Alphabetical Listing of Cases Airtran Holdings, Inc., Case 21 Amazon.com , Case 10 AOL Time Warner, Inc., Case 12 Boeing Company's Board of Directors Fires the CEO, Case Boise Cascade/Office Max, Case 22 Carnival Corporation & plc (2006), Case 14 Church & Dwight Builds a Corporate Portfolio, Case 19 Dell, Inc., Case 23 eBay, Inc., Case Case _ Everyone Does It, Case GlaxoSmithKline's Retaliation Against Cross-Border Sales of Prescription Drugs, Case Google, Case 11 Guajilote Cooperativo Forestal, Honduras Case H J Heinz Company, Case 25 Haier Group: U.S Expansion, Case 16 Harley-Davidson, Inc., 2006, Case 13 Hershey Foods Company, Case 18 Invacare Corporation, 2004, Case 17 Intel Corporation, Case 20 1-7 1-8 ALPHABETICAL LISTING OF CASES Lowe's Companies, Inc., Case 26 McAfee 2005, Case Movie Gallery, Inc., Case 29 Nike, Inc., Case 27 Outback Steakhouse, Inc., Case 28 Pfizer, Inc., Web Case Recalcitrant Director at Byte Products, Inc., Case Six Flags, Inc., Case 24 Southwest Airlines Company, Web Case Starbucks' International Operations, Case Stryker Corporation, Web Case Sykes Enterprises, Web Case Tech Data Corporation, Web Case Tiffany & Co., Case 15 Turkcell, Case Tyson Foods, Inc., Web Case Williams-Sonoma, Web Case Section A Corporate Governance, Social Responsibility, and Executive Leadership CASE The Recalcitrant Director at Byte Products, Inc.: Corporate Legality Versus Corporate Responsibility Dan R Dalton, Richard A Cosier, and Cathy A Enz BYTE PRODUCTS, INC., IS PRIMARILY INVOLVED IN THE PRODUCTION OF ELECTRONIC components that are used in personal computers Although such components might be found in a few computers in home use, Byte products are found most frequently in computers used for sophisticated business and engineering applications Annual sales of these products have been steadily increasing over the past several years; Byte Products, Inc., currently has total sales of approximately $265 million Over the past six years, increases in yearly revenues have consistently reached 12% Byte Products, Inc., headquartered in the midwestern United States, is regarded as one of the largest-volume suppliers of specialized components and is easily the industry leader, with some 32% market share Unfortunately for Byte, many new firms—domestic and foreign— have entered the industry A dramatic surge in demand, high profitability, and the relative ease of a new firm's entry into the industry explain in part the increased number of competing firms Although Byte management—and presumably shareholders as well—is very pleased about the growth of its markets, it faces a major problem: Byte simply cannot meet the demand for these components The company currently operates three manufacturing facilities in various locations throughout the United States Each of these plants operates three production shifts 24 hours •er da ), da s a week This activit • titutes virtualLyall, of the company's production capacity Without an additional manufacturing plant, Byte simply cannot increase its output of components This case was prepared by Professors Dan R Dalton and Richard A Cosier of the Graduate School of Business at Indiana University and Professor Cathy A Enz of Cornell University The names of the organization, individual, location, and/or financial information have been disguised to preserve the organization's desire for anonymity This case was edited for SMBP-9th, 10th and 11th Editions Reprint permission is solely granted to the publisher, Prentice Hall, for the books, Strategic Management and Business Policy-11th Edition and cases in Strategic Management and Business Policy-11th Edition by copyright holders, Dan R Dalton, Richard A Cosier and Cathy Enz Any other publication of this case (translation, any form of electronic or other media), or sold (any form of partnership) to another publisher will be in violation of copyright laws, unless the copyright holders have granted an additional written reprint permission 1-9 1-10 SECTION A Corporate Governance, Social Responsibility, and Executive Leadership James M Elliott, Chief Executive Officer and Chairman of the Board, recognizes the gravity of the problem If Byte Products cannot continue to manufacture components in sufficient numbers to meet the demand, buyers will go elsewhere Worse yet is the possibility that any continued lack of supply will encourage others to enter the market As a long-term solution to this problem, the Board of Directors unanimously authorized the construction of a new, state-of-the-art manufacturing facility in the southwestern United States When the planned capacity of this plant is added to that of the three current plants, Byte should be able to meet demand for many years to come Unfortunately, an estimated three years will be required to complete the plant and bring it online Jim Elliott believes very strongly that this three-year period is far too long and has insisted that there also be a shorter-range, stopgap solution while the plant is under construction The instability of the market and the pressure to maintain leader status are two factors contributing to Elliott's insistence on a more immediate solution Without such a move, Byte management believes that it will lose market share and, again, attract competitors into the market Several Solutions A number of suggestions for such a temporary measure were offered by various staff specialists but rejected by Elliott For example, licensing Byte's product and process technology to other manufacturers in the short run to meet immediate demand was possible This licensing authorization would be short term, or just until the new plant could come online Top management, as well as the board, was uncomfortable with this solution for several reasons They thought it unlikely that any manufacturer would shoulder the fixed costs of producing appropriate components for such a short term Any manufacturer that would so would charge a premium to recover its costs This suggestion, obviously, would make Byte's own products available to its customers at an unacceptable price Nor did passing any price increase to its customers seem sensible, for this too would almost certainly reduce Byte's market share as well as encourage further competition Overseas facilities and licensing also were considered but rejected Before it became a publicly traded company, Byte's founders had decided that its manufacturing facilities would be domestic Top management strongly felt that this strategy had served Byte well; moreover, Byte's majority stockholders (initial owners of the then privately held Byte) were not likely to endorse such a move Beyond that, however, top management was reluctant to foreign license—or make available by any means the technologies for others to produce Byte products—as they could not then properly control patents Top management feared that foreign licensing would essentially give away costly proprietary information regarding the company's highly efficient means of product development There also was the potential for initial low product quality—whether produced domestically or otherwise—especially for such a shortrun operation Any reduction in quality, however brief, would threaten Byte's share of this sensitive market The Solution! One recommendation that has come to the attention of the Chief Executive Officer could help solve Byte's problem in the short run Certain members of his staff have notified him that In ant current • available in Plainville, a small town in the northeastern United States Before its closing eight years before, this plant was used primarily for the manufacture of electronic components As is, it could not possibly be used to produce Byte CASE ONE The Recalcitrant Director at Byte Products, Inc products, but it could be inexpensively refitted to so in as few as three months Moreover, this plant is available at a very attractive price In fact, discreet inquiries by Elliott's staff indicate that this plant could probably be leased immediately from its present owners because the building has been vacant for some eight years All the news about this temporary plant proposal, however, is not nearly so positive Elliott's staff concedes that this plant will never be efficient and its profitability will be low In addition, the Plainville location is a poor one in terms of high labor costs (the area is highly unionized), warehousing expenses, and inadequate transportation links to Byte's major markets and suppliers Plainville is simply not a candidate for a long-term solution Still, in the short run, a temporary plant could help meet the demand and might forestall additional competition The staff is persuasive and notes that this option has several advantages: (1) there is no need for any licensing, foreign or domestic, (2) quality control remains firmly in the company's hands, and (3) an increase in the product price will be unnecessary The temporary plant, then, would be used for three years or so until the new plant could be built Then the temporary plant would be immediately closed CEO Elliott is convinced Taking the Plan to the Board The quarterly meeting of the Board of Directors is set to commence at 2:00 P.M Jim Elliott has been reviewing his notes and agenda for the meeting most of the morning The issue of the temporary plant is clearly the most important