Crafting and Executing Strategy The Quest for Competitive Advantage Concepts 21st Edition Thompson Solutions Manual

This is completed downloadable of Crafting and Executing Strategy The Quest for Competitive Advantage Concepts 21st Edition Thompson Solutions Manual

Product Details:

• ISBN-10 ‏ : ‎ 1259732789
• ISBN-13 ‏ : ‎ 978-1259732782
• Author: Thompson

Continues its tradition of being a preeminently teachable text because of its mainstream content and balanced coverage of what every student needs to know about the managerial tasks of crafting and executing strategy.

Table of Content:

part oneConcepts and Techniques for Crafting and Executing Strategy 
1
Section A: Introduction and Overview
	1.	What Is Strategy and Why Is It Important? 2
What Is Strategy? 3
Identifying a Company?s Strategy 4
Strategy and the Quest for Competitive Advantage 5
Strategy Is Partly Proactive and Partly Reactive 8
Strategy and Ethics: Passing the Test of Moral Scrutiny 10
The Relationship between a Company?s Strategy and Its 
Business Model 11
What Makes a Strategy a Winner? 11
Why Are Crafting and Executing Strategy Important? 13
Good Strategy 1 Good Strategy Execution 5 Good Management 14
illustration capsules
1.1. The Chief Elements of Southwest Airlines? Strategy 5
1.2. Microsoft and Red Hat Linux: Two Contrasting Business 
Models 12
	2.	The Managerial Process of Crafting and Executing 
Strategy 16
What Does the Process of Crafting and Executing Strategy Entail? 17
Developing a Strategic Vision: Phase 1 of the Strategy-Making, 
Strategy-Executing Process 17
Linking the Vision with Company Values 21
Communicating the Strategic Vision 24
Setting Objectives: Phase 2 of the Strategy-Making, Strategy-Executing 
Process 26
What Kinds of Objectives to Set: The Need for a Balanced Scorecard 27
Crafting a Strategy: Phase 3 of the Strategy-Making, Strategy-Executing Process 
32
The Strategy-Making Pyramid 34
Uniting the Strategy-Making Effort 37
Merging the Strategic Vision, Objectives, and Strategy into a Strategic Plan 37
Implementing and Executing the Strategy: Phase 4 of the Strategy-Making, 
Strategy-
Executing Process 38
Initiating Corrective Adjustments: Phase 5 of the Strategy-Making, Strategy-
Executing 
Process 39
Corporate Governance: The Role of the Board of Directors in the Strategy-Making, 
Strategy-Executing Process 40
illustration capsules
2.1. Exelon?s Strategic Vision 22
2.2. Examples of Strategic Visions?How Well Do They Measure Up? 23
2.3. Intel?s Two Strategic Inflection Points 26
2.4. Examples of Company Objectives 28
2.5. Organizations That Use a Balanced Scorecard Approach to Objective Setting 
30
Section B: Core Concepts and Analytical Tools
	3.	Analyzing a Company?s External Environment 44
The Strategically Relevant Components of a Company?s External 
Environment 45
Thinking Strategically about a Company?s Industry and Competitive Environment 
46
Question 1: What Are the Industry?s Dominant Economic Features? 48
Question 2: What Kinds of Competitive Forces Are Industry Members Facing? 50
The Rivalry among Competing Sellers 50
The Potential Entry of New Competitors 55
Competitive Pressures from the Sellers of Substitute Products 59
Competitive Pressures Stemming from Supplier Bargaining Power and 
Supplier?Seller 
Collaboration 60
Competitive Pressures Stemming from Buyer Bargaining Power and Seller?Buyer 
Collaboration 
64
Determining Whether the Collective Strength of the Five Competitive Forces 
Promotes 
Profitability 67
Question 3: What Factors Are Driving Industry Change and What Impacts Will They 
Have? 
68
The Concept of Driving Forces 68
Identifying an Industry?s Driving Forces 69
Assessing the Impact of the Driving Forces 74
The Link between Driving Forces and Strategy 74
Question 4: What Market Positions Do Rivals Occupy? Who Is Strongly Positioned 
and 
Who Is Not? 75
Using Strategic Group Maps to Assess the Market Positions of Key 
Competitors 75
What Can Be Learned from Strategic Group Maps 77
Question 5: What Strategic Moves Are Rivals Likely to Make Next? 77
Identifying Competitors? Strategies and Resource Strengths and Weaknesses 78
Predicting Competitors? Next Moves 79
Question 6: What Are the Key Factors for Future Competitive Success? 80
Question 7: Does the Outlook for the Industry Present an Attractive Opportunity? 
