need report on chapter 3 and chapter 4 only
Introduction : One page
Description: 20-25 pages
My understanding: 2-3 pages
Implications (Your past experience): 1-2 page
Conclusions
References: 10-12
chapter 3&4 page number 115 to 182
ASSESSING THE INTERNAL ENVIRONMENT OF THE FIRM
CHAPTER 3
1
FLOW OF PRESENTATION
THE PRIMARY ACTIVITIES OF A FIRMS VALUE CHAIN
THE RESOURCE-BASED VIEW OF THE FIRM AND THE DIFFERENT TYPES OF
Tangible, intangible resources and organizational capabilities
EVALUATING FIRM PERFORMANCE
Balanced scorecard
Financial ratio analysis
2
LEARNING OBJECTIVES
After reading this chapter, you should have a good understanding of:
The primary activities of a firms value chain.
The resource-based view of the firm and the different types of
Tangible and intangible resources
Organizational capabilities.
The usefulness of financial ratio analysis, its inherent limitations, and how to make meaningful comparisons of performance across firms.
The value of the balanced scorecard in recognizing how the interests of a variety of stakeholders can be interrelated.
3
DISCUSSION QUESTION 1
Why did Twitter go from an exciting, growing firm to a firm with a flat user base so quickly?
First, for firms to develop a sustainable advantage, they need to develop a unique set of resources that are difficult to imitate.
The firm did not have the resources and capabilities needed to see and grab on innovative service offerings (resource limitation).
Facebook users could use a similar group chat function on Facebook.
4
DISCUSSION QUESTION
Discussion Question 2: What could the firm have done to avoid this situation? (THINK)
Discussion Question 3: What options does the firm have to get back on a path to success? (THINK)
5
INTERNAL ENVIRONMENT OF BUSINESS
The internal environment of business refers to all the factors or forces that have a more direct impact on the daily activities of the company.
The main factors in the internal environment are:
Financial resources like funding, investment opportunities and sources of income.
Physical resources like company’s location, equipment, and facilities.
Human resources like employees, target audiences, and volunteers.
6
The Importance of the Internal Environment
Which activities must a firm effectively manage and integrate in order to attain competitive advantages in the marketplace?
Which resources and capabilities must a firm create and nurture in order to sustain a competitive advantage?
Aninternal analysisprovides the means to identify the strengths to build on and the weaknesses to overcome when formulating strategies.
It isimportantto recognize potential opportunities and threats outside company operations (External analysis)
7
VALUE-CHAIN ANALYSIS
Value-chain analysis views the organization as a sequential process of value-creating activities. Value is the amount that buyers are willing to pay for what a firm provides for them.
And, a firm is profitable to the extent that the value that it receives exceeds the total costs involved in creating the product or service.
8
VALUE-CHAIN ANALYSIS PRIMARY ACTIVITIES
Primary activities contribute to the physical creation of the product or service; the sale & transfer to the buyer; and service after the sale.
Inbound logistics
Operations
Outbound logistics
Marketing & sales
Service
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ROLE OF LOGISTICS IN SUPPLY CHAIN
10
PRIMARY ACTIVITY: INBOUND LOGISTICS
Inbound logistics are primarily associated with receiving, storing & distributing inputs to the product.
Material handling
Warehousing
Inventory control
Vehicle scheduling
Returns to suppliers
Discussion Question 4: How does this JIT system help Toyota to enhance its competitive advantages?
11
PRIMARY ACTIVITY: OPERATIONS
Operations include all activities associated with transforming inputs into the final product form.
Machining
Packaging & Assembly
Testing or quality control
Printing
Facility operations
EXAMPLE: Shaw Industries (now part of Berkshire Hathaway), the worlds largest carpet manufacturer, became known for its strong concern about the natural environment. They have received numerous awards for their recycling efforts.
12
PRIMARY ACTIVITY: OPERATIONS
What automobile firms do you feel have been most successful in sustaining a green strategy? Why?
Toyota, GM and Volkswagen
Read The Research Paper: On Green Strategy: Effect on Automotive Industry of Pakistan
Chipotles unique approach to improving its operational efficiency.
