S guidelines,6g

to enter foreign markets economies of scale from, 191 gain in technical expertise, 191

wide use

tailoring products, 204 Yum! Brands in China,205 and corporate social responsibiliry 272-275 corrective adjustments, 361 -3 62

Strategic group map(ping)

balanced scorecard for, 29

definition,28 motivation, 360

damage control, C-128-C-I29

as

negative customer reaction, C-127

short- vs. long-term, 28

tlpes of,29 Strategic offensives based on strongest competitive assets, 150

options basis of attack, 150-152

blue-ocean strategy, I 52- 154 choosing rivals to attack, 152 principles of, 150 timing of, 155-158 Strategic options, Coach Inc. build market share, C-73 in future, C-82-C-83 raise brand awareness, C-73 target men as customers, C-73 Strategic plan, 20, 35 Strategic thinking,45 Strategic vision, l9-20

Carmelite monks of Wyoming, C-3 communicating, 21-22

definition, 2l distinctive and specific, dos and donts, 22

of

financial ratios for, 82-86 key components, 81-82 specific indicators, 82-83 effects of change at Netflix

2

1

problem with Starz, C-127-C-I28 reversal of strate gy, C- 129 -C -130 stock price slide, C-127 emergent,9 evaluation of diversilied companies business unit competitiveness, 237 -240 competitiveness fit, 241 industry attractiv eness, 23 4 *237 new strategic moves, 245-246

priorities for resource allocation, 244-245 resource fir,242-244 steps, 233

evolution over time, 8 for future ofState Fair ofVirginia,

c-207-c-2I0 identifying characteristics, 5 issues meriting management attention,11l lor local companies in developing countries acquisitions, 208-209 business model,207

examples,23 expressed as slogan, 24

Mystic Monk Coffee, C-5 significance of,24 stated in inspirational terms, 332 in strategic plan, 35 to win support of organization members,

2L-22 Strategy; see also Defensive strategy options;

Offensive strategy options about competing differently, 4-5 blue-ocean strat egy, 1 52-l 5 4 and business model, 10 Chipotle Mexican Grill, C-114 choices involved in, 4 for competing in developing countries business risk vs. opportunities, 204 changing local markets, 206 low price, 205 modifying business model, 205-206 places to avoid, 206-207

Ctrip in China,208 local workforce, 207 -208 rapid- growth str ategy, 208 -209 transfer of expertise, 209 understanding customers, 207 market opportunily and, 9 4 matched to competition, 64 at

McDonald's,6

mergers and acquisitions, 159-162

objectives,4 options for entering foreign markets acquisitions, 1 90 exporting, 188-189 franchising, 189 greenfield ventures, I 89- 190 joint ventures, 190-193 licensing, 189 strategic alliances, 190- 193 subsidiaries, l39 I90 outsourcing, I66-168

proactive,8-9

l-45

Subiect Index quest for competitive advantage, 5-8 reactive, 9 realized, 9 strategic alliances, 1 68- I 74 tests for success, 36

competitive advantage test, 12

fit test,

12

performance test, 12 vertical integration, 162-166 well-executed, 3 Strategy-critical activities benefits offocus on acquiring capabilities from partners, 302 creating distinctive competence, 301 streamlining operations, 301 -302 building blocks of organizational structure, 303-304 Strategy execution Apple Inc., C-18i-C-182, C-L92-C-193,

c-195 aspects of, 36 basic management tasks, 288-289 in big companies, 290 B]'s Wholesale Club, C -23 - C' 24

