Crafting and Executing Strategy

Chapter I
page6: @ David PaulMorris/Bloombergvia Geffylmages; page 11: @ PRNEWSWIRE / AP

Chapter 2
page 26: @ 2010, Zappos.com, Inc.; page 30:
|oe
Raedle/Getty Images; page 39: @
|ason
Reed/Reuters/Corbis;
Jay
Mallin/Bloomberg via Getty Images
Chapter 3
page 73: @ Bloomberg via Getty Images; @ Bloomberg via Getty Images
Chapter 4
page 100: @ KP Maclane/Brian Woodcock
Chapter 5
page 127: @ Bloomberg via Getty Images; page 137l. @ Willie Davis/Aravind Eye Founda-
tion; page 138: @ Martin KlimeVZUMApress.com
Chapter 6
page 153: @ PRNewsFoto/Gilt Groupe/AP; page 157: @ Amazon.com; page 161
@ Bloomberg via Getty Images; page 166: @ American Apparel
ChapterT
page 192: @ Bloomberg via Getty Images; page 205: @
Julie
Dermansky/fulie Dermansky/
Corbis; page 208: @ Bloomberg via Getty Images
Chapter 8
page 248: @ AP Photo/Mike Derer; page 250: @ Bloomberg via Getty Images
Chapter 9
page 259 @ Bloomberg via Getty Images; page 267 @ PRNewsFoto/Novo Nordisk/AP;
page 273: @ Bloomberg via Getty Images
Chapter l0
page294: @ Proctor and Gamble; page298: @ Toyota; page 303 @ Apple Inc.
Chapter ll
page 326: @ Paulo Fridman/Corbis; page 333: @ Bloomberg via Getty Images; page 336l.
@ Bloomberg via Getty Images
Chapter 12
page 345: @ PRNewsFotoiW L. Gore & Associates/AP
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-282
Abercrombie & 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-58
outsourced production, C-58
research and development, C 58
sponsorships, C-58
Adobe, C-182
Advent International Corporation, C-60
AerLingus,151
Aerospatiale, 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-150
AIG.362
Airbus, 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 5i
Amazon 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,247
AMC 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,358
employee motivation, 333
Anaheim Angels,254, C 275
Anheuser-Busch, 61, 7 0, I23
Animal Compassion Foundation, 278
Animal Planet, 136
Ann Taylor Stores, 29
Ansteel, C-241
AOL Time Warner, 37
Aplen, C-50
Applebeet, 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-219
App Store, C-181
failure to enforce supplier code of
conduct,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-195
challenges facing, C- 187
competition in smartPhone
market, C-187
competitive
Position
personal 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-r93
financial performance 2007 20II'
c-189
financial 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 industrY
DellInc,C-193-C 194
Hewlett-Packard, C- 193
sales, C-187
sales by operating segment, C-i90
smartphone 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-32
Apple iTextbooks, C-30
Apple iTunes, C-132, C-133,
c-194-c 195,c-3r7
Applied 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-206
Arla Foods, C-3I6
Armani, 199
Army and Air Force Exchange
Service, C-50
Artesa, C-397
Ashworth,C 53,C 71
Asia Pacific Group, C-61
Asics,C15,C53
ASU5, nrarket .hrre in PC.. C- lql
Atex, C-212
Athleta, C-71
Atlanta Bread Companl', C-99
clata on, C-100
Atlantic Rural Exposition, C-203
Atlee Landscaping, C-205
AI&T,216, c-132
AT&T Mobility, C 195
AT&T U-verse, C 134
Au Bon Pain, C 97, C'99
data 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
R
L,J
BackRub, C-169
Baidu, C-179
Baja Fresh, C-123
B&Q,272
Bank of America, 160, ).62, 220, 264
Bank of America/Merrill Lynch, C-77
Baosteel, C-241
Barker Steel Company, C-20
Barnes & Noble, C-20, C-26, C-31
Baseball Factory, C-49
BASR 41, 124
Bass Pro Shops, C-50
Bath &BodyWorks, 164
Bayonne Packaging, Inc., case
company history, C,359-C-360
equipment, C-364
income statement, C-361
management by walking around, C-359,
c-360-c-368
order flow, C-364
quality control problems, C-360
revenue recognition, C-360
sales management problems, C-362-C-365
scheduling, C-366 C-368
setup and run tim e, C,362
value of shipments, C-363
BBC Worldwide, C 130
Beaird-Poulan, 225
Beam Inc.,229
Beaulieu, C 397
Bebe Stores, C 72
Bell helicopters, 229
Ben &
|erry's,
279, C-377
Benchmarking Exchange, 103
Benchnet, 103
Beringer Vineyards, C 397
Beringer Wine Estates, C 399
Berkshire Hathaway, 3, 23 I
Bernard 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-132
Best Practices, LLC, 103
Bethlehem Steel Corporation, C 228
Bic, 128
Birmingham Steel Corporation, C 228
BJ's Wholesale Club, C-20, C-317
description, C-23
differentiating features, C-23-C-24
financial data, C 24
marketing and promotion, C-25
membership, C-24-C-25
operations, C-25
product offerings, C-23
Black & Decker, 225
Blockbuster, C-132, C-135
Blockbuster Express, C- 132
Blockbuster@Home, C- 135
Blockbuster Online, C-133
Bloomingdalet, C-74
Bloomingfoods Coop, C- 150
Blue Coral Seafood Spirits, 253
Blue Nile, Inc., C-88
description, C-93
BMW AG, 7 ,2s, 130, 14t, 146, t80,276
Body Shop, 279
Boeing Company,301
Boeschen Vineyar ds, C-397
Bogner, C-53
Bombardier, 225
Bonefish Gr1lI,252
Bosch, 130
Boston Beer Company, 7 0, 1 62
Boston Consulting Group, 293
Boston Marathon, C-58
Bouchaine Vineyards, C-397
Bowman Companies, C-202
Brattleboro Food Co-op, C-150
Briggs & Stratton, 128
Bright House Networks, 169
Brinker International, C- 100
Bristol-Myers Squibb, horizontal acquisition
strategy,161
British Airways, 151, 328
British Petroleum, 330, 362
British Steel, C-228
British Telecommunications, 216, 27 I
Broadcom, 300-301
Brother International, C-2 I 8
Bruegger's, data on, C-100
BTR,243 244
Bugati, 133
Buick,305
Bulgari, C-86
description, C-92-C-93
Burberry, 199, C-77
Burger King, 301, C-97, C-318
Burghy,220
Burtt Bees,272
corporate social responsibility, 273
Business for Innovative Climate and Energy
Policy coalition, C-328
Business Roundtable, 270
Butter Lane Bakery, C-33
BYD,170
r
Cabela's, C-50
Cadbury, 250, C-290, C, 292
CADE Winery, C-397
Cadillac, 141,305
Cain Vineyard and Winery, C 397
Cakebread Cellars, C-397
California Association of Wine Growers,
c-396
Cahfornia Pizza Kitchen, C-99, C-290
data on, C-100
California Sustainable Winegrowing
Alliance, C-396, C-397, C-399
California Tortill a, C - 123
Callaway Golf Company, 89
Calphalon,230
Calvin Klein, C-Iz, C-77
Campbell Soup Company, 130, C-15
Canada and North American Foodservice,
c-290, c-297, C-294
Cannon Gun Safes, C-15
Canon, 202, 297, C-15, C-273, C-218
Capital One,325
Caracol, C-130
Carlson's Restaurants, C- 102
Carrabbat Italian Grill, 252
Carrefour, I07, C-260
Carrier,253
Cartier, i36, 799, C-77, C-86, C-93, C-94
Carvel Ice Cream, C-124
Casio, C-15
Castrol, 193
Caterpillar, 29
CBC Steel Buildings, C-224
CBS Television, C-130
Cerberus Capital Management, 357
Cessna,229
CGA, Inc., 136
Champion, C-53
Chanel, 7, 71, C-78
Charels Schwab, 130
Charter, C-132, C-134
Chateau Boswell Winery, C-397
Chateau Montelena, C-397
Chateau Ste. Michelle, C-399
Chattaronga Safaris, C-379-C-380
Cheeseburger in Paradise, 253
Chery Automotive Company, Ltd., C-254
Chevrolet, 305, C-253
Chevron,30l
Cheq. Volt, 280
Chick-Fil-A,278
Chicot, 164
Children's Hospital, C-19
Chili's Bar and Grill, C-99
dataon,C 100
Chipotle Mexican Grill, C-99
data on, C-100
Chipotle Mexican Grill, case
acquired by McDonald's, C-l l5
advertising, C-120-C-12I
brand awareness, C-121
branding, C-l2I
companyhistory, C-l14 C l15
compensation, C-120
competition for
Moe's Southwest Grlll, C-124
Qdoba
Mexican Grll, C-124-C-125
Taco Bell, C-123-C-124
corporate culture, C-120
customer loyalty program, C- 121
divested by McDonald's, C- I 15
financial performance, C- I 1 5-C- 1 l6
growth since 1993, C-ll4
hiring practices, C-120
initial public offering, C- I l4
management, c- I 19-C- 120
marketing, C - 120
-
C - l2L
operations, C-l l6-C-1 i9
outlet development and construction
costs, C-122-C-123
promotion, C-121
quality assurance, C-l 19
revenue growth 2007-201I, C-l15
revenues, C-114
ShopHouse Southeast Asia Kitchen
concept, c-II4,c-123
site selection, C-l2l-C-122
stock price performance, C-1 14
strategy elements, C-l 14
Chocklett Press, C-205
Chrome, C-182
Chrysler Group LLC, I 16, 187, 357
culture change, 358
Chunghwa Telecom, C-266
Ciba Vision, 325-326
Cinemax, C-133, C-135
Cinnabon, C-15,C-I24
Circuit City, C-20
Cisco Systems, 160, 168, 173,294-295,
c-332
Citigroup, 243,264
Citizen Holdings Company, 223
Classic Sports Network, 254
Clear Channel Communications, 169-170
Clearwide, 169
Clorox Company, 273
Clos Du Vaal, C-397
Clos Pegasse, C-397
CNN, I33
Coach China, C-82
Coach Inc., 167, C-12
Coach Inc., case
acquisition by Sara Lee, C-74
aggressive competition for, C-73
balance sheet, C-7 5-C-7 6
company history, C-74
differentiation st r ate gy, C -7 9
-
C - 80
financial data by channels ofdistribution,
c-81
flexible outsourcing, C-79
general and administrative expenses, C-82
industry position, C-79
in luxury goods industry, C-7 -C-78
marketing research, C-7 4
net revenue, C-73
number ofretail stores, C-73
outsourced manufacturing, C-73
outsourcing agreements, C-74
pricing strategy, C-74
product line, C-79
retail distribution
in China, C-82
factory outlets, C-81
full-price stores, C-80-C-81
by geographic region, C-81
in
)apan, C-81-C82
sales growth, C-73
sales growth and earnings 2012, C-74
stock price performance, C-74, C-76
strategic options in 2012, C-82-C-83
strategic priorities
build market share, C-73
e-commerce, C-73
raise brand awareness, C-73
target men as customers, C-73
strategy against rivals, c-73
turnaround plan, C-74
wholesale locations, C-82
Coach
|apan,
C-81-C-82
Cobra Go1f, 89
Coca-Cola Company,3,25, 87, l3l, 132,
t60,272,280, c-rs
strategic 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
-248
Conference Board, C- 153
Connecticut Steel Corporation, C-20
Conservation International's Center for
Environmental Leadership, C-323
CONSTANT, C-397
Continental Airlines, 336
Converse, C-53
Coors,61
Corner Bakery Cafe, C-99
data on, C-100
Corning,223
Corporate Knights,260
Corus Steel, C-228
Costco Companies inc., C 7
Costco Wholesale, 138, 145, C-3f 7, C-3f 8
diamond sales, C-94, C-95
jewelry products, C-94
sales in 201 1, C-94
Costco Wholesale, case
advertising, C-13-C-14
annual sales, C-6-C-7
Company Index
balance sheet 2006-201 1, C-8
business model, C-9
code ofethics
compliance with laws, C-18-C-19
respect suppliers, C- l9
reward shareholders, C- 19
take care ofemployees, C-19
take care of members, C-19
competition
bases of, C-20
Blt Wholesale Club, C-23-C-25
Sam's C1ub, C-20-C-23
core values, C-18-C-19
distribution, C-15
employee compensation, C- l6-C- l7
environmental sustainabiliry C-20
executive compensation, C- I 8
geographic operating data, C-14
income statemenr 2006-20Il, C-8-C-9
low-cost leadership strategy
for growth, C-12-C-I3
pricing 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-7
marketing by, C-13-C-14
market position, C-6
membership base and demographics,
c-1s-c-16
mission statement, C-9
number of warehouses worldwide, C-6
recruitment and hiring, C-18
sales by product category, C- I I
size of membership, C-6
store layout and size, C-12
suppliers, C-15
supply chain management, C-15
warehouse n'ranagement, C- 16
warehouses and contents, C- I 1
website sales, C-14-C- l5
workforce practices, C- l7
Countr)"wide Financial, 354
Courtyard by Marriott, 139
Courvoisier,229
Cox, C-132
Cracker Barrel, C-99
data on, C-100
Craftsman, C-15
Cray,297
C-Spire, C-195
Ctrip, 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
tl
IJ
Daewoo Commercial Vehicle Company,
Ltd., C-247
Daimler AG, 29, 1.68, 170,26t
Daimler Benz AG,C-247
DaimlerChrysler, I 68, C-247
David
l. foseph Company, C-235
David Yurman, C-88
Davis Food Co-op, C-150
Deans Beans, C-163
De Beers Group, 162,220
Deepwater Horizon,362
Deer Park Refinery, 168
DEFEXPO -India,C-247
Dell Inc., 42, 106, 125, 132,205-206,209,
224-225, 293_294, 301, C_ 15,
c-187, c-r92
rivalry with Apple in PCs, C-193-C 19,1
Descente, C-53
Deutsche Bank, C-203, C-204
Devilt Den, case, C-302-C-304
employee problems, C-302 C-303
management problems, C-303
unethicai behavior, C-302-C-30,1
DHL Worldwide, 329
Dickt Sporting Goods, C-43, C-50
Diebold, Inc,265-266
Digital Equipment, C-346
DineEquity, C 100
DIRECTV C.132
Discover card, C-25
DISH Network, C-132, C-134, C-135,
c-168, C-182
Disney Brothers Studio, C 274
Disney California Adventure Park, C-275,
c-278, C-281
Disney Channel,254, C-275, C-278, C-280
Disney Cruise Line, 253, C-273, C-275,
c-280, C-281
Disney Interactive, C-27 5
Disneyland, C-281
Disneyland Paris, 196, C-275, C 2BI
Disneyland Resort, California, C-280
Disney-MGM Studios, C-275
Disney Publishin g, C-275
Disney Radio, 254
Disneyt Castaway Cay, C-281
Disney Store, 254
Disney Studios, C 274
Disney Vacation Club, C-280, C-281
Dll Mill and Industrial Services, C-235
DJJ Rail Services, C-235
DKNY, C-77
Dolce & Gabbana, C-73, C-74, C-77, C-78
Dollar General, 106, 305, C-20
Dome Corporation, C-50
Dominot Pizza,l39
Dom Perignon, C-12
DoubleClick, C 179
Dowdy & Associates, C-202
DRB-HICOM's Defense Technologies, C-247
Dream Works Animation, 293
Dreyer's Grand Ice Cream, partnership with
Starbucks, C-316-C-317
Ducati Motorcycles, 132, 164, 182, 310
Duckhorn Vineyards, C 400
Duckhorn Wine s, C-397
Duferco Group, C 233
Duferdofin-Nuc or, C-233
Dumukwa, C-380
Dunbar Armored, C-205
Dunkin Brands, 325
Dunkin Donuts, C-3
r
t-_
E. &
J. Gallo Winery, 300
Eastbay, C-53
Eastern Bank, C-i60
Eastman Chemical, C-21 i
Eastman Dry Plate and Film Company,
c,212
Eastman Kodak,353
Eastman Kodak, case
balance sheet, C-215
bankruptcy filin g in2012, C-211,
c-2r4-c,2r6
business-level strategy
commercial segment, C-217
-C-2I8
cousumer segment, C 218-C-219
business model, C-218-C-2 1 9
business units, C-2I7
cash flow problems, C-21i
company history, C-212-C 211
competition in inkjet printers, C-21 1
earnings before interest and taxes, C-216
financial condition in 2012. C-2II-C-212
financial performance 2012, C-2I9
lack of success in digital cameras,
C-211-C 213
management changes, C-21 3-C -274
net sales by business unit, C-215-C-216
number ofpatents held by, C-2 19
operations in2012, C-216 C-2I9
organizational structure, C-2 I 7
reorganization plan, C-216-C-217
revenue decline 2009 20f1,C-219
spinoff of Eastman Chemical, C-21I
statement of operations 2007-2011, C-24
EasyCard Corporation, C-266
eBay, 153, C-88
EBSCO, 17s, 176
EDS,208
Edward
fones, 293,360
Einstein Bros. Bagels, data on, C-101
Einstein Noah Restaurant Group, C-101
Electronic Arts, 88, 197
Elevation, LLC, C-205
Emerson EIectric,225
Enagas S. A., 276
Energy Star, C-20
Enron Corporation,3T
, 266-268, 354
Epson, l0
Equal Exchange, case
balance sheet, C-159, C-165
business model, C-154
capital flow, C-160
circumventing 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-148
in fair trade industry, C-160-C-163
in financial crisis of2008, C-148
financlal performance, C- I 56-C- 1 58
hiring policy, C-154
income statement, C-158, C-164
increased competition, C- 148
investment in, C-158-C-160
low employee turnover, C- 1 54
management, C- 150-C- 151
marketing strategy, C- 1 54-C- I 56
advertrsrng, L 155
fundraising, C-156
interfaith program, C- 156
product variety, C-156
mission, C 151
problems to deal with
exploitation of farmers, C- 151-C- 153
lack ofconsumer awareness, C-153
working conditions in U.S., C-153
rapid expansion in 1990s, C-149
sales by state, C-157
sales growth 2006-2010, C-I57
strategy-making for the future,
c 164-C-166
timeline, C-145
worker-owned co-operative,
c-t 49-c-ts4
Ernst & Young, 278
ESPN, 2s4, C,27 5, C-279, C-280
ESPN2,254
Estabrook Farm, C-151
Est6e Lauder, C-78, C-79
Ethical Tea Partnership, C 323
Ethicsphere,267
Ethos Water Fund, C-329
Etude, C-397
Evolution Fresh, Inc., C,320
Evraz, C-24I
Exelon Corporation, 313
Expedia, Lnc.,247
Extreme Clean U.S.A., Inc., C-205
ErronMobil. 150
r
r
Facebook,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-267
Fair Trade International, C 323
Fair Trade Labeling Organization
International, 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, 38-40
Far East Tone, C-266
Fauquier Bankshares, C-202
Fazoli's, data on, C 101
Federal Express, 7
-8,
107, 154, 328, 329, 347
Fed Mart, C-7
Fendi,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-53
Finish Line, C-50
Firefox, C-182
Firehouse Subs, data on, C-101
First Colony Coffee, C-4
First Division Rugby, C-51
First XV C-50
Fisher&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-50
Ford 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-397
Freddie 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-404
distribution channels, C-400
environmental management
system, C-392
evolution of, C-393
financial ratios, C-403
managers and employees, C-399-C-400
production in 2011, C-399
sales growth, C-400
strategy-making, C-404
sustainability philosophy, C-400-C-403
biodynamic growing technique:.
c-400-c-401
dry farming, C-400
energy self-sufficiency, C-40 1
year-round employment, C-40 1
sustainable growth, C-404
vineyard acquisitions, C-400
Fuddruckers, data on, C-101
Fuji, C-15
Fujifilm, C 2Il, C-212, C-2I3
Fujitsu, 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 6l
General 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-253
Gerdau, 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,305
Godiva Chocolates, 136
Golden Gate Capital, C-100
Goldman Sachs, 293, 362
Good Humor, C-317
Goody,230
Goodyear 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-332
Apple's concerns in 2012, C I97
mission statement,24
Nexus tablet computer, C-193
Google Inc., case
acquisition of Motorola Mobility, C-168
AdWords, C-175-C-178
alliances for Google TV, C-168
business 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-170
features offered by, C
-I72-C-175
financial performance, C- 176
initial public offering by Dutch auction,
c-r69 C-r7r
Internet rivals
Microsoft, C- 183-C- 184
Yahool, C-i84 C-185
market position in 2012, C-168
market share
browser market, C-182
search 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 I72
strategy-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 I
Google TV, C-168, C-182
Graniterock, 360
Green Mountain Coffee Roasters, 277, C 4,
c-318, c-319, c-320
Greenpeace, 24
Greg Norman, C-53
Grey Goose Vodka, 107
I-5
t-6 Companv Index
Greyhound Lines, 106
Groupe Danone, C-290
Groupon,352
Gucci, 130, C-74,C 77
Guggenheim Museum, NY, 131
Gulf States Manufactuers, C-224
GW Sound, C-205
il
H.
I.
