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CLA Comprehensive Learning Assessment. The book is attached here.  Book: Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2019). Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Cengage.  ISBN 978-0-357-03383-8  ● Reading:  o Chapter 7: Merger and Acquisitions Strategies Please read Case 11(C-147) part 4, case studies “Pacific Drilling: The Preferred Offshore Driller” and write a paper with a minimum of 5 APA formatted pages.  Please provide at least six (6) peer-reviewed resources in support of your arguments.  After your learnt about the case study of “Pacific Drilling: The Preferred Offshore Driller,” provide written CLA 1 by answering the followings: ● Write a summary of the case as introduction of your paper ● Why offshore drilling? ● Offshore drilling typically used three types, what are the three types of offshore drilling? ● What was the reason for the fall of the company's stock in 2014? Was the fall of the company's stock related to the movement of Global Oil prices? ● Was collaboration with Chevron a wise move for the company? ● What were the challenges: ○ Competition in the market including the supply of shale oil,  ○ Technological challenges, and  ○ Dealing with fluctuations in the international oil prices  Discussion Question  Please read a mini case on page 302, chapter 9 and provide the answers to the following questions: ● What are some of the major complexities encountered in developing cooperative strategies such as strategic alliances and joint ventures?  ● What role does competition from rivals play in the eventual success of cooperative strategies? Please explain. ● What costs are incurred in developing strategic alliances? How can these costs be managed?  ● Should cost minimization or opportunity maximization be the primary goal of a cooperative strategy? Can both be achieved simultaneously? Why or why not? 13e STRATEGIC MANAGEMENT Competitiveness & Globalization CO CEPTS & CASES ---- .... ,, ..... ...--.-.. STRATEGIC MANAGEMENT Competitiveness & Globalization Concepts and Cases 13e Michael A. Hitt Texas A&M University and Texas Christian University R. Duane Ireland Texas A&M University Robert E. Hoskisson Rice University �� # CENGAGE ·- Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated. in whole or in part. Due to clcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www cengage com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version. Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated. in whole or in part. Due to clcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. �- � CENGAGE ·- Strategic Management: Competitiveness & Globalization: Concepts and Cases, 13th Edition Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson Senior Vice President, Higher Ed Product, Content, and Market Development: Erin Joyner Product Director: Bryan Gambrel Senior Product Manager: Michael Giffen Content Manager: Amanda White Product Assistant: Nick Perez Marketing Manager: Audrey Wyrick Marketing Coordinator: Rachel Treinen Production Service: MPS Limited Senior Art Director: Bethany Bourgeois Text Designer: Tippy McIntosh Cover Designer: Bethany Bourgeois Cover Image: iStock.com/DNY59 Strategic Focus:© RomanOkopny/Getty Images Watercolor Opener:© BerSonnE/Getty Images Intellectual Property Analyst: Diane Garrity Intellectual Property Project Manager: Betsy Hathaway Printed in the United States of America Print Number: 01 Print Year: 2019 © 2020, 2017, 2015 (engage Learning, Inc. Unless otherwise noted, all content is© Cengage. ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S. copyright law, without the prior written permission of the copyright owner. For product information and technology assistance, contact us at (engage Customer & Sales Support, 1-800-354-9706 or support.cengage.com. For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions. Library of Congress Control Number: 2018959064 Soft Cover Edition ISBN: 978-0-357-03383-8 Loose-Leaf Edition ISBN: 978-1-337-91682-0 Cengage 20 Channel Center Street Boston, MA 02210 USA (engage is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com. Cengage products are represented in Canada by Nelson Education, Ltd. To learn more about (engage platforms and services, register or access your on line learning solution, or purchase materials for your course, visit www.cengage.com. Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated. in whole or in part. Due to clcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. To Frankie: You are my partner in life. I love you and look forward to our future together. -MICHAEL To Mary Ann: We have reached that place we want to go and we will now walk in the sun. I love you. -DUANE To Kathy: You are the best and my love for you is eternal. Thanks for all the sup­ port and love you've given me and our children throughout our life together. -ROBERT Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated, in whole or in part. Due to elcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcnr at any time if subsequent rights res1rictions require it. • Brief Contents iv Preface, xiv About the Authors, xx Part 1: Strategic Management Inputs 1. Strategic Management and Strategic Competitiveness, 2 2. The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis, 36 3. The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages, 74 Part 2: Strategic Actions: Strategy Formulation 4. Business-Level Strategy, 104 5. Competitive Rivalry and Competitive Dynamics, 142 6. Corporate-Level Strategy, 176 7. Merger and Acquisition Strategies, 208 8. International Strategy, 238 9. Cooperative Strategy, 278 Part 3: Strategic Actions: Strategy Implementation 10. Corporate Governance, 310 11. Organizational Structure and Controls, 344 12. Strategic Leadership, 382 13. Strategic Entrepreneurship, 416 Part 4: Case Studies Name Index, 1-1 Company Index, 1-21 Subject Index, 1-24 2 104 310 C-1 Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated. in whole or in part. Due to clcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. • Contents , Preface xiv About the Authors xx Part 1: Strategic Management Inputs 2 1: Strategic Management and Strategic Competitiveness 2 Opening Case: The Honest Co.: Can It Become an Iconic Global Brand? 3 Strategic Focus Competitive Advantage as a Source of Strategic Competitiveness 5 1-1 The Competitive Landscape 8 1-la The Global Economy 9 1-1 b Technology and Technological Changes 11 1-2 The 1/0 Model of Above-Average Returns 14 1-3 The Resource-Based Model of Above-Average Returns 16 1-4 Vision and Mission 18 1-4a Vision 18 1-4b Mission 18 1-5 Stakeholders 19 1-Sa Classifications of Stakeholders 20 1-6 Strategic Leaders 23 1-6a The Work of Effective Strategic Leaders 23 Strategic Focus Strategic Leaders' Decisions as a Path to Firms' Efforts to Deal Successfully with Their Challenges 24 1-7 The Strategic Management Process 26 Summary 27 • Key Terms 28 • Review Questions 28 • Mini-Case 28 • Notes 30 2: The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis 36 Opening Case: Cracks in the Golden Arches and Mcdonald's New Glue 37 2-1 The General, Industry, and Competitor Environments 39 2-2 External Environmental Analysis 41 2-2a Scanning 41 2-2b Monitoring 42 2-2c Forecasting 42 2-2d Assessing 43 2-3 Segments of the General Environment 43 2-3a The Demographic Segment 43 2-3b The Economic Segment 46 2-3c The Political/Legal Segment 47 2-3d The Sociocultural Segment 48 Copyright 2020 Cengagc Learning. 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V vi 2-3e The Technological Segment 49 2-3f The Global Segment 50 2-3g The Sustainable Physical Environment Segment 51 Strategic Focus Target (Tar-zhey) Is Trying to Navigate in a New and Rapidly Changing Competitive Landscape 52 2-4 Industry Environment Analysis 53 2-4a Threat of New Entrants 54 2-4b Bargaining Power of Suppliers 57 2-4c Bargaining Power of Buyers 58 2-4d Threat of Substitute Products 58 2-4e Intensity of Rivalry among Competitors 59 2-5 Interpreting Industry Analyses 61 2-6 Strategic Groups 61 Strategic Focus Toys 'R' Us Exemplifies the Apocalypse in the Retail Industries 62 2-7 Competitor Analysis 63 2-8 Ethical Considerations 65 Summary 66 • Key Terms 66 • Review Questions 