PART 1 Concepts and Techniques for Crafting

and Executing Strategy Section A: Introduction and Overview

1 What Is Strategy and Why Is It Important? 2

2 Charting a Company’s Direction 20 Section B: Core Concepts and Analytical Tools

3 Evaluating a Company’s External Environment 50

4 Evaluating a Company’s Resources, Capabilities, and Competitiveness 90

Section C: Crafting a Strategy

5 The Five Generic Competitive Strategies 126

6 Strengthening a Company’s

Competitive Position 156 7 Strategies for Competing in International

Markets 186 8 Corporate Strategy 222

9 Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

266 Section D: Executing the Strategy

10 Building an Organization Capable of Good Strategy Execution 296

11 Managing Internal Operations 328 12 Corporate Culture and Leadership 352

PART 2 Cases in Crafting and Executing

Strategy Section A: Crafting Strategy in Single-Business

Companies

1 Airbnb in 2020 C2

2 Competition in the Craft Beer Industry in 2020 C7

3 Costco Wholesale in 2020: Mission, Business Model, and Strategy C18

4 Ford Motor Company: Will the Company’s Strategic Moves Restore its Competitiveness and Financial Performance? C43

5 Macy’s, Inc.: Will Its Strategy Allow It to Survive in the Changing Retail Sector?

C51 6 TOMS Shoes: Expanding Its Successful

One For One Business Model C59

7 lululemon athletica’s Strategy in 2020: Is the Recent Growth in Retail Stores, Revenues, and Profitability Sustainable?

C68

8 Under Armour’s Strategy in 2020: Can It Revive Sales and Profitability in Its Core North American Market? C86

9 Spotify in 2020: Can the Company Remain Competitive? C112

10 Beyond Meat, Inc. C124

11 Netflix’s 2020 Strategy for Battling Rivals in the Global Market for Streamed Video Subscribers C140

12 Twitter Inc. in 2020 C161

13 Yeti in 2020: Can Brand Name and Innovation Keep it Ahead of the Competition? C173

14 GoPro in 2020: Have its Turnaround Strategies Failed? C184

15 Publix Super Markets: Its Strategy in the U.S. Supermarket and Grocery Store Industry C198

16 Tesla’s Strategy in 2020: Can It Deliver Sustained Profitability? C212

17 Unilever’s Purpose-led Brand Strategy: Can Alan Jope Balance Purpose and Profits? C238

18 Domino’s Pizza: Business Continuity Strategy during the Covid-19 Pandemic

C249 19 Burbank Housing: Building from the Inside

Out C260 20 Boeing 737 MAX: What Response Strategy

is Needed to Ensure Passenger Safety and Restore the Company’s Reputation? C273

21 The Walt Disney Company: Its Diversification Strategy in 2020 C279

22 Robin Hood C293

Section B: Crafting Strategy in Diversified Companies

23 Southwest Airlines in 2020: Culture, Values, and Operating Practices C295

24 Uber Technologies in 2020: Is the Gig Economy Labor Force Working for Uber?

C315 Section C: Implementing and Executing Strategy

25 Starbucks in 2020: Is the Company on Track to Achieve Attractive Growth and Operational Excellence? C325

page xxxiv 26 Nucor Corporation in 2020:

Pursuing Efforts to Grow Sales and Market Share Despite Tough Market Conditions

C354

27 Eliminating Modern Slavery from Supply Chains: Can Nestlé Lead the Way? C389

Guide to Case Analysis CA-1

INDEXES Company I-1 Name I-9 Subject I-15

page xxxv

Contents

PART 1 Concepts and Techniques for Crafting

and Executing Strategy 1 Section A: Introduction and Overview

1 What Is Strategy and Why Is It Important? 2 WHAT DO WE MEAN BY STRATEGY? 4

Strategy Is about Competing Differently 4 Strategy and the Quest for Competitive Advantage 5 Why a Company’s Strategy Evolves over Time 8 A Company’s Strategy Is Partly Proactive and Partly Reactive 9 Strategy and Ethics: Passing the Test of Moral Scrutiny 9

A COMPANY’S STRATEGY AND ITS BUSINESS MODEL 11

WHAT MAKES A STRATEGY A WINNER? 12 WHY CRAFTING AND EXECUTING STRATEGY ARE