13
PRIMARY ACTIVITY: OUTBOUND LOGISTICS
Outbound logistics includes collecting, storing, & distributing the product or service to buyers.
Finished goods & warehousing
Material handling
Delivery vehicle operation
Order processing, scheduling & distribution
DISCUSSION QUESTION 5: How does the use of EDI (electronic data interchange) help Campbell Soup to enhance its competitive advantages in the marketplace?
CEOMark ClouseCampbell’s CEO, effective January 22, 2019 ( continuous-replenishment)
14
PRIMARY ACTIVITY:
MARKETING & SALES
Marketing & sales activities involve purchases of products & services by end users and includes how to induce buyers to make those purchases.
Advertising & promotion
Sales force management
Pricing & price quoting
Channel selection & channel relations
Mercedes Benzs effective use of product placement in the film Spectre and numerous other blockbuster movies.
15
PRIMARY ACTIVITY: SERVICE
Service includes all actions associated with providing service to enhance or maintain the value of the product.
Installation & repair
Training
Parts supply
Product adjustment
Sephora.com- Launched in the U.S. in 1999 and Canada in 2003, the foremost prestige beauty site on the Internet
16
TYPES OF TANGIBLE FIRM RESOURCES
Tangible resources are assets that are relatively easy to identify.
Physical assets: plant & facilities, location, machinery & equipment
Financial assets: cash & cash equivalents, borrowing capacity, capacity to raise equity
Technological resources: trade secrets, patents, copyrights, trademarks, innovative production processes
Organizational resources: effective planning processes, evaluation & control systems
17
TYPES OF INTANGIBLE FIRM RESOURCES
Intangible resources are difficult for competitors to account for or imitate. They are embedded in unique routines & practices.
Human resources: trust, experience & capabilities of employees; managerial skills & effectiveness of work teams, firm specific practices & procedures
Innovation resources: technical & scientific expertise & ideas; innovation capabilities
Reputation resources: brand names, reputation for fairness with suppliers, non-zero sum relationships; reputation for reliability & product quality with customers
18
TYPES OF FIRM RESOURCES:
ORGANIZATIONAL CAPABILITIES
Organizational capabilities are competencies or skills that a firm employs to transform inputs into outputs. It is the capacity to combine tangible & intangible resources to attain desired ends.
Outstanding customer service
Excellent product development capabilities
Superb innovation processes & flexibility in manufacturing processes
Ability to hire, motivate, & retain human capital
Gillette’s new razor adds heating instead of more blades
Yes, the experience of a hot-towel(ish) shave is steeper than your garden variety razor — $160 will get you the five-blade heated razor when it eventually gets to stores.
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23
24
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EVALUATING FIRM PERFORMANCE
BALANCED SCORECARD ANALYSIS
The balanced scorecard enables managers to consider their business from four key perspectives:
How do customers see us? (customer perspective)
What must we excel at? (internal perspective)
Can we continue to improve and create value? (innovation and learning perspective)
How do we look to our shareholders? (financial perspective)
26
EVALUATING FIRM PERFORMANCE
FINANCIAL RATIO ANALYSIS
Balance sheet
Income statement
Market valuation
Historical comparison
Comparison with industry norms
Comparison with key competitors
27
FINANCIAL RATIO ANALYSIS
Three types of financial ratios:
LIQUIDITY RATOIS
PROFITABILTY RATIOS
LEVERAGE RATIOS
Meaningful ratio analysis must include:
Analysis of how ratios change over time
Comparison with industry norms
Comparison with key competitors
28
DISCUSSION QUESTION : 6
29
Think of COMPANY which added value in firms value chain?
Whole Foods high-quality organic food that is GMO-free.
SUMMARY
*What is value? Why is this mapping called value chain?
Value, in competitive terms, means the amount the buyers are willing to pay for a firms products or services. Value is measured by total revenue. A firm is profitable when the value it receives exceeds its costs of production.
The mapping is called a value chain because, in this analysis, the organization is viewed as a sequential process of value-creating activities.