66 • Mini-Case 67 • Notes 68 3: The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages 74 Opening Case: Large Pharmaceutical Companies, Big Data Analytics, Artificial Intelligence and Core Competencies: A Brave New World 75 3-1 Analyzing the Internal Organization 77 3-1 a The Context of Internal Analysis 77 3-1 b Creating Value 78 3-lc The Challenge of Analyzing the Internal Organization 79 3-2 Resources, Capabilities, and Core Competencies 81 3-2a Resources 81 Strategic Focus Tangible and Intangible Resources as the Base for Core Competencies 83 3-2b Capabilities 85 3-2c Core Competencies 86 3-3 Building Core Competencies 87 3-3a The Four Criteria of Sustainable Competitive Advantage 87 3-3b Value Chain Analysis 90 3-4 Outsourcing 93 3-5 Competencies, Strengths, Weaknesses, and Strategic Decisions 94 Contents Strategic Focus The Extreme Specialization of Outsourcing: Who Is Doing It and Who Is Not? 95 Summary 96 • Key Terms 96 • Review Questions 96 • Mini-Case 97 • Notes 98 Part 2: Strategic Actions: Strategy Formulation 104 4: Business-Level Strategy 104 Opening Case: Digital: An Increasingly Important Aspect of Strategy Choice and Strategy Implementation 105 4-1 Customers: Their Relationship with Business-Level Strategies 107 4-1 a Effectively Managing Relationships with Customers 108 Copyright 2020 Cengagc Learning. 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Contents 4-1 b Reach, Richness, and Affiliation 108 4-1 c Who: Determining the Customers to Serve 109 4-1 d What: Determining Which Customer Needs to Satisfy 110 4-1 e How: Determining Core Competencies Necessary to Satisfy Customer Needs 111 4-2 The Purpose of a Business-Level Strategy 112 4-3 Business Models and Their Relationship with Business­ Level Strategies 113 4-4 Types of Business-Level Strategies 114 4-4a Cost Leadership Strategy 116 4-4b Differentiation Strategy 120 4-4c Focus Strategies 124 Strategic Focus The Differentiation Strategy-Can Macy's Again Find Ways to Achieve Success by Implementing This Strategy? 7 25 Strategic Focus What Type of Hamburger Would You Like to Buy and Eat Today? 728 4-4d Integrated Cost Leadership/Differentiation Strategy 130 Summary 133 • Key Terms 134 • Review Questions 134 • Mini-Case 135 • Notes 136 5: Competitive Rivalry and Competitive Dynamics 142 Opening Case: The Grocery Industry: Welcome to a New Competitive Landscape 146 Strategic Focus The Emergence of Competitive Rivalry among Battery Manufacturers: Who Will Establish the Most Attractive Market Position? 746 5-1 A Model of Competitive Rivalry 148 5-2 Competitor Analysis 149 5-2a Market Commonality 150 5-2b Resource Similarity 151 5-3 Drivers of Competitive Behavior 152 5-4 Competitive Rivalry 154 5-4a Strategic and Tactical Actions 154 5-5 Likelihood of Attack 155 5-6 5-5a First-Mover Benefits 155 5-5b Organizational Size 157 5-5c Quality 158 Likelihood of Response 159 5-6a Type of Competitive Action 5-6b Actor's Reputation 160 5-6c Market Dependence 160 5-7 Competitive Dynamics 161 5-7a Slow-Cycle Markets 161 159 Strategic Focus Swiss Watchmakers: The Eroding of a Long-Lasting Competitive Advantage While Competing in a Slow-Cycle Market? 762 5-7b Fast-Cycle Markets 164 5-7c Standard-Cycle Markets 166 Summary 167 • Key Terms 168 • Review Questions 168 • Mini-Case 169 • Notes 170 Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated. in whole or in part. Due to clcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. vii viii 6: Corporate-Level Strategy 176 Opening Case: Amazon's Successful Growth through Its Corporate Diversification Strategy 177 6-1 Levels of Diversification 179 6-1 a Low Levels of Diversification 180 6-1 b Moderate and High Levels of Diversification 181 Strategic Focus Caterpillar Uses the Related Constrained Diversification Strategy 182 6-2 Reasons for Diversification 183 6-3 Value-Creating Diversification: Related Constrained and Related Linked Diversification 185 6-3a Operational Relatedness: Sharing Activities 185 6-3b Corporate Relatedness: Transferring of Core Competencies 186 6-3c Market Power 187 6-3d Simultaneous Operational Relatedness and Corporate Relatedness 