Question: Why is it important for a firm

> The mini-case makes it clear that FedEx and UPS have a number of similarities – resources, markets, and the competitive dimensions they emphasize to implement their strategies. However, as resources are not identical, both companies have sought to differ

> What is an agency relationship? What is managerial opportunism? What assumptions do owners of corporations make about managers as agents?

> What is meant by the statement that ownership is separated from managerial control in the corporation? Why does this separation exist?

> What is corporate governance? What factors account for the considerable amount of attention corporate governance receives from several parties, including shareholder activists, business press writers, and academic scholars? Why is governance necessary to

> How can corporate governance foster ethical decisions and behaviors on the part of managers as agents?

> What risks are firms likely to experience as they use cooperative strategies?

> Why do firms use cross-border strategic alliances?

> What are the three corporate-level cooperative strategies? How do firms use each of these strategies for the purpose of creating a competitive advantage?

> What are the four business-level cooperative strategies? What are the key differences among them?

> What is a strategic alliance? What are the three major types of strategic alliances firms form for the purpose of developing a competitive advantage?

> What is the definition of cooperative strategy, and why is this strategy important to firms competing in the twenty-first century competitive landscape?

> The mini-case describes how CEO succession at P&G has had a detrimental effect on firm performance. The successor, Bob McDonald, assumed the position in 2009 but lasted a little under four years. During his tenure, P&G failed to keep up with rivals’ sa

> What are the differences between the cost-minimization approach and the opportunity-maximization approach to managing cooperative strategies?

> What are the strategic competitiveness outcomes firms can reach through international strategies, and particularly through an international diversification strategy?

> What are political risks and what are economic risks? How should firms approach dealing with these risks?

> What five entry modes do firms consider as paths to use to enter international markets? What is the typical sequence in which firms use these entry modes?

> What are some global environmental trends affecting the choice of international strategies, particularly international corporate-level strategies?

> What are the three international corporate-level strategies? What are the advantages and disadvantages associated with these individual strategies?

> What four factors are determinants of national advantage and serve as a basis for international business-level strategies?

> What are the three basic benefits firms can achieve by successfully using an international strategy?

> What incentives influence firms to use international strategies?

> What are two important issues that can potentially affect a firm’s ability to successfully use international strategies?

> What does it mean to be “stuck in the middle” between two strategies (i.e., between low cost and differentiation strategies)?

> What factors affect the likelihood a firm will initiate a competitive response to a competitor’s action(s)?

> What factors affect the likelihood a firm will take a competitive action?

> How do awareness, motivation, and ability affect the firm’s competitive behavior?

> What is market commonality? What is resource similarity? What does it mean to say that these concepts are the building blocks for a competitor analysis?

> Who are competitors? How is competitive rivalry, competitive behavior, and competitive dynamics defined in the chapter?

> What competitive dynamics can be expected among firms competing in slow-cycle markets? In fast-cycle markets? In standard-cycle markets?

> What was the result of change in strategy implemented?

> What strategy was the new CEO at JC Penney seeking to implement given the generic strategies found in Chapter 4?

> Why was this strategy a disaster for JC Penney?

> What are core rigidities? What does it mean to say that each core competence could become a core rigidity?

> Is it possible that some of the firms mentioned in this Mini-Case (e.g., Renault, Nissan, Mazda, Peugot-Citroen, Opel-Vauxhall) might form a network cooperative strategy? If so, what conditions might influence a decision by these firms to form this parti

> How do firms identify internal strengths and weaknesses? Why is it vital that managers have a clear understanding of their firm’s strengths and weaknesses?

> What is outsourcing? Why do firms outsource? Will outsourcing’s importance grow in the future? If so, why?

> What is value chain analysis? What does the firm gain by successfully using this tool?

> What four criteria must capabilities satisfy for them to become core competencies? Why is it important for firms to use these criteria to evaluate their capabilities’ value-creating potential?