30
SUMMARY
Primary activities:
Inbound logistics: Activities associated with receiving, storing and distributing inputs to the product. These are activities such as material handling, warehousing, inventory control, vehicle scheduling and returns to the suppliers.
Operations: Activities connected with transforming inputs into outputs. These are machining, assembly, packaging, testing etc.
Outbound logistics: Activities associated with collecting, storing and distributing the product or service to buyers. Includes finished goods warehousing, material handling, order processing etc.
31
SUMMARY
Marketing and sales: Activities associated with purchases of products and services by the buyers including activities to induce them to purchase. Advertising, promotion, channel selection, channel relations, pricing, etc., come under this category.
Service: Includes all activities associated with providing service to enhance or maintain the value of the product, such as installation, repair, training, parts supply and product adjustment.
32
DISCUSSION OF THE DAY
33
The Value Chain: Consider the most important linkages between the activities you perform in your organization with other activities both within your firm, as well as between your firm and its suppliers, customers and alliance partners. Understanding and strengthening these linkages can contribute greatly to your career advancement within your current organization.
Resource-Based View : Are your skills and talents rare, valuable, difficult to imitate, and do they have few substitutes? How can your skills and talents be enhanced to help satisfy these criteria to a greater extent? More training? Change positions within the firm? Consider career options at other organizations?
REFERENCES
Chipotle 2014 Annual Report:http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irol-reportsAnnual
Chipotle Press Release: http://ir.chipotle.com/phoenix.zhtml?c=194775&p=RssLanding&cat=news&id=2081437
Fast Company: http://www.fastcompany.com/3027647/lessons-learned/how-chipotle-changed-american-fast-food-forever
Restaurant Business Online: http://www.restaurantbusinessonline.com/ideas/50-great-ideas/chipotles-pillars-throughput
Entrepreneur: http://www.entrepreneur.com/article/226997
34
REFERENCES
Rutsch, Edward S; Fischer, Robert A; Historic Conservation & Interpretation (Firm: Patterson, N.J.); Cooper’s Ferry Development Association (1987).Documentary research and photographic recording, Campbell Soup Company Plant No. 2, Camden, New Jersey. Newton, N.J.: Historic Conservation and Interpretation, Inc.OCLC24632144.
“Campbell Soup end of era”.Newspapers.com. RetrievedApril 28,2019.
“Campbell Soup announces four plant closings”.UPI. RetrievedApril 28,2019.
“Campbell Shutdown Leaves Town in the Soup”.Los Angeles Times. March 2, 1990.ISSN0458-3035. RetrievedApril 28,2019.
35
THANK YOU
36 RECOGNIZING A FIRMS INTELLECTUAL ASSETS:
MOVING BEYOND A FIRMS TANGIBLE RESOURCES
CHAPTER 4
FLOW OF PRESENTATION
The Central Role of Knowledge in Todays Economy
The Central Role of Knowledge
Human Capital
Retaining Human Capital
Social Network Analysis
Protecting the Intellectual Assets of the Organization: Intellectual Property and Dynamic Capabilities
The Central Role of Knowledge in Todays Economy
Intellectual capital is a measure of the value of a firms intangible assets the difference between a firms market value & book value. It includes these assets:
Reputation
Employee loyalty & commitment
Customer relationships
Company values
Brand names
Experience & skills of employees
BOOK VALUE VS MARKET VALUE
The book value is literally the value of the company according to its books (balance sheet) once all liabilities are subtracted from assets.
Themarket valueis the value of acompany according to the financial markets. The market value of a company is calculated by multiplying the current stock price bythe number of outstanding shares that aretrading in the market. Market valueis also known asmarket capitalization.
Comparing the book value to the market value of a company can also helpinvestors determinewhether a stock is overvalued or undervalued
The Central Role of Knowledge in Todays Economy
Bill Gates has reflected that if 20 of Microsofts key people were to leave, the company would risk bankruptcy.
In a study by the Corporate Leadership Council, a computer firm recognized 100 core competent out of 16,000 employees; and a transportation group deemed 20 of its 33,000 employees as really critical.
THE CENTRAL ROLE OF KNOWLEDGE
Human capital includes the individual capabilities, knowledge, skills, and experience of the companys employees and managers.