agenda item Reviewing his detailed presentation of this matter, including the associated financial analyses, has occupied much of his time for several days All the available information underscores his contention that the temporary plant in Plainville is the only responsible solution to the demand problems No other option offers the same low level of risk and ensures Byte's status as industry leader At the meeting, after the board has dispensed with a number of routine matters, Jim Elliott turns his attention to the temporary plant In short order, he advises the 11-member board (himself, additional inside members, and outside members) of his proposal to obtain and refit the existing plant to ameliorate demand problems in the short run, authorizes the construction of the new plant (the completion of which is estimated to take some three years), and plans to switch capacity from the temporary plant to the new one when it is operational He also briefly reviews additional details concerning the costs involved, advantages of this proposal versus domestic or foreign licensing, and so on All the board members except one are in favor of the proposal In fact, they are most enthusiastic; the overwhelming majority agree that the temporary plant is an excellent—even inspired—stopgap measure Ten of the eleven board members seem relieved because the board was most reluctant to endorse any of the other alternatives that had been mentioned The single dissenter—T Kevin Williams, an outside director—is, however, steadfast in his objections He will not, under any circumstances, endorse the notion of the temporary plant and states rather strongly that "I will not be party to this nonsense, not now, not ever." T Kevin Williams, the senior executive of a major nonprofit organization, is normally a reserved and really quite agreeable person This sudden, uncharacteristic burst of emotion clearly startles the remaining board members into silence The following excerpt captures the ensuing, essentially one-on-one conversation between Williams and Elliott: Williams: How many workers your people estimate will be employed in the temporary plant? Elliott: Roughly 1,200, possibly a few more 1-12 SECTION A Corporate Governance, Social Responsibility, and Executive Leadership Williams: I presume it would be fair, then, to say that, including spouses and children, some- thing on the order of 4,000 people will be attracted to the community Elliott: I certainly would not be surprised Williams: If I understand the situation correctly, this plant closed just over eight years ago, and that closing had a catastrophic effect on Plainville Isn't it true that a large portion of the community was employed by this plant? Elliott: Yes, it was far and away the majority employer Williams: And most of these people have left the community, presumably to find employment elsewhere Elliott: Definitely, there was a drastic decrease in the area's population Williams: Are you concerned, then, that our company can attract the 1,200 employees to Plainville from other parts of New England? Elliott: Not in the least We are absolutely confident that we will attract 1,200 even more, for that matter virtually any number we need That, in fact, is one of the chief advantages of this proposal I would think that the community would be very pleased to have us there Williams: On the contrary, I would suspect that the community will rue the day we arrived Beyond that, though, this plan is totally unworkable if we are candid On the other hand, if we are less than candid, the proposal will work for us, but only at great cost to Plainville In fact, quite frankly, the implications are appalling Once again, I must enter my serious objections Elliott: I don't follow you Williams: The temporary plant would employ some 1,200 people Again, this means the infusion of over 4,000 to the community and surrounding areas Byte Products, however, intends to close this plant in three years or less If Byte informs the community or the employees that the jobs are temporary, the proposal simply won't work When the new people arrive in the community, there will be a need for more schools, instructors, utilities, housing, restaurants, and so forth Obviously, if the banks and local government know that the plant is temporary, no funding will be made available for these projects and certainly no credit for the new employees to buy homes, appliances, automobiles, and so forth If, on the other hand, Byte Products does not tell the community of its "temporary" plans, the project can go on But, in several years when the plant closes (and we here have agreed today that it will close), we will have created a ghost town The tax base of the community will have been destroyed; property values will decrease precipitously; practically the whole town will be unemployed This proposal will place Byte Products in an untenable position and in extreme jeopardy Elliott: Are you suggesting that this proposal jeopardizes us legally? If so, it should be noted that the legal department has reviewed this proposal in its entirety and has indicated no problem Williams: No! I don't think we are dealing with an issue of legality here In fact, I don't doubt for a minute that this proposal is altogether legal I do, however, resolutely believe that this proposal constitutes gross irresponsibility I think this decision has captured most of my major concerns These along with a host of collateral problems associated with this project lead me to strongly suggest that you and the balance of the board reconsider and not endorse this proposal Byte Products must find another way CASE ONE The Recalcitrant Director at Byte Products, Inc The Dilemma After a short recess, the board meeting reconvened Presumably because of some discussion during the recess, several other board members indicated that they were no longer inclined to support the proposal After a short period of rather heated discussion, the following exchange took place: Elliott: It appears to me that any vote on this matter is likely to be very close Given the gravity of our demand capacity problem, I must insist that the stockholders' equity be protected We cannot wait three years; that is clearly out of the question I still feel that licensing—domestic or foreign—is not in our long-term interests for any number of reasons, some of which have been discussed here On the other hand, I not want to take this project forward on the strength of a mixed vote A vote of 6-5 or 7-4, for example, does not indicate that the board is remotely close to being of one mind Mr Williams, is there a compromise to be reached? Williams: Respectfully, I have to say no If we tell the truth—namely, the temporary nature of our operations—the proposal is simply not viable If we are less than candid in this respect, we grave damage to the community as well as to our image It seems to me that we can only go one way or the other I don't see a middle ground CASE The Boeing Company's Board of Directors Fires the CEO Kathryn E Wheelen, Richard D Wheelen, Thomas L Wheelen II, and Thomas L Wheelen The Announcement ON MARCH 7, 2005, BOEING ISSUED A SURPRISE NEWS RELEASE STATING THAT BOEING'S Board of Directors, in a special session, had asked for and received the resignation of Harry C Stonecipher, President, Chief Executive Officer (CEO), and Board member.' Stonecipher had joined the board in 1997 and had served as President and CEO for the past 15 months, since the resignation of Phil Conduit Background Conduit had resigned as President and CEO of Boeing on December 1, 2003, because of a major scandal involving the awarding of a $23 billion contract to Boeing for Air Force KC-330 tankers Conduit was not directly involved in the contract, but it happened during his tenure as CEO.' The scandal required the firing of two Boeing executives, who later were sentenced to prison and given fines.' Their Department of Defense counterpart was also sentenced to prison The Board of Directors then asked Harry Stonecipher to come out of retirement and replace Conduit as President and CEO Stonecipher had previously served as President and Chief Operating Officer (COO) of McDonnell Douglas Corporation before it had been acquired by Boeing in 1997 He then served as Boeing's President and COO from 1997 until This may not be reproduced without written permission of the copyright holder This case was prepared by Thomas L Wheelen of Wheelen and Associates Copyright © 2006 by Thomas L Wheelen The copyright holder is solely responsible for case content Reprint permission is solely granted to the publisher, Prentice-Hall, for the books Strategic Management Business Policy-10th Edition (and the International version of this book) and Cases in Strategic Management and Business Policy-11th Edition by the copyright holder, Thomas L Wheelen Any other publication of the case (translation, any form of electronics or other media) or sale (any form of partnership) to another publisher will be in violation of copyright law, unless Thomas L Wheelen has granted an additional written permission This case was revised and edited for SMBP-1Ith Reprinted by permission 2-1 2-2 SECTION A Corporate Governance, Social Responsibility, and Executive Leadership May 2001 and subsequently as Vice Chairman of the Board from May 2001 until 2002 He retired at age 65, but remained on the board and received pension and benefits of $638,000 in 2003.4 During Stonecipher's 15-month tenure as Boeing's CEO, the company's stock price rose 53.4% ($38.00 to $58.30) He resolved a 20-month suspension of Boeing's three business units from bidding on defense contracts This suspension had been a result of the U.S Air Force's finding on July 24, 2003, that Boeing had committed "serious and substantial violations of federal law" (regarding the KC-330 tanker contract) Thanks to Stonecipher's efforts, these business units were successfully reinstated with the Air Force on March 4, 2005 Most analysts thought that Stonecipher would retire in May 2006, when he turned 70 The Incident On February 25, 2005, Chairman of the Board Lewis Platt learned of a romantic affair between Stonecipher and a female executive A company employee had notified not only Platt, but also the company's legal and ethics executives Sources in the company described the employee whistle-blower "as a female, who intercepted 'correspondences' between Stonecipher and a woman executive that were of a romantic nature."