crafting and executing strategy

54
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: @ |ason Reed/Reuters/Corbis; Jay Mallin/Bloomberg via Getty Images 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 161 @ Bloomberg via Getty Images; page 166: @ American Apparel ChapterT page 192: @ Bloomberg via Getty Images; page 205: @ Julie Dermansky/fulie Dermansky/ Corbis; page 208: @ Bloomberg via Getty Images 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: @ Toyota; page 303 @ Apple Inc. Chapter 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

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crafting and executing strategy

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Page 1: crafting and executing strategy

Chapter Ipage6: @ David PaulMorris/Bloombergvia Geffylmages; page 11: @ PRNEWSWIRE / AP

Chapter 2

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

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 161

@ Bloomberg via Getty Images; page 166: @ American Apparel

ChapterT

page 192: @ Bloomberg via Getty Images; page 205: @ Julie Dermansky/fulie Dermansky/

Corbis; page 208: @ Bloomberg via Getty Images

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 l0page294: @ Proctor and Gamble; page298: @ Toyota; page 303 @ Apple Inc.

Chapter llpage 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

Page 2: crafting and executing strategy
Page 3: crafting and executing strategy

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-282Abercrombie & 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 1

financial data, C-57

operations, C-57-C-58outsourced production, C-58

research and development, C 58

sponsorships, C-58Adobe, C-182

Advent International Corporation, C-60

AerLingus,151Aerospatiale, 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-150AIG.362Airbus, 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 5iAmazon 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,247AMC 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,358employee motivation, 333

Anaheim Angels,254, C 275

Anheuser-Busch, 61, 7 0, I23Animal Compassion Foundation, 278

Animal Planet, 136

Ann Taylor Stores, 29

Ansteel, C-241

AOL Time Warner, 37

Aplen, C-50Applebeet, 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-219App Store, C-181

failure to enforce supplier code ofconduct,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-195challenges facing, C- 187

competition in smartPhonemarket, C-187

competitive Positionpersonal 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-r93financial performance 2007 20II'

c-189financial 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 industrYDellInc,C-193-C 194

Hewlett-Packard, C- 193

sales, C-187sales by operating segment, C-i90smartphone 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

turnaround success, C 189

Apple iPad, C 30, C-32Apple iTextbooks, C-30

Apple iTunes, C-132, C-133,

c-194-c 195,c-3r7Applied 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-206Arla Foods, C-3I6Armani, 199

Army and Air Force Exchange

Service, C-50

Artesa, C-397

Ashworth,C 53,C 71

Asia Pacific Group, C-61

Asics,C15,C53ASU5, nrarket .hrre in PC.. C- lqlAtex, C-212Athleta, C-71

Atlanta Bread Companl', C-99

clata on, C-100

Atlantic Rural Exposition, C-203

Atlee Landscaping, C-205

AI&T,216, c-132AT&T Mobility, C 195

AT&T U-verse, C 134

Au Bon Pain, C 97, C'99data on, C- 100

Auburn Steel Con'rPanY, C-228

Audi, 141

Aulani Disney Resort and SPa, C 280

Avon Products, Inc.,31, 133

acqui:ition oiTiffanl' C-85

business ethics, 73

financial statements, I 13-1 16

189

I-1

Page 4: crafting and executing strategy

l-2 Company Index

RL,J

BackRub, C-169Baidu, C-179Baja Fresh, C-123B&Q,272Bank of America, 160, ).62, 220, 264Bank of America/Merrill Lynch, C-77Baosteel, C-241

Barker Steel Company, C-20Barnes & Noble, C-20, C-26, C-31Baseball Factory, C-49BASR 41, 124

Bass Pro Shops, C-50Bath &BodyWorks, 164

Bayonne Packaging, Inc., case

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

c-360-c-368operations, C-365-C-366order flow, C-364quality control problems, C-360revenue recognition, C-360sales management problems, C-362-C-365scheduling, C-366 C-368setup and run tim e, C,362value of shipments, C-363

BBC Worldwide, C 130

Beaird-Poulan, 225

Beam Inc.,229Beaulieu, C 397

Bebe Stores, C 72

Bell helicopters, 229

Ben & |erry's, 279, C-377Benchmarking Exchange, 103

Benchnet, 103

Beringer Vineyards, C 397

Beringer Wine Estates, C 399

Berkshire Hathaway, 3, 23 IBernard 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-132Best Practices, LLC, 103

Bethlehem Steel Corporation, C 228Bic, 128

Birmingham Steel Corporation, C 228BJ's Wholesale Club, C-20, C-317

description, C-23

differentiating features, C-23-C-24financial data, C 24

marketing and promotion, C-25membership, C-24-C-25operations, C-25product offerings, C-23

Black & Decker, 225

Blockbuster, C-132, C-135Blockbuster Express, C- 132

Blockbuster@Home, C- 135

Blockbuster Online, C-133Bloomingdalet, C-74Bloomingfoods Coop, C- 150

Blue Coral Seafood Spirits, 253Blue Nile, Inc., C-88

description, C-93BMW AG, 7 ,2s, 130, 14t, 146, t80,276Body Shop, 279

Boeing Company,301Boeschen Vineyar ds, C-397Bogner, C-53

Bombardier, 225

Bonefish Gr1lI,252Bosch, 130

Boston Beer Company, 7 0, 1 62

Boston Consulting Group, 293Boston Marathon, C-58Bouchaine Vineyards, C-397Bowman Companies, C-202Brattleboro Food Co-op, C-150Briggs & Stratton, 128

Bright House Networks, 169

Brinker International, C- 100

Bristol-Myers Squibb, horizontal acquisitionstrategy,161

British Airways, 151, 328British Petroleum, 330, 362British Steel, C-228British Telecommunications, 216, 27 IBroadcom, 300-301Brother International, C-2 I 8

Bruegger's, data on, C-100BTR,243 244

Bugati, 133

Buick,305Bulgari, C-86

description, C-92-C-93Burberry, 199, C-77Burger King, 301, C-97, C-318Burghy,220Burtt Bees,272

corporate social responsibility, 273

Business for Innovative Climate and EnergyPolicy coalition, C-328

Business Roundtable, 270

Butter Lane Bakery, C-33

BYD,170

rCabela's, C-50Cadbury, 250, C-290, C, 292

CADE Winery, C-397Cadillac, 141,305Cain Vineyard and Winery, C 397

Cakebread Cellars, C-397

California Association of Wine Growers,c-396

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

California Sustainable WinegrowingAlliance, C-396, C-397, C-399

California Tortill a, C - 123Callaway Golf Company, 89

Calphalon,230Calvin Klein, C-Iz, C-77Campbell Soup Company, 130, C-15

Canada and North American Foodservice,

c-290, c-297, C-294Cannon Gun Safes, C-15Canon, 202, 297, C-15, C-273, C-218Capital One,325Caracol, C-130Carlson's Restaurants, C- 102

Carrabbat Italian Grill, 252Carrefour, I07, C-260Carrier,253Cartier, i36, 799, C-77, C-86, C-93, C-94Carvel Ice Cream, C-124Casio, C-15Castrol, 193

Caterpillar, 29

CBC Steel Buildings, C-224CBS Television, C-130Cerberus Capital Management, 357

Cessna,229

CGA, Inc., 136

Champion, C-53

Chanel, 7, 71, C-78Charels Schwab, 130

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

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

Chevron,30lCheq. Volt, 280

Chick-Fil-A,278Chicot, 164

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

dataon,C 100

Chipotle Mexican Grill, C-99data on, C-100

Chipotle Mexican Grill, case

acquired by McDonald's, C-l l5advertising, C-120-C-12Ibrand awareness, C-121

branding, C-l2Icompanyhistory, C-l14 C l15compensation, C-120

competition forMoe's Southwest Grlll, C-124

Page 5: crafting and executing strategy

Qdoba Mexican Grll, C-124-C-125Taco Bell, C-123-C-124

corporate culture, C-120customer loyalty program, C- 121

divested by McDonald's, C- I 15

financial performance, C- I 1 5-C- 1 l6growth since 1993, C-ll4hiring practices, C-120initial public offering, C- I l4management, c- I 19-C- 120

marketing, C - 120 - C - l2Loperations, C-l l6-C-1 i9outlet development and construction

costs, C-122-C-123promotion, C-121

quality assurance, C-l 19

revenue growth 2007-201I, C-l15revenues, C-114ShopHouse Southeast Asia Kitchen

concept, c-II4,c-123site selection, C-l2l-C-122stock price performance, C-1 14

strategy elements, C-l 14

Chocklett Press, C-205Chrome, C-182

Chrysler Group LLC, I 16, 187, 357

culture change, 358

Chunghwa Telecom, C-266Ciba Vision, 325-326Cinemax, C-133, C-135Cinnabon, C-15,C-I24Circuit City, C-20Cisco Systems, 160, 168, 173,294-295,

c-332Citigroup, 243,264Citizen Holdings Company, 223

Classic Sports Network, 254

Clear Channel Communications, 169-170Clearwide, 169

Clorox Company, 273

Clos Du Vaal, C-397

Clos Pegasse, C-397

CNN, I33Coach China, C-82

Coach Inc., 167, C-12

Coach Inc., case

acquisition by Sara Lee, C-74aggressive competition for, C-73balance sheet, C-7 5-C-7 6

company history, C-74differentiation st r ate gy, C -7 9 - C - 80

financial data by channels ofdistribution,c-81

flexible outsourcing, C-79general and administrative expenses, C-82

income statement, C-75industry position, C-79

in luxury goods industry, C-7 -C-78marketing research, C-7 4

net revenue, C-73

number ofretail stores, C-73

outsourced manufacturing, C-73

outsourcing agreements, C-74pricing strategy, C-74product line, C-79retail distribution

in China, C-82factory outlets, C-81

full-price stores, C-80-C-81by geographic region, C-81

in )apan, C-81-C82sales growth, C-73sales growth and earnings 2012, C-74stock price performance, C-74, C-76

strategic options in 2012, C-82-C-83strategic priorities

build market share, C-73e-commerce, C-73raise brand awareness, C-73target men as customers, C-73

strategy against rivals, c-73turnaround plan, C-74wholesale locations, C-82

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

Coca-Cola Company,3,25, 87, l3l, 132,

t60,272,280, c-rsstrategic 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 -248Conference Board, C- 153

Connecticut Steel Corporation, C-20

Conservation International's Center forEnvironmental Leadership, C-323

CONSTANT, C-397Continental Airlines, 336

Converse, C-53

Coors,61Corner Bakery Cafe, C-99

data on, C-100Corning,223Corporate Knights,260Corus Steel, C-228Costco Companies inc., C 7

Costco Wholesale, 138, 145, C-3f 7, C-3f 8

diamond sales, C-94, C-95jewelry products, C-94sales in 201 1, C-94

Costco Wholesale, case

advertising, C-13-C-14annual sales, C-6-C-7

Company Index

balance sheet 2006-201 1, C-8

business model, C-9

code ofethicscompliance with laws, C-18-C-19respect suppliers, C- l9reward shareholders, C- 19

take care ofemployees, C-19

take care of members, C-19

company history, C-7competition

bases of, C-20

Blt Wholesale Club, C-23-C-25Sam's C1ub, C-20-C-23

core values, C-18-C-19distribution, C-15

employee compensation, C- l6-C- l7environmental sustainabiliry C-20executive compensation, C- I 8

geographic operating data, C-14income statemenr 2006-20Il, C-8-C-9low-cost leadership strategy

for growth, C-12-C-I3pricing strategy, C-9-C- 10

product selection, C-10-C-1 1

treasure-hunt merchandising,c,r1-c-12

management by walking around, C-6

management change 2012, C-7marketing by, C-13-C-14market position, C-6membership base and demographics,

c-1s-c-16mission statement, C-9

number of warehouses worldwide, C-6

recruitment and hiring, C-18

sales by product category, C- I Isize of membership, C-6

store layout and size, C-12suppliers, C-15supply chain management, C-15

warehouse n'ranagement, C- 16

warehouses and contents, C- I 1

website sales, C-14-C- l5workforce practices, C- l7

Countr)"wide Financial, 354

Courtyard by Marriott, 139

Courvoisier,229Cox, C-132Cracker Barrel, C-99

data on, C-100Craftsman, C-15Cray,297C-Spire, C-195Ctrip, 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-3

Page 6: crafting and executing strategy

I-4 Company Index

tlIJ

Daewoo Commercial Vehicle Company,Ltd., C-247

Daimler AG, 29, 1.68, 170,26tDaimler Benz AG,C-247DaimlerChrysler, I 68, C-247David l. foseph Company, C-235David Yurman, C-88Davis Food Co-op, C-150Deans Beans, C-163

De Beers Group, 162,220Deepwater Horizon,362Deer Park Refinery, 168

DEFEXPO -India,C-247Dell Inc., 42, 106, 125, 132,205-206,209,

224-225, 293_294, 301, C_ 15,

c-187, c-r92market share in PCs, C-191rivalry with Apple in PCs, C-193-C 19,1

Descente, C-53Deutsche Bank, C-203, C-204Devilt Den, case, C-302-C-304

employee problems, C-302 C-303management problems, C-303unethicai behavior, C-302-C-30,1

DHL Worldwide, 329Dickt Sporting Goods, C-43, C-50Diebold, Inc,265-266Digital Equipment, C-346DineEquity, C 100

DIRECTV C.132Discover card, C-25DISH Network, C-132, C-134, C-135,

c-168, C-182Disney Brothers Studio, C 274Disney California Adventure Park, C-275,

c-278, C-281Disney Channel,254, C-275, C-278, C-280Disney Cruise Line, 253, C-273, C-275,

c-280, C-281Disney Interactive, C-27 5

Disneyland, C-281

Disneyland Paris, 196, C-275, C 2BIDisneyland Resort, California, C-280Disney-MGM Studios, C-275Disney Publishin g, C-275Disney Radio, 254

Disneyt Castaway Cay, C-281Disney Store, 254

Disney Studios, C 274

Disney Vacation Club, C-280, C-281Dll Mill and Industrial Services, C-235DJJ Rail Services, C-235DKNY, C-77Dolce & Gabbana, C-73, C-74, C-77, C-78Dollar General, 106, 305, C-20Dome Corporation, C-50Dominot Pizza,l39Dom Perignon, C-12

DoubleClick, C 179

Dowdy & Associates, C-202DRB-HICOM's Defense Technologies, C-247Dream Works Animation, 293Dreyer's Grand Ice Cream, partnership with

Starbucks, C-316-C-317Ducati Motorcycles, 132, 164, 182, 310Duckhorn Vineyards, C 400Duckhorn Wine s, C-397Duferco Group, C 233Duferdofin-Nuc or, C-233Dumukwa, C-380Dunbar Armored, C-205Dunkin Brands, 325

Dunkin Donuts, C-3

rt-_

E. & J. Gallo Winery, 300Eastbay, C-53

Eastern Bank, C-i60Eastman Chemical, C-21 iEastman Dry Plate and Film Company,

c,212Eastman Kodak,353Eastman Kodak, case

balance sheet, C-215bankruptcy filin g in2012, C-211,

c-2r4-c,2r6business-level strategy

commercial segment, C-217 -C-2I8cousumer segment, C 218-C-219

business model, C-218-C-2 1 9

business units, C-2I7cash flow problems, C-21icompany history, C-212-C 211competition in inkjet printers, C-21 1

earnings before interest and taxes, C-216financial condition in 2012. C-2II-C-212financial performance 2012, C-2I9lack of success in digital cameras,

C-211-C 213

management changes, C-21 3-C -274net sales by business unit, C-215-C-216number ofpatents held by, C-2 19

operations in2012, C-216 C-2I9organizational structure, C-2 I 7

reorganization plan, C-216-C-217revenue decline 2009 20f1,C-219spinoff of Eastman Chemical, C-21Istatement of operations 2007-2011, C-24

EasyCard Corporation, C-266eBay, 153, C-88EBSCO, 17s, 176

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

Elevation, LLC, C-205Emerson EIectric,225Enagas S. A., 276Energy Star, C-20Enron Corporation,3T , 266-268, 354Epson, l0Equal Exchange, case

balance sheet, C-159, C-165business model, C-154capital flow, C-160circumventing Nicaragua embargo, C- 149

company history, C- 148-C- 150

compared to Thanksgiving Coffee,c,t63-c-164

competition, C- 163-C- 164

diversification, C- 150

effect of recession, C- 164

as fair trade company, C-148in fair trade industry, C-160-C-163in financial crisis of2008, C-148financlal performance, C- I 56-C- 1 58hiring policy, C-154income statement, C-158, C-164increased competition, C- 148

investment in, C-158-C-160low employee turnover, C- 1 54

management, C- 150-C- 151

marketing strategy, C- 1 54-C- I 56

advertrsrng, L 155

fundraising, C-156interfaith program, C- 156

product variety, C-156mission, C 151

problems to deal withexploitation of farmers, C- 151-C- 153

lack ofconsumer awareness, C-153working conditions in U.S., C-153

rapid expansion in 1990s, C-149sales by state, C-157sales growth 2006-2010, C-I57strategy-making for the future,

c 164-C-166timeline, C-145

worker-owned co-operative,c-t 49-c-ts4

Ernst & Young, 278ESPN, 2s4, C,27 5, C-279, C-280ESPN2,254Estabrook Farm, C-151Est6e Lauder, C-78, C-79Ethical Tea Partnership, C 323

Ethicsphere,267Ethos Water Fund, C-329

Etude, C-397Evolution Fresh, Inc., C,320Evraz, C-24IExelon Corporation, 313

Expedia, Lnc.,247Extreme Clean U.S.A., Inc., C-205ErronMobil. 150

Page 7: crafting and executing strategy

rrFacebook,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-267Fair Trade International, C 323

Fair Trade Labeling OrganizationInternational, 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, 38-40Far East Tone, C-266Fauquier Bankshares, C-202

Fazoli's, data on, C 101

Federal Express, 7 -8, 107, 154, 328, 329, 347

Fed Mart, C-7Fendi,TI,C 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-53Finish Line, C-50

Firefox, C-182

Firehouse Subs, data on, C-101

First Colony Coffee, C-4First Division Rugby, C-51

First XV C-50Fisher&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-50Ford 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

Foster Farms, C-15

Foster's Group, C-399

Foster Wheeler, 25

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

Fox Conn, 303

Fox Entertainment, C-133, C-134

Fox Family Channel C-275

Fox network, 160

Fox News, 133, 160

Fox Sports, 160

Fox Studios, 160

Franciscan Estate, C-397Freddie 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-404distribution channels, C-400

environmental management

system, C-392

evolution of, C-393

financial ratios, C-403

income statement, C-402managers and employees, C-399-C-400

production in 2011, C-399

sales growth, C-400strategy-making, C-404

sustainability philosophy, C-400-C-403

biodynamic growing technique:.

c-400-c-401dry farming, C-400energy self-sufficiency, C-40 1

year-round employment, C-40 1

sustainable growth, C-404

vineyard acquisitions, C-400Fuddruckers, data on, C-101

Fuji, C-15

Fujifilm, C 2Il, C-212, C-2I3Fujitsu, 202

FX, 160

{-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 6lGeneral 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-253Gerdau, C-241

Gilbeys, 229

Gillette Company, 10, 247

Gilt Groupe, blue ocean strategy, 153

Giorgio Armani,253, C 73, C-77, C-78

Glaceau, 160

GlaxoSmithKline, 271

Global Exchange, C-155

Company Index

Global Fund and Product, C-329

GIobal Reporting Institute, 225

Global Social Compliance Program, C-328

GMC,305Godiva Chocolates, 136

Golden Gate Capital, C-100

Goldman Sachs, 293, 362

Good Humor, C-317

Goody,230Goodyear Tire Company, 164

objectives, 30

Google Inc.. l. 25. 98. 169,222.293.294,

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

c,t92, C-r97, C-332Apple's concerns in 2012, C I97employee motivation, 333

mission statement,24Nexus tablet computer, C-193

Google Inc., case

acquisition of Motorola Mobility, C-168

AdWords, C-175-C-178alliances for Google TV, C-168

balance sheet, C-177business 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-170features offered by, C -I72-C-175financial performance, C- 176

initial public offering by Dutch auction,

c-r69 C-r7rInternet rivals

Microsoft, C- 183-C- 184

Yahool, C-i84 C-185

market position in 2012, C-168

market share

browser market, C-182search 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 -C- 17 9

search technology, C 175

stock price performance, C-169, C I72strategy-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 IGoogle TV, C-168, C-182

Graniterock, 360

Green Mountain Coffee Roasters, 277, C 4,

c-318, c-319, c-320Greenpeace, 24

Greg Norman, C-53

Grey Goose Vodka, 107

I-5

Page 8: crafting and executing strategy

t-6 Companv Index

Greyhound Lines, 106

Groupe Danone, C-290Groupon,352Gucci, 130, C-74,C 77Guggenheim Museum, NY, 131

Gulf States Manufactuers, C-224GW Sound, C-205

ilH. I. Heinz Company, 61

strategic vision, 23

HALL,C-397Hallmark,329Hallmark Chann eL, C -282Hamilton Sunstrand, 253

Handy Dan Home Improvement, 151

Hannover 96 football club, C-49Hanson Trust, 230

Harley-Davidson, Inc., 106, 164

Harris Corporation, 318

Harris Poll EquiTrend, C-96Harris Rebar, C-20Harris Steel, C-224, C-230, C-237Harry Winston, C-88Hartmann, C-15Hathawayshirts, C-12Hautelook, 153

Haworth, C-344HBO, C-132, C-133, C-134, C-135, C-136,

c-t45, c-282HdV Wines-Hyde de Villaine, C-397Heitz Wine Cellars, C-397Helly Hansen, C-53Hengdeli Holdings, C-93Henkel AG, case

acquisition ofNational Starch andChemical Co.,C-349

bonus compensationgroup performance, C-353

individual performance, C-354payout, C-354team performan ce, C-353

brands, C-346busincss segments, C-346company history, C-346competitors, C-347core values, C-350 C 351

corporate culture, C-351

dives{ment ol underperformingbrands, C-349

effect offinancial crisis, C-348employee retention, C-345executive discussion of strategy

development ofvalues, C-354-C 355

effect of performance management,c-35s-C-358

long-term targets, C-354financial goals, C-346-C-349

financial performance 2000 -2010, C-347management, C-3 5 -C-346performance management, C 35 I -C-353

development roundtable, C -3 52 -C -3 53

evaluation grid, C-352frame of orientation, C,353

plant closings, C-349 -C-350product line, C 348

sales increase 2012, C-358strategy-making, C-349vision and values workshop, C-350-C-35Ivision statement, C-350

Herman Miller Inc., case

accessories team, C-342 C-344balance sheet, C-341-C-342board of directors, C-336-C-337charitable contributions, C-337company history, C-332-C 334competitors, C-344cooperative advertising, C 338

core values, C-335- C-336corporate social responsibiliry C-335cross-functional teams, C-337and economic crisis of2000-2002, C-335employee relations

employees as shareholders, C-334employee stock ownership plan,

c-334-c-335empowerment, C-337fringe benefits, C-340promotion from within, C-340retirement plans, C 340

Scanlon Plan, C-333social contract, C-335stock purchase plan, C-340

environmental advocacy, C-336environmentally friendly design, C-339environmental stewardship, C-334fi nancial manage nent, C -3 40 -C - 3 42

in Great Depression, C-332 -C- 333

green marketing, C-338growth prospects, C-344human resource management,

c 339,C-340industry position, C-332initial public olfering, C-333

international expansion, C-333lean manufacturing, C-338-C-339management, c-336-C-337marketing, C-338multiplant operations, C-333-C-334in office equipment industry, C-344product design, C-333production, C-338-C-339in recession of 2008-2009, C-335recycling progra m, C - 337

research and deveiopment by, C-342statement of operations, C-343

transparency, C-336work teams, C-337

Hermes, C-74,C-77Hess Collection Winery, C-397Hewlett-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-191net revenue 2007-2011, C-193rivalry with Apple in PCs, C 193

Hibbett Sporting Goods, C 50

Hi-c, 160

Highland Capital Partners, C-60Hi-Life, C-261, C-267Hilton Garden Inns, C-338Hilton Hotels Corporation,29,42. 189, C-316Himaraya, C-50Hindalco,209Hipo Carrocera SA,, C-247Hirschler Fleischer, C 202

History Channel, 136

HNI Corporation, C-344Hockey Canada, C-49Hollinger International, 354Holll'wood Video, C- 135

Home Depot, 25, 6I, 125,130, 151,

206,272, C-20Honda Motors,28, 55, 116, 130, 141, 156,

t79,200,202,297,31.8Honeywell Corporation, 325

Hong Kong Disneyland, C-275, C-278,C-281Honig Vineyard and Winery, C-397Horizon Airlines, C-3 16

Hour Glass Ltd., C-93HSBC,243HTC, C-i68, C-18t, C-r97, C-2rr,

c-2I6,C-2t9smartphone market share, C-196

Hugo Boss, 30I, C-78

Hulu.com, 169-170, C-132, C-133, C-143Hulu Plus, C 135

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

Co.,Ltd.,276Hyundai Heary Industries, 3

Hyundai Motors, 7-8

ii

IAC/InterActive Corp, 247

IBM, 167,209, 353, C-188Ideli, 153

IHS Screen Digest Research, C 134

IKEA,3, 107,283Il Giornale Coffee Company

acquisition of Starbucks, C-3 10

founding of, C-309Inbev,70Industrial Designers Society of Am ericu C-334

Page 9: crafting and executing strategy

Infosys Technologies, 208

ING Insurance, 301

Integrated Metals Technology, C-339Intel Corporation, 58, 169, 352, C-168, C-182Interfaith Program, C-156International Brotherhood of Teamsters, C-16

