Sustainable Strategic Management

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Miễn Phí

Jean Garner Stead and W. Edward Stead (2014)

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PREFACE

Strategic management is like all business disciplines in that it has deep roots in the traditional economic model that portrays organizational success as exclusively synonymous with economic success. Firms succeed when they cover their costs, improve their sales, and earn a profit, and they fail when they do not. This has not changed, and it is not likely to change in the foreseeable future. The financial health and performance of a firm has been and will always be critical for its success. What has changed is that in today’s sustainability-dominated world where pervasive concerns for mother nature and society are rapidly escalating, firms are expected to earn their financial returns in ways that benefit society and/or protect the natural environment. As would be expected of a major trend in any field, the growing concern for more sustainable business practices has recently permeated the walls of business schools when the Association to Advance Collegiate Schools of Business (AACSB) established a sustainability standard for its members. Because of this, strategic management scholars are now responsible for teaching their students how to develop and implement strategies that not only earn financial rewards for their firms but also serve the social and ecological needs of the planet that we call home. And that is where this book comes in. It is the first book to integrate sustainability into strategic management. It covers the full gamut of strategic management concepts and processes that would be expected in any quality strategic management book, and it does so in a way that thoroughly weaves sustainability into each and every one of them. Students using this book understand things such as: why reducing materials and energy intensity is an effective functional-level strategy, why socially differentiated products command premium prices, and why a business ecosystem pursuing a vision of social and ecological responsibility can dominate its market. Further, because the book is relatively short, reasonably priced, and very thorough in its coverage of strategic management concepts and ideas, it can be used either as a stand-alone text for graduate and undergraduate strategic management courses, as a supplement to another book, or as one of a group of short texts.
Two scholars whose deep influence on us has added untold value to our work over the years are Ed Gray and Herman Daly. Ed Gray is one of the pioneers in the field of business and society, Herman Daly is one of the pioneers in the field of ecological economics, and both were primary advisors to Jean during her PhD program at LSU. The seeds of sustainability that these gentlemen planted in us over 30 years ago have grown and matured throughout our careers, and their ideas and their spirit are deeply embedded in this and our other books. Thank you, Ed, and thank you, Herman. You will always be in our hearts and minds. Many people at East Tennessee State University (ETSU) have contributed valuable time, energy, and ideas to this book. We would like to thank our graduate assistants, Harold Riddle, who helped with our research in Chapter 2, and Brett Sloan, who helped with the author questionnaire. We would also like to thank Michelle Sullivan, our departmental administrative assistant, for the hard work she put in on our manuscript, and Andrew Childress, a senior accounting student, who helped us conceptualize some key points in Chapter 3. And as always, we would like to thank our dean, Linda Garceau, for her support, and our department chairperson, Phil Miller, for his willingness to take on more than his share of the load so that the rest of us can prosper. One person at ETSU who deserves our special thanks is Al Spritzer, former dean and current endowed chair holder in our college. Al has supported and encouraged our writing endeavors for over thirty years. He encouraged us to write what was in our hearts when we were young professors and he was a young dean, and his support has never wavered, even after he chose to step down as dean twelve years ago. Recently, Al has done all that he could to support our efforts to integrate sustainability into the college’s curricula, research, and service activities, and we are truly grateful for all that he has done for us. At the top of Al’s contributions to our sustainability efforts was his introduction three years ago of our book, Management for a Small Planet, to Jim Rogers, chairman and chief executive officer (CEO) of Eastman Chemical Company. This was the beginning of a very fruitful sustainability partnership between Eastman and ETSU. Both Jim Rogers and chief sustainability officer (CSO) Godefroy Motte (twice) have visited the campus to speak to and interact with our students and faculty, and the Corporate Sustainability Group, including group leader Anne Kilgore and group members Bill Heise, Kristin Ketron, and Mark Schurger, have worked directly with students in ETSU’s capstone strategic management classes on projects related to Eastman’s sustainability advantaged products, such as Tritan BPA-free plastic. We want to thank all these Eastman folks from the bottom of our hearts for your willingness to work with our students. You have given them an experience that they could have never gotten without your involvement. And we especially want to thank Bill, Kristin, and Mark, who put in huge amounts of time designing and evaluating the student projects and visiting classes to answer questions and provide guidance to the students.
The case vignettes that appear in each of the eight chapters in this book are also a big part of our sustainability partnership with Eastman. These case vignettes clearly 
demonstrate many of the key concepts we cover in this book. We especially want to thank two Eastman people who went the extra mile to ensure the quality of the vignettes: CSO Godefroy Motte, who took very valuable time out of his busy day to interview with us for the case; and Bill Heise, who read all of the vignettes and made very valuable suggestions regarding their accuracy and efficacy. As with our last book, we want to thank our Auburn support group, Gregg and Martha Shepherd and Mike and Linda Davis (whose worry about our ever getting past Chapter 5 was a big motivator). We said last time that you turned what could have been the drudgery of many long, lonely workdays into meaningful fun and friendship. Well, you did it again. War Eagle! guys, and thanks for everything. We have written five book prefaces beginning with the first edition of Management for a Small Planet in 1992, and each one has included a paragraph about our hopes and dreams for our only child, Garner Lee. She was 12, 16, 24, and 29 when the first four prefaces were written, and she will be 33 when this one is published. During that time she has lived in Tennessee, South Carolina, Indianapolis, New York City, and she now lives in the Silicon Valley. She completed high school, graduated from college, earned a master’s degree, established a career, found her soul mate, and got married while we were writing those first four prefaces, and a common thread through all of them was her desire to have her own family. That dream is now a reality. Garner Lee and Mike now have two beautiful children—our grandchildren—Grant Thomas Green, three years, and Allison Grace Green, seven months. And this is where our hope in the future lies. This is our posterity, our own future generation.