189 6-4 Unrelated Diversification 190 6-4a Efficient Internal Capital Market Allocation 190 Strategic Focus Berkshire Hathaway and SoftBank Use Similar Unrelated Strategies 197 6-4b Restructuring of Assets 192 6-5 Value-Neutral Diversification: Incentives and Resources 193 6-5a Incentives to Diversify 193 6-5b Resources and Diversification 196 6-6 Value-Reducing Diversification: Managerial Motives to Diversify 198 Contents Summary 200 • Key Terms 200 • Review Questions 200 • Mini-Case 201 • Notes 202 7: Merger and Acquisition Strategies 208 Opening Case: Cisco Systems: Strategic Acquisitions to Adapt to a Changing Market 209 7-1 The Popularity of Merger and Acquisition Strategies 210 7-1 a Mergers, Acquisitions, and Takeovers: What Are the Differences? 211 7-2 Reasons for Acquisitions 212 7-2a Increased Market Power 212 Strategic Focus Broadcom's Failed Hostile Takeover Attempt of Qualcomm 213 7-2b Overcoming Entry Barriers 215 7-2c Cost of New Product Development and Increased Speed to Market 216 Strategic Focus Cross-Border Mega Mergers in the Agricultural Chemical and Technology Sectors 217 7-2d Lower Risk Compared to Developing New Products 218 7-2e Increased Diversification 218 7-2f Reshaping the Firm's Competitive Scope 219 7-29 Learning and Developing New Capabilities 219 7-3 Problems in Achieving Acquisition Success 219 7-3a Integration Difficulties 220 7-3b Inadequate Evaluation ofTarget 221 7-3c Large or Extraordinary Debt 222 7-3d Inability to Achieve Synergy 222 7-3e Too Much Diversification 223 7-3f Managers Overly Focused on Acquisitions 224 7-39 Too Large 224 Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated. in whole or in part. Due to clcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. Contents 7-4 Effective Acquisitions 225 7-5 Restructuring 227 7-5a Downsizing 227 7-5b Downscoping 227 7-5c Leveraged Buyouts 228 7-5d Restructuring Outcomes 228 Summary 230 • Key Terms 230 • Review Questions 231 • Mini-Case 231 • Notes 232 8: International Strategy 238 Opening Case: Netflix Achieves Substantial Growth through International Expansion, But Such Growth Also Is Attracting Significant Competition 239 8-1 Identifying International Opportunities 241 8-1 a Incentives to Use International Strategy 241 8-1 b Three Basic Benefits of International Strategy 243 8-2 International Strategies 245 8-2a International Business-Level Strategy 245 8-2b International Corporate-Level Strategy 248 Strategic Focus Ikea's Global Strategy in the Age of Digitalization and Urbanization 250 8-3 Environmental Trends 252 8-3a Liability of Foreignness 252 8-3b Regionalization 253 8-4 Choice of International Entry Mode 254 8-4a Exporting 255 8-4b Licensing 255 8-4c Strategic Alliances 256 8-4d Acquisitions 257 8-4e New Wholly Owned Subsidiary 258 8-4f Dynamics of Mode of Entry 259 8-5 Risks in an International Environment 260 8-5a Political Risks 260 8-5b Economic Risks 261 Strategic Focus The Global Delivery Services Industry: Economic Disruption of Tariffs and Trade Wars 262 8-6 Strategic Competitiveness Outcomes 263 8-6a International Diversification and Returns 264 8-6b Enhanced Innovation 264 8-7 The Challenge of International Strategies 265 8-7a Complexity of Managing International Strategies 265 8-7b Limits to International Expansion 265 Summary 266 • Key Terms 267 • Review Questions 267 • Mini-Case 268 • Notes 270 9: Cooperative Strategy 278 Opening Case: Google's Diversified Alliance Portfolio: A Response to Competitors and an Attempt to Be a Dominant Force 279 9-1 Strategic Alliances as a Primary Type of Cooperative Strategy 281 9-1 a Types of Major Strategic Alliances 281 9-1 b Reasons Firms Develop Strategic Alliances 283 Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated. in whole or in part. Due to clcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. ix X 9-2 Business-Level Cooperative Strategy 286 9-2a Complementary Strategic Alliances 286 9-2b Competition Response Strategy 288 9-2c Uncertainty-Reducing Strategy 289 Strategic Focus Tesla Losing Critical Strategic Alliances and Experiencing Challenges Creating Efficient Operations 290 9-2d