Heinz Company, 61
HALL,C-397
Hallmark,329
Hallmark Chann eL, C -282
Hamilton Sunstrand, 253
Handy Dan Home Improvement, 151
Hannover 96 football club, C-49
Hanson Trust, 230
Harley-Davidson, Inc., 106, 164
Harris Corporation, 318
Harris Poll EquiTrend, C-96
Harris Rebar, C-20
Harris Steel, C-224, C-230, C-237
Harry Winston, C-88
Hartmann, C-15
Hathawayshirts, C-12
Hautelook, 153
Haworth, C-344
HBO, C-132, C-133, C-134, C-135, C-136,
c-t45, c-282
HdV Wines-Hyde de Villaine, C-397
Heitz Wine Cellars, C-397
Helly Hansen, C-53
Hengdeli Holdings, C-93
Henkel AG, case
acquisition ofNational Starch and
Chemical Co.,C-349
bonus compensation
group performance, C-353
individual performance, C-354
payout, C-354
team performan ce, C-353
brands, C-346
busincss segments, C-346
competitors, C-347
core values, C-350 C 351
corporate culture, C-351
dives{ment ol underperforming
brands, C-349
effect offinancial crisis, C-348
employee retention, C-345
executive discussion of strategy
development ofvalues, C-354-C 355
effect of performance management,
c-35s-C-358
long-term targets, C-354
financial goals, C-346-C-349
-2010, C-347
management, C-3 5
-C-346
performance management, C 35 I
-C-353
development roundtable, C -3 52
-C
-3 53
evaluation grid, C-352
frame of orientation, C,353
plant closings, C-349
-C-350
product line, C 348
sales increase 2012, C-358
strategy-making, C-349
vision and values workshop, C-350-C-35I
vision statement, C-350
Herman Miller Inc., case
accessories team, C-342 C-344
balance sheet, C-341-C-342
board of directors, C-336-C-337
charitable contributions, C-337
company history, C-332-C 334
competitors, C-344
cooperative advertising, C 338
core values, C-335- C-336
corporate social responsibiliry C-335
cross-functional teams, C-337
and economic crisis of2000-2002, C-335
employee relations
employees as shareholders, C-334
employee stock ownership plan,
c-334-c-335
empowerment, C-337
fringe benefits, C-340
promotion from within, C-340
retirement plans, C 340
Scanlon Plan, C-333
social contract, C-335
stock purchase plan, C-340
environmental advocacy, C-336
environmentally friendly design, C-339
environmental stewardship, C-334
fi nancial manage nent, C -3 40
-C
- 3 42
in Great Depression, C-332
-C-
333
green marketing, C-338
growth prospects, C-344
human resource management,
c 339,C-340
initial public olfering, C-333
international expansion, C-333
lean manufacturing, C-338-C-339
management, c-336-C-337
marketing, C-338
multiplant operations, C-333-C-334
in office equipment industry, C-344
product design, C-333
production, C-338-C-339
in recession of 2008-2009, C-335
recycling progra m, C - 337
research and deveiopment by, C-342
statement of operations, C-343
transparency, C-336
work teams, C-337
Hermes, C-74,C-77
Hess Collection Winery, C-397
Hewlett-Packard, 10, 27, 167, 209, 261, 303,
32t, C-t5,C-182, C-187, C-t92, C-21t.
c-273, C-2t8, C-346
net revenue 2007-2011, C-193
rivalry with Apple in PCs, C 193
Hibbett Sporting Goods, C 50
Hi-c, 160
Highland Capital Partners, C-60
Hi-Life, C-261, C-267
Hilton Garden Inns, C-338
Hilton Hotels Corporation,29,42. 189, C-316
Himaraya, C-50
Hindalco,209
Hipo Carrocera SA,, C-247
Hirschler Fleischer, C 202
History Channel, 136
HNI Corporation, C-344
Hockey Canada, C-49
Hollinger International, 354
Holll'wood Video, C- 135
Home Depot, 25, 6I, 125,130, 151,
206,272, C-20
Honda Motors,28, 55, 116, 130, 141, 156,
t79,200,202,297,31.8
Honeywell Corporation, 325
Hong Kong Disneyland, C-275, C-278,C-281
Honig Vineyard and Winery, C-397
Horizon Airlines, C-3 16
Hour Glass Ltd., C-93
HSBC,243
HTC, C-i68, C-18t, C-r97, C-2rr,
c-2I6,C-2t9
smartphone market share, C-196
Hugo Boss, 30I, C-78
Hulu.com, 169-170, C-132, C-133, C-143
Hulu Plus, C 135
Hurley, C-15
Hyatt Hotels, C-316
Hyundai, C-250
Hlundai Engineering & Construction
Co.,Ltd.,276
Hyundai Heary Industries, 3
Hyundai Motors, 7-8
i
i
IAC/InterActive Corp, 247
IBM, 167,209, 353, C-188
Ideli, 153
IHS Screen Digest Research, C 134
IKEA,3, 107,283
Il Giornale Coffee Company
acquisition of Starbucks, C-3 10
founding of, C-309
Inbev,70
Industrial Designers Society of Am ericu C-334
Infosys Technologies, 208
ING Insurance, 301
Integrated Metals Technology, C-339
Intel Corporation, 58, 169, 352, C-168, C-182
Interfaith Program, C-156
International Brotherhood of Teamsters, C-16
International Coffee and Tea, 247
International Coffee Partnership, C-316
International Paper Company, 163, C-365
Internet Explorer, C-I82
Itausa-Investimentos Itau S/A, 276
ITEC Steel Inc., C-228
ITT Corporation,254
Iwerks-Disney Commercial Artisls, C-27 4
Izod, C-53
I
J
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-99
data on, C-101
lericho
Canyon Vineyards, C-397
fetBlue
Airways, 328, C-344
IFE,C-24r
liangsu
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,204
Kentucky 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-15
Klean Steel, C-228
KLM Royal Dutch Airlines, 191
Kmart, 305
Kodak,25, C-15
Kohlt, C-20
Koninklijke DSM N.V., 276
Koninklijke Philips Electronics N.V., 276
KP Maclane, 116
value chain, 100
KP Sports, C-43, C-44
Kraft Cheese Company, C-289
Kraft 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
brands, C-287
business segments, C -29 I
-
C -292
Developing Markets, C-294
Errope,C-294
-2071,
c-288 c-289
financial performance 2012, C-299
income statement, C-297 -C-298
North America, C-293-C-294
restructuring in 2072, C-296-C-297
revenues by product category, C-296
revenues in 2011, C-287
corporate strategy
acquisitions, C-290
business 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-294
Kraft Foods Europe, C-297-C-292, C-294
Kraft Foods North America, C-291,
c-293-C-294
Kroger,61, 727,C-318
Kruger 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-383
sales transactions, C-371
self-funding problem, C-369
services, C-372
Krupp Brothers, C-397
KT Corporation,2T6
Kwa Zulu Natal Wildlife, C-371
I
L
L. L. Bean,63
Lacoste, C-53
Ladera Vineyards, C-397
Lafayette Tent & Awning Company, C-205
Lmbertson Truck, C-86
L&M Farms, C-202
Land Rover, C-246, C-247 , C-252,
c-253-c-254, C-2s5
Larkmead Vineyards, C-397
Laugh-O-Grams, C-274
Laurel Steel, C-20
Leadership 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-2t0
Lenovo, 209, C-182, C-194
Lenovo/IBM, market share in PCs, C-191
Lenox,230
LensCrafters,360
Levelor,230
Levi 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-60
Lincoln automobiles, 141
Lincoln Electric Company, 91, 358
Linkedln, 352,C-35
Lionsgate, C-130
Lipton Tea, 277, C-3I7
Liz Claiborne, tnc., 364
LMP Steel & Wire CompanY, C-20
Logitech, C-168,C-L82
Long
|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.,276
Loughridge 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-332
lululemon Athetica, c-53, C-60 Marchon Eyewear,rnc.,C-79 agreement with
yahoo,
c-185
lululemon 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-184
in Canada and Australia, C-60 Markham Vineyards, C-397 Microsoft Exchange, C-195
community based marketing, c-68 Marmot, c-53 x'Iicrosoft Xbox, c-137
company history, C-59-C 60 Marriott Host International, C-314 Miljo Grenland/Innovasjon, C-247
competitors, c-7r-c-72 Marriott International, r39,278,360, c-93 Millercoors, 70
core values, c-69-c-7r Marriott Residence Inns, 139 Millstone, c-4
corporate culture, c-69-c-71 Marsh, c-205 Nlilwaukee Bucks, c-49
as cult phenomenon, C-60 Marshall Sons, C-247 Mintel, C-33
distribution facilities, c-68 Marsh & Mclennan, 354 Nlinute Maid, 160
equity investors, C-60 Maruti, C-250, C-253 Nlirama-r Films, C 275
financial performance, C-61 C-62 Maruti-Suzuki, 204 Mitsubishi Corporation, 202, C-234
franchising by, c-63 Marvel comics, 222 Mitsui & company, Lrd,., c 233
growth 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,50
broaden appeal of products, C-6 1 Mary Kay Cosmetics, 133, 357 , 361 Moen,229
international expansion, C 61 business ethics,73 Moet Southwest Grill, C-123
nerv product technologies, C-61 Maserati, 182 data on, C 101
new 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-297
manufacturers'code ofconduct, C-68 in coal industry, C-386 Mondragon co-operatives, C 154
mission, C-62 critics of, C-386 Monk Coffee Affiliate Program, C-5
net revenues 2012, C-59 and government regulation, C-388 Monro Muffler Brake, C-23
number of employees, C-69 mine disaster, C-385-C-391 Morgan Keegan & Company, C-205
product design and development, number ofemployees, C-385 Morgan Keegan Financial Products, Inc.,
C 66-C-67 revenue in 2009, C-385 C-203, C-204
prodr.rct line, C-66 MasterCard, 42, C-25 Motel 6, 136
retail distribution, C-63-C-64 Mayo Clinic, 24 Motor Development International, C-247
sales growth, C 59 McAfee,8 Motorola,207, 303,325, c-188, c-197, c-213
stock price performance, C-59 McAlister's Deli, data on, C 101 Motorola Mobility, C,168, C-i81, C 187,C-197
store expansion strategy, C-63-C-64 McDonaldt, 3, 5, 7, 10, 14, 25, i80, 189, 196, Motto Kryla Fisher, C-405
store 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-135
store openings 2010 2011, C-59 C-267, C-320 Mumm Napa, C 398
store personnel, C 69 strategy, 6 Museum of Modern Art, NY, C-333, C-334
surging 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-3
wholesale 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-5
Luxottica, C-79, C-86 Meadow Farm, C,203, C-205 operations, C-4
Luxury Institute, C 81 Merc Co-op, C 150 production, C-4
LVMH, 192, 220, C-78 Mercedes-Benz, 7, 130, 14l,261,293 profit margin, C-5
acquisition ofBulgari, C-93 Merck, 325 strategic vision, C-5
Mercy Corps, C-323 target market, C-4
t\ I
Merrill Lynch, 220 website operations, C 5
lrrl
Merrl'vale Vineyards, C-397
MGM. C I3O
Macyt, Inc., 63, C-95 MG Rover, C-247
N
Magnatrax Corporatron, C 20 Michael Kors, C-73
Magnolia Bakery, C-33 Michelin, 130, 180, C 15 Nabisco, C 289,C-294
Mahindra & 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-86
National Association for the Specialty Food
Trade, C-34
National Basketball Association. 197, C-49,
c-s8
National Communication Commission,
Taiwan, C-266
National 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-125
National Semiconductor, C- 188
National Starch and Chemical
Company, C-349
National Tyre Services, 244
National Wildlife Federation, C-334
Nation's Restaurant News, C-124
Nationwide Golf Car, Inc., C-205
NBA-Development League, C-58
NBC network, C-1,34, C-220, C-333
NBCUniversal, C-275
NBCUniversal International Television,
c-130, c-133
NCR Corporation, C-135
NDP Group, C-125
NEC,2O2
Neiman Marcus, 70
Nelson Steel, Inc., C-20
Nestl6, 180, C-75, C-290
Nestld Waters, C-34
Netflix, 25, C-168, C-182
Netflix, case
advertising, C-144
business model, C- 137-C- 139
cost ofstreaming content, C-141
effect on movie industry, C'136-C-137
effects of strategy change
break with SIarz, C-127
-C
I28
need 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 to
library, C-142
increase in subscribers 2010-20II, C I27
industry 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-144
new capital raised, C 130
performance prospects 20 12,
c-r46- C-r47
revenue increase 2010-2011, C-127
statement of operations 2000-2011, C-131
stock price performance, C- 127
strategy-making
comprehensive 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-t44
new content acquisitions, C-i41
transition to Internet delivery,
c-t44-C-145
strategy 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-operative
Organization, C-149, C-i50, C-151
NewMarket Corporation, C-202
News Corporation, 160, 163, C-133
New York Times Company, 15
NeXT, C-188
Nike, Inc., 24, 89, 167, 20I, 27 )., 279, 301.,
c-42, C-43, C-52, C-58, C-s9, C-61,
c-71
description, C- 53-C-54
event sponsorships, C-71
manufacturing, C-56
marketing, C-54
principal 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-137
Nippon Steel, C-241
Nissan Motor Company, 98, 357, C-253
Nokia, 207, C-I68, C-I97
Noodles & Company, C-101
Nordstrom, 87, 107, I30, 153, 321, 344,
347-348,358, c 71
objectives,30
Nordstrom 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,216
Nuclear 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
competition
ArcelorMittal U S A, C-244-C-245
foreign 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-220
low-cost leadership, C-22I- C-222
low employee turnover, C-238
management changes, C-221
-C-222
management philosophy, C-236-C-237
organizational structure, C-236-C-237
pricing 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-225
sales and earnings I970 - 201 I. C-22 I
sales by product category, C-227
strategy-making
growth via acquisitions, C-228-C-231
growth via joint ventures,
c-232-C-233
1ow-cost production, C-232
new technologie s, C-23I -C-232
plant constructio n, C-23 I
-C-232
raw materials strategy. C-23J C 2J5
shift to value-added products,
c-235-C-236
workforce compensation, C 237
-C-238
in 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-1s0
Olympus,266
Omiya Ardija, C-50
Omniplex World Services, C-202
On2 Technologies, C- 182
Opera, C-182
Opus One, C-398
I-9
tJ
Occupational Safety and Health
Pacific Gas & Electric Company, 275, C-401 Peju Winery, C-398
Palm, C-192
Panasonic, C-15, C-213
Panera Bread Company, 158
Panera Bread Company, case
advertising, C-106
business model, C-99-C-102
I-f0 Companv Index
Oracle Corporation, 162, C-344
Organic Trade Association, C-395
Oriental Land Company, C-281
OSI Restaurant Partners, 252
Otis Elevator, 196, 253,329
Outback Steakhouse, 252
Ovid Napa Valley, C-398
iJ
r
Pabst, 70
non-profit locations, C- 105
number of employees, C-109
operating statistics, C-99
product line, C-LOL-C-|O4
revenues in2}II, C-96
sales in 2011, C-96
stock price performance, C-l l3
stores
Pelican Paper Company, Inc., C-205
Quintessa, C-398
supply chain, C-109-C-1 10
target market, C-97-C-99
Panera Bread Foundation, C-105
Papa
fohn's, 139
Paradise Bakery & Cafe, C-96, C-97, C-108
Paramount Studios, C-130, C-136
Parmalat, 354
Parry Cellars, C-398
Patagonia, C-43,C-53
Peabody Coal, C-386, C-389
Pearson PLC, 276, C-26, C-27, C-30
Peet's Coffee, C-37
Pemex, 168,362
PenPal Exchange, C-156
Poulan, 128
Prada, 133, C-7 3, C-7 4, C-77, C-7 8
Preccor, C-15
Premier League Football, C-51
income statements. C-269
c-261-C-272
Price Club, C-7
PriceCostco, C-7
Price Enterprises Inc., C-7
management development, 294
Providence Equity Partners, C-133
Prudential Life Insurance, C-42
Publlx 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-215
Qualserve Benchmarking Clearinghouse,
103, 104
QVC, C-es
Qwest Communications, 37, 354
iJ
Radio Disney, C-280
Radisson Hotels, C-316
Rainbow Grocery C-154
Ralph Lauren, 133, 253, C-74
Range Rover, C-254
Red Barn vineyard, C-393
Redbox, C-132,C-135
Red Bull, 130
Red Hat, C-169
Redhook Ale Brewery, C-307
RedTomato,C-149,C I5l
Reeboh C-53, C-s6, C-58, C's9,C-60,C-71
Reebok-CCM Hockey, C-57, C-58
Refco,354
Regalia Manufacturing Company, C-205
Renault, C-253
Renauit-Nissan, 168
Repsol YPF S. A.,276
Research in Motion, C-181, C-1,92, C-197,
c-21r, c-216, C-219
Reserve Bank of India, C-250
Reuters.com, C-178
Ricoh,202, C-218
RIM: see Research in Motion
Rio Tinto Grorry,C-234
Ripken Baseball, C-49
Rite-Aid, 136,354,362
Ritz-Carlton Hotels, 130, 139
Robert Mondavi Winery, C-398
Roche Holding AG,276
PepsiCo, 87,I25,I31.,248,275,276,280,
Qwikster, C-128-C-129
c-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,20
distribution, C- 109
-C-1
10 Pfizer,Inc.,92
divestment of Au bon Pain, C-97 PGA Tour, C-86
effect offinancial crisis, C-96
expansion goal, C-96
financial performance, C-98
business segment information, C 111 objectives, 30
company history, C-96-C-97
competitors, C-100-C- 102
c-1 10-c-112
marketing by, C- 105-C-106
Starbucks joint ventures, C-3 l6
PepsiCo/Lipton, C-317
Phenix Cheese Corporation, C-289 RCTV C-130
Philip Morris Companies, C-287,
c-289,c-290
financialperformance2Ol2,C-ll3 PhilipsElectronics,3T-38
franchise operations
company support for, C- 108
operating standards, C-108
sales, C-108
growth strategies, C-102
honors and awards, C-96
interest in Paradise Bakery & Caf6, C-97 POSCO, C-241
management change2Ol0,C-97 Post Foods, C-290
management information system, PostNL N. V, 276
Pillsbury,223
Ping Golf,89
Polo Goll C-53
Polo Ralph Lauren, 164, C-52,C-53,C-77 Regions Bank, C-204
Popchips,differentiationstrategy,l38 REI,293
Port Everglade Steel Corporation, C-228 Relactivity, C-130
criteriaforconsideration,C-107 Pnar,C-273,C-276,C-277,C-282
initial investment. C-107 PizzaHti,189, 205, C-123, C-260
new openings since 201 l, C- I l3 Playdom, Inc., C-277, C-283
number 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-228
off-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-109
site 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-53
Rod Markin Consulting, C-206
Roku, C-137
Rolex,7,70, 130
Rolls-Royce, 133,136
Roquette, 192, 2ll
Rosenthal, C-93
Roto-Rooter, 189
Royal Bank of Sc otland, 2 43
Royal Dutch/Shell, 27 8, 362
Roy's Restaurant,252
Rubbermaid,29T
Ruby Tuesday, C-99, C-102
RueLaLa, 153
Russell, C-53
Rutherford Dust Society, C-393
Ryanair, 106, 150-151, 328
Ryka, C-53
q
Safari, C-182
Safeway, 61, 127, 136, C-318
St. Iude Children's Research Hospital, 265
St. Sup6ry Estate, C-398
Saint Louis Bread Company, C-96, C-105
Saintsbury, C-398
Saks Fifth Avenu e, 7 0, C-7 4
Salomon, C-53
Salvatore Ferragamo, C-73
Salvestrin, C-398
Sam's Club, I45, C-7, C-317
description, C -20
-C
-2 1
distribution, C-23-C-24
membership and hours of operation,
c-2r-c-22
merchandise offe r ings, C-21
-C
-23
Samsung Electronics Company Ltd., 173,
207,276, C,rs, C-187, C-t97,C-211
Samsung Group, 173
Samuel Adams, 162
Sandleman & Associates, C-96
Sanford Financial Grotp,264, 354
investment fraud, 265
San Pellegrino, C-34
Sara Lee Corp or alion, 247
acquisition of Coach Inc.,C-74
SAS Institute,29
Satyam Computer Services, 208
Saucony, C-53
Save the Children, C-329
Schlotzky's, C-124
Schneiders, 162
Schramsberg Vineyards, C-398
Scotland Yard, 24
Scottrade,304
Scotty Cameron, 229
Sears, Roebuck,353, C-10, C-95
Seattle's Best Coffee, C-4, C-3 17-C-3 1 8
Seiko Epson, C-211, C-218
SELFHELP Crafts of the World, C-161
Sephora,192,211
7-Eleven Inc., 189
7-Eleven Inc., case
business model, C-257-C-258
convenience store concept, C-257
franchise operations, C-257
-C-258
franchises worldwid,e 2011, C-256
location of stores, C-257
store construction, C-257, C-258
in Taiwan
coffee counters, C-266-C-267
delivery and pickup, C-266
franchise rights and Shanghal C-272
future developm ents, C -27 I
-C
-27 2
i-Cash cards, C-266
infrastructure support, C-268-C-27 I
initial mistakes, C-261-C-263
innovations, C-264-C-265
localization, C-263-C-264
logistics, C-268
market share, C-267
number of stores, C-267
partnership with President Chain
Stores, C-259, C-261-C-272
phone plans, C-266
pre-ordering, C-266
seating areas, C-267
store layout, C-262
taxi services, C-267-C-268
24-hour stores, C-257
Severstal, C-241
Seward Community Co-op, C-150