82
illustration capsules
3.1. Comparative Market Positions of Selected Retail Chains: A Strategic Group 
Map 
Application 76
	4.	Analyzing a Company?s Resources and Competitive 
Position 86
Question 1: How Well Is the Company?s Present Strategy Working? 87
Question 2: What Are the Company?s Resource Strengths and Weaknesses and Its 
External Opportunities and Threats? 89
Identifying Company Resource Strengths and Competitive 
Capabilities 89
Identifying Company Resource Weaknesses and Competitive 
Deficiencies 93
Identifying a Company?s Market Opportunities 94
Identifying Threats to a Company?s Future Profitability 94
What Do the SWOT Listings Reveal? 94
Question 3: Are the Company?s Prices and Costs Competitive? 98
The Concept of a Company Value Chain 98
Why the Value Chains of Rival Companies Often Differ 100
The Value Chain System for an Entire Industry 100
Developing the Data to Measure a Company?s Cost Competitiveness 102
Benchmarking the Costs of Key Value Chain Activities 103
Strategic Options for Remedying a Cost Disadvantage 106
Translating Proficient Performance of Value Chain Activities into Competitive 
Advantage 106
Question 4: Is the Company Competitively Stronger or Weaker Than Key Rivals? 
108
Question 5: What Strategic Issues and Problems Merit Front-Burner Managerial 
Attention? 
111
illustration capsules
4.1. Value Chain Costs for Companies in the Business of Recording and 
Distributing Music 
CDs 103
4.2. Benchmarking and Ethical Conduct 105
Section C: Crafting a Strategy
	5.	The Five Generic Competitive Strategies: 
Which One to Employ? 114
The Five Generic Competitive Strategies 115
Low-Cost Provider Strategies 117
The Two Major Avenues for Achieving a Cost Advantage 117
The Keys to Success in Achieving Low-Cost Leadership 124
When a Low-Cost Provider Strategy Works Best 125
The Pitfalls of a Low-Cost Provider Strategy 126
Differentiation Strategies 126
Types of Differentiation Themes 127
Where along the Value Chain to Create the Differentiating Attributes 127
Achieving a Differentiation-Based Competitive Advantage 128
The Importance of Perceived Value 129
Keeping the Cost of Differentiation in Line 129
When a Differentiation Strategy Works Best 129
The Pitfalls of a Differentiation Strategy 130
Best-Cost Provider Strategies 130 
The Big Risk of a Best-Cost Provider Strategy 132
Focused (or Market Niche) Strategies 132
A Focused Low-Cost Strategy 132
A Focused Differentiation Strategy 133
When a Focused Low-Cost or Focused Differentiation Strategy Is Attractive 134
The Risks of a Focused Low-Cost or Focused Differentiation Strategy 135
The Contrasting Features of the Five Generic Competitive Strategies: 
A Summary 135
illustration capsules
5.1. Nucor Corporation?s Low-Cost Provider Strategy 118
5.2. Utz Quality Foods? Use of Internet Technology to Reengineer Value Chain 
Activities 
123
5.3. Toyota?s Best-Cost Producer Strategy for Its Lexus Line 131
5.4. Motel 6?s Focused Low-Cost Strategy 133
5.5. Ritz-Carlton?s Focused Differentiation Strategy OR Progressive Insurance?s 
Focused 
Differentiation Strategy in Auto Insurance? 134
	6.	Beyond Competitive Strategy: Other Important Strategy 
Choices 140
Strategic Alliances and Collaborative Partnerships 141
The Pervasive Use of Alliances 143
Why and How Strategic Alliances Are Advantageous 144
Alliances and Partnerships with Foreign Companies 145
Why Many Alliances Are Unstable or Break Apart 146
The Strategic Dangers of Relying Heavily on Alliances and Collaborative 
Partnerships 146
Merger and Acquisition Strategies 146
Vertical Integration Strategies: Operating across More Stages of the Industry 
Value Chain 
150
The Strategic Advantages of Vertical Integration 150
The Strategic Disadvantages of Vertical Integration 151
Outsourcing Strategies: Narrowing the Boundaries of 
the Business 153
Advantages of Outsourcing 153
The Pitfalls of Outsourcing 155
Using Offensive Strategies to Secure Competitive Advantage 155
Basic Types of Offensive Strategies 156