Chipotle Mexican Grill, C-l i6-C- 120 Coach Inc., C-79-C-92 competitive advantage from, 300 corporate culture as ally in, 349-350 Costco \{4rolesale growth, C-12-C-13 growth strategy, C-12 C-13 1ow-cost emphasis, C-12 marketing and advertising, C-13-C-14

retail stores, C-64-C-66 sourcing and manufacturing, C-67 target market, C-62 website sales, C-64 wholesale sales, C-64 in management agenda, 35 managerial skills for, 287-288 mistakes at Netflix, C-127-C-I30 Nucor Corporation growth by acquisitions,

c-228-c-23r, c-235 growth via joint ventures,

c-232-C-233 low-cost production, C'232 new technologie s, C23I -C-232 plant constructio n, C23 I -C-232 raw materials strategy, C-233 -C-235 shift to value-added products,

c-235-c-236 Panera Bread Company, C-92-C-102 policies and procedures, 319-321 problems at Bayonne Packaging, Inc.

distribution, C-362-C-365 operations, C-365-C-366 quality control, C-360 sales management, C-362-C-365 scheduling, C-366-C-368 process management tools best practices, 321-322 busi ness process reengineering. 323-324 capturing benefits of, 327 -328 Six Sigma quality control, 324-326

total quality rnanagement, 324

pricing, C-9-C-10

resource allocation to. 318-319

product selection, C- l0-C- I I supply chain and distribution, C-15

rewards and incentives to motivate,

lreasure hunt merchandisi ng.

role of employee rraining,299 Sam's Club, C-21-C-22 7-Eleven Stores coffee counters, C-266- C-267 delivery and PickuP, C-26r' phone plans, C-266 pre-ordering, C-266 prepaid cards, C-266 seating areas, C-267

c-ll-c-12 website sales,

C l4-C-

I

5

customized for company situation, 288 Equal Exchange, C- 1 54-C- 1 56 failures at Eastman Kodak, C-271-C-219 Frogt Leap Winery, C-400-C-404 harder than strategy-making, 287 impact ofethical standards, 262 263 importance of, 12-13 information and operating systems, 328-331 integrated tasks for, 20 leadership of,358-362

lululemon Athletica chiefcomponents, C-63 community-based marketing, C-67 distribution, C-67 product design and develoPment,

c-66-C-67 product 1ine, C-66 retail distribulion and store expansion.

c-63-c-64

JJ I _JJ)

taxi services, C-267 -C-268 in small companies, 290 Starbucks

acquisition of Seattlei Best.

c-317 c-318

sales mix in 2011, C-319 in strong-culture comPanies, 349 Tiffany & Company, C-85-C-86 top-down guidance,3l9

and type of organizational structure,

300-307 Under Armour

distribution, C-50-C-51 growth, C-46 inventory management, C-52 marketing, promotion, and brand management, c-47-c-50 product design and development, C-58 product line, C-46-C-47 sourcing, manufacturing, and quality assurance, C-51-C-52 in weak-culture comPanies, 349

Strategy-making choosing among alternatives, Coach Inc., C-73

3l

differentiation, C-79-C-80 distribution options, C-80-C-82 flexible sourcing, C-79 collaborative effort, 32 for cross-border competltion, 181-188 in diversified companies, 215 down-the-line managers in, 32 easier than strategy execution, 287

entrepreneurship in, 3l Equal Exchange, C' 164-C- I 66 facets ofpresent situation, 45 at General Electric, 32 Google Inc. control of desktop, C- 181-C- 182 dominate Internet advertising, C-179 expand into TV, C-182-C-183 rivalry in smartphone market,

c-180-c-181 rivalry in tablet computers, c-180-c-181 Henkel AG, C-349-C-351 impact of ethical standards, 262-263 importance of, 12-13 integrated tasks for, 20 and key success factors,T4-75 Mystic Monk Coffee, C-5

Netflix bases of, C-140

choice of mail delivery or streaming,

c-r43-c-144 comprehensive fi lm librarY,

c-140-c-141

acquisition of Tazo Tea, C 3I7 agreement with Kraft Foods, C-317

easy-to-use software, C- 142-C- I 43

debit cards, C-317

just-for-kids option,

joint ventures, C-3I6- C-317

new content acquisitions,

new market segments, C-316-C-319 new product launch, C-318 partnership with Green Mountain,

transition to Internet deiiverY, c-144 c-145

c-318-c-319 product line expansion, C-3 t 6-C-3 19

C- 141

c-l4I-c-r42 new moves lor diversified companies broadening business base, 247

l-46

Subject Index

Strategy-making-

Conf

.