Shanda,207
Shanghai Disney Resort, C-278, C-281
Sharo, 202
Sharpie pens,230
Sheba Properties Ltd., C -248
Shell Oil Company, 168
Sheraton Hotels, 98, C-316
ShopHouse Southeast Asian Kitchen, C- I 14
test format, C-123
Shougang Corporation, C-234
Showtime, C-132,C 133, C-134, C-135,
c-r45, c-282
Siddall, Inc., C-205
Siemens AG,29,354
Sift Cupcake and Dessert Bar, case
balance sheet, C-39
business plan, C-39-C-4I
community events, C-36
competitors, C-37
core values, C-36
Company Index
customer demographics, C-34
financial performance, C-27, C-39
growth initiatives, C- 37 -C- 4l
growth options 20ll-2073, C-40
hiring poiicy, C-37
human resource issues, C-36-C-37
marketing strate gy, C-35-C-36
mission statement, C-36
prospects for survival in 2010, C-33
rebranding, C-36
San Francisco Bay area locations, C-38
social media use, C-35-C-36
in specialty bakery market, C-33-C-35
store staffing levels, C-37
Signet Group, PLC, C-89
description, C-91-C-92
Sikorsky,253
Silicon Valley Bank, C-403
Silverado Vineyards, C-398
Silver Oak Cellars, C-398
Singapore Airlines, 3
Sirius XM satellite radio, C-280
versus over-the-air broadcasters, I l
Sk1pe, 162
Sleep Inn, 136
SMG, C-205
SMS Schloemann-Siemag AG, C-242
Smucker's,225
Snack Food Asso ciation,TT
Snapper, 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-136
Sony PlayStation Network, C-I32
Sony PlayStation 3, C-137
South African National Parks, case
criticisms of, C-383
Environmental Crimes Unit, C-372,
c-382
game capture org anization, C -37 2
justification for selling rhinos, C-383
rhino capture, C-369, C 372-C-377
and rhino poaching, C-382-C-383
Veterinary Wildlife Services, C-372,
c-373-C-375
views on rhino hunting, C-371
South African National Police, C-382
Southern Financial Corporalion, C 202
Southern Title Insurance Corporation,
c-202
Southland Ice Company, C-257
South Pacific Steel Corporation, C-20
Southwest Airlines,3,7, 103, 125,
t26-127,293
Sport-Chek International, C-50
Sportman International, C-50
I-r I
l-12 Company Index
Sports Authority, C-50
SportsScanINFO, C-44
Spottswoode Estate Vineyard & Winery,
c-398
SpringHill Suites, 139
Spring Mountain, C-393
Sprinkles, C-37
Sprint, C-195
Sprint-Nextel, 169
Spydea 303, C-53
Stag's Leap Wine Cellars, C-398, C-399
Stagt Leap Winery, C-398, C-399
Standard and Poor's, C-221, C-228, C 344
Staples, 61, 275,280, C-20
Starbucks,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-310
acquisition of Seattle's Best Coffee,
c-317-c-318
advertising, C-320
agreement with PepsiCo and Unilever,
c,317
alliance with Creen Mountain,
c-3I 8-C,31 9
business model development,
c-308-c-309
capital formation, C-309
capital raising, C-3 I 1
coffee purchasing strategy
ethical sourcing, C-326-C-327
and Fair Trade International, C-326
key elements, C 324
partnership with Conservation
International, C-326
pricing and purchasing arrangements,
c-32s-c-326
small farmer support program,
c 326-C-327
company history, C-307-C-3 l0
consumer products group, C 319-C-320
core values, C-324, C-325
corporate social responsibility strategy
charitable contributions, C-328-C-329
community involvement, C-328
corporate citizenship, C-328
ethical sourcing, C-327
-C-328
customer relations, C-329-C-330
effect of recession, C-305
employee 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-324
work environmenl, C-322
Ethical Tea Partnership, C-326
financial performance 2007-201 1, C-306
financial perform ance 2012, C-330
growth plans, C-310-C-31 1
international strategy, C-330
joint ventures, C-316-C-317
labor productivity, C-330
licensing agreement with Kraft, C-317
mission statemenl, C-324, C-325
national expansion, C-3 l0-C-3 I t
new market segments, C-316-C-319
new product launch 2009, C-318, C-319
non-coffee options, C-3 19
operations and production, C-327
performance targets, C-330
as private company, C-310-C-311
product line expansion, C-316- C-319
sales mix in 2011, C-319
store ambience, C-312
store design, C-3i2
store expansion strategy
blanket major cities, C-314
demographic profile, C-3 14
international expansion, C-314-C-316
licensing agreements, C-314 C-315
strategic plan, C-3 10-C-3 I I
top managemenr, C-329
transformation activities, C-305
vertical integration, C-320
vision, C-310
workplace environment, C-320, C-322
Starbucks Coffee, Tea, and Spice, C-307
Starbucks Coffee School, C-323
Starbucks Farmer Support Centers,
c-323-C-324
Starbucks 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-282
State Fair ofVirginia, case
acquisitions and divestitures, C-203
bankruptcy threat, C-207
board of directors, C-202
capital investment strategy, C-204-C-205
capital raising strategy
Department of Agriculture loans,
c-204
notional amount swap, C-204
taxable bonds, C-203
tax-exempt bonds, C-204
unsecured 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-207
fundraising consultants, C 206
management, C-201
mission, C-200-C-201
new site selection, C-198
in not-for-profit sector, C- 199-C-200
operating structure, C-201
in recession, C-205-C-206
strategic options for survival,
c-207-c-209
timeline, C-199
State Farm Insurance, 164
Steelcase, C-344
Sterling Pharmaceuticals, C-2 1 2
Sterling Vineyards, C-398
Stihl, 145
Stonfield Farm, 279
Stony Hill Mneyard, C-398
Strategic Planning Institute, 103
Stride Rite, 128
Subway, C-97, C-318
SUGGI, C-53
Sumitomo Metal Industries, C-228
Summers Grorp,244
Summit, C-130
Sunbelt Rentals, C-205
Sun Capital Partners, C-101
Sundaram Fasteners, 209
Sun Microsystems, 162, C - 169
Super 8, 136136
Super Target, C-10
Susan G. Komen for the Cure, 29
Suzuki, 206, C-250
Swiss Re Limited,276
SYSCO Corporation, C-3 l6
T
I
T Rowe Price Associates, C-130
Taco Bell, 189,205
description, C-123- C- 1.24
TAL Manufacturing Solutlons Ltd., C
-248
Target Stores, 7
-8,
63, 7 I, 98, 138, 145,225,
325, J30, C-20, C-78, C-95, C-132,
c-318
Tata Daewoo, C-247
Tata Daewoo Commercial Vehicle Cornpany
Ltd., c
-248,
c-2s3
Tata Englneering and Locomotive Company,
c-246,C-247
Tata Group
description, C-2,16
financial summary, C 246
future of subsidi aries, C-254-C-255
Tata Hispano Motors Carrocera S.A., C
-248
Tata Holset Ltd., C-247
Tata Marcopolo Motors Ltd., C
-248
Tata Motors, Ltd., case
acquisition of laguar and Land Rover,
c-247
awards, C-247
business strategy
international 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-250
g1obal manufactw ing, C - 246
growth prospects, C-254-C-255
income statement, C - 248
-C
-249
in Indian's auto industry, C-250, C-251
joint ventures, C-247, C-248
marketing research, C-252
Nano people's car, C-252-C-253
ownership of, C-246
passenger cars, C-252
production of laguar
and Land Rover,
c-2s3 c-254
sales by country, C-250
subsidiaries, C-248
target market, C-252
unit sales, C-254
Tata Motors European Technical Centre plc,
c -248
Tata Motors Insurance Broking & Advisory
Serr.ices Ltd., C
-248
Tata Motors Limited, Hispano, C-253
Tata Motors (SA) Proprietary Ltd., C
-248
Tata Motors (Thailand) Ltd., C
-248,
C-253
Tata Nano Europa, C-247
Tata Steel, C-241
Tata Technologies Ltd., C -248
TaylorMade-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
-248
Telefe, C 130
Telemundo, C-130
Televisa, 209, C-130
Tencent,207
Ten Thousand Villages, C-161
Tesla Motors, 170
Tesla Roadster, 280
Textron, 229
T.G.I. Fridays, C-99, C-I02
Thanksgiving Coffee Company
compared to Equal Exchange,
c-r63-c-r64
description, C-163 C-164
evaluation of fi nancial per[ormance.
c-164
net income, C-164
net income 2010, C-164
sales, C-164
working capital, C-164
Thonburi Automotive Assembly Plant
Company,C-247
3M 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-89
company history, C 84-C-85
competition
Blue Nile, Inc., C-93
Bulgari, C-92-C-93
Costco, C-94
Signet Group, C-91-C-92
diamond purchasing, C-88
effect of financial crisis of 2008, C-86
financial performance, C-86*C-87
flagship location, lvlanhattan, C-85
importance of branding, C-94 C-96
and jewelrv industry, C-89-C-91
management changes. C-85
online sales, C-85
product 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-132
Time Warner Cable, 169, C-133, C-134
Timex,70
Titleist,229
TML Distribution Company Limited,
c 248
TML Drivelines Limited, C
-248
TML Holdings Pte. Ltd., C -248
TNS 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-257
Touchstone 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-20
mission 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-130
TV Bandeirantes, C-130
TV G1obo, C-130
Twentieth Century Fox, 163, 160
Twitter, 352, C-34, C-50
Tyco International, 354
Tyson Foods, 280
U
Ukrop'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
competition
adidas Group, C-56-C-58
major competitors, C-63
Nike, Inc., C-53-C-56
distribution facilities, C-52
distribution strategy
direct-to-consumer sales, C-50
in Europe and Latin America.
c-50
-c-51
product licensing, C-50
wholesale, C-50
growth strategy initiatives, C-46
history as KP Sports, C-42-C-44
income 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-52
product design and development, C 51
product line strategy
accessories, C-47
apparel, C-46-C-47
cash flow data, C-45
footwear, C-47
product presentation, C-49-C-50
rapid growth after 2000, C-43-C-44
retail marketing, C-49-C-50
sales 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-48
professional teams, C-48-C-49
stock ownership, C-44
supply chain, C-51-C-52
Under Armour All-America Football
Game, C-49
Under Armour All-America Lacrosse
Llasslc.
(
--49
Under Armour Marathon, C-49
Under Armour Senior Bowl, C-49
Ungaro, C-93
Unilever, 192, 205, 21. l, 277, C-3\7, C-320,
c-346, C-347
Union Bank and Trust Company, C-202
Union Bankshares, C-202
Union Cab, C-154
Union First Market Bankshares, Inc.,
c-20t, c-202
Union ofEuropean Football Associations, C-58
Uni-President Enterprises Corporation
Group, C-259, C-261
business units, C-268
diversification, C-261
first 7-Eleven store, C-261
launch ofPresident Chain Stores, C-261
United Airlines, C-316
United for a Fair Economy, C-154
United Parcel Service, 29, 329, C-4
United Parcel Service Store, 189
United States Federation of Worker
Cooperatives, C-154
United States Green Building Council,
c-334, C-401
United States Postal Service, 329,
c-1, c-r37
United States Steel, C-220, C-241, C-244
sales and production, C-244-C-245
United States Tennis Association, C-86
United States Women's National Soccer
Team, C-49
United 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-390
ventilation problems, C-390
company CEO, C-386-C-388
go\rernment regulation of mining, C-388
and Massey Energy Corporation,
c 385-C-388
number of employees, C-389
occurrence April 2010, C-385
safety and health citations, C-389
safety violations, C-389-C-390
US. Beverages, C-290, C-291
U.S. Cheese, C-290, C-291
U.S. Convenience Meals, C-290, C-291
US. Foodservice, C-316
U.S. Grocery, C-290, C-29 I
UTC 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-20
Verizon Communications, 301, C-132
Verizon Wireless, C-23, C-195
Versace, 71, C-73, C-77
VF Corporation, 250, C-72
Virginia Golf Cars. 1nc.. C-205
Visa, C-25
Vizio, Inc., 128
Volker Eisele Family Estate, C-398
Volkswagen, 187, 212, C-253
VUDU.com, C-L32,C-136
Vulcraft, C-20, C-220, C-222
Gore & Associates, 136, 344, 358, 360
365
corporate culture, 345
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. l2l
Walmart Photo Center, C-136
Walmart Supercenters, C- 10
Walt Disney Company, 93, 19 6, 200, 222,
360, C-133
businesses runby, 253-254
Walt Disney Compaw case
acquisitions, C'27 5, C'27 6-C-27 8
balance sheets, C 285
capital expenditures, C-273
company history, C -27 4-C -27 5
corporate strategy
consumer products, C-282-C-283
financial resource allocation. C 278
focus ol C-276
interactive media, C-283 C 284
w
WL.
international expansion effort, C-278
media networks, C-27 8-C-280
parks and resorts, C-280-C-281
studio entertainm ent, C-28 I
-C-282
synergies among units, C-278
fi nancial perform ance 2007
-20
I I,
c-275-C-276
financial performance 2012, C-286
income statements, C-284
management changes, C-275
operating results
consumer products, C-283
interactive media, C-284
media networks, C-280
parks and resorts, C-282
studio entertainment, C-283
performance since 2005, C-273
relaled diversitication, C-275,
c,276 C-283
revenues 2007
-2011, C-273
stock price performance, C-277
Walt Disney International, C-275
Walt Disney Pictures, C-282
Walt Disney ProducLions, C-274, C-275
Walt Disney Studios, C-i30, C-134,C-275
Walt Disney World Resort, C-275, C-280, C-281
Warner Brothers, C-136
Warner Home Entertainment, C-133
Waterford, C-12
WD Partners, C-124
Weather Channel, 154
Wegmans, employee motivation, 333
\Vells Fargo, 160,264
Welsh Rugby Union, C-49
Wendyt, 301, C-97
Westbeach 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-398
Whole Foods Market, 138, 278,279,
c-t63, c-320
William Hill Estate Winery, C-398
Willy Street Grocery Co-op, C- 150
Wilton Companies, C-202
Wine Institute, C-396
WorldCom,37,354
World Fair Trade Organization, C-4
Worthington Industries, C-228
Wuhan, C-241
Wuling Automotive, C-253
Xebro.
(
,-5{ I
Xerox Corporation, 103, 218
XM/DIRECTV C-280
Xstrata PLC. 276
I
Yahool, C-i34, C-169, C-183
financial performance
2007-201 1, c-18s
online services, C-184-C- 185
\amaha,222
Yamato-Kogyo, C-225
Yelp.com, C-37
Yuengling & Sons, 70, 77
Yum! Brands, 189, 204, C'123
strategy for China, 205
X
Zagat, C-96
Zale, C-95
Zappos 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,265
Abufarha, N., C-167
Adams,
lohn B.,C-202
Adams,
John Quincy, 342
Adams, Steven 8., C-332
Agboka, Christelle, C-331
Aggarwal,,{khil, C-153
Ahlstrand, Bruce,43
Ahuja, G.,255
Albert, 8., C-166, C-167
Al Din, Ashur, C-345
Alexader,
John, C-153
Alexander, M., 255
Alix, Amanda, C-147
Ambroz, Milan,340
Amelio, Gil, C-188
Amit, R., 117
Amsden, Davida M., 339
Amsden, Robert T,339
Anand,
J., 212
Anderson, Eric T., 16
Annan, Kofi, 178
Anslinger, Patricia L., 177, 255
Antony,
fiju,339
Argandoa, Antonio, 284
Armstrong, D., 161
Arnold, David
1.,
213
Ascari, Alessio, 339
Ash, Mary Ka,v, 18
Atkin, T., C-406
Atkinson, Frank, C-202
Auris,
fan-Dirk, C-354
Austin, Miies, C-49
Austin, Nancy, C-245
Aycock, Dave, C-222
Azarenka, Victoria, C-54
ft
t-)
Badaracco,
loseph L., 365
Bagel-Trah, Simone, C-350, C-354, C-355,
c-357-c-358
Bailey, Wendy
J.,
284
Bain,
l. S.,78
Baldwin,
Jerry,C-307, C-308, C-309, C-310
Ballus, Andrea, C 33, C-35, C-36, C-37,
c-39, C-41
Ballus,
Jeff, C-33
Band, David C., 340
Bandler,
Iames,265
Banke, Barbara, C-395
I-16
Bareilles, Sara, 169
Barkema, H.,255,314
Barney,
lay
B., 117, 365
Barrett, Amy,248
Barringer, Bruce,43
Bartels, Rudy, C-337
Barthdlemy,
J6.r6me,
177 ,314
Bartlett, Christopher A., 117, 177,2I3,3I3,
3t4,365
Baum,
1., 314
Baun, William 8.,285
Ba-.rter, Wayne, C-342, C-343
Beale, G. William "Blllyl' C-201, C-2A2
Beauclramp, T.L.284
Beckett, Ron,339
Beckham, David, C-58
Beer, lonah, C-399, C-40I, C-106
Begany, Tim, C-126
Belling, Keith, 38
Bellus, Iefl C-35, C-36, C-37
Benzekri, Borzou, C-345
Bergen, 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,44
Blakely, Lindsay,38
Blanding, Michael, C-166
Blank, Arthur, 151
Blankenship, Donald L., C-386-C-388,
c-389-C-390, C-391
Bleeke,
ioe1,
177, 212
Bluedorn, Allen C.,43
Boesky, Ivan, C-212
Bogan, 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-310
Brady, Tom, C-49
Branagh, Nicole, C-49
Brearton, David, C-299
Brees, Drew, C-54
Brenner, D.,C-406
Brin, Sergey, C-168-C-169, C-171, C-186
Brinkman,
lohannes,
284
Briscoe,
fason, 340
Brodt, s., C-396,C-406
Brohan, Mark, I53,157
Bromiley, Philip,43
Brooks, S., C-395, C-406
Brotman,
Ieff,C-7, C-9, C-18
Brown, David, 284
Brown, Robert,43
Brown, Shona L., 16
Brugman,
leb,285
Brush, T,255
Bryan,
lohn, C-201
Bryant, Adam, C-358
Bryce, David
J.,
176
Buckley, P.1.,212
Bufford,
Jodi, C-201
Bulgari, Constantino, C-92
Bulgari, Georgio, C-92
Bulgari, Sotirio, C-92
Burcher, Peter, 339
Burke, Doris, 265
Burke, Ronald
J., 339
Burnah, Phillip, 314, 340
Burns, Lawton R., 339
Burnsed, Brian, 339
Burton, R. M.,314
Bush, George W, C'391
Byler, Edna Ruth, C-161
Byrne,
lohn,313
Byrnes, N., 336
Byrnes, Nanette, C-245
Byrnes, Rhonda, C-69
r
Cahn, Miles, C-74
Caliguiri, Paula M., 340
Camp, Robert C., 118
Campbell, A.,255,314
Campbell,
f.
Kermit, C-334
Cannella, A., 255
Caplinger, Dan, C-126
Capron, Laurence, 80, 2I2
Carasco, Emily F., 365
Carp, David, C-212-C-213
Carroll, Archie B., 284
Carroll, Matthew, 153
Carter,
lohn C.,365
Carver, Iohn,43
Casperson, Todd, C-153
Cavanaugh, Roland R., 339
Cha, Sandra E., 365
Chameides. B|r1,273
Champy, ).,
339
Chandler, Alfred,314
Chandler, Colby, C-2i2
Chaney, William, C-85
Chang, Aihwa, C-256
Chang, 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,284
Chen, Roger,284
Chen, Shih-Fen, C-256
Cheney, Lauren, C-49
Chichestes Richard, C-202
Christensen, Clayton M., 16,340, C-342
Christensen, H. Kurt, 212
Clarh Delwyn N.,355
Clark, Robert C.,43
Cocuzza, Thomas G., 118
Cohen, Alan R., C-302
Collins, James C ., 43,285, 313, 317
Collins, |ohn,
149
Collis, David
J.,
2,43,255
Conley, L., C-166
Cooh Tim, C-187, C- 189, C-197
Cooper, Robin, 118
Copeland, Michael V., C-147
Copeland, Thomas E., 255
Cordon, Carlos, 314
Correnti, lohn, C-222
Covey, Steven, C-69
Covin,
Jeffrey
G., 43, 177
Coyne, Kevin P., 176
Crawford, Iames, C-391
Creamer, Paula, C-58
Creed, Greg, C-124
Cristie,
James
R.,40
Crosby, Philip,339
Cusamano, Michael A' 120, 17 6
Cutler, L,, C-406
U
Dalton, Dixie, C-202
Daniel, L., C-406
Darr, Eric D., 340
Dash, Eric,40
DAveni, Richard, 176
Davidson, Hugh, 22,43
Davidson, Wallace N., 285
Davis, Scott, 176
Davis, Vernon, C-49
Dawar, Niroj, 213
Day, Christine M., C-61
Day'ton, Nick A., 340
Deal, Terrence E., 365
Debaise, Colleen, 153
DeCarlo, Scott,40
Dechant, Kathleen,284
Decinney, Timothy M. 284
Decker, Charles L.,294
Delios, A., 212
Dell, Michael, 149
Delmas, M. A., C-405
DeMerritt, Doug, C-400, C-406
De Pree, Dirk
fan,
C-332, C-333
De Pree, Hugh, C-333, C-334, C-339
De Pree, Max, C-334, C-337
Derfus, Pamela
|.,78
Deshpand6, Rohit,284
Dhanaraj,C.2l2
Dickinson, Rink, C-148, C- 149, C- 150, C- 151,
c-163, C-r64-C-r6s, C-r66, C-r67
Dienhart,
lohnW.,269
DiMicco, Daniel R., C-222, C-232, C-243
Dinur, A.,212
Disney, Roy O., C-274, C-275
Disney, Walt, 287, C,273, C-274, C-275
Donald,
lim, C-329
Donaldson, Thomas,284
Dosi, G., 313
Dowdy, T., C-202
Doz, Yves L., I77,212,213,255
Dragonetti, Nicola C., 118
Dranikoff, Lee,255
Drucker, Peter F., 80, 255,342
Duhigg, Charles, 259, 303
Dunfee, Thomas W.,284
Dussauge, Capron P., 272,314
Dutta, Soumitra,339
Dyer,
feffrey
H., 176, 177,213
r
t_
Eames, Charles, C-333
Eames, Ray, C-333
Eastburn, Ronald W, C-73
Eastman, George,C-212
Edwards,
Jim,265
Eichenwald, Ktrrt, 28 4, 365
Eisenhardt, Kathleen M., 16, Il7, 255
Eisenstat, Russell, 117, 314
Eisner, Alan, C-275
Eisner, Michael, 214, C-275
Ekberg, P., C-406
El Afifi, Ashraf, C-354, C-355
Elfenbein, Hillary A., 285
El-felly, Abuzar,285
Ellis,
|.