International Coffee and Tea, 247

International Coffee Partnership, C-316

International Paper Company, 163, C-365

Internet Explorer, C-I82Itausa-Investimentos Itau S/A, 276

ITEC Steel Inc., C-228ITT Corporation,254Iwerks-Disney Commercial Artisls, C-27 4

Izod, C-53

IJ

f. C. Penney, C-95

f. Creq C-63

I. M. Smucker,247

|. W Marriott Hotels, 139

Jack-in-the-Box, Inc., C-102, C-724

fackson Family Wines, C-395

faguar, l4l, C-246, C 247, C -248, C-252,

c-253-C-254, c-255

lames fuver Equipment, C-205

lapan Airlines, 301

lapan Earthquake Relief Fund, C-329

lasons Deli, C-99data on, C-101

lericho Canyon Vineyards, C-397

fetBlue Airways, 328, C-344

IFE,C-24rliangsu 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,204Kentucky Fried Chicken, 189, 205, C-123

Keurig Single-Cup Brewing, C-318, C-319

Kimberly-Clark, C-15

Kirby Building Syshems, C-224

Kirkland Signature, C-10, C-15

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

Kmart, 305

Kodak,25, C-15Kohlt, C-20Koninklijke DSM N.V., 276

Koninklijke Philips Electronics N.V., 276

KP Maclane, 116

value chain, 100

KP Sports, C-43, C-44Kraft Cheese Company, C-289Kraft Foods, Inc., C-317, C-318

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-287business segments, C -29 I - C -292

Developing Markets, C-294

Errope,C-294financial performance 2007 -2071,

c-288 c-289financial performance 2012, C-299

income statement, C-297 -C-298international 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 strategyacquisitions, C-290business 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

fi nancial performance 2012, C-292-C-296

financial summa ry, C -29 4- C -29 5

revenues, C-293

Kraft Foods Developing Markets,

c-292,C-294Kraft Foods Europe, C-297-C-292, C-294

Kraft Foods North America, C-291,

c-293-C-294Kroger,61, 727,C-318Kruger 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

Company Index

rhino poaching problem, C-369,

c-382-C-383sales transactions, C-371

self-funding problem, C-369

services, C-372Krupp Brothers, C-397KT Corporation,2T6Kwa Zulu Natal Wildlife, C-371

ILL. L. Bean,63Lacoste, C-53Ladera Vineyards, C-397Lafayette Tent & Awning Company, C-205

Lmbertson Truck, C-86L&M Farms, C-202Land Rover, C-246, C-247 , C-252,

c-253-c-254, C-2s5

Larkmead Vineyards, C-397Laugh-O-Grams, C-274Laurel Steel, C-20Leadership 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-2t0Lenovo, 209, C-182, C-194

Lenovo/IBM, market share in PCs, C-191

Lenox,230LensCrafters,360Levelor,230Levi 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-60Lincoln automobiles, 141

Lincoln Electric Company, 91, 358

employee motivation, 333

Linkedln, 352,C-35

Lionsgate, C-130Lipton Tea, 277, C-3I7Liz Claiborne, tnc., 364

LMP Steel & Wire CompanY, C-20

Logitech, C-168,C-L82Long |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.,276Loughridge Appraisals Ltd. lnc., C-202

Louis Vuitton, 136, C-74, C-77

Louis Vuitton Moet Hennessy; see LVMH

r-7

Page 10: crafting and executing strategy

I-8 Companv Index

Lowet' C-20 Manning Selr.age & Lee, 28 Microsoft Corporation, 25, 58, 130, 134,LTV Corporation, C-228 Maple LeafFoods, 162 150, 151, 162,271,283, C_168, C_180,Ltrcy,C 72 Marchesi Antinori, C-399 C-181, C-i82, C-IB7,C-332lululemon Athetica, c-53, C-60 Marchon Eyewear,rnc.,C-79 agreement with yahoo, c-185lululemon Athletica, case Marion Steel Compan1., Q-2Q financial performance 2007-2011, C IB4

business-level strategy, C-63 Market Insurance Company, C-202 online services, C-183-C-184in Canada and Australia, C-60 Markham Vineyards, C-397 Microsoft Exchange, C-195community based marketing, c-68 Marmot, c-53 x'Iicrosoft Xbox, c-137company history, C-59-C 60 Marriott Host International, C-314 Miljo Grenland/Innovasjon, C-247competitors, c-7r-c-72 Marriott International, r39,278,360, c-93 Millercoors, 70core values, c-69-c-7r Marriott Residence Inns, 139 Millstone, c-4corporate culture, c-69-c-71 Marsh, c-205 Nlilwaukee Bucks, c-49as cult phenomenon, C-60 Marshall Sons, C-247 Mintel, C-33distribution facilities, c-68 Marsh & Mclennan, 354 Nlinute Maid, 160equity investors, C-60 Maruti, C-250, C-253 Nlirama-r Films, C 275financial performance, C-61 C-62 Maruti-Suzuki, 204 Mitsubishi Corporation, 202, C-234franchising by, c-63 Marvel comics, 222 Mitsui & company, Lrd,., c 233growth strategy Marvel Entertainment, c-273, c-275, c-276, Mitsui uSA, c-233

brand awareness, c-60-c-61 c-277, c-282 Modellt sporting Goods, c,50broaden appeal of products, C-6 1 Mary Kay Cosmetics, 133, 357 , 361 Moen,229international expansion, C 61 business ethics,73 Moet Southwest Grill, C-123nerv product technologies, C-61 Maserati, 182 data on, C 101new stores in North America, c-60 Massey coal company, c-386 description, C-124

initial public offering, C-60 Massey Energy Corporation Mondelez Intern ational, C-287, C-292,international expansion, C-59 CEO, C-3S6-C-38S C-296-C-297manufacturers'code ofconduct, C-68 in coal industry, C-386 Mondragon co-operatives, C 154mission, C-62 critics of, C-386 Monk Coffee Affiliate Program, C-5net revenues 2012, C-59 and government regulation, C-388 Monro Muffler Brake, C-23number of employees, C-69 mine disaster, C-385-C-391 Morgan Keegan & Company, C-205product design and development, number ofemployees, C-385 Morgan Keegan Financial Products, Inc.,

C 66-C-67 revenue in 2009, C-385 C-203, C-204prodr.rct line, C-66 MasterCard, 42, C-25 Motel 6, 136

retail distribution, C-63-C-64 Mayo Clinic, 24 Motor Development International, C-247sales growth, C 59 McAfee,8 Motorola,207, 303,325, c-188, c-197, c-213stock price performance, C-59 McAlister's Deli, data on, C 101 Motorola Mobility, C,168, C-i81, C 187,C-197store expansion strategy, C-63-C-64 McDonaldt, 3, 5, 7, 10, 14, 25, i80, 189, 196, Motto Kryla Fisher, C-405store locations and description, 201-202, 206, 220, 27 I, 320,360, 36 1, Movado Group, C- 1 2, C-79

C 61-C-65 C-3,C 97,C 99,C 114, C-115, C 135, Movie Gallery, C-135store openings 2010 2011, C-59 C-267, C-320 Mumm Napa, C 398store personnel, C 69 strategy, 6 Museum of Modern Art, NY, C-333, C-334surging growth in 2012, C-59 McGraw Hill, C-26, C-28, C-30, C-32 MySpace, 169

target market, C 62 Connect, C 27 Mystic Monk Coffee, case

value chain activity outsourced, C-68 LearnSmart, C-27 affiliate program, C 5

website strategy, C 64 McGuire Woods Consulting LLP, C-202 company history, C-2-C-3wholesale strategy, C-64 McKinsey & Comp any, 293, 334 financial performance, C 5

lululemon Athletica USA, Inc., C-60 Mead lohnson, 161 marketing by, C 5

Lutheran World Relief, C-156 Meadow Event Park, C-203, C-204,C-210 operating expenses, C-5Luxottica, C-79, C-86 Meadow Farm, C,203, C-205 operations, C-4Luxury Institute, C 81 Merc Co-op, C 150 production, C-4LVMH, 192, 220, C-78 Mercedes-Benz, 7, 130, 14l,261,293 profit margin, C-5

acquisition ofBulgari, C-93 Merck, 325 strategic vision, C-5Mercy Corps, C-323 target market, C-4

t\ I Merrill Lynch, 220 website operations, C 5

lrrl Merrl'vale Vineyards, C-397MGM. C I3O

Macyt, Inc., 63, C-95 MG Rover, C-247 NMagnatrax Corporatron, C 20 Michael Kors, C-73Magnolia Bakery, C-33 Michelin, 130, 180, C 15 Nabisco, C 289,C-294Mahindra & Mahindra, 206, C-250 Michigan Star Furniture Company, C-332 Napa Valley Vintners Association,Major League Baseball, C 4,1, C-,18, C-49, C-58 Mickey Mouse Cltb, C 274 C-397, C-398

Page 11: crafting and executing strategy

NASCAR, 197,C-86National Association for the Specialty Food

Trade, C-34National Basketball Association. 197, C-49,

c-s8National Communication Commission,

Taiwan, C-266National 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-125National Semiconductor, C- 188

National Starch and ChemicalCompany, C-349

National Tyre Services, 244

National Wildlife Federation, C-334Nation's Restaurant News, C-124Nationwide Golf Car, Inc., C-205

NBA-Development League, C-58NBC network, C-1,34, C-220, C-333

NBCUniversal, C-275NBCUniversal International Television,

c-130, c-133NCR Corporation, C-135NDP Group, C-125NEC,2O2Neiman Marcus, 70

Nelson Steel, Inc., C-20

Nestl6, 180, C-75, C-290Nestld Waters, C-34Netflix, 25, C-168, C-182Netflix, case

advertising, C-144balance sheet, C-131

business model, C- 137-C- 139

cost ofstreaming content, C-141

effect on movie industry, C'136-C-137effects of strategy change

break with SIarz, C-127 -C I28need 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 tolibrary, C-142

increase in subscribers 2010-20II, C I27industry 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

international expansion, C- 1 30,

c r45-c-t 46

marketing, C-144new capital raised, C 130

performance prospects 20 12,

c-r46- C-r47revenue increase 2010-2011, C-127

statement of operations 2000-2011, C-131

stock price performance, C- 127

strategy-makingcomprehensive 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-143-c-t44new content acquisitions, C-i41transition to Internet delivery,

c-t44-C-145strategy reversal, C- 129-C- 130

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-operativeOrganization, C-149, C-i50, C-151

NewMarket Corporation, C-202

News Corporation, 160, 163, C-133

New York Times Company, 15

NeXT, C-188Nike, Inc., 24, 89, 167, 20I, 27 )., 279, 301.,

c-42, C-43, C-52, C-58, C-s9, C-61,

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

manufacturing, C-56marketing, C-54principal products, C-54

research and development, C-56

sales by region 2009-201 1, C-55

worldwide distribution network, C-54

Nikomart, C-261

Nikon, C 213

NiMitt LLC - Mitsui USA, C-233

Nintendo, 3, 151, 175

Nintendo Wii, C-137Nippon Steel, C-241

Nissan Motor Company, 98, 357, C-253

Nokia, 207, C-I68, C-I97smartphone market share, C-196

Noodles & Company, C-101

Nordstrom, 87, 107, I30, 153, 321, 344,

347-348,358, c 71

employee motivation, 333

objectives,30Nordstrom Rack, C-71

North American Coffee Partnership, C-316

North Face, 250, C-53

Northwest Airlines, 191

Northwest Water (UK), 323

Novo Nordisk, 268

ethical principles, 267

NPD Group, C-136

NTT,216Nuclear Corporation of America, C-220

Nucor Building Systems, C-224

Company Index

Nucor Corporation, 106, 125, 126, 357

incentives for strategy execution, 336

Nucor Corporation, case

BESTmarking program, C-232

company history, C-220 - C'221

competitionArcelorMittal U S A, C-244-C-245foreign 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-220low-cost leadership, C-22I- C-222

low employee turnover, C-238management changes, C-221 -C-222management philosophy, C-236-C-237

organizational structure, C-236-C-237pricing 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-225sales and earnings I970 - 201 I. C-22 I

sales by product category, C-227

strategy-makinggrowth via acquisitions, C-228-C-231

growth via joint ventures,

c-232-C-2331ow-cost production, C-232

new technologie s, C-23I -C-232plant constructio n, C-23 I -C-232raw materials strategy. C-23J C 2J5

shift to value-added products,

c-235-C-236workforce compensation, C 237 -C-238in world steel indtstry, C-240-C-242

Nucor Fastener, C-224

Nucor Steel Commercial Corporation, C 228

Nucor-Yamato, C 225

Administration, mission statement, 24

Odwalla, 160

Office Depot, C-20

Official Sports Partner, C-58

oK, c 261

ok6 usA, c-1s0Olympus,266Omiya Ardija, C-50

Omniplex World Services, C-202

On2 Technologies, C- 182

Opera, C-182Opus One, C-398

I-9

tJOccupational Safety and Health

Page 12: crafting and executing strategy

Pacific Gas & Electric Company, 275, C-401 Peju Winery, C-398Palm, C-192Panasonic, C-15, C-213Panera Bread Company, 158

Panera Bread Company, case

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

I-f0 Companv Index

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

OSI Restaurant Partners, 252

Otis Elevator, 196, 253,329

Outback Steakhouse, 252

Ovid Napa Valley, C-398

iJr

Pabst, 70

non-profit locations, C- 105

number of employees, C-109

operating statistics, C-99product line, C-LOL-C-|O4revenues in2}II, C-96sales in 2011, C-96stock price performance, C-l l3stores

Pelican Paper Company, Inc., C-205 Quintessa, C-398

supply chain, C-109-C-1 10

target market, C-97-C-99Panera Bread Foundation, C-105Papa fohn's, 139

Paradise Bakery & Cafe, C-96, C-97, C-108Paramount Studios, C-130, C-136Parmalat, 354

Parry Cellars, C-398

Patagonia, C-43,C-53Peabody Coal, C-386, C-389Pearson PLC, 276, C-26, C-27, C-30Peet's Coffee, C-37

Pemex, 168,362PenPal Exchange, C-156

Poulan, 128

Prada, 133, C-7 3, C-7 4, C-77, C-7 8

Preccor, C-15Premier League Football, C-51

income statements. C-269

c-261-C-272Price Club, C-7PriceCostco, C-7Price Enterprises Inc., C-7

management development, 294

strategic vision, 23

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

Puma, C-52, C-53

Qantas Airways, 192, 2l l, 328

Qdoba Mexican Grill, C-1.02, C-123

description, C-124 -C-215Qualserve Benchmarking Clearinghouse,

103, 104

QVC, C-es

Qwest Communications, 37, 354

iJ

Radio Disney, C-280

Radisson Hotels, C-316Rainbow Grocery C-154Ralph Lauren, 133, 253, C-74

Range Rover, C-254

Red Barn vineyard, C-393Redbox, C-132,C-135Red Bull, 130

Red Hat, C-169Redhook Ale Brewery, C-307RedTomato,C-149,C I5lReeboh C-53, C-s6, C-58, C's9,C-60,C-71Reebok-CCM Hockey, C-57, C-58Refco,354Regalia Manufacturing Company, C-205

Renault, C-253Renauit-Nissan, 168

Repsol YPF S. A.,276Research in Motion, C-181, C-1,92, C-197,

c-21r, c-216, C-219smartphone market share, C-196

Reserve Bank of India, C-250Reuters.com, C-178

Ricoh,202, C-218RIM: see Research in Motion

Rio Tinto Grorry,C-234Ripken Baseball, C-49Rite-Aid, 136,354,362Ritz-Carlton Hotels, 130, 139

Robert Mondavi Winery, C-398Roche Holding AG,276

PepsiCo, 87,I25,I31.,248,275,276,280, Qwikster, C-128-C-129c-318, c-320

licensing partnership, C-3 1 7

customer loyalty program, C- i05 Pesman Art Studio, C-27 4

differentiation strategy, C-97-C-99 PetSmart, C,20distribution, C- 109 -C-1 10 Pfizer,Inc.,92divestment of Au bon Pain, C-97 PGA Tour, C-86effect offinancial crisis, C-96expansion goal, C-96financial performance, C-98

business segment information, C 111 objectives, 30

company history, C-96-C-97competitors, C-100-C- 102

c-1 10-c-112marketing by, C- 105-C-106

Starbucks joint ventures, C-3 l6PepsiCo/Lipton, C-317

Phenix Cheese Corporation, C-289 RCTV C-130Philip Morris Companies, C-287,

c-289,c-290financialperformance2Ol2,C-ll3 PhilipsElectronics,3T-38franchise operations

company support for, C- 108

operating standards, C-108sales, C-108

growth strategies, C-102honors and awards, C-96interest in Paradise Bakery & Caf6, C-97 POSCO, C-241

management change2Ol0,C-97 Post Foods, C-290management information system, PostNL N. V, 276

Pillsbury,223Ping Golf,89

Polo Goll C-53Polo Ralph Lauren, 164, C-52,C-53,C-77 Regions Bank, C-204Popchips,differentiationstrategy,l38 REI,293Port Everglade Steel Corporation, C-228 Relactivity, C-130

criteriaforconsideration,C-107 Pnar,C-273,C-276,C-277,C-282initial investment. C-107 PizzaHti,189, 205, C-123, C-260new openings since 201 l, C- I l3 Playdom, Inc., C-277, C-283number offranchise groups, C-108 PNG) Enterprises,C-202

marketing research, C-105-C-106 Pratt & Whitney, 253

number ofoutlets in 2012, C-96 President Chain Store Corporation,C-268 Richmond Steel Recycling,C-228off-premise catering, C-104 C-105 balance sheets, C-270

joint venture with 7-Eleven, Inc., C-259, Ringling Brothers, 154

environment/ambience, C- 108-C-109 Procter & Gamb\e,3,25,88,98, 127,225,247, Roark Capital Group, C-100, C- 101, C- 124

operation, C-109site selection, C- 108-C- I 09

strategy-making, C- 97 - C - lO2

274,312, C-i5, C-15i, C-346, C-347 Robert Craig Winery, C-398

Page 13: crafting and executing strategy

Rockport, C-53, C-56-C-57, C-53Rod Markin Consulting, C-206Roku, C-137Rolex,7,70, 130

Rolls-Royce, 133,136Roquette, 192, 2llRosenthal, C-93Roto-Rooter, 189

Royal Bank of Sc otland, 2 43

Royal Dutch/Shell, 27 8, 362

Roy's Restaurant,252Rubbermaid,29TRuby Tuesday, C-99, C-102RueLaLa, 153

Russell, C-53

Rutherford Dust Society, C-393

Ryanair, 106, 150-151, 328

Ryka, C-53

q

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

St. Sup6ry Estate, C-398Saint Louis Bread Company, C-96, C-105Saintsbury, C-398Saks Fifth Avenu e, 7 0, C-7 4

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

description, C -20 -C -2 1

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

c-2r-c-22merchandise offe r ings, C-21 -C -23

Samsung Electronics Company Ltd., 173,

207,276, C,rs, C-187, C-t97,C-211smartphone market share, C-196

Samsung Group, 173

Samuel Adams, 162

Sandleman & Associates, C-96Sanford Financial Grotp,264, 354

investment fraud, 265

San Pellegrino, C-34Sara Lee Corp or alion, 247

acquisition of Coach Inc.,C-74SAS Institute,29Satyam Computer Services, 208

Saucony, C-53Save the Children, C-329Schlotzky's, C-124Schneiders, 162

Schramsberg Vineyards, C-398

Scotland Yard, 24

Scottrade,304Scotty Cameron, 229

Sears, Roebuck,353, C-10, C-95Seattle's Best Coffee, C-4, C-3 17-C-3 1 8

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

Sephora,192,2117-Eleven Inc., 189

7-Eleven Inc., case

business model, C-257-C-258company history, C-257convenience store concept, C-257franchise operations, C-257 -C-258franchises worldwid,e 2011, C-256international expansion, C-256location of stores, C-257store construction, C-257, C-258

in Taiwancoffee counters, C-266-C-267delivery and pickup, C-266franchise rights and Shanghal C-272future developm ents, C -27 I -C -27 2

i-Cash cards, C-266infrastructure support, C-268-C-27 Iinitial mistakes, C-261-C-263innovations, C-264-C-265localization, C-263-C-264logistics, C-268market share, C-267number of stores, C-267partnership with President Chain

Stores, C-259, C-261-C-272phone plans, C-266pre-ordering, C-266seating areas, C-267store layout, C-262taxi services, C-267-C-268

24-hour stores, C-257Severstal, C-241

Seward Community Co-op, C-150Shanda,207Shanghai Disney Resort, C-278, C-281Sharo, 202

Sharpie pens,230Sheba Properties Ltd., C -248Shell Oil Company, 168

Sheraton Hotels, 98, C-316ShopHouse Southeast Asian Kitchen, C- I 14

test format, C-123Shougang Corporation, C-234Showtime, C-132,C 133, C-134, C-135,

c-r45, c-282Siddall, Inc., C-205Siemens AG,29,354Sift Cupcake and Dessert Bar, case

advertising, C-35-C-36balance sheet, C-39business plan, C-39-C-4Icommunity events, C-36company history, C-35competitors, C-37core values, C-36

Company Index

customer demographics, C-34financial performance, C-27, C-39growth initiatives, C- 37 -C- 4lgrowth options 20ll-2073, C-40hiring poiicy, C-37human resource issues, C-36-C-37marketing strate gy, C-35-C-36mission statement, C-36prospects for survival in 2010, C-33

rebranding, C-36San Francisco Bay area locations, C-38social media use, C-35-C-36in specialty bakery market, C-33-C-35store staffing levels, C-37

Signet Group, PLC, C-89description, C-91-C-92financial data, C-92

Sikorsky,253Silicon Valley Bank, C-403Silverado Vineyards, C-398Silver Oak Cellars, C-398Singapore Airlines, 3Sirius XM satellite radio, C-280

versus over-the-air broadcasters, I lSk1pe, 162

Sleep Inn, 136

SMG, C-205SMS Schloemann-Siemag AG, C-242Smucker's,225Snack Food Asso ciation,TTSnapper, 55

Solazyme, 191,211

cross-border alliances, 192

Solidaridad, C- 161

Sony Corporation, 98, 151, 202, C-15,c-182,C-2r2

Sony Pictures Television, C-130, C-136Sony PlayStation Network, C-I32Sony PlayStation 3, C-137South African National Parks, case

criticisms of, C-383

Environmental Crimes Unit, C-372,

c-382game capture org anization, C -37 2

justification for selling rhinos, C-383

rhino capture, C-369, C 372-C-377and rhino poaching, C-382-C-383Veterinary Wildlife Services, C-372,

c-373-C-375views on rhino hunting, C-371

South African National Police, C-382Southern Financial Corporalion, C 202

Southern Title Insurance Corporation,c-202

Southland Ice Company, C-257South Pacific Steel Corporation, C-20Southwest Airlines,3,7, 103, 125,

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

I-r I

Page 14: crafting and executing strategy

l-12 Company Index

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

c-398SpringHill Suites, 139

Spring Mountain, C-393

Sprinkles, C-37Sprint, C-195

Sprint-Nextel, 169

Spydea 303, C-53

Stag's Leap Wine Cellars, C-398, C-399Stagt Leap Winery, C-398, C-399

Standard and Poor's, C-221, C-228, C 344Staples, 61, 275,280, C-20Starbucks,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

Starbucks, case

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

c-317-c-318advertising, C-320agreement with PepsiCo and Unilever,

c,317alliance with Creen Mountain,

c-3I 8-C,31 9

business model development,c-308-c-309

capital formation, C-309capital raising, C-3 I 1

coffee purchasing strategyethical sourcing, C-326-C-327and Fair Trade International, C-326key elements, C 324

partnership with ConservationInternational, C-326

pricing and purchasing arrangements,

c-32s-c-326small farmer support program,

c 326-C-327company history, C-307-C-3 l0consumer products group, C 319-C-320core values, C-324, C-325corporate social responsibility strategy

charitable contributions, C-328-C-329community involvement, C-328corporate citizenship, C-328

environmental stewardship, C-328

ethical sourcing, C-327 -C-328customer relations, C-329-C-330effect of recession, C-305employee 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-324work environmenl, C-322

Ethical Tea Partnership, C-326

financial performance 2007-201 1, C-306

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

international expansion, C-305international strategy, C-330joint ventures, C-316-C-317labor productivity, C-330licensing agreement with Kraft, C-317mission statemenl, C-324, C-325

national expansion, C-3 l0-C-3 I tnew market segments, C-316-C-319new product launch 2009, C-318, C-319

non-coffee options, C-3 19

operations and production, C-327performance targets, C-330

as private company, C-310-C-311product line expansion, C-316- C-319sales mix in 2011, C-319store ambience, C-312store design, C-3i2store expansion strategy

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

international expansion, C-314-C-316licensing agreements, C-314 C-315

strategic plan, C-3 10-C-3 I Isupply chain management, C-312

top managemenr, C-329transformation activities, C-305

vertical integration, C-320vision, C-310

workplace environment, C-320, C-322

Starbucks Coffee, Tea, and Spice, C-307Starbucks Coffee School, C-323

Starbucks Farmer Support Centers,

c-323-C-324Starbucks Foundation, C-328 C-329

Star Furniture Company, C-332

STAR satellite TV 206

Stars Restaurant, C-1 14

Starz, C-127, C-132, C-133, C- 135, C-145,

c-282State Fair ofVirginia, case

acquisitions and divestitures, C-203

bankruptcy threat, C-207board of directors, C-202capital investment strategy, C-204-C-205capital raising strategy