Choosing Which Rivals to Attack 159
Choosing the Basis for Attack 159
Using Defensive Strategies to Protect the Company?s Position 160
Blocking the Avenues Open to Challengers 160
Signaling Challengers That Retaliation Is Likely 160
Strategies for Using the Internet as a Distribution Channel 161
Using the Internet Just to Disseminate Product Information 161
Using the Internet as a Minor Distribution Channel 162
Brick-and-Click Strategies: An Appealing Middle Ground 162
Strategies for Online Enterprises 163
Choosing Appropriate Functional-Area Strategies 166
First-Mover Advantages and Disadvantages 167
illustration capsules
6.1. How Clear Channel Has Used Mergers and Acquisitions to Become a Global 
Market 
Leader 149
6.2. Office Depot?s Brick-and-Click Strategy 164
6.3. The Battle in Consumer Broadband: First-Movers versus 
Late-Movers 169
	7.	Competing in Foreign Markets 172
Why Companies Expand into Foreign Markets 174
The Difference between Competing Internationally and Competing 
Globally 174
Cross-Country Differences in Cultural, Demographic, and Market Conditions 175
The Potential for Locational Advantages 176
The Risks of Adverse Exchange Rate Shifts 176
Host Government Policies 178
The Concepts of Multicountry Competition and Global Competition 178
Strategy Options for Entering and Competing in Foreign Markets 180
Export Strategies 180
Licensing Strategies 181
Franchising Strategies 181
A Multicountry Strategy or a Global Strategy? 182
The Quest for Competitive Advantage in Foreign Markets 185
Using Location to Build Competitive Advantage 185
Using Cross-Border Transfers of Competencies and Capabilities to Build 
Competitive Advantage 
187
Using Cross-Border Coordination to Build Competitive Advantage 188
Profit Sanctuaries, Cross-Market Subsidization, and Global Strategic Offensives 
189
Using Cross-Market Subsidization to Wage a Strategic Offensive 189
Global Strategic Offensives 191
Strategic Alliances and Joint Ventures with Foreign Partners 191
The Risks of Strategic Alliances with Foreign Partners 192
Making the Most of Strategic Alliances with Foreign Partners 193
Competing in Emerging Foreign Markets 195
Strategy Implications 196
Strategies for Local Companies in Emerging Markets 196
illustration capsules
7.1. Coca-Cola, McDonald?s, and Nestl: Users of Multicountry 
Strategies 184
7.2. Cross-Border Strategic Alliances 194
	8.	Tailoring Strategy to Fit Specific Industry and Company 
Situations 202
Strategies for Competing in Emerging Industries 203
Challenges When Competing in Emerging Industries 204
Strategic Avenues for Competing in an Emerging Industry 205
Strategies for Competing in Turbulent, High-Velocity Markets 206
Strategic Postures for Coping with Rapid Change 206
Strategic Moves for Fast-Changing Markets 208
Strategies for Competing in Maturing Industries 210
Industry Changes Resulting from Market Maturity 210
Strategic Moves in Maturing Industries 211
Strategic Pitfalls in Maturing Industries 212
Strategies for Firms in Stagnant or Declining Industries 213
Strategies for Competing in Fragmented Industries 214
Reasons for Supply-Side Fragmentation 214
Strategic Options for a Fragmented Industry 216
Strategies for Sustaining Rapid Company Growth 217
The Risks of Pursuing Multiple Strategy Horizons 218
Strategies for Industry Leaders 219
Strategies for Runner-Up Firms 221
Obstacles for Firms with Small Market Shares 222
Strategic Approaches for Runner-Up Companies 222
Strategies for Weak and Crisis-Ridden Businesses 224
Turnaround Strategies for Businesses in Crisis 225
Liquidation?the Strategy of Last Resort 228
End-Game Strategies 228
10 Commandments for Crafting Successful Business Strategies 229
Matching Strategy to Any Industry and Company Situation 230
illustration capsules
8.1. Yamaha?s Strategy in the Stagnant Piano Industry 215
8.2. How Microsoft Uses Its Muscle to Maintain Market Leadership 221
8.3. Lucent Technologies? Turnaround Strategy: Slow to Produce Results 227
