Download - 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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
,&
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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