Department of Agriculture loans,

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

tax-exempt bonds, C-204unsecured debt, C-204

company history, C- 198-C- 1 99

corporate governance, C 201,-C-203

credrtors. (.-205

debt obligations, C 203

financial performance 2006-20 I 0,

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

management, C-201

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

in not-for-profit sector, C- 199-C-200operating structure, C-201

in recession, C-205-C-206strategic options for survival,

c-207-c-209timeline, C-199

State Farm Insurance, 164

Steelcase, C-344Sterling Pharmaceuticals, C-2 1 2

Sterling Vineyards, C-398Stihl, 145

Stonfield Farm, 279

Stony Hill Mneyard, C-398Strategic Planning Institute, 103

Stride Rite, 128

Subway, C-97, C-318SUGGI, C-53

Sumitomo Metal Industries, C-228Summers Grorp,244Summit, C-130Sunbelt Rentals, C-205

Sun Capital Partners, C-101Sundaram Fasteners, 209

Sun Microsystems, 162, C - 169

Super 8, 136136

Super Target, C-10

Susan G. Komen for the Cure, 29

Suzuki, 206, C-250Swiss Re Limited,276SYSCO Corporation, C-3 l6

TI

T Rowe Price Associates, C-130Taco Bell, 189,205

description, C-123- C- 1.24

TAL Manufacturing Solutlons Ltd., C -248Target Stores, 7 -8, 63, 7 I, 98, 138, 145,225,

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

c-318Tata Daewoo, C-247

Tata Daewoo Commercial Vehicle CornpanyLtd., c -248, c-2s3

Tata Englneering and Locomotive Company,c-246,C-247

Tata Groupdescription, C-2,16

financial summary, C 246

future of subsidi aries, C-254-C-255Tata Hispano Motors Carrocera S.A., C -248Tata Holset Ltd., C-247Tata Marcopolo Motors Ltd., C -248Tata Motors, Ltd., case

acquisition of laguar and Land Rover,

c-247awards, C-247

Page 15: crafting and executing strategy

balance sheet, C-249

business strategyinternational 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-250g1obal manufactw ing, C - 246

growth prospects, C-254-C-255income statement, C - 248 -C -249

in Indian's auto industry, C-250, C-251

industry position, C-246

international expansion, C-247joint ventures, C-247, C-248

marketing research, C-252

Nano people's car, C-252-C-253

ownership of, C-246passenger cars, C-252production of laguar and Land Rover,

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

subsidiaries, C-248

target market, C-252

unit sales, C-254

Tata Motors European Technical Centre plc,

c -248Tata Motors Insurance Broking & Advisory

Serr.ices Ltd., C -248Tata Motors Limited, Hispano, C-253

Tata Motors (SA) Proprietary Ltd., C -248Tata Motors (Thailand) Ltd., C -248, C-253

Tata Nano Europa, C-247Tata Steel, C-241

Tata Technologies Ltd., C -248TaylorMade-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 -248Telefe, C 130

Telemundo, C-130

Televisa, 209, C-130

Tencent,207Ten Thousand Villages, C-161

Tesla Motors, 170

Tesla Roadster, 280

Textron, 229

T.G.I. Fridays, C-99, C-I02Thanksgiving Coffee Company

balance sheet, C-165

compared to Equal Exchange,

c-r63-c-r64description, 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-2473M 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-89company history, C 84-C-85competition

Blue Nile, Inc., C-93

Bulgari, C-92-C-93Costco, C-94

Signet Group, C-91-C-92diamond purchasing, C-88

effect of financial crisis of 2008, C-86

financial performance, C-86*C-87flagship 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-85product 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-132Time Warner Cable, 169, C-133, C-134

Timex,70Titleist,229TML Distribution Company Limited,

c 248TML Drivelines Limited, C -248TML Holdings Pte. Ltd., C -248TNS 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-257Touchstone 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-20mission statement. 24

Company Index 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-130TV Bandeirantes, C-130

TV G1obo, C-130Twentieth Century Fox, 163, 160

Twitter, 352, C-34, C-50

Tyco International, 354

Tyson Foods, 280

UUkrop'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

competitionadidas Group, C-56-C-58major competitors, C-63

Nike, Inc., C-53-C-56distribution facilities, C-52

distribution strategydirect-to-consumer sales, C-50

in Europe and Latin America.

c-50 -c-51product licensing, C-50

wholesale, C-50growth strategy initiatives, C-46

history as KP Sports, C-42-C-44income 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-52product design and development, C 51

product line strategy

accessories, C-47

apparel, C-46-C-47cash flow data, C-45

footwear, C-47

product presentation, C-49-C-50rapid growth after 2000, C-43-C-44retail marketing, C-49-C-50sales in 201 1, C-42

Page 16: crafting and executing strategy

r-t4 Company Index

Under Armour, case-Cont.sports marketing

celebrity sponsorships, C-49

college and university teams,

c-47-C-48professional teams, C-48-C-49

stock ownership, C-44supply chain, C-51-C-52

Under Armour All-America FootballGame, C-49

Under Armour All-America LacrosseLlasslc. ( --49

Under Armour Marathon, C-49

Under Armour Senior Bowl, C-49Ungaro, C-93

Unilever, 192, 205, 21. l, 277, C-3\7, C-320,c-346, C-347

Union Bank and Trust Company, C-202Union Bankshares, C-202Union Cab, C-154Union First Market Bankshares, Inc.,

c-20t, c-202Union ofEuropean Football Associations, C-58Uni-President Enterprises Corporation

Group, C-259, C-261

business units, C-268diversification, C-261

first 7-Eleven store, C-261launch ofPresident Chain Stores, C-261

United Airlines, C-316United for a Fair Economy, C-154

United Parcel Service, 29, 329, C-4United Parcel Service Store, 189

United States Federation of WorkerCooperatives, C-154

United States Green Building Council,c-334, C-401

United States Postal Service, 329,

c-1, c-r37United States Steel, C-220, C-241, C-244

sales and production, C-244-C-245United States Tennis Association, C-86United States Women's National Soccer

Team, C-49United Technologies, 253

United Way, C-19

Universal Corporation, C-202

Universal Studios, C-134, C-136, C-27 4

UPEC lnfra:tructure Companies,c-268, C 272

Upper Big Branch Mine disaster, case

causes

equipment maintenance, C-390 C 391

rock dust, C-390ventilation problems, C-390

company CEO, C-386-C-388go\rernment regulation of mining, C-388and Massey Energy Corporation,

c 385-C-388number of employees, C-389

occurrence April 2010, C-385safety and health citations, C-389

safety violations, C-389-C-390US. Beverages, C-290, C-291

U.S. Cheese, C-290, C-291

U.S. Convenience Meals, C-290, C-291US. Foodservice, C-316U.S. Grocery, C-290, C-29 IUTC Fire & Security, 253

u I (- Power. ,2 5 J

urv, c-27;, c-z8o

\/v

V Sattui Winery, C-398

Vector Products, 225

Vente Priv6e, 153

Verco Manufaciuring Company, C-20Verizon Communications, 301, C-132Verizon Wireless, C-23, C-195Versace, 71, C-73, C-77VF Corporation, 250, C-72Virginia Golf Cars. 1nc.. C-205Visa, C-25

Vizio, Inc., 128

Volker Eisele Family Estate, C-398Volkswagen, 187, 212, C-253VUDU.com, C-L32,C-136Vulcraft, C-20, C-220, C-222

Gore & Associates, 136, 344, 358, 360

365

corporate culture, 345

employee motivation, 333

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. l2lWalmart Photo Center, C-136Walmart Supercenters, C- 10

Walt Disney Company, 93, 19 6, 200, 222,

360, C-133

businesses runby, 253-254Walt Disney Compaw case

acquisitions, C'27 5, C'27 6-C-27 8balance sheets, C 285

capital expenditures, C-273

company history, C -27 4-C -27 5

corporate strategyconsumer products, C-282-C-283financial resource allocation. C 278

focus ol C-276interactive media, C-283 C 284

wWL.

international expansion effort, C-278media networks, C-27 8-C-280parks and resorts, C-280-C-281studio entertainm ent, C-28 I -C-282synergies among units, C-278

fi nancial perform ance 2007 -20 I I,c-275-C-276

financial performance 2012, C-286

income statements, C-284management changes, C-275

operating results

consumer products, C-283

interactive media, C-284media networks, C-280parks and resorts, C-282

studio entertainment, C-283

performance since 2005, C-273relaled diversitication, C-275,

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

Walt Disney International, C-275

Walt Disney Pictures, C-282Walt Disney ProducLions, C-274, C-275Walt Disney Studios, C-i30, C-134,C-275Walt Disney World Resort, C-275, C-280, C-281Warner Brothers, C-136

Warner Home Entertainment, C-133Waterford, C-12

WD Partners, C-124Weather Channel, 154

Wegmans, employee motivation, 333

\Vells Fargo, 160,264Welsh Rugby Union, C-49Wendyt, 301, C-97Westbeach Sports, C-59

Westin Hotels, C-316

Wetpac Banking Corporation, 276

Whirlpool Corporation, 128, 130, 301, 338

Six Sigma program, 326

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

c-t63, c-320William Hill Estate Winery, C-398

Willy Street Grocery Co-op, C- 150

Wilton Companies, C-202

Wine Institute, C-396

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

Wuling Automotive, C-253

Xebro. ( ,-5{ I

Xerox Corporation, 103, 218

XM/DIRECTV C-280Xstrata PLC. 276

Page 17: crafting and executing strategy

I

Yahool, C-i34, C-169, C-183

financial performance

2007-201 1, c-18sonline services, C-184-C- 185

\amaha,222Yamato-Kogyo, C-225

Yelp.com, C-37

Yuengling & Sons, 70, 77

Yum! Brands, 189, 204, C'123strategy for China, 205

XZagat, C-96Zale, C-95Zappos Family of Companies, mission and

Company Index I-r5

Zella, C^72

Zingeli Safaris, C-381

Zipcar Inc.,I54

YouTube, 139, C-35, C-I32,C-134,C-143, core values, 26-27

C-168, C-175, C-178, C-182, C-185 Zara,163

Page 18: crafting and executing strategy

,&

Aaronson, Susan Ariel, 284

Abkowitz, Alyss,265Abufarha, N., C-167Adams, lohn B.,C-202Adams, John Quincy, 342

Adams, Steven 8., C-332Agboka, Christelle, C-331

Aggarwal,,{khil, C-153

Ahlstrand, Bruce,43Ahuja, G.,255Albert, 8., C-166, C-167Al Din, Ashur, C-345

Alexader, John, C-153Alexander, M., 255

Alix, Amanda, C-147Ambroz, Milan,340Amelio, Gil, C-188Amit, R., 117

Amsden, Davida M., 339

Amsden, Robert T,339Anand, J., 212

Anderson, Eric T., 16

Annan, Kofi, 178

Anslinger, Patricia L., 177, 255

Antony, fiju,339Argandoa, Antonio, 284

Armstrong, D., 161

Arnold, David 1., 213

Ascari, Alessio, 339

Ash, Mary Ka,v, 18

Atkin, T., C-406

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

ftt-)Badaracco, loseph L., 365

Bagel-Trah, Simone, C-350, C-354, C-355,

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

Bain, l. S.,78Baldwin, Jerry,C-307, C-308, C-309, C-310Ballus, Andrea, C 33, C-35, C-36, C-37,

c-39, C-41Ballus, Jeff, C-33

Band, David C., 340

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

I-16

Bareilles, Sara, 169

Barkema, H.,255,314Barney, lay B., 117, 365Barrett, Amy,248Barringer, Bruce,43Bartels, Rudy, C-337Barthdlemy, J6.r6me, 177 ,314Bartlett, Christopher A., 117, 177,2I3,3I3,

3t4,365Baum, 1., 314

Baun, William 8.,285Ba-.rter, Wayne, C-342, C-343Beale, G. William "Blllyl' C-201, C-2A2Beauclramp, T.L.284Beckett, Ron,339Beckham, David, C-58Beer, lonah, C-399, C-40I, C-106Begany, Tim, C-126Belling, Keith, 38

Bellus, Iefl C-35, C-36, C-37Benzekri, Borzou, C-345Bergen, Mark E. , ll7, 176

Berlin, Lorin, 284

Berry, Leonard L., 285

Bettcher, Kim Eric, 284

Betts, Doug, 358

Bezos, jeff, 157, 330, 359

Bhattacharya, Arindam K., 208, 213

Binkley, Christina, 100

Birchall, David W, I 18

Bird, Katie, 273

Birinyi, Laszlo,44Blakely, Lindsay,38Blanding, Michael, C-166Blank, Arthur, 151

Blankenship, Donald L., C-386-C-388,c-389-C-390, C-391

Bleeke, ioe1, 177, 212

Bluedorn, Allen C.,43Boesky, Ivan, C-212Bogan, 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-310Brady, Tom, C-49Branagh, Nicole, C-49Brearton, David, C-299Brees, Drew, C-54Brenner, D.,C-406Brin, Sergey, C-168-C-169, C-171, C-186

Brinkman, lohannes, 284

Briscoe, fason, 340

Brodt, s., C-396,C-406Brohan, Mark, I53,157Bromiley, Philip,43Brooks, S., C-395, C-406

Brotman, Ieff,C-7, C-9, C-18Brown, David, 284

Brown, Robert,43Brown, Shona L., 16

Brugman, leb,285Brush, T,255Bryan, lohn, C-201

Bryant, Adam, C-358

Bryce, David J., 176

Buckley, P.1.,212

Bufford, Jodi, C-201

Bulgari, Constantino, C-92Bulgari, Georgio, C-92

Bulgari, Sotirio, C-92Burcher, Peter, 339

Burke, Doris, 265

Burke, Ronald J., 339

Burnah, Phillip, 314, 340

Burns, Lawton R., 339

Burnsed, Brian, 339

Burton, R. M.,314Bush, George W, C'391Byler, Edna Ruth, C-161

Byrne, lohn,313Byrnes, N., 336

Byrnes, Nanette, C-245

Byrnes, Rhonda, C-69

rCahn, Miles, C-74Caliguiri, Paula M., 340

Camp, Robert C., 118

Campbell, A.,255,314Campbell, f. Kermit, C-334Cannella, A., 255

Caplinger, Dan, C-126Capron, Laurence, 80, 2I2Carasco, Emily F., 365

Carp, David, C-212-C-213Carroll, Archie B., 284

Carroll, Matthew, 153

Carter, lohn C.,365Carver, Iohn,43Casperson, Todd, C-153

Cavanaugh, Roland R., 339

Cha, Sandra E., 365

Chameides. B|r1,273

Page 19: crafting and executing strategy

Champy, )., 339

Chandler, Alfred,314Chandler, Colby, C-2i2Chaney, William, C-85Chang, Aihwa, C-256Chang, D. F., 137

Charan, Ram,3l3, 355

Charney, Dov, 166

Chatain, O., 177

Chatham, lennifer A., 365

unattaflee,5., 255

Chavez, Cesar, C-151

Chen, Chia-Pei,284Chen, Roger,284Chen, Shih-Fen, C-256Cheney, Lauren, C-49Chichestes Richard, C-202Christensen, Clayton M., 16,340, C-342Christensen, H. Kurt, 212

Clarh Delwyn N.,355Clark, Robert C.,43Cocuzza, Thomas G., 118

Cohen, Alan R., C-302Collins, James C ., 43,285, 313, 317

Collins, |ohn, 149

Collis, David J., 2,43,255Conley, L., C-166Cooh Tim, C-187, C- 189, C-197Cooper, Robin, 118

Copeland, Michael V., C-147Copeland, Thomas E., 255

Cordon, Carlos, 314

Correnti, lohn, C-222Covey, Steven, C-69Covin, Jeffrey G., 43, 177

Coyne, Kevin P., 176

Crawford, Iames, C-391

Creamer, Paula, C-58Creed, Greg, C-124Cristie, James R.,40Crosby, Philip,339Cusamano, Michael A' 120, 17 6

Cutler, L,, C-406

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

Dash, Eric,40DAveni, Richard, 176

Davidson, Hugh, 22,43Davidson, Wallace N., 285

Davis, Scott, 176

Davis, Vernon, C-49Dawar, Niroj, 213

Day, Christine M., C-61

Day'ton, Nick A., 340

Deal, Terrence E., 365

Debaise, Colleen, 153

DeCarlo, Scott,40Dechant, Kathleen,284Decinney, Timothy M. 284Decker, Charles L.,294Delios, A., 212

Dell, Michael, 149

Delmas, M. A., C-405DeMerritt, Doug, C-400, C-406De Pree, Dirk fan, C-332, C-333De Pree, Hugh, C-333, C-334, C-339De Pree, Max, C-334, C-337Derfus, Pamela |.,78Deshpand6, Rohit,284Dhanaraj,C.2l2Dickinson, Rink, C-148, C- 149, C- 150, C- 151,

c-163, C-r64-C-r6s, C-r66, C-r67Dienhart, lohnW.,269DiMicco, Daniel R., C-222, C-232, C-243Dinur, A.,212Disney, Roy O., C-274, C-275Disney, Walt, 287, C,273, C-274, C-275Donald, lim, C-329Donaldson, Thomas,284Dosi, G., 313

Dowdy, T., C-202Doz, Yves L., I77,212,213,255Dragonetti, Nicola C., 118

Dranikoff, Lee,255Drucker, Peter F., 80, 255,342Duhigg, Charles, 259, 303

Dunfee, Thomas W.,284Dussauge, Capron P., 272,314Dutta, Soumitra,339Dyer, feffrey H., 176, 177,213

rt_Eames, Charles, C-333Eames, Ray, C-333Eastburn, Ronald W, C-73Eastman, George,C-212Edwards, Jim,265Eichenwald, Ktrrt, 28 4, 365

Eisenhardt, Kathleen M., 16, Il7, 255

Eisenstat, Russell, 117, 314

Eisner, Alan, C-275Eisner, Michael, 214, C-275Ekberg, P., C-406El Afifi, Ashraf, C-354, C-355Elfenbein, Hillary A., 285

El-felly, Abuzar,285Ellis, |. L., C-85Ells, Steve, C-l14, C-115, C-123Elsaesser, Caitlin,38English, Michael f., 339

Ernst, David, 177,212Everts, Rob, C-148,C-149, C-150, C-151,

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

Name Index

F

l-17

Fahey, Liam, 176,2I3Fanfa, Corey, C-33Farkas, Charles M,, 365Fawcett, Stanley 8., 314, 340

Federer, Roger, C-54Ferratt, Thomas W,339Ferrier, W f., 176

Fiegenbaum, Avi,78Fi1o, David, C-169

Fiorentio, Amy.,274Fiorina, Carly, C-346Fisher, George, C-212-C-21 3

Floyd, Steven W, 313

Fogelsong, Robert, C-391Foote, Nathaniel, l17 , 314Forbes, Malcolm,3lTFord, Henry,2lFrancis, Arlene, C-333

Frankel, Daniel, C-147FranKort, Lew C-7 4, C-79-C-80, C-81,

c-82Franko, Lawrence G., 255

Franson, P,, C-406Fraser, Kenneth P.,345

Fritzsche, Michael, C-201

Frost, Carl, C-333Frost, Tony, 213

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

f:Gabrys, Richard, C-391

Galunic, D. Charles, 255

Gamble, fohn E., C-73, C-I68, C-187, C-2II,c-247, C-273, C-287

Garcia, Sergio, C-58Gardner, fohn L., 192

Gatrette,8., 212

Garvin, David A.,43Gates, Bill, 149, 178, C-I83Gates, Gary, C-400Gavetti, G., 146

Gehani, R. Ray, C-211

George, S.,339Ger, Guitz,213Geroski, Pau]L A.,177Gerstner, Louis V., lr., l2O,342Ghemawat, Pankaj,213Ghoshal, Sumantra, 117, 177, 213,313, 314,

365

Gilbert, Clark G., 43

Gilbert, D., 265

Gilinsky, Armand,lr., C-33, C-392, C-406Gilpin, M., C-202

Girard, Alexander, C-333Glaister, K.W.,2I2

Page 20: crafting and executing strategy

I-18 Name Index

Glisson, Britton, C-202

brovel J,, 155

Goffee, Robert, 365

Goldberg, Alan B., C-25

Golden, TimothyD.,284Goldsmith, Marshall, 3 14

Goleman, Daniel, 365

Gomes, Rick, C-366, C-367Goodell, leff, C-386, C-391

Goodland, Robert,284Goodman, Paul S., 340

Goodrich, D., C-166

Goold, M., 255,314Goosen, Retiel C-58

Gordon, |oseph, 339

Gordon, M. ioseph, /r, 339Gordon, Marcy, 284

Gordon, Mary Ellen, 78

Govindarajan, Vijay, 1 18

Graham, Jefferson,333Grant, L. 8., C-406Grant, R., 313

Greenfield, W M.,284Greenhouse, Steven, C-25Gregorio, Rui, C-33

Gregory-Cla1ton, Sean, C- 1 13

Grimm, Curtis M.,78, 176

Gunnarson, Sarah K., 365

Guthey, G. T, C-406

tJfEHaddock, M. A., C-210Hall, Gene, 339

Hall, Ted, C-399

Hambrick, Donald C., 176,255Hamel, Gary, 177, 212, 213, 214, 255, 313Hamm, Steve,213

Hammer, M.,339Hanson, ]ames, 230

Hariharan, S., 78

Harper, Bryce, C 49

Harrigan, Kathryn R., 176,177Haspeslagh, 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.,255Hazelgrove, Bruce, C-202

Heeley, Michael B., 177

Heifetz, Ronald A., 365

Heikkild, Jussi, 314

Helfat, Constance E., 1 17, I 18, 313, 314Hendricks, Kevin 8., 43

Henkel, Fritz, C-346Henriques, Adrian,284Herrera, Tilde, 284

Hertsgaard, M., C .406

Heskett, James L.,340,365, C 153

Hess, David,284Hesselbein, Frances, 314Hicks, L. Wayne, C-126

Hill, Ronald Pad,27lHilmer, F.,314Hindo, Brian, 339

Hirsch, lerry, 358

Hodgetts, Richard M., 340

Hofmann, Hannah, C-352

Hofmeyer, Markus, C -3 69, C-37 7

Hofmeyer, Robyn, C-342, C-343Holpp, Larry, 339

Horn, lohn, 176

House, Charles H., 43

Hout, Thomas M., 365Hoving, Walter, C-85

Howes, Daniel,358Hsieh, lames, C-260, C-26I, C-266, C-267,

c-268, C-272

Hubbell, Victoria, 365

Huggins, Dennis L., 38, 161

Hughes, lonathan,177Hult, G.,314Humble, John,365Hurd, fonathan, 177

Hyland, Paul,339

II

Iacobucci, Dawn, 118

Iansiti, Marco, 127

Iger, Robert, C -27 3, C-27 5, C-27 8, C -250,

c-282, C-283, C-286Inkpen, A. C., 177,212Inman, Bobby R., C-391

Intardonato, J., C-406Isidore, Chris, 40

Iverson, F. Kenneth, C 220, C-221-C-222,c-239

Iwerks, Ub, C-274

I*l

|ackson, David,365

Jacobs, Brandon, C-49

lacobsen, Kristine, 1 18

lames, LeBron, C-54

lannarone, Iohn, C-I17Iassawalla, Avan R., 365

Jelinek, Craig, C-7, C-9, C-i8lemison, D.,255

Jenk, ]ustin, 177

Jennings, Bryan, C-rl9

fickling, Mark, 40

lobs, Steven, 31, C-187, C-188-C-189,c r97,c-355

lohn, King ofEngland, C-301

Johnson, D., C-166

Johnson, Dustin, C-58

|ohnson, Julie, C-393, C-404

Johnson, Kim, C-302

Johnson, Mark W, 16

Johnson, Richard, C-202

lones, Gareth, 365

Joseph, Peter, C-3

Judge, Lady, C-391

Jung, Andrea,3lfuran,1.,339

fit

Kagermann, Henning, 16

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

Kallio,Larry, C-342

Kaminski, Joanna, C-148Kanazawa, Michael T., 365

Kane, Louis, C-96Kane, Yukari Iwatani, C-197Kanter, Rosabeth Moss, 177, 213,3I4,365Kaplan, D., C-167Kaplan, David A., C-126

