Strategic Management JOHN MORRIS

Contents Introduction 1 Cover 2 Part 1. Strategic Management Overview What's in it for Me? 5 What Is Strategic Management? 6 Intended and Realized Strategies 13 KEY TAKEAWAY 17 EXERCISES 18 Essential Unit Vocabulary 19 Part 2. Corporate Governance What's in it for Me? 23 What Is Corporate Governance? 24 The Evolution of the Modern Corporation 27 The U.S. Corporate Governance System 30 Corporate Governance in America: A Brief History 37 Purpose and Direction of the Firm 42 KEY TAKEAWAY 43 Essential Unit Vocabulary 44 Part 3. The External Environment What's in it for Me? 49 The General Environment (PESTEL) 50 Analyzing the Organization’s Microenvironment 53 KEY TAKEAWAY 66 EXERCISES 67 Essential Unit Vocabulary 68 Part 4. Internal Capability What's in it for Me? 73 Operational Excellence 74 Internal Analysis 76 VRIO Analysis 83 Organizational Control 89 KEY TAKEAWAY 95 EXERCISES 96 Essential Unit Vocabulary 97 Part 5. Business-level Strategy What's in it for Me? 101 What is Strategic Focus? 102 Strategy as Trade-Offs 103 Strategy as Discipline 110 Generating Advantage 114 KEY TAKEAWAY 123 EXERCISES 124 Essential Unit Vocabulary 125 Part 6. Formulating Strategy What's in it for Me? 129 The Strategy Diamond 130 Competitor Analysis Framework 138 Types of Rivalry 139 KEY TAKEAWAY 143 EXERCISES 144 Essential Unit Vocabulary 145 Part 7. Corporate-level Strategy What's in it for Me? 149 Business- vs. Corporate-level Strategy 150 Concentration Strategies 151 Horizontal Integration: Mergers and Acquisitions 154 Vertical Integration Strategies 156 Diversification Strategies 158 Strategies for Getting Smaller 161 Portfolio Planning and CLS 163 KEY TAKEAWAY 166 EXERCISES 167 Essential Unit Vocabulary 168 Part 8. Analysis and Reporting What's in it for Me? 173 Strategy Analysis Framework (SAF) 174 Sample Client Report 180 Index to Tools and Models Used in the Textbook 181 Publication History 183 Creative Commons License 184 Recommended Citations 185 Versioning 187 Introduction This open source textbook is derived from many sources, initially from the Principles of Management by Carpenter, Bauer, and Erdogan, but there is abundant new content as well. It is published under a Creative Commons license and as such there is no charge ever for this textbook. The most important change from 1e is that static content was removed to make room for student-generated dynamic content. Throughout the book look for the names of contributing students in the red colored example boxes. As the term progresses, you will see new examples appear as fellow students research and summarize topics for current events, all are curated by the instructor.