divesting and retrenching, 247 -249

Substitutes

oplions,245-246 restructuring business

key elements, C-324

competitive pressures from sellers of, 56_58

in one-business company, 215

factors affecting competition from availability and price, 57 quality and performance, 58 switching costs, 58

on-the-scene managers in, 32

identifying,

Panera Bread Company, C-97-C-I02

and industry boundaries, 58

lineup,249-250 sticking with business lineup, 246

Robin Hood, case, C-300-C-301 role of CEOs,31 role oftop executives, 31 7-Eleven Stores early mistakes in Taiwan,

c-26r_c-263 innovation, C-264-C-268 localization, C-263 -C-264 Sift Cupcake and Dessert Bar, C-35,

c-37-C-4I Starbucks, C-305

Tiffany & Company, C-85-C-86 top-down process, 30 Under Armour in early years, C-43 Strategy-making hierarchy businesslevel strategy, 33, 34 corporate strategy, 32, 33 functional-area strategy, 33, 3 4 operating strategies, 33, 34 strategic plan, 35 uniting, 34-35 Strategy management process corrective adjustments, 36-37 mission statement, 24-26 performance evaluation, 36-37 setting objective s, 27 -30 strategic vision, 2 l-23 strategy execution, 35-36 strategy-making, 3 1-35 Strategy-supportive organizational

structure,29l Strategy-supportive resources and capabilities, 29 1 Strength, 92; see also SWOT analysis Stretch objectives, 28, 334 balanced scorecard for setting, 28, 29

financial,28 strategic,28 29 Strong-culture companies, 3 48 -3 49 Struggling enterprises, 152 Subcultures, incompatible, 354 Subprime loans, 264 Subsidiaries

acquisitions, 190 demands on management, 321 greenfield ventures, 189, 190 resource allocation to, 244 Tata Motors, C-247, C 248 Substantive culture-changing actions, 356-357

small farmer support program, c-326-C.-327 strategic fit in, 224-225 Support value chain activities, 98 general administration, 99

58

and strength of rivalry, 51 and supplier bargaining power, 60 and threat ofnew entrants, 56 Success, celebrating, 361 Succession planning, at Procter & Gamble, fo1

Sudden-death threats, 96 Supermarkets, bargaining power, 61 Supplier bargaining power competitive pressures from, 58-60 erosion of profitability by, 58 factors determining strength of availability of substitutes, 60 and backward integration, 60 competitiveness of major customers, 60 costs of items, 60 demand,59

differentiation, 60 industry concentration,

pricing and purchasing, c-325-C-326

human resource management, 99 to identify cost structure components, 101 research and development, 99 Sustainable business practicesr 275

California Wine industry, c-395-C-399 corporate social responsibility strategies business case,279-28I

crafting, 277 -278 moral case, 278 279 delrmtron. 2./5 environmentally sustainable strategies, 275-277 philosophy at Frog's Leap Winery,

c-400-c-403 Sustainable competitive advantage

capabilities and resources, 89 strategies for, 7-8 tests for, 12

60

switching costs, 60 and small-scale retailers, 58-59 Supplier Code of Conduct, Apple, Inc.,259 Suppliers

to Chipotle Mexican Grill, C-119 close location of, 126

coordination with, 132

for Costco Wholesale, C-19 to Costco Wholesale, C-15

international expansion, 180 and strength of rivalry, 5 1 and threat ofnew entrants, 56 in value chain, 101-i02, 105 Supply and demand and buyer bargaining power, 6l and supplier bargaining power, 59 Supply chain improving efficiency of, 124 Panera Bread Company, C-107-C I 10 Under Armour, C-51 C-52 Supply chain management at Chipotle X,{exican Grill, C- 119 at Costco Wholesale, C 15 in forward integration, 165 Nucor Corporation, C-2.33 -C-23 5 7-Eleven Stores, C-268-C-271 at Starbucks