° The board of directors ordered a comprehensive and immediate investigation of the facts surrounding the relationship, and the claims of the informant.' The subsequent investigation revealed that the relationship between Stonecipher and the woman executive was of a consensual nature and had begun in January 2005 According to Chairman Platt, any allegations that Stonecipher had influenced the women executive's career and salary were untrue.' Nevertheless, the board felt that it had to take action Platt stated: "The Board concluded that the facts reflected poorly on Harry's judgment and would impair his ability to lead the company." Platt further stated in a conference call to reporters and analysts: "It is not the fact he was having an affair—this is not a violation of our Code of Conduct." Platt emphasized that the relationship was not the only reason that the board asked for Stonecipher's resignation.' (The Code of Conduct can be seen on Boeing's web site, www.Boeing.com , under the heading Ethics, General Info & Images.) Platt stated, "Stonecipher acknowledge the affair." He was asked to resign so his pension and benefits would not be affected Refusing to go into further details, Platt stated, "We think Harry's entitled to some privacy concerning the details of the relationship "12 Fallout Interestingly, the woman executive, whose name had not been divulged, was neither fired nor asked to resign On March 8, 2005, after the completion of the investigation and Stonecipher's resignation, four senior Boeing executives named Debra Peabody as the woman who had the affair with Stonecipher She was a 48-year-old Boeing Vice President for Operations and Commercial Activities in the company's government-relations office in Washington, D.C She managed office operations for Boeing's chief Washington lobbyist, Vice President Rudy deLeon Peabody had previously worked in various senior management positions in her 25-year career at Boeing." Industry experts were split on Stonecipher's forced resignation One analyst asked, "If the board had true concern for Harry's privacy and his wife, children and grandchildren, then why was the resignation made public through a Boeing press release and Chairman Platt's conference call?" He said, "It could be that the minutes of the board meeting concerning these NAME INDEX Kerr, S., 358n Krug, J A., 159, 353n Kuczmarski & Associates, 294 Lerner, L D Kerstetter J 359n Kerwin, K., 356n 359n Kulatilaka, N 351n Leuchter, M., 355n Lestoil, 298 Kessler F H., 361 n Kumar, K., 342n Leuz, C Ketchen, D J Jr., 345n, 346n, 347n Kets de Vries, M Kunii, M., 341n Levenson P N., 338n Kunstler, B., 313 Levi Strauss & Company 259 KFC, 131, 138, 250 Kuperman, J., 346n Levin, J B., 361n Khan, Z U., 357n Kuratko, D F., 359n Levin, R I Khanna, P., 340n Kurlantzick, J., 341n Levine, M., 308 Khanna, T 347n Kwon, S W., 341n Kickul J Levinthal, D A., 360n Levy D Kids Kab L Light, 338n Lewin, A Y., 337n Kilmann R H 355n Kim, D J 346n L'Oreal, 286 Lewis, J., 253-4 Labatt, 158 Lewis M., 353n Kim, H 354n Labich, K., 351n Lewis, V L Kim L., 172 Lademan, J M., 357n LexisNexis, 93 Kim, W C 358n Lafley, A., 193, 293 LG Group Kimberly-Clark 155, 185 LaFond, R., 338n, 340n Li, K-Q, 160 King D R 358n Lamont, B T., 348n-349n Li, L., 347n Kinko's 167 Lampert, E., 162 Li, M., 345n Kirin 158 Land, E., 223 Li, S., 64, 342n Li, S X., 353n Kirkman B L., 350n Lane H W., 347n Kirkpatrick, D 352n Lane, P J., 41, 360n Lieberman, D., 51 Kirsch R J., 358n Langford R., 349n Lieberman, M B 346n Kleenex 118 Klein, H E., 344n Langley M Lim, G H Langlley, A Kleiner, A., 353n Langowitz, N S., 360n Lincoln Electric, 88 Lind, B., 349n Kline, D M., 345n Larcher, D F., 339n, 357n, 358n Lindblad, C 343n KLM, 169, 171 Kluger, A N., 351n LaRochelle-Cote, S., 345n Larsen, P C Linneman, R E 344n Kmart, 161 176, 225 Knapp, E., 349n Larsen, R., 209 Lionel, 225 LaserMonks Lioukas, S., 336n Linn, A., 336n Kochhar, R., 350n Lashinsky, A., 358n Lipton, 178 Kocourek, P F., 346n Lasserre, P., 342n Little D., 197 350n Kohl's, 161-2 Lau, R S M., 337n Lavelle, L., 338n, 340n, 354n, 359n Lavender, L Liu, J., 311 361n Kohlberg, L 65 68, 342n Kohut, G F 342n Koller, T., 349n Kompass International, 326 Kono T., 348n Konopaske, R., 357n Livingston, R., 198 Loarie, T., 273 Lawler, E E., 345n Locke, E A., 343n Lawrence, P R., 228, 353n Lockheed Martin, 198 Loeb, W., 210 Lay's Potato Chips, 292 Korbar T., 355n Leadership Development Center 244 Lear 195 Korn, H J., 350n Learjet, 170 Loise J K 353n Lon, H Korn/Ferry International, 38, 42, 47 243, 338n Leavell, H 338n Lederman, L L., 81 Korunka, C Long-Term Economic Growth, 325 Lorange, P., 160, 347n, 355n Ledford G E Jr., 345n Lee, H 346n 355n Lorsch, J Korvette's, 162 Koskisson, R E., 359n Loewen Group, 152 Lorenzoni, G., 353n Lee, J., 277, 345n 357n Lee, K S Lotus 295 Kotler, P., 118 Kotulic, A G., 337n Lee, L., 352n Low, J., 357n Lowe's, 162 Love, L G 344n, 355n Kozlowski, D., 35-6, 45 Legend, 18 Kraatz, M S 336n, 354n Lehn, K., 357n Lowry, T., 51 Kraft Foods, 235, 314 Lozeau, D Kramer M R., 59, 34In Krause, A., 270 Lei, D T., 337n, 348n, 350n, 351n, 358n Leiblein, M J., 348n, 351n Lemire, C., 349n Krause L 311, 361n Lemon Fresh Comet, 156 Kremer, L 194 Kripalani M., 302, 352n Lengnick-Hall, C A., 360n Lenovo, 18 Lublin, J S., 355n Krishman, R A Lenox, M J 350n Krishnan H Lucent Technology, 260 Leontiades, M., 344n Lucier, C., 354n Kroll, M 338n 339n, 346n, 358n Lere, J C., 342n Lueger, M Lu, J W., 347n Lubatkin, M H., 41, 338n 353n-354n 356n, 360n Lucent, 308 NAME INDEX Luk D M., 355n Luke R D Luker, W A., 337n Lumpkin, G T 355n Lussier, R N Lutz B 209 Lynch, J G 349n Lynch R P 347n Lynn, G S., 359n Lyons, B., 357n MacAvoy, 3390 MacDonald, 215 MacDonald, T., 352n MacMillan, I C., 309 Macy, B., 226 Macy's Department Stores, 225 Maddox, R., 225 Magic Chef, 15 Magnusson, P., 277 Magretta, J Maheraultl, L Mahon, J F., 347n Mahoney, J T., 348n Maisco Capital Management, 269 Makadok, R 346n Makhija, A K., 357n Malekzadeh, A R., 251, 355n Mallory, G R., 337n Malmendier, U., 50, 341n Malone, M S., 345n, 359n Manco, Inc., 276 Mandel, M J., 63 Marley, K., 51, 345n Manikutty, S Mann, L., 358n Mansfield, E., 360n Manuals on Investment, 325 Maguire, J., 351n March, J G., 353n Marcoux, A., 350n Maremont, M Margolis, J D., 59, 341n Marino, L., 356n Market Research.com (Findex), 93 Markoczy, L., 352n Marlboro, 119, 227 Marriott, 196 Martins, L L., 345n Mary Kay Corporation 93 Mascarenhas, B., 346n Massachusetts General Hospital Massarsky, C Masterson, S S 356n Mathews, J A., 353n Matlack C., 336n 352n, 353n Matsushita Electric Industrial Corporation, 117, 301 Mattel 193 198, 229 Matthews, C H MaxiShips software, 198 Maybelline, 77 Mayer, R., 340n Maynard M T., 345n Maytag Company, 16, 107, 193 Maytag Corporation, 13, 59, 60 98, 118, 131, 141, 148, 153, 158, 174, 192, 252, 300, 323, 351, 357 Mazzarol, T., McAlary, S 358n McCann J E III 348n McCarthy, M., 51 McCarthy, M., 343n McCoy, Bernard McDermott D., 224 McDonald, M L., 343n McDonald's Restaurants, 61, 77, 88, 119, 138, 197-8, 218, 243 McDonnell Douglas, McDougal, P P McDowell, J McEvily, S K 344n McGee, J E 344n McGill, M., 344n McGill, R MCI, 186 McKenna, M G., 346n McKesson, 259 McKinsey & Co., 47, 122, 179, 181, 243, 255 McLaughlin C P McLeodUSA, 157 McNatt, D B., 340n McNealy, S., 19 McWhirter, W McWilliams, A., 341n Mead Corporation, 38 Means, G C., 41 Medical Foods Medley, G J Medtronic, 38 Mendenhall, M., 355n Menon, A., 343n Menon, K., 354n Mercedes-Benz, 148, 277 Mercer Delta Consulting, 46 Merck & Co., 294 Mercosur, 6, 7, 78, 86 Meredith, G G., 351n Merlyn, P., 36111 Merrill Lynch, 93, 279 Merrill, G B., 351n Merritt, J., 338n, 354n Mesa Airlines, 170 MeshNetworks, Inc., 301 Messerli, A., 197 Metro, 172 Metropolitan Museum of Art Meyer G D., 352n Meyer, H., 341n Mezias, J M., 347n Michaels, C E., Jr 1-9 Michalisin, M D., 345n Microsoft Corporation, 15, 49-50, 84, 86, 90, 105 119, 121, 142 153-5, 193, 243, 267 271, 279, 286, 295-98 Microsoft Office, 295 Midamar Corporation, 138 149 Mike, B., 355n Miles, G., 88, 229, 353n Miles, R E., 343n, 353n Miller Brewing, 173 Miller, C C., 336n, 348n, 351n Miller, D., 345n 353n, 354n Miller, D J., 