	9.	Diversification: Strategies for Managing a Group of 
Businesses 234
When to Diversify 236
Factors That Signal It Is Time to Diversify 237
Building Shareholder Value: The Ultimate Justification for Diversifying 238
Strategies for Entering New Businesses 239
Acquisition of an Existing Business 239
Internal Start-Up 239
Joint Ventures and Strategic Partnerships 240
Choosing the Diversification Path: Related versus Unrelated 
Businesses 241
The Case for Diversifying into Related Businesses 241
Cross-Business Strategic Fits along the Value Chain 242
Strategic Fit, Economies of Scope, and Competitive Advantage 245
The Case for Diversifying into Unrelated Businesses 248
The Merits of an Unrelated Diversification Strategy 249
The Drawbacks of Unrelated Diversification 252
Combination Related?Unrelated Diversification Strategies 253
Evaluating the Strategy of a Diversified Company 254
Step 1: Evaluating Industry Attractiveness 255
Step 2: Evaluating Business-Unit Competitive Strength 258
Step 3: Checking the Competitive Advantage Potential of Cross-Business Strategic 
Fits 262
Step 4: Checking for Resource Fit 263
Step 5: Ranking the Business Units on the Basis of Performance and Priority for 
Resource 
Allocation 266
Step 6: Crafting New Strategic Moves to Improve Overall Corporate 
Performance 267
After a Company Diversifies: The Four Main Strategy Alternatives 269
Strategies to Broaden a Diversified Company?s Business Base 270
Divestiture Strategies Aimed at Retrenching to a Narrower 
Diversification Base 271
Strategies to Restructure a Company?s Business Lineup 273
Multinational Diversification Strategies 275
illustration capsules
9.1. Five Companies That Have Diversified into Related Businesses 246
9.2. Five Companies That Have Diversified into Unrelated Businesses 250
9.3. Managing Diversification at Johnson & Johnson 271
9.4. The Global Scope of Four Prominent Diversified Multinational Corporations 
276
	10.	Strategy, Ethics, and Social Responsibility 282
Strategy and Ethics 283
What Do We Mean by Business Ethics? 283
The Three Categories of Management Morality 284
What Are the Drivers of Unethical Strategies and Business Behavior? 285
Business Ethics in the Global Community 289
Approaches to Managing a Company?s Ethical Conduct 295
Why Should Company Strategies Be Ethical? 298
Linking a Company?s Strategies to Its Ethical Principles and Core Values 299
Strategy and Social Responsibility 301
What Do We Mean by Social Responsibility? 302
Linking Strategy and Social Responsibility 304
The Moral Case for Corporate Social Responsibility 305
The Business Case for Socially Responsible Behavior 306
The Controversy over Do-Good Executives 308
How Much Attention to Social Responsibility Is Enough? 310
Linking Social Performance Targets to Executive Compensation 310
illustration capsules
10.1. When Cultures Clash on Ethical Standards: Some Examples 291
10.2. Strategies to Gain New Business at Wall Street Investment Banking Firms: 
Ethical or 
Unethical? 300
Section D: Executing the Strategy
	11.	Building Resource Strengths and Organizational 
Capabilities 316
A Framework for Executing Strategy 318
The Principal Managerial Components of the Strategy Execution Process 319
Building a Capable Organization 321
Staffing the Organization 322
Putting Together a Strong Management Team 322
Recruiting and Retaining Capable Employees 322
Building Core Competencies and Competitive Capabilities 324
The Three-Stage Process of Developing and Strengthening Competencies and 
Capabilities 325
From Competencies and Capabilities to Competitive Advantage 327
The Strategic Role of Employee Training 328
Matching Organization Structure to Strategy 328
Deciding Which Value Chain Activities to Perform Internally and Which to 
Outsource 328
Making Strategy-Critical Activities the Main Building Blocks of the Organization 
Structure 331
Determining the Degree of Authority and Independence to Give Each Unit and Each 
Employee 
334
Providing for Internal Cross-Unit Coordination 337