ethical sourcing, C-326-C-327 fair trade practices, C-326

VRIN tests for, 90-91 Sustainable responsible business, 272 Switching costs, 50, 54 and buyer bargaining power, 61 and customer loyalty, 13 I

first-mover advantage,

156

high or low for substitutes, 58 low, 128 and supplier bargaining power, 60 SWOT analysis

definition, 92 identifying internal strengths, 92-93 identifying market opportunities, 94 identifiring threats to profitability, 94-96 identifying weaknesses and competitive deficiencies, 93-94 potential market opportunities, 95 potential strengths and competitive assets 95

potential threats to profitability, 95 potentlal weaknesses and competitive lrabrlrtres- 95 results of, 96-97 steps involved in, 97 translated into actions, 96-97 Symbolic culture changing actions ceremonial events, 357 lead by example, 357 Synergies,2lT Walt Disney Company, C-278

Subject

TI Tablet computers, C- 192-C- 193 Google vs. Apple rivalry, C-180-C-181

Taiwan convenience stores, C-259-C-26

sales reps,

C-26-C-27

competition 1

franchising business models, C-260 industrial growth, C-259-C-260 main convenience competitors, C-26 property zoning, C-260 retail trade value, C-260 7-Eleven Stores in, C-261-C-272 Tangible assets

definition,

Textbook publishing, case business model acquisition editors, C-26 cost-intensive nature, C-27

sa1es, C-28-C-30 international editions, C-29 new editions, C-28-C-29

Ebook

1

87

financial, 88 organizational, 88 physical, 88 technology, 88 Tangible features, 133 Tapered integration, 162 Target market best-cost provider strategies, 140 Coach Inc., C-73 focused low-cost strategies, 136 lululemon Athletica, C-62 Panera Bread Company, C-102, C-106 Tariffs on steel imports, C-229 Taxable economic development bonds,

c-203 Tax-exempt bonds, C-204 Ta-{-exempt status

not-for-profit sector, C-200 State Fair ofVirginia, Inc., C-201 Technical know-hoq diffusion of, 66 Technical standards, first-mover advantage, 156

Technological advances embraced slowly in forward integration, 165

industry driving force, 66 at Nucor Corporation disruptive lnnovallon, C-232 leapfrog innovation, C -232 striving for, 131 Technological change, 134 Technological forces, 48 Technological improvement, 1 05 Technological resources, 87, 88 Technology accessed by mergers and acquisitions, 1 60 gained by strategic alliances, 191 strategic fit in, 225 Telecommuting, C 344 Television Googlet expansion into, C-168,

c-182-c,183 Walt Disney Company in, C-278-C-280 Terrorist attack of200l, C-335

rental textbooks, C-28 used book market, C-28

economy of Ebooks agency vs. retail pricing, C-3I-C-32 benefits, C-32 challenge to print publishers, C-30 effect on retailers, C-30-C-31

pricing strategy, C-31 online virtual textbooks, C-27 online vs. in-store purchases, C-26 Think global, act global approach to

international strategy, 19 5 - 19 6 Think 1ocal, act local approach to international strategy, )'94-795 Threat of new entrants, 54-56 Threats external,96 sudden-death, 96 Time, C-334 Times interest earned, 85 Time to market, 167 Today show, C-333