348n, 351n Miller, M C Miller, S H., 343n, 353n Millstein, 339n Millstone, 159 Minnesota Mining & Manufacturing Company (3M), 197 Minow, N., 339n Mintzberg, H., 18, 20 209 Miramax Films, 51 Mirvis, P H., 349n Mishra, A K., 355n Mishra, K E., 355n MIT 199 Mitchell, G., 51 Mitchell, R K., 342n Mitchell, W., 337n Mitsubishi Motors, 251 Mitsubishi Trading Company, 87 Modelo, 158 Modem Express, 224 Moesel, D D., 360n Mohrman, S A., 345n Molnar, M J., 336n Money, R B., 349n Monks, R A G., 338n, 339n Montagno, R V., 359n Montemazon, E F., 358n Montgomery Ward, 162, 225 Montgomery, D B., 346n Monthly Labor Review 325 Moody's 46, 94 Moore, G., 122 Moore J H., 354n Morgan Motor Car Company, 149 Morone, J G., 359n Morris, J R., 349n Morris M H Morrison, A Morrow, J L Jr., 349n Mosakowski, E., 168 Mossville Engine Center, 230 Motley Fool, 359n Motorola IL 125, 169, 230 236, 241, 295 301, 307 Motorola's Personal Networks Group, 307 Mr Clean 294, 298 Mr Clean AutoDry, 294 NAME INDEX Mr Coffee, 159 Mr Donut 190 Mroczkowski, T., 355n Mrs Fields Cookies Mugler, J Muir, N K., 352n Muirhead S A 34ln Mulford C L Muller, J 345n Mulvey P W 352n Muralidharan, R 265, 356n Murmann, J P 350n Murphy, D., 355n Murray, E A Jr., 347n Music Land, 134 My Idea, 312 Myers-Briggs, 259 Mystic, 178 Nacher T., 359n Nadler, D A 338n Naffziger, D W 359n NAFTA, 78 86 Nahavandi, A., 251, 355n Naisbitt, J., 343n, 348n Nantucket Nectars, 178 Nardelli, R 218 Nare B Nargundkar, R., 360n NASDAQ, 40, 46-7 Nathan, M., 351n National Association of Corporate Directors, 37 National Car Rental, 239 National Cash Register, 252 National Energy Associates National Federation of Independent Business National Organization for Women, 248 National Science Foundation Naunus, B., 340n Nayak, P R., 361n Naylor, J., 353n Nayyar, P R., 359n NCR Corporation, 125, 252 Neale, M R., 359n NECX, Neff, T J., 339n-340n Nemec, C., 339n Neptune, 307 Nerkar, A 359n Nestea, 178 Nestle, 127, 235, 286 Netscape III, 154, 295, 297 Neubauer F F., 338n Neubaum, D 0., 349n New Balance, 83 New York and Presbyterian Hospitals Health Care System New York Hospital-Cornell Medical Center New York Stock Exchange 40, 45, 46, 47 Newbury Comics, Inc 70, 134, 212 288 Newman, W H., 346n Newport News Shipbuilding, 13 Ng, D Nicholls-Nixon, C L., 360n Nickelodeon, 149 Nickerson, J A., 336n Nicolaes, J Niehoff, B P 338n Nielsen, R P Nijssen, E J., 339n, 357n Nike, Inc., 6, 61 83, 148, 164, 192, 229, 243 Nissan Motor Company, 173, 251 NiteBite Nixon, R D., 355n Nobel, R., 359n Nohgria, N., 337n, 360n Nokia, 119, 286 Noorda, R., 161 Nord W R., 336n, 352n Nordstrom, 116, 208 Norr, H., 348n Norris, D., 149 Norte] Networks, 312 North American Free Trade Agreement (NAFTA), 6, Northwest Airlines, 42, 169 171 Norton, D P., 131, 349n, 357n Novak, R S., 350n Novell, 161 Noxell Corporation, 166 Noxzema, 166 Nucor Corporation, 262 Nuemo, P., 360n Nutrasweet, 85 Nutt, P C., 346n O'Boyle, T F., 360n O'Neill H M 338n, 349n, 351n O'Regan, N., 336n O'Reilly, B 345n, 353n, 355n O'Reilly, C A., III, 360n Ocasio, W., 354n Oddou, G., 355n Oden, H W., 305 Ogden, D., 354n Oghe, H., 338n Ohio Public Employees Retirement System, 51 Ohmae, K., 79, 297, 343n Oil of Olay, 166 Oldham, G R., 232 Oleck, J., 341n Olive Garden, 88 Oliver C., 339n Olivetti, 181 011inger, M., 352n Olson, B J., 377n Olson, E M., 350n, 352n, 361n Open Standards Benchmarking Collaborative, 276 Oracle Corporation, 105 138, 166 222, 278 Orbitz, 47 Orion Pictures, 225 Orlitzky, M F L., 341n Osborne, J D., 343n Oster S M., 350n Osterveld, J., 360n Ouchi, W G., 356n Overseas Business Reports, 326 Overstreet, G A Owens, M Owens-Corning 279 P F Chang's 151 Paikeday, T Palich, L E., 348n Palm Pilot 155 Palmer, T B 351n Palo Alto Research Center (PARC) 121 Pampers 155 Pan Am Building, 201 Pan American Airlines, 225 Pan, Y., 346n Panasonic, 117 Panda Restaurant Group 151 Paper D., 353n Paramount Pictures 51 Pare T P 357n Parish, W Park A., 344n Park, D., 352n Park, N K., 347n Park, S H., 64, 342n 347n Parkinson, D., 76 Parnell, J A., 337n 354n Pascarella, P., 122, 345n Pasternack, B A 336n Patel, 65 Patterson, M L., 300 Paulson, A S., 359n Pearce, J A II 338n 344n, 359n Pearson, J N Peel, M J., 336n Pegels, C C 343n Pekar, P Jr., 336n Pelino D., 244 Penenberg, A L., 343n Peng, M W., 338n Pennings, J M., 349n Pennington, A Pentium, 204 Pentland, B T., 352n Penttila, C PeopleSoft, 128, 166, 278 Pepper, J 92 Pepsi Cola, 118, 178 292 PepsiCo 49, 243, 250, 276 292, 319 Perkins, J., 348n NAME INDEX Perkins, K., 43 Perry, S C Peter Brabeck-Letmathe, 235 Peteraf, M A., 3440 Peters, 283 Peters, T J., 358n Pettit R R., 348n Petty, J W Petty, K Peugeot Citroen Pfeffer, J Pfeifer S Pfizer, 38, 243 Pharmacia AB, 258 Pharmacia Upjohn, 121 Phatak, A V., 358n Phelps, C., 346n Philip Morris, 173 Philip's, 107 Phillips, S J Pine, B J 345n Pineda, R C Pirates of Silicon Valley, 121 Pitcher, P., 340n Pitt D., 342n Pittiglio Rabin Todd & McGrath, 311 Pitts, R A., 337n Pitts, R A., 355n Pittsburgh Brewing Company, 158 Pizza Hut, 138, 151, 250 Plato, 208 Pohang Iron & Steel Company LTD (POSCO), 42 Point, S., 345n Pointer, D D Poirier, C C., 346n Poison, Inc 139 Pojman, L P 342n Polanyi, M., 344n Polaroid Corporation, 201, 223, 270 Polek D., 351n Political Risk Forecasts, 87 Political System Stability Index, 87 Pollock, T G 358n Pontiac, 115 Poole, D., 341n Poon, J M L., 358n Pope, J., 346n Porac, J R 358n Porrini, P., 175, 349n Port, 0., 350n, 361n Porter, M E., 59, 72, 82-5, 87, 95, 101, 107, 113, 145, 158 153-4, 156, 193, 341n, 343n-344n 346n, 348n, 350n Post-It Notes 196-7 Poterba, J M., 345n Potlach Corporation, 149 Potter, M J., 339n Pouder, R W., 339n, 351n Powell, T C 356n Powell, W W Power, C., 359n PowerShip, 198 Prahalad, C K., 234, 243, 344n, 359n Preece, S., 341n PricewaterhouseCoopers, 93, 286 Priem, R L., 342n, 352n 355n Probert, J., 342n Procter & Gamble (P&G), 15, 59, 80, 83, 89, 92-3, 108, 112, 119, 129, 149, 155-6, 166, 185, 189-90, 193, 220, 238, 242, 249, 277, 292-3, 297-8 312 Product and Development Management Association, 298 Project GLOBE, 257 Provan, K G Puffer, S M., 337n Pugliese, D., 343n Puranam, P., 340n Qian, G Quaker Oats, 178, 270, 319 Quaker Soy Crisps, 292 Quinn J B., 20, 199, 337n, 351n Qwest, 36, 46, 157 Rabello, K Radebaugh, L H., 358n Radiata, Inc., 167 Rahim, A Raia, C., 303, 360n Rajagopalan, N., 354n Rajan, M V., 357n Ramaprasad, A., 343n Ramasswamy, K., 348n, 354n Ramirez, G G 340n Ranft, A L., 338n Rangan, V K Rao, S S., 357n Rappaport, A., 350n, 359n Rasheed, A M A., 337n Raymond, L., 353n Raynor, M., 79 Raytheon, 273 Rechner, P L., 341n, 352n Redmond, W., 350n Reebok International, 6, 66, 83, 229, 237 Reed, S., 352n Reeves, M., 345n Register of American Manufacturers, 326 Register of Corporations, 325 Reichert, A., 349n Reimann, B C., 349n Reinemund, S., 49, 292 Reinhardt, A., 345n, 352n Renault, 251 Renshaw, A A., 217, 352n Reputation Institute, 286 Research Health Services Research In Motion Reuer, J J., 348n Reynolds, P D., 346n Rhee, D K., 346n Richard C., 351n Richardson, J., 350n Richardson, S A 338n 339n Richardson-Vicks, 166 Ricklefs, R Rigby, D., 336n Ring, P S., 168 Rite Aid, 162 Rivard, S., 353n River Rouge plant, 167 Rivkin, J W., 347n RJR Nabisco, 271 Ro, Y., 42 Roadway Logistics, 196 Robbins, D K., 349n Robbins, S M., 358n Roberson, B 377n Robert Morris Associates, 318 Robert, M., 360n Roberts, B., 47 Roberts, D., 277 348n Roberts, P W., 345n Roberts-Witt, S., 350n Robinson, G., 351 Robinson, K C Robinson, R B., Jr Robinson, W T., 360n Robustion Products, Inc., 72 Rockwell Aerospace, Roddick, A., 49 Rodrigues, A F., 358n Rogas, E., 308 Rogers, E M., 306 360n Rollins, K., 105 Rolm and Haas, 38 Roman Catholic Church, 207 Roman, M., 341n Romanelli, E., 337n Rosen, B., 345n, 350n Rosenberger, J., 35 In Rosenblum, D., 349n Rosenkopf, L., 359n Rosenkrans, W A Jr., 103 344n Ross D., 239 Ross, J., 352n Roth, K., 341n 355n Rothaermel, F T 359n Rothman, H 357n Rothschild, W E 354n Rousseau, D M., 345n Rovitt, S., 349n Rowe, D., 361n Rowe, W G 356n Rowley, I 359n Rowley, T J 353n Roy, M H., 360n Royal Dutch Shell, 96, 168 RSD, 158 Rubbermaid, 89, 96, 276, 292 NAME INDEX Ruckert, R W., 361n Schomburg, A., 346n Rudney, G Schonberger, R J., 356n Siemens AG, 117, 159, 169 299 Siesfeld, T., 357n Rue L W., 336n Schonfeld, E., 269 Signal Companies, 166 Ruefli T W., 336,7 Schoorman, F D 41, 340n Silicon Valley, 107-8 Ruffles 292 Schroeder, M Silva, M., 360n Rumelt, R P 342n, 347n Schroeder, R G., 350n Silverman B S., 336n Rushlo, M 346n Schultze, W S., 338n Simerly, R L., 345n Russo M V 341n Schwartz, K B., 354n Simmonds, P G., 3480 Rynes, S I , 341n, 345n Schwartz, M., 360n Simon, H A., 337,, Schweiger, D M., 352n, 355n, 356n Simon, J G S S Kresge, 162 Schwenk C R., 352,7 Simon, M SABMiller, 173 Scotch tape, 196 Simpson Industries, 178 Sabritas, 292 Scott Paper, 185 Singapore Airlines, 286 Sabritones, 292 Scott, L., 349n Singer-Loomis, 259 Singh, H., 347n Safeguard 277 Scott, S G Safeway, 149 Seaman, S L., 35217 Singh, V., 345n Satieddine A., 350n Sager, I 339n Sears Holdings Corporation, 162 Sinha, D K., 349n, 351n Sears Roebuck, 77, 91, 151, 176, 219, 226 244 Sinha, K K., 350n Salancik, G R Samson, D 358n Securities and Exchange Commission Sirower, M L 349n, 350n Sjogren, B., 360n Samsung (SEC), 40, 46, 316 Sirkin, H L 359n Sanchez