Social capital includes the network of relationships that individuals have throughout the organization.
Knowledge includes:
Explicit knowledge codified, documented, easily reproduced, and widely distributed
Tacit knowledge in the minds of employees, based on their experiences and backgrounds.
Organizations that use and recognize the employees’ wealth oftacitand explicitknowledgeachieve a competitive advantage.
TRANSFER OF TACIT KNOWLEDGE IS ESSENTIAL
Decades ago, Polanyi (1966) explained that people can know more than they are able to tell.
There is increasing evidence that tacit knowledge is the important strategic resource that assists in accomplishing a task (Woo, 2004).
Tacit knowledge is often demonstrated as practical intelligence rather than abstract, academic intelligence.
WAYS TO TRANSFER TACIT KNOWLEDGE
Collaboration and Social Networks
Show Your Work
Book: Show Your Work, Bozarth (2014)
On June 20, 2013, Rafael J. Grossmann, was the first surgeon to demonstrate the use of Google Glass during a live surgical procedure. In August 2013, Google Glass was used atWexner Medical Center at Ohio State University. Surgeon Dr. Christopher Kaeding used Google Glass to consult with a distant colleague inColumbus, Ohio. A group of students at The Ohio State University College of Medicine also observed the operation on their laptop computers.
Storytelling
It shouldnt be surprising then, that organizational stories are considered an effective way to capture and transmit tacit knowledge
Tracking Lessons Learned
Guided Experience
Human Capital
ATTRACTING HUMAN CAPITAL THROUGH ESTABLISHING A REPUTATION FOR GROWTH AND DEVELOPMENT
PepsiCo and Procter & Gamble also have traditionally enjoyed similar reputations. In recent years, companies such as Cisco, Campbell Soup, and Google.
Indian software firm Infosys Technologies has been discovered as a company with a deep reservoir of managerial talent. This innovative firm runs a 334-acre training institute, even bigger than GEs. internationally. Provides one year training to managers.
DEVELOPING (Monitoring) HUMAN CAPITAL
Training and development must take place at all levels of the organization.
Requires the active involvement of leaders at all levels
Includes mentoring & sponsoring lower-level employees
Emphasizes the need to monitor progress & track development so knowledge can be shared
At P&G, people and positions are tracked via its technology-based talent management system. It accommodates all the firms 95,000 employees, 66.83billion USD
P & G PRODUCTS
Ariel, Dawndishwashing, Gilletterazors, Head & Shouldersshampoo
Olaypersonal and beauty products, Oral-Binter-dental products
Pampers & Pampers Kandoo, Pantenehaircare products , Tidelaundry detergents and products , Vickscough and cold product
RETAINING HUMAN CAPITAL
Provide challenging work and a stimulating environment.
Offer financial and nonfinancial rewards & incentives.
While American workers often aim to maximize their productivity by tapping out emails on BlackBerrys or working on their laptops.
Koreans and Japanese are more likely to be using the latest digital devices to play videogames or send messages to friends
WHAT MAKES GOOGLE SO GREAT TO WORK FOR?
Google staff, or Googlers, are everything to the company as it commits to encourage innovation. Google began in January 1996 as a research project byLarry PageandSergey Brinwhen they were both PhD students atStanford University. Googles:$27.77 billionrevenue
WHAT MAKES GOOGLE SO GREAT TO WORK FOR?
Google even offers death benefits to deceased employees’ families. If a Google employee passes away, his or her domestic partner or spouse receives a check for 50% of the employee’s salary every year for 10 years.
Google also offers a Global Education Leave program,
To help with morale, employees are free to bring their pets to work.
WHAT MAKES GOOGLE SO GREAT TO WORK FOR?
Google offers on-site physicians, nurses, medical services and health care coverage to keep its employees happy and healthy. Googlers can travel without worries; employees are covered with travel insurance and emergency assistance on both personal and work-related vacations.