Top-down guidance,3l9 Top-down objective setting, 30 Top-down process, 30 Top executives; see also CEOs corporate parent ing by, 229 evaluation of leadership skills, 38 Henkel AG discussion of strategy, C-354-C-358 incentive compensation, 335 monitoring compensation of, 38 role in strategy-making. 3 I at Under Armour, C-44 uniting strategy-making hierarchy, 34-35 Total debt-to-assets ratio. 84 Total quality management, 324 capturing benefits of, 327 -328 compared to other process management tools, 327 as

motivation, 360

Index

I-47

Transaction costs, 221

in strategic alliances,

191

Transnational strate gy advantages and disadvantages, 197

definition,

196

drawbacks, 197 examples, 197

think global, act local approach, 196 Treasure-hunt merchandising, at Costco Wholesale, C-11-C-12 Triple bottom line economic metric, 27 4-27 5 environmental m elr ic, 27 4-27 5 social metric, 274-275 for wine industry, C-395-C-397 Triple-bottomJi ne r eporling, 27 5 by selected companies, 276 Turnaround capabilities, 230 Turnaround plan Coach Inc., C-74 at Eastman Kodak, C-213-C-214 Turnover, low at Nucor Corporation, C-238

U U-forms, 304 Umbrella brands, 230 Uncertainty, reduction in, 66 Underage labor, 260 Underground economy, 260

Underpricing,

123

Unethical business behavior

bribery and kickb

acks, 260

-26I

costs to companies, 269 damage to reputation, 268-269

Devilt Den, C-302-C-304 drlvers of faulty oversight, 264

profitability, 266 -268 pursuit of person aI gain, 264 self-dealing, 264 short-termism, 264-266 fallout from, 269-270 underage labor, 260 Unethical cultures, 3 53 -3 5 4 Uniqueness drivers

definition, l30 types

ol

131

Tradition-steeped companies, 347

Unitary structure, 304

Training

United Mine Workers, C-386, C-390 United States dumping of foreign steel, C-229 fast-casual restaurants, C- I 00-C- 102 jewelry industry, C'89-C-9 1 number ofweddings since 2010, C-94 restaurant industry, C-1 l2 steel imports 20Ll-202, C-243' C-244

capable employees, 293-295 at Chipotle Mexican Grill, C-120 at Coach Inc., C-80 at

lululemon Athletica, C'69

at Procter & Gamble,294 at Starbucks, C'322-C-323 strategic role of, 299

I-48

Subject Index

United States Alcohol Tobacco and Trade Bureau, C-403-C-404 United States Bureau of Mines, C-388 United States dollar strength ofeuro versus, 187 weakening of, 186-187 United States House Oversight Committee,

c-186 United States International Trade Commission, C-229 United States Supreme Court, on interstate commerce, C-405 Universal ethical principles, 257 Unrelated businesses, 221 Unrelaled diversification, 2 I 7 acquiring and restrucluring companies. 230

benefits of corporate parenting, 229-230

c-235-C-236 definition, 89 of distribution channels,

sustainability philosophy, 102

and economies ofscope, 226-227 illustrated, 99

for KP Maclane, 100 profit margin component,

ofrival companies, strategic fit along

23

I

as conglomerates, 228

cost-of entry test, 228 criteria for acquisitions, 228 cross-business allocation of resources, 230

drawbacks demands on management, 23I -232 limited competitive advantage, 232 industry attractiveness test, 228 misguided reasons for

growth,232 managerial motives, 232-233 risk reduction, 232 stabilization,232 in multidivisional structure. 305-306 parenting advantage, 231 parenting capabilitles, 228 profit growth requlrement, 228 screening acquisitions, 228 sharing generalized resources and capabilities, 228-229 Upscale attributes, 140 Used book market, blpassed by Ebooks,

c32

V Valuable resources, g0 Value

Frog Leap Winery

distribution, C-400 production, C-399

Value chain

100

101

customer service, 226 distribution-related, 226 manufacturing-r elated, 225 research and development, 225 sales and marketrng, 225 -226 supply chain act iv lties, 224-225 technology activities, 22 5

ofsuppliers, l0t-102

better-offtest,228 building shareholder value, 228-237 combined with related diversification, 233 conditions for financial results.