C M., 354n Seeger, J A 60 Minutes 277 Sanchez, J I., 355n Segil, L., 160, 347n Skaggs B C., 350n Sanchez, R., 345n Seidel, M L., 339n Skloot, E Sandberg W R., 352n Seidenberg Ivan, 50 Skyrme, D J., 357n Sanders, W G., 358n Seiko, 298 Slater, R W., 358n Sanford C Bernstein & Company, 292 Selden, L., 349n SAP AG 128, 278 Sapet C Senge, P M., 337n Slater S F., 350n, 352n Sloan, A P Jr., 207, 220 352n Slocum, J W., Jr., 337n, 348n 355n 358n Smart, T 347n, 351n Serer, A., 347n Sapienza H J 352,, Serpa R., 355,, Sara Lee Corporation, 190 Service Corporation International, 38, 152 Sarason, Y 237 Serwer, A., 344n Smircich L., 345n Smith A C 340n Sarbanes-Oxley Act, 46 Seth, A., 348n Smith, G., 343,,, 348n, 358,7 Sargent, R., 14 Sexton, D L Smith, J A., 337n 342n Sashittall, H C., 344n, 345n Saturn, 115 Shaffer, M A., 355n Smith, K G 336n, 343n, 346n, 354n Smith, M., 354n Savage, R 283 Shane, S Smith M F., 357n Shank, J K., 357n Smith, R D., 345,, Saxton, M J 355n Shapiro, D L., 350n Saxton, T., 348n Sharer, K., 301 Smithfield Foods, 167-169 Snapple, 178 SBC Communications, 43 Sbrollini, M., 72 Sharfman, M P., 338n Sharif, M F., 357n Snow C C., 88, 229, 343,, 346n-347n Scamehorn, R C., 336n Scheim E H., 345n Sharma, A., 349n SoBe Beverages, 292 Sharpe, R., 355n Society of Competitive Intelligence Schelhardt T D., 357n Shaver, J M., 337n 344,1 Schendel, D E., 342n-343n, 357n Scherreik, S., 350n Shaw J D 358n Shea, C., 56 Sommerlatte, T., 359n Sonfield, M C Song, J., 347n Sayles, L R., 361 ,7 Shamsie, J., 345n, 346n, 354n 353n, 358n Professionals, 326 Schiller Z 347n Shearson, 252 Schilling, M A., 310, 353n, 359n, 361n Schine, F,., 358n Sheehan, C., 347n Song, K P., 348n Shen, W., 340n, 354n Song, M., 352n Schlange L E., 344n Shenkir, W G., 357n Shepherd, D Song, Y 1., 343n Schlereth, J., 353n Schlit, H., 314 Sheppard, J P 339n Sonnenfeld, J A., 340n, 342n Schlitz Brewing Company, 40 Schlosser J., 343n Sherman, H 339n Shiefer, A., 342n Sony, 109-10, 155, 286, 297, 301 Sony Walkman, 295 Schlosser R 353n Shook, C L., 355n Soper, B., 357n Schmidt D R., 358n Shrader, C B Schmidt, F L., 341n Shrader, R C Sorensen J B., 345n, 36017 Sorking, A R Sonnack, M., 35917 Schmidt J A 264 Shuman, J C Schneider A 34917 Sidhu, J S., 337n South African Breweries (SAB), 142 144 173 Schoenecker, T S 346/7 Siegel, D., 341n Southern California Edison NAME INDEX Southwest Airlines, 3, 16, 49, 89, 105, 110, 148, 156, 286, 312 Spanos, Y E., 336n Spector P E 355n Spekman, R., 53 Spencer Stuart, 42 Sperlich, H., 297 Spreitzer, G M., 355n Springer, M., 350n Sprint PCS, 192, 270 Spades, R., 72 SSA, 278 St Onge, S., 350n Stafford, E R., 341 n Stalk G., Jr., 360n Standard & Poor 46, 94, 318 Standard Oil, 219, 244 Standifird, S S 345n Stanley Works, 279 Staples, 14, 15, 192, 196-7 Starbucks, 286, 312 Statistical Abstract of the United States, 325 Staw B M., 336n 352n Stearns, T M., 346n Steele, F L Steensen, J., 186 Steensma, H K., 35In, 353n, 356n Steinway, 155 Stepanek, M., 361/7 Stephan, J., 350n Sterling, J., 353n Stern Stewart & Company, 270 Stern, G 355n Stern, S 343/1 Stevens, S., 350n Steward, M., 162 Stewart Enterprises, 152 Stewart G B., III, 357n Stewart, K J., 339n Stewart, T A., 358,t 361n Stewart, W H., Jr 337/7 Stipp, D Stivers, B P., 357n Stobaugh, R B., 358n Stofford, J M., 343n Stoneci ter, Stoner, C R., 355n Stonich, P J., 358n Strauss, G 341n Stuart, T E., 360/7 Stubbart, C 1., 343n Subramaniam, M., 355/7 Subrainanian, R 354n Sull, D N 337n Sullivan, J., 127 Summers, L H., 345n Sun Microsystems, 19 Super Size Me, 62 Survey of Current Business, 325 Swartz, M., 35 SWD, Inc., 266 Sweo, R., 337n Swifter, 312 Symonds, W C., 337n, 338n Taco Bell, 250 Taggart J H., 353n Tagiuri, R., 342n Taisei Corporation, 23 Takeishi, A., 351n Tan, H H., 340n Tan S J Tancredi, J 306 Tannenbaum, J A., 346n Tanzer, J., 341n Target, 23, 38, 161-2, 273 Tate, G., 50 341n Tavakolian, H 353/7 Tayles, M 350n Taylor, A., 239 Taylor, M S., 356/7 Teagle Foundation Technic, 117 Techtronix, 308 Teece, D J., 342n, 347n 349n Teledyne, 270 Tellis, G J., 346n Teng, B S 347n Tenneco, 270 Tennessee Valley Authority, 205 Teradyne 307 Tergesen, A., 357n Tesco, 172 Tesone, D V 356n Tetenbaum, T J., 355/7 Texas Gas Resources, 171 Texas Instruments, 38, 306 Textron, 285 Thain, D H., 221 Thilgen, T., 348n Thomas, A S., 354n Thomas, H., 343n Thomas, J B 342n Thomas, L G., III, 352n Thomke, S., 359n Thompson J D Thornton, E 340n, 349,, Threat, H., 357n 3Com, 302 3M Corporation, 16, 38, 196, 231, 235, 292-3, 296, 306, 309 TIAA-CREF 40 Tide, 81 277 Tihanyi, L., 338n, 340n Timex, 148 Titman, S., 350n Toccacelli, J., 341n Toegel, G., 351n Tomkins, A., 3437/ Tomlinson, D 349n Tonge, R Toombs, L., 338/7 Toro, 170 Torres, N L Toshiba, 159, 169 Tosi, M L., Jr 340/7, 356n, 358,, Tower Records, 75 134 Towner, J., 359n Townsend, A M., 345n Toyota Motor, 119 129, 150, 173, 186 Toys 'R' Us, 162, 159, 173 TradeMatrix, Trading Process Network, 198 Transmet Corporation Transportation Maritma Mexicana, 173 Travis, V R Treacy, M., 95, 344n Treece, J B., 349/7 Trend Micro, 234 Trevino, L K 342/7 Tricon Global Restaurants, 250 Trips, 302 TRW Systems, 228 Tsang E W K., 337/7 Tsui, A S., 347n Tufano, P., 35117 Tully, S., 357n Tuna, I., 338/7 Tung, R L., 355n Tupperware, 95 Turner, D B., 341n Turner, L 36 Turner, T., 49 Tushman, M L., 337n 360n TWA 201 Twinkles, 77, 178 Tyco International Ltd., 35-6, 45-6, 63 Tyler B B., 352n Ullmann, A A 194 Ungson, G R 347n UNICEF Unilever 189-90, 235 Union Carbide, 196 United Airlines (UAL), 42 170, 201 United Auto Workers Local 600, 127 United Express, 170 United Parcel Service, 127 U.S Chamber of Commerce 93 U.S Congress, 40 U.S Department of Defense, U.S General Accounting Office U.S Industrial Outlook, 325 U.S Internal Revenue Service (IRS), 276 U.S National Association of College and University Business Officers U.S Navy, 281 U.S Robotics, 224 U.S Securities and Exchange Commission (SEC) , 35 39, 40, 46, 94, 326 U.S Small Business Administration, 299 U.S Steel, 42 NAME INDEX United Steel Workers, 126 United Way University of Southern California, 46 Unterman, I Upjohn Pharmaceuticals, 258 UPS, 15 198 Urschel Laboratories, 191 Useem, J 359n Useem, M., 337n Uzumeri, M V., 356n Vafeas, N 339n Vaghefi, M R., 336n Vaidyanath, D., 347n Valikangas, L., 361n Value Line, 94 Van Alstyne, M., 217, 352n van Brugge, R 292 Van de Ven, A H., 168 Van Der Linde, B., 266 van Oijen, A., 349n Van Riel, C., 345n Vanac, M Varchaver, N 338n Varian, T., 356n Vedder R G 343n Veiga, J F., 342n, 348n, 355n Vella, A J Venkatraman, N., 355n Verdier, L Verdin, P J., 344n Verizon Communications, 50 Vermeulen, F., 349n Versteeg, A., 345n VerticalNet, Very, P., 355n Veterinary Centers of America, 152 Vihert C., 344n Vidal Sassoon 166, 277 Vidal, D L 341n Viskny, R W 342n Visual Insights, 308 Vogelstein, F 337n Volberda H W., 337n, 347n Von Bergen C W., 357n Von der Embse, T J., 342n Von Hippel, E., 296, 343n, 359n Vorhies D W., 349n Voss, B., 348n, 352n W&T Offshore, 47 Waddock, S A., 341n Wade, J Wade, J B., 358n Wagley R A., 342n Wagner J A., III, 352n Wagner, S 360n Wagner T., 225 Wake Forest University, 259 Waldman, D A., 340n, 355n Walgreen Company, 76, 162 Walker, C., Jr., 361n Walker, P L., 357n Walkman, 155, 305 Wall Street Journal Index, 326 Walleck, A S., 336n Wallender, H W., III, 344-5 Wal-Mart, 105, 108-10, 129, 148, 151-2, 171-2, 175 178, 193, 208, 210 276 278, 286 Walsh, F., 35, 45, 59 Walsh, J P., 341n Walston, S L., 349n Walt Disney Productions, 45, 51 111, 118, 148, 201, 224 Walters, B A., 337n 342n Ward, J L Waring, G., 352n Warner Brothers, 51 Warner, M., 339n Warner-Lambert, 23 Waterman, R H 283, 358n Watkins, S., 63, 65, 342n Watson W E Weaver, K M 356n Webb, J., 307 Webber, A M., 360n Weber, H R 338n Weber J., 348n Weber, Y., 353n, 356n WebFountain, 80 92 Weinstein, H 51 Weisul, K., 339n Welch, D., 337n, 348n, 356n Welch, J., 208, 245 Weldon, W., 214 Wells, F 51 Welsch, H P Werle, M J., 351n Werner, S., 358n West, G P., III, 352n Westbrook, R., 346n Westhead, P Westinghouse 157 Westly, S., 51 Westphal, J D., 339n, 343n Weyerhauser, 112 Wharton School of Business, 293 Wheaties, 56 Wheatley, J., 350n Wheelen, T L, 26, 51 200, 338n, 339n Wheeling-Pittsburgh Steel, 42, 225 Whirlpool, 38, 107, 153, 194, 198, 270, 279, 300 White, J B., 358n White, M A., 355n White, M C., 354n Whitford, D Whitman, M., 119, 226 279 Who Wants to Be a Millionaire, 201 Whyte, G., 352n Wiersema, F 95 344n Wiersema, M., 52 341n 354n Wiggenhorn W., 337n 354n Wiggins, R R., 336n Wiklund, J Wilcox, R T., 345n Willard, G E., 361n Williams, J R., 109, 350n Williams M L., 346n Williamson, E 168 Williamson, P J., 344n Wilson, D C., 337n, 353n Wilson, H J III, 350n Wilson, I., 336n Windows 84 121, 154 Windows 95 295 Winfrey, Winnebago (RVs), 76 Winter S G., 168 Wiseman, R M 351 n Wisersema, 95 Wissema, H., 343n Wonder Bread, 72 178 Wong M., 337n Woo, C W Woo, C Y 350n, 360,1-361n Woods T., 164 Woodyard, C 348n Woolco 162 Wooldridge, J R., 358n Word 83 WordPerfect, 295 World Bank World Trade Annual, 336 World Trade Organization (WT0) 86 302 WorldCom 35 36 46, 62, 63 Worrell, D L 339n Wortman, M S., 358n Wright M., 350n Wright, P M., 338n-339n 346n 356n 358n Wyatt, J 342n Wymonds, W C 338,1 Wynett, C., 312 Xerox Corporation, 107, 121 231, 244, 245-6, 275, 308 Xie, J L 232 Xin, K., 347n Yamada K 