Ultrasound tech salary fresno ca

# Unique ID Case Ticker Primary Industry Sector

Industry Type

Firm Size Public

Chapter Part 1: Analysis Part 2: Formulation Part 3: Implementation

Retail Mfg Service Tech Primary Secondary

Vision, Mission, Values

Strategic Leadership

Strategy Process

External Analysis

Internal Analysis

Sustainability, Triple Bottom Line

Business Models

Business Strategy

Innovation & Entrepreneurship

Corporate Strategy

Strategic Alliances

Mergers & Acquisitions

Global Strategy

Structure & Culture

Control & Reward Systems

Corporate Governance

Business Ethics

1 MHE-FTR-037-1259420477 Facebook, Inc. FB Social Media ■ ■ medium yes 5, 6 4, 7 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

2 MHE-FTR-030-1259420477 Better World Books and the Triple Bottom Line N/A Retail — ECommerce & Books ■ ■ ■ small no 1, 5 2, 3 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

3 MHE-FTR-032-1259420477 Tesla Motors, Inc. TSLA Electric Cars & Battery Storage ■ ■ ■ medium yes 3, 4 6, 7 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

4 MHE-FTR-031-1259420477 Apple, Inc. AAPL Consumer Electronics & Online Services ■ ■ ■ large yes 6, 7 4, 10 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

5 MHE-FTR-040-1259420477 The Movie Exhibition Industry N/A Entertainment ■ ■ medium no 1, 3 5, 6 ■ ■ ■ ■

6 MHE-FTR-038-1259420477 McDonald's Corporation MCD Restaurant—Fast Food ■ ■ large yes 6, 10 3, 4 ■ ■ ■ ■ ■ ■ ■ ■ ■

7 MHE-FTR-035-1259420477 Google Inc. GOOG Online Advertising & Information Industry ■ ■ large yes 3, 7 4, 8 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

8 MHE-FTR-039-1259420477 Best Buy Co., Inc. BBY Retail—Consumer Electronics ■ ■ large yes 3, 4 6, 9 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

9 MHE-FTR-028-1259420477 Delta Air Lines, Inc. DAL Airline ■ large yes 6, 10 3, 4 ■ ■ ■ ■ ■ ■ ■ ■

10 MHE-FTR-033-1259420477 Amazon.com, Inc. AMZN Retail—Ecommerce & Web Services ■ ■ ■ large yes 3, 8 4, 7 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

11 MHE-FTR-029-1259420477 Merck & Co., Inc. MRK Pharmaceutical & Biotech ■ ■ large yes 7, 9 8, 11 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

12 MHE-FTR-034-1259420477 IBM at the Crossroads IBM IT & Big Data ■ ■ large yes 3, 8 6, 7 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

13 MHE-FTR-036-1259420477 General Electric after GE Capital GE Conglomerate ■ ■ ■ large yes 8, 11 9, 12 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

14 MHE-FTR-025-1259420477 Grok: Action Intelligence for Fast Data N/A IT & Big Data ■ ■ small no 4, 5 6, 7 ■ ■ ■ ■ ■ ■ ■ ■ ■

15 MHE-FTR-020-1259420477 Make or Break at RIM: Launching BlackBerry 10 BBRY Consumer Electronics & Services ■ ■ ■ ■ medium yes 3, 7 4, 6 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

16 MHE-FTR-014-1259420477 Genentech: After the Acquisition by Roche RHHB Y Biotechnology ■ ■ large yes 9, 11 7, 8 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

17 MHE-FTR-013-1259420477 UPS in India—A Package Deal? UPS Delivery & Logistics ■ ■ large yes 3, 10 8, 9 ■ ■ ■ ■ ■ ■ ■ ■ ■

18 MHE-FTR-007-1259420477 Bank of America and the New Financial Landscape BAC Banking ■ ■ large yes 3, 12 9, 11 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

19 MHE-FTR-011-1259420477 Siemens Energy: How to Engineer a Green Future? SI Energy & Sustainability ■ ■ ■ large yes 8, 9 3, 11 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

20 MHE-FTR-012-1259420477 Infosys Consulting in the U.S.— What to Do Now? INFY IT & Big Data ■ ■ large yes 3, 10 8, 12 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

21 MHE-FTR-005-1259420477 InterfaceRAISE: Raising the Bar in Sustainability Consulting TILE Sustainability Consulting ■ ■ ■ medium yes 2, 11 4, 5 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

STEP 2 / Arrange cases and integrate your own content. Once you’ve selected the cases you want to use in your course, just drag and drop your selections into the order you prefer. You can also add section dividers to organize the cases and even seamlessly integrate your own con- tent, such as a syllabus, class notes, or exercises.

