Jay B.Barney, William S. Hesterly (2012)
PREFACE
Thefirst thing you will noticeas you look through this edition of our book is that it contin ues to be much shorter than most textbooks on strategic management. There is not the usual "later edition" increase in number of pages and bulk.We're strong proponents of the philosophy that,often, lessismore. Thegeneral tendency is fortextbooks to getlongerand longer as authors make sure that their books leave out nothing that is in other books. We take a different approach. Our guiding principle in deciding what to include is; "Does this concept help students analyze cases and realbusiness situations?" Formanyconcepts we considered, the answer is no. But,where the answer Isyes, the conceptis in the book.
VRIO Framework and Other Hallmark Features
We continue to have a pointof viewabout the field ofstrategic management, In planning for this book,we recalled our own educationalexperience and the textbooks that did and didn't workfor usthen. Those fewthatstoodout as thebestdid not merely cover allofthe different topics ina field ofstudy. They provided a framework thatwecould carry around in our heads, and they helped us to see what we werestudying as an integrated whole rather than a disjointed sequence of loosely related subjects. This text continues to be inte grated around the VRIOframework. As those of you familiar with the resource-based the ory of strategy recognize, the VRIO framework addresses the centralquestions aroimd gaining and sustaining competitive advantage. TheVRIO logic ofcompetitive advantage is applied in everychapter. It issimple enough to understandand teach yetbroadenoughto apply to a wide variety of cases and business settings. Our consistent use of the VRIO framework does not mean that any of the concepts fundamental to a strategy course are missing.Westillhave all of the core ideas and theories that are essential to a strategy course. Ideas such as the five forces framework, value chain analysis,generic strategies, and corporate strategy are all in the book.Because the VRIO framework provides a single integrative structure, we are able to address issues in this bookthat are largely ignored elsewhere including discussions ofvertical integration, out sourcing, real options logic, and mergers and acquisitions, to name a few.
We also have designed flexibility into the book. Eachchapter has four short sections that presentspecific issues in more depth. These sections allow instructors to adapt the book to the particularneeds oftheir students."Strategyin Depth" examines the intellectual foundations that are behind the way managers think about and practice strategy today. "Strategy in the Emerging Enterprise" presents examples of strategic challenges faced by new and emerging enterprises. "Ethics and Strategy" delves into some of the ethicaldilem mas that managers face as they confront strategic decisions. "Research Made Relevant" includesrecentresearch relatedto the topics in that chapter.
To us, the field of strategicmanagement is morethan just a textbook, morethan justa class. Itis a passion; a passion we havesharedforover30years. Andin themidstoftoday's financial challenges, itseems that understanding howfirms can gainand sustain competitive advantages if anything is even more important. For, while we emphasize the economic consequences for shareholders of enhancing a firm's performance, it is also important toremember thatusually mostofa firm's stakeholders including itsemployees and society at large benefit when a firm enhances its efficiency and gains a competitive advantage.
Supplements
At the Instructor ResourceCenter,at www.pearsonhighered.com/irc, instructors can access a variety ofprint, digital, andpresentation resources available withthistext in download able format. Registration issimple and gives youimmediate access to newtitles and new editions. As a registered faculty member, you can download resource files and receive immediate access to and instructions for installing course management content on your campus server. In case youeverneed assistance, our dedicated technical support team is ready to help with the media supplements that accompany this text. Visit http:/'247.pearsoned.custhelp.com for answers tofrequently asked questions andtoll-free
user support phone numbers.
Thefollowing supplementsare available for downloadto adopting instructors:
• Instructor's Manual
• Test Item File
• TestGen® Computerized Test Bank
• PowerPoint Slides
Videos on DVD
Exciting andhigh-quality video clips help deliver engaging topics tothe classroom tohelp students better imderstand the concepts explained in the textbook. Please contact your localrepresentative to receive a copyof the DVD.
CourseSmart
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CONTENTS
Part 1: THE TOOLS of STRATEGIC AMAIYSIS
CHAPTER 1 What Is Strategyand the Strategic ManagementProcess? ................................2
CHAPTER 2 Evaluating a Firm's External Environment ....................................................28
CHAPTER 3 Evaluating a Firm's Internal Capabilities .......................................................64
Part2: BUSIMESS-LEVPL STRATPGIES
CHAPTER 4 Cost Leadership........................................................................................... 102
CHAPTER 5 Product Differentiation................................................................................ 130
Part 3: CORPORATE S TRAIEGIES
CHAPTER 6 Vertical Integration...................................................................................... 162
CHAPTER 7 Corporate Diversification............................................................................ 188
CHAPTERS Organizingto ImplementCorporate Diversification .....................................220
CHAPTERS Strategic Alliances....................................................................................... 248
CHAPTER 10 Mergers and Acquisitions......................................................................... 276
CHAPTER 11 International Strategies .............................................................................306
Appendix: Analyzing Cases and Preparing forClass Discussions.....................................343
Glossary............................................................................................................................. 347
Company Index................................................................................................................. 355
Name Index....................................................................................................................... 359
Subject Index..................................................................................................................... 363
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