359n Yamaha, 155, 277 Yang B., 343n Yang, D J., 345n Yankelovich Partners, 315 Yauger, C C Yen, H 342n Yeung, B., 337n Yoder, S K., 361n Young, C E., 349n Young L., 340n, 344n Young M N 339n NAME INDEX Young, S., 248 Yue, Q., 354n Yuengling Yum! Brands, 250 Zahra, S A., 338n 360n-361n Zajac, E J., 336n Zander, E., 19, 236 Zangwill, W I., 359n Zaralis, G., 336n ZBox Company ZDNet, 327 Zeithaml, C P., 338n, 348n-349n Zellner, W., 63, 34In, 359n Zeng, M., 347n Zhang, Y., 354n Zimmer Holdings, 76 Zippo Manufacturing, 20 Zombie Savings and Loan, 69 Zook, C., 164, 347n Zoom Technologies, 224 Subject Index 10-K form, 315 10-Q form, 315 14-A form, 315 360-degree appraisal, 197 Absorptive capacity, 303 Accounts receivable, 314 Acquisition, 166, 173, 251 Action plan, 253 Activities, primary, 113 Activities, support, 113 Activity ratios, 316 Activity trap Activity-based costing (ABC), 266 Adaptive mode, 21 Advanced manufacturing technology (AMT), 193 Advantage, institutional Advisory board Affiliated directors, 40 Agency theory, 39 Alliance, strategic R&D, 301 Alliance, strategic 157, 166 Alternative energy sources, 75 Alternatives, strategic, 32 Altman's bankruptcy formula, 320 Ambiguity Analysis, stakeholder, 60 Analysis, SWOT, 138 Analysis, value chain, 111 Analytical portfolio manager, 241 Analyzers, 89 Annual report, 315 Appraisal system, 244 Appraisal, 360-degree, 197 Arms race, 201 Assessment centers, 244 Assimilation, 252 Audit, strategic, 23 Autonomous work teams, 125 Baby boomers, 76 Backward integration, 167 Balance sheets, 315, 316, 319 Balanced scorecard, 272 Bankruptcy, 178, 242 Bankruptcy, z-value, 320 Bargaining power of buyers, 85 Bargaining power of suppliers, 85 Basic R&D, 121 BCG (Boston Consulting Group) growthshare matrix, 179 Behavior controls, 265 Behavior substitution, 281 Benchmarking, 275 Best practices Birth, 225 Blind spot analysis, 103 Board of director responsibilities, 36 Board of directors, 26, 272 Board of directors continuum, 37 Board role in strategy, 37 Board, committee, 45 Board, election, 44 Board, nomination, 44 Board, organization, 44 Board, size, 44 BOT Concept, 174 Brainstorming, 96 Brand management, 228 Brand, 118 Brand, corporate, 119 Budget, 17, 218 Budgeting, capital, 120 Budgets, operating, 274 Business ethics, 62 Business intelligence, 92 Business model, 110 Business plan, strategic Business strategy, 15, 145 Businesses, family Buyers' bargaining power, 85 Buyout, leveraged, 191 Bypass attack, 155 Cannibalize, 90 Capabilities, 106, 303 Capacity, 84 Capital budgeting, 120 Capital requirements, 83 Capital, social, 59 Captive company strategy, 177 Captive company, 169 Case analysis, 328 Cash cows, 180 Cash flow statements, 315 Cash flow, 314 Cash flow, operating, 269 Categorical imperatives, 67 Cautious profit planner, 241 Cellular organization, 229 Center of excellence, 184 Center of gravity, 112 Centers, expense, 274 Centers, investment, 274 Centers, profit, 274 Centers, responsibility, 274 Centers, revenue, 274 Centers, standard cost, 274 Centralization versus decentralization, 234 CEO, 48 Chapter 11 bankruptcy, 178 225 Chief risk officer, 267 Clusters, 107 Code of ethics, 66 Codetennination, 42 Collective goods Collusion, 157 Commodity, 84 Common thread, 143 Common-size statements, 319 Communication, 250 Compensatory justice, 67 Competence, technological, 303 Competency, 106 Competency, core, 106 Competency, distinctive, 106 Competitive activity report, 80 Competitive intelligence, 92 Competitive scope, 147 Competitive strategies, 15, 145 Competitive strategy, issues, 150 Competitive strategy, risks, 149 Competitive tactics, 153 Competitors, 94 Complementor, 86 Computer-assisted design and computer assisted manufacturing (CAD/CAM), 124, 194 Concentration, 166 Concentric (related) diversification, 170 Concurrent engineering, 125 Conglomerate (unrelated) diversification, 170 Conglomerate structure, 115 Connected line batch flow, 194 Consensus, 207 Consolidated industry, 86, 152 Consolidation, 177 Consortium, mutual service, 158 Constant dollars, 320 Constraints on strategic management 1-17 SUBJECT INDEX Consumer price index, 202 Defensive centralization Continuous improvement, 195 Defensive tactic, 155 Entrepreneurial characteristics Continuous systems, 124 Delphi technique, 96 Entrepreneurial culture 305 Continuum of directors, 37 Demographic trends, 76 Entrepreneurial mode, 20 Continuum of international industries, 87 Demographics Entrepreneurial orientation (E0) Continuum of sustainability, 109 Devil's advocate, 207 Entrepreneurial venture Contracting, 308 Dialectical inquiry, 208 Entrepreneurship, corporate 306 Contraction, 177 Differentiation focus, 149 Entrepreneurship, social Entry barrier, 83 Entrepreneur Contracts, management, 174 Differentiation, 147-8 Control guidelines 282 Dimensions of national culture, 256 Entry options, international 171 Controls, behavior 265 Dimensions of quality, 151 Environment, societal 27 Controls, input, 265 Directional strategy, 165 Environment, task, 27 Controls, output, 265 Directors, affiliated 40 Environmental scanning 10, 73 295 Controls, steering, 264 Directors, family, 40 Environmental uncertainty 72 Ethical responsitTilitle;7,:5r Cooperative strategies, 15 157 Directors, inside, 39 Co-opetition, 161 Directors, international, 42 Ethics 66 Core competency 106, 225 Directors, outside, 39 Ethics, business, 62 Ethics, code of, 66 Core rigidity, 106 225 Directors, retired, 40 Corporate assessment program, 40 Discretionary responsibilities, 59 Evaluation and controlinformation 263 Corporate brand, 119 Distinctive competencies, 106 Corporate culture, 116, 206 Distribution channels, 83 Evaluation and control process 262 Evaluation and control, 17 33 309 Corporate culture, managing, 248 Distributive justice, 67 Executive development Corporate culture, pressures, 206 Diverse workforce, 197 Executive leadership, 49 Corporate development, blocks, 223 Diversification, 166, 170 Executive succession, 243 Corporate development, stages, 220 Diversification, concentric, 170 Executive type, 241 Corporate entrepreneurship, 306 Diversification, conglomerate, 170 Exit barriers, 84 Corporate governance, 26, 36 Diversity of rivals, 84 Expense centers, 274 Corporate governance, trends, 47 Diversity, human, 127 Experience curve, 181 Corporate parenting, 183 Divestment, 178 Expert opinion, 96 Explicit knowledge, 109 Corporate performance, 267-8 Divisional performance, 273 Corporate reputation, 119 Divisional structure, 115, 220, 222 Exporting, 171 Corporate scenarios, 202 Do everything, 201 External environment, II 27 Corporate stakeholders, 59 Dogs, 180 External strategic factors, 82 Corporate strategy, 15, 164 Donors Extranet, 128 Corporation, 36 (Downsizing, 245 Cost accounting, 266 `Downsizing gu idelines Cost focus, 149 Due care, 37 Cost leadership, 148, 181 Durability, 109 Cost proximity, 149 Dynamic industry expert, 241 Costs, fixed, 84 Dynamic pricing, 191 ll Counterfeit, 277 Extrapolation, 96 Eyeballs, 269 Factors affecting new venture success Factors, key success, 91 Fairness, 67 Crisis of autonomy, 222 Earnings per share (EPS), 268 Crisis of control, 222 Economic forces, 73 Family directors, 40 Crisis of leadership, 222 Economic responsibilities, 57 Feedback, 18 Family businesses Cross-functional collaboration, 214 Economic value added (EVA), 270 Finance, 29, 119 Cultural integration, 116 Economics, transaction cost 167 Financial analysis, 316 Cultural intensity, 116 Economies of scale, 83, 125, 181 Economies of scope, 125 Financial leverage 120 Culture, corporate, 28, 116 Culture, entrepreneurial, 305 EFAS (External Factors Analysis Summary) Financial statements, 319 Culture, national, 256 Cycle of decline, 179 Table, 97, 329 Financial measures, 268 Financial statements, pro forma, 202 80/20 rule, 282 Financial strategy, 191 Electronic commerce, Firm, profit-making Death, 225 Electronic networking, 75 First mover, 154 Decentralization Embrace and extend strategy, 298 Flanking maneuver, 155 Decision making modes, 20 Employee stock ownership plan (ESOP), 309 Flexible manufacturing, 125 194 Decision making, 20 Decision, strategic, 20 Encirclement, 155 Focus strategy, differentiation 149 Decline, 225 Engineering (or process) R&D, 121 Follow the leader, 201 Deculturation, 252 Engineering, reverse, 108 Follow-the-sun management, 198 Dedicated transfer lines, 194 Defenders, 88 Enterprise resource planning (ERP), 278 Footnotes, 314 Enterprise risk management (ERM), 267 Forecasting, 95 Focus strategy, cost, 149 SUBJECT INDEX Forward integration 167 Four-corner exercise, 101 Fragmented industry 86, 151 Franchising, 173 Free cash flow 269 Frontal assault 155 Fuel cells 75 Functional performance 273 Functional strategy 15, 189 Functional structure, 114, 222 Fuzzy logic, 193 GE business screen, 181, 305 Generation Y, 77 Generations, 76 Genetically altered organisms, 75 Geographic-area structure, 235 Global industries, 87, 232 Global issue, 42 Global MNC, 278 Goal conflicts Goal displacement, 280 Goal, 14 Golden rule, 67 Goods, public, 340 Governance, relation-based, 64 Governance, rule-based, 64 Green-field development 173 Gross domestic product (GDP), 202, 320 Gross margins, 314 Group, strategic, 88 Gfowth strategieS, 165; Growth, 225 -l Growth, horizontal, 169 Growth, vertical, 167 Guerrilla warfare, 155 n. Quidelines, control, 282 