STEP 3 / Personalize your design and choose your format. Put the finishing touches on your course content by choosing a cover, adding your course information, and then deciding on the best format for your students—color print, back-and-white print, or eBook.

STEP 4 / Order a review copy and approve your project. Request an eBook review copy and receive a free PDF sample, with its own ISBN, in minutes! Print review copies are also available and arrive in just days. After viewing your review copy, sign back in to Create and go to My Projects to approve and order your Create project.

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■ For assistance in building your course solution, contact your local McGraw-Hill Learning Technology Consultant or email CreateRothaermel@mheducation.com

Where do I find cases to incorporate into my class? At the Create site, you can access the full-length cases that accompany Strategic Management by Frank T. Rothaermel.

You will be able to select from 24 cases written by Frank T. Rothaermel as well as cases from Harvard, Ivey, Darden, NACRA, other case authors, and much more!

How do I access these materials? In this insert, we have included a grid showing information about the author-written cases, plus detailed instructions on how to use Create to select the cases and other content you want for your course.

In addition to selecting cases, through Create you also can:

Assemble your own course, selecting the chapters and cases that will work best for you.

or

Choose from several ready-to-go, author-recommended complete course solutions, which include chapters and cases pre-loaded in Create. Among these pre-loaded ExpressBooks solutions, you’ll find options for undergrad, MBA, accelerated, and other strategy courses.

For more information, contact your McGraw-Hill Learning Technology Consultant or email CreateRothaermel@mheducation.com

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HIGH-QUALITY CASES, well integrated with content and frameworks in the chapters, are a key ingredient in teaching strategy. Most of the full-length cases available with Strategic Management, and accessible via McGraw-Hill’s Create™ website, have been

written specifically for the product by Frank T. Rothaermel, with the help of expert contributors. This linkage ensures close interconnection of chapter content and cases.

The cases cover a variety of core strategy issues and topics, including external analysis, competitive dynamics, innovation, mergers and acquisitions, alliances, and corporate ethics. All cases are accompanied by a rich set of Case Teaching Notes. Financial analyses (in Excel spreadsheets) and case videos also are available with selected cases.

You can access the full-length cases that accompany Strategic Management by Frank T. Rothaermel through McGraw-Hill’s custom-publishing program, Create, using a simple four-step process.

STEP 1 / Go to http://www.McGrawHillCreate/Rothaermel and click on “Explore this Collection.”

Search by keyword or browse by discipline to find and add the cases related to strategic management. You can use the case grid on the inside of this insert to learn more about the cases offered with this product. You can also browse Create’s collections and add cases from sources like Harvard Business Publishing, Darden Business Publishing, and Ivey Publishing.

Here, you also will find information about ExpressBooks, pre-loaded chapters and cases that will give you a quick start in creating a custom solution for your course.

For Steps 2 through 4, see the back page of this insert . . .

YourVision…YourVoice…YourCourse…YourWay

Make it happen through Create for Strategic Management, at

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THIRD EDITION

Frank T. Rothaermel Georgia Institute of Technology

Strategic Management

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STRATEGIC MANAGEMENT, THIRD EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2017 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2015 and 2013. 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 DOW/DOW 1 0 9 8 7 6

ISBN 978- 1-259-42047-4 (student edition) MHID 1-259-42047-7 (student edition) ISBN 978-1-259-76065-5 (instructor’s edition) MHID 1-259-76065-0 (instructor’s edition)

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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: Rothaermel, Frank T., author. Title: Strategic management / Frank T. Rothaermel, Georgia Institute of Technology. Description: Third edition. | New York, NY : McGraw-Hill Education, [2017] Identifiers: LCCN 2015043145 | ISBN 9781259420474 Subjects: LCSH: Strategic planning. Classification: LCC HD30.28 .R6646 2017 | DDC 658.4/012—dc23 LC record available at http://lccn.loc.gov/2015043145

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.