Value-added products, Nucor Corporation,

Value chain activities adidas Group operations, C-57-C-58 outsourcing, C-58 research and development, C-58 advantageous location in foreign markets, 183-184 Bayonne Packaging, Inc. operations, C-365-C-366 quality control, C-360 scheduling, C-366-C-368 benchmarking assessment, I 03 best practices across, 322 B]'s Wholesale Club marketing, C-25 operations, C-25 as building blocks of structure, 303-304 Chipotie Mexican Grill advertising, C-12i branding, C-121 marketing, C- 120-C-l2l Coach Inc.

distribution, C-81-C-82 flexible outsourcing, C-79 outsourcing, C-73 comparison among business units, 241 as competitive advantage, 106-108 Costco Wholesale advertising, C-13 C 14 distribution, C-15 human resource management, C 18 supply chain management, C-15 warehouse management, C-16 cost-efficient management, I23-I25,

130-13I

c 400-c-403 in global strategy, 195 Herman Miller Inc. advertising, C-338 human resource management,

c-338*C-340 lean manufacturing, C-338-C-339

marketing, C-338 multiplant operations, C-333-C-334 production, C-338-C-339 research and development, C-342 to identify cost structure components, l0l in-house, 163 internally performed, 105 KP Maclane, 100

lululemon Athletica distribution, C-68 new product technologies, C-61 outsourcing, C-68

product design, C-66-C-67 product line, C-66 website strategy, C-64 wholesale strategy, C-64

Netflix, C-144 Nucor Corporation human resource management, c-238-C-240 innovative technologies, C-220 product line exp anslon, C-222-C-226 outsourcing vs. internal performance, 300-302 Panera Bread Company advertising, C-106

differentiation, C -97 -C -9 9 distribution, C-109-C- i l0 franchise operations, C- 107-C- 1 08

primary,9S-99 reasons for outsourcing of, 167

reengineering, 323 related to resources and capabilities, 107 risks in outsourcing hollowed out capabilities, 167 -168 lack of direct control, 168 7-Eleven Inc. convenience store concept, C-257 franchise operations, C-257 -C-258 Taiwan operational innoval iorrs.

c-26r c-272

from differentiation strategies, 132-134 for the money, 7-8

and diversification, 215 Eastman Kodak, C-2I6-C-219

Sift Cupcake and Dessert Bar advertising, C-35-C-36 human resource management,

signaling, 133

Equal Exchange, C-154-C-156 offorward channel allies, 106

social media use, C-35-C-36

Value added, by corporate parenting, 229

c-36-C,37

Subject Index Starbucks

revamping

corporate social responsibility strategy, c-328_C_329 customer relations, C_329_C_330 human resource management, c_321_C_324 new market segments, C_316_C_319 operations, C-327 purchasing strat egy, C_324_C_327 store expansion, C-3 14_C_316 supply chain management, C_312

for strategy

exec

fiion, 29l_2g2

marketing research, C_252 Under Armour advertising, C_50

advantages, 162-164

distribution, C-50_C_5 I inventory management, C_52 licensing agreements, C-47 outsourcing production, C_5 I _C_52 product line, C_45_C-47 sports marketing, C_ 47 _C_4g varying by industry, 101 Walt Disney Company operations, C_290_C_284

primary purposes,

101

to uncover competitive advantage,

Value chain management

attention to cost drivers, 123,124 buyer bargaining power, 125 economies ofscale, 123 employee motivation, i25

full-capacity operations, I 24

information technology,

125

learning curve effects, 124 lower-cost inputs, 125 outsourcing,125 supply chain efficiency, 124 vertical integration, 125 at Walmart, 127 Value chain match up, 223 Value chain revamping bypassing distrib utors, 125_ 126 at Nucor Steel, 126 reduce shipping costs, 126

reducing materials handling, I26 at Southwest Airlines,

1

26_ 127

streamlining operations, I 26 Value chain system description, l0I-102

backward to achieve greater competitiveness, 163 forward to enhance competitiveness, 163-164 at American Apparel, 166 cost advantages, 125 disadvantages capacity matching problem, 165 increased business risk, 164 less