> What are capabilities? How do firms create capabilities?

> What are the differences between tangible and intangible resources? Why is it important for decision makers to understand these differences? Are tangible resources more valuable for creating capabilities than are intangible resources, or is the reverse t

> What is value? Why is it critical for the firm to create value? How does it do so?

> Why is it important for a firm to study and understand its internal organization?

> What is the importance of collecting and interpreting data and information about competitors? What practices should a firm use to gather competitor intelligence and why?

> What is a strategic group? Of what value is knowledge of the firm’s strategic group in formulating that firm’s strategy?

> What are the risks associated with the corporate-level strategic alliance between Renault and Nissan? What have these firms done to mitigate these risks?

> How do the five forces of competition in an industry affect its profit potential? Explain.

> What are the seven segments of the general environment? Explain the differences among them

> What is the external environmental analysis process (four parts)? What does the firm want to learn when using this process?

> What are the differences between the general environment and the industry environment? Why are these differences important?

> What are the elements of the strategic management process? How are they interrelated?

> How would you describe the work of strategic leaders?

> What are stakeholders? How do the three primary stakeholder groups influence organizations?

> What are vision and mission? What is their value for the strategic management process?

> What does the resource-based model suggest a firm should do to earn above-average returns?

> What does it mean to say that the partners of an alliance have “complementary assets”? What complementary assets do Renault and Nissan share?

> According to the I/O model, what should a firm do to earn above-average returns?

> What are the characteristics of the current competitive landscape? What two factors are the primary drivers of this landscape?

> This case spotlights W. L. Gore & Associates, a company that is an outstanding example of corporate entrepreneurship in action. Founded in 1958, this firm was far ahead of its time in recognizing the intrinsic value of human capital. Using workforce know

> This case examines a Canadian fast food restaurant chain at a point when it is in the final stages of being acquired by a large investment firm. In the third quarter of 2014, Tim Hortons Inc. is poised for aggressive geographic expansion, is confronting

> This case thoroughly examines how Super Selectos, a local food retail chain from El Salvador, became successful in competing against Walmart, the largest food retailer in the world. After an overview of Central America region and the retail industry, the

> Starbucks Corporation is a model of extraordinary business success. Known for sourcing, roasting, and serving high quality coffee and for elevating and romanticizing the consumer’s experience, Starbucks’ rapid growth seemed unstoppable – at least until i

> This case highlights a pioneering airline company with humble roots, an enduring culture shaped by a maverick leader, and a record of success in an industry where most companies have failed to prosper in the decades since deregulation. Southwest Airlines

> Siemens is a leading global electrical engineering and electronics firm headquartered in Munich, Germany. Profiling a highly diversified company, this case addresses the issue of optimizing the business portfolio through a coherent corporate strategy. An

> The Safaricom case provides an excellent opportunity to apply strategic management concepts to a constantly growing and extremely competitive organization. Safaricom is the largest mobile service provider in Kenya. It offers not only means of mobile comm

> What is the relationship between the core competencies a firm possesses, the core competencies the firm feels it needs, and decisions to form cooperative strategies?

> To strengthen its diversified portfolio, Polaris Industries entered the motorcycle business in the 1990s. This case encapsulates the history and development of the Polaris Victory Motorcycle Division from its conception in 1993 up until 2014. It closely

> This case is an in-depth study of the motion picture exhibition industry which exposes the tenuous and uncertain outlook for movie theater owners. Changing value chain dynamics and operating variables that affect the profitability of exhibitors are discu

> This case focuses on the corporate governance aspect of Martha Stewart Living Omnimedia (MSO), a media empire founded by Martha Stewart. Stewart is a former model and devoted her career to domestic perfection and luxury. She is the brand icon of MSO; how

> This case is about a family-owned corporation from the perspective of its latest CEO, Charles Luck, IV. It provides an overview of the strategic management processes instituted under his direction, emphasizing the formulation and implementation of value