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To my eternal family for their love, support, and sacrifice: Kelleyn, Harris, Winston, Roman, Adelaide, and Avery

—FRANK T. ROTHAERMEL

DEDICATION

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PART ONE / ANALYSIS 2

CHAPTER 1 What Is Strategy? 4

CHAPTER 2 Strategic Leadership: Managing the Strategy Process 32

CHAPTER 3 External Analysis: Industry Structure, Competitive Forces, and Strategic Groups 64

CHAPTER 4 Internal Analysis: Resources, Capabilities, and Core Competencies 104

CHAPTER 5 Competitive Advantage, Firm Performance, and Business Models 140

PART TWO / FORMULATION 172

CHAPTER 6 Business Strategy: Differentiation, Cost Leadership, and Blue Oceans 174

CHAPTER 7 Business Strategy: Innovation and Entrepreneurship 208

CHAPTER 8 Corporate Strategy: Vertical Integration and Diversification 252

CHAPTER 9 Corporate Strategy: Strategic Alliances, Mergers and Acquisitions 294

CHAPTER 10 Global Strategy: Competing Around the World 326

PART THREE / IMPLEMENTATION 362

CHAPTER 11 Organizational Design: Structure, Culture, and Control 364

CHAPTER 12 Corporate Governance and Business Ethics 400

PART FOUR / MINICASES 427

HOW TO CONDUCT A CASE ANALYSIS 516

PART FIVE / FULL-LENGTH CASES All available through McGraw-Hill Create, www.McGrawHillCreate.com/Rothaermel

CONTENTS IN BRIEF

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MINICASES / 1 Michael Phelps: Strategy Formulation &

Implementation 428

2 Teach for America: How to Inspire Future Leaders 430 3 PepsiCo’s Indra Nooyi: Performance with Purpose 432 4 How the Strategy Process Kills Innovation

at Microsoft 435

5 Strategy and Serendipity: A Billion-Dollar Business 438 6 Apple: What’s Next? 440 7 Starbucks: Schultz Serves Up a Turnaround 443 8 Nike’s Core Competency:

The Risky Business of Fairy Tales 446

9 When Will P&G Play to Win Again? 449 10 Trimming Fat at Whole Foods Market 452 11 Is Porsche Killing the Golden Goose? 454 12 LEGO’s Turnaround: Brick by Brick 457 13 From Good to Great to Gone:

The Rise and Fall of Circuit City 460

14 Cirque du Soleil: Searching for a New Blue Ocean 462 15 Competing on Business Models: Google vs. Microsoft 465 16 Assessing Competitive Advantage: Apple vs.

Blackberry 469

17 Wikipedia: Disrupting the Encyclopedia Business 475 18 Standards Battle: Which Automotive Technology Will

Win? 478

19 “A” Is for Alphabet and “G” Is for Google: Alphabet’s Corporate Strategy and Google’s Strategy Process 480

20 HP’s Boardroom Drama and Divorce 484 21 Hollywood Goes Global 488 22 Does GM’s Future Lie in China? 492 23 Flipkart Is Fulfilling Its Wish and Beating

Amazon.com 494

24 LVMH in China: Cracks Its Empire of Desire? 497 25 Sony vs. Apple: Whatever Happened to Sony? 501 26 Struggling Samsung Electronics 505 27 Alibaba and China’s ECommerce: Reality Bites 509 28 UBS: A Pattern of Ethics Scandals 513 How to Conduct a Case Analysis 516

FULL-LENGTH CASES / All available through McGraw-Hill Create, www.McGrawHillCreate.com/Rothaermel

Facebook, Inc.

Better World Books and the Triple Bottom Line

Tesla Motors, Inc.

Apple, Inc.

The Movie Exhibition Industry +

McDonald’s Corporation

Google Inc.*

Best Buy Co., Inc.

Delta Air Lines, Inc.*

Amazon.com, Inc.

Merck & Co., Inc.