Kaplan, Nancy f., 177

Kaplan, Robert S., 43, 1 18

Karim, S.,314

Katila, R., 255

Katz, Basil, 284

Kaufman, Rhonda,43Kaufman, Stephen P.,43

Kearney, Hannah, 296Keeble, lustin, 284Keeley, Larry, C-219

Kelly, M., C-166Kennedy, Allen A., 365

Kerr, Steven, 340

Khandelwal, Deepauk, C- 150

Khanna, Tarun, 213

Khuzami, Robert,266Kiehl, Andy, C-33

Killifer, Valerie, C- 126

Kim, Jane 1., 265

Kim, W Chan,43, 177

Kimberly, John R., 339

Kindred, Natalie, C-345

King, David, C-201

Knight, Phil,279Koch, Charles G., 18

Kogut, B., 212,3I4Koller, Tim, 255

Kolwaski, Michael, C-85

Kotlea Philip, i76Kotter, John P.,22, 340, 365

Koza, M., 177

Kraft, J. L., C-289Krakofl Reed, C-74, C 79, C 80

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

Page 21: crafting and executing strategy

Kumar, N., 213

Kwak, Mary, 176

IL

Lachenauer, Rob, 175

Larnpel, foseph, 43, C-300Lang, Bret, C-147Lanzolla, Gianito, L77

Launder, William, C-147Laurie, Donald L., 355

Lawrence, Anne T., C-385Lawrence, Ron, C-310Lawrence Anne T., 284

Lee, Hau L., 118

Lee, Terry Nels, 340

Lehner, Ulrich, C-346Lemak, David J., 340

Leson, G., C-167Levesque, Lynned C., 43

Levicki, C., 314

Levien, Roy, 127

Lewin,4.,177Lewis, Ray, C-49

Lieberthal, Kenneth, 213

Liedtka, Jeanne M .,255, 374

Liedtke, Michael, C-147Light, loe, C-166Lin, fudith H., 153

Lin,Lyda,C-272Lindsay, Samantha, C-26Lindsol, Harry, C-26, C-28-C-29, C-30,

c-32Link,Jay,C-337Little, Arthur D., 284

Little, Royal,229Lombardi, Vince,317

Lorsch, )ay W, 43, 365

Loughridge, P atricia, C- 202

Lubatkin, M., 255

Lyles,M. A'212

MMabunda, David, C-372, C-382

Macauley, Margaret W, 303

Macdonald, J. G., C-166MacMillan, Ian C., 176

MacNeil, H., C-166

Madhok, Anoop,l77Madofl Bernard L,265, 269

Maggitti, Patrick G., 78

Magretta, )oan, 16

Mahan, Hunter, C-49Maier, Molly,38Majchrzak, Ann, 339

Mani, Divya A.,294Mannix, E.,314

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

Marchionne, Sergio, 358

Marcus, Bernie, 151

Margolis, Joshua D,, 284,285Marino, Lou, C-187Markides, Constantinos C., 16,80, 177,254,

255,287Martin, J., 117

Marx, Matt, 340

Mary, Daniel, C-2, C-3, C-5Mary, Simon, C-3Mathews, Clay,C-54Mathewson, Mark, C-33Mattioli, Dana, C-72

Mauborgne, Rende 43, 177

McCawley, Tom,285McClellan, I ennrfer, C-202McCool, Grant,284McCormick, Chris "Maccai' C-49McGrath, Rita Gunther, 176

Mclver, Ronan, 177

McKones-Sweets, K. E,, C-166Mclaughlin, Andrew, C-186Mclellan, Eiizabeth, C-383McNulty, Iohn,C-367Meers, Robert, C-60Menges, Kathrin, C-351, C-353, C-354,

c-355, C-3s6Menkes, Iustin,313Menor, Larry,43Meyer, K. 8.,212Michael, David C., 208,273Miitts, Heather, C-49

Miles, Morgan P.,43

Miles, Robert H.,355Miller, Claire Cane, C-331

Miller, Danny, 177,314Miller, Herman, C-332

Miller, L,, C-167Miller, Ronald, C-275Milliken, Iohn, C-359-C-3 60, C -362-C-363,

c-365-C-367Milne, George R.,78Ming-Jer Chen, 175

MingZeng,146Mintz, Charles, C-274Mintz, |enni, 340

Mintzberg, Henry, 16, 43, 314

Mirobito, Ann M.,285Mistr, William, C-202Mitchell, Will, 80, 212, 314

Mixon, William 8., C-369Mizrahi, Isaac,8Moharnmad,259Mokwa, Michael P., 78

Montgomery, Cynthia A., 16,78, II7,25s,365

Name Index

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,30Morgan, Solomon, C-84Morrison, Paul E., C-359Moscaritolo, Angela, C-147Moschetti, Paula, C-399, C-401

Mroz, ]ohn Edward, 314

Muller, Joanne, 213

Murphy, Patrick 8.,365Murray, Paul, C-337

NNadal, Rafael, C-54Nadler, David A.,43Nardelli, Robert,358Natchiar, G., 137

Nazareth, Rita, 254

Nell, W., C-155Nelson, George, C-333Nelson, Pam, C-33

Nelson, R.,313Neronha, Peter, C-185Ness, Joseph A., 118

Neuman, Robert P.,339

Newton, S. K., C-406Nichols, P.M'284Nicklaus, Meredith, C-33Niles-Jolly, Kathryn, 365

Nohria, Nilin,365Nordheim, Christie, 1 18

Nordstrom, Blake,30North, Rodney, C-151, C-153,

c-r66, c-r67Norton, David P.,43

Obama, Barack, C-186

O'Bannon, Douglas P., 285

Obel, B., 314

Ohinata, Yoshinobu, 339

Ohmae, Kenichi,44Ohno, Taiichi, 298

Olian, |udy D., 340,365Olie, R.,212Olsen, Dave, C-310

Olsen, E.,314Olson, Susan, C-41

Olusoga, Ada78O'Reilly, Charles A., 339

Oren, Shannon, C-399, C-406Osegowitsch, Thomas, 177

Osono, Emi,298

I-19

Page 22: crafting and executing strategy

r-20

p

Name Index

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

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

Palepu, Krishna G.,213Palmeri, Christopher, 166

Pan, Y. G., 177

Pande, Peter S., 339

Patterson, Abbe, C-i7iPatterson, fulien, C-202Patton, Leslie, C-126Paul, S. M., 161

Paul, Satya, C-78Payne, Charles W, C-202Peck, Emily,284Penn, C., C-406Pensiero, Ioe, C-367Perez, Antonio, C-212, C-213-C-216Pedman, Lawrence,256Perry, Keny, C-58Peteraf, Margaret A.,Il7,I f 8, 313

Peters, Tom, C-245Petit, 4.,212Petrecca, Laura,38Pfsffsr, feffrey, 340, 365

Pfeffer, Jenna P.,23

Phelps, Michael, C-49Phillips, Baxter, Ir., C-39IPhoenix, 169

Piacenza, Bruno, C-354, C-355, C-356Pickens, T. Boone, Jr., C-212Pisano, Gary P., 117,177,314Plank, Kevin, C-42, C-43, C-44Plank, Scott, C-43, C-44Polk, E., C-166Poole, Shelley, C-202Porras, ]erry L, 43,285

Portanger, Erik,284Porter Michael E ., 76, 44, 50,77,78,99,

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

t77, 780, t8r, t82, 2r2, 254, 2ss,

284,285,36sPosey, Buster, C-49Post, James E.,284Powell, Thomas C.,340Prahalad, C. K., 177 , 212, 213,214, 285, 313,

314Premji, Azim,2Preston, Lee E., 285

Price, Raymond L.,43Price,. Sol, C-7Priddle, Alisa, 358

Priem, Richard L., 145

Pruthi, S.,212Pugh, Lyle, C-202Pujols, Albert, C-54

Quelch, Iohn A.,213Quinn, fames Brian, 314, 339,365

Quinn, Sean, C-365, C-366

Quittner, |osh, 157

r"!

Rabil, Paul, C-49Raines, Franklin,39Rainsford, P., C-406Rajarathnam, Raj, 259

Rand, Dave, C-359, C-360, C-365, C-36,C-367Rand, Neil, C-367Randall, Robert M.,213Rao, Ashkay R., 176

Rasulo, |ay, C-277, C-287, C-286Raubitschek, R.,314Rayasam, R., C-166Reed, John,284Reed, Richar4 340

Reid, foanne, 365

Rendich, Andy, C-129Reyes, fose, C-49Rhoads, Gary K., 314, 340

Rhode, Giibert, C-332, C-333Richards, Terry, C-400fuchardson, Sandy,43

fuchard the Lionheart, C-301

Ridderstrale, Jonas, 314

Riggs, Bonnie, C-126Riggs, Cynthia, C-33Ritter, Bill, C-25Rivkin, |an, 16

Robert, Michel, 22,43, 149

Roberts, Curry A., C-199, C-201Roberts, Daniel, C-58Roberts, David, C-391

Roberts, Sarah, 284

Robin Hood, case, C-300-C-301organizational structure, C-300

strategy change, C-300-C-301Robinson, P., C-166Robinson, Phyllis, C-150Rock" Melinda,339Rodgers, Aaron, C-54Rodriguez, Alex, C-54Rogovsky, Nikolai,284Roll, R.,255Roman. Ronald M.,285Romo, Tony, C-54Roos, Goran, ll8Rorsted, 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

Rose, Justin, C-58Rosenfeld, Irene, 250, C-287Rosenthal, |im,339Rosenthal, Jonathan, C-149, C-f50, C-f66Rothschild, William E., 17 6

Rounds, Kate, C-331

Rowe, W. Glen, C-198Rozyne, Michael, C-149, C- I 50, C- I 5 IRuch, Dick, C-334Ruggless, Ron, C-l13Rui, H.,213Rukstad, Michael G., 2, 43

Runcan, Tim, C-58Rynes, Sara L.,340,365

erJSacks, Danielle, C-72Saekel, K., C-406Salamon, L. M., C-210Sanchanta, Mariko, C-331

Sanyal, Rajib,284Sashittal, Hemant C., 365

Sathe, Vijay, 365

Scanlan, Gerald,340Scanlon, Joseph N., C-333Scherer, F. M., 78

Schermerhorn, fohn R., 269

Schmidt, Eric, 325, C-168

Schnarr, Karen, C-198

Schneider, Anton,255Schneider, Benjamin, 365

Schoemaker, P., 117

Schriffrin, M., 177

Schuell, K., C-166Schuler, Fran, C-360Schultz, E. J.,250Schultz, Howard,3l, C-4, C-305, C-307-C-3II,

c-3 16, C-3 r 9, C- 320, C-32r, C-324,

c-327, C-329 -C-330, C-33 1

Schurman, Mark, C-335, C-342Schwartz, A., C-167Schwartz, Mark D., 284,365

Sculley, John, C-188Seepersaud, Steve, C-58Selby, Richard W, t20Server, Andy, C-331

Seth, A.,212Shah, Amit 1.,284Shaich, Ron, C-96, C-97, C-105

Shank, lohn K., rl8Shapiro, Nina, C-25Shapiro, Roy D., C-359Sharapova, Maria, C-54Shaw, Gordon,43Shaw, Warren,256Shein, Edgar, 365

Shih,WillyC., r77,374

Page 23: crafting and executing strategy

Name Index t-21

Shimizu, Norihiko,298Shin, Annys,40Shippea Frank, C-332

Shliefer, A., 255

Shnayerson, Michael, C-386, C-387' C-391

Shuen,Amy,117Siegel, 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-18Singh, Harbir, 177,213

Singh, iang B., 365

Sinha, fayant,213Slater, S., 314

Slevin, Dennis P., 177

Smith, Iain,27lSmith, Ken G'78,176Smith, Kennedy, 339

Smith, N. Craig,285

Smith, Orin, C-329

Snyder, Jim, C 391

Sokolowski, S. W., C-210

Somerville, Iain,314Song, K.,212

Spacey, Kevin, C-133

Speth, ]. G.,284

Spicer, Andrew,284Spielberg, Steven, 18

Spindler, Michael, C-188

Stalk, George, lr., 176

Stanford, R. Allen,265Steensma, H. K., 212

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

c-3s6-c-3s7Stephens, Debra,27lStevenson, Howard,340Stone, Brad, C-186, C-219

Stone, Reuben 8., 118

Story, Louisa,273

St-Pierre, Georges, C-49

Strickland, A. 1., C-26, C-84' C-369

Stroh, Linda K., 340

Strong, Maurice,256Stuckey, John, 177

Suarez, Fernando, 177

Suboleski, StanleY, C-391

Suil, Donald, 118

Sun Tzu, 287

Swift, Taylor, 169

S1'ron, Richard,39

Szulanski, Gabr rel, 212, 3 I 4

-rI

Tahilini, Tarun, C-78

Takeouchi, Hirotaka, 298

Tata, Ratan, C-252

Tatum, Donn, C-275

Tebow, Tim, C-54

Teece, David 1., 1 17, 1 l8Templeton, Ross M.,273Thomas, Howard,78Thomas, Terry,269

Thompson, Arthur A., Ir.,284' C 6, C-42,

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

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

Tirrell, M., 161

Touryalai, H., 177

Tovstiga, George, 1 18

Tracy, Brian, C-69

Tse, D. K., 177

Tirlly, Shawn,2l3Turley, Larry, C-393

Turner, Clinton, C-202

Turnipseed, David L., C-2,C-247

Turpin, Pat,38

Tushman, Michael L., 339

Twer, Doran,340

tlUUngan, Mustafa, 339

Upton, David M.,314

\/Van By1en, Hans, 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

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/vvWade, Dwayne, C-54

Wade, ]udy,339

Wakeam, lason,I77Walker, 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.,339Walton, Sam, 359, C 6

Wang, Qianwei,339Wascog 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

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

Weir, Mike, C-58

Weise, E., C-166

Weiss, Eric,40Weiss, Iefl 177

We1ch, ]ack, 2, 17 8, 214, 3 13, 359

Welch, Suzy,313

Wells, David, C 146

Wernerfelt, Birger, 78, I17 ,255Wessel, Godecke,339

Wetlaufer, Suzy, 365

White, David, 177

White, Gordon,230Whiteman, G., C-406

Whitman, J. R., C-166

Wie, Michelle, C-54

Wiedman, Christine,43Wieters, 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

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'69Wilson, 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' 313 ' 3I4Wood, Ryan, C-43,C-44Woods, Tiger, C-54

Wooldridge, Bill, 313

Worrell, Dan L.,285

Page 24: crafting and executing strategy

l-22 Name Index

Worthen, Itm,C-366,C-367 Yoffie, DavidB., 146,).76 Zemsky,p., 177Wright, M., 212 yoon, Sangwon, 212 Zetsloot, Gerald I. 1.M.,284Wu Hsiu-Chi, C-26I Young, lohn, C-84-C-85 Zimmerman, Ryan, C-49

Zol1o, M., 117,314

Yang, Don lones, C-331 Zander,U.,3l4Yip, G., 213 Zbarack| Mark 1., 339

ZY

Page 25: crafting and executing strategy

AAccounting

activity-based, l0loversight of, 37

Accounting scan dals, 265 -266corporate, 37

Freddie Mac and Fannie Mae, 39-40Acquisition costs, 217, 218

Acquisitionsj see nlso Mergers andacquisitions

of Chipotle Mexican Grill by McDonald's,c-115

of Coach by Sara Lee, C-7 4

to create subsidiaries, I90criteria in unrelated diversification, 228

cross-border, 1 80

definition, 159

diversification byto access resources, 218

to build market position, 218

and due diligence,2i8by Equal Exchange, C- 1 50

failure to deliver, 218

by Henkel AG, C-349by Kraft Foods

Cadbur;', C-290' C-292

Nabisco, C 290

of Kraft Foods by Philip Morris, C-289

by local companies in developingcountries,208 209

by Nucor Corporation, C-228-C-231On2 Technologies by Google,

c- 1 82-C- 183

premium vs. bargain price for, 218

and restructuring, 230

ofStarbucks by Il Giornale, C-310State Fair ofVirginla, Inc., C-203

transaction costs, 221

by \Aialt Disney Company, C-273, C-275,c-276-c-277

YouTube by Google, C-).78-C-179Activities

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

prescribed,32lActivity-based accounting, 101

Activity ratios, 85-86Adaptation of best practices, 322

Adaptive cultureadvantage to all companies, 352

high-tech companies, 352

no compromise in values, 352

stakeholder interests, 352

supportive n'ork climate, 351

Advertisingbeer industry, 74

in China, 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-155lvebsite, 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-338media for Under Armour, C-50

by Panera Bread Company, C-106

Sift Cupcake and Dessert Bar, C-35-C-36Starbucks, C-320

All-in-one business machine, 207

Ambidextrous organizations, 325

Ambition, obsession with, 264

Asia, strategic alliances in, 183

Assumptions, in competitor analysis, 73

Athletic apparel industryglobalbrands, C 71

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

Attitude changes,6T

Audit committee, 37

Authority; see Delegation of authorityAutomobile industry

bargaining pou.er, 61

grorvth potential in China, 181

in India, C-250-C-251outsourcing by, 302

Tata Motors, C-246-C-255Availability of substitutes, 57

Average collection period, 85

Awards,33lto Starbucks, C-328

DL")

Backward integrationto achieve greater competitiveness, I63and buyer bargain.ing power, 61

cost saving conditions, 163

definition, 162

differentiation-based competitive

advantage,163in-house value chain activities, 163

production and pricing problems, 163

and supplier bargaining power, 60

Balanced scorecard,29

Balance sheet

t.oacn 1nc-. (,-/5-(,-/f)

Costco Wholesale, C-8Eastman Kodak, C-215

Equal Exchange, C-159, C-165Frog's Leap Winery, C-402-C-403Google Inc., C-177Herman Miller Inc., C-341-C-342Kraft Foods 2012, C-298Netflix, C-l3l-C-132President Chain Stores, C-270

Sift Cupcake and Dessert Bar, C-39

Starbucks 2007 -2011, C-306Tata Motors, C-249Thanksgiving Coffee, C 165

Under Armour, C-45Bankruptcy

Chapter 1 1 proceedings, C-208-C-209Chapter 7 proceedings, C-209Eastman Kodak, C-211, C-2I4-C-216not-for-profit sector options, C-200threat for State Fair ofVirginia, C-207

Banks, corporate frard, 264

Bargaining porver

ofbuyers,60-63of diversified companies, 237

of suppliers, 58-60Barriers 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,2i9overcoming, 55

securing retail space, 55

for startups,217Beer industry

advertising, 74

key success factors, 74

Benchmarkingto 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 oi 101

as motivation, 360

r-23

Page 26: crafting and executing strategy

I-24 Subiect Index

Benchmarking-Conf.objectives, l03to uncover competitive advantage, 106

Best-cost provider strategies, 7-8compared to other strategies, 140

definition, 122, 140

distinguishing fe atw es, I 42- I 43

resource and capability analysis, i40target market, 140

at Toyota, i41value-conscious buyers, 140

when most competitive, 140-141Best practices, 105

across value chain,322adaptation to circumstances, 322benchmarking to identily, 322

capturing benefi Is of , 327 -328definition,32las motivation,360

Befier-off test,227ror orversrtlcatton, ll,/for unrelated diversification, 228

Big box stores, increasing market share, C-94Blo o mb erg Busin e s sw e ek, C - 3 3 6

Blue-ocean strategydefinition, 152

examples, 154

Gilt Groupe, 153

long term success problem, 154

online auction industry, 152-154types of marketspace, 152

Board of directorsaudit committee, 37

compensation committee, 38

corporate governance

appraisal of directors, 37-38evaluation of leadership skills, 38

oversight of compensation, 38

oversight of financial accounting, 37focus on short-term performance, 38guarding against self-dealing, 264Herman Miller Inc., C 336-C-337independence of, 38-40inside directors, 37

outside directors, 37responsibilities of, 38-40State Fair of Virginia, Inc., C-207-C-203

Bondstaxable, C-203

ta-x-exempt, C-204Bonus compensation, Henkel AG

group performance, C-353individual performance, C-354payout linked to goals, C-354payout terms, C-354team performan ce, C-353 -C-354

Brainstorming, 361

Brand awareness

Chipotle Mexlcan Grill, C-121Coach Inc., C-73Panera Bread Company, C-105

Brand-building, 131

Brand image and reputation, 237Branding

significance in jewelry industry, C 94 C-95by Tiffany & Company, C-88

Branding capabilities, Z4

Brand loyalty, first-mover advantage, 155Brand managers

origin at Procter & Gamble, 294role in strategy-malting. 3l

Brand names

exploiting use of, 222global, 195

Brand preferences, as barrier to entry, 54Brand recognition, 54Brands, 87, 88 see also Product line

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

umbrella, 230Bribery

areas predominant in, 260and codes ofethics,261companies fined foa 261

and Foreign Corrupt Practices Act, 261

issue for multinational corporations,260-261,

persistence o{ 261

BRIC countries,204Broad differentiation strategies

benefits for firms, 139

definition, 12Ito 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 avoidoverspending, 135

rapid imitation, 134-135too high price, 135

too many frills, 135

trivial improvements, 135

unenthusiastic buyers, 135

unique customer value proposition, 139

uniqueness drivers, I J0- I3Icontinuous improvement, 131

customer service, l3lhigh-quality inputs, 131

human resource managementactivities, l3l

innovation, 131

marketing and brand-building, 131

research and development, 131

superior product features, 131

value chain management, 130-131value chain revamping, 132

when most competitivediversity ofbuyer needs, 134

diversity of product uses, 134

few rival firms, 134

technological changes, 134

ways of differentiating products, I34Browser market share rankings, C-I82Budget reallocation, 318Bureau ofLabor Statistics, C-34Bush administratlon (2nd), C-229Business base

broadeningextending geogr aphic scope, 247at Johnson & iohnson, 248from rapidly changing conditions, 247transfer of resources and capabilities,

247

narrowingby divesting, 247-249by restructuring, 247 -249

Business buyers, bargaining power, 61

Business case for corporate socialresponsibility

environmentally sustainable practices,

280-281increased patronage, 279long-term interest of shareholders,

280 281

lower costs, 280-287reputation,2T9revenue enhancement, 280workforce retention, 280-28 t

Business case for ethical strategy, 268 270Business ethics; see also Illegal activity;

Unethical business behaviorcases for ethical strategy

business case,268-270moral case, 268

in competitive intelligence, 73

delrnltron, Z5 /as good business, 269-270Googlet problems in 2012

fined by Federal CommunicationsCommission, C-186

legal settlement, C-186nature of, C-185-C-186net neutrality issue, C-186

integrative social contract theory, 262at Novo Nordisk,267standards in Europe and U.5.,258-259

Business-level st r ategy, 82

definition,34delegation of, 216

at Eastman Kodakcommercial segment, C-2I7 -C-2I8consumer segment, C-278-C-219

international growth, C-252lululemon Athletica, C-63responsibility for, 33

Page 27: crafting and executing strategy

Subject Index l-25

and scope ofthe firm, 159 Henkel AG, C-346 competitive advantage ofToyota,298Tata Motors Kraft Foods competitive attack based on, 150

commercial vehicles, C-253 competition for, C-292-C-293 competitively superior, 91

iaguar and Land Rover, C-253-C-254 Developing Markets, C-294 competitively valuable, 8

passenger cars, C-252 Europe, C-294 in competitor analysis, 72

peoplei carlNano,C-252-C-253 financial summary,C-294-C-296 core competencies,93Business lineup higher costs, C-293 cross-functional,8g

restructured by Kraft Foods, North America, C-293-C-294 definition, 87C-290-C-292 product differentiation, C-293 distinctive competence, 93

restructuring and retrenching, 249-250 revenues, C-293 in diversification decision,220sticking 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, 222-223customer 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 1 6 hollowed out by outsourcing, 167 -168Eastman 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, 88-89oflocal 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,60-63 200-2Olstreamingoption,C-137 C-138 factorsdeterminingstrengthof toachievedominantdepth,200-201

Panera Bread Company, C-99-C-102 backward integration threat,61 exarnples,200profit formula, 10 information on pricing and costs,6l potential problems,201

7-Eleven Stores nurr.rber ofsellers, 6I for strategy execution, 291-292franchise operations, C-257-C-258 option to delay purchases,62 strategy supportive,29lstore construction,C-257 price sensitivity,62-63 for sustainable competitive advantage,

store location, C-257 supply and demand,6l 89-91Sirius XM radio vs. over-the air switching costs, 61 valuable, in diversified companies, 237

broadcasters, I I weak differentiation, 6I Capabilities based matrix structure, 306

and sustainable business practices, 275 negotiating terms ofsale, 61 Capacity utilization, 74

textbookpublishers,C-26- C-27 andvalue chain activities, i25 full-time, 124

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

Starbucks, C-310-C-311 Buyers Capital investment strategy, State Fair ofBusiness process reengineering dispersal oflocations, 199 Virginia, Inc., C-204-C-205

capturing benefits of, 327 -328 diverse product uses, I 34 Capital market, internal, 230

compared to other process management identifying types along value chain,63 Capital requirements, 54-55tools, 327 leverage of,6l Capital strategy, State Fair ofvirginia, Inc.

definition, 323 lowering overall costs of, 132 Department ofAgriculture loans, C-204

examples,323 and strength ofrivalry, 5l notional amount swap, C 204

as motivation, 360 and threat ofnew entrants, 56 taxable development bonds, C-203

problems leading to, 323 unenthusiastic, 135 tax-exempt bonds, C-204

success of,324 value-conscious, 140 unsecured debt, C-204

value chain activities,323 Career planning, at Procter & Gamble, 294

Business risk Carmelite monks of Wyoming

effect ofeconomic conditions, 184 185 C background, C-2

impact ofgovernment policies, 184-185 daily activities, C-3

increasedbyforwardintegration, 164 Capabilities r.nonastery, C-2-C'3versusopportunityindeveloping accessedbymergersandacquisitions, 160 newsitepurchase,C-3

countries, 204 added in partnerships, 302 Cash cows, 242,243

reduction in, 66 building and strengthening Cash flowspread by entering foreign markets, 180 acquired by mergers and acquisitions, in diversified companies, 242-243

Business segments/units 297-298 Under Armour, C-45

competitive strength scores collaborative partnerships, 299 Cash hogs, 242-243

calculating, 237-238 internal deve1opment,296-297 Catering program, Panera Bread Cornpany,

interpreting,23g competence,93 C-104-C-105

Page 28: crafting and executing strategy

I-26 Subject Index

Causal ambiguity, 90 Cloud computing, C 168 reward for bad behavior, 281

Celebrity endorsements, for Under Armour, competition, C-1S1-C-182 runner-up, 152