Gut feel, 209 , Hierarchy of strategy, 15 Hit another home run, 201 Horizontal growth, 169 Horizontal integration, 169 Horizontal strategy, 185 House of quality, 310 Hubris, 50 Human assets, 106 Human diversity, 127 Human resource management (HRM) strategy, 31, 197 Hurdle rate, 17 Hypercompetition, 90, 152 Idea IFAS (Internal Factor Analysis Summary) Table, 129, 329 Imitability, 108 Implementation, 33 Implicit strategies, 15 Incentives, strategic, 283 Income statements 315-6, 319 Independent business units, 308 Index of R&D effectiveness, 311 Index of sustainable growth, 320 Individual rights approach, 67 Individualism-collectivism, 256 Industry analysis, 73 Industry fragmented, 86 Industry matrix, 91 Industry scenario, 96 Industry structure, 151 Industry value-chain, 112 Industry, 11 Industry, fragmented, 86, 151 Industry, global, 87, 232 Industry, multidomestic, 87 232 Influence pattern Information systems (IS), 31 Information systems, strategic, 278 Information systems/technology, 127 Information technology strategy, 198 Innovation, 291 Innovation, open, 193 Innovation, sources Innovations, successful, 294 Innovations, unsuccessful, 294 Input controls, 265 Inputs Inside directors, 39 Institution theory, Institutional advantage Integration, 251 Integration, backward, 167 Integration, forward, 167 Integration, full, 168 Integration, horizontal, 169 Integration, quasi-, 168 Integration, taper, 168 Integration, vertical, 167 Integration manager, 240 Integrator, 240 Intellectual property, 301 Intelligence, competitive, 92 Interest rate, prime, 320 Interlocking directorate, 43 Interlocking directors, direct, 43 Interlocking directors, indirect, 43 Intermittent systems, 123 Internal consistency, 208 Internal environment, 11, 28 Internal strategic factors, 106 International development, stages, 233 International entry options, 171 International strategic alliances, 233 International transfer pricing, 276 Intranet, 128 Intuition, 209 Investment centers, 275 Islamic law, 78 ISO 14000 Series, 265 ISO 9000 Series, 265 Issues priority matrix, 81 Job characteristics model, 231 Job design, 231 Job enlargement, 231 Job enrichment, 231 Job rotation, 231, 245 Job shop, 194 Joint venture, 159, 173 Justice approach, 67 Just-in-time (J1T), 196 Keiretsu, 43 Key performance measures, 272 Key success factors, 91 Knowledge, explicit, 109 Knowledge, tacit, 109 Laissez-faire, 57 Late movers, 154 Law, 66 Lead director, 45 Lead users, 296 Leader, transformational, 49 Leadership, executive, 49 Leading, 240 Leading, international issues, 256 Lean six sigma, 216 231 Learning organization, Learning process, 18 Legal responsibilities, 57 Levels of moral development, 65 Leverage ratios, 316 Leverage, financial, 120 Leverage, operating, 124 Leveraged buyout, 191 Licensing, 172 Licensing arrangements, 159 Life cycle, organizational, 224 Life cycle, product, 118 Lifestyle company Line extensions, 189-90 Linkages, 113 Linking pins Liquidation, 178 Liquidity ratios, 316 Location tactic, 155 Locus of control Logical incrementalism, 21 Logistics strategy 196 Logistics 30 Long-term contracts, 169 Long-term evaluation method, 283 Long-term orientation, 257 Losing hand, 201 Lower cost strategy, 147 Management audits, 273 Management buy outs, 191 Management by objectives (MBO), 254, 257 Management contracts, 174 Management development, 243 Management, top, 27, 48 SUBJECT INDEX Managing technology and innovation, 291 Manufacturing resource planning (MRP II), 194 Manufacturing strategy, 194 Manufacturing, flexible, 125 Market development, 190 Market location tactic, 155 Market position, 118 Market research, 297 Market segmentation, 118 Market value added (MVA), 271 Marketing 28, 117 Marketing mix, 118 Marketing strategy, 190 Masculinity-femininity, 256 Mass customization, 125, 195 Mass-production, 194 Matrix of change, 216 Matrix structure, phases, 228 Matrix structure, 226 Matrix, outsourcing, 200 Matrix product/market evolution, 305 Matrix, TOWS, 144 Maturity, 225 Measures of performance, 268 Measures, key performance, 272 Measuring performance, 263 Measuring performance, problems, 279 Merger, 166 Micro new ventures department, 308 Mindshare, 269 - 7- Mission statement, 13, 25, 29 \.Mission, 12, 143 MNC, global 278 -MNC, multidomestic, 278 Model, business, 110 Modem, 224 Modular manufacturing, 195 Moore's law, 122 Moral development levels, 65 Moral relativism, 65 Morality, 66 Multidomestic industries, 87, 232 Multinational corporation (MNC), 78, 232, 278, 319 Multiple sourcing, 195 Multipoint competition, 185 Mutual exclusivity, 208 Mutual service consortium, 158 MUUs (monthly unique users), 269 ( Need for achievement Need for control Net income 314 Net present value (NPV), 205 Network structure, 228 New entrants, 83 New product business department, 307 New product experimentation, 297 New product development stages, 305 New venture division, 308 New venture, guidelines Niche, market, 142 Niche, propitious, 142 No change strategy, 176 Not-for-profit organizations Not-for-profit strategies Objectives, 14, 143 Offensive tactic, 155 Open innovation, 193 Operating budgets, 274 Operating cash flow, 269 Operating leverage, 124 Operation, turnkey, 174 Operations, 30, 123 Operations strategy, 193 Opportunity Options, real, 205 Orchestrator, 306 Organization slack, 166 Organizational analysis, 106 Organizational assets, 106 Organizational learning, Organizational learning theory, Organizational life cycle, 224 Organizational routines, 218 Organizational structures, 114, 226 Other stakeholders, 86 Output controls, 265 Outputs Outside directors, 39 Oilts, -T69,1 98 Outsourcing, disadvantages, 199 Outsourcing, errors, 199 —Outsourcing matrix, 200 — Parallel sourcing, 196 Parenting, corporate, 165 Part-time workers, 127 Pattern of influence, 343 Pause/proceed-with-caution strategy, 175 Penalties, 346 Penetration pricing, 191 Performance, corporate, 267 Performance, divisional, 273 Performance, functional, 273 Performance, measuring, 263 Performance appraisal system, 244 Performance evaluations, 273 Performance gap, 19 Performance, 18, 263 Periodic statistical reports, 274 Phantom stock Phases of strategic management, Physical assets, 106 Piggybacking, strategic Pioneer, 154 Piracy, 277 Planning mode, 21, 320 Policies, 208 Policy, 15 Political strategy, 205 Political-legal forces, 73 Politics Population ecology, Portable information devices 75 Portfolio analysis, 165, 179, 305 Portfolio analysis, advantages, 182 Portfolio analysis, limitations 182 Portfolio matrixes 305 Posture, strategic, 26 Power distance, 256 Precision farming, 75 Pressure-cooker crisis, 223 Pricing, dynamic, 191 Pricing, penetration, 191 Pricing, skim, 191 Pricing, transfer, 275 Primary activities, 113 Primary stakeholders, 60 Prime interest rate, 320 Private nonprofit corporations Privatization Problem children, 180 Procedures, 17, 218 Process innovations, 299 Process R&D, 299 Product champion, 306 Product development, 189-90 Product innovations, 299 Product life cycle, 118 Product R&D, 121, 299 Product/market evolution matrix 305 Product-group structure 235 Production sharing, 174 Professional liquidator, 242 Professionalization Profit centers, 274 Profit maximization, 57 Profit strategy, 176 Profitability ratios, 316 Profit-making firm Profits, repatriation, 274 Program, 16, 216 Project manager, 228 Property, intellectual, 301 Propitious niche, 142 Prospectors, 89 Public goods Public governmental units Pull strategy, 190 Punctuated equilibrium 18 Purchasing power parity (PPP) 79 99 Purchasing strategy, 195 Push strategy, 190 Quality of work life, 127 Quality, dimensions, 151 Quasi-integration, 169 Question marks, 180 SUBJECT INDEX R&D intensity, 120, 298 R&D mix, 121 R&D strategy, 192 R&D, basic, 121 R&D, best practices, 311 R&D, effectiveness index, 311 R&D, engineering 121 R&D intensity, 121 R&D, process, 299 R&D, product, 121 299 R/3 software, 278 Ratio analysis, 316 Reactors, 89 Real options approach, 205 Red flag, 354 Red_ tape crisis, 223 Reengineering, 229) Repatriation of profits, 74, 277 Replicability, 108 Reports, periodic statistical, 274 Reputation, corporate, 119 Research and development (R&D), 120 Resource maturity Resources, 28, 106 Responsibility centers, 274 -''i -67-i Responibty,calS l Retired executive directors, 40 Retrenchment strategies, 165, 176 Retrenchment, problems, 245 Retributive justice, 67 Return on equity (ROE), 268 Return on investment (ROI), 268 Revenue centers, 274 Revenue sources Reverse engineering, 108 Reverse stock splits, 192 Rewards Rightsizing, 245 RISC technology, 158 Risk assessment, international, 87 Risk management, enterprise, 267 Risk, 149, 204 Rivalry, 84 Robotics, 194 Robots, 75 ROI, 268, 280-1, 284 Role of the board, 37 Rollup, strategic, 152 Rules of thumb, 282 SBU, 115, 223, 283 Scenario box, 202 Scenario writing, 96 Scope, competitive, 147 Scope, strategic, 303 Scorecard, balanced, 272 SEC forms 14-A 315 SEC forms, 10-K, 315 SEC forms, 10-Q, 315 Secondary stakeholders, 60 Selection, 243 Sell-out strategy, 178 Separation, 252 SFAS (Strategic Factors Analysis Summary) Matrix, 139, 319 Shareholder value, 269 Shareholder wealth, 270 Short-term orientation, 279 Simple structure, 114, 221 Six sigma, 230 Six sigma, lean, 231 Skim pricing, 191 Slack, organization, 166 Small-business firm Smokestacks, 236 SO strategies, 145 Social