IBM at the Crossroads

General Electric after GE Capital*

Grok: Action Intelligence for Fast Data

Make or Break at RIM: Launching BlackBerry 10

Genentech: After the Acquisition by Roche

UPS in India—A Package Deal?

Bank of America and the New Financial Landscape

Siemens Energy: How to Engineer a Green Future?

Infosys Consulting in the U.S.—What to Do Now?

InterfaceRAISE: Raising the Bar in Sustainability Consulting

MINICASES AND FULL-LENGTH CASES

* NEW TO THE THIRD EDITION REVISED AND UPDATED FOR THE THIRD EDITION + THIRD-PARTY CASE

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CHAPTERCASES / 1 Does Twitter Have a Strategy? 5 2 Marissa Mayer: Turnaround at Yahoo? 33 3 Tesla Motors and the U.S. Automotive Industry 65 4 Dr. Dre’s Core Competency: Coolness Factor 105 5 The Quest for Competitive Advantage: Apple vs.

Microsoft 141 6 JetBlue: “Stuck in the Middle”? 175 7 Netflix: Disrupting the TV Industry 209 8 How Amazon.com Became the Everything

Store 253 9 Disney: Building Billion-Dollar Franchises 295 10 The Wonder from Sweden: Is IKEA’s Success

Sustainable? 327 11 Zappos: From Happiness to Holacracy 365 12 Uber: Most Ethically Challenged Tech

Company? 401

STRATEGY HIGHLIGHTS / 1.1 Threadless: Leveraging Crowdsourcing to Design

Cool T-Shirts 10 1.2 BP “Grossly Negligent” in Gulf of Mexico

Disaster 20 2.1 Merck: Reconfirming Its Core Values 41 2.2 Starbucks’ CEO: “It’s Not What We Do” 51 3.1 Blackberry’s Bust 71 3.2 The Five Forces in the Airline Industry 74 4.1 Applying VRIO: The Rise and Fall of Groupon 117 4.2 Dynamic Capabilities at IBM 123 5.1 Interface: The World’s First Sustainable

Company 161 5.2 Airbnb: Tapping the Value of Unused Space 162 6.1 Dr. Shetty: “The Henry Ford of Heart Surgery” 189 6.2 How JCPenney Sailed Deeper into the Red

Ocean 198 7.1 How Dollar Shave Club Is Disrupting Gillette 236 7.2 GE’s Innovation Mantra: Disrupt Yourself! 237 8.1 Is Coke Becoming a Monster? 263 8.2 The Tata Group: Integration at the Corporate

Level 276 9.1 IBM and Apple: From Big Brother to Alliance

Partner 301 9.2 Food Fight: Kraft’s Hostile Takeover of

Cadbury 312 10.1 The Gulf Airlines Are Landing in the United

States 334 10.2 Walmart Retreats from Germany 337 11.1 The Premature Death of a Google-like Search

Engine at Microsoft 370 11.2 W.L. Gore & Associates: Informality and

Innovation 374 12.1 GE’s Board of Directors 411 12.2 Did Goldman Sachs and the “Fabulous Fab”

Commit Securities Fraud? 416

CHAPTERCASES & STRATEGY HIGHLIGHTS

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CONTENTS

PART ONE / ANALYSIS 2 CHAPTER 1 WHAT IS STRATEGY? 4

CHAPTERCASE 1 Does Twitter Have a Strategy? 5

1.1 What Strategy Is: Gaining and Sustaining Competitive Advantage 6

What Is Competitive Advantage? 8 Industry vs. Firm Effects in Determining Firm Performance 11

1.2 Stakeholders and Competitive Advantage 12 Stakeholder Strategy 14 Stakeholder Impact Analysis 15

1.3 The AFI Strategy Framework 20 1.4 Implications for the Strategist 22

CHAPTERCASE 1 / Consider This... 23

CHAPTER 2 STRATEGIC LEADERSHIP: MANAGING THE STRATEGY PROCESS 32

CHAPTERCASE 2 Marissa Mayer: Turnaround at Yahoo? 33

2.1 Vision, Mission, and Values 34 Vision 35 Mission 36 Values 36

2.2 Strategic Leadership 40 What Do Strategic Leaders Do? 42 How Do You Become a Strategic Leader? 43 Formulating Strategy across Levels: Corporate, Business, and Functional Managers 43