6_C_283

customer value proposition, 9g- 100 to identify cost disadvantages, 104 to identify value disadvantages, 104

_

104

Values

Variables, on strategic group map, 69 Vertical integrated firms, 162 Vertical integration

joint ventures, C_242_C_24g

106

rare resources, g0

valuable resources, 90

Vulnerability signs of, 152

Value-conscious buyers, 140 Value^creation, from organizational design, 303 Value disadvantages. options for remedying,

Value statement, 26

Tata Motors

C _27

and vertical scope, 159

of companies, 25-26 in strong culture companies, 34g_349

supplier-related, I05_ 106 support, 9g_99

related diversific ation, Value chain analysis

in differentiation strategies, 132 in low-cost provider strategies, 125-r27

l-49

flexibility,

165

not realizing economies ofscale, 165 resources and capabilities, 165 slow embrace of technological advances, 165 examples, 162

pros and cons, 165_166 at Starbucks, C-320 versus strategic alliances, 172 tapered integration, 162 Vertical scope, 159

Trophy C-86

V_isible costs of ethical wrong d,otng, 269

Vision

Warranties as competitive weapon, 53 Weak-culture companies, 349

Weakness, 93; see also SWOT analysis Wealth, obsession with, 264 Website strategy, lululemon Athletica, C_64 Wholesale distributors, Z4

by Under Armour, C_50 Wholesale locations, Coach Inc.

international, C-g2 United States, C-82 Wholesalers, blpassed in forward integration, 164 Wholesale sales strategy, lululemon Athietica, C_64 Wine industry

Certified Napa Valley Green Land program, C_39g

Sustainable Winegrowing

Program, C-396 Vision statemenl; see also Strategic vision Coca-Cola Company, 23 H. l. Heinz Com pany, 23 Procter & Gamble, 23 Voice over Internet protocol, 65,216,225 Volume buyers, l2g VRIN tests for sustainable competitive advantage

green consumers, C_395 green wineries in 2011, C-397 _C_39g in Napa Valley, C 392_C_393

organic wine, C_395 price segment data, C 394 sustainability in california, sustainable practices, C_399-C-399 Sustainable Winegrowing program, C_396 _ Women's athletic apparel

lululemon Athletica, C-59_C_71 major competitor s, C-7 I _C_7 2 specialty department stores, C_71_C_72 Women\ Wear Daity, C-74 Work atmosphere, 332 Work climate,320 Work effort perspective on structuring, 310_31 1 structuring,29l for successful strategy execution

90

non-substitutable resources.

Frogt Leap Winery in, C-3g2_C_404 glossary of terms, C_404_C-405

c_39s_C_399

at Henkel AG, C-350_C-351 Starbucks, C-310

inimitable resources,

Bf's Wholesale Club, C_25 at Costco Wholesale, C_16

consumer demographics, C_394 consumer segments, C_393_ C-395 financial data, C_39: financial ratios, C-403

expansion from, 162 full integration, I62 partial integration, 162

V_ince Lombardi Super Bowl

Wage cuts in jewelry industry, C-90 \{all Street lournal, 260 Warehouse management

9

I

create distinctive competence, 301

I-50

Subject Index

Work effort-Cont. flatten out organ ization, 301_302 partnerships, 302 Work environme nt, 27 2, 33 2 and corporate culture, 344 at Costco Wholesa.le, C_17 at Starbucks, C_320, C_322

Worker-owned co_operative, C_ I49, C_ I S4 Workforce diversity of,272 oflocal companies in developing countries, 207_209 Workforce rerention, 27 _ 9 2g0 Working capital,84

Working conditions, unsatisfactory, Work teams, Herman Miller World World World Worry

economy, 179 Series Trophv, C_86

Trade Organization, ZOI

list of problems, l l

C- 153

Inc., C_337

l