Google also offers some of the best paid parental leave for new parents. Its employees have paid leave up to 18 weeks if the father is the primary caregiver. Mothers are still entitled to 22 weeks of maternity leave
SOCIAL NETWORK ANALYSIS
Thus, the development of social capitalfriendships and working relationships among talented individuals, helps to tie knowledge workers to a given firm.
Theaimofsocial network analysisis to understand a community by mapping the relationships that connect them as anetwork, and then trying to draw out key individuals, groups within thenetwork.
Example: Social Network Analysis
NETWORKS & ELECTRONIC TEAMS: SHARING INFORMATION & ENHANCING COLLABORATION
Justin Kruger, of New York Universitys Stern School of Business, has found that as few as 50 percent of users grasp the tone or intent of an e-mail.
The U.S. Bureau of Labor Statistics (BLS) reports that the average person working 45 hours per week earns 44 percent more than someone who works only 40 hours
Business has undervalued the social dimension of communication.
Protecting the Intellectual Assets of the Organization: Intellectual Property and Dynamic Capabilities
Apple has finally won $120 million from Samsung in slide-to-unlock patent battle
REFERENCES
“Apple Inc. v. Samsung Electronics Co. Ltd. et al”.United States District Court, Northern District of California. RetrievedAugust 11,2012.
Barrett, Paul M. (March 29, 2012).”Apple’s War on Android”.Bloomberg Businessweek.Bloomberg. RetrievedMarch 29,2012.
Albanesius, Chloe (September 14, 2011).”Every Place Samsung and Apple Are Suing Each Other”.PC Magazine.Ziff Davis. RetrievedAugust 11,2012.
Pyett, Amy; Feast, Lincoln; Davies, Ed (October 27, 2011).”Australian court to fast-track Samsung appeal on tablet ban”.Reuters. Sydney:Thomson Reuters. RetrievedAugust 11,2012.
Mller, Florian(July 24, 2012).”Apple seeks $2.5 billion in damages from Samsung, offers half a cent per standard-essential patent”.FOSS Patents. RetrievedJuly 28,2012.
“U.S. ITC says Apple infringes Samsung patent, bans some products”. Reuters. 2013-06-04.
REFERENCES
Source: Crainer, S. & Dearlove, D. 1999. Death of executive talent. Management Review, JulyAugust: 22.
Source: Anonymous. 2011. Best companies to work for 2011. www.finance.yahoo.com. January 20: np.
Source: McGregor, J. 2009. CEO breeding grounds: Looking beyond GE and P&G for talent. Bloomberg Businessweek. April 11: 38
Source: Anonymous. 2011. Best companies to work for 2011. www.finance.yahoo.com. January 20: np.
Source: Anonymous. 2007. Why telecommuting remains rare in Japan, South Korea. Wall Street Journal. March 1718: A5.
Source: Brady, D. 2006., *[emailprotected] the e-mail. Can we talk? BusinessWeek, December 4: 109.
REFERENCES
Bozarth, Jane (2014). Show Your Work. San Francisco: Wiley.
Eraut, M (2000). Non-formal learning and tacit knowledge in professional work.British Journal of Educational Psychology,70,113-136.
Harris, R. (2009). Improving tacit knowledge transfer within SMEs throughecollaboration.Journal of European Industrial Training, Vol. 33 Issue: 3, pp.215-231.
Hedlund, J. et. al. (2003). Identifying and assessing tacit knowledge: understanding the practical intelligence of military leaders.The Leadership Quarterly14, 117140.