C 49 CoalMineHealthandSafetyActof 1969, settingobjectives,2T,3OCentralized decision making C-388 sizeof,74

advantages,30T-308 Coalminingindustry strategicgroup map,69-71basic tenets, 308 government regulation, c-386 strategic vision, 20-24disadvantages, 307-308 Massey Energy corporation, strategy execution,25-26

CEO compensation, 38 C-385-C-388 strategy-making and execution process,Costco Wholesale, C-18 methane explosions, C-386 19-20Equal Exchange, C-154 and United Mine Workers, C-386 struggling, 152

Herman Miller Inc., C-336 Upper Big Branch Mine disaster, tests for winning strategyMassey Energy Corporation, C-385-C-391 competitive advantage test, 12

C-387-C-388 Coal River (Shnayerson), C-386 fit test, 12

CEOs Code ofconduct/ethics performance test, 12

and corporate governance,3T and bribery/kickbacks, 261 top performers, 3

evaluation ofleadership skills,38 Costco Wholesale tradition-steeped,347Henkel AG, C-345-C-346 compliance with laws, C-I8-C-19 triple-bottom-line repofiing,276Massey Energy Corporation, customer relations, C-19 vertically integrated, 162

C-386-C-388 respect suppliers, C-19 vision and values,25-26role in strategy-making,31 reward shareholders, C-19 vulnerable market leaders, 152

Ceremonial events, 357 take care ofemployees, C-19 Company culture, 87, 88, 125; see alsoCertificate ofdeposit, Equal Exchange, for lululemon Athletica suppliers, C-68 Corporate culture

C-160 questions for creating,263 Comparative cost, in diversification decision,Certification standards, 13I and Sarbanes-Oxley Act,262-263 220-221Change-resistant cultures Coffee industry Compensation; see also CEO compensation

stodgy bureaucracies, 353 comparison offree trade vs. New York at Chipotle Mexican Grill, C-120unhealthybehaviors,352 prices, C-152 at Costco Wholesale

Channels of distribution; see Distribution competition in, C-148 employees, C-16 C-17channels consumption in United States, C-3 executives, C-18

Chapter 11 bankruptcy Equal Exchange in, C-148-C-166 forms of,331EastmanKodak,C-2It, C-214-C-216 freetradeindustryand,C 160 C-164 guidelines for,335-337not-for-profit sector, C-200 retail sales of organic coffee, C-4 Herman Miller Inc., C-339-C-340proceedings, C-208-C-209 specialtycoffees, C-4-C-5 incentive,335

Chapter 7 bankruptcy Starbucks and competitors, C-4 at Nucor Corporation,336not-for-profit sector, C-200 World Fair Trade Organization, C-4 bonus plan, C-237proceedings, C-209 Coffee sales, C-266-C-267 department manager incentive plan,

Charitable contributions,2Tl Collaborative partnerships, to access C-237Herman Miller Inc., C-337 capabilities,299 401(k) plans, C-238

by Starbucks, C-328-C-329 College students production incentive plan, C-237Chieffinancial officer, role in strategy- and digital technologies, C-26 profit sharing, C-238

making, 3l textbook purchases, C-26 senior officer incentive plan,Child labor, 260 College textbooks; see Textbook publishing C-237-C-238China Combination structure,306 at Starbucks, C-322

advertising in, 208 Communication ofstrategic vision,2l-22 oftop executives, 38

auto market groMh potential, 181 Communication systems, 125 Compensation committee, 38

capital of manufacturing, 183 Community-based marketing at lululemon Compensation incentives, 361

Coach Inc. in, C-82 Athletica, C-68 Competence,93Dell Inc. in,205-206 Community involvement, Starbucks, C-328 Competitiondemand for luxury goods, C-78 Community service, 271 for Apple Inc. in PCs

Google's problems in, C-179 Companies Dell Inc., C-193 C-194local distribution in, l8l acquiring and restructuring,230 Hewlett-Packard, C-193low-cost labor,208 appraisal ofdirectors of,37-38 for Chipotle Mexican Grillonline travel agency,2O8 core values,25-26 Moe's Southwest Grill, C-124population, 204 crafting strategy, 3l-35 Qdoba Mexican Grill, C-124-C-2I5prepaid access cards,zl7 factors affecting performance, 3 TacoBell,C-123-C-124second largest economy,204 internal universities,299 in coffee industry, C-148

Yum! Brands in,205 mission statement,24-25 for Costco Wholesale

Clean Water Act, C-386 performance evaltation,36-37 bases of competition, C-20

Clearance sales, 53 performance indicators, 12 BJ's Wholesale Cltb, C-23-C-25Clinton adminisftation, C-229 present situation in choosing strategy, 45 Samt Club, C-20-C-23

Page 29: crafting and executing strategy

Subiect Index I-27

for Disney media networks, C-280 narrow market niche, 8 quantitative ranking, 109

factors affecting substitutes and value chain activities, 7 resource and capabilities analysis, 109

availability and price, 57 from strategy execution, 300 strategic implications, 109-1 I Iquality and performance, 58 Toyota Production System, 298 SWOT analysis, 109

switching costs, 58 translatingvalue chain activities into, weighted ratings, 109, ll0for Google Inc., C-168 106-108 Competitive strength scores

Microsoft,C-183 C-184 Competitiveadvantagetest, 12 abilitytomatchrivals,23T,23SYahoo!, C- 184-C- I 85 Competitive assets, 86, 94 bargaining leverage, 237, 238

for Google Inc. on Internet Competitive attack benefits from strategic fit, 237,238Microsoft, C-I83-C-184 basis for brand image and reputation, 237,238Yahoo!, C-184-C-185 continuous innovation, 151 calculating,238

for Henkel AG, C-347 guerrilla tactics, 151 costs relative to competitors, 237,238for Herman Miller Inc., C-344 improving on ideas of rivals, I5I interpreting,239and industry attractiveness, 237 leapfrogging competitors, l5l profitability relative to rivals, 237,238in inkjet printer industry, C-218-C-219 lower prices, 150-151 relative to market share, 237,238forlululemonAthletica,C-7| C-72 preemptivestrike, l5l resourceandcapabilities fit,237,238in luxury goods market, C-77 strongest competitive assets, 150 Competitive weapons

for Nucor Corporation restricting challenger's options, 154 advertising, 53

ArcelorMittal, C-244-C-245 signaling retaliation, 155 couponing, 53

foreign steel makers, C-243-C-244 time needed for, l5l-152 customization, 53

United States Steel, C-244-C-245 Competitive forces dealer networks, 53

for Panera Bread Company, C-99 buyer bargaining power, 60-63 improved products, 53

for Sift Cupcake and Dessert Bat C-37 price sensitivity,60-63 innovation, 53

strategy for,4-5 and profitabilitF, 63-64 price discounts, 53

strategy matched to, 64 rivalry among competing sellers, 49-53 warranties, 53

in textbook industry sellers ofsubstitutes,56-58 Competitor analysis frameworkEbooks, C-28-C-30 supplier bargaining power, 58-60 assumptions, 73

neweditions,C 28 threatofnewentrants,54-56 capabilities,T2

rental textbooks, C-28 Competitive intelligence, and business current strategy, 72

used book market, C-28 ethics, 73 information sources, 73

for Tiffany & Company Competitive liabilities, 94 objectives, 72

Blue Nile, Inc., C-93 Competitively superior capabilities and Competitors

Bulgari, C-92-C-93 resources, gl diversity of,52Costco, C-94 Competitively unattractive industry, 63 equal in size and stability, 52

Signet Group, C-91-C-92 Competitive moves, likely by rivals, 71 increase in number of, 52

for Under Armour Competitiveness leapfrogging, 151

adidas Group, C-56-C-58 backward integration to achieve, 163 ways ofmatching focused strategies, 139

intensityof, C-52-C 53 DVD rental business, C-134-C-136 Computer-assisted design, 125

major competitors, C-53 forward integration to enhance, 163-164 Concentration oflocationsNike, Inc., C-53-C-56 restaurant business, C- I 12 for economies of scale, I 98

Competitive advantage; see also Diamond of unrelated businesse s, 228-229 experience and learning benefits, I 98

ofnational competitive advantage; and value chain system, 102 for lower production costs, 198

Sustainable competitive advantage Competitive position see also Industry superior resources, 199

from corporate social responsibiliry position; Market position Conglornerates,228

277-278 Apple Inc. Consistency in execution, 319-320

ofcross-business strategic fit, 241 PC industry, C-192 Consumer preferences, shift in, 139-140

differentiation-based, 163 personal media players, C-194 Consumer products, Walt Disney Company,

in differentiation strategies, 133 smartphone market, C-195 C-282-C-283

in international arena Costco Wholesale, C-6 Consumer products group, Starbucks,

benefits ofcross-border coordination, measures to strengthen, 149 C-319-C-3ZO

201 Nucor Corporation,C-220-C-221 Consumers

sharing transfer of resources/ Competitive power, VRIN tests for, 90-9 I appeal ofcorporate social responsiblliry,2T9

capabilities, 199-200 Competitive strategies; see also Generic on jewelry industry, C-89

using location, 198-199 competitive strategies of premium wines

limited in unrelated diversification,232 resource-based, 143-144 demographics, C-394

from related diversification,226 Competitive strength assessment green consumers, C-395

from strategic fit, 226 benchmarking data, 109 health awareness,C-394-C-395

strategies for example, 109, i10 segments, C-393-C-395

differentiation, 7 key success factors, 109 reached by Internet, 65

low-cost provider, T-8 need for, 108 unaware offree trade industry, C-153

Page 30: crafting and executing strategy

t-28 Subject Index

Consumer spending, in restaurants, C-l 12

Continuous improvement, 360

Continuous product innovation, 1 5 IContinuous quality improvement, 13 1

Controlin decentralized system, 309

peer-based, 330-33 1

Convenience stores

business model C -257 -C-258developed by 7-Eleven Stores, C-257main competitors, C-261

number of7-Eleven stores, C-256number ofstores, C-261

in Taiwan, C-259-C-261U.S.-Taiwan comparison, C-259-C-260

Convergence of industries, 160

Cooperative advertising, Herman MillerInc,, C-338

Coordinationwith channel allies, 132

with suppliers, 132

Core business, concentration on, 167

Core competencies, 93, 107

expioited by entering foreign markets, 180

Core values, 19-20Costco Wholesale, C- l8-C- 1 9

deflnition,25examples,25Google Inc., C-17 0-C-17 |Henkel AG, C-350-C-351Herman Miller Inc., C-335-C-336linked tc vision, 25-26lululemon Athletica, C-69-C-71Nucor Corporation, C -236-C-237

role in corporate culture, 346

Sift Cupcake and Dessert Bar, C-36Starbucks, C-324, C-325transformed into cultural norms, 347

as rvindow dressing, 25

Zapposrcom,26-27Corporate brands, 229 230

Corporate citizenship, 27 2

Starbucks, C-328Corporate culture; see a/so Problem cultures

changingat Chrysler, 358

difficulties, 354

identifying obstacles, 354-355making a case for change, 355-3565ubstantive actions, 356-357symbolic actions, 357

time needed for, 357 -358Chipotle Mexican Grill, C-120

conducive to strategy execution, 345-353connection to strategy execution process,

349-350core values and ethics in, 346

cultural norms, 347

culture-induced peer pressure, 350

definition,343

to energize employees, 350

forces causing evolution ol 348

and good strategy executionadaptation, 351-352high-performing, 351

Henkel AGbonus compensation, C-353-C-354performance management,

c-3s 1-c-353redefining vision and values,

c-350-c-35 1

Herman Miller Inc., C-336key features, 344-346lululemon Athletica, C-69 -C-7 Imatched to strategy, 350

mirrored in work environment, 344

Nucor Corporation, C-240originating with founders or strong

leaders,345-346putting profit ahead of ethics, 266-268role of stories, 347 -348strong-culture companies, 348-3 49

unhealthy types, 352-354at rv\I L. Gore & Associates, 345

weak culture companies, 349

wide variance in, 343-344Corporate fraud

by banks, 264

Enron,266-268Corporate governance

and accounting scandals of 2000-2002,37appraisal of company directors, 37-38board of directors and, 37-40evaluation of leadership skills, 38

failure at Freddie Mac and Fannie Mae,

39-40guarding against self-dealing, 264

nol-lor-profi I sector. C-200oversight of compensation, 38

oversight of financial accounting, 37

State Fair ofVirginia, Inc., C-201-C203Cor p or at e Kn ights magazine 27 4

Corporate parentingbenefits oi 228

examples, 229

identifying underperformers, 230

internal capitai market, 230

value added by', 229

Corporate responsibilit)., 272

CorPorate Responsibility Magazine, 27 4,

c 328Corporate restructuring, Kraft Foods 2012,

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

companies, 354

Corporate social responsibilitybalancing stakeholder interests, 270

definition,2T0elements of

charitable contributions. 27 I

community sewice, 271

environmental protection, 27 2

ethical principles in operations, 270

work environment,2T2workforce diversity, 272

Herman Miller Inc., C-335, C-337sustainable business practices, 27 5-277and triple bottom line,274-275

Corporate social responsibility strategyat Burti Bees, 273

company variations, 272

reporting standards, 272

at Starbucks

charitable contributions, C-328-C-329community involvement, C-328corporate citizenship, C-328

environmental stewardship, C-328

ethical sourcing, C- 327 -C-328Corporate strategy

definition, 32

for diversified companies, 215

facets ol T.5-216responsibility for, 33

Walt Disney Cornpanyacquisitions, C-27 6- C-27 8

allocation of financial resources, C-278capture synergies, C-278tocus, L-1,/binternational expansion efforts, C-278

Corporate structure, 306

Corporate venturing, 219

Corrective adjustments, 1 9-20initiating,36 37

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

of ethical wror-rgdoing

intangible,269internal administrative, 269

visible,269internal, l0tlowered by corporate social responsibiliry

279-280and prices, 97-98reduced by entering foreign markets, 180

relative to rivals, 237

shrinking differences in, 66

Cost advantage

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

Cost-based competitive advantage, 7

Cost competitivenessevaluating, 101

means of improving, 105

Cost-cutting methods, 123-125Cost differences, l0ICost disadvantages, options for remedying,

104

Cost-effectiveness, 98

Cost efficiency, from mergers and

acquisitions, I59-160

Page 31: crafting and executing strategy

Cost-efficient supply chain management,

124

Cost estimates, l0iCost-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, eliminationof, 105

Cost-savingin customer service, 226

in distribution, 226

in market activities, 225

problem in backward integration, 163

Costs ofproductionand centralized locations, 198

industry driving force, 66

low at Nucor Corporation, C-232in low-wage countries, 183

overspending, 135

Cost structure

competitiveness ol 97-108value chain activities to identif'

components, l0lCounterfeiting, in luxury goods market, C-78

Couponing, as competitive weapon, 53

Creditors, State Fair ofVirginia, Inc., C-205Credit 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 financialresources, 230

Cross-border coordination, 201

Cross-border markets, transfer of expertiseto,209

Cross-business collaboration, 222. 223

Cross-business strategy fit, 309-310

Cross-functional capabilities, 89

Cross-functional teams, Herman Miller inc.,

c-337Cross-industry strategic fit, 235

CSREurope, 272

Cultural differencesin foreign markets, 187-188in 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 KraftFoods, C-294

Current ratio, 84

Current strategy, in competitor analysis, 72

Customer base, building, 128

Customer loyaltyas 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-330Customer service

improved, 131

7-Eleven Stores, C-266-C-268

strategic fit in, 226

Customer service training, at Coach

Inc., C-80Customer value proposition

competitiveness of, 97-108definition, l0in differentiation strategies, 129

Sirius XM radio vs. over-the-air

broadcasters, 1 1

value chain analysis for,98 100

Customization, as competitive weapon, 53

Cut-rate pricing attack, 203

DDays of inventory, 85

Dealer networks, 55

as competitive weapon, 53

Dealers, bypassing activities and costs of,

t25-126Debt-equity ratio, 85

Herman Miller Inc., C-340Decentralized decision making

advantages, 308-309basic tenets, 308

capturing cross-business strategic fit,309-3 1 0

challenge of maintaining control, 309

disadvantages, 308-309Decision making

centralized, 307-308decentralized, 308-3 10

in multidomestic strategy, 194

at Starbucks, C-310-C-31 Iin strategic alliances, 171

Defensive strategy options

blocking avenues open to rivals, 154

signaling retaliation, 1 55

timing offirst-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 authorityin centralized decision making, 307-308

in decentralized decision making,

308-3 l0

Subject Index r-29

Deliberate strateg)', 9

Delivery and pickup service, C-266

Demandfor luxury goods in China and

India, C-78

network effects on, 54

Demand conditions, and nationalcompetitive advantage, 181

Demographics

differences in foreign markets, 187-188

of India in 2012, C-248industry driving force, 65-66and market size, I8lSift Cupcake and Dessert Bar

customers, C-34specialty bakery market, C-34

Departmental structure, 304

Department of Agriculture, C-118, C-204

Department of Commerce, C-229Department stores, decline in market

share, C-82

Deregulation,6TDesign for manufacture procedures, 125

Developing countriesbribery and kickbacks in, 260

business risk vs. opportunities in, 204

exploitation of farmers, C-151-C-I53strategies 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,205strategies for local companies

acqursitions, 208-209

business model, 207

Ctrip in China, 208

knowledge of local workforce,

207 -208rapid 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,182related and supporting industries, 182

and relative strength ofcountries, 181

Diamondscharacteristics, C-87-C-88purchasing, C-88 C-89

Differentiationand buyer bargaining power, 61

and increase in rivalry, 5land supplier bargaining power, 60

in value chain system, 106

Differentiation based competitive

advantage, 163

Page 32: crafting and executing strategy

I-30 Sublect Index

Differentiation strategy to build shareholder value by Kraft Foodsat BJ's Wholesale Club, C-23-C-24 better-off test, 217 grocery business , C-287, C-2g6-C-zg7at coach Inc., c-79-c-80 cost-of-entry test,217 ofpizza business, c-290for competitive advantage,7 industry attractiveness test, 217 ofPost cereals, C-290customized 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-203Kodak, 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-22IDisaster relie{ aided by Equal issues in deciding on Dividend yield on common stock, 85

Exchange, C 156 barriers to entry,220 Divisional structure,305Dispersal of locations comparative cost,227 DMADV (define, measure, analyze, design,

buyer-related activities, 199 question ofspeed, 220-221 andverify),324short delivery time, 199 resources and capabilities, 220 DMAIC (define, measure, analyze, improve,trade barriers, 199 at Johnson & Johnson, 248 and control), 324-325transportation costs, 199 jointventures,2l9 Dominating depth,200-201

Disposable income, in India, C-251 in multidivisional structure, 305-306 Dot-com bubble, C-335Disruptive technoiogical innovation, C 232 occasions for, 216 Dow fones Sustainability World I ndex,275,Distinctive competence, 93, 107, 301 picking new industries, 215 276Distribution poor cultural fif,248-249 Down-the-line managers, 32

Bayonne Packaging, Inc., C-365 steering resources to attractive units,216 decision making by,308-309at Costco Wholesale, C- 15 and synergy,217 Due diligence, 218Panera Bread Company, C-107-C-ll0 wide-ranging possibilities,2lT Dumping,203Samt Club, C-22 Diversified companies by foreign steel makers, C-229by 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-136product licensing, C-50 corporate strategy,215 Netflix in, C-127-C-130, C-136-C-140wholesale, C-50 drawbacks Dynamic capabilities, 92

Distribution channels allocating financial resources,230 internal development,2g6-297blpassed in forward integration, 164 demands on management, 231-232 from mergers and acquisitions,2gT-298China, 181 limited competitive advantage,232 from partnerships,299Coach Inc. internal capital market,242 Dynamic fit, 12

in China, C-82 new strategic moves Dynamic management, 91-92factory outlets, C-8i broadening business base, 247

full-price stores, C-80-C-81 divesting and retrenching, 247 249

international wholesalers, C 82 options,245-246 fL-

in fapan, C-81- C-82 restructuring business lineup, 249-250U.S. wholesalers, C-82 sticking with business lineup, 246 Earnings before interest and taxes, Eastman

dispersal oflocations, 199 parenting advantage,32l. Kodak, C-216Frog's Leap Winery, C-400 strategy evaluation Earnings targets, short-term, 264-266India, 181 business unit competitive strengths, Ebooks

lululemon Athletica, C-63-C-64 237-240 benefits ofat 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-32strategic fit in,226 new strategic moves,245-250 higher returns for authors, C-32in value chain, 102 nine-cell matrix for, 239-240 economics of

Distribution facilities priorities for resource allocation, asency vs. retail prices, C-31-C-32ai lululemon Athletica, C-68 244-245 author royalties, C-31, C-32Under Armour, C-52 resource fit, 242-244 challenge to publishers, C-30

Distributors,55 steps,233 cheap to produce, C-30b)?assing activities and costs of,125-126 turnaround capabilities,230 disadvantages for students, C-30

coordinationwith,l32 Divestment(s),244-245,247 249 impactonretailers,C-30-C-3IDiversification, due diligence before, 218 of Au Bon Pain by Panera, C-97 industry pricing nodel, C-31

Diversification strategies; see also of Chipotle Mexican Grill by less expensive to buy, C-29Related diversification; Unrelated McDonaldt, C-115 pricing strategy, C-31

diversification in corporate restrtctving,249 as viable alternative, C-28-C-30acquisition, 218 Eastman Chemical by Eastman Amazon Kindle, C-29-C-30actions for overall performance, 216 Kodak, C-2ll Apple iBooks, C-30

Page 33: crafting and executing strategy

Sublect Index I-31

Apple iTextbooks, C-30 stock option plan, C-321 sustainable energy sources, 276-277

Apple Study Cards, C-30 stock purchase plan, C-322 alUnlever,277Economic conditions,48 training and recognition, C-322-C-324 Environmental management systems,

effect on foreign-market entry, 185 work environment, C-320, C-322 Frog's Leap Winery, C-392, C-399,

in India in 2012,C-248-C-250 Employee retention C-400-C-403, C-404

Economic metric,274-275 Henkel AG, C-345 Environmental melric,274-275Economic risks, 185 Nucor Corporation, C-238 Environmental proleclion,2T2Economicvalue added, C 339, C-340 Employees Environmental Protection Agency, C-328Economies ofscale acting on ideas from,332 Environmental stewardship

caPturing, 123 attracted by corporate social Herman Miller Inc., C-336, C-338, C-339and centralized locations, 198 responsibility, 279-280 Starbucks, C-328from entering foreign markets, 180 compensation plans at Nucor, C-237-C-238 Environmental sustainabilityfrom strategic alliances, 191 at Costco Wholesale at Costco Wholesale, C-20

Economies ofscope compensation plan,C-16- C-I7 at Nucor Corporation, C-236competitive advanlage from,227 recruitment and selection, C- 18 wine industry of California, C-396-C 399

contrasted with economies ofscale, 226 workforce practices, C-17 Equity investors, C-60definition,227 Costco Wholesale core values, C-19 Esprit de corps,360and strategic fit, 226-227 decision making by, 308-309 Ethical dilemma, Devil's Den, C-302-C-304

Economist, C-228 empowerment, 328,360 Ethical relativismEducation, in India, C-250 energized by corporate culture, 350 definition, 259

Electronic scorecards, 330 Frog's Leap Winery, C-399-C-400 payment ofbribes and kickbacks, 260 261

Embargo on Nicaragua, C-149 incentives for,33l-332 underlying thesis,259-260Emergent strategy,9 low turnover at Nucor, C-238 use ofunderage labor,260

Emerging markets, demand for luxury at lululemon Athletica, C-69 variations across countries, 258-260

goods, C-78 Massey Energy Corporation, C-385 Ethical sourcing, by Starbucks, C-326,

Employee empowerment, Herman Miller monitoring performance of, 330-331 C-327-C-328Inc.,C-337 motivating, l25 Ethicalstandards

Employee relations orientation sessions,299 cross-country differences, 259-260

Costco Wholesale peer-based control,330-331 impact on strategy,262-264

benefitpackage, C-16-C-17 qualilyofllfe,272 inMuslimstates,2sgcompensation, C-16 in restaurant business, C-lI2 ofright and wrong,257

recruitment and selection, C-18 reward systems, 332-337 role in corporate culture, 346

Frog's Leap Win ery, C 401 Sam's Club, C-23 schools ofHenkel AG at Sift Cupcake and Dessert Bar, ethical relativism,25S-262

bonus compensation, C-353-C-354 C 36-C-37 ethical universalism,258

communication ofcore values, strategic role oftraining,299 transformed into cultural norms,347C-350-C-351 in strong-culture companies,348 Ethical strategy

performance management, unethical behavior at Devil's Den, business case for, 268-270

C-351-C-353 C-302-C-304 moral case fo! 268

Herman Miller Inc. unsatisfactory working conditions, C-153 Ethical universalism, 258

employee stock ownership plan, C-340 as valued partners, 360 Elhics,257; see also Business ethics

fringe benefits, C-340 in weak-culture companies, 349 and benchmarking, 104

profit sharing, C-339 Employee stock ownership plan integrative social contract theory,262