L., C-85
Ells, Steve, C-l14, C-115, C-123
Elsaesser, Caitlin,38
English, Michael f., 339
Ernst, David, 177,212
Everts, Rob, C-148,C-149, C-150, C-151,
c-r64-c-165. c-166, c-t67
Name Index
F
l-17
Fahey, Liam, 176,2I3
Fanfa, Corey, C-33
Farkas, Charles M,, 365
Fawcett, Stanley 8., 314, 340
Federer, Roger, C-54
Ferratt, Thomas W,339
Ferrier, W f.,
176
Fiegenbaum, Avi,78
Fi1o, David, C-169
Fiorentio, Amy.,274
Fiorina, Carly, C-346
Fisher, George, C-212-C-21 3
Floyd, Steven W, 313
Fogelsong, Robert, C-391
Foote, Nathaniel, l17 , 314
Forbes, Malcolm,3lT
Ford, Henry,2l
Francis, Arlene, C-333
Frankel, Daniel, C-147
FranKort, Lew C-7 4, C-79-C-80, C-81,
c-82
Franko, Lawrence G., 255
Franson, P,, C-406
Fraser, Kenneth P.,345
Fritzsche, Michael, C-201
Frost, Carl, C-333
Frost, Tony, 213
Fulks, Kip, C-43,C-44
Furyk,
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-58
Gardner,
fohn
L., 192
Gatrette,8., 212
Garvin, David A.,43
Gates, Bill, 149, 178, C-I83
Gates, Gary, C-400
Gavetti, G., 146
Gehani, R. Ray, C-211
George, S.,339
Ger, Guitz,213
Geroski, Pau]L A.,177
Gerstner, Louis V., lr.,
l2O,342
Ghemawat, Pankaj,213
Ghoshal, Sumantra, 117, 177, 213,313, 314,
365
Gilbert, Clark G., 43
Gilbert, D., 265
Gilinsky, Armand,lr., C-33, C-392, C-406
Gilpin, M., C-202
Girard, Alexander, C-333
Glaister, K.W.,2I2
I-18 Name Index
Glisson, Britton, C-202
brovel J,, 155
Goffee, Robert, 365
Goldberg, Alan B., C-25
Golden, TimothyD.,284
Goldsmith, Marshall, 3 14
Goleman, Daniel, 365
Gomes, Rick, C-366, C-367
Goodell,
leff, C-386, C-391
Goodland, Robert,284
Goodman, Paul S., 340
Goodrich, D., C-166
Goold, M., 255,314
Goosen, Retiel C-58
Gordon,
|oseph, 339
Gordon, M.
ioseph, /r, 339
Gordon, Marcy, 284
Gordon, Mary Ellen, 78
Govindarajan, Vijay, 1 18
Graham,
Jefferson,333
Grant, L. 8., C-406
Grant, R., 313
Greenfield, W M.,284
Greenhouse, Steven, C-25
Gregorio, Rui, C-33
Gregory-Cla1ton, Sean, C- 1 13
Grimm, Curtis M.,78, 176
Gunnarson, Sarah K., 365
Guthey, G. T, C-406
tJ
fE
Haddock, M. A., C-210
Hall, Gene, 339
Hall, Ted, C-399
Hambrick, Donald C., 176,255
Hamel, Gary, 177, 212, 213, 214, 255, 313
Hamm, Steve,213
Hammer, M.,339
Hanson,
]ames, 230
Hariharan, S., 78
Harper, Bryce, C 49
Harrigan, Kathryn R., 176,177
Haspeslagh, 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.,255
Hazelgrove, Bruce, C-202
Heeley, Michael B., 177
Heifetz, Ronald A., 365
Heikkild,
Jussi, 314
Helfat, Constance E., 1 17, I 18, 313, 314
Hendricks, Kevin 8., 43
Henkel, Fritz, C-346
Henriques, Adrian,284
Herrera, Tilde, 284
Hertsgaard, M., C
.406
Heskett, James L.,340,365, C 153
Hess, David,284
Hesselbein, Frances, 314
Hicks, L. Wayne, C-126
Hill, Ronald Pad,27l
Hilmer, F.,314
Hindo, 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-343
Holpp, Larry, 339
Horn,
lohn, 176
House, Charles H., 43
Hout, Thomas M., 365
Hoving, Walter, C-85
Howes, Daniel,358
Hsieh,
lames, C-260, C-26I, C-266, C-267,
c-268, C-272
Hubbell, Victoria, 365
Huggins, Dennis L., 38, 161
Hughes,
lonathan,177
Hult, G.,314
Humble,
John,365
Hurd,
fonathan, 177
Hyland, Paul,339
I
I
Iacobucci, Dawn, 118
Iansiti, Marco, 127
Iger, Robert, C -27 3, C-27 5, C-27 8, C -250,
c-282, C-283, C-286
Inkpen, A. C., 177,212
Inman, Bobby R., C-391
Intardonato,
J., C-406
Isidore, 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-I17
Iassawalla, Avan R., 365
Jelinek, Craig, C-7, C-9, C-i8
lemison,
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,3l
furan,1.,339
fit
Kagermann, Henning, 16
Kahaner, Larry,78
Kale, Prashant, 177, 213
Kallio,Larry, C-342
Kaminski,
Joanna, C-148
Kanazawa, Michael T., 365
Kane, Louis, C-96
Kane, Yukari Iwatani, C-197
Kanter, Rosabeth Moss, 177, 213,3I4,365
Kaplan, D., C-167
Kaplan, 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,43
Kaufman, Stephen P.,43
Kearney, Hannah, 296
Keeble,
lustin, 284
Keeley, Larry, C-219
Kelly, M., C-166
Kennedy, Allen A., 365
Kerr, Steven, 340
Khandelwal, Deepauk, C- 150
Khanna, Tarun, 213
Khuzami, Robert,266
Kiehl, 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,279
Koch, Charles G., 18
Kogut, B., 212,3I4
Koller, Tim, 255
Kolwaski, Michael, C-85
Kotlea Philip, i76
Kotter,
John P.,22, 340, 365
Koza, M., 177
Kraft,
J.
L., C-289
Krakofl Reed, C-74, C 79, C 80
Kramer, Mark R., 284, 285
Krebs, Michelle, 358
Kumar, N., 213
Kwak, Mary, 176
I
L
Lachenauer, Rob, 175
Larnpel,
foseph,
43, C-300
Lang, Bret, C-147
Lanzolla, Gianito, L77
Launder, William, C-147
Laurie, Donald L., 355
Lawrence, Anne T., C-385
Lawrence, Ron, C-310
Lawrence Anne T., 284
Lee, Hau L., 118
Lee, Terry Nels, 340
Lehner, Ulrich, C-346
Lemak, David
J.,
340
Leson, G., C-167
Levesque, Lynned C., 43
Levicki, C., 314
Levien, Roy, 127
Lewin,4.,177
Lewis, Ray, C-49
Lieberthal, Kenneth, 213
Liedtka, Jeanne
M .,255, 374
Liedtke, Michael, C-147
Light,
loe,
C-166
Lin,
fudith
H., 153
Lin,Lyda,C-272
Lindsay, Samantha, C-26
Lindsol, Harry, C-26, C-28-C-29, C-30,
c-32
Link,Jay,C-337
Little, Arthur D., 284
Little, Royal,229
Lombardi, Vince,317
Lorsch, )ay
W, 43, 365
Loughridge, P atricia, C- 202
Lubatkin, M., 255
Lyles,M. A'212
M
Mabunda, David, C-372, C-382
Macauley, Margaret W, 303
Macdonald, J.
G., C-166
MacMillan, Ian C., 176
MacNeil, H., C-166
Madhok, Anoop,l77
Madofl Bernard L,265, 269
Maggitti, Patrick G., 78
Magretta,
)oan,
16
Mahan, Hunter, C-49
Maier, Molly,38
Majchrzak, Ann, 339
Mani, Divya A.,294
Mannix, E.,314
Manz, Charles C., C-332
Marz,Karcn,C-332
Maphalala, M.,C-167
Marchese, Samantha, C-148
Marchionne, Sergio, 358
Marcus, Bernie, 151
Margolis,
Joshua
D,, 284,285
Marino, Lou, C-187
Markides, Constantinos C., 16,80, 177,254,
255,287
Martin, J., 117
Marx, Matt, 340
Mary, Daniel, C-2, C-3, C-5
Mary, Simon, C-3
Mathews, Clay,C-54
Mathewson, Mark, C-33
Mattioli, Dana, C-72
Mauborgne, Rende 43, 177
McCawley, Tom,285
McClellan,
I
ennrfer, C-202
McCool, Grant,284
McCormick, Chris "Maccai' C-49
McGrath, Rita Gunther, 176
Mclver, Ronan, 177
McKones-Sweets, K. E,, C-166
Mclaughlin, Andrew, C-186
Mclellan, Eiizabeth, C-383
McNulty,
Iohn,C-367
Meers, Robert, C-60
Menges, Kathrin, C-351, C-353, C-354,
c-355, C-3s6
Menkes,
Iustin,313
Menor, Larry,43
Meyer, K. 8.,212
Michael, David C., 208,273
Miitts, Heather, C-49
Miles, Morgan P.,43
Miles, Robert H.,355
Miller, Claire Cane, C-331
Miller, Danny, 177,314
Miller, Herman, C-332
Miller, L,, C-167
Miller, Ronald, C-275
Milliken,
Iohn,
C-359-C-3 60, C -362-C-363,
c-365-C-367
Milne, George R.,78
Ming-Jer Chen, 175
MingZeng,146
Mintz, Charles, C-274
Mintz,
|enni,
340
Mintzberg, Henry, 16, 43, 314
Mirobito, Ann M.,285
Mistr, William, C-202
Mitchell, Will, 80, 212, 314
Mixon, William 8., C-369
Mizrahi, Isaac,8
Moharnmad,259
Mokwa, 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,30
Morgan, Solomon, C-84
Morrison, Paul E., C-359
Moscaritolo, Angela, C-147
Moschetti, Paula, C-399, C-401
Mroz,
]ohn
Edward, 314
Muller, Joanne, 213
Murphy, Patrick 8.,365
Murray, Paul, C-337
N
Nadal, Rafael, C-54
Nadler, David A.,43
Nardelli, Robert,358
Natchiar, G., 137
Nazareth, Rita, 254
Nell, W., C-155
Nelson, George, C-333
Nelson, Pam, C-33
Nelson, R.,313
Neronha, Peter, C-185
Ness,
Joseph
A., 118
Neuman, Robert P.,339
Newton, S. K., C-406
Nichols, P.M'284
Nicklaus, Meredith, C-33
Niles-Jolly, Kathryn, 365
Nohria, Nilin,365
Nordheim, Christie, 1 18
Nordstrom, Blake,30
North, Rodney, C-151, C-153,
c-r66, c-r67
Norton, David P.,43
Obama, Barack, C-186
O'Bannon, Douglas P., 285
Obel, B., 314
Ohinata, Yoshinobu, 339
Ohmae, Kenichi,44
Ohno, Taiichi, 298
Olian,
|udy
D., 340,365
Olie, R.,212
Olsen, Dave, C-310
Olsen, E.,314
Olson, Susan, C-41
Olusoga, Ada78
O'Reilly, Charles A., 339
Oren, Shannon, C-399, C-406
Osegowitsch, Thomas, 177
Osono, Emi,298
I-19
r-20
p
Name Index
Pablo, E.,212
Page, Larry, C-168-C-169, C-171, C-185,
c-185
Paine, Lynn Sharp, 213,284, 365
Palepu, Krishna G.,213
Palmeri, Christopher, 166
Pan, Y. G., 177
Pande, Peter S., 339
Patterson, Abbe, C-i7i
Patterson,
fulien,
C-202
Patton, Leslie, C-126
Paul, S. M., 161
Paul, Satya, C-78
Payne, Charles W, C-202
Peck, Emily,284
Penn, C., C-406
Pensiero,
Ioe, C-367
Perez, Antonio, C-212, C-213-C-216
Pedman, Lawrence,256
Perry, Keny, C-58
Peteraf, Margaret A.,Il7,I f 8, 313
Peters, Tom, C-245
Petit, 4.,212
Petrecca, Laura,38
Pfsffsr,
feffrey, 340, 365
Pfeffer,
Jenna
P.,23
Phelps, Michael, C-49
Phillips, Baxter,
Ir.,
C-39I
Phoenix, 169
Piacenza, Bruno, C-354, C-355, C-356
Pickens, T. Boone,
Jr., C-212
Pisano, Gary P., 117,177,314
Plank, Kevin, C-42, C-43, C-44
Plank, Scott, C-43, C-44
Polk, E., C-166
Poole, Shelley, C-202
Porras,
]erry
L, 43,285
Portanger, Erik,284
Porter Michael E ., 76, 44, 50,77,78,99,
102, 1 18, 720, t22, r24,130, 146,
t77, 780, t8r, t82, 2r2, 254, 2ss,
284,285,36s
Posey, Buster, C-49
Post,
James
E.,284
Powell, Thomas C.,340
Prahalad, C. K., 177 , 212, 213,214, 285, 313,
314
Premji, Azim,2
Preston, Lee E., 285
Price, Raymond L.,43
Price,. Sol, C-7
Priddle, Alisa, 358
Priem, Richard L., 145
Pruthi, S.,212
Pugh, Lyle, C-202
Pujols, Albert, C-54
Quelch, Iohn A.,213
Quinn, fames Brian, 314, 339,365
Quinn, Sean, C-365, C-366
Quittner, |osh, 157
r"!
Rabil, Paul, C-49
Raines, Franklin,39
Rainsford, P., C-406
Rajarathnam, Raj, 259
Rand, Dave, C-359, C-360, C-365, C-36,C-367
Rand, Neil, C-367
Randall, Robert M.,213
Rao, Ashkay R., 176
Rasulo,
|ay,
C-277, C-287, C-286
Raubitschek, R.,314
Rayasam, R., C-166
Reed,
John,284
Reed, Richar4 340
Reid, foanne, 365
Rendich, Andy, C-129
Reyes,
fose,
C-49
Rhoads, Gary K., 314, 340
Rhode, Giibert, C-332, C-333
Richards, Terry, C-400
fuchardson, Sandy,43
fuchard the Lionheart, C-301
Ridderstrale,
Jonas,
314
Riggs, Bonnie, C-126
Riggs, Cynthia, C-33
Ritter, Bill, C-25
Rivkin,
|an,
16
Robert, Michel, 22,43, 149
Roberts, Curry A., C-199, C-201
Roberts, Daniel, C-58
Roberts, David, C-391
Roberts, Sarah, 284
Robin Hood, case, C-300-C-301
organizational structure, C-300
strategy change, C-300-C-301
Robinson, P., C-166
Robinson, Phyllis, C-150
Rock" Melinda,339
Rodgers, Aaron, C-54
Rodriguez, Alex, C-54
Rogovsky, Nikolai,284
Roll, R.,255
Roman. Ronald M.,285
Romo, Tony, C-54
Roos, Goran, ll8
Rorsted, 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-58
Rosenfeld, Irene, 250, C-287
Rosenthal,
|im,339
Rosenthal,
Jonathan, C-149, C-f50, C-f66
Rothschild, William E., 17 6
Rounds, Kate, C-331
Rowe, W. Glen, C-198
Rozyne, Michael, C-149, C- I 50, C- I 5 I
Ruch, Dick, C-334
Ruggless, Ron, C-l13
Rui, H.,213
Rukstad, Michael G., 2, 43
Runcan, Tim, C-58
Rynes, Sara L.,340,365
e
rJ
Sacks, Danielle, C-72
Saekel, K., C-406
Salamon, L. M., C-210
Sanchanta, Mariko, C-331
Sanyal, Rajib,284
Sashittal, Hemant C., 365
Sathe, Vijay, 365
Scanlan, Gerald,340
Scanlon,
Joseph
N., C-333
Scherer, F. M., 78
Schermerhorn, fohn
R., 269
Schmidt, Eric, 325, C-168
Schnarr, Karen, C-198
Schneider, Anton,255
Schneider, Benjamin, 365
Schoemaker, P., 117
Schriffrin, M., 177
Schuell, K., C-166
Schuler, Fran, C-360
Schultz, E.
J.,250
Schultz, 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-342
Schwartz, A., C-167
Schwartz, Mark D., 284,365
Sculley,
John,
C-188
Seepersaud, Steve, C-58
Selby, Richard W, t20
Server, Andy, C-331
Seth, A.,212
Shah, Amit
1.,284
Shaich, Ron, C-96, C-97, C-105
Shank, lohn K., rl8
Shapiro, Nina, C-25
Shapiro, Roy D., C-359
Sharapova, Maria, C-54
Shaw, Gordon,43
Shaw, Warren,256
Shein, Edgar, 365
Shih,WillyC., r77,374
Name Index
t-21
Shimizu, Norihiko,298
Shin, Annys,40
Shippea Frank, C-332
Shliefer, A., 255
Shnayerson, Michael, C-386, C-387' C-391
Shuen,Amy,117
Siegel, 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-18
Singh, Harbir, 177,213
Singh, iang
B., 365
Sinha, fayant,213
Slater, S., 314
Slevin, Dennis P., 177
Smith, Iain,27l
Smith, Ken G'78,176
Smith, Kennedy, 339
Smith, N. Craig,285
Smith, Orin, C-329
Snyder, Jim,
C 391
Sokolowski, S. W., C-210
Somerville, Iain,314
Song, K.,212
Spacey, Kevin, C-133
Speth, ].
G.,284
Spicer, Andrew,284
Spielberg, Steven, 18
Spindler, Michael, C-188
Stalk, George, lr.,
176
Stanford, R. Allen,265
Steensma, H. K., 212
Steinebach, Lothar, C-354, C-355'
c-3s6-c-3s7
Stephens, Debra,27l
Stevenson, Howard,340
Stone, 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,256
Stuckey, 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
-r
I
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 l8
Templeton, Ross M.,273
Thomas, Howard,78
Thomas, 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,2l3
Turley, Larry, C-393
Turner, Clinton, C-202
Turnipseed, David L., C-2,C-247
Turpin, Pat,38
Tushman, Michael L., 339
Twer, Doran,340
tl
U
Ungan, 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/
vv
Wade, Dwayne, C-54
Wade, ]udy,339
Wakeam, lason,I77
Walker, 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.,339
Walton, Sam, 359, C 6
Wang,
Qianwei,339
Wascog 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,284
Wegrzyn, Charles, C-153
Weir, Mike, C-58
Weise, E., C-166
Weiss, Eric,40
Weiss, Iefl
177
We1ch, ]ack,
2, 17 8, 214, 3 13, 359
Welch, Suzy,313
Wells, David, C 146
Wernerfelt, Birger, 78, I17 ,255
Wessel, Godecke,339
Wetlaufer, Suzy, 365
White, David, 177
White, Gordon,230
Whiteman, G., C-406
Whitman, J.
R., C-166
Wie, Michelle, C-54
Wiedman, Christine,43
Wieters, 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'69
Wilson, 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
'
3I4
Wood, Ryan, C-43,C-44
Woods, 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., 177
Wright, M., 212
yoon,
Sangwon, 212 Zetsloot, Gerald I.