Competition-Reducing Strategy 291 9-2e Assessing Business-Level Cooperative Strategies 292 9-3 Corporate-Level Cooperative Strategy 292 9-3a Diversifying Strategic Alliance 293 9-3b Synergistic Strategic Alliance 293 9-3c Franchising 293 9-3d Assessing Corporate-Level Cooperative Strategies 294 9-4 International Cooperative Strategy 294 Contents Strategic Focus The Cross-Border Alliance between Ford and Mahindra: Developing the Automobile of the Future 296 9-5 Network Cooperative Strategy 297 9-5a Alliance Network Types 297 9-6 Competitive Risks with Cooperative Strategies 298 9-7 Managing Cooperative Strategies 300 Summary 301 • Key Terms 302 • Review Questions 302 • Mini-Case 302 • Notes 304 Part 3: Strategic Actions: Strategy Implementation 310 10: Corporate Governance 310 Opening Case: Shareholder Activists and Corporate Governance 311 10-1 Separation of Ownership and Managerial Control 314 10-1 a Agency Relationships 315 10-1 b Product Diversification as an Example of an Agency Problem 316 Strategic Focus General Electric's Complex Diversification Strategy Makes Evaluation Difficult for Board Directors 318 10-1 c Agency Costs and Governance Mechanisms 319 10-2 Ownership Concentration 320 10-2a The Increasing Influence of Institutional Owners 321 10-3 Board of Directors 322 10-3a Enhancing the Effectiveness of the Board of Directors 324 10-3b Executive Compensation 325 10-3c The Effectiveness of Executive Compensation 325 10-4 Market for Corporate Control 326 Strategic Focus Has More Governance Scrutiny Made Large CEO Compensation Packages More Reasonable? 327 10-4a Managerial Defense Tactics 329 10-5 International Corporate Governance 330 Copyright 2020 Cengagc Learning. 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Contents 10-Sa Corporate Governance in Germany and Japan 331 10-Sb Corporate Governance in China 332 10-6 Governance Mechanisms and Ethical Behavior 333 Summary 334 • Key Terms 335 • Review Questions 335 • Mini-Case 335 • Notes 337 11: Organizational Structure and Controls 344 Opening Case: Changing McDonald's Organizational Structure and Controls: A Path to Improved Performance 345 11-1 Organizational Structure and Controls 347 11-1 a Organizational Structure 347 11-1 b Organizational Controls 348 11-2 Relationships between Strategy and Structure 349 11-3 Evolutionary Patterns of Strategy and Organizational Structure 350 11-3a Simple Structure 350 11-3b Functional Structure 351 11-3c Multidivisional Structure 352 11-3d Matches between Business-Level Strategies and the Functional Structure 353 11-3e Matches between Corporate-Level Strategies and the Multidivisional Structure 356 Strategic Focus General Electric's Decline, New Strategy, and Reorganization 362 11-3f Matches between International Strategies and Worldwide Structure 363 11-39 Matches between Cooperative Strategies and Network Structures 367 11-4 Implementing Business-Level Cooperative Strategies 369 Strategic Focus Global Airline Alliances, Airline Joint Ventures, and Network Difficulties 370 11-5 Implementing Corporate-Level Cooperative Strategies 371 11-6 Implementing International Cooperative Strategies 371 Summary 372 • Key Terms 373 • Review Questions 373 • Mini-Case 374 • Notes 376 12: Strategic Leadership 382 Opening Case: Meg Whitman: A Pioneering Strategic Leader 383 12-1 Strategic Leadership and Style 386 Strategic Focus Cybersecurity Risk: A Significant and Expanding Challenge for Strategic Leaders and Their Firms 387 12-2 The Role ofTop-Level Managers 388 12-2a Top ManagementTeams 390 12-3 Managerial Succession 393 12-4 Key Strategic Leadership Actions 396 12-4a Determining Strategic Direction 396 12-4b Effectively Managing the Firm's Resource Portfolio 398 12-4c Sustaining an Effective Organizational Culture 400 Strategic Focus Organizational Culture: Is It Really That Important? 401 12-4d Emphasizing Ethical Practices 403 12-4e Establishing Balanced Organizational Controls 404 Summary 407 • KeyTerms 408 • Review Questions 408 • Mini-Case 408 • Notes 410 Copyright 2020 Cengagc Learning. 