Nucor Corporation Herman Miller Inc., C-340 Euro, 187

egalitarian approach,C-238-C-239 Starbucks, C-321 Excess supply, and strength ofrivalry, 52

fringe benefits, C-238-C-239 Empowerment, 328,360 Exchange rate fluctuations, effect on Kraft

incentive plan, C-238 Engine technological district, Italy, 182 Foods, C-294

information sharing, C-239 Enterprise resource planning, 125 Exchange rates

lack ofjob description, C-239 Enterprise Resource Planning software, 324 adverse shifts in, 185-187

medical and dental plans, C-238 Entrepreneurship, in strategy-making, 31 unpredictabiliry 187

new employees, C-239-C-240 Er"rtry and weak dollar, 186-187

principles, C-238 effect ofindustry growth rate,65 Execution-critical activities, 319-320

scholarships, C-239 industry driving force,66 Exit

service awards, C-239 Environment, 275 effect ofindustry growth rate, 65

teamwork, C-239 Environmental factors,48 industrydriving force,66

tuition reimbursement, C-238 Environmentally sustainable practices, Exit barriers, high,52

Sift Cupcake and Dessert Bar, C-36-C-37 275-277 Experience

Starbucks business case for,279-281 and centralized locations, 198

fringe benefit program, C-323 greenhouse gases, 276 from entering foreign markets, 180

health care coverage,C-32| for natural resources,276 taking advantage of, 124

Page 34: crafting and executing strategy

l-32 Subject Index

Expertise Financial rncentives price-to-earnings ratio, g5

competitively valuable, 8 incentive compensation, 335 profitability ratios, 83-84diverse kinds of, 167 perks and fringe benefits, 331 Financial reporting, oversight oi 37transferring, 222 Financial management, Herman Miller Inc., Financial resourcestransfer to cross-border markets, 209 C-340-C-342 allocation in diversified companies,

Export strategies, 188-189 Financial objectives 244-245External analysis; see Macro-environment balanced scorecard for, 29 cross-border allocation, 230External environment,45 definition,23 Financial resources fitExternal fit, 12 short- vs. long-term,28 cash cows,242External threats, 96 types of, 28 cash hogs, 242-243

Financial performance and companlwide performance

f Apple Inc. 2007-2011, C-181, C-189 targets,243

I Applelnc.20l2,C-197 credit rating,243Bayonne Packaging, Inc., C-361 in diversified companies,243

Face-to-face contacts,359-360 Blt Wholesale Club, C-24 internal capital market,242Facilities tours, 359-360 Chipotle Mexican Grill, C- I 15-C- 1 16 portfolio approach, 242Factor conditions, and national competitive Coach Inc., C-75-C-76 Financial services, mergers and acquisitions

advantage, 181 Costco Wholesale, C-8-C-9 1n,247Factory stores, Coach Inc., C-81 Eastman Kodak, C-219 Firm size,74Fair trade industry Equal Exchange, C-156-C-158 Firm strategy, structure, and rivalry, and

basic principles, C-160-C-l6l evaluation of, for Thanksgiving Coffee, national competitive advantage, I83competition in, C-163-C-164 C-I64 First-nover advantagesEqual Exchange in, C-148-C-160, Frog's Leap Winery, C-402-C-403 at Amazon.com, 157

C-163-C-166 Google Inc., C-176 conditions favoringFair Trade Labeling Organization, C-151 Henkel AG, C-347 learning curve effects, 156

food and beverage products, Herman Miller Inc., C-343 property rights protection, 156

C-l6l-C-162 Kraft Foods 2007 2011, C 288-C-289 reputation and brand loyalty, 155

history of, C-161 Kraft Foods 2012,C-299 setting technical standards, 156

labels, C-162 Kraft Foods business units, switching costs, 156

newproducts added, C-162 C-294-C-296 definition, 155

numberofproductsoffered,C-161 KrugerNationalPark,C-370 prosandcons,157-158social agenda, C-160 lagging indicators,ZS-2g risks and benefits, 155

validationsystem,C-I62-C-163 leadingindicators,29 Fittest, 12

Family work environment, 332 lululemon Athletica, C-6I-C-62 Five forces model of competition; see a/so

Fannie Mae, failure ofcorporate governance, Microsoft 2007-2011, C-184 Competitive forces

39-40 Mystic Monk Coffee, C-5 and competitively unattractiveFarmers, exploitation oi C-151-C-153 Netflix after strategy shift, C-130 industry, 63

Fast-casual restaurants Nucor Corporation,C-223 definition,49listing of, C 100-C- 102 Panera Bread Company 2002-20 1 1, C-98 and good profitability, 63 64

Panera Bread company, C-96*C-1 10 Panera Bread Cornpany in 2012, C-ll3 illustrated, 50

FastCompany, C-335, C-342 Sam's Club, C-22 and industry attractiveness, 63

Faulty oversight, 264 Sift Cupcake and Dessert Bar, C-35, C-39 and outlook for profitability, 75

Federal Communications Commission Starbucks 2007 -2}ll, C-306 steps in using, 49

Google fined by, C-186 Starbucks in 2012, C-330 on strategic group map, 70-71and net neutrality, C-182 C-183, C-186 State Fair ofvirginia, Inc., C-206-C-207 Fixed costs, and strength ofrivalry, 52

Financial accounting, oversight of, 37 Tata Group, C-246 Flat structure, 304

Financial crisis of2008,96, 230 Tiffany & Company, C-86-C-87 Focused differentiation strategies

effects of Walt Disney Company, C 273, definition, 122

on Henkel AG, C-348 C-275-C-276 distinguishing features, 142-143

onjewelryindustry, C-89-C-90 wine industry2002-2010, C-393 examples, 136-137

on luxury goods market, C-77 Yahoo!, C- 185 at Popchips, 138

on Panera Bread Company, C-96 Financial ratios risks, 139-140

on PC industry, C-I92 activity ratios, 85-86 when most attractive, 139

on Starbucks, C-305 California wineries, C-403 Focused low-cost strategies

on State Fair ofVirginia, Inc., dividend payout ratio, 86 Aravind Eye Care System, 137

C-205-C-206 dividend yield on common stock, 85 avenues to achieving, 1 36

on steel industry, C-242 free cash flow, 86 definition, 122

on Tiffany & Company, C-86 internal cash flows, 86 distinguishing featvres, 142-143

subprime loans,264 leverage ratios, 84-85 examples, 136

Financial goals, Henkel AG, C-346-C-349 liquidity ratios, 84 versus low-cost provider strategies, 136

Page 35: crafting and executing strategy

Subject Index I-33

risks, 139-140 examples, 164 Globalbrand names, 195

when most attractive, 139 supply chain management in, 165 GlobalizationFocused strategies, 8 Franchising changing competitive landscape, 179

compared to other strategies, 135-136 lululemon Athletica, C-63 industry driving force,65-66definition, 122 Panera Bread Company Globaily competitive markets, 52

differentiation, 136-138 company support, C-108 Global positioning systerns, 330examples, 136 contribution to advertising, C-106 Global strategylow-cost, 136 criteria for consideration, C-I07 advantages and disadvantages, 197

matched by rivals, 139 initial investment, C-107 benefits ofstandardization, 196

risks, 139 number offranchise groups, C-108 definition, 195

and shift in consumer preferences, 139 operating standards, C-108 drawbacks, 196

too many competitors, 139-140 profitability, C-108 at Ford Motor Company, 196

when most attractive, 139 7-Eleven Stores global brand names, 195

Food and Drug Administration, C-365 operations, C-257-C-258 research and development costs, 196

Foreign Corrupt Practices Act, 261, C-19 in Taiwan, C-261-C-272 think global, act global approach, 195-196Foreign marketst see also International rvorldwide locations, C-256 value chain activities, 195

expansion Franchising strategies Golddeveloping countries examples, 190 price increases, C-89-C-90

competing in, 204-207 problems with, 190 segment of jewelry industry, C-90strategies for local companies, 207 -209 Freddie Mac, failure of corporate Good Morning America, C-95

economic risks, 185 governance, 39-40 Government investigation ofinsidefactors in strategy-making for Free cash flow,86 trading,264

cultural differences, 187-188 Freedom oflnformation Act, C-186 Government policydemographic differences, 187-188 Free trade industry as barrier to entry, 55

and diamond ofnational competitive lack ofconsumer awareness, C-153 impact on foreign-market entry, 184-185advantage, 181-183 price comparisons, C-152 impact on industry practices,6T

effect ofeconomic conditions, 185 Fringe benefits, 331 Government regulation ofcoal mining,impact of government policy, 184-185 at Costco Wholesale, C-16-C-17 C-388locating value chain activities, 183-184 Herman Miller Inc., C-340 Granholm v. Hesld, C-405nlarket conditions, 187-188 at Starbucks, C-323 Great Depression, Herman Miller Inc.risk ofexchange rate shifts, 185-187 Full-capacity operations, 124 during, C-332-C-333

political risks, 184-185 Full integration, 162 Great Recession, 754; see also Financial crisisand profit sanctuaries, 201-204 Full-price stores, Coach Inc., C-80-C-81 of2008reasons for entering Functional-area strategies Greed,264

access to resources and capabilities, 180 definition,34 Greed-driven cultures, 353-354exploit core competencies, 180 responsibility for, 33 Greenfield ventureslower costs, 180 Functional-area strategy, 82 conditions for appeal of, 190

new customers, 179 Functional structure, 304-305 definition, 189

spread business risk, 180 Fundraising, Equal Exchange, C 156 problems with, 190

strategies for entering Fundraising consultants Gross domestic productacquisition ofsubsidiaries, 190 for State Fair ofVirginia, C-206 lndiain2012,C-248exporting, 188-189 not for-profit sector percentage, C-200franchising, 189 Gross profit margin ratio, 83

greenfield-ventures,189-190 G Growthjoint ventures, 190-193 Chipotle Mexican Grill, C-i 14

licensing, i89 Generalized resources and capabilities goals at Starbucks, C-330strategic alliances, 190-193 ignored in related diversific^tton,222-223 limited opportunities,216

Foreign subsidiarystrategies tlpes o{ 229-Z3O lululemon Athletica, C-59acquisitions, 190 in unrelated diversification, 228-229 national, by Starbucks, C-311

greenfield ventures, 189-190 Generally accepted accounting principles, 37 Panera Bread Company, C-97

Fort Bragg Army Garrison, 29 Generic competitive strategies potential in developing markets, 181

Fortune, C-322, C-334, C-339 best-cost provider strategies, 122, 140 14\ profitable, 232

Forward channel allies broad differentiation strategies, 12i, prospects for Tata Motors, C-254-C-255

value chain, 105-106 129-135 reason for unrelated diversification,232in value chain, 102 distinguishing features, 142-143 at Under Armour after 2000, C-43-C-44

Forward integration focused strategies, I22, I39-I40 Growth rate, long-term changes, 65

competition against distribution lorv-cost provider strategies, l2I, L22-I29 Growth strategyallies, 164 resource-based, 143-144 at Costco Wholesale, C-I2-C-13

definition, 162 Geographical coverage, from mergers and lululemon Athletica

to enhance competitiveness, 163-164 acquisitions, 160 broaden product appeal, C-6I

Page 36: crafting and executing strategy

r-34 Subject Index

Growth strategy-Cortinternational expansion, C-61

new product technologies, C-61new stores in North America, C-60raise brand awareness, C-60-C-61

Panera Bread Company, C-102Sift Cupcake and Dessert Bar

business plan for, C-37-C-47options 201 1-20I3, C-40

at Under Armour, C-46Guerri-lla warfare tactics, 151

HHealth care coverage, at Starbucks, C-32iHigh-cost advantage, reallocating, 105

High-performance culture, 35 IHigh-powered incentives, 33 IHiring policy

at Chipotle Mexican Grill, C-120at Costco Wholesale, C-18Equal Exchange, C-154by Sift Cupcake and Dessert Bar, C-37

Hit-and-run tactics, l5lHome Show C-333

Horizontal merger and acquisition strategies,

ses also Mergers and acquisitionsBristol-Myers Squibb, 161

definition,159Nucor Corporation, C - 228 - C - 23 Iobjectives,159-160reasons for failure, 16l-162Starbucks, C-3 17-C-318Walt Disney Comp any, C-27 5,

c-276,C-277Horizontal scope, 159

Host countrieseconomic risks, 185

political risks, 184-185Households, disposable income in

India, C-251

Housing price bubble, 264

Human assets, 87, 88

Human resource managementin differentiation strategies, 131

Equal Exchangc, C- 1 54

Herman Miller Inc., C-339-C-340Nucor Corporation, C -23 8-C -240

at Sift Cupcake and Dessert Bar,

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

II

i.Cash cards, C-266Illegal activity

Massey Energy Corporation,c-389-C-391

poaching rhinos, C-382-C-383

Image,87,88Imitation

and differentiation strategies, 134-135difficult for resources, 9l

Immediate industry and competitiveenvironment,4T

Immigrant labor, Frog's Leap Winery, C-40IImpact Databank, Review, and Forecast of the

Wine Industry, C-405Implied social co ntr acl, 27 8 -27 9

Imports of steel into U.S., C-243,C-244Inc. Magazine, 192

Incentive compensation, 335

Incentive plans, 125: see also Reward systemsacting on ideas from employees, 332

awards and public recognition, 332

financial,331to focus attention on objectives, 331

high-powered, 33 Iinformation sharing, 332

inspirational strategic vision, 332Nucor Corporation, 336

bonus plan, C-237department manager incentive pian,

c_237401(k) plans, C-238production inventive plan, C-237profit sharing, c-238senior 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-75Costco Wholesale, C-8-C-9Equal Exchange, C-158, C-f64Frogt Leap Win ery, C-402Kraft Foods 2012, C-297-C-298President Chain Stores, C-269Starbucks 2007-2071, C-306Tata Motors, C- 248-C-249Thanksgiving Coffee, C-164Under Armour, C-45

Incompatible subcultures, 354

Independent actions, 321

Indiaall-in-one business machine, 207

automobile industrydomestic sales 2006-20ll, C-251

dominant firms, C-250evolution 1990-2012, C-250-C-251fuel prices, C-251

highway projects, C-25 Iincreased demand, C-251

urban population, C-250demand for luxury goods, C-78distribution channels, 181

information technology firms in, 208

macroeconomic conditionsdemographics, C-248disposable income, C-2il.education, C-250inflation, C-250political corruption, C-250projected growth, C-250recovery from recession,

c-248-C-250middle class income, C-252

Indianapolis 500 race, C-86Industries

attractive, 63

blue-ocean strategy, 152-154competitively unattractive, 63

convergence of, 160

deciding on means ofentry,215life cycle of strategy, 8

long-term growth rate changes, 65regulated, 55

Industry analysis

external environment, 45

immediate competitive environment, 47

internal environment, 45

key success factors, 7 3-7 5

macroeconomic factors, 46-48outlook for profitabiliry 75

strategic group mapping, 69 -7 IIndustry and competitive environment

assessing,48-49buyer bargaining power, 60-63components,4Tprice sensitivity, 60-63profitabiliry 63-64sellers of substitutes, 56-58strength of competitive forces, 49*53supplier bargaining power, 58-60threat of new entrants, 54-56

Industry attractiveness, 75

evaluatingcalculating quantitative scores,

234-235interpreting scores, 235 -237

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

Industry attractiveness scores

calculating, 234-235cross-industry st r ategic t:J, 235and intensity of competition, 237

interpreting, 235-237matching resource requirements, 235

measures, 235

weighted,236Industry attractiveness test

for diversification, 217

for unrelated diversification, 228

Industry clusters, 182

Industry concentration, and supplierbargaining power, 60

Industry consolidation, steel indrstry, C-242

Page 37: crafting and executing strategy

Subiect Index I-35

Industry driving forces Inkjet printer industry competition, C-218 Internally performed value chainadjusting strategy for, 68 Innovation, 134 activities, 105

assessing impact of,68 as competitive weapon,53 Internal Revenue Codebuyer demographics, 65-66 hindered by Six Sigma,325 and not-for-profit organizations,changes in cost efficiency, 66 industry driving force, 66 C-199-C-200changes societal concerns,6T 7-Eleven Stores, C-264-C-268 and State Fair ofVirginia, Inc.,C-201concept of,64 striving for, 13I Internal Revenue Service, and not-for-profitdiffusion oftechnical know-how, 66 Innovator\ Dilemi?d (Christensen),C-342 organizations, C-200entry or exit ofmajor firms, 65 Inputs Internal universities,2ggglobalization,65 access in foreign markets, i83-184 International editions oftextbooks, C-29innovation,65 differentiation,60 International expansion; see also DevelopingInternet,65 high-quality, I31 countries; Foreign marketslong-term growth rate changes,65 67 lower-cost, 125 Coach Inc., C-81-C 82most common,67 Inside directors, 37 by Costco Wholesale, C-6reductions in uncertainty and business Inside trading,264 Henkel AG, C-346

risk, 66 Insular cultures, 353 Herman Miller Inc., C-333regulatory influences,67 Intangible assets Kraft Foods, C-290on strategic group map, 7l brands, 88 lululemon Athletica, C-59, C-60technological changes,65 companyculture,83 Netflix, C-130, C-I45-C,146

Industry environment, DVD business company image,88 7-Eleven Stores, C-256, C-259competitive intensity, C-134-C-136 definition,87 suppliers, 180

distribution channels, C-132-C- 133 human assets, 88 Tata Motors, C-247, C-252enabling technologies, C-130-C-132 incentive systems,88 Under Armour, C-50-C-51initiatives to promote streaming, intellectual capital, 88 via joint venture by Nucor, C-232-C-233,

C-133-C-134 relationships,88 C-234major players, C-133-C-134 Intangible costs of ethical wrongdoing, 269 Walt Disney Company,C-278shorter studio release times, C-133 Intangible features, 133 International Labor Organization,260trends 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 strategyIndustry 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 developingHerman Miller Inc., C-332 differences,262 markets,209Nucor Corporation, C-220-C-221 between universalism and relativism, 262 Netflix, C-130, C-145-C-146Tata Motors, C-246 Intellectual capital, 87, 88 Nucor Corporatlon, C-232- C-233

Inflation, in India, C-148-C-250 Intellectualproperty optionsInformation, and buyer bargaining power, 6l first-mover advantage, 156 global strategy, 195-196Information 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, 196-197Information systems Internal administrative costs ofethical 7-Eleven Stores,C-261-C-272

areas covered by, 329 wrongdoing, 269 Starbucks, C-314-C-316, C-330better strategy execution, 329 Internal analysis Walt Disney Company, C-273, C-278,company examples, 328-329 competitive strength of rivals, 1 08- 1 I I C-280-C-28 Ielectronic scorecards,330 cost structure,9T-108 International tradeperformance tracking, 325 customervalue proposition, 97-108 and adverse exchange rate

real-time,330 present strategy,8l-86 shifts, i85-187Information 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-229Infrastructure, and national competitive SWOT analysis, 92-97 Internet

advantage, 181 Internal capital market, 230 consumer information from, 61

Inimitability definition,242 industry driving force,65and differentiation strategies, 733-134 Internal cash flow,86 net neutrality, C-182-C-183, C-186ofresources,9o Internal costs, 101 Interstate commerce, C-405

Initial public offering Internal development, 219 Inventory managementChipotle Mexican Grill, C-l15 Internal development of capabilities Coach Inc., C-79-C-80Dutch auction by Google, C-169-C- 171 fine-tuning,297 lululemon Athletica, C-64-C-65Herman Miller Inc., C-333 incremental and complex process, 296 Under Armour, C-52by Kraft Foods, C-289-C 290 managerial acIions,2g7 Inventory turnover, 85

lululemon Athletica, C-60 Internal environment, 45 Investment, in Equal Exchange,

by Under Armour, C-44 Internal fit, 12 C-158-C-160

Page 38: crafting and executing strategy

l-36 Subject Index

Investment Development Authority, County branding capabilities, T4 Licensing strategies, 189

Caroline, Ya.,C-203,C-204 clever advertising, 74 Lifestyle changes,6TInvestment fraud definition, 73 Lifestyles ofHealth and Sustainability, C-395

Madoff Securities, 265 full capacity utilizat\on,7 4 Line-and-staff structure, 304Stanford Financial Group,265 importance for competitive success, Liquidity ratios, 84

Investment opportunities, 215 73-74 Litigation by Tiffany against eBay, C-88Inwardly-focused cultures, 353 network ofdistributors, 74 LoansISO 9000 standards, C-232 for strategy-making,74-75 from Small Business Administration, C-33ISO 9001 standards, l3l superior differentiation, 74 to State Farr ofMrginia, Inc.,C-204ISo I 4000 standards, C-232 variation by industry, 74 Lobbying by Google Inc., C- I 86

ISO 26000 standards,272 Kickbacks Local companies vs. multinationalItaly, engine technological district, i82 areas predominant in,260 corporations in developing countries,

and codes ofethics,26l 207-209and Foreign Corrupt Practices Act,26I Local markets, changes in developing

I issue for multinational corporations, countries,206\) 260-26l Local-regional firms, 152

Japan, Coach Inc. in, C-81-C-82 persistence of,261 Location, see also Stores

/CKmagazine, C-88 Knowledge-based capabilities,83 advantageous value chain activities,

fewelryindustry Knowledge diffusion,66 183 184

competition from non jewelry outlets, KSF; see Key success factors Chipotle Mexican Grill, C-121-C-123C-90 for competitive advantage

competitors in, C-91-C-94 concentration, 198-199decreasing number offirms, C-90 I aispersal, 199

diamond segment, C-87-C-S9 l- industry clusters, 182

effects offinancial crisis of2008, Labor, underage,260 Panera Bread Company, C I08 C'109C-89-C-90 Labor costs 7-Eleven Stores

expected increase in outlets, C-90 in China,208 in Taiwan, C 261 C-264gold price increases, C-89-C-90 country differences, 65 in United States, C-257sales by major retarlers, C-95 in low-wage countries, 183 Starbucks stores, C-315Tiffany & Company, C-84-C-87 in steel industry, 336 Logistics, 7-Eleven Stores, C-268wage cuts, C-90 Labor force oflocal companies in developing Long-term debt-to-capital ratio, 84

Joint ventures countries, 207-208 Long-term debt-to equity ratio, 85

to access capabilities,299 Lagging indicators,2t-Z9 Long-term objectives, 28

definition, 169 Late-mover advantages, 157 Lowballing on prices, 151

diversification by,219 Late-mover disadvantages, 155-156 Low-cost leadershipdrawbacks, 219 Latin America, strategic alliances in, 183 achieving, 122 123

to enter foreign markets Leadership of strategy execution, 358-362 Costco Wholesale, C 9-C-12economies ofscale from, 19i making corrective adjustments, 361-362 Low-cost production, at Nucor Corporation,gains in technical expertise, 191 management by walking around, 359-360 C 232

risks, l9l-193 mobilizing for excellence,360-361 Lorv-cost provider, T

shared distribution networks, l9l top-down process, 359 Low-cost provider strategies

wide use of, 190 Leadership path,294 avenues for achievingexamples, 169 Leadership skills, 38 cost-efficient value chain management,

to gain access to resources and Leading by example, 357 123-125

capabilities, 180 Leading indicators,29 value chain revamping, 125-127

host-government ownership Lean manufacturing, Herman Miller Inc., and centralized production, 198

requirements, 219 C-338-C-339 cost drivers, 123,124Nucor Corporation,C-232-C-233,C-234 Leapfrogging competitors, 151 customized for company situation, 288

Nucor-Yamato, C225-C-226 Leapfrog technological innovation,C-232 definition, l2IStarbucks, C-316-C-317, C-318-C-319 Learning curve effects, 124 in developing countries, 205

Tata Motors, C-247 , C-248 first-mover advantage, I 56 distinguishing features, 142-143

transaction and coordination costs,22l l,earning effects, and centralized locations, driving dorvn costs, 124

Just-in-time systems, 124 198 versus focused low-cost strategies, 136

Learning process, in strategic alliances, l7l keys to success, 128

Ll LEED-certified wine, C-401 low-cost leadership,122-123

K Legal forces,48 options

Leverage ratios,84-85 maintain present price, I23

Key success factors Licensing agreements underpricing, 123

basic questions about,74 ofproducts by Under Armour, C-50 pitfalls, 129

in beer industry, T4 Starbucks, C-314, C-315 when most competitive, 128

Page 39: crafting and executing strategy

Lower prices, 150-151

Luxury goods marketaggressive competition, C-73

Coach Inc. in, C-73-C-83consumer spendingin 2011, C-77

counterfeiting problem, C-78demand in emerging markets, C-78diamond industry, C-87-C-89in financial crisis of 2008, C-77leading brands, C-77main categories, C-77main competitors, C-77market shares, C-73sales, C-73Tiffany & Company in, C-84-C-87,

c-9r-c-9sU.S. jewelry industry, C-89-C-91variety ofproducts in., C-90-C-91

MMacro-environment

competitive environment, 48-64competitor analysis, 71-73components of,47definition,46disruptive change in, 36

economic conditions, 46, 48

environmental forces, 46-48industry driving forces, 64-68key success factors, 73-7 5

legal and regulatory factors, 46-48market position of rivals,68-71outlook for profitability, 75

PESTEL analysis, 46

political factors, 46, 48

sociocultural forces, 46, 48

strategically relevant factors in, 46 48

technological factors, 46-48Management

at Chipotle Mexican Grill, C-l 19 C-120

choices in how to compete, 4

crafthg and executing strategy, 13

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

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

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

lululemon Athletica, C-61

at Starbucks, C-329 -C-330strategy issues meriting attention, I 1 Itime demands by subsidiaries, 231-232

at Under Armour, C-44Management 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

at Equal Exchange, C-149

Nucor Corporat ion, C -22I - C -222

Management development at Procter &Gamble,294

Management information systems, Panera

Bread Company, C-1 10-C-l I IManagement teams, 292-293

Costco Wholesale, C-18Managers

basic tasks for strategy executionin big companies, 290

necessary internal changes, 288-289

in small companies, 290

capturing benefits of process managementtools,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