Providing for Collaboration with Outside Suppliers and 
Strategic Allies 338
Perspectives on Structuring the Work Effort 339
Organizational Structures of the Future 340
illustration capsules
11.1. How General Electric Develops a Talented and Deep 
Management Team 323
11.2. Cross-Unit Coordination on Technology at 3M 
Corporation 339
	12.	Managing Internal Operations: Actions That Promote 
Better Strategy Execution 344
Marshaling Resources Behind the Drive for Good Strategy Execution 345
Instituting Policies and Procedures That Facilitate Strategy Execution 346
Adopting Best Practices and Striving for Continuous Improvement 349
How the Process of Identifying and Incorporating Best Practices Works 349
TQM and Six Sigma Quality Programs: Tools for Promoting Operational 
Excellence 351
Capturing the Benefits of Best-Practice and Continuous Improvement Programs 354
Installing Information and Operating Systems 356
Instituting Adequate Information Systems, Performance Tracking, and 
Controls 357
Exercising Adequate Controls over Empowered Employees 358
Tying Rewards and Incentives to Strategy Execution 359
Strategy-Facilitating Motivational Practices 359
Striking the Right Balance between Rewards and Punishment 362
Linking the Reward System to Strategically Relevant Performance Outcomes 362
illustration capsules
12.1. Graniterock?s ?Short Pay? Policy: An Innovative Way to Promote Strategy 
Execution 
348
12.2. Whirlpool?s Use of Six Sigma to Promote Operating Excellence 353
12.3. Companies with Effective Motivation and Reward Techniques 361
12.4. Nucor and Bank One: Two Companies That Tie Incentives Directly to Strategy 
Execution 363
	13.	Corporate Culture and Leadership: Keys to Good Strategy 
Execution 368
Building a Corporate Culture That Promotes Good Strategy 
Execution 369
What to Look for in Identifying a Company?s Corporate Culture 370
Culture: Ally or Obstacle to Strategy Execution? 373
Strong versus Weak Cultures 375
Unhealthy Cultures 376
Adaptive Cultures 378
Creating a Strong Fit between Strategy and Culture 379
Grounding the Culture in Core Values and Ethics 383
Establishing a Strategy?Culture Fit in Multinational and Global 
Companies 390
Leading the Strategy Execution Process 391
Staying on Top of How Well Things Are Going 391
Putting Constructive Pressure on the Organization to Achieve Good 
Results 392
Keeping the Internal Organization Focused on Operating Excellence 394
Leading the Development of Better Competencies and Capabilities 395
Displaying Ethical Integrity and Leading Social Responsibility Initiatives 395
Leading the Process of Making Corrective Adjustments 397
illustration capsules
13.1. The Culture at Alberto-Culver 370
13.2. The Culture-Change Effort at Alberto-Culver?s North American 
Division 384
13.3. Lockheed Martin?s Corrective Actions after Violating U.S. Antibribery Laws 
396
part twoCases in Crafting and Executing Strategy C-1
Section A: Crafting Strategy in Single-Business Companies
	1.	Starbucks in 2004: Driving for Global Dominance C-2
Arthur A. Thompson, The University of Alabama
Amit J. Shah, Frostburg State University
Thomas F. Hawk, Frostburg State University
	2.	Netflix C-33
Braxton Maddox, The University of Alabama
	3.	Azalea Seafood Gumbo Shoppe in 2004 C-42
John E. Gamble, University of South Alabama
	4.	Non Stop Yacht, S.L. C-58
Charlene Nicholls-Nixon, The University of Western Ontario
	5.	Competition in the Bottled Water Industry C-70
John E. Gamble, University of South Alabama
	6.	Dollar General and the Extreme Value Retailing Industry C-86
Sue A. Cullers, Tarleton State University
S. Stephen Vitucci, Tarleton State University?Central Texas
	7.	Growth Strategy and Slotting at No Pudge! Foods, Inc. C-102
Chris Robertson, Northeastern University
	8.	Dell Computer in 2003: Driving for Industry Leadership C-109
Arthur A. Thompson, The University of Alabama
John E. Gamble, University of South Alabama
	9.	Electronic Arts and the Global Video Game Industry C-140