2.3 The Strategic Management Process 46 Top-Down Strategic Planning 46 Scenario Planning 47 Strategy as Planned Emergence: Top-Down and Bottom-Up 49

2.4 Implications for the Strategist 53

CHAPTERCASE 2 / Consider This... 55

CHAPTER 3 EXTERNAL ANALYSIS: INDUSTRY STRUCTURE, COMPETITIVE FORCES, AND STRATEGIC GROUPS 64

CHAPTERCASE 3 Tesla Motors and the U.S. Automotive Industry 65

3.1 The PESTEL Framework 66 Political Factors 67 Economic Factors 68 Sociocultural Factors 69 Technological Factors 70 Ecological Factors 70 Legal Factors 72

3.2 Industry Structure and Firm Strategy: The Five Forces Model 72

Competition in the Five Forces Model 73 The Threat of Entry 75 The Power of Suppliers 79 The Power of Buyers 80 The Threat of Substitutes 81 Rivalry among Existing Competitors 82 A Sixth Force: The Strategic Role of Complements 89

3.3 Changes over Time: Industry Dynamics 89 3.4 Performance Differences within the Same Industry: Strategic Groups 90

The Strategic Group Model 91 Mobility Barriers 93

3.5 Implications for the Strategist 93

CHAPTERCASE 3 / Consider This... 95

CHAPTER 4 INTERNAL ANALYSIS: RESOURCES, CAPABILITIES, AND CORE COMPETENCIES 104

CHAPTERCASE 4 Dr. Dre’s Core Competency: Coolness Factor 105

4.1 Core Competencies 108 4.2 The Resource-Based View 111

Two Critical Assumptions 112 The VRIO Framework 113 Isolating Mechanisms: How to Sustain a Competitive Advantage 118

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4.3 The Dynamic Capabilities Perspective 122 4.4 The Value Chain Analysis 127 4.5 Implications for the Strategist 129

Using SWOT Analysis to Combine External and Internal Analysis 130

CHAPTERCASE 4 / Consider This... 132

CHAPTER 5 COMPETITIVE ADVANTAGE, FIRM PERFORMANCE, AND BUSINESS MODELS 140

CHAPTERCASE 5 The Quest for Competitive Advantage: Apple vs. Microsoft 141

5.1 Competitive Advantage and Firm Performance 142

Accounting Profitability 143 Shareholder Value Creation 149 Economic Value Creation 151 The Balanced Scorecard 156 The Triple Bottom Line 159

5.2 Business Models: Putting Strategy into Action 160

Popular Business Models 163 Dynamic Nature of Business Models 164

5.3 Implications for the Strategist 165

CHAPTERCASE 5 / Consider This... 166

PART TWO / FORMULATION 172 CHAPTER 6 BUSINESS STRATEGY: DIFFERENTIATION, COST LEADERSHIP, AND BLUE OCEANS 174

CHAPTERCASE 6 JetBlue: “Stuck in the Middle”? 175

6.1 Business-Level Strategy: How to Compete for Advantage 177

Strategic Position 178 Generic Business Strategies 178

6.2 Differentiation Strategy: Understanding Value Drivers 180

Product Features 182 Customer Service 182 Complements 182

6.3 Cost-Leadership Strategy: Understanding Cost Drivers 183

Cost of Input Factors 184 Economies of Scale 184 Learning Curve 187 Experience Curve 190

6.4 Business-Level Strategy and the Five Forces: Benefits and Risks 191

Differentiation Strategy: Benefits and Risks 192 Cost-Leadership Strategy: Benefits and Risks 192

6.5 Blue Ocean Strategy: Combining Cost Leadership and Differentiation 194

Value Innovation 194 Blue Ocean Strategy Gone Bad: “Stuck in the Middle” 197

6.6 Implications for the Strategist 200

CHAPTERCASE 6 / Consider This... 200

CHAPTER 7 BUSINESS STRATEGY: INNOVATION AND ENTREPRENEURSHIP 208

CHAPTERCASE 7 Netflix: Disrupting the TV Industry 209

7.1 Competition Driven by Innovation 211 The Innovation Process 212

7.2 Strategic and Social Entrepreneurship 215 7.3 Innovation and the Industry Life Cycle 217

Introduction Stage 219 Growth Stage 220 Shakeout Stage 223 Maturity Stage 224 Decline Stage 224 Crossing the Chasm 225