Manufacturingadvantageous value chain locations,

183 184

China as capital ol 183

cross-border coordination, 20 Iglobal, by Tata Motors, C-246

Herman Miller Inc., C-338-C-339

outsourced by lululemon Athletica, C-68

strategic fitin,225Manufacturing execution systems software,

125

Market(s), expansion by Starbucks, C-3 1 IMarket capilalization, Apple Inc. in

2012, c-r87Market conditions, in foreign markets,

187- 188

MarketingChipotle Mexican Grill, C- 120-C- I 2 rcommunity-based at lululemon Athletica,

c-68emphasis on, 131

by Equal Exchange

advertising, C-I55fundraising, 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 -226Marketing innovations, industry driving

force, 66

Marketing research

Coach Inc., C-74Panera 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

Subject Index I-37

Sift Cupcake and Dessert Bar, C'35-C-36

by Under Armouradvertising and promotion, C-50

retail marketing, C-49-C- 50

sports marketing, C- 47 -C- 49

Marketing vice president, role in strategy-

making,3lMarket 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 positionCostco Wholesale, C-6

defensive strategies to protect, 1 54- 1 58

dominating depth, 200-20 I

Google Inc., C-168Kraft Foods, C-294in multidomestic strategy, 193-194

offensive strategies to improve, 150-158

of rivals, 68-7 Istrengthening

by mergers and acquisitions, 159-162

by outsourcing, 1 66- l 68

by scope of operations, 1 58

by strategic alliances, 168-174vertical integration strategies, 1,62-166

Market share

ofbig box stores, C-94

browser market, C-I82Coach 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-182search engine market, C-183

smartphones, C-I81from guerrilla tactics, 151

leading PC vendors, C-l9lrelative to rivals, 237

in search engine market, C-183

7-Eleven Stores, C 267-C-268

smartphones, C-l8lsmartphone 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, 133-134Materials handling, reducing, 126

Matrix structure, 306 -307Membership

Bf 's Wholesale Club, C-24-C-25at Costco Wholesale

base, C-15-C-16

Page 40: crafting and executing strategy

I-38 Subject Index

Membership-Con r.

demographics, C- 15-C- 16

size of, C-6Sam's Club, C-21

Merger, 159

Mergers and acquisitions; see alsoAcquisitions

acquiring capabilities throughdifficulty, 397 -298occasions for, 397

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

countries,209objectives

complementary resources/capabilities,160

cost efficiency, 159-160geographic coverage, 160

leading industry convergence, 160

new product categories, 160

new technologies, I60reasons for failure, I6I-162versus strategic alliances, 168, 17Z

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

Response Act, C^388Mine Safety and Health Administration,

c-388, C-390Mission

Equal Exchange, C-151lululemon Athletlca, C-62not-for-profit sector, C-200State Fair ofVirginia, Inc., C-200-C-20ISustainable Winegrowing

Program, C-396Under Armour, C. 45-C-46

Mission statement

Costco Wholesale, C-9definition, 24

examples,24-25and profit-making,25Sift Cupcake and Dessert Bar, C-36Starbucks, C--324, C-325Zappos.com,26-27

Mobile phone use, 158

Mobihzing for excellence

celebrating success, 361

compensation incentlves, 36 1

and consequences for poorperformance, 361

empowerment,360focus on strategic objectives, 360fostering esprit de corps, 360

motivational techniques, 36 Itreating employees as partners, 360using process management tools, 360

Monitoring developments, 1 9-20

Monitoring employee performance, 330-33 1

Moral case for corporate socialresponsibility, 27 8-279

Motivational practices; see IncentivesMotivational techniques, 36 1

Motivation of employees, 125

Movie industrydecline in profitability, C-217DVD rental business, C-130-C-136shift to digital technology, C-217trends in home viewing, C-133-C-134use of Kodak film, C-217Walt Disney Company in, C-273-C-274,

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

advantages and disadvantages, 197

definition, 193

drawbacks, i95strengths, 193-194think local, act local approach, t-94-195

Multinational corporationsproblem ofbribery and kickbacks,

260-26rproblem ofethical relations, 261

strategies for local companies againstacquisitions, 208*209business model,207knowledge of local workforce,

207_208rapid-growth strategy, 208-209transfer of expertise, 209

understanding customers, 207Multiplant operations, Herman Miller Inc.,

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

NNapa Valley wine industry, C-392-C-399NASDAQ, C-19National Environmental Management Act,

South Africa, C-370L\aturat resoufces, 275

Net income, Coach Inc., C-73Net neutrality, C- 182-C-183, C- I86Net profit margin, 83

Net return on sales, 83

Net return on total assets, 83

Net sales, byApple Inc.2009-2011, C-190Network effects, as barrier to entry, 54Network structure, 310New customers, in foreign markets, 179

Neu'entrantsand Darners to entry, 54-55as competitive threat, 54

defenses by incumbents, 54

factors affecting threat of, 56

and strength of rivalry, 5 1

New product categories, from mergers andacquisitions, 160

New product launchApple iPad, C- 192-C-193Apple iPod, C- 188-C- 189

New textbook editions, C-28-C-29easily updated as Ebooks, C-32

New venture development, 2 l9New Yorker, C-220New York Times, C-400Next-generation products. I 5lNicaragua, embargo in 1980s, C-149Nine-cell industry attractiveness matrix,

239-240No-layoffpolicy, 336

Nonfinancial resources fitguard against overtaxing resources, 244matching resources and capabilities,

243-244Nonprofit locations, Panera Bread

Company, C-105Non-substitutable resources, 9 1

Not-for-profit sector

Chapter 1 1 bankruptcy option, C-200Chapter 7 bankruptcy option, C-200characteristics, C- 199-C-200corporate governance, C-200dissolution of, C-200gaining tax-exempt status, C-199-C-200mission, C-200percentage ofGross domestic product, C-200restriction on profit uses, C-200State Fair ofVirginia, Inc., C,198-C-210

Obama administration, C-182Objectives, 19 20

balanced scorecard method, 29

ofbenchmarking, 103

in competitor analysis, 72

conflict in strategic alliances, 19l-I92deadlines in,27definition, 27

for every organizational level, 29 30

examples, 30

quantifiable and measurable, 27

in strategic plan, 35

stretch, 28

top-down process, 30

as yardsticks, 27

Offensive strategy optionsblue-ocean strategy, 152 - I54choosing basis for attack, 150-152choosing rivals to attack, 152

principles, 150

timing of, 155-158first-mover advantages, I 55- 1 56

fi rst-mover disadvantages, 1 56

Page 41: crafting and executing strategy

Iate-mover advantages, 156

pros and cons for first movers,

Office furniture industryeffect of recession, C-344Herman Miller Inc. in, C-330-C-344

need for ergonomically correctfunction, C-344

and telecommuting trend, C-344Office oI Federal Housing Enterprise

Oversight, 39

One-business company, strategy-making

in,215Online sales

consumer products, C-26Costco Wholesale, C- 14-C- l5of diamonds, C-88International editions of textbooks, C-29lululemon Athletica, C-64new textbook editions, C-28-C-29

Online systems, 328

Online training courses, 65, 299

Online virtual textbooks

e1'fect on publisher-professor relations,

c-27McGraw-Hill Connect, C-27McGraw-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,34responsibility for, 33

Operating systems

better strategy execution, 329

company examples, 328-329performance tracking, 325

Operation Perfect Hedge, 264

OperationsBayonne Packaging, Inc., C-364-C-366

Chipotle Mexican Grill, C- 1 16-C- I 19

at Eastman Kodak, C-216-C-217ethical principles in, 27 0

full-capacity, 124

Mystic Monk Coffee, C-4

Sams Club, C-21- C'22scope narrowed by outsourcing, 166-168

at Starbucks, C-327

State Fair ofVirginia, Inc., C-201

streamlining, 126

Organic foods, C-1I8Organizational learning, 35-37

Organizational levels, objectives for all,

29-30

Organizational structure15,/- 158 detlnltlon. J(Jz

Subiect Index l-39

risks on, L67-168

and scope of the firm, 159

streamlining internal operations by,

30 1 -302by Under Armour, C-51-C-52

Overspending, 135

DI

Paper packaging industryBayonne Packaging in, C-359-C-368

growth 1980s- 1990s, C-359

Parenting advantage, 23 IParenting capabilities, 229 -230Partial integration, 162

Partnershipsto add capabilities, 302

facilitating collaboration with, 310

in stralegic alliances, I7lPatent protection, 156

Patents held by Eastman Kodak, C-219

Peer-based control, 330-331

Penalties for wrongdoing, 269

Per capita Gross domestic product, India in2012, C-248

Performanceof collection of businesses, 2 l6of substitutes, 58

Performance evaluation, l9-20of strategy execulion, 36-37

Performance expectations, in high-performance culture, 351

Performance indicators, 12

Performance management, Henkel AG

development roundtable, C-352-C-353

evaluation grid, C-352

frame of orientation, C-353Performance measurement, by balanced

scorecard, 29

Performance metrics, 3

Performance monitoring, 330-33 IPerformance targets, 28

companl.'r,vide, 243

Starbucks, C-330

Performance test, l2Performance tracking, 329 -33 IPerks,331Personal computer industry

competitive position of Apple, C-192

competitors for Apple Inc.,

c-r93-C t94effects of recession, C- 192

market shares ofleading vendors, C-I9loverview of, C-790-C-192

Personal gain, pursuit of, 264

PESTEL,46,48,75Piece-rate incentive plan, 336

Planet, in triple bottom line, 274

Plant closings, Henkel AG, C-349-C-350

delegation of authoritycentralized decision making, 307-308decentralized decision making,

308-310designing, 302-303Eastman Kodak, C-217Equal Exchange, C-149, C-154

facilitating collaboration, 3 I 0

functional, 304-305Kraft Foods, C-287

matched to strategycollaboration, 3 l0delegation of authority, 307-3 l0outsourcing value chain activities,

300-30 1

matrix, 306-307multidivisional, 305-306network structure, 310

Nucor Corporation, C -23 6 -C-237Robin Hood, case, C-300

simple,304strategy-supportive, 291

for structuring work effort, 3 1 0-3 I IOrganizational units

reallocation of operating funds, 3 l8resource distribution across, 318

Organization for Economic Cooperation and

Development, anti-briberystandards,26l

Organizationsambidextrous, 325

key actions for strategy execution,

290-292capturing resources and capabilities,

)ot )o)

staffing, 291-292structuring work effort, 29 1

value chain activities, 291

st^ffing,292-295Orientation sessions, 299

Outside directors, 37

outsourcing, 105

to access capabilities, 299

by Apple, Inc., 303

by Coach Inc., C-79

cost advantages, 125

definiiion, 166-167versus internal performance, 300-302

ofless important activities, 302

by lululemon Athletica, C-68reasons for

access to diversified expertise, I67activity crucial to comPetitive

advantage, 167

concentration on core business, 167

outside specialists, 167

reduces risk exposure, 167

speeds time to market, 167

Page 42: crafting and executing strategy

I-40 Subject Index

Plant construction, by Nucor Corporation,c-23r-C 232

Poaching, C-382-C,383Policies to facilitate strategy execution,

319-321Political forces, 48

Political risks, 184-i85Politicized cultures, 353Ponzi schemes,265

Population, oflndia in 2012, C-249Portfolio appr o ach, 242

Poverty, and child labor, 260Preemptive strike, 151

Pre-ordering, C,266Prepaid phone cards, C-266Pressure grottps,279Price(s)

basis ofcompetition in developingcountries, 205

and costs, 97-98lowballing on, 151

lower,150 151

of substitutes, 57

and supplier bargaining power, 60in 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, 53Price premium, too high, 135

Price sensitivity, of buyers, 6t-62Price-to-earnings ratio, 85

Price wars, 52

Pricing strategyCoach Inc., C-74Costco Wholesale, C-9-C-10Nucor Corporation, C-226-C-228Tata Motors, C-252

Primary value chain activities, 98

distribution,99to identi$' cost structure components, 101

operations, 99

sales and marketing, 99

service, 99

supply chain management, 99Printing press industry, C-218Private brands, at BJ's Wholesale Club, C-23Proactive strategy, 8-9Problem cultures

change-resistant, 3 52 -3 53

changingdifficulqr,354identifring obstacles, 354-355making a case for change, 355-356substantive actions, 356-357symbolic actions, 357

time needed, 357-358greed-driven, 353-354incompatible subcultures, 354

rnsular. J5.t

politicized,353Procedures to facilitate strategy execution,

319-32IProcess management tools

best practices, 32I 322

business process reengineering, 323-324capturing benefits of

managerial actions, 327 -328specifying outcomes, 327

Six Sigma quality control, 324-326total quality man agement, 324

Product(s)

continuous innovation, 151

diverse uses, 134

with extra frills, 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, 204tangible features, 133

trivial improvements, 135

with upscale attributes, 140

Product attributes, ability to match rivals,237

Product designCoach Inc., C 74

at Herman Miller Inc., C-333lululemon Athletica, C-6-C 67

at Under Armour, C-5IProduct development

lululemon Athletica, C- 6-C-67strategy, 34

at Under Armour, C-51

Product differentiation, 128

Coach Inc., C-79-C-80and rivalry, 5 Isuperior, T4

Product innovation, industry drivingforce,66

Productioncross-border coordination, 20 1

Herman Miller Irc., C-338-C-339outsourced by lululemon Athletica, C-68outsourcing by CoachInc., C-79Panera Bread Company, C-107-C-1 10

at Starbucks, C-327Tata Motors, C-253

Production capacity, and strength ofrivaky,52

Production technologies, 125

Production vice president, role in strategy-

making,31Product licensing, by Under Armour, C-50Product line

Apple computers, C-192Apple's early releases, C-188Applet post-2000 releases, C- 188-C- 1 89

Bf's Wholesale Club, C-23Loactl lnc., (- ,/9

Costco Wholesale, C-10-C-1 1

Equal Exchange, C 156

Frog's Leap Winery, C 399Google Inc.. C- 17 I -C- t7 5

Henkel AG, C-348Kraft Foods, C-289, C-29 I -C-292lululemon Athle tica, C - 66Nucor Corporation

gradual expansion of, C-222steel making, C-225 C-226steel products, C -222 -C -225

Panera Bread Company, C-102-C-105Samt Club, C-21Under Armour

accessories, C-47apparel, C-46-C-47footwear, C-47

Walt Disney Company,C-282-C 283Product presentation, by Under Armour,

c-49-C,50Product redesign, 105

Product versioning, 131

ProfitApple Inc. tn 2012, C-187

credit rating and decline in, 265growth requirem enls, 228and mission statements, 25

Nucor Corporation, C-22Iin triple bottom line, 274

uses by not-for-profit sector, C-200Profitability

in developing co untr ies, 20 6 -207in differentiation strategies, 130

eroded by overspending, 135

eroded by supplier bargaining power, 58

versus ethics, 266-268and five-forces model of competition,

63-64identifring threats to, 94-96limited by buyer bargaining power, 60-61outlook for, 75

problem in baclaarard integration, 163

relative to rivals,237restaurant business, C-112from strategic fit,226

Profitability ratios, 83-84Profit formula

definition, 10

Sirius XM vs. over-the-airbroadcasters, 1 1

Profit marginscomponent ofvalue chains, 100

in retailing, 71

Profit potentiai on strategic group map,

70-71Profit sanctuaries

as competitive asset, 203

cross-market subsidization, 203

Page 43: crafting and executing strategy

to defend against rivaIs,203-204definition,20lfor domestic-only companies, 202

and dumping,203examples, 201-202for global companies, 202

for international companies, 202

to wage strategic offensive, 203

Profit sharing, Herman Miller Inc., C-339Promotion

BIt Wholesale Club, C-25Under Armour, C-50

Promotion from within, 331

Herman Miller Inc., C-340Property rights protection, first-mover

advantage, 156

Proprietary know-how, problem in licensingstrategies,189

Psychology of Achievement (Tracy), C-69Public recognition, 331

Punishment and rewards, 332-334Purchase, option to delay, 61

Purchasing power, from entering foreignmarkets, 180

Purchasing power parity India in 2012, C-248

Qualitycontinuous improvement, l3lof substitutes, 58

Quality assurance, Under Armour, C-51

Quality controlBayonne Packaging, Inc., C-360business process reengineering, 323 -324at Chipotle Mexican Grill, C-l19at Nucor, C-232processes, l3l

Six Sigma programl 324-328total quality man agement, 324

Quality of life, 272

RRadio, Walt Disney Company in,

c-278-C-280Rapid-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-149Realized strategy, 9

Real-time information systems, 330

Rebranding, by Under Armour, C-44Recession, effect on Herman Miller

Inc., C-335

Recognition program, at Starbucks,

c,323-C-324Recruiting

capable employees, 293-295

at Chipotle Mexican Grill, C-120at Costco Wholesale, C-18at Procter & Gamble, 294

Recycling program, Herman MillerInc., C-337

Regulatory forces, 48

impact on industry practices, 67

Related and supporting industries, andnational competitive advantage, 182

Related businesses, 221

Related diversifi cation, 217

combined with unrelateddiversification, 233

competitive adv antage fr om, 226

cross-business collaboralion, 222

examples, 222-223exploiting brand name recognition, 222

in multidivisional structure, 305-306specialized resources and capabilities,

222-224strategic fit, 221-222

along value chain, 224 -226economies of scope, 226-227leading to competitive advantage, 227

value chain actiities, 222

value chain match up,222Walt Disney Company

acquisitions, C-27 3, C-27 6,

c-276 c-277consumer produ cfs, C -282 - C -283

interactive medi a, C-283-C-284media networks, C-27 8-C-280parks and resorts, C-280-C-281studio entertainm ent, C-28I -C-282

Related-unrelated diversificationstrategies, 232

Relationship managers, 310

Rental textbooks, C-28Reporting stand ar ds, 27 2

Reputationand brand image, 237

damaged by wrongdoing, 268-269first-mover advantage, 155

tied to corporate social responsibiliry 279

Reputational assets, 87, 88

Research and development, 131, 309-310in global strategy, 196

at Herman Miller Inc., C-342locations in foreign markets, 184

strategic fit in, 225

Resource allocation to subsidiaries, 244

Resource and capability analysis, 107

assessing competitive power, 89-91for best-cost provider strategies, 140

definition,86for differentiation strategies, 133

Subject Index l-41

dynamic management, 91-92identifying capabilities, 88-89identif ing resources, 86-88VRIN tests for competitive advantage,

90-9rResource-based competitive strategies,

r43-144Resource bundles, S9

Resource fitdefinition,242financial resources, 242-243nonfinancial res ow ces, 243 -244in 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 318-319causal ambiguity,90competitive attack based on, 150

competitively more valuable, 87

competitively superior, 9ldefinition,87in diversification decision, 220

dynamic management, 91-92gained in foreign markets, 180

generalized vs. specialized, 222-223hard-to-copy, 90

intangible, 87-88oflocal companies in developing

markets,209reason for concentration oflocation, 199

related to value chain activities, 107

required in forward integration, I65shared for competitive advantage

to achieve dominant depth,200-2Olexamples,200potential problems, 201

social complexity, 90

steered to attractive business units, 216

for strategy exec fiion, 29 | -292strategy-supportive, 291

for sustainable competitive advantage,

89-91tangible,8T-88valuable, in diversified companies, 237

Resource shifting, 318

Restaurant industrychanging consumer tastes, C-l 12

Chipotle Mexican Grill, C-l l4-C-123competitiveness, C- I 12

consumers, C-125

fast-casual segment, C- 100-C- 102, C- 125

Moe's Southwest Grill, C-124number of employees, C- 112

number of establishments, C- I I2number of estabiishments in U.S., C-125profitabiliry C-l12

Page 44: crafting and executing strategy

l-42 Subject Index

Restaurant industry -Cont.promotions, C-112

Qdoba Mexican Grill, C-I24-C-\25sales in 20i2, C-124spending in, C-1 12

Taco Bell, C-123-C-t24Restructuring, 230, 247 -249

of business lineup, 249-250at Eastman Kodak, C-216-C-2I7at Kraft Foods,250reasons for, 249

Retail distribution, lululemon Athletica,c-63-C-64

Retailers/Retailingbargaining power, 61

blpassed in forward integration, 164carrying Under Armour products, C-50competitive profit margins, 7tdecline ofdepartment stores, C-82lululemon Athletica, C- 64-C- 65

securing shelf space from, 55

Under Armour, C-49-C-50Retraining, 299

capable employees, 293-295Retrenching, 249-250Return on assets, 83

Return on capital employed, 84

Return on invested capital, 84

Return on investment, from entering foreignmarkets, 179

Return on sales, 83

Return on stockholders'equity, 84

Revenue enhancement, 280Revenue recognition, Bayonne Packaging,

Inc., C-360Revenues

Apple Inc. in 2012, C-t87Chipotle Mexican Grill, C- 114

decline at Eastman Kodak, C-219Dell Inc. 2007-2012, C-294Google Inc., C-178Hewlett-Packard 2007 -2012. C-293Kraft Foods in 2012, C-287lululemon Athletica, C-59Massey Energy Corporation, C-385at Netflix, C-1277-Eleven Stores, C-268

sources for Google Inc., C-172-C-179State Fair ofVirginia, Inc., C-201Under Armour, C-46Walt Disney Company, C-27 3

Reward systems; see also Incenlivesbalance between rewards and

punishment, 332-334compensation guidelines

achievable outcomes, 334-335awarding results, 336-337communication to employees, 337extended to all workers, 335

objectivity and fairness in, 335

performance bonuses, 335

time factor, 336

Herman Miller Inc., C-339-C-340Nucor Corporation

bonus plan, C-237department manager incentive plan,

c-237401(k) plans, C-238production incentive plan, C-237profit sharing, C-238senior officer incentive plan, C-237

at selected companies, 333

at Starbucks, C-32I-C-324Rhino sales, hunting, and poachrng, case

animal supermarket, C-383conservation responsibilities, C-384estimated population, C-370hunting, C-377-C-382and Kruger National Park, C-369-C-370number ofarrested poachers, C-383poaching, C-382-C-383safari companies, C-37 7 - C- 382South African National Parks

captures, C-369, C-37 2 -C - 37 7

Environmental Crimes Unit, C-382game capture organization, C-372justification of selling rhinos, C-383operating expenses of capture, C-373Veteri nary Wildlife Services,

c-373-C-375views on hunting. C-371

Risk reduction, reason for unrelateddiversification, 232

Risks, in strategic alliances with foreignpartners

conflicting objectives, 191-192cultural barriers, 191

loss of competitive advantage, 192-193overdependence, 193

transaction costs, 191

Rivalryamong competing sellers

competitive weapons, 53

diversity of competitors, 52

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 differentiation, 51

slowly growing buyer demand, 49

strong, 52

weak, 52

Rivals; see also Competition; Competitorsblocking avenues open to, 154

chosen for attack, 152

comparing value chains of, 101

competitive analysis of, 71-73competitive intelligence on, 7 I-7 3

ethics of competitive intelligence on, 73improving on ideas of, 151

likely moves by, 7lmarket position, 68-71mutual restraint amorrg, 204signaling retaliation against, 1 55

using profit sanctuaries

to defend against, 203 -20 4for strategic offensive against, 203

weaknesses or strengths in relation to,108-111

Rolling Stone, C-386Runner-up firms, 152

Russia, McDonald's in, 206

)Safari companie s, C-37 7 -C-382Sales

Apple Inc. 2009-201 1, C-190business unrts at Eastman Kodak,

c-2I5-C-216Coach Inc., C-73Costco Wholesale, C-6*C-7

ancillary businesses, C- I Iby product category, C- I 1

domestic vehicles in India 2005-2OII, C-251Equal Exchange, C-157, C-158in jewelry industry by major retailers, C-95lululemon Athletica, C-59Nucor Corporation

by product category 1990-2011, C-227by product category 20Il-20I2, C-228

Panera Bread Company, C- 1 13

Qdoba Mexican crill, C-125straiegic fit in, 225-226Taco Bell, C-123-C-124Tata Motors 20II-2012, C-254Tiffany & Company, C-86U.S. restaurants, C-1 12

Sales growthChipotle Mexican Grill, C- I i5iquat .b,xcnange. L-15,/at Equal Exchange, C-149

Sales management, Bayonne Packaging, Inc.,c-362-C-36s

Sarbanes-Oxley Act, 37, 262 -263Scanlon Plan, C-333Scope ofthe firm

definition and description, 158-159horizontal, 159

vertical,159Search engine market shares, C-183Seattle Times, C-307Secret, The (Byrne), C-69Securities and Exchange Commission, 263,

c-19, c-336Diebold case, 265-266

Self-dealing, 264

Page 45: crafting and executing strategy

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 responsibility280-28 I

and corporate governance, 38

Costco Wholesale, C-19damaged by company wrongdoing, 269

in Under Armour, C-44

Shareholder valuegoal 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

capturing benefits of, 327 -328companies in forefront of, 325

compared to other process management

tools, 327

definition, 324

DMADV approach, 324

DMAIC approach. 324 325

for health care,325

innovation stifled by, 325

as motivation, 360

principles underlying, 324-325

for value chain activities, 326

at 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 contractlmplicit, 278-279integration lheory, 262