Arthur A. Thompson, The University of Alabama
	10.	Nexity and the U.S. Banking Industry C-163
John Frank Yother, The University of Alabama
	11.	Making It Big C-185
Joan Winn, University of Denver
	12.	Outback Steakhouse C-197
Sarah June Gauntlett, University of Alabama
	13.	McDonald?s: Polishing the Golden Arches C-213
Lou Marino, The University of Alabama
Katy Beth Jackson, The University of Alabama
	14.	Maple Leaf Consumer Foods?Fixing Hot Dogs C-235
Allen Morrison, The University of Western Ontario
	15.	Krispy Kreme Doughnuts, Inc. C-245
Arthur A. Thompson, The University of Alabama
Amit J. Shah, Frostburg State University
	16.	Andrea Jung and Avon Products in 2003: Accelerating the 
Transformation C-267
John E. Gamble, University of South Alabama
	17.	eBay: In a League by Itself C-292
Louis Marino, The University of Alabama
Patrick Kreisler, The University of Alabama
	18.	Note on the Security Management and Manufacturers Industry C-318
Marilyn L. Taylor, University of Missouri?Kansas City
Theresa A. Coates, Rensselaer Polytechnic Institute
	19.	Pivot International?Pursuing Growth C-343
Marilyn L. Taylor, University of Missouri?Kansas City
Theresa A. Coates, Rensselaer Polytechnic Institute
	20.	Bayer AG: Children?s ASPIRIN C-360
Lauranne Buchanan, Thunderbird?The American Graduate School of International 
Management
Christopher K. Merker, Thunderbird?The American Graduate School of International 
Management
	21.	Harley-Davidson C-376
John E. Gamble, University of South Alabama
Roger Schfer, University of South Alabama
	22.	Hero Honda Motors (India) Ltd.: Is It Honda That Made It a Hero? C-
396
Kannan Ramaswamy, Thunderbird?The American Graduate School of International 
Management
Rahul Sanchez, Thunderbird?The American Graduate School of International 
Management
	23.	Puma AG C-411
Lutz Kaufmann, The WHU Otto Beisheim Graduate School of Management
	24.	The Globalization of Beringer Blass Wine Estates C-433
Armand Gilinsky, Jr., Sonoma State University
Raymond H. Lopez, Pace University
Richard Castaldi, San Francisco State University
Section B: Crafting Strategy in Diversified Companies
	25.	Land O?Lakes, Inc. C-461
Michael A. Boland, Kansas State University
Vincent Amanor-Boadu, Kansas State University
David Barton, Kansas State University
	26.	Unilever?s Path to Growth Strategy: Is It Working? C-479
Arthur A. Thompson, The University of Alabama
	27.	LVMH?s Diversification Strategy into Luxury Goods C-509
John E. Gamble, University of South Alabama
Section C: Implementing and Executing Strategy
	28.	Robin Hood C-532
Joseph Lampel, New York University
	29.	Procter & Gamble: Organization 2005 and Beyond C-534
Ravi Madapati, ICFAI Knowledge Center
	30.	The Global Leadership of Carlos Ghosn at Nissan C-546
John P. Millikin, Thunderbird?The American Graduate School of International 
Management
Dean Fu, Thunderbird?The American Graduate School of International Management
	31.	Wal-Mart Stores, Inc.: A New Set of Challenges C-557
Arthur A. Thompson, The University of Alabama
	32.	Kmart: Striving for a Comeback C-583
John E. Gamble, University of South Alabama
	33.	The Portman Ritz-Carlton: Asia?s Best Employer C-603
Matthew Chang, International Institute for Management Development
Ellie Weldon, International Institute for Management Development
	34.	Continental Airlines in 2003: Sustaining the Turnaround C-611
Arthur A. Thompson, The University of Alabama
	35.	Southwest Airlines: Culture, Values, and Operating Practices C-636
Arthur A. Thompson, The University of Alabama
John E. Gamble, The University of South Alabama
Section D: Strategy, Ethics, and Social Responsibility
	36.	Benziger Family Winery C-665
Murray Silverman, San Francisco State University
Tom Lanphar, California Department of Toxic Substances Control
	37.	Andy Decker and the Ethics of Downloading Music from the Internet 
C-680
Janet Rovenpor, Manhattan College
indexes
Organization I-1
Name I-13
Subject I-19
endnotes

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