Part I Introduction and Overview

1 What Is Strategy and Why Is It Important? 2

Part II Core Concepts and Analytical Tools

2 Analyzing a Company's External Environment 38

3 Analyzing a Company's Resources and Competitive Position 82

Part III Crafting the Strategy

4 Crafting a Strategy: The Quest for Competitive Advantage 112

5 Competing in Foreign Markets 158

6 Diversification: Strategies for Managing a Group of Businesses 190

7 Strategy, Ethics, and Social Responsibility 238

Part IV Executing the Strategy

8 Executing the Strategy: Building a Capable Organization and Instilling a Culture 272

9 Managing Internal Operations in Ways That Promote Good Strategy Execution 316

Part V Cases in Crafting and Executing Strategy

Section A: Crafting Strategy in Single-Business Companies

1 Whole Foods Market in 2005: Mission , Core Values, and Strategy C-1

Arthur A. Thompson, The University of Alabama

2 Starbucks in 2004: Driving for Global Dominance C-27

Arthur A. Thompson, The University of Alabama

Amit J. Shah, Frostburg State University

Thomas F. Hawk, Frostburg State University

3 Netflix in 2004: What Strategic Moves to Make Next? C-64

Braxton Maddox, The University of Alabama

4 From Kazaa to Skype C-79

N. Rajshekar, ICFAI Business School

Kalyani Vemuri, ICFAI Business School

5 Competition in the Digital Music Industry in 2005 C-88

Lou Marino, The University of Alabama

Katy Beth Jackson, The University of Alabama

6 Competition in the Bottled Water Industry in 2004 C-110

John E. Gamble, University of South Alabama

7 Dell, Inc., in 2005: AWinning Strategy? C-130

Arthur A. Thompson, The University of Alabama

John E. Gamble, University of South Alabama

8 easyCar.com C-162

John J. Lawrence, University of Idaho

Luis Solis, Instituto de Empresa

9 KFC and the Global Fast-Food Industry in 2003–2004 C-173

Jeffrey A. Krug, Appalachian State University

10 Krispy Kreme Doughnuts in 2005: Are the Glory Days Over? C-199

Arthur A. Thompson, The University of Alabama

Amit J. Shah, Frostburg State University

11 Atkins Nutritionals: Market-Driven Business Model C-226

Hansa Iyengar, ICFAI Business School

N. Rajshekar, ICFAI Business School

12 Kodak at a Crossroads: The Transition from Film-Based to Digital Photography C-236

Boris Morozov, University of Nebraska at Omaha

Rebecca J. Morris, University of Nebraska at Omaha

13 Adam Aircraft C-257

Carl Hedberg, Babson College

John Hamilton, Babson College

William Bygrave, Babson College

14 Creating Customer Value at Rocky Mountain Fiberboard C-276

John J. Lawrence, University of Idaho

Doug Haines, University of Idaho

Michele O'Neill, University of Idaho

15 Electronic Arts and the Global Video Game Industry C-296

Arthur A. Thompson, The University of Alabama

16 eBay: In a League by Itself C-322

Louis Marino, The University of Alabama

Patrick Kreiser, The University of Alabama

17 Google's Strategy: The Quest for a Technology-Based Competitive Advantage C-353

John E. Gamble, University of South Alabama

18 Vincor and the New World of Wine C-372

Paul W. Beamish, The University of Western Ontario

19 Coca-Cola's Marketing Challenges in Brazil : The Tubaínas War C-388

David Gertner, Pace University

Rosane Gertner, Pace University

Dennis Guthery, Thunderbird—The Garvin School of International Management

20 Harley-Davidson in 2004 C-406

John E. Gamble, University of South Alabama

21 Globalizing Volkswagen: Creating Excellence on All Fronts C-429

Z. Jan Kubes, International Institute for Management Development

George Rädler, International Institute for Management Development

Section B: Crafting Strategy in Diversified Companies

22 adidas-Salomon C-459

John E. Gamble, University of South Alabama

23 News Corp in 2004: The DirecTV Acquisition and Beyond C-480

Ravi S. Madapati, ICFAI Knowledge Center

Section C: Cases in Executing Strategy

24 Robin Hood C-493

Joseph Lampel, New York University

25 Dilemma at Devil's Den C-495

Allen Cohen, Babson College

Kim Johnson, Babson College

26 Wal-Mart Stores, Inc.: A New Set of Challenges C-498

Arthur A. Thompson, The University of Alabama

27 Michelin China C-529

Katherine Xin, China Europe International Business School

Vladimir Pucik, International Institute for Management Development

Liu Shengjun, China Europe International Business School

Inna Francis, International Institute for Management Development

28 Singapore Airlines 2004: Managing Organizational Change in a Turbulent Environment C-540

Wee Beng Geok, Nanyang Business School

Shirley Koh, Nanyang Business School

29 Best Buy: Staying at the Top C-555

Balaji Chakravarthy, International Institute for Management Development

Henri Bourgeois, International Institute for Management Development

30 Deloitte & Touche: Integrating Arthur Andersen C-573

Ken Mark, The University of Western Ontario

Gerard Seijts, The University of Western Ontario

Section D: Strategy, Ethics, and Social Responsibility

31 Smithfield Foods'Vertical Integration Strategy: Harmful to the Environment? C-583

LaRue T. Hosmer, The University of Michigan

32 Merck and the Recall of Vioxx C-597

Arthur A. Thompson, The University of Alabama