capital, 59 Social entrepreneurship responsibility, 56) Societal environment, 27, 73 Societal trends, 74 Sole sourcing, 195 Sources of innovation Sources of revenue Sourcing multiple, 195 Sourcing, parallel, 195 Sourcing, sole, 195 Sourcing, technology, 300 Special business units, 307 Spin-off, 308 Sponsor, 306 ST strategies, 145 Stability strategies, 165, 175 Staff, strategic planning, 52 Staffing, 240 Staffing, international issues, 246 Stage-gate process, 309 Stages of corporate development, 220 Stages of international development, 233 Stages of new product development, 305 Staggered board, 44 Stakeholder analysis, 60 Stakeholder measures, 269 Stakeholder priority matrix 205 Stakeholder, corporate, 59 Stakeholders, other 86 Stakeholders, primary, 60 Stakeholders, secondary, 60 Standard cost centers, 274 Standard operating procedures (SOP), 17, 218 Stars, 180, 259 Statistical modeling, 96 Steering controls, 264 Stewardship theory, 40 Stickiness, 269 Stock splits, reverse, 192 Stock, tracking, 192 Strategic alliance, 157, 166 Strategic alliance, R&D, 301 Strategic alliances, international, 233 Strategic alternatives, 22, 32, 330 1-21 Strategic audit, 23 129, 273, 321, 228, 331 Strategic audit worksheet, 322 Strategic business plan Strategic business units (SBUs), 115, 223, 283 Strategic choice, 207 Strategic choice perspective, Strategic decision-making process, 21 Strategic decisions, 20 Strategic factors, 10 Strategic factors, external, 81 Strategic factors, internal, 106 Strategic flexibility, Strategic group, 88 Strategic inflection point, 19 Strategic information systems, 278 Strategic management, Strategic management model, 11 Strategic management phases, Strategic myopia, 81 Strategic piggybacking Strategic planning staff, 52 Strategic planning, 50 Strategic planning, formality Strategic posture, 26 Strategic R&D alliance, 301 Strategic rollup, 152 Strategic scope, 303 Strategic type, 88, 242 Strategic vision, 49 Strategic window, 142 Strategic-funds method, 284 Strategies to avoid, 201 Strategies, not-for-profit Strategy formulation, 12, 138, 289 Strategy implementation, 16, 214 Strategy implementation, problems, 215 Strategy, 14 Strategy-structure compatibility, 249 Strategy, business, 15, 145 Strategy, competitive, 15, 145 Strategy, cooperative, 15, 157 Strategy, corporate, 15, 164 Strategy, directional, 165 Strategy, financial, 191 Strategy, functional, 15, 189 Strategy, human resource management, 197 Strategy, implicit, 15 Strategy, information technology, 198 Strategy, logistics, 196 Strategy, manufacturing 193 Strategy, marketing, 190 Strategy, operation, 193 Strategy, political, 205 Strategy, purchasing, 195 Structure follows strategy, 219 Structure, cellular, 229 Structure, conglomerate, 114 Structure, divisional, 114 Structure, functional, 114 Structure, geographic area, 235 Structure, industry, 151 SUBJECT INDEX Structure, matrix, 226 Technological follower, 192 Unsuccessful innovations, 294 Structure, network 228 Technological forces, 73 Utilitarian approach, 67 Structure, organizational, II 28, 114—I16,') 219:223 Technological leader, 192 Value added, economic, 270 Technology scouts, 193 Value added, market, 271 Structure, product-group, 235 Technology sourcing, 300 Value chain, Ill Structure, simple, 114 Technology transfer, 121 Value discipline triad, 102 Stuck in the middle, 150 Technology, 291 Value, shareholder, 269 Suboptimization, 281 Temporary workers, 127 Value-chain analysis, Ill Substages of small business development Threat of new entrants, 83 Value-chain partnership 159 Substitute product, 85 Time to market, 289 Value-chain, corporate 113 Successful innovations, 294 Timing tactic, 154 Value-chain, downstream, 112 Suppliers' bargaining power, 85 Tipping point Value-chain, industry 112 Supply-chain management, 128 Top management responsibilities, 48 Value-chain, upstream 112 Support activities 113 Top management, 27, 48, 272 Values statement, 13 Sustainable growth index of, 320 Total quality management (TQM), 255 257 Venture, joint, 159, 173 Switching costs, 83 TOWS Matrix, 144 Vertical growth, 167 SWOT analysis I 18, 329 Tracking stock, 192 Vertical integration, 167 Synergy, 170, 218 Transaction cost economics, 167-8 Virtual organization, 228 Systems, continuous, 123 Transfer pricing, 275 Virtual personal assistants, 75 Systems, intermittent, 123 Transfer pricing, international, 274 Virtual teams, 126 Transferability, 108 Vision statement, 13 Tacit knowledge 109 Transformational leaders, 49 Vision, strategic, 49 Tactic, 153 Transparency, 108 VRIO framework, 106, 129 Tactic, defensive, 155 Trends in governance, 47 Tactic, location, 154-5 Triad 79 WebFountain, 80 Tactic, offensive, 155 Trigger point 79 Weighted-factor method 283 Tactic, timing, 154 Triggering event, 19 Wi-Fi technology, 301 Take-off Turnaround specialist, 242 Wildcats, 180 Takeovers, 166 Turnaround strategy, 176 Window, strategic, 142 Taper integration, 168 Turnkey operations, 174 WO strategies, 145 Task environment, 11, 27, 73, 80 Type, strategic, 88 Workers, temporary/part-time 127 Teams, autonomous, 126 WT strategies, 145 Technological competence, 121, 303 Uncertainty avoidance, 256 Technological discontinuity, 122 Union relations, 126 Z-value, 320 [...]... copyright holders are solely responsible for case content Reprint permission is solely granted to the publisher, Prentice-Hall, for the books Strategic Management and Business Policy-1 1 th Edition (and the International version of this book) and Cases in Strategic Management and Business Policy-11th edition by the copyright holder, Steven Cox Any other publication of the case (translation, any form of... and Rebecca J Morris and Society for Case Research Reprint permission is solely granted to the publisher, Prentice Hall, for the books, Strategic Management and Business Policy-10th and 11th Editions (and the International version of this book) and Cases in Strategic Management and Business Policy-10th and llth Editions by the copyright holders The copyright holders, are solely responsible for case content... had assured that a contract with the Japanese would soon be signed Jim knew that with the presentation date rapidly approaching, it was time to make a decision Section C International Issues in Strategic Management CASE 4 GlaxoSmithKline's Retaliation Against Cross-Border Sales of Prescription Drugs Sara Smith Shull and Rebecca J Morris WAR WAS IMMINENT WITH IRAQ, THE RELENTLESS BEAR MARKET WAS ENTERING... Chairman, McDonnell Douglas Corporation Boeing Board Committees: Boeing Board Committees: Boeing director term expires in 2007 U S Foreign Service, 1957-89, including service as Ambassador to German Democratic republic and Finland, Ambassador for Oceans and Fisheries Affairs Director of Emerson Electric Company, 3M Company, Sara Lee Corporation, Manpower Inc and the New Perspective Fund 10.John M Shalikashvilli,... Research have granted an additional written reprint permission This case was published in The Business Case Journal, Volume II, Issue 2; Winter 2003/2004, pp 32-55 4-1 SECTION C International Issues in Strategic Management pharmacies.' This challenged pharmacies to provide adequate prescription product for their Canadian customers while shipping product to American customers south of the border However, GSK... consumers and healthcare professionals to call their Senators and Congressmen and Glaxo's U.S CEO, and tell them to give our patients back their affordable drugs.'" 4-4 SECTION C International Issues in Strategic Management Exhibit 2 Coalition Ad Critical of Glaxo Glaxo is taking away your right to affordable prescription drugs! The world's second largest drug maker, GlaxoSmkhKline, has stopped providing its... alienating a lot of Canadians, and it risks alienating Americans who are fed up with subsidizing the cost of drugs for the rest of the world The only explanation I can SECTION C International Issues in Strategic Management imagine for why GSK would be willing to risk that is because so many people are now buying their medicines from Canada that GSK is starting to see the effect on the bottom line." In 2003,... public or private prescription drug coverage GSK reported worldwide community investment and charitable donations of $104 million in 2001, 2.3% of net income 4-10 SECTION C International Issues in Strategic Management comprised 30% of the non-elderly population in America, they represented nearly 53% of the uninsured The Weak Economy Affects Healthcare Benefits Employers succeeded in modifying insurance... from other Exhibit 7 Percentage of Annual Income Spent on Drugs, by Age 3.5 3.0 0.5 0 All consumers Less than 25 yrs 25-34 35-44 Age 45-54 55-64 65 yrs & older SECTION C International Issues in Strategic Management Exhibit 8 Sources of Prescription Drug Coverage for Medicare Beneficiaries Source of Coverage Employer sponsored Medicare managed care Medicaid Medigap (privately purchased policies) Other... a tidy profit by selling prescription products to Americans The spread between acquisition cost from pharmaceutical companies and selling price to Americans was SECTION C International Issues in Strategic Management enhanced by the attractive exchange rate between American and Canadian dollars at the time This was true despite the fact that Americans were often purchasing products for as much as 80%