7.4 Types of Innovation 231 Incremental vs. Radical Innovation 232 Architectural vs. Disruptive Innovation 234 Open Innovation 238

7.5 Implications for the Strategist 241

CHAPTERCASE 7 / Consider This... 242

CHAPTER 8 CORPORATE STRATEGY: VERTICAL INTEGRATION AND DIVERSIFICATION 252

CHAPTERCASE 8 How Amazon.com Became the Everything Store 253

8.1 What Is Corporate Strategy? 255 Why Firms Need to Grow 255 Three Dimensions of Corporate Strategy 257

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8.2 The Boundaries of the Firm 258 Firms vs. Markets: Make or Buy? 259 Alternatives on the Make-or-Buy Continuum 261

8.3 Vertical Integration along the Industry Value Chain 264

Types of Vertical Integration 266 Benefits and Risks of Vertical Integration 267 When Does Vertical Integration Make Sense? 269 Alternatives to Vertical Integration 270

8.4 Corporate Diversification: Expanding Beyond a Single Market 271

Types of Corporate Diversification 273 Leveraging Core Competencies for Corporate Diversification 275 Corporate Diversification and Firm Performance 279

8.5 Implications for the Strategist 282

CHAPTERCASE 8 / Consider This... 283

CHAPTER 9 CORPORATE STRATEGY: STRATEGIC ALLIANCES AND MERGERS AND ACQUISITIONS 294

CHAPTERCASE 9 Disney: Building Billion-Dollar Franchises 295

9.1 How Firms Achieve Growth 296 The Build-Borrow-Buy Framework 297

9.2 Strategic Alliances 299 Why Do Firms Enter Strategic Alliances? 300 Governing Strategic Alliances 304 Alliance Management Capability 307

9.3 Mergers and Acquisitions 309 Why Do Firms Merge with Competitors? 310 Why Do Firms Acquire Other Firms? 311 M&A and Competitive Advantage 313

9.3 Implications for the Strategist 315

CHAPTERCASE 9 / Consider This... 316

CHAPTER 10 GLOBAL STRATEGY: COMPETING AROUND THE WORLD 326

CHAPTERCASE 10 The Wonder from Sweden: Is IKEA’s Success Sustainable? 327

10.1 What Is Globalization? 329 Stages of Globalization 331 State of Globalization 332

10.2 Going Global: Why? 333 Advantages of Going Global 333

Disadvantages of Going Global 336 10.3 Going Global: Where and How? 338

Where in the World to Compete? The CAGE Distance Framework 339 How Do MNEs Enter Foreign Markets? 342

10.4 Cost Reductions vs. Local Responsiveness: The Integration-Responsiveness Framework 343

International Strategy 344 Multidomestic Strategy 345 Global-Standardization Strategy 346 Transnational Strategy 347

10.5 National Competitive Advantage: World Leadership in Specific Industries 348

Porter’s Diamond Framework 350 10.6 Implications for the Strategist 352

CHAPTERCASE 10 / Consider This... 353

PART THREE / IMPLEMENTATION 362 CHAPTER 11 ORGANIZATIONAL DESIGN: STRUCTURE, CULTURE, AND CONTROL 364

CHAPTERCASE 11 Zappos: From Happiness to Holacracy 365

11.1 Organizational Design and Competitive Advantage 367

Organizational Inertia: The Failure of Established Firms 368 Organizational Structure 371 Mechanistic vs. Organic Organizations 372

11.2 Strategy and Structure 374 Simple Structure 375 Functional Structure 375 Multidivisional Structure 377 Matrix Structure 381

11.3 Organizational Culture: Values, Norms, and Artifacts 384

Where Do Organizational Cultures Come From? 386 How Does Organizational Culture Change? 386 Organizational Culture and Competitive Advantage 387

11.4 Strategic Control-and-Reward Systems 389 Input Controls 390 Output Controls 390

11.5 Implications for the Strategist 391

CHAPTERCASE 1 / Consider This... 392