> The Knowledge is Power Program (KIPP) Houston Public School case provides an exciting opportunity to apply strategic management principles to an innovative, non-profit educational organization. At the time of the case, new regional superintendent Sehba A

> This case describes a new product success story, set in a competitive business climate. Keurig was one of the companies to commercialize an innovative technology that allowed people to brew one cup of coffee at a time. Keurig was established in 1992. The

> This case highlights Invitrogen, one of the largest catalog life science companies in the industry. In a highly competitive industry, the company has taken some risky steps in order to continue its growth. Invitrogen built its growth from aggressive acqu

> The IKEA case provides an excellent opportunity to apply strategic management concepts to a large privately-held company that is expanding into India. IKEA is a Netherlands-based Swedish company with a presence in 44 countries around the world, including

> This case illustrates the importance of environmental awareness, the long-term prospect of product development, and the resourceful use of an acquisition strategy to achieve organizational objectives. It opens with an overview and history on the Fisk bro

> This case identifies a unique strategy for the 5th largest breweries in the world, Carlsberg A/S, whose leaders have recognized that in order to survive in the business, it has to be either the first or second leader in any market it is operating in. The

> How can the resource-based view of the firm (see Chapters 1 and 3) help us understand why firms develop and use cooperative strategies such as strategic alliances and joint ventures?

> This case portrays the challenging events and circumstances confronting BP in Russia during 2011. It illustrates the difficulties of managing issues associated with cooperative strategies, especially complex cross-border alliances. The case opens with ba

> This case describes a unique opportunity for one of the largest financial brand names in the world, American Express, whose leaders have demonstrated a knack for identifying obscure market niches. The rapid success of Green Dot has drawn attention to Ame

> What is the restructuring strategy, and what are its common forms?

> What are the attributes associated with a successful acquisition strategy?

> What are the seven primary problems that affect a firm’s efforts to successfully use an acquisition strategy?

> What reasons account for firms’ decisions to use acquisition strategies as a means to achieving strategic competitiveness?

> Why are merger and acquisition strategies popular in many firms competing in the global economy?

> What are the short- and long-term outcomes associated with the different restructuring strategies?

> A common rationale for alliances is that firms seek out complementary resources from an alliance partner. The Mini-Case notes that a new rationale for alliances has emerged in the literature – that firms are often co-located in the same country,

> Sany Heavy Industry Company, Ltd. Is China’s largest producer of heavy equipment (and 5th largest globally). Sany’s businesses consist of cranes, road construction machinery, port machinery, and pump over machinery. Some technologies used in the producti

> Unilever is a European-based global consumer products company with a strong sustainable environment strategy. To improve efficiencies, Unilever has adopted a worldwide product structure. The company emphasizes the geographic areas using a transnational

> How does strategic entrepreneurship help firms create value?

> How does a firm acquire other companies to increase the number of innovations it produces and improve its capability to produce innovations?

> How do firms use cooperative strategies to innovate and to have access to innovative capabilities?

> How do firms develop innovations internally?

> What is international entrepreneurship? Why is it important?

> What is an entrepreneur, and what is an entrepreneurial mind-set?

> What are invention, innovation, and imitation? How are these concepts interrelated?

> Jamie Dimon, CEO of J.P. Morgan Chase survived the Great Recession quite well. However, in 2012, the company suffered losses of more than $6 billion due to excessive risk taking by traders in its London operations. Some of the loss was attributed to poo

> What is entrepreneurship, and what are entrepreneurial opportunities? Why are they important for all aspects of the strategic management process?

> What is strategic entrepreneurship? What is corporate entrepreneurship?

> As a strategic leader, what actions could you take to establish and emphasize ethical practices in your firm?

> What must strategic leaders do to develop and sustain an effective organizational culture?

> How do strategic leaders effectively manage their firm’s resource portfolio to exploit its core competencies and leverage the human capital and social capital to achieve a competitive advantage?)