Strategic Management 3rd Ed.


Frank T. Rothaermel

Publisher: McGraw-Hill, 2016, 526 pages

ISBN: 978-1-259-42047-4

Keywords: Strategy

Last modified: Oct. 7, 2016, 12:09 p.m.

Strategic Management, 3e by Frank T. Rothaermel continues to synthesize and integrate theory, empirical research, and practical applications with current, real-world examples. This approach not only offers students a learning experience that uniquely combines rigor and relevance, but it also prepares them for the types of challenges they will face as managers in the globalized and turbulent business environment of the 21st century. Examples profile the products and services of companies that students are familiar with such as Facebook, Google, Starbucks, Apple and Uber. In its characteristic single, strong voice, Strategic Management provides students with the foundation they need to understand how companies gain and sustain competitive advantage, as well as how to become managers capable of making well-reasoned strategic decisions.

  • Part One: Analysis
    1. What Is Strategy?
      • Chaptercase: Does Twitter Have a Strategy
      1. What Strategy Is: Gaining and Sustaining Competitive Advantage
        • What Is Competitive Advantage?
        • Industry vs. Firm Effects in Determining Firm Performance
      2. Stakeholders and Competitive Advantage
        • Stakeholder Strategy
        • Stakeholder Impact Analysis
      3. The AFI Strategy Framework
      4. Implications for the Strategist
      • Chaptercase: Consider This …
    2. Strategic Leadership: Managing the Strategy Process
      • Chaptercase: Marissa Mayer: Turnaround at Yahoo?
      1. Vision, Mission, and Values
        • Vision
        • Mission
        • Values
      2. Strategic Leadership
        • What Do Strategic Leaders Do?
        • How Do You Become a Strategic Leader?
        • Formulating Strategy across Levels: Corporate, Business, and Functional Managers
      3. The Strategic Management Process
        • Top-Down Strategic Planning
        • Scenario Planning
        • Strategy as Planned Emergence: Top-Down and Bottom-Up
      4. Implications for the Strategist
      • Chaptercase: Consider This …
    3. External Analysis: Industry Structure, Competitive Forces, And Strategic Groups
      • Chaptercase: Tesla Motors and the U.S. Automotive Industry
      1.   The PESTEL Framework
        • Political Factors
        • Economic Factors
        • Sociocultural Factors
        • Technological Factors
        • Ecological Factors
        • Legal Factors
      2. Industry Structure and Firm Strategy: The Five Forces Model
        • Competition in the Five Forces Model
        • The Threat of Entry
        • The Power of Suppliers
        • The Power of Buyers
        • The Threat of Substitutes
        • Rivalry among Existing Competitors
        • A Sixth Force: The Strategie Role of Complements
      3. Changes over Time: Industry Dynamics
      4. Performance Differences within the Same Industry: Strategic Groups
        • The Strategic Group Model
        • Mobility Barriers
      5. Implications for the Strategist
      • Chaptercase: Consider This…
    4. Internal Analysis: Resources, Capabilities, and Core Competencies
      • Chaptercase: Dr. Dre's Core Competency: Coolness Factor
      1. Core Competencies
      2.   The Resource-Based View
        • Two Critical Assumptions
        • The VRIO Framework
        • Isolating Mechanisms: How to Sustain a Competitive Advantage
      3. The Dynamic Capabilities Perspective
      4. The Value Chain Analysis
      5. Implications for the Strategist
        • Using SWOT Analysis to Combine External and Internal Analysis
      • Chaptercase: Consider This…
    5. Competitive Advantage, Firm Performance, and Business Models
      • Chaptercase: The Quest for Competitive Advantage: Apple vs. Microsoft
      1. Competitive Advantage and Firm Performance
        • Accounting Profitability
        • Shareholder Value Creation
        • Economic Value Creation
        • The Balanced Scorecard
        • The Triple Bottom Line
      2. Business Models: Putting Strategy into Action
        • Popular Business Models
        • Dynamic Nature of Business Models
      3. Implications for the Strategist
      • Chaptercase: Consider This…
  • Part Two: Formulation
    1. Business Strategy: Differentiation, Cost Leadership, and Blue Oceans
      • Chaptercase: JetBlue: "Stuck in the Middle"
      1. Business-Level Strategy: How to Compete for Advantage
        • Strategic Position
        • Generic Business Strategies
      2. Differentiation Strategy: Understanding Value Drivers
        • Product Features
        • Customer Service
        • Complements
      3. Cost-Leadership Strategy: Understanding Cost Drivers
        • Cost of Input Factors
        • Economies of Scale
        • Learning Curve
        • Experience Curve
      4. Business-Level Strategy and the Five Forces Benefits and Risks
        • Differentiation Strategy: Benefits and Risks
        • Cost-Leadership Strategy: Benefits and Risks
      5. Blue Ocean Strategy: Combining Cost Leadership and Differentiation
        • Value Innovation
        • Blue Ocean Strategy Gone Bad: "Stuck in the Middle"
      6. Implications for the Strategist
      • Chaptercase: Consider This…
    2. Business Strategy: Innovation And Entrepreneurship
      • Chaptercase: Netflix: Disrupting the TV Industry
      1. Competition Driven by Innovation
        • The Innovation Process
      2. Strategic and Social Entrepreneurship
      3. Innovation and the Industry Life Cycle
        • Introduction Stage
        • Growth Stage
        • Shakeout Stage
        • Maturity Stage
        • Decline Stage
        • Crossing the Chasm
      4. Types of Innovation
        • Incremental vs. Radical Innovation
        • Architectural vs. Disruptive Innovation
        • Open Innovation
      5. Implications for the Strategist
      • Chaptercase: Consider This…