1.M.,284
Wu 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.,3l4
Yip, G., 213 Zbarack| Mark
1.,
339
Z Y
A
Accounting
activity-based, l0l
oversight of, 37
Accounting scan dals, 265 -266
corporate, 37
Freddie Mac and Fannie Mae, 39-40
Acquisition costs, 217, 218
Acquisitionsj see nlso Mergers and
acquisitions
of Chipotle Mexican Grill by McDonald's,
c-115
of Coach by Sara Lee, C-7 4
to create subsidiaries, I90
criteria in unrelated diversification, 228
cross-border, 1 80
definition, 159
diversification by
to access resources, 218
to build market position, 218
and due diligence,2i8
by Equal Exchange, C- 1 50
failure to deliver, 218
by Henkel AG, C-349
by Kraft Foods
Cadbur;', C-290' C-292
Nabisco, C 290
of Kraft Foods by Philip Morris, C-289
by local companies in developing
countries,208 209
by Nucor Corporation, C-228-C-231
On2 Technologies by Google,
c- 1 82-C- 183
premium vs. bargain price for, 218
and restructuring, 230
ofStarbucks by Il Giornale, C-310
State 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-179
Activities
execution-critical, 3 19
-320
independent actions, 321
prescribed,32l
Activity-based accounting, 101
Activity ratios, 85-86
Adaptation of best practices, 322
Adaptive culture
advantage to all companies, 352
high-tech companies, 352
no compromise in values, 352
stakeholder interests, 352
supportive n'ork climate, 351
Advertising
beer 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-155
lvebsite, 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-338
media for Under Armour, C-50
by Panera Bread Company, C-106
Sift Cupcake and Dessert Bar, C-35-C-36
Starbucks, 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 industry
globalbrands, C 71
major competitors, C-7 1
-C-7
2
revenues and sales, C-71
Attitude changes,6T
Audit committee, 37
Authority; see Delegation of authority
Automobile industry
bargaining pou.er, 61
grorvth potential in China, 181
in India, C-250-C-251
outsourcing by, 302
Tata Motors, C-246-C-255
Availability of substitutes, 57
Average collection period, 85
Awards,33l
to Starbucks, C-328
D
L")
Backward integration
to achieve greater competitiveness, I63
and buyer bargain.ing power, 61
cost saving conditions, 163
definition, 162
differentiation-based competitive
advantage,163
in-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-8
Eastman Kodak, C-215
Equal Exchange, C-159, C-165
Frog's Leap Winery, C-402-C-403
Google Inc., C-177
Herman Miller Inc., C-341-C-342
Kraft Foods 2012, C-298
Netflix, C-l3l-C-132
President Chain Stores, C-270
Sift Cupcake and Dessert Bar, C-39
Starbucks 2007
-2011,
C-306
Tata Motors, C-249
Thanksgiving Coffee, C 165
Under Armour, C-45
Bankruptcy
Chapter 1 1 proceedings, C-208-C-209
Chapter 7 proceedings, C-209
Eastman Kodak, C-211, C-2I4-C-216
not-for-profit sector options, C-200
threat for State Fair ofVirginia, C-207
Banks, corporate frard, 264
Bargaining porver
ofbuyers,60-63
of diversified companies, 237
of suppliers, 58-60
Barriers 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,2i9
overcoming, 55
securing retail space, 55
for startups,217
Beer industry
advertising, 74
key success factors, 74
Benchmarking
to 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, l03
to uncover competitive advantage, 106
Best-cost provider strategies, 7-8
compared to other strategies, 140
definition, 122, 140
distinguishing fe atw es, I 42- I 43
resource and capability analysis, i40
target market, 140
at Toyota, i41
value-conscious buyers, 140
when most competitive, 140-141
Best practices, 105
across value chain,322
adaptation to circumstances, 322
benchmarking to identily, 322
capturing benefi Is of , 327
-328
definition,32l
as motivation,360
Befier-off test,227
ror orversrtlcatton, ll,/
for unrelated diversification, 228
Big box stores, increasing market share, C-94
Blo o mb erg Busin e s sw e ek, C - 3 3 6
Blue-ocean strategy
definition, 152
examples, 154
Gilt Groupe, 153
long term success problem, 154
online auction industry, 152-154
types of marketspace, 152
Board of directors
audit committee, 37
compensation committee, 38
corporate governance
appraisal of directors, 37-38
evaluation of leadership skills, 38
oversight of compensation, 38
oversight of financial accounting, 37
focus on short-term performance, 38
guarding against self-dealing, 264
Herman Miller Inc., C 336-C-337
independence of, 38-40
inside directors, 37
outside directors, 37
responsibilities of, 38-40
State Fair of Virginia, Inc., C-207-C-203
Bonds
taxable, C-203
ta-x-exempt, C-204
Bonus compensation, Henkel AG
group performance, C-353
individual performance, C-354
payout linked to goals, C-354
payout terms, C-354
team performan ce, C-353
-C-354
Brainstorming, 361
Brand awareness
Chipotle Mexlcan Grill, C-121
Coach Inc., C-73
Panera Bread Company, C-105
Brand-building, 131
Brand image and reputation, 237
Branding
significance in jewelry industry, C 94 C-95
by Tiffany & Company, C-88
Branding capabilities, Z4
Brand loyalty, first-mover advantage, 155
Brand managers
origin at Procter & Gamble, 294
role in strategy-malting. 3l
Brand names
exploiting use of, 222
global, 195
Brand preferences, as barrier to entry, 54
Brand recognition, 54
Brands, 87, 88 see also Product line
corporate, 229-230
Henkel AG, C-346
Kraft Foods, C-287
switching costs, 50
umbrella, 230
Bribery
areas predominant in, 260
and codes ofethics,261
companies fined foa 261
and Foreign Corrupt Practices Act, 261
issue for multinational corporations,
260-261,
persistence o{ 261
BRIC countries,204
Broad differentiation strategies
benefits for firms, 139
definition, 12I
to 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 avoid
overspending, 135
rapid imitation, 134-135
too high price, 135
too many frills, 135
trivial improvements, 135
unenthusiastic buyers, 135
unique customer value proposition, 139
uniqueness drivers, I J0- I3I
continuous improvement, 131
customer service, l3l
high-quality inputs, 131
human resource management
activities, l3l
innovation, 131
marketing and brand-building, 131
research and development, 131
superior product features, 131
value chain management, 130-131
value chain revamping, 132
when most competitive
diversity ofbuyer needs, 134
diversity of product uses, 134
few rival firms, 134
technological changes, 134
ways of differentiating products, I34
Browser market share rankings, C-I82
Budget reallocation, 318
Bureau ofLabor Statistics, C-34
Bush administratlon (2nd), C-229
Business base
broadening
extending geogr aphic scope, 247
at
Johnson & iohnson, 248
from rapidly changing conditions, 247
transfer of resources and capabilities,
247
narrowing
by divesting, 247-249
by restructuring, 247
-249
Business buyers, bargaining power, 61
Business case for corporate social
responsibility
environmentally sustainable practices,
280-281
increased patronage, 279
long-term interest of shareholders,
280 281
lower costs, 280-287
reputation,2T9
revenue enhancement, 280
workforce retention, 280-28 t
Business case for ethical strategy, 268 270
Business ethics; see also Illegal activity;
Unethical business behavior
cases for ethical strategy
business case,268-270
moral case, 268
in competitive intelligence, 73
delrnltron, Z5 /
as good business, 269-270
Googlet problems in 2012
fined by Federal Communications
Commission, C-186
legal settlement, C-186
nature of, C-185-C-186
net neutrality issue, C-186
integrative social contract theory, 262
at Novo Nordisk,267
standards in Europe and U.5.,258-259
Business-level st r ategy, 82
definition,34
delegation of, 216
at Eastman Kodak
commercial segment, C-2I7
-C-2I8
consumer segment, C-278-C-219
international growth, C-252
lululemon Athletica, C-63
responsibility for, 33
Subject Index l-25
and scope ofthe firm, 159 Henkel AG, C-346 competitive advantage ofToyota,298
Tata 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,93
Business lineup higher costs, C-293 cross-functional,8g
restructured by Kraft Foods, North America, C-293-C-294 definition, 87
C-290-C-292 product differentiation, C-293 distinctive competence, 93
restructuring and retrenching, 249-250 revenues, C-293 in diversification decision,220
sticking 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, 222-223
customer 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
-168
Eastman 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, 88-89
oflocal 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,60-63 200-2Ol
streamingoption,C-137 C-138 factorsdeterminingstrengthof toachievedominantdepth,200-201
Panera Bread Company, C-99-C-102 backward integration threat,61 exarnples,200
profit formula, 10 information on pricing and costs,6l potential problems,201
7-Eleven Stores nurr.rber ofsellers, 6I for strategy execution, 291-292
franchise operations, C-257-C-258 option to delay purchases,62 strategy supportive,29l
store construction,C-257 price sensitivity,62-63 for sustainable competitive advantage,
store location, C-257 supply and demand,6l 89-91
Sirius 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 of
Business 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, 54-55
tools, 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'3
versusopportunityindeveloping accessedbymergersandacquisitions, 160 newsitepurchase,C-3
countries, 204 added in partnerships, 302 Cash cows, 242,243
reduction in, 66 building and strengthening Cash flow
spread 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,3O
Centralized decision making C-388 sizeof,74
advantages,30T-308 Coalminingindustry strategicgroup map,69-71
basic tenets, 308 government regulation, c-386 strategic vision, 20-24
disadvantages, 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 19-20
Equal Exchange, C-154 and United Mine Workers, C-386 struggling, 152
Herman Miller Inc., C-336 Upper Big Branch Mine disaster, tests for winning strategy
Massey 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,347
Henkel AG, C-345-C-346 compliance with laws, C-I8-C-19 triple-bottom-line repofiing,276
Massey Energy Corporation, customer relations, C-19 vertically integrated, 162
C-386-C-388 respect suppliers, C-19 vision and values,25-26
role 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 also
Certificate 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,262-263 220-221
Change-resistant cultures Coffee industry Compensation; see also CEO compensation
stodgy bureaucracies, 353 comparison offree trade vs. New York at Chipotle Mexican Grill, C-120
unhealthybehaviors,352 prices, C-152 at Costco Wholesale
Channels of distribution; see Distribution competition in, C-148 employees, C-16 C-17
channels consumption in United States, C-3 executives, C-18
Chapter 11 bankruptcy Equal Exchange in, C-148-C-166 forms of,331
EastmanKodak,C-2It, C-214-C-216 freetradeindustryand,C 160 C-164 guidelines for,335-337
not-for-profit sector, C-200 retail sales of organic coffee, C-4 Herman Miller Inc., C-339-C-340
proceedings, C-208-C-209 specialtycoffees, C-4-C-5 incentive,335
Chapter 7 bankruptcy Starbucks and competitors, C-4 at Nucor Corporation,336
not-for-profit sector, C-200 World Fair Trade Organization, C-4 bonus plan, C-237
proceedings, C-209 Coffee sales, C-266-C-267 department manager incentive plan,
Charitable contributions,2Tl Collaborative partnerships, to access C-237
Herman Miller Inc., C-337 capabilities,299 401(k) plans, C-238
by Starbucks, C-328-C-329 College students production incentive plan, C-237
Chieffinancial 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-238
China 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,93
Dell Inc. in,205-206 Community involvement, Starbucks, C-328 Competition
demand 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-194
local distribution in, l8l acquiring and restructuring,230 Hewlett-Packard, C-193
low-cost labor,208 appraisal ofdirectors of,37-38 for Chipotle Mexican Grill
online travel agency,2O8 core values,25-26 Moe's Southwest Grill, C-124
population, 204 crafting strategy, 3l-35 Qdoba
Mexican Grill, C-124-C-2I5
prepaid access cards,zl7 factors affecting performance, 3 TacoBell,C-123-C-124
second 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-25
Clinton 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 I
quality and performance, 58 Toyota Production System, 298 SWOT analysis, 109
switching costs, 58 translatingvalue chain activities into, weighted ratings, 109, ll0
for Google Inc., C-168 106-108 Competitive strength scores
Microsoft,C-183 C-184 Competitiveadvantagetest, 12 abilitytomatchrivals,23T,23S
Yahoo!, C- 184-C- I 85 Competitive assets, 86, 94 bargaining leverage, 237, 238
for Google Inc. on Internet Competitive attack benefits from strategic fit, 237,238
Microsoft, C-I83-C-184 basis for brand image and reputation, 237,238
Yahoo!, C-184-C-185 continuous innovation, 151 calculating,238
for Henkel AG, C-347 guerrilla tactics, 151 costs relative to competitors, 237,238
for Herman Miller Inc., C-344 improving on ideas of rivals, I5I interpreting,239
and industry attractiveness, 237 leapfrogging competitors, l5l profitability relative to rivals, 237,238
in inkjet printer industry, C-218-C-219 lower prices, 150-151 relative to market share, 237,238
forlululemonAthletica,C-7| C-72 preemptivestrike, l5l resourceandcapabilities fit,237,238
in 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 framework
Ebooks, 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,52
Costco, 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 oflocations
Nike, 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 I
Continuous quality improvement, 13 1
Control
in decentralized system, 309
peer-based, 330-33 1
Convenience stores
business model C -257
-C-258
developed by 7-Eleven Stores, C-257
main competitors, C-261
number of7-Eleven stores, C-256
number ofstores, C-261
in Taiwan, C-259-C-261
U.S.-Taiwan comparison, C-259-C-260
Convergence of industries, 160
Cooperative advertising, Herman Miller
Inc,, C-338
Coordination
with channel allies, 132
with suppliers, 132
Core business, concentration on, 167
Core competencies, 93, 107
expioited by entering foreign markets, 180
Core values, 19-20
Costco Wholesale, C- l8-C- 1 9
deflnition,25
examples,25
Google Inc., C-17 0-C-17 |
Henkel AG, C-350-C-351
linked tc vision, 25-26
lululemon Athletica, C-69-C-71
Nucor Corporation, C -236-C-237
role in corporate culture, 346
Starbucks, C-324, C-325
transformed into cultural norms, 347
as rvindow dressing, 25
Zapposrcom,26-27
Corporate brands, 229 230
Corporate citizenship, 27 2
Starbucks, C-328
Corporate culture; see a/so Problem cultures
changing
at Chrysler, 358
difficulties, 354
identifying obstacles, 354-355
making a case for change, 355-356
5ubstantive actions, 356-357
symbolic actions, 357
time needed for, 357
-358
conducive to strategy execution, 345-353
connection to strategy execution process,
349-350
core 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 execution
adaptation, 351-352
high-performing, 351
Henkel AG
bonus compensation, C-353-C-354
performance management,
c-3s 1-c-353
redefining vision and values,
c-350-c-35 1
key features, 344-346
-C-7
I
matched to strategy, 350
mirrored in work environment, 344
Nucor Corporation, C-240
originating with founders or strong
leaders,345-346
putting profit ahead of ethics, 266-268
role of stories, 347
-348
strong-culture companies, 348-3 49
unhealthy types, 352-354
at
rv\I
L. Gore & Associates, 345
weak culture companies, 349
wide variance in, 343-344
Corporate fraud
by banks, 264
Enron,266-268
Corporate governance
and accounting scandals of 2000-2002,37
appraisal of company directors, 37-38
board of directors and, 37-40
failure at Freddie Mac and Fannie Mae,
39-40
guarding against self-dealing, 264
nol-lor-profi I sector. C-200
oversight of compensation, 38
oversight of financial accounting, 37
State Fair ofVirginia, Inc., C-201-C203
Cor p or at e Kn ights magazine 27 4
Corporate parenting
benefits oi 228
examples, 229
identifying underperformers, 230
internal capitai market, 230
value added by', 229
Corporate responsibilit)., 272
CorPorate Responsibility Magazine, 27 4,
c 328
Corporate restructuring, Kraft Foods 2012,
c-296-C-297
Corporate scandals, in greed-driven
companies, 354
Corporate social responsibility
balancing stakeholder interests, 270
definition,2T0
elements of
charitable contributions. 27 I
community sewice, 271
environmental protection, 27 2
ethical principles in operations, 270
work environment,2T2
workforce diversity, 272
Herman Miller Inc., C-335, C-337
sustainable business practices, 27 5-277
and triple bottom line,274-275
Corporate social responsibility strategy
at Burti Bees, 273
company variations, 272
reporting standards, 272
at Starbucks
charitable contributions, C-328-C-329
community involvement, C-328
corporate citizenship, C-328
ethical sourcing, C- 327
-C-328
Corporate strategy
definition, 32
for diversified companies, 215
facets ol T.5-216
Walt Disney Cornpany
acquisitions, C-27 6- C-27 8
allocation of financial resources, C-278
capture synergies, C-278
tocus, L-1,/b
international expansion efforts, C-278
Corporate structure, 306
Corporate venturing, 219
Corrective adjustments, 1 9-20
initiating,36 37
Corruption, in India, C-250
Cost(s)
of ethical wror-rgdoing
intangible,269
internal administrative, 269
visible,269
internal, l0t
lowered by corporate social responsibiliry
279-280
and prices, 97-98
reduced by entering foreign markets, 180
relative to rivals, 237
shrinking differences in, 66
Cost advantage
ofincumbents,54
from price-cutting, 150-l 5i
Cost-based competitive advantage, 7
Cost competitiveness
evaluating, 101
means of improving, 105
Cost-cutting methods, 123-125
Cost differences, l0I
Cost disadvantages, options for remedying,
104
Cost-effectiveness, 98
Cost efficiency, from mergers and
acquisitions, I59-160
Cost-efficient supply chain management,
124
Cost estimates, l0i
Cost-of-entry test
for dirersification, 217
related diversific ation, 221
Cost of sales, Mystic Monk Coffee, C-5
Cost-producing activities, elimination
of, 105
Cost-saving
in customer service, 226
in distribution, 226
in market activities, 225
problem in backward integration, 163
Costs ofproduction
and centralized locations, 198
industry driving force, 66
low at Nucor Corporation, C-232
in low-wage countries, 183
overspending, 135
Cost structure
competitiveness ol 97-108
value chain activities to identif'
components, l0l
Counterfeiting, in luxury goods market, C-78
Couponing, as competitive weapon, 53
Creditors, State Fair ofVirginia, Inc., C-205
Credit 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 financial
resources, 230
Cross-border coordination, 201
Cross-border markets, transfer of expertise
to,209
Cross-business collaboration, 222. 223
Cross-business strategy fit, 309-310
Cross-functional capabilities, 89
Cross-functional teams, Herman Miller inc.,
c-337
Cross-industry strategic fit, 235
CSREurope, 272
Cultural differences
in foreign markets, 187-188
in 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 Kraft
Foods, C-294
Current ratio, 84
Current strategy, in competitor analysis, 72
Customer base, building, 128
Customer loyalty
as barrier to entry, 54
and switching costs, 131
Customer loyalty program
Customer needs, ol locals, 201
Customer relations
Coach Inc., C-80
at lululemon Athletica, C-69
Starbucks, C-329-C-330
Customer service
improved, 131
7-Eleven Stores, C-266-C-268
strategic fit in, 226
Customer service training, at Coach
Inc., C-80
Customer value proposition
competitiveness of, 97-108
definition, l0
in 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
D
Days of inventory, 85
Dealer networks, 55
as competitive weapon, 53
Dealers, bypassing activities and costs of,
t25-126
Debt-equity ratio, 85
Decentralized decision making
advantages, 308-309
basic tenets, 308
capturing cross-business strategic fit,
309-3 1 0
challenge of maintaining control, 309
disadvantages, 308-309
Decision making
centralized, 307-308
decentralized, 308-3 10
in multidomestic strategy, 194
at Starbucks, C-310-C-31 I
in strategic alliances, 171
Defensive strategy options
blocking avenues open to rivals, 154
signaling retaliation, 1 55
timing of
first-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 authority
in 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
Demand
for luxury goods in China and
India, C-78
network effects on, 54
Demand conditions, and national
competitive advantage, 181
Demographics
differences in foreign markets, 187-188
of India in 2012, C-248
industry driving force, 65-66
and market size, I8l
Sift Cupcake and Dessert Bar
customers, C-34
specialty bakery market, C-34
Departmental structure, 304
Department of Agriculture, C-118, C-204
Department of Commerce, C-229
Department stores, decline in market
share, C-82
Deregulation,6T
Design for manufacture procedures, 125
Developing countries
bribery and kickbacks in, 260
business risk vs. opportunities in, 204
exploitation of farmers, C-151-C-I53
strategies 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,205
strategies for local companies
acqursitions, 208-209
business model, 207
Ctrip in China, 208
knowledge of local workforce,
207 -208
rapid 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,182
related and supporting industries, 182
and relative strength ofcountries, 181
Diamonds
characteristics, C-87-C-88
purchasing, C-88 C-89
Differentiation
and buyer bargaining power, 61
and increase in rivalry, 5l
in value chain system, 106
Differentiation based competitive
advantage, 163
I-30 Sublect Index
Differentiation strategy to build shareholder value by Kraft Foods
at BJ's Wholesale Club, C-23-C-24 better-off test, 217 grocery business , C-287, C-2g6-C-zg7
at coach Inc., c-79-c-80 cost-of-entry test,217 ofpizza business, c-290
for competitive advantage,7 industry attractiveness test, 217 ofPost cereals, C-290
customized 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-203
Kodak, 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-22I
Disaster relie{ aided by Equal issues in deciding on Dividend yield on common stock, 85