THANK YOU des13959_fm_i-xliv.inddi 01/04/18 10:01 AM
GREGORY G. DESS
University of Texas at Dallas
GERRY McNAMARA
Michigan State University
ALAN B. EISNER
Pace University
SEUNG-HYUN (SEAN) LEE
University of Texas at Dallas
text & cases
ninth edition
STRATEGIC
MANAGEMENT
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STRATEGIC MANAGEMENT: TEXT AND CASES, NINTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright 2019 by McGraw-
Hill Education. All rights reserved. Printed in the United States of America. Previous editions 2016,
2014, and 2012. No part of this publication may be reproduced or distributed in any form or by any means,
or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education,
including, but not limited to, in any network or other electronic storage or transmission, or broadcast for
distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside
the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 LWI 21 20 19 18
ISBN 978-1-259-81395-5 (bound edition)
MHID 1-259-81395-9 (bound edition)
ISBN 978-1-259-89997-3 (loose-leaf edition)
MHID 1-259-89997-7 (loose-leaf edition)
ISBN 978-1-259-89994-2 (instructors edition)
MHID 1-259-89994-2 (instructors edition)
Portfolio Director: Michael Ablassmeir
Lead Product Developer: Kelly Delso
Product Developer: Anne Ehrenworth
Executive Marketing Manager: Debbie Clare
Content Project Managers: Harvey Yep (Core), Bruce Gin (Assessment)
Buyer: Susan K. Culbertson
Design: Matt Diamond
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Cover Image: Anatoli Styf/Shutterstock
Compositor: SPi Global
All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.
Library of Congress Cataloging-in-Publication Data
Names: Dess, Gregory G., author. | McNamara, Gerry, author. | Eisner, Alan B., author.
Title: Strategic management : text and cases / Gregory G. Dess, University of
Texas at Dallas, Gerry McNamara, Michigan State University, Alan B.
Eisner, Pace University.
Description: Ninth edition. | New York, NY : McGraw-Hill Education, [2019]
Identifiers: LCCN 2017052281 | ISBN 9781259813955 (alk. paper)
Subjects: LCSH: Strategic planning.
Classification: LCC HD30.28 .D4746 2019 | DDC 658.4/012dc23 LC record available at
https://lccn.loc.gov/2017052281
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website
does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education
does not guarantee the accuracy of the information presented at these sites.
mheducation.com/highered
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To my family, Margie and Taylor and my parents,
the late Bill and Mary Dess; and Michael Wood
To my first two academic mentorsCharles Burden
and Les Rue (of Georgia State University)
Greg
To my wonderful wife, Gaelen, my children,
Megan and AJ; and my parents, Gene and Jane
Gerry
To my family, Helaine, Rachel, and Jacob
Alan
To my family, Hannah, Paul and Stephen; and my
parents, Kenny and Inkyung.
Sean
DEDICATION
dedication
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Gregory G. Dess
is the Andrew R. Cecil Endowed Chair in Management
at the University of Texas at Dallas. His primary research
interests are in strategic management, organization-
environment relationships, and knowledge management.
He has published numerous articles on these subjects
in both academic and practitioner-oriented journals. He
also serves on the editorial boards of a wide range of
practitioner-oriented and academic journals. In August
2000, he was inducted into the Academy of Management
Journals Hall of Fame as one of its charter members.
Professor Dess has conducted executive programs in
the United States, Europe, Africa, Hong Kong, and
Australia. During 1994 he was a Fulbright Scholar in
Oporto, Portugal. In 2009, he received an honorary
doctorate from the University of Bern (Switzerland).
He received his PhD in Business Administration from
the University of Washington (Seattle) and a BIE degree
from Georgia Tech.
Gerry McNamara
is the Eli Broad Professor of Management at Michigan
State University. His research draws on cognitive and
behavioral theories to explain strategic phenomena,
including strategic decision making, mergers and
acquisitions, and environmental assessments. His
research has been published in the Academy of
Management Journal, the Strategic Management Journal,
Organization Science, Organizational Behavior and Human
Decision Processes, the Journal of Applied Psychology, the
Journal of Management, and the Journal of International
Business Studies. Gerrys research has also been
abstracted in the Wall Street Journal, Harvard Business
Review, New York Times, Bloomberg Businessweek, the
Economist, and Financial Week. He serves as an Associate
Editor for the Strategic Management Journal and
previously served as an Associate Editor for the Academy
of Management Journal. He received his PhD from the
University of Minnesota.
ABOUT THE AUTHORS
about the
authors
He GaoPhoto provided by the author
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Alan B. Eisner
is Professor of Management and Department Chair,
Management and Management Science Department,
at the Lubin School of Business, Pace University.