    3. Corporate Strategy: Vertical Integration and Diversification
      • Chaptercase: How Became the Everything Store
      1. What Is Corporate Strategy?
        • Why Firms Need to Grow
        • Three Dimensions of Corporate Strategy
      2. The Boundaries of the Firm
        • Firms vs. Markets: Make or Buy?
        • Alternatives on the Make-or-Buy Continuum
      3. Vertical Integration along the Industry Value Chain
        • Types of Vertical Integration
        • Benefits and Risks of Vertical Integration
        • When Does Vertical Integration Make Sense?
        • Alternatives to Vertical Integration
      4. Corporate Diversification: Expanding Beyond a Single Market
        • Types of Corporate Diversification
        • Leveraging Core Competencies for Corporate Diversification
        • Corporate Diversification and Firm Performance
      5. Implications for the Strategist
      • Chaptercase: Consider This…
    4. Corporate Strategy: Strategic Alliances And Mergers And Acquisitions
      • Chaptercase: Disney: Building Billion-Dollar Franchises
      1.   How Firms Achieve Growth
        • The Build-Borrow-Buy Framework
      2. Strategic Alliances
        • Why Do Firms Enter Strategie Alliances?
        • Governing Strategic Alliances
        • Alliance Management Capability
      3. Mergers and Acquisitions
        • Why Do Firms Merge with Competitors?
        • Why Do Firms Acquire Other Firms?
        • M&A and Competitive Advantage
      4. Implications for the Strategist
      • Chaptercase: Consider This…
    5. Global Strategy: Competing Around The World
      • Chaptercase: The Wonder from Sweden: Is IKEA's Success Sustainable?
      1. What Is Globalization?
        • Stages of Globalization
        • State of Globalization
      2. Going Global: Why?
        • Advantages of Going Global
        • Disadvantages of Going Global
      3. Going Global: Where and How?
        • Where in the World to Compete? The CAGE Distance Framework
        • How Do MNEs Enter Foreign Markets?
      4. Cost Reductions vs. Local Responsiveness: The Integration-Responsiveness Framework
        • International Strategy
        • Multidomestic Strategy
        • Global-Standardization Strategy
        • Transnational Strategy
      5. National Competitive Advantage: World Leadership in Specific Industries
        • Porters Diamond Framework
      6. Implications for the Strategist
      • Chaptercase: Consider This… Approaches to Innovation and Organizing
  • Part Three: Implementation
      1. Organizational Design: Structure, Culture, And Control
        • Chaptercase: Zappos: From Happiness to Holacracy
        1. Organizational Design and Competitive Advantage
          • Organizational Inertia: The Failure of Established Firms
          • Organizational Structure
          • Mechanistic vs. Organic Organizations
        2. Strategy and Structure
          • Simple Structure
          • Functional Structure
          • Multidivisional Structure
          • Matrix Structure
        3. Organizational Culture: Values, Norms, and Artifacts
          • Where Do Organizational Cultures Come From?
          • How Does Organizational Culture Change?
          • Organizational Culture and Competitive Advantage
        4. Strategie Control-and-Reward Systems
          • Input Controls
          • Output Controls
        5. Implications for the Strategist
        • Chaptercase: Consider This…
      2. Corporate Governance And Business Ethics
        • Chaptercase: Uber: Most Ethically Challenged Tech Company?
        1.   The Shared Value Creation Framework
          • Public Stock Companies and Shareholder Capitalism
          • Creating Shared Value
        2. Corporate Governance
          • Agency Theory
          • The Board of Directors
          • Other Governance Mechanisms
        3. Strategy and Business Ethics
        4. Implications for the Strategist
        • Chaptercase: Consider This…
  • Part Four: Minicases
      1. Michael Phelps: Strategy Formulation & Implementation
      2. Teach for America: How to Inspire Future Leaders
      3. PepsiCo's Indra Nooyi: Performance with Purpose
      4. How the Strategy Process Kills Innovation at Microsoft
      5. Strategy and Serendipity: A Billion-Dollar Business
      6. Apple: What's Next?
      7. Starbucks: Schultz Serves Up a Turnaround
      8. Nike's Core Competency: The Risky Business of Fairy Tales
      9. When Will P&G Play to Win Again?
      10. Trimming Fat at Whole Foods Market
      11. Is Porsche Killing the Golden Goose?
      12. LEGO's Turnaround: Brick by Brick
      13. From Good to Great to Gone: The Rise and Fall of Circuit City
      14. Cirque du Soleil: Searching for a New Blue Ocean
      15. Competing on Business Models: Google vs. Microsoft
      16. Assessing Competitive Advantage: Apple vs. Blackberry
      17. Wikipedia: Disrupting the Encyclopedia Business
      18. Standards Battle: Which Automotive Technology Will Win?
      19. "A" Is for Alphabet and "G" Is for Google: Alphabet's Corporate Strategy and Google's Strategy Process
      20. HP's Boardroom Drama and Divorce
      21. Hollywood Goes Global
      22. Does GM's Future Lie in China?
      23. Flipkart Is Fulfilling Its Wish and Beating
      24. LVHM in China: Cracks Its Empire of Desire?
      25. Sony vs. Apple: Whatever Happened to Sony?
      26. Struggling Samsung Electronics
      27. Alibaba and China's ECommerce: Reality Bites
      28. UBS: A Pattern of Ethics Scandals
      • How to Conduct a Case Analysis
    1. Part Five: Full-Length Cases


    Strategic Management

    Reviewed by Roland Buresund

    Very Good ******** (8 out of 10)

    Last modified: Oct. 7, 2016, 12:09 p.m.

    This is a very good book about strategic management even if the cases in the book are a bit short. Unfortunately it is extremely overpriced, so unless you can't live without this book, I wouldn't recommend it.


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