Exchange, C 156 barriers to entry,220 Divisional structure,305
Dispersal of locations comparative cost,227 DMADV (define, measure, analyze, design,
buyer-related activities, 199 question ofspeed, 220-221 andverify),324
short delivery time, 199 resources and capabilities, 220 DMAIC (define, measure, analyze, improve,
trade barriers, 199 at
Johnson &
Johnson,
248 and control), 324-325
transportation costs, 199 jointventures,2l9 Dominating depth,200-201
Disposable income, in India, C-251 in multidivisional structure, 305-306 Dot-com bubble, C-335
Disruptive technoiogical innovation, C 232 occasions for, 216 Dow
fones Sustainability World I ndex,275,
Distinctive competence, 93, 107, 301 picking new industries, 215 276
Distribution poor cultural fif,248-249 Down-the-line managers, 32
Bayonne Packaging, Inc., C-365 steering resources to attractive units,216 decision making by,308-309
at Costco Wholesale, C- 15 and synergy,217 Due diligence, 218
Panera Bread Company, C-107-C-ll0 wide-ranging possibilities,2lT Dumping,203
Samt Club, C-22 Diversified companies by foreign steel makers, C-229
by 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-136
product licensing, C-50 corporate strategy,215 Netflix in, C-127-C-130, C-136-C-140
wholesale, C-50 drawbacks Dynamic capabilities, 92
Distribution channels allocating financial resources,230 internal development,2g6-297
blpassed in forward integration, 164 demands on management, 231-232 from mergers and acquisitions,2gT-298
China, 181 limited competitive advantage,232 from partnerships,299
Coach Inc. internal capital market,242 Dynamic fit, 12
in China, C-82 new strategic moves Dynamic management, 91-92
factory 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
f
L-
in
fapan, C-81- C-82 restructuring business lineup, 249-250
U.S. wholesalers, C-82 sticking with business lineup, 246 Earnings before interest and taxes, Eastman
dispersal oflocations, 199 parenting advantage,32l. Kodak, C-216
Frog's Leap Winery, C-400 strategy evaluation Earnings targets, short-term, 264-266
India, 181 business unit competitive strengths, Ebooks
lululemon Athletica, C-63-C-64 237-240 benefits of
at 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-32
strategic fit in,226 new strategic moves,245-250 higher returns for authors, C-32
in value chain, 102 nine-cell matrix for, 239-240 economics of
Distribution facilities priorities for resource allocation, asency vs. retail prices, C-31-C-32
ai lululemon Athletica, C-68 244-245 author royalties, C-31, C-32
Under Armour, C-52 resource fit, 242-244 challenge to publishers, C-30
Distributors,55 steps,233 cheap to produce, C-30
b)?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-3I
Diversification, 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-29
Related diversification; Unrelated McDonaldt, C-115 pricing strategy, C-31
diversification in corporate restrtctving,249 as viable alternative, C-28-C-30
acquisition, 218 Eastman Chemical by Eastman Amazon Kindle, C-29-C-30
actions 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,277
Economic 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,274-275
Economic risks, 185 Nucor Corporation, C-238 Environmental proleclion,2T2
Economicvalue added, C 339, C-340 Employees Environmental Protection Agency, C-328
Economies ofscale acting on ideas from,332 Environmental stewardship
caPturing, 123 attracted by corporate social Herman Miller Inc., C-336, C-338, C-339
and centralized locations, 198 responsibility, 279-280 Starbucks, C-328
from entering foreign markets, 180 compensation plans at Nucor, C-237-C-238 Environmental sustainability
from strategic alliances, 191 at Costco Wholesale at Costco Wholesale, C-20
Economies ofscope compensation plan,C-16- C-I7 at Nucor Corporation, C-236
competitive 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-60
definition,227 Costco Wholesale core values, C-19 Esprit de corps,360
and 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 relativism
Education, 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,259-260
Emergent 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-328
Inc.,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,2sg
compensation, 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 of
Henkel 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,347
C-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, 83-84
diverse kinds of, 167 perks and fringe benefits, 331 Financial reporting, oversight oi 37
transferring, 222 Financial management, Herman Miller Inc., Financial resources
transfer to cross-border markets, 209 C-340-C-342 allocation in diversified companies,
Export strategies, 188-189 Financial objectives 244-245
External analysis; see Macro-environment balanced scorecard for, 29 cross-border allocation, 230
External environment,45 definition,23 Financial resources fit
External fit, 12 short- vs. long-term,28 cash cows,242
External 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,243
Bayonne Packaging, Inc., C-361 in diversified companies,243
Face-to-face contacts,359-360 Blt Wholesale Club, C-24 internal capital market,242
Facilities tours, 359-360 Chipotle Mexican Grill, C- I 15-C- 1 16 portfolio approach, 242
Factor conditions, and national competitive Coach Inc., C-75-C-76 Financial services, mergers and acquisitions
advantage, 181 Costco Wholesale, C-8-C-9 1n,247
Factory stores, Coach Inc., C-81 Eastman Kodak, C-219 Firm size,74
Fair 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, I83
competition in, C-163-C-164 C-I64 First-nover advantages
Equal 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 favoring
Fair 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,157-158
social 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 unattractive
Farmers, exploitation oi C-151-C-153 Netflix after strategy shift, C-130 industry, 63
Fast-casual restaurants Nucor Corporation,C-223 definition,49
listing 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, 70-71
and 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 Globalization
Focused strategies, 8 Franchising changing competitive landscape, 179
compared to other strategies, 135-136 lululemon Athletica, C-63 industry driving force,65-66
definition, 122 Panera Bread Company Globaily competitive markets, 52
differentiation, 136-138 company support, C-108 Global positioning systerns, 330
examples, 136 contribution to advertising, C-106 Global strategy
low-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, 195-196
Foreign marketst see also International rvorldwide locations, C-256 value chain activities, 195
expansion Franchising strategies Gold
developing countries examples, 190 price increases, C-89-C-90
competing in, 204-207 problems with, 190 segment of jewelry industry, C-90
strategies for local companies, 207
-209
Freddie Mac, failure of corporate Good Morning America, C-95
economic risks, 185 governance, 39-40 Government investigation ofinside
factors in strategy-making for Free cash flow,86 trading,264
cultural differences, 187-188 Freedom oflnformation Act, C-186 Government policy
demographic 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, 184-185
advantage, 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-388
locating value chain activities, 183-184 Herman Miller Inc., C-340 Granholm v. Hesld, C-405
nlarket 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 crisis
and profit sanctuaries, 201-204 Full-price stores, Coach Inc., C-80-C-81 of2008
reasons for entering Functional-area strategies Greed,264
access to resources and capabilities, 180 definition,34 Greed-driven cultures, 353-354
exploit core competencies, 180 responsibility for, 33 Greenfield ventures
lower 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 product
acquisition ofsubsidiaries, 190 for State Fair ofVirginia, C-206 lndiain2012,C-248
exporting, 188-189 not for-profit sector percentage, C-200
franchising, 189 Gross profit margin ratio, 83
greenfield-ventures,189-190
G
Growth
joint ventures, 190-193 Chipotle Mexican Grill, C-i 14
licensing, i89 Generalized resources and capabilities goals at Starbucks, C-330
strategic alliances, 190-193 ignored in related diversific^tton,222-223 limited opportunities,216
Foreign subsidiarystrategies tlpes o{ 229-Z3O lululemon Athletica, C-59
acquisitions, 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,232
in 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 strategy
allies, 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-Cort
new product technologies, C-61
new stores in North America, C-60
raise brand awareness, C-60-C-61
business plan for, C-37-C-47
options 201 1-20I3, C-40
at Under Armour, C-46
Guerri-lla warfare tactics, 151
H
Health care coverage, at Starbucks, C-32i
High-cost advantage, reallocating, 105
High-performance culture, 35 I
High-powered incentives, 33 I
Hiring policy
at Chipotle Mexican Grill, C-120
at Costco Wholesale, C-18
Equal Exchange, C-154
by Sift Cupcake and Dessert Bar, C-37
Hit-and-run tactics, l5l
Home Show C-333
Horizontal merger and acquisition strategies,
ses also Mergers and acquisitions
Bristol-Myers Squibb, 161
definition,159
Nucor Corporation, C - 228
- C - 23 I
objectives,159-160
reasons for failure, 16l-162
Starbucks, C-3 17-C-318
Walt Disney Comp any, C-27 5,
c-276,C-277
Horizontal scope, 159
Host countries
economic risks, 185
political risks, 184-185
Households, disposable income in
India, C-251
Housing price bubble, 264
Human assets, 87, 88
Human resource management
Equal Exchangc, C- 1 54
Nucor Corporation, C -23 8-C -240
at Sift Cupcake and Dessert Bar,
c-36-C-37
Human resources, 87,88
I
I
i.Cash cards, C-266
Illegal activity
Massey Energy Corporation,
c-389-C-391
poaching rhinos, C-382-C-383
Image,87,88
Imitation
and differentiation strategies, 134-135
difficult for resources, 9l
Immediate industry and competitive
environment,4T
Immigrant labor, Frog's Leap Winery, C-40I
Impact Databank, Review, and Forecast of the
Wine Industry, C-405
Implied social co ntr acl, 27 8
-27 9
Imports of steel into U.S., C-243,C-244
Inc. Magazine, 192
Incentive compensation, 335
Incentive plans, 125: see also Reward systems
acting on ideas from employees, 332
awards and public recognition, 332
financial,331
to focus attention on objectives, 331
high-powered, 33 I
information sharing, 332
inspirational strategic vision, 332
Nucor Corporation, 336
bonus plan, C-237
department manager incentive pian,
c_237
401(k) plans, C-238
production inventive plan, C-237
profit sharing, c-238
senior 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-75
Costco Wholesale, C-8-C-9
Equal Exchange, C-158, C-f64
Frogt Leap Win ery, C-402
Kraft Foods 2012, C-297-C-298
President Chain Stores, C-269
Starbucks 2007-2071, C-306
Tata Motors, C- 248-C-249
Thanksgiving Coffee, C-164
Under Armour, C-45
Incompatible subcultures, 354
Independent actions, 321
India
all-in-one business machine, 207
automobile industry
domestic sales 2006-20ll, C-251
dominant firms, C-250
evolution 1990-2012, C-250-C-251
fuel prices, C-251
highway projects, C-25 I
increased demand, C-251
urban population, C-250
demand for luxury goods, C-78
distribution channels, 181
information technology firms in, 208
macroeconomic conditions
demographics, C-248
disposable income, C-2il.
education, C-250
inflation, C-250
political corruption, C-250
projected growth, C-250
recovery from recession,
c-248-C-250
middle class income, C-252
Indianapolis 500 race, C-86
Industries
attractive, 63
blue-ocean strategy, 152-154
competitively unattractive, 63
convergence of, 160
deciding on means ofentry,215
life cycle of strategy, 8
long-term growth rate changes, 65
regulated, 55
Industry analysis
external environment, 45
immediate competitive environment, 47
internal environment, 45
key success factors, 7 3-7 5
macroeconomic factors, 46-48
outlook for profitabiliry 75
strategic group mapping, 69
-7
I
Industry and competitive environment
assessing,48-49
buyer bargaining power, 60-63
components,4T
price sensitivity, 60-63
profitabiliry 63-64
sellers of substitutes, 56-58
strength of competitive forces, 49*53
supplier bargaining power, 58-60
threat of new entrants, 54-56
Industry attractiveness, 75
evaluating
calculating quantitative scores,
234-235
interpreting scores, 235
-237
indicators,235
nine-cell matrix for strength of,239-240
Industry attractiveness scores
calculating, 234-235
cross-industry st r ategic t:J, 235
and intensity of competition, 237
interpreting, 235-237
matching resource requirements, 235
measures, 235
weighted,236
Industry attractiveness test
for diversification, 217
Industry clusters, 182
Industry concentration, and supplier
bargaining power, 60
Industry consolidation, steel indrstry, C-242
Subiect Index I-35
Industry driving forces Inkjet printer industry competition, C-218 Internally performed value chain
adjusting strategy for, 68 Innovation, 134 activities, 105
assessing impact of,68 as competitive weapon,53 Internal Revenue Code
buyer 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-200
changes societal concerns,6T 7-Eleven Stores, C-264-C-268 and State Fair ofVirginia, Inc.,C-201
concept of,64 striving for, 13I Internal Revenue Service, and not-for-profit
diffusion oftechnical know-how, 66 Innovator\ Dilemi?d (Christensen),C-342 organizations, C-200
entry or exit ofmajor firms, 65 Inputs Internal universities,2gg
globalization,65 access in foreign markets, i83-184 International editions oftextbooks, C-29
innovation,65 differentiation,60 International expansion; see also Developing
Internet,65 high-quality, I31 countries; Foreign markets
long-term growth rate changes,65 67 lower-cost, 125 Coach Inc., C-81-C 82
most common,67 Inside directors, 37 by Costco Wholesale, C-6
reductions in uncertainty and business Inside trading,264 Henkel AG, C-346
risk, 66 Insular cultures, 353 Herman Miller Inc., C-333
regulatory influences,67 Intangible assets Kraft Foods, C-290
on strategic group map, 7l brands, 88 lululemon Athletica, C-59, C-60
technological changes,65 companyculture,83 Netflix, C-130, C-I45-C,146
Industry environment, DVD business company image,88 7-Eleven Stores, C-256, C-259
competitive intensity, C-134-C-136 definition,87 suppliers, 180
distribution channels, C-132-C- 133 human assets, 88 Tata Motors, C-247, C-252
enabling technologies, C-130-C-132 incentive systems,88 Under Armour, C-50-C-51
initiatives to promote streaming, intellectual capital, 88 via joint venture by Nucor, C-232-C-233,
C-133-C-134 relationships,88 C-234
major players, C-133-C-134 Intangible costs of ethical wrongdoing, 269 Walt Disney Company,C-278
shorter studio release times, C-133 Intangible features, 133 International Labor Organization,260
trends 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 strategy
Industry 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 developing
Herman Miller Inc., C-332 differences,262 markets,209
Nucor Corporation, C-220-C-221 between universalism and relativism, 262 Netflix, C-130, C-145-C-146
Tata Motors, C-246 Intellectual capital, 87, 88 Nucor Corporatlon, C-232- C-233
Inflation, in India, C-148-C-250 Intellectualproperty options
Information, and buyer bargaining power, 6l first-mover advantage, 156 global strategy, 195-196
Information 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, 196-197
Information systems Internal administrative costs ofethical 7-Eleven Stores,C-261-C-272
areas covered by, 329 wrongdoing, 269 Starbucks, C-314-C-316, C-330
better 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 I
electronic scorecards,330 cost structure,9T-108 International trade
performance tracking, 325 customervalue proposition, 97-108 and adverse exchange rate
real-time,330 present strategy,8l-86 shifts, i85-187
Information 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-229
Infrastructure, and national competitive SWOT analysis, 92-97 Internet
advantage, 181 Internal capital market, 230 consumer information from, 61
Inimitability definition,242 industry driving force,65
and differentiation strategies, 733-134 Internal cash flow,86 net neutrality, C-182-C-183, C-186
ofresources,9o Internal costs, 101 Interstate commerce, C-405
Initial public offering Internal development, 219 Inventory management
Chipotle Mexican Grill, C-l15 Internal development of capabilities Coach Inc., C-79-C-80
Dutch auction by Google, C-169-C- 171 fine-tuning,297 lululemon Athletica, C-64-C-65
Herman Miller Inc., C-333 incremental and complex process, 296 Under Armour, C-52
by 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,6T
Investment fraud definition, 73 Lifestyles ofHealth and Sustainability, C-395
Madoff Securities, 265 full capacity utilizat\on,7 4 Line-and-staff structure, 304
Stanford Financial Group,265 importance for competitive success, Liquidity ratios, 84
Investment opportunities, 215 73-74 Litigation by Tiffany against eBay, C-88
Inwardly-focused cultures, 353 network ofdistributors, 74 Loans
ISO 9000 standards, C-232 for strategy-making,74-75 from Small Business Administration, C-33
ISO 9001 standards, l3l superior differentiation, 74 to State Farr ofMrginia, Inc.,C-204
ISo I 4000 standards, C-232 variation by industry, 74 Lobbying by Google Inc., C- I 86
ISO 26000 standards,272 Kickbacks Local companies vs. multinational
Italy, engine technological district, i82 areas predominant in,260 corporations in developing countries,
and codes ofethics,26l 207-209
and 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-123
C-90 for competitive advantage
competitors in, C-91-C-94 concentration, 198-199
decreasing 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'109
C-89-C-90 Labor costs 7-Eleven Stores
expected increase in outlets, C-90 in China,208 in Taiwan, C 261 C-264
gold price increases, C-89-C-90 country differences, 65 in United States, C-257
sales by major retarlers, C-95 in low-wage countries, 183 Starbucks stores, C-315
Tiffany & Company, C-84-C-87 in steel industry, 336 Logistics, 7-Eleven Stores, C-268
wage 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 leadership
drawbacks, 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-12
economies 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 achieving
examples, 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, 123,124
Nucor 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, l2I
Starbucks, 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 market
aggressive competition, C-73
Coach Inc. in, C-73-C-83
consumer spendingin 2011, C-77
counterfeiting problem, C-78
demand in emerging markets, C-78
diamond industry, C-87-C-89
in financial crisis of 2008, C-77
leading brands, C-77
main categories, C-77
main competitors, C-77
market shares, C-73
sales, C-73
Tiffany & Company in, C-84-C-87,
c-9r-c-9s
U.S. jewelry industry, C-89-C-91
variety ofproducts in., C-90-C-91
M
Macro-environment
competitive environment, 48-64
competitor analysis, 71-73
components of,47
definition,46
disruptive change in, 36
economic conditions, 46, 48
environmental forces, 46-48
industry driving forces, 64-68
key success factors, 73-7 5
legal and regulatory factors, 46-48
market position of rivals,68-71
outlook for profitability, 75
PESTEL analysis, 46
political factors, 46, 48
sociocultural forces, 46, 48
strategically relevant factors in, 46 48
technological factors, 46-48
Management
at Chipotle Mexican Grill, C-l 19 C-120
choices in how to compete, 4
crafthg and executing strategy, 13
dynamic,9T-92
at Equal Exchange, C-150-C-151
fiduciary du!l,257
Frog's Leap Winery, C-399-C-400
at Starbucks, C-329
-C-330
strategy issues meriting attention, I 1 I
time demands by subsidiaries, 231-232
Management by walking around, 359-360
Bavonne Packaging, Inc., C-360-C-368
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 I
Management teams, 292-293
Managers
basic tasks for strategy execution
in big companies, 290
necessary internal changes, 288-289
in small companies, 290
capturing benefits of process management
tools,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
Manufacturing
advantageous value chain locations,
183 184
China as capital ol 183
cross-border coordination, 20 I
global, by Tata Motors, C-246
outsourced by lululemon Athletica, C-68
strategic fitin,225
Manufacturing execution systems software,
125
Market(s), expansion by Starbucks, C-3 1 I
Market capilalization, Apple Inc. in
2012, c-r87
Market conditions, in foreign markets,
187- 188
Marketing
Chipotle Mexican Grill, C- 120-C- I 2 r
community-based at lululemon Athletica,
c-68
emphasis on, 131
by Equal Exchange
advertising, C-I55
fundraising, C-156
interfaith program, C-156
product variety, C-156
Panera Bread Company, C-105-C-106
-226
Marketing innovations, industry driving
force, 66
Marketing research
Coach Inc., C-74
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 Armour
advertising and promotion, C-50
retail marketing, C-49-C- 50
sports marketing, C- 47
-C-
49
Marketing vice president, role in strategy-
making,3l
Market 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 position
defensive strategies to protect, 1 54- 1 58
dominating depth, 200-20 I
Google Inc., C-168
Kraft Foods, C-294
in multidomestic strategy, 193-194
offensive strategies to improve, 150-158
of rivals, 68-7 I
strengthening
by mergers and acquisitions, 159-162
by outsourcing, 1 66- l 68
by scope of operations, 1 58
by strategic alliances, 168-174
vertical integration strategies, 1,62-166
Market share
ofbig box stores, C-94
browser market, C-I82
Coach 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-182
search engine market, C-183
smartphones, C-I81
from guerrilla tactics, 151
leading PC vendors, C-l9l
relative to rivals, 237
in search engine market, C-183
7-Eleven Stores, C 267-C-268
smartphones, C-l8l
smartphone 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, 133-134
Materials handling, reducing, 126
Matrix structure, 306 -307
Membership
Bf
's
Wholesale Club, C-24-C-25
at Costco Wholesale
base, C-15-C-16
I-38
Subject Index
Membership-Con r.