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Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. xi xii Contents 13: Strategic Entrepreneurship 416 Opening Case: Today It Is Gas and Diesel: Tomorrow It Is Likely to Be Electric Vehicles, Plug-in Hybrids, and Driverless Cars and Trucks 417 13-1 Entrepreneurship and Entrepreneurial Opportunities 419 13-2 Innovation 420 13-3 Entrepreneurs 421 13-4 International Entrepreneurship 422 13-5 Internal Innovation 423 13-Sa Incremental and Novel Innovation 424 13-Sb Autonomous Strategic Behavior 426 Strategic Focus Seeking Innovation through Autonomous Strategic Behavior at the Country Level 427 13-Sc Induced Strategic Behavior 428 13-6 Implementing Internal Innovations 428 13-6a Cross-Functional Product Development Teams 429 13-6b Facilitating Integration and Innovation 430 13-6c Creating Value from Internal Innovation 430 13-7 Innovation through Cooperative Strategies 431 13-8 Innovation through Acquisitions 432 Strategic Focus Will These Acquisitions Lead to Innovation Success or to Strategic Failure? 433 13-9 Creating Value through Strategic Entrepreneurship 434 Summary 437 • Key Terms 438 • Review Questions 438 • Mini-Case 438 • Notes 440 Part 4: Case Studies C-1 Preparing an Effective Case Analysis C-4 Case 1: Alphabet Inc.: Reorganizing Google C-13 Case 2: Baidu's Business Model and Its Evolution C-29 Case 3: Future of the Autonomous Automobile: A Strategy for BMW C-44 Case 4: An Examination of the Long-term Healthcare Industry in the USA C-58 Case 5: CrossFit at the Crossroads C-63 Case 6: New Business Models for Heise Medien: Heading for the Digital Transformation C-80 Case 7: Illinois Tool Works: Retooling for Continued Growth and Profitability C-95 Case 8: Ultra Rope: Crafting a Go-to-Market Strategy for Kane's Innovative 'Ultra Rope' Hoisting Cable C-104 Case 9: MatchMove: Business Model Evolution C-113 Case 10: The Movie Exhibition Industry: 2018 and Beyond C-124 Case 11: Pacific Drilling: The Preferred Offshore Driller C-147 Case 12: Pfizer C-163 Case 13: Publix Supermarkets, Inc. C-175 Case 14: Driving Innovation and Growth at Starbucks: From Howard Schultz to Kevin Johnson C-190 Case 15: Sturm, Ruger & Co. and the U.S. Firearms Industry C-198 Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated. in whole or in part. Due to clcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. Contents Case 16: The trivago Way-Growing Without Growing Up? C-211 Case 17: The Volkswagen Emissions Scandal C-228 Case 18: The Wells Fargo Banking Scandal C-238 Case 19: ZF Friedrichshafen's Acquisition ofTRW Automotive: Making the Deal C-248 Case 20: The Rise and Fall of ZO Rooms C-259 Name Index 1-1 Company Index 1-21 Subject Index 1-24 Copyright 2020 Cengagc Learning. All Rights Reserved. May not be copied. scanned, or duplicated. in whole or in part. Due to clcc1ronic rights. some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed thar any suppressed content docs not materially affect the overall learning experience. Ccngage Leaming reserves 1hc right to remove additional contcm at any time if subsequent rights rcs1rictions require it. xiii • Preface ' • xiv , Our goal in writing each edition of this book is to present a new, up-to-date standard for explaining the strategic management process. To reach this goal with the 13th edition of our market-leading text, we again present you with an intellectually rich yet thoroughly practical analysis of strategic management. With each new edition, we work hard to achieve the goal of maintaining our stan­ dard of presenting strategic management knowledge in a readable style. To prepare for each new edition, we carefully study the most recent academic research to ensure that the content about strategic management we present to you is up to date and accu­ rate. In addition, we continuously read articles appearing in many different business publications (e.g., Wall Street Journal, Bloomberg Businessweek, Fortune, Financial Times, Fast Company, and Forbes, to name a few). We also study postings through social media (such as biogs) given their increasing use as channels of information distribution. By studying a wide array of sources, we are able to identify valuable …