He received his PhD in management from the Stern
School of Business, New York University. His primary
research interests are in strategic management,
technology management, organizational learning,
and managerial decision making. He has published
research articles and cases in journals such as Advances
in Strategic Management, International Journal of
Electronic Commerce, International Journal of Technology
Management, American Business Review, Journal of
Behavioral and Applied Management, and Journal of the
International Academy for Case Studies. He is the former
Associate Editor of the Case Associations peer-reviewed
journal, The CASE Journal.
Seung-Hyun Lee
is a Professor of strategic management and international
business and the Area Coordinator of the Organization,
Strategy, and International Management area at the
Jindal School of Business, University of Texas at Dallas.
His primary research interests lie on the intersection
between strategic management and international
business spanning from foreign direct investment to
issues of microfinance and corruption. He has published
in numerous journals including Academy of Management
Review, Journal of Business Ethics, Journal of International
Business Studies, Journal of Business Venturing, and
Strategic Management Journal. He received his MBA and
PhD from the Ohio State University.
Seung-Hyun LeeAlan B. Eisner
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PREFACE
Welcome to the Ninth Edition of Strategic Management:
Text and Cases! As noted on the cover, we are happy to introduce Seung-
Hyun Lee to the author team. Greg has known Seung since we both joined the
faculty at the University of Texas at Dallas in 2002. Seung has developed a very
distinguished publication record in both strategic management and international
business/international management and he has made many important
contributions in these areas in the present edition. In particular, his international
expertise has been particularly valuable in further globalizing our book.
We appreciate the constructive and positive feedback that we have received on our
work. Heres some of the encouraging feedback we have received from our reviewers:
The Dess book comprehensively covers the fundamentals of strategy and supports concepts with
research and managerial insights.
Joshua J. Daspit, Mississippi State University
Very engaging. Students will want to read it and find it hard to put down.
Amy Grescock, University of Michigan, Flint
Very easy for students to understand. Great use of business examples throughout the text.
Debbie Gilliard, Metropolitan State University, Denver
I use Strategic Management in a capstone course required of all business majors, and students appreciate
the book because it synergizes all their business education into a meaningful and understandable whole.
My students enjoy the books readability and tight organization, as well as the contemporary examples,
case studies, discussion questions, and exercises.
William Sannwald, San Diego State University
The Dess book overcomes many of the limitations of the last book I used in many ways: (a)
presents content in a very interesting and engrossing manner without compromising the depth and
comprehensiveness, (b) inclusion of timely and interesting illustrative examples, and (c) EOC exercises
do an excellent job of complementing the chapter content.
Sucheta Nadkami, University of Cambridge
The content is current and my students would find the real-world examples to be extremely interesting.
My colleagues would want to know about it and I would make extensive use of the following features:
Learning from Mistakes, Strategy Spotlights, and Issues for Debate. I especially like the
Reflecting on Career Implications feature. Bottom line: the authors do a great job of explaining
complex material and at the same time their use of up-to-date examples promotes learning.
Jeffrey Richard Nystrom, University of Colorado at Denver
We always strive to improve our work and we are most appreciative of the extensive and
thoughtful feedback that many strategy professionals have graciously given us. We endeavored
to incorporate their ideas into the Ninth Editionand we acknowledge them by name later in
the Preface.
We believe we have made valuable improvements throughout our many revised editions of
Strategic Management. At the same time, we strive to be consistent and true to our original
overriding objective: a book that satisfies three Rsrigor, relevance, and readable. And we are
preface
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pleased that we have received feedback (such as the comments on the previous page) that is
consistent with what we are trying to accomplish.
What are some of the features in Strategic Management that reinforce the 3 Rs? First, we
build in rigor by drawing on the latest research by management scholars and insights from
management consultants to offer a current a current and comprehensive view of strategic issues.
We reinforce this rigor with our Issues for Debate and Reflecting on Career Implications. . .
that require students to develop insights on how to address complex issues and understand how
strategy concepts can enhance their career success. Second, to enhance relevance, we provide
numerous examples from management practice in the text and Strategy Spotlights (sidebars).
We also increase relevance by relating course topic and examples to current business and societal
themes, including environmental sustainability, ethics, globalization, entrepreneurship, and data
analytics. Third, we stress readability with an engaging writi