demographics, C- 15-C- 16
size of, C-6
Sam's Club, C-21
Merger, 159
Mergers and acquisitions; see also
Acquisitions
acquiring capabilities through
difficulty, 397
-298
occasions for, 397
expanding horizontal scope, 1 59
in financial services, 247
horizontal, 159-762
by local companies in developing
countries,209
objectives
complementary resources/capabilities,
160
cost efficiency, 159-160
geographic coverage, 160
leading industry convergence, 160
new product categories, 160
new technologies, I60
reasons for failure, I6I-162
versus strategic alliances, 168, 17Z
M-forms,305
Mine Act of 1977, C-388
Mine Improvement and New Emergency
Response Act, C^388
Mine Safety and Health Administration,
c-388, C-390
Mission
Equal Exchange, C-151
lululemon Athletlca, C-62
not-for-profit sector, C-200
State Fair ofVirginia, Inc., C-200-C-20I
Sustainable Winegrowing
Program, C-396
Under Armour, C. 45-C-46
Mission statement
definition, 24
examples,24-25
and profit-making,25
Starbucks, C--324, C-325
Zappos.com,26-27
Mobile phone use, 158
Mobihzing for excellence
celebrating success, 361
compensation incentlves, 36 1
and consequences for poor
performance, 361
empowerment,360
focus on strategic objectives, 360
fostering esprit de corps, 360
motivational techniques, 36 I
treating employees as partners, 360
using process management tools, 360
Monitoring developments, 1 9-20
Monitoring employee performance, 330-33 1
Moral case for corporate social
responsibility, 27 8-279
Motivational practices; see Incentives
Motivational techniques, 36 1
Motivation of employees, 125
Movie industry
decline in profitability, C-217
DVD rental business, C-130-C-136
shift to digital technology, C-217
trends in home viewing, C-133-C-134
use of Kodak film, C-217
Walt Disney Company in, C-273-C-274,
c-28r-C-282
Multidivisional structure, 305-306
Multidomestic strategy
advantages and disadvantages, 197
definition, 193
drawbacks, i95
strengths, 193-194
think local, act local approach, t-94-195
Multinational corporations
problem ofbribery and kickbacks,
260-26r
problem ofethical relations, 261
strategies for local companies against
acquisitions, 208*209
business model,207
knowledge of local workforce,
207_208
rapid-growth strategy, 208-209
Multiplant operations, Herman Miller Inc.,
c-333-C-334
Mutual restraint, 203-204
N
Napa Valley wine industry, C-392-C-399
NASDAQ, C-19
National Environmental Management Act,
South Africa, C-370
L\aturat resoufces, 275
Net income, Coach Inc., C-73
Net neutrality, C- 182-C-183, C- I86
Net profit margin, 83
Net return on sales, 83
Net return on total assets, 83
Net sales, byApple Inc.2009-2011, C-190
Network effects, as barrier to entry, 54
Network structure, 310
New customers, in foreign markets, 179
Neu'entrants
and Darners to entry, 54-55
as competitive threat, 54
defenses by incumbents, 54
factors affecting threat of, 56
and strength of rivalry, 5 1
New product categories, from mergers and
acquisitions, 160
New product launch
Apple iPad, C- 192-C-193
Apple iPod, C- 188-C- 189
New textbook editions, C-28-C-29
easily updated as Ebooks, C-32
New venture development, 2 l9
New Yorker, C-220
New York Times, C-400
Next-generation products. I 5l
Nicaragua, embargo in 1980s, C-149
Nine-cell industry attractiveness matrix,
239-240
No-layoffpolicy, 336
Nonfinancial resources fit
guard against overtaxing resources, 244
matching resources and capabilities,
243-244
Nonprofit locations, Panera Bread
Company, C-105
Non-substitutable resources, 9 1
Not-for-profit sector
Chapter 1 1 bankruptcy option, C-200
Chapter 7 bankruptcy option, C-200
characteristics, C- 199-C-200
corporate governance, C-200
dissolution of, C-200
gaining tax-exempt status, C-199-C-200
mission, C-200
percentage ofGross domestic product, C-200
restriction on profit uses, C-200
State Fair ofVirginia, Inc., C,198-C-210
Obama administration, C-182
Objectives, 19 20
balanced scorecard method, 29
ofbenchmarking, 103
in competitor analysis, 72
conflict in strategic alliances, 19l-I92
deadlines in,27
definition, 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 options
blue-ocean strategy, 152
- I54
choosing basis for attack, 150-152
choosing rivals to attack, 152
principles, 150
timing of, 155-158
first-mover advantages, I 55- 1 56
fi rst-mover disadvantages, 1 56
Iate-mover advantages, 156
pros and cons for first movers,
Office furniture industry
effect of recession, C-344
Herman Miller Inc. in, C-330-C-344
need for ergonomically correct
function, C-344
and telecommuting trend, C-344
Office oI Federal Housing Enterprise
Oversight, 39
One-business company, strategy-making
in,215
Online sales
consumer products, C-26
Costco Wholesale, C- 14-C- l5
of diamonds, C-88
International editions of textbooks, C-29
new textbook editions, C-28-C-29
Online systems, 328
Online training courses, 65, 299
Online virtual textbooks
e1'fect on publisher-professor relations,
c-27
McGraw-Hill Connect, C-27
McGraw-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
Netflix, C-131
Operating profit, 83
Operating strategies
definition,34
Operating systems
better strategy execution, 329
company examples, 328-329
performance tracking, 325
Operation Perfect Hedge, 264
Operations
Bayonne Packaging, Inc., C-364-C-366
Chipotle Mexican Grill, C- 1 16-C- I 19
at Eastman Kodak, C-216-C-217
ethical principles in, 27 0
full-capacity, 124
Sams Club, C-21- C'22
scope narrowed by outsourcing, 166-168
at Starbucks, C-327
State Fair ofVirginia, Inc., C-201
streamlining, 126
Organic foods, C-1I8
Organizational learning, 35-37
Organizational levels, objectives for all,
29-30
Organizational structure
15,/- 158 detlnltlon. J(Jz
Subiect Index l-39
risks on, L67-168
and scope of the firm, 159
streamlining internal operations by,
30 1 -302
by Under Armour, C-51-C-52
Overspending, 135
D
I
Paper packaging industry
Bayonne Packaging in, C-359-C-368
growth 1980s- 1990s, C-359
Parenting advantage, 23 I
Parenting capabilities, 229
-230
Partial integration, 162
Partnerships
to add capabilities, 302
facilitating collaboration with, 310
in stralegic alliances, I7l
Patent protection, 156
Patents held by Eastman Kodak, C-219
Peer-based control, 330-331
Penalties for wrongdoing, 269
Per capita Gross domestic product, India in
2012, C-248
Performance
of collection of businesses, 2 l6
of substitutes, 58
Performance evaluation, l9-20
of 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-353
Performance measurement, by balanced
scorecard, 29
Performance metrics, 3
Performance monitoring, 330-33 I
Performance targets, 28
companl.'r,vide, 243
Starbucks, C-330
Performance test, l2
Performance tracking, 329
-33
I
Perks,331
Personal computer industry
competitive position of Apple, C-192
competitors for Apple Inc.,
c-r93-C t94
effects of recession, C- 192
market shares ofleading vendors, C-I9l
overview of, C-790-C-192
Personal gain, pursuit of, 264
PESTEL,46,48,75
Piece-rate incentive plan, 336
Planet, in triple bottom line, 274
Plant closings, Henkel AG, C-349-C-350
delegation of authority
centralized decision making, 307-308
decentralized decision making,
308-310
designing, 302-303
facilitating collaboration, 3 I 0
functional, 304-305
Kraft Foods, C-287
matched to strategy
collaboration, 3 l0
delegation of authority, 307-3 l0
outsourcing value chain activities,
300-30 1
matrix, 306-307
multidivisional, 305-306
network structure, 310
Nucor Corporation, C -23 6
-C-237
Robin Hood, case, C-300
simple,304
strategy-supportive, 291
for structuring work effort, 3 1 0-3 I I
Organizational units
reallocation of operating funds, 3 l8
resource distribution across, 318
Organization for Economic Cooperation and
Development, anti-bribery
standards,26l
Organizations
ambidextrous, 325
key actions for strategy execution,
290-292
capturing resources and capabilities,
)ot )o)
staffing, 291-292
structuring work effort, 29 1
value chain activities, 291
st^ffing,292-295
Orientation sessions, 299
Outside directors, 37
outsourcing, 105
to access capabilities, 299
by Apple, Inc., 303
by Coach Inc., C-79
cost advantages, 125
definiiion, 166-167
versus internal performance, 300-302
ofless important activities, 302
by lululemon Athletica, C-68
reasons for
access to diversified expertise, I67
activity 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,383
Policies to facilitate strategy execution,
319-321
Political forces, 48
Political risks, 184-i85
Politicized cultures, 353
Ponzi schemes,265
Population, oflndia in 2012, C-249
Portfolio appr o ach, 242
Poverty, and child labor, 260
Preemptive strike, 151
Pre-ordering, C,266
Prepaid phone cards, C-266
Pressure grottps,279
Price(s)
basis ofcompetition in developing
countries, 205
and costs, 97-98
lowballing on, 151
lower,150 151
of substitutes, 57
in 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, 53
Price premium, too high, 135
Price sensitivity, of buyers, 6t-62
Price-to-earnings ratio, 85
Price wars, 52
Pricing strategy
Coach Inc., C-74
Costco Wholesale, C-9-C-10
Nucor Corporation, C-226-C-228
Tata Motors, C-252
Primary value chain activities, 98
distribution,99
to identi$' cost structure components, 101
operations, 99
sales and marketing, 99
service, 99
supply chain management, 99
Printing press industry, C-218
Private brands, at BJ's Wholesale Club, C-23
Proactive strategy, 8-9
Problem cultures
change-resistant, 3 52
-3
53
changing
difficulqr,354
identifring obstacles, 354-355
making a case for change, 355-356
substantive actions, 356-357
symbolic actions, 357
time needed, 357-358
greed-driven, 353-354
incompatible subcultures, 354
rnsular. J5.t
politicized,353
Procedures to facilitate strategy execution,
319-32I
Process management tools
best practices, 32I 322
business process reengineering, 323-324
capturing benefits of
managerial actions, 327
-328
specifying outcomes, 327
Six Sigma quality control, 324-326
total 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, 204
tangible features, 133
trivial improvements, 135
with upscale attributes, 140
Product attributes, ability to match rivals,
237
Product design
Coach Inc., C 74
at Herman Miller Inc., C-333
lululemon Athletica, C-6-C 67
at Under Armour, C-5I
Product development
lululemon Athletica, C- 6-C-67
strategy, 34
Product differentiation, 128
Coach Inc., C-79-C-80
and rivalry, 5 I
superior, T4
Product innovation, industry driving
force,66
Production
cross-border coordination, 20 1
Herman Miller Irc., C-338-C-339
outsourced by lululemon Athletica, C-68
outsourcing by CoachInc., C-79
Panera Bread Company, C-107-C-1 10
at Starbucks, C-327
Tata Motors, C-253
Production capacity, and strength of
rivaky,52
Production technologies, 125
Production vice president, role in strategy-
making,31
Product licensing, by Under Armour, C-50
Product line
Apple computers, C-192
Apple's early releases, C-188
Applet post-2000 releases, C- 188-C- 1 89
Bf's Wholesale Club, C-23
Loactl lnc., (-
,/9
Costco Wholesale, C-10-C-1 1
Equal Exchange, C 156
Frog's Leap Winery, C 399
Google Inc.. C- 17 I
-C-
t7 5
Henkel AG, C-348
Kraft Foods, C-289, C-29 I
-C-292
lululemon Athle tica, C - 66
Nucor Corporation
gradual expansion of, C-222
steel making, C-225 C-226
steel products, C -222
-C
-225
Samt Club, C-21
Under Armour
accessories, C-47
apparel, C-46-C-47
footwear, C-47
Walt Disney Company,C-282-C 283
Product presentation, by Under Armour,
c-49-C,50
Product redesign, 105
Product versioning, 131
Profit
Apple Inc. tn 2012, C-187
credit rating and decline in, 265
growth requirem enls, 228
and mission statements, 25
Nucor Corporation, C-22I
in triple bottom line, 274
uses by not-for-profit sector, C-200
Profitability
in developing co untr ies, 20 6
-207
eroded by overspending, 135
eroded by supplier bargaining power, 58
versus ethics, 266-268
and five-forces model of competition,
63-64
identifring threats to, 94-96
limited by buyer bargaining power, 60-61
outlook for, 75
problem in baclaarard integration, 163
relative to rivals,237
restaurant business, C-112
from strategic fit,226
Profitability ratios, 83-84
Profit formula
definition, 10
Sirius XM vs. over-the-air
broadcasters, 1 1
Profit margins
component ofvalue chains, 100
in retailing, 71
Profit potentiai on strategic group map,
70-71
Profit sanctuaries
as competitive asset, 203
cross-market subsidization, 203
to defend against rivaIs,203-204
definition,20l
for domestic-only companies, 202
and dumping,203
examples, 201-202
for global companies, 202
for international companies, 202
to wage strategic offensive, 203
Profit sharing, Herman Miller Inc., C-339
Promotion
BIt Wholesale Club, C-25
Under Armour, C-50
Promotion from within, 331
Property rights protection, first-mover
advantage, 156
Proprietary know-how, problem in licensing
strategies,189
Psychology of Achievement (Tracy), C-69
Public recognition, 331
Punishment and rewards, 332-334
Purchase, option to delay, 61
Purchasing power, from entering foreign
markets, 180
Purchasing power parity India in 2012, C-248
Quality
continuous improvement, l3l
of substitutes, 58
Quality
assurance, Under Armour, C-51
Quality
control
Bayonne Packaging, Inc., C-360
business process reengineering, 323
-324
at Chipotle Mexican Grill, C-l19
at Nucor, C-232
processes, l3l
Six Sigma programl 324-328
total quality man agement, 324
Quality
of life, 272
R
Radio, Walt Disney Company in,
c-278-C-280
Rapid-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-149
Realized strategy, 9
Real-time information systems, 330
Rebranding, by Under Armour, C-44
Recession, effect on Herman Miller
Inc., C-335
Recognition program, at Starbucks,
c,323-C-324
Recruiting
capable employees, 293-295
at Costco Wholesale, C-18
at Procter & Gamble, 294
Recycling program, Herman Miller
Inc., C-337
Regulatory forces, 48
impact on industry practices, 67
Related and supporting industries, and
national competitive advantage, 182
Related businesses, 221
Related diversifi cation, 217
combined with unrelated
diversification, 233
competitive adv antage fr om, 226
cross-business collaboralion, 222
examples, 222-223
exploiting brand name recognition, 222
in multidivisional structure, 305-306
specialized resources and capabilities,
222-224
strategic fit, 221-222
along value chain, 224
-226
economies of scope, 226-227
leading to competitive advantage, 227
value chain actiities, 222
value chain match up,222
Walt Disney Company
acquisitions, C-27 3, C-27 6,
c-276 c-277
consumer produ cfs, C -282
- C -283
interactive medi a, C-283-C-284
media networks, C-27 8-C-280
parks and resorts, C-280-C-281
studio entertainm ent, C-28I
-C-282
Related-unrelated diversification
strategies, 232
Relationship managers, 310
Rental textbooks, C-28
Reporting stand ar ds, 27 2
Reputation
and brand image, 237
damaged by wrongdoing, 268-269
first-mover advantage, 155
tied to corporate social responsibiliry 279
Reputational assets, 87, 88
Research and development, 131, 309-310
in global strategy, 196
at Herman Miller Inc., C-342
locations in foreign markets, 184
Resource allocation to subsidiaries, 244
Resource and capability analysis, 107
assessing competitive power, 89-91
for best-cost provider strategies, 140
definition,86
for differentiation strategies, 133
Subject Index l-41
dynamic management, 91-92
identifying capabilities, 88-89
identif ing resources, 86-88
VRIN tests for competitive advantage,
90-9r
Resource-based competitive strategies,
r43-144
Resource bundles, S9
Resource fit
definition,242
financial resources, 242-243
nonfinancial res ow ces, 243
-244
in 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 318-319
causal ambiguity,90
competitive attack based on, 150
competitively more valuable, 87
competitively superior, 9l
definition,87
in diversification decision, 220
dynamic management, 91-92
gained in foreign markets, 180
generalized vs. specialized, 222-223
hard-to-copy, 90
intangible, 87-88
oflocal companies in developing
markets,209
reason for concentration oflocation, 199
related to value chain activities, 107
required in forward integration, I65
shared for competitive advantage
to achieve dominant depth,200-2Ol
examples,200
potential problems, 201
social complexity, 90
steered to attractive business units, 216
for strategy exec fiion, 29 |
-292
strategy-supportive, 291
for sustainable competitive advantage,
89-91
tangible,8T-88
valuable, in diversified companies, 237
Resource shifting, 318
Restaurant industry
changing consumer tastes, C-l 12
Chipotle Mexican Grill, C-l l4-C-123
competitiveness, C- I 12
consumers, C-125
fast-casual segment, C- 100-C- 102, C- 125
Moe's Southwest Grill, C-124
number of employees, C- 112
number of establishments, C- I I2
number of estabiishments in U.S., C-125
profitabiliry C-l12
l-42
Subject Index
Restaurant industry
-Cont.
promotions, C-112
Qdoba Mexican Grill, C-I24-C-\25
sales in 20i2, C-124
spending in, C-1 12
Taco Bell, C-123-C-t24
Restructuring, 230, 247
-249
of business lineup, 249-250
at Eastman Kodak, C-216-C-2I7
at Kraft Foods,250
reasons for, 249
Retail distribution, lululemon Athletica,
c-63-C-64
Retailers/Retailing
bargaining power, 61
blpassed in forward integration, 164
carrying Under Armour products, C-50
competitive profit margins, 7t
decline ofdepartment stores, C-82
lululemon Athletica, C- 64-C- 65
securing shelf space from, 55
Under Armour, C-49-C-50
Retraining, 299
Retrenching, 249-250
Return on assets, 83
Return on capital employed, 84
Return on invested capital, 84
Return on investment, from entering foreign
markets, 179
Return on sales, 83
Return on stockholders'equity, 84
Revenue enhancement, 280
Revenue recognition, Bayonne Packaging,
Inc., C-360
Revenues
Apple Inc. in 2012, C-t87
Chipotle Mexican Grill, C- 114
decline at Eastman Kodak, C-219
Dell Inc. 2007-2012, C-294
Google Inc., C-178
Hewlett-Packard 2007
-2012. C-293
Kraft Foods in 2012, C-287
Massey Energy Corporation, C-385
at Netflix, C-127
7-Eleven Stores, C-268
sources for Google Inc., C-172-C-179
Under Armour, C-46
Walt Disney Company, C-27 3
Reward systems; see also Incenlives
balance between rewards and
punishment, 332-334
compensation guidelines
achievable outcomes, 334-335
awarding results, 336-337
communication to employees, 337
extended to all workers, 335
objectivity and fairness in, 335
performance bonuses, 335
time factor, 336
Nucor Corporation
bonus plan, C-237
department manager incentive plan,
c-237
401(k) plans, C-238
production incentive plan, C-237
profit sharing, C-238
senior officer incentive plan, C-237
at selected companies, 333
at Starbucks, C-32I-C-324
Rhino sales, hunting, and poachrng, case
animal supermarket, C-383
conservation responsibilities, C-384
estimated population, C-370
hunting, C-377-C-382
and Kruger National Park, C-369-C-370
number ofarrested poachers, C-383
poaching, C-382-C-383
safari companies, C-37 7
-
C- 382
South African National Parks
captures, C-369, C-37 2
-C
- 37 7
Environmental Crimes Unit, C-382
game capture organization, C-372
justification
of selling rhinos, C-383
operating expenses of capture, C-373
Veteri nary Wildlife Services,
c-373-C-375
views on hunting. C-371
Risk reduction, reason for unrelated
Risks, in strategic alliances with foreign
partners
conflicting objectives, 191-192
cultural barriers, 191
loss of competitive advantage, 192-193
overdependence, 193
transaction costs, 191
Rivalry
among 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; Competitors
blocking avenues open to, 154
chosen for attack, 152
comparing value chains of, 101
competitive analysis of, 71-73
competitive intelligence on, 7 I-7 3
ethics of competitive intelligence on, 73
improving on ideas of, 151
likely moves by, 7l
market position, 68-71
mutual restraint amorrg, 204
signaling retaliation against, 1 55
using profit sanctuaries
to defend against, 203
-20
4
for strategic offensive against, 203
weaknesses or strengths in relation to,
108-111
Rolling Stone, C-386
Runner-up firms, 152
Russia, McDonald's in, 206
)
Safari companie s, C-37 7 -C-382
Sales
Apple Inc. 2009-201 1, C-190
business unrts at Eastman Kodak,
c-2I5-C-216
Coach Inc., C-73
Costco Wholesale, C-6*C-7
ancillary businesses, C- I I
by product category, C- I 1
domestic vehicles in India 2005-2OII, C-251
in jewelry industry by major retailers, C-95
Nucor Corporation
by product category 1990-2011, C-227
by product category 20Il-20I2, C-228
Panera Bread Company, C- 1 13
Qdoba Mexican crill, C-125
straiegic fit in, 225-226
Taco Bell, C-123-C-124
Tata Motors 20II-2012, C-254
Tiffany & Company, C-86
U.S. restaurants, C-1 12
Sales growth
Chipotle Mexican Grill, C- I i5
iquat .b,xcnange. L-15,/
at Equal Exchange, C-149
Sales management, Bayonne Packaging, Inc.,
c-362-C-36s
Sarbanes-Oxley Act, 37, 262 -263
Scanlon Plan, C-333
Scope ofthe firm
definition and description, 158-159
horizontal, 159
vertical,159
Search engine market shares, C-183
Seattle Times, C-307
Secret, The (Byrne), C-69
Securities and Exchange Commission, 263,
c-19, c-336
Diebold 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 responsibility
280-28 I
and corporate governance, 38
damaged by company wrongdoing, 269
in Under Armour, C-44
Shareholder value
goal 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 -328
companies 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 contract
lmplicit, 278-279
integration 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 Africa
estimated rhino population, C-370
Kruger National Park, C-369-C-372
National Environmental Management
Act, C-370
safari companies, C-37 7 - C-382
South African Police Service, C-382
Specialized resources and capabilities,
222-223
Specialty bakery market, C-33-C-34
Speed in diversification d ecision, 220-221
Spinoff,247
Sports marketing
by Tiffany & Company, C-86
by Under Armour, C-47 -C-39
Stabilization, reason for unrelated
Staffing
common practices, 295
recruiting. training. and retraining
employees, 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,
278-279
Standardization, in global strategy, 196
Standards wars, 156
Startups
barriers to entry,2l7
internal,2l9
State laws on sales ofalcoholic beverages,
c-40s
Statement of operations
Statistical information, 330
Steel industry
competition in U.5., C-244-C-245
consolidation by Nucor, C-228-C-23 I
in financial crisis of2008, C-242
glut of imports, C-228-C-229
industry consolidation, C-242
major exporting countries, C-242
mini-mills, C-241-C-242
Nucor Corporatton, C-220 C-245
production by countrY, C-240
technologies, C-241-C-242
top 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
Coach Inc., C-7 3, C-7 4, C-7 6
Google Inc., C-172, C-179
at Netflix, C-127
Panera 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, lululemon
Athletica, 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
Stores
Chipotle Mexican Grill
development and construction costs,
c-122-C-r23
site selection, C- 1.2I
-C-
122
Coach Inc.
factory outlets, C-8 I
full-price, C-80-C-81
by geographical region, C-80
lululemon Athletica, C-64-C-65
Panera 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-330
licensed, C-314
number of, C-305
Store showroom strategy, lululemon
Athletica, 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 of
decision-making
Process,
l7l
information 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, l7l
characteristics, 168- 169
common reasons for, 170
definition, 168
to enter foreign markets
economies of scale from, 191
gain in technical expertise, 191
risks,191-193
sharing distribution networks, l9l
wide use ol 190
examples, 170
facilitating collaboration with, 3 10
joint ventures, 169
loss ofproprietary knowledge, 172
management as organizational
capabllity,174
versus mergers and acquisitions, 168
more common in Asia and Latin
America, 183
Nucor Corporation, C-232-C-233,
c-234
number of, 169-170
purposes, 169
requirements for success
credible commitment, 173
learning process, I73
management system,173
safeguards, 173
trust,173
7-Eleven Stores, C-259, C-26I
-C-27
2
by Solazyme, 192
for strong industry position, 170
technological advances, 1 69
time span o{ l7l
unrealized gains, 172
versus vertical integration, 168
Strategic balance sheet, 93
Strategic direction, board guidanc e,37
-38
Strategic fit
along value chain
customer service, 226
distribution-related, 226
manufacturing-r elafed, 225
sales and marketing, 225-226
supply- chain activitles, 224
-225
technological activities, 225
benefiting from, 237
competitive value of diversified
companies, 241
cross-industry, 235
definition,22l 222
and economies of scope,226-226
leading to competitive advantage, 227
limited in unrelated diversification, 232
profitabihty from, 227
shareholder value from, 227
in value chain activilies,222
Strategic group, 69
Strategic group map(ping)
constructing, 69
definition,6S
example, T0
guidelines,6g
value of
effect of industry driving forces, 71
identifying rivals, 70
Prollt
prospects,,/U-,/I
Strategic leadership, Steve
Jobs
at Apple,
c-188-C-189
Strategic objectives
balanced scorecard for, 29
definition,28
as motivation, 360
short- vs. long-term, 28
tlpes of,29
Strategic offensives
based on strongest competitive assets, 150
options
basis of attack, 150-152
blue-ocean strategy, I 52- 154
choosing rivals to attack, 152
principles of, 150
timing of, 155-158
Strategic options, Coach Inc.