                                                                                              Peaceful solutions, Jean and Ed

 

CONTENTS

1. The Emergence of Sustainable Strategic Management
Case Vignette 1: Creating Value Through Sustainability at Eastman Chemical
Company
The Changing Economic Worldview
Pursuing the Triple Bottom Line
Coevolution and Organizational Survival
Transformational Change: A Critical Pathway to Organizational Sustainability
From Strategic Planning to Sustainable Strategic Management
Chapter Summary
2. In Search of Sustainability
The Science of Sustainability
The Issue Wheel: Carrying Capacity Meets the Human Footprint
Ecological Sustainability: Management Happens on Earth
Social Sustainability: Searching for Equity
Sustainability: A New Way of Thinking
Chapter Summary
Case Vignette 2: The Meaning of Sustainability at Eastman Chemical Company
3. Environmental Analysis for Sustainable Strategic Management
The Coevolving Factors Determining Environmental Turbulence
The Coevolving Sectors of the Macro Environment

Traditional Industry Analysis
Business Ecosystems: Ideal Structures for Sustainable Strategic Management
The Coevolving Markets of the World
Environmental Forecasting
Chapter Summary
Case Vignette 3: A Brief Environmental History of the Chemical Industry
4. SSM Resource Assessment
The Resources of the Firm
SSM Resource Assessment Data-Gathering Tools
Analyzing and Evaluating Resources and Capabilities to Build Core Competencies
Creating Stakeholder Value via Eco- and Socio-Efficiency
Beyond Eco- and Socio-Efficiency: Eco- and Socio-Effectiveness
Chapter Summary
Case Vignette 4: Eco-Efficiency at Eastman Chemical Company
5. SSM Competitive Level Strategies
The Nature of Competitive Level Strategies
SSM Competitive Level Strategies
Strategies Dependent on Relative Competitive Position and Market Type
Chapter Summary
Case Vignette 5: Product Stewardship at Eastman Chemical Company
6. SSM Corporate Level Strategy
Corporate Expansion Strategies
The Build or Buy Decision
Retrenchment and Restructuring Strategies
SSM Corporate Portfolio
Chapter Summary
Case Vignette 6: Corporate Strategy at Eastman Chemical Company

7. Choosing and Implementing SSM Strategies
Choosing Portfolios of SSM Strategies
Instilling SSM Value Systems
Creating Meaning Beyond Profit
Designing Self-Renewing Learning Structures
Establishing Transformational Change Processes
Chapter Summary
Case Vignette 7: Strategies, Structures, and Processes for Implementing SSM at
Eastman Chemical Company
8. Organizational Governance and Strategic Leadership in SSM
Establishing Effective Corporate Governance Mechanisms for SSM
Emerging Perspectives on Organizational Leadership
Effective Business Ecosystem Leadership
Building Trusting Relationships
Chapter Summary
Case Vignette 8: Strategic Leadership at Eastman Chemical Company
Bibliography
Index
About the Author

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