Social media

use by Sift Cupcake and Dessert Bar,

c-35-c 36

use in specialty food segn-rent, C-35

Social metric, 274-275

Societal concerns, changes in, 67

Sociocultural forces, 48

South Africaestimated rhino population, C-370

Kruger National Park, C-369-C-372

National Environmental Management

Act, C-370safari companies, C-37 7 - C-382

South African Police Service, C-382

Specialized resources and capabilities,222-223

Specialty bakery market, C-33-C-34Speed in diversification d ecision, 220-221

Spinoff,247Sports marketing

by Tiffany & Company, C-86

by Under Armour, C-47 -C-39Stabilization, reason for unrelated

diversification, 232

Staffingcommon practices, 295

recruiting. training. and retrainingemployees, 293-295

at Sift Cupcake and Dessert Bar, C-37

for strategy exec:ulion, 29 I *292

strong management teams, 292-293

Stakeholders

and corporate governance, 38

and corporate social responsibilit{, 270,

278-279Standardization, in global strategy, 196

Standards wars, 156

Startups

barriers to entry,2l7internal,2l9

State laws on sales ofalcoholic beverages,

c-40sStatement of operations

Eastman Kodak, C-214

Herman Miller Inc., C-343

Statistical information, 330

Steel industrycompetition in U.5., C-244-C-245

consolidation by Nucor, C-228-C-23 Iin financial crisis of2008, C-242

glut of imports, C-228-C-229industry consolidation, C-242

major exporting countries, C-242

mini-mills, C-241-C-242Nucor Corporatton, C-220 C-245

production by countrY, C-240

technologies, C-241-C-242top 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

Subject Index I-43

Stock option plan, at Starbucks, C-321

Stock price, and corporate social

responsibility, 280

Stock price performance

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-127Panera 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, lululemonAthletica, 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 Grilldevelopment and construction costs,

c-122-C-r23site selection, C- 1.2I -C- 122

Coach Inc.factory outlets, C-8 Ifull-price, C-80-C-81by geographical region, C-80

lululemon Athletica, C-64-C-65Panera Bread Company

increasing number of, C-113

number of locations, C-109

operations, C-109

site selection, C-108

size and environment, C-108

Starbucks

ambiance, C-312 -C-314

design characteristics, C-3 12

expansion strategies, C-3 l4-C-3 16

international strategy, C-314-C-316,

c-330licensed, C-314number of, C-305

Store showroom strategy, lululemonAthletica, C-64

Stories, role in corporate culture, 347-348

Strategic alliances

to access capabilities, 299

advantages over mergers and acquisitions,

1.72

advantages over vertical integration, 172

versus armtJength transactions, I 72

benefits to companies, 168

capturing benefits ofdecision-making Process, l7linformation sharing, 171

living up to commitments, 171

managing learning Process, 171

Page 46: crafting and executing strategy

l-44 Subject Index

Strategic alliances - C o nt.

picking good partners, 171

sensitivity to cultural differences, l7lcharacteristics, 168- 169

common reasons for, 170

definition, 168

to enter foreign marketseconomies of scale from, 191

gain in technical expertise, 191

risks,191-193sharing distribution networks, l9lwide use ol 190

examples, 170

facilitating collaboration with, 3 10joint ventures, 169

loss ofproprietary knowledge, 172

management as organizationalcapabllity,174

versus mergers and acquisitions, 168

more common in Asia and LatinAmerica, 183

Nucor Corporation, C-232-C-233,c-234

number of, 169-170purposes, 169

requirements for success

credible commitment, 173

learning process, I73management system,173safeguards, 173

trust,1737-Eleven Stores, C-259, C-26I -C-27 2by Solazyme, 192

for strong industry position, 170

technological advances, 1 69

time span o{ l7lunrealized gains, 172

versus vertical integration, 168

Strategic balance sheet, 93

Strategic direction, board guidanc e,37 -38Strategic fit

along value chaincustomer service, 226

distribution-related, 226

manufacturing-r elafed, 225research and development, 225sales and marketing, 225-226supply- chain activitles, 224 -225technological activities, 225

benefiting from, 237

competitive value of diversifiedcompanies, 241

cross-industry, 235

definition,22l 222

and economies of scope,226-226leading to competitive advantage, 227limited in unrelated diversification, 232profitabihty from, 227

shareholder value from, 227

in value chain activilies,222

Strategic group, 69

Strategic group map(ping)constructing, 69

definition,6Sexample, T0

guidelines,6gvalue of

effect of industry driving forces, 71

identifying rivals, 70

Prollt prospects,,/U-,/IStrategic leadership, Steve Jobs at Apple,

c-188-C-189Strategic objectives

balanced scorecard for, 29

definition,28as motivation, 360

short- vs. long-term, 28

tlpes of,29Strategic offensives

based on strongest competitive assets, 150

optionsbasis of attack, 150-152blue-ocean strategy, I 52- 154choosing rivals to attack, 152

principles of, 150

timing of, 155-158Strategic options, Coach Inc.

build market share, C-73in future, C-82-C-83raise brand awareness, C-73

target men as customers, C-73

Strategic plan, 20, 35

Strategic thinking,45Strategic vision, l9-20

Carmelite monks of Wyoming, C-3communicating, 21-22definition, 2ldistinctive and specific, 2 1

dos and donts, 22

examples,23expressed as slogan, 24

Mystic Monk Coffee, C-5significance of,24stated in inspirational terms, 332in strategic plan, 35

to win support of organization members,2L-22

Strategy; see also Defensive strategy options;Offensive strategy options

about competing differently, 4-5blue-ocean strat egy, 1 52-l 5 4

and business model, 10

Chipotle Mexican Grill, C-114choices involved in, 4

for competing in developing countriesbusiness risk vs. opportunities, 204

changing local markets, 206

low price, 205

modifying business model, 205-206places to avoid, 206-207

tailoring products, 204

Yum! Brands in China,205and corporate social responsibiliry

272-275corrective adjustments, 361 -3 62

definition,4deliberate, 9direction and guidance from, 4diversity of, 4

effectiveness offinancial ratios for, 82-86key components, 81-82specific indicators, 82-83

effects of change at Netflixdamage control, C-128-C-I29negative customer reaction, C-127problem with Starz, C-127-C-I28reversal of strate gy, C- 129 -C -130

stock price slide, C-127emergent,9evaluation of diversilied companies

business unit competitiveness, 237 -240competitiveness fit, 241

industry attractiv eness, 23 4 *237

new strategic moves, 245-246priorities for resource allocation,

244-245resource fir,242-244steps, 233

evolution over time, 8

for future ofState Fair ofVirginia,c-207-c-2I0

identifying characteristics, 5

issues meriting managementattention,11l

lor local companies in developingcountries

acquisitions, 208-209business model,207Ctrip in China,208local workforce, 207 -208rapid- growth str ategy, 208 -209transfer of expertise, 209

understanding customers, 207

market opportunily and, 9 4

matched to competition, 64

at McDonald's,6mergers and acquisitions, 159-162objectives,4options for entering foreign markets

acquisitions, 1 90

exporting, 188-189franchising, 189

greenfield ventures, I 89- 190

joint ventures, 190-193licensing, 189

strategic alliances, 190- 193

subsidiaries, l39 I90outsourcing, I66-168proactive,8-9

Page 47: crafting and executing strategy

quest for competitive advantage, 5-8reactive, 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 frompartners, 302

creating distinctive competence, 301

streamlining operations, 301 -302building blocks of organizational

structure, 303-304

Strategy executionApple Inc., C-18i-C-182, C-L92-C-193,

c-195aspects 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-92competitive advantage from, 300

corporate culture as ally in, 349-350

Costco \{4rolesalegrowth, C-12-C-13growth strategy, C-12 C-13

1ow-cost emphasis, C-12

marketing and advertising, C-13-C-14pricing, C-9-C-10product selection, C- l0-C- I Isupply chain and distribution, C-15

lreasure hunt merchandisi ng.

c-ll-c-12website 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,

328-331integrated tasks for, 20

leadership of,358-362lululemon Athletica

chiefcomponents, C-63

community-based marketing, C-67

distribution, C-67

product design and develoPment,

c-66-C-67product 1ine, C-66retail distribulion and store expansion.

c-63-c-64

retail stores, C-64-C-66sourcing 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-I30Nucor Corporation

growth by acquisitions,

c-228-c-23r, c-235growth via joint ventures,

c-232-C-233low-cost production, C'232

new technologie s, C23I -C-232plant constructio n, C23 I -C-232raw materials strategy, C-233 -C-235shift to value-added products,

c-235-c-236Panera 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, 321-322busi ness process reengineering.

323-324capturing benefits of, 327 -328Six Sigma quality control, 324-326

total quality rnanagement, 324

resource allocation to. 318-319

rewards and incentives to motivate,

JJ I _JJ)

role of employee rraining,299Sam's Club, C-21-C-227-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

taxi services, C-267 -C-268in small companies, 290

Starbucks

acquisition of Seattlei Best.

c-317 c-318acquisition of Tazo Tea, C 3I7

agreement with Kraft Foods, C-317

debit cards, C-317joint ventures, C-3I6- C-317

new market segments, C-316-C-319

new product launch, C-318

partnership with Green Mountain,c-318-c-319

product line expansion, C-3 t 6-C-3 19

Subiect Index l-45

sales mix in 2011, C-319

in strong-culture comPanies, 349

Tiffany & Company, C-85-C-86top-down guidance,3l9and type of organizational structure,

300-307Under Armour

distribution, C-50-C-51growth, C-46inventory management, C-52

marketing, promotion, and brand

management, c-47-c-50product design and development, C-58

product line, C-46-C-47sourcing, manufacturing, and quality

assurance, C-51-C-52in weak-culture comPanies, 349

Strategy-makingchoosing among alternatives, 3lCoach Inc., C-73

differentiation, C-79-C-80distribution options, C-80-C-82flexible 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, 3lEqual 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-181rivalry in tablet computers,

c-180-c-181Henkel AG, C-349-C-351impact of ethical standards, 262-263

importance of, 12-13

integrated tasks for, 20

and key success factors,T4-75

Mystic Monk Coffee, C-5

Netflixbases of, C-140

choice of mail delivery or streaming,

c-r43-c-144comprehensive fi lm librarY,

c-140-c-141easy-to-use software, C- 142-C- I 43

just-for-kids option, C- 141

new content acquisitions,

c-l4I-c-r42transition to Internet deiiverY,

c-144 c-145new moves lor diversified companies

broadening business base, 247

Page 48: crafting and executing strategy

l-46 Subject Index

Strategy-making- Conf .

divesting and retrenching, 247 -249oplions,245-246restructuring business

lineup,249-250sticking with business lineup, 246

in one-business company, 215on-the-scene managers in, 32

Panera Bread Company, C-97-C-I02Robin Hood, case, C-300-C-301role of CEOs,31role oftop executives, 31

7-Eleven Stores

early mistakes in Taiwan,

c-26r_c-263innovation, C-264-C-268localization, C-263 -C-264

Sift Cupcake and Dessert Bar, C-35,c-37-C-4I

Starbucks, C-305Tiffany & Company, C-85-C-86top-down process, 30

Under Armour in early years, C-43

Strategy-making hierarchybusinesslevel strategy, 33, 34corporate strategy, 32, 33

functional-area strategy, 33, 3 4

operating strategies, 33, 34

strategic plan, 35

uniting, 34-35Strategy management process

corrective adjustments, 36-37mission statement, 24-26performance evaluation, 36-37setting objective s, 27 -30strategic vision, 2 l-23strategy execution, 35-36strategy-making, 3 1-35

Strategy-supportive organizationalstructure,29l

Strategy-supportive resources andcapabilities, 29 1

Strength, 92; see also SWOT analysis

Stretch objectives, 28, 334

balanced scorecard for setting, 28, 29

financial,28strategic,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

Substitutes

competitive pressures from sellers of,56_58

factors affecting competition fromavailability and price, 57

quality and performance, 58

switching costs, 58

identifying, 58

and industry boundaries, 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 powercompetitive pressures from, 58-60erosion of profitability by, 58

factors determining strength ofavailability of substitutes, 60

and backward integration, 60

competitiveness of majorcustomers, 60

costs of items, 60

demand,59differentiation, 60

industry concentration, 60

switching costs, 60

and small-scale retailers, 58-59Supplier Code of Conduct,

Apple, Inc.,259Suppliers

to Chipotle Mexican Grill, C-119close location of, 126

coordination with, 132

for Costco Wholesale, C-19to Costco Wholesale, C-15international expansion, 180

and strength of rivalry, 5 1

and threat ofnew entrants, 56

in value chain, 101-i02, 105

Supply and demandand buyer bargaining power, 6land supplier bargaining power, 59

Supply chainimproving efficiency of, 124

Panera Bread Company, C-107-C I 10

Under Armour, C-51 C-52

Supply chain managementat 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-271at Starbucks

ethical sourcing, C-326-C-327fair trade practices, C-326

key elements, C-324pricing and purchasing,

c-325-C-326small farmer support program,

c-326-C.-327strategic fit in, 224-225

Support value chain activities, 98

general administration, 99

human resource management, 99

to identify cost structurecomponents, 101

research and development, 99

Sustainable business practicesr 275

California Wine industry,

c-395-C-399corporate social responsibility strategies

business case,279-28Icrafting, 277 -278moral case, 278 279

delrmtron. 2./5

environmentally sustainable strategies,

275-277philosophy at Frog's Leap Winery,

c-400-c-403Sustainable competitive advantage

capabilities and resources, 89

strategies for, 7-8tests for, 12

VRIN tests for, 90-91Sustainable responsible business, 272

Switching costs, 50, 54

and buyer bargaining power, 61

and customer loyalty, 13 Ifirst-mover advantage, 156

high or low for substitutes, 58

low, 128

and supplier bargaining power, 60

SWOT analysis

definition, 92

identifying internal strengths, 92-93identifying market opportunities, 94

identifiring threats toprofitability, 94-96

identifying weaknesses and competitivedeficiencies, 93-94

potential market opportunities, 95

potential strengths and competitive assets

95

potential threats to profitability, 95

potentlal weaknesses and competitivelrabrlrtres- 95

results of, 96-97steps involved in, 97

translated into actions, 96-97Symbolic culture changing actions

ceremonial events, 357

lead by example, 357

Synergies,2lTWalt Disney Company, C-278

Page 49: crafting and executing strategy

TI

Tablet computers, C- 192-C- 193

Google vs. Apple rivalry, C-180-C-181

Taiwan

convenience stores, C-259-C-26 1

franchising business models, C-260industrial growth, C-259-C-260main convenience competitors, C-26 1

property zoning, C-260

retail trade value, C-260

7-Eleven Stores in, C-261-C-272

Tangible assets

definition, 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-203Tax-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 Corporationdisruptive lnnovallon, C-232

leapfrog innovation, C -232

striving for, 131

Technological change, 134

Technological forces, 48

Technological improvement, 1 05

Technological resources, 87, 88

Technologyaccessed by mergers and

acquisitions, 1 60

gained by strategic alliances, 191

strategic fit in, 225

Telecommuting, C 344

TelevisionGooglet expansion into, C-168,

c-182-c,183Walt Disney Company in, C-278-C-280

Terrorist attack of200l, C-335

Textbook publishing, case

business modelacquisition editors, C-26

cost-intensive nature, C-27

sales reps, C-26-C-27competition

Ebook sa1es, C-28-C-30international editions, C-29

new editions, C-28-C-29rental textbooks, C-28

used book market, C-28

economy of Ebooks

agency vs. retail pricing, C-3I-C-32benefits, C-32challenge to print publishers, C-30

effect on retailers, C-30-C-31pricing 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,96sudden-death, 96

Time, C-334Times interest earned, 85

Time to market, 167

Today show, C-333

Top-down guidance,3l9Top-down objective setting, 30

Top-down process, 30

Top executives; see also CEOs

corporate parent ing by, 229

evaluation of leadership skills, 38

Henkel AGdiscussion 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 -328compared to other process management

tools, 327

as motivation, 360

Tradition-steeped companies, 347

Trainingcapable employees, 293-295

at Chipotle Mexican Grill, C-120

at Coach Inc., C-80

at lululemon Athletica, C'69at Procter & Gamble,294

at Starbucks, C'322-C-323strategic role of, 299

Subject 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-12Triple 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

UU-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 -26Icosts to companies, 269

damage to reputation, 268-269

Devilt Den, C-302-C-304

drlvers offaulty oversight, 264

profitability, 266 -268pursuit 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, l30types ol 131

Unitary structure, 304

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 l2steel imports 20Ll-202, C-243' C-244

Page 50: crafting and executing strategy

I-48 Subject Index

United States Alcohol Tobacco and TradeBureau, C-403-C-404

United States Bureau of Mines, C-388United States dollar

strength ofeuro versus, 187

weakening of, 186-187United States House Oversight Committee,

c-186United States International Trade

Commission, C-229United States Supreme Court, on interstate

commerce, C-405Universal ethical principles, 257

Unrelated businesses, 221

Unrelaled diversification, 2 I 7

acquiring and restrucluring companies.230

benefits of corporate parenting,229-230

better-offtest,228building shareholder value, 228-237combined with related

diversification, 233

conditions for financial results. 23 Ias conglomerates, 228

cost-of entry test, 228

criteria for acquisitions, 228cross-business allocation of

resources, 230

drawbacksdemands on management, 23I -232limited competitive advantage, 232

industry attractiveness test, 228

misguided reasons forgrowth,232managerial motives, 232-233risk reduction, 232

stabilization,232in multidivisional structure. 305-306parenting advantage, 231

parenting capabilitles, 228

profit growth requlrement, 228screening acquisitions, 228sharing generalized resources and

capabilities, 228-229Upscale attributes, 140

Used book market, blpassed by Ebooks,c32

V

Valuable resources, g0

Value

from differentiation strategies, 132-134for the money, 7-8signaling, 133

Value added, by corporate parenting, 229

Value-added products, Nucor Corporation,c-235-C-236

Value chaindefinition, 89

of distribution channels, 102

and economies ofscope, 226-227illustrated, 99

for KP Maclane, 100

profit margin component, 100

ofrival companies, 101

strategic fit alongcustomer service, 226

distribution-related, 226

manufacturing-r elated, 225

research and development, 225sales and marketrng, 225 -226supply chain act iv lties, 224-225technology activities, 22 5

ofsuppliers, l0t-102Value chain activities

adidas Groupoperations, C-57-C-58outsourcing, C-58research and development, C-58

advantageous location in foreign markets,183-184

Bayonne Packaging, Inc.operations, C-365-C-366quality control, C-360scheduling, C-366-C-368

benchmarking assessment, I 03

best practices across, 322B]'s Wholesale Club

marketing, C-25operations, C-25

as building blocks of structure, 303-304Chipotie Mexican Grill

advertising, C-12ibranding, C-121

marketing, C- 120-C-l2lCoach Inc.

distribution, C-81-C-82flexible outsourcing, C-79outsourcing, C-73

comparison among business units, 241

as competitive advantage, 106-108Costco Wholesale

advertising, C-13 C 14

distribution, C-15human resource management, C 18

supply chain management, C-15warehouse management, C-16

cost-efficient management, I23-I25,130-13I

and diversification, 215

Eastman Kodak, C-2I6-C-219Equal Exchange, C-154-C-156offorward channel allies, 106

Frog Leap Winerydistribution, C-400production, C-399

sustainability philosophy,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-339marketing, C-338

multiplant operations, C-333-C-334production, C-338-C-339research and development, C-342

to identify cost structurecomponents, l0l

in-house, 163

internally performed, 105

KP Maclane, 100

lululemon Athleticadistribution, C-68new product technologies, C-61outsourcing, C-68

product design, C-66-C-67product line, C-66

website strategy, C-64wholesale strategy, C-64

Netflix, C-144Nucor Corporation

human resource management,c-238-C-240

innovative technologies, C-220product line exp anslon, C-222-C-226

outsourcing vs. internal performance,300-302

Panera Bread Companyadvertising, C-106differentiation, C -97 -C -9 9

distribution, C-109-C- i l0franchise operations, C- 107-C- 1 08

primary,9S-99reasons for outsourcing of, 167

reengineering, 323

related to resources and capabilities, 107

risks in outsourcinghollowed out capabilities, 167 -168lack of direct control, 168

7-Eleven Inc.convenience store concept, C-257franchise operations, C-257 -C-258Taiwan operational innoval iorrs.

c-26r c-272Sift Cupcake and Dessert Bar

advertising, C-35-C-36human resource management,

c-36-C,37social media use, C-35-C-36

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Starbucks

corporate social responsibility strategy,c-328_C_329

customer relations, C_329_C_330human resource management,

c_321_C_324new market segments, C_316_C_319operations, C-327

revamping

in differentiation strategies, 132in low-cost provider strategies,

125-r27and vertical scope, 159

Value-conscious buyers, 140Value^creation, from organizational design,

303

Value disadvantages. options for remedying,104

Values

of companies, 25-26in strong culture companies, 34g_349

Value statement, 26Variables, on strategic group map, 69Vertical integrated firms, 162Vertical integration

advantages, 162-164backward to achieve greater

competitiveness, 163forward to enhance competitiveness,

163-164at American Apparel, 166cost advantages, 125disadvantages

capacity matching problem, 165increased business risk, 164less flexibility, 165not realizing economies ofscale, 165resources and capabilities, 165slow embrace of technological

advances, 165examples, 162

expansion from, 162full integration, I62partial integration, 162pros and cons, 165_166at Starbucks, C-320versus strategic alliances, 172tapered integration, 162

Vertical scope, 159V_ince Lombardi Super Bowl Trophy C-86V_isible costs of ethical wrong d,otng, 269Vision

at Henkel AG, C-350_C-351Starbucks, C-310Sustainable Winegrowing

Program, C-396Vision statemenl; see also Strategic vision

Coca-Cola Company, 23H. l. Heinz Com pany, 23Procter & Gamble, 23

Voice over Internet protocol, 65,216,225Volume buyers, l2gVRIN tests for sustainable competitive

advantage

inimitable resources, 90non-substitutable resources. 9 I

Subject Index

rare resources, g0

valuable resources, 90Vulnerability

signs of, 152

Wage cuts in jewelry industry, C-90\{all Street lournal, 260Warehouse management

Bf's Wholesale Club, C_25at Costco Wholesale, C_16

Warranties

as competitive weapon, 53Weak-culture companies, 349Weakness, 93; see also SWOT analysisWealth, obsession with, 264Website strategy, lululemon Athletica, C_64Wholesale distributors, Z4

by Under Armour, C_50Wholesale locations, Coach Inc.

international, C-g2United States, C-82

Wholesalers, blpassed in forwardintegration, 164

Wholesale sales strategy, lululemonAthietica, C_64

Wine industryCertified Napa Valley Green Land

program, C_39gconsumer demographics, C_394consumer segments, C_393_ C-395financial data, C_39:financial ratios, C-403Frogt Leap Winery in, C-3g2_C_404glossary of terms, C_404_C-405green consumers, C_395green wineries in 2011, C-397 _C_39gin Napa Valley, C 392_C_393organic wine, C_395price segment data, C 394sustainability in california,

c_39s_C_399sustainable practices, C_399-C-399

_ Sustainable Winegrowing program, C_396Women's athletic apparel

lululemon Athletica, C-59_C_71major competitor s, C-7 I _C_7 2specialty department stores, C_71_C_72

Women\ Wear Daity, C-74Work atmosphere, 332Work climate,320Work effort

perspective on structuring, 310_31 1

structuring,29lfor successful strategy execution

create distinctive competence, 301

l-49

purchasing strat egy, C_324_C_327store expansion, C-3 14_C_316supply chain management, C_312

for strategy exec fiion, 29l_2g2supplier-related, I05_ 106support, 9g_99Tata Motors

joint ventures, C_242_C_24gmarketing research, C_252

Under Armouradvertising, C_50

distribution, C-50_C_5 Iinventory management, C_52licensing agreements, C-47outsourcing production, C_5 I _C_52product line, C_45_C-47sports marketing, C_ 47 _C_4g

varying by industry, 101Walt Disney Company

operations, C_290_C_284related diversific ation, C _27 6_C_283

Value chain analysiscustomer value proposition, 9g- 100to identify cost disadvantages, 104to identify value disadvantages, 104primary purposes, 101

_ to uncover competitive advantage, 106Value chain management

attention to cost drivers, 123,124buyer bargaining power, 125economies ofscale, 123employee motivation, i25full-capacity operations, I 24information technology, 125learning curve effects, 124lower-cost inputs, 125outsourcing,125supply chain efficiency, 124vertical integration, 125at Walmart, 127

Value chain match up, 223Value chain revamping

bypassing distrib utors, 125 _ 126at Nucor Steel, 126reduce shipping costs, 126reducing materials handling, I26at Southwest Airlines, 1 26_ 127streamlining operations, I 26

Value chain systemdescription, l0I-102

Page 52: crafting and executing strategy

I-50 Subject Index

Work effort-Cont.flatten out organ ization, 301_302partnerships, 302

Work environme nt, 27 2, 33 2and corporate culture, 344at Costco Wholesa.le, C_17at Starbucks, C_320, C_322

Worker-owned co_operative, C_ I49, C_ I S4Workforce

diversity of,272oflocal companies in developing

countries, 207_209Workforce rerention, 27 9 _ 2g0Working capital,84

Working conditions, unsatisfactory, C- 153Work teams, Herman Miller Inc., C_337World economy, 179World Series Trophv, C_86World Trade Organization, ZOIWorry list of problems, l l l

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