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Library of Congress Cataloging-in-Publication Data
Dess, Gregory G. Strategic management : text and cases / Gregory G. Dess, G.T. Lumpkin, Alan B. Eisner, Gerry McNamara.—Seventh edition. pages cm Includes bibliographical references and index. ISBN 978-0-07-786252-7 (alk. paper)—ISBN 0-07-786252-X (alk. paper) 1. Strategic planning. I. Lumpkin, G. T. II. Eisner, Alan B. III. Title. HD30.28.D4743 2014 658.4’012—dc23 2013029306
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.
www.mhhe.com
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To my family, Margie and Taylor; my parents, Bill and Mary Dess; and Walter Descovich
–Greg
To my lovely wife, Vicki, and my students and colleagues
–Tom
To my family, Helaine, Rachel, and Jacob
–Alan
To my wonderful wife, Gaelen; my children, Megan and AJ; and my parents, Gene and Jane
–Gerry
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 Journal ’s 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.
G. T. (Tom) Lumpkin is the Chris J. Witting Chair and Professor of Entrepreneurship at Syracuse University in New York. Prior to joining the faculty at Syracuse, Tom was the Kent Hance Regents Endowed Chair and Professor of Entrepreneurship at Texas Tech University. His research interests include entrepreneurial orientation, opportunity recognition, strategy-making processes, social entrepreneurship, and innovative forms of organizing work. He has published numerous research articles in journals such as Strategic Management Journal, Academy of Management Journal, Academy of Management Review, Journal of Business Venturing, and Entrepreneurship: Theory and Practice. He is a member of the editorial review boards of Strategic Entrepreneurship Journal, Entrepreneurship Theory & Practice, and the Journal of Business Venturing. He received his PhD in management from the University of Texas at Arlington and MBA from the University of Southern California.
ABOUT THE AUTHORS
about the authors
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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 Association’s peer reviewed journal, The CASE Journal.
Gerry McNamara is a Professor of Management at Michigan State University. He received his PhD from the Carlson School of Management at the University of Minnesota. His research focuses on strategic decision making, organizational risk taking, and mergers and acquisitions. His research has been published in numerous journals, including the Academy of Management Journal, Strategic Management Journal, Organization Science, Organizational Behavior and Human Decision Processes, Journal of Management, and Journal of International Business Studies. His research on mergers and acquisitions has been abstracted in the New York Times, Bloomberg Businessweek, The Economist, and Financial Week. He is currently an Associate Editor for the Academy of Management Journal.
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PREFACE
preface
Welcome to the Seventh Edition of Strategic Management: Text and Cases! We are all very pleased with the positive market response to our previous edition. Below is some of the encouraging feedback we have received from our reviewers:
The text is thorough and all-inclusive. I don’t need to refer to another book as a back-up. It addresses all aspects of strategic management from the initial inspiration of a vision to the nuts and bolts of putting the plan to work. It is well structured; it is clear how each chapter not only builds on the previous ones, but also how analysis, formulation, and implementation are interrelated.
Lois Shelton, California State University, Northridge
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 book’s readability and tight organization, as well as the contemporary examples, case studies, discussion questions and exercises.
William Sannwald, San Diego State University
It is very easy for students to read because it presents strategy concepts in a simple but comprehensive manner. It covers important developments in the strategic management field that are usually ignored by other textbooks (e.g., concepts like social networks and social capital, the balanced scorecard, and new forms of organizational structure).
Moses Acquaah, University of North Carolina at Greensboro
Content is current and easy for students to grasp; good graphs and charts to illustrate important points in the chapter. Book is well organized around the AFI framework.