build market share, C-73
in future, C-82-C-83
raise brand awareness, C-73
target men as customers, C-73
Strategic plan, 20, 35
Strategic thinking,45
Strategic vision, l9-20
Carmelite monks of Wyoming, C-3
communicating, 21-22
definition, 2l
distinctive and specific, 2 1
dos and donts, 22
examples,23
expressed as slogan, 24
significance of,24
stated in inspirational terms, 332
in strategic plan, 35
to win support of organization members,
2L-22
Strategy; see also Defensive strategy options;
Offensive strategy options
about competing differently, 4-5
blue-ocean strat egy, 1 52-l 5 4
and business model, 10
choices involved in, 4
for competing in developing countries
business risk vs. opportunities, 204
changing local markets, 206
low price, 205
modifying business model, 205-206
places to avoid, 206-207
tailoring products, 204
Yum! Brands in China,205
and corporate social responsibiliry
272-275
corrective adjustments, 361
-3 62
definition,4
deliberate, 9
direction and guidance from, 4
diversity of, 4
effectiveness of
financial ratios for, 82-86
key components, 81-82
specific indicators, 82-83
effects of change at Netflix
damage control, C-128-C-I29
negative customer reaction, C-127
problem with Starz, C-127-C-I28
reversal of strate gy, C- 129
-C
-130
stock price slide, C-127
emergent,9
evaluation of diversilied companies
business unit competitiveness, 237
-240
competitiveness fit, 241
industry attractiv eness, 23 4
*237
new strategic moves, 245-246
priorities for resource allocation,
244-245
resource fir,242-244
steps, 233
evolution over time, 8
for future ofState Fair ofVirginia,
c-207-c-2I0
identifying characteristics, 5
issues meriting management
attention,11l
lor local companies in developing
countries
acquisitions, 208-209
business model,207
Ctrip in China,208
local workforce, 207
-208
rapid- growth str ategy, 208
-209
market opportunily and, 9 4
matched to competition, 64
at McDonald's,6
mergers and acquisitions, 159-162
objectives,4
options for entering foreign markets
acquisitions, 1 90
exporting, 188-189
franchising, 189
greenfield ventures, I 89- 190
joint ventures, 190-193
licensing, 189
strategic alliances, 190- 193
subsidiaries, l39 I90
outsourcing, I66-168
proactive,8-9
quest for competitive advantage, 5-8
reactive, 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 from
partners, 302
creating distinctive competence, 301
streamlining operations, 301 -302
building blocks of organizational
structure, 303-304
Strategy execution
Apple Inc., C-18i-C-182, C-L92-C-193,
c-195
aspects 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-92
competitive advantage from, 300
corporate culture as ally in, 349-350
Costco \{4rolesale
growth, C-12-C-13
growth strategy, C-12 C-13
1ow-cost emphasis, C-12
marketing and advertising, C-13-C-14
pricing, C-9-C-10
product selection, C- l0-C- I I
supply chain and distribution, C-15
lreasure hunt merchandisi ng.
c-ll-c-12
website 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,
328-331
integrated tasks for, 20
leadership of,358-362
lululemon Athletica
chiefcomponents, C-63
community-based marketing, C-67
distribution, C-67
product design and develoPment,
c-66-C-67
product 1ine, C-66
retail distribulion and store expansion.
c-63-c-64
retail stores, C-64-C-66
sourcing 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-I30
Nucor Corporation
growth by acquisitions,
c-228-c-23r, c-235
growth via joint ventures,
c-232-C-233
low-cost production, C'232
new technologie s, C23I -C-232
plant constructio n, C23 I
-C-232
raw materials strategy, C-233 -C-235
shift to value-added products,
c-235-c-236
policies and procedures, 319-321
problems at Bayonne Packaging, Inc.
quality control, C-360
sales management, C-362-C-365
scheduling, C-366-C-368
process management tools
best practices, 321-322
busi ness process reengineering.
323-324
capturing benefits of, 327 -328
Six 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,299
Sam's Club, C-21-C-22
7-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-268
in small companies, 290
Starbucks
acquisition of Seattlei Best.
c-317 c-318
acquisition of Tazo Tea, C 3I7
agreement with Kraft Foods, C-317
debit cards, C-317
joint 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-86
top-down guidance,3l9
and type of organizational structure,
300-307
Under Armour
growth, C-46
inventory management, C-52
marketing, promotion, and brand
management, c-47-c-50
product design and development, C-58
product line, C-46-C-47
sourcing, manufacturing, and quality
assurance, C-51-C-52
in weak-culture comPanies, 349
Strategy-making
choosing among alternatives, 3l
Coach Inc., C-73
differentiation, C-79-C-80
distribution options, C-80-C-82
flexible 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, 3l
Equal 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-181
rivalry in tablet computers,
c-180-c-181
Henkel AG, C-349-C-351
impact of ethical standards, 262-263
importance of, 12-13
integrated tasks for, 20
and key success factors,T4-75
Netflix
bases of, C-140
choice of mail delivery or streaming,
c-r43-c-144
comprehensive fi lm librarY,
c-140-c-141
easy-to-use software, C- 142-C- I 43
just-for-kids option, C- 141
new content acquisitions,
c-l4I-c-r42
transition to Internet deiiverY,
c-144 c-145
new moves lor diversified companies
broadening business base, 247
l-46
Subject Index
Strategy-making- Conf .
divesting and retrenching, 247
-249
oplions,245-246
restructuring business
lineup,249-250
sticking with business lineup, 246
in one-business company, 215
on-the-scene managers in, 32
Panera Bread Company, C-97-C-I02
Robin Hood, case, C-300-C-301
role of CEOs,31
role oftop executives, 31
7-Eleven Stores
early mistakes in Taiwan,
c-26r_c-263
innovation, C-264-C-268
localization, C-263
-C-264
Sift Cupcake and Dessert Bar, C-35,
c-37-C-4I
Starbucks, C-305
Tiffany & Company, C-85-C-86
top-down process, 30
Under Armour in early years, C-43
Strategy-making hierarchy
businesslevel strategy, 33, 34
corporate strategy, 32, 33
functional-area strategy, 33, 3 4
operating strategies, 33, 34
strategic plan, 35
uniting, 34-35
Strategy management process
corrective adjustments, 36-37
mission statement, 24-26
performance evaluation, 36-37
setting objective s, 27
-30
strategic vision, 2 l-23
strategy execution, 35-36
strategy-making, 3 1-35
Strategy-supportive organizational
structure,29l
Strategy-supportive resources and
capabilities, 29 1
Strength, 92; see also SWOT analysis
Stretch objectives, 28, 334
balanced scorecard for setting, 28, 29
financial,28
strategic,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 from
availability and price, 57
quality and performance, 58
switching costs, 58
identifying, 58
and industry boundaries, 58
and strength of rivalry, 51
and threat ofnew entrants, 56
Success, celebrating, 361
Succession planning, at Procter & Gamble,
fo1
Sudden-death threats, 96
Supermarkets, bargaining power, 61
Supplier bargaining power
competitive pressures from, 58-60
erosion of profitability by, 58
factors determining strength of
availability of substitutes, 60
and backward integration, 60
competitiveness of major
customers, 60
costs of items, 60
demand,59
differentiation, 60
industry concentration, 60
switching costs, 60
and small-scale retailers, 58-59
Supplier Code of Conduct,
Apple, Inc.,259
Suppliers
to Chipotle Mexican Grill, C-119
close location of, 126
coordination with, 132
for Costco Wholesale, C-19
to Costco Wholesale, C-15
international expansion, 180
and strength of rivalry, 5 1
and threat ofnew entrants, 56
in value chain, 101-i02, 105
Supply and demand
and buyer bargaining power, 6l
Supply chain
improving efficiency of, 124
Panera Bread Company, C-107-C I 10
Under Armour, C-51 C-52
Supply chain management
at 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-271
at Starbucks
ethical sourcing, C-326-C-327
fair trade practices, C-326
key elements, C-324
pricing and purchasing,
c-325-C-326
small farmer support program,
c-326-C.-327
strategic fit in, 224-225
Support value chain activities, 98
general administration, 99
human resource management, 99
to identify cost structure
components, 101
Sustainable business practicesr 275
California Wine industry,
c-395-C-399
corporate social responsibility strategies
business case,279-28I
crafting, 277 -278
moral case, 278 279
delrmtron. 2./5
environmentally sustainable strategies,
275-277
philosophy at Frog's Leap Winery,
c-400-c-403
Sustainable competitive advantage
capabilities and resources, 89
strategies for, 7-8
tests for, 12
VRIN tests for, 90-91
Sustainable responsible business, 272
Switching costs, 50, 54
and buyer bargaining power, 61
and customer loyalty, 13 I
first-mover advantage, 156
high or low for substitutes, 58
low, 128
SWOT analysis
definition, 92
identifying internal strengths, 92-93
identifying market opportunities, 94
identifiring threats to
profitability, 94-96
identifying weaknesses and competitive
deficiencies, 93-94
potential market opportunities, 95
potential strengths and competitive assets
95
potential threats to profitability, 95
potentlal weaknesses and competitive
lrabrlrtres- 95
results of, 96-97
steps involved in, 97
translated into actions, 96-97
Symbolic culture changing actions
ceremonial events, 357
lead by example, 357
Synergies,2lT
Walt Disney Company, C-278
T
I
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-260
industrial growth, C-259-C-260
main 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
Panera Bread Company, C-102, C-106
Tariffs on steel imports, C-229
Taxable economic development bonds,
c-203
Tax-exempt bonds, C-204
Ta-{-exempt status
not-for-profit sector, C-200
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 Corporation
disruptive lnnovallon, C-232
leapfrog innovation, C -232
striving for, 131
Technological change, 134
Technological forces, 48
Technological improvement, 1 05
Technological resources, 87, 88
Technology
accessed by mergers and
acquisitions, 1 60
gained by strategic alliances, 191
Telecommuting, C 344
Television
Googlet expansion into, C-168,
c-182-c,183
Walt Disney Company in, C-278-C-280
Terrorist attack of200l, C-335
Textbook publishing, case
business model
acquisition editors, C-26
cost-intensive nature, C-27
sales reps, C-26-C-27
competition
Ebook sa1es, C-28-C-30
international editions, C-29
new editions, C-28-C-29
rental textbooks, C-28
used book market, C-28
economy of Ebooks
agency vs. retail pricing, C-3I-C-32
benefits, C-32
challenge to print publishers, C-30
effect on retailers, C-30-C-31
pricing 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,96
sudden-death, 96
Time, C-334
Times interest earned, 85
Time to market, 167
Today show, C-333
Top-down guidance,3l9
Top-down objective setting, 30
Top-down process, 30
Top executives; see also CEOs
corporate parent ing by, 229
Henkel AG
discussion of strategy, C-354-C-358
incentive compensation, 335
monitoring compensation of, 38
role in strategy-making. 3 I
uniting strategy-making hierarchy, 34-35
Total debt-to-assets ratio. 84
Total quality management, 324
capturing benefits of, 327
-328
compared to other process management
tools, 327
as motivation, 360
Tradition-steeped companies, 347
Training
at Coach Inc., C-80
at lululemon Athletica, C'69
at Procter & Gamble,294
at Starbucks, C'322-C-323
strategic 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-12
Triple 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
U
U-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
-26I
costs to companies, 269
damage to reputation, 268-269
Devilt Den, C-302-C-304
drlvers of
faulty oversight, 264
profitability, 266
-268
pursuit 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, l30
types 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 l2
steel imports 20Ll-202, C-243' C-244
I-48 Subject Index
United States Alcohol Tobacco and Trade
Bureau, C-403-C-404
United States Bureau of Mines, C-388
United States dollar
strength ofeuro versus, 187
weakening of, 186-187
United States House Oversight Committee,
c-186
United States International Trade
Commission, C-229
United States Supreme Court, on interstate
commerce, C-405
Universal ethical principles, 257
Unrelated businesses, 221
Unrelaled diversification, 2 I 7
acquiring and restrucluring companies.
230
benefits of corporate parenting,
229-230
better-offtest,228
building shareholder value, 228-237
combined with related
conditions for financial results. 23 I
as conglomerates, 228
cost-of entry test, 228
criteria for acquisitions, 228
cross-business allocation of
resources, 230
drawbacks
demands on management, 23I
-232
limited competitive advantage, 232
industry attractiveness test, 228
misguided reasons for
growth,232
managerial motives, 232-233
risk reduction, 232
stabilization,232
in multidivisional structure. 305-306
parenting advantage, 231
parenting capabilitles, 228
profit growth requlrement, 228
screening acquisitions, 228
sharing generalized resources and
capabilities, 228-229
Upscale attributes, 140
Used book market, blpassed by Ebooks,
c32
V
Valuable resources,
g0
Value
from differentiation strategies, 132-134
for the money, 7-8
signaling, 133
Value added, by corporate parenting, 229
Value-added products, Nucor Corporation,
c-235-C-236
Value chain
definition, 89
of distribution channels, 102
and economies ofscope, 226-227
illustrated, 99
for KP Maclane, 100
profit margin component, 100
ofrival companies, 101
strategic fit along
customer service, 226
distribution-related, 226
manufacturing-r elated, 225
sales and marketrng, 225
-226
supply chain act iv lties, 224-225
technology activities, 22 5
ofsuppliers, l0t-102
Value chain activities
adidas Group
outsourcing, C-58
advantageous location in foreign markets,
183-184
Bayonne Packaging, Inc.
quality control, C-360
scheduling, C-366-C-368
benchmarking assessment, I 03
best practices across, 322
B]'s Wholesale Club
marketing, C-25
operations, C-25
as building blocks of structure, 303-304
Chipotie Mexican Grill
advertising, C-12i
branding, C-121
marketing, C- 120-C-l2l
Coach Inc.
flexible outsourcing, C-79
outsourcing, C-73
comparison among business units, 241
as competitive advantage, 106-108
Costco Wholesale
advertising, C-13 C 14
distribution, C-15
human resource management, C 18
warehouse management, C-16
cost-efficient management, I23-I25,
130-13I
and diversification, 215
Eastman Kodak, C-2I6-C-219
Equal Exchange, C-154-C-156
offorward channel allies, 106
Frog Leap Winery
distribution, C-400
production, C-399
sustainability philosophy,
c 400-c-403
in global strategy, 195
Herman Miller Inc.
advertising, C-338
c-338*C-340
lean manufacturing, C-338-C-339
marketing, C-338
multiplant operations, C-333-C-334
production, C-338-C-339
to identify cost structure
components, l0l
in-house, 163
internally performed, 105
KP Maclane, 100
lululemon Athletica
distribution, C-68
new product technologies, C-61
outsourcing, C-68
product design, C-66-C-67
product line, C-66
website strategy, C-64
wholesale strategy, C-64
Netflix, C-144
Nucor Corporation
c-238-C-240
innovative technologies, C-220
product line exp anslon, C-222-C-226
outsourcing vs. internal performance,
300-302
Panera Bread Company
advertising, C-106
differentiation, C -97
-C
-9 9
distribution, C-109-C- i l0
franchise operations, C- 107-C- 1 08
primary,9S-99
reasons for outsourcing of, 167
reengineering, 323
related to resources and capabilities, 107
risks in outsourcing
hollowed out capabilities, 167
-168
lack of direct control, 168
7-Eleven Inc.
convenience store concept, C-257
franchise operations, C-257
-C-258
Taiwan operational innoval iorrs.
c-26r c-272
c-36-C,37
social media use, C-35-C-36
Starbucks
corporate social responsibility
strategy,
c-328_C_329
customer relations, C_329_C_330
c_321_C_324
new market segments,
C_316_C_319
operations,
C-327
revamping
in differentiation
strategies, 132
in low-cost provider strategies,
125-r27
and vertical scope, 159
Value-conscious
buyers, 140
Value^creation,
from organizational
design,
303
Value disadvantages.
options for remedying,
104
Values
of companies,
25-26
in strong culture companies,
34g_349
Value statement,
26
Variables, on strategic group map, 69
Vertical integrated
firms, 162
Vertical integration
advantages,
162-164
backward
to achieve greater
competitiveness,
163
forward
to enhance competitiveness,
163-164
at American
Apparel, 166
cost advantages,
125
disadvantages
capacity matching problem,
165
increased business risk, 164
less flexibility, 165
not realizing economies
ofscale, 165
resources and capabilities, 165
slow embrace of technological
advances, 165
examples, 162
expansion
from, 162
full integration,
I62
partial integration, 162
pros and cons, 165_166
at Starbucks, C-320
versus strategic alliances, 172
tapered integration,
162
Vertical scope, 159
V_ince Lombardi Super Bowl Trophy C-86
V_isible costs of ethical wrong d,otng, 269
Vision
at Henkel AG, C-350_C-351
Starbucks,
C-310
Sustainable
Winegrowing
Program, C-396
Vision statemenl; see also Strategic vision
Coca-Cola
Company, 23
H.
l. Heinz Com pany, 23
Procter & Gamble, 23
Voice over Internet
protocol,
65,216,225
Volume buyers, l2g
VRIN tests for sustainable competitive
advantage
inimitable resources, 90
non-substitutable
resources. 9 I
Subject Index
rare resources, g0
valuable resources,
90
Vulnerability
signs of, 152
Wage cuts in jewelry
industry,
C-90
\{all Street
lournal, 260
Warehouse
management
Bf's Wholesale Club, C_25
at Costco Wholesale,
C_16
Warranties
as competitive
weapon, 53
Weak-culture
companies, 349
Weakness,
93; see also SWOT analysis
Wealth, obsession
with, 264
Website strategy, lululemon
Athletica,
C_64
Wholesale distributors,
Z4
by Under Armour, C_50
Wholesale
locations, Coach Inc.
international,
C-g2
United States, C-82
Wholesalers,
blpassed in forward
integration,
164
Wholesale sales strategy, lululemon
Athietica,
C_64
Wine industry
Certified Napa Valley Green Land
program,
C_39g
consumer demographics,
C_394
consumer segments, C_393_ C-395
financial data, C_39:
financial ratios, C-403
Frogt Leap Winery in, C-3g2_C_404
glossary of terms, C_404_C-405
green consumers,
C_395
green wineries in 2011, C-397 _C_39g
in Napa Valley, C 392_C_393
organic wine, C_395
price segment data, C 394
sustainability
in california,
c_39s_C_399
sustainable practices, C_399-C-399
_
Sustainable Winegrowing program,
C_396
Women's athletic apparel
lululemon Athletica, C-59_C_71
major competitor s, C-7 I
_C_7
2
specialty department stores, C_71_C_72
Women\ Wear Daity, C-74
Work atmosphere, 332
Work climate,320
Work effort
perspective
on structuring,
310_31 1
structuring,29l
for successful strategy execution
create distinctive competence,
301
l-49
purchasing
strat egy, C_324_C_327
store expansion,
C-3 14_C_316
supply chain management,
C_312
for strategy exec fiion, 29l_2g2
supplier-related,
I05_ 106
support,
9g_99
Tata Motors
joint
ventures,
C_242_C_24g
marketing
research,
C_252
Under Armour
advertising,
C_50
distribution,
C-50_C_5
I
inventory management,
C_52
licensing agreements,
C-47
outsourcing
production,
C_5 I
_C_52
product line, C_45_C-47
sports marketing,
C_ 47
_C_4g
varying by industry, 101
Walt Disney Company
operations,
C_290_C_284
related diversific ation, C
_27
6_C_283
Value chain analysis
customer value proposition,
9g- 100
to identify cost disadvantages,
104
to identify value disadvantages,
104
primary purposes, 101
_
to uncover competitive
advantage,
106
Value chain management
attention to cost drivers, 123,124
buyer bargaining power, 125
economies
ofscale, 123
employee motivation,
i25
full-capacity
operations, I 24
information
technology,
125
learning curve effects, 124
lower-cost inputs, 125
outsourcing,125
supply chain efficiency, 124
vertical integration,
125
at Walmart, 127
Value chain match up, 223
Value chain revamping
bypassing distrib utors, 125
_
126
at Nucor Steel, 126
reduce shipping costs, 126
reducing materials handling, I26
at Southwest Airlines, 1 26_ 127
streamlining
operations, I 26
Value chain system
description, l0I-102
I-50
Subject
Index
Work effort-Cont.
flatten out organ ization,
301_302
partnerships,
302
Work environme
nt, 27 2, 33 2
and corporate
culture,
344
at Costco
Wholesa.le,
C_17
at Starbucks,
C_320, C_322
Worker-owned
co_operative,
C_ I49, C_ I S4
Workforce
diversity
of,272
oflocal
companies
in developing
countries,
207_209
Workforce
rerention,
27 9
_
2g0
Working
capital,84
Working
conditions,
unsatisfactory,
C- 153
Work teams,
Herman
Miller Inc., C_337
World economy,
179
World Series Trophv,
C_86
World
Trade Organization,
ZOI
Worry list of problems,
l l l

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