Solution Manual For
Strategic Management Concepts and Cases, 5th Edition Jeffrey H. Dyer, Paul C.
Godfrey, Robert J. Jensen, David J. Bryce
Chapter 1-14
Chapter 1: What Is Business Strategy?
Learning Objectives
Studying this chapter should provide you with the knowledge to:
Define business strategy, including the importance of competitive advantage,
the four choices that are critical to strategy formulation, and the strategic
management process.
Summarize the information that the company’s mission and thorough
external and internal analysis provide to guide strategy.
Discuss how strategies are formulated and implemented in order to achieve
objectives.
Explain who is responsible for, and who benefits from, good business
strategy.
Purpose
The purpose of the lecture is to familiarize the student with what strategy is and
instill the realization that understanding strategy is vital to competitiveness.
The strategy tool will be learned through class lecture, end of chapter assignments,
mini cases in chapter and finally with the Walmart case.
Outline
Strategy at Tesla
WHAT IS BUSINESS STRATEGY?
Creating Value
Capturing Value: Competitive Advantage
Strategy in Practice: Measuring Competitive Advantage in the Pharmaceutical
Industry
The Strategic Management Process
Copyright ©2024 John Wiley & Sons, Inc. IM 1 - 1
,WHAT INFORMATION AND ANALYSIS GUIDES STRATEGY FORMULATION?
Mission
External Analysis
Strategy in Practice: Apple’s Evolving Mission
Internal Analysis
HOW ARE STRATEGIES FORMULATED?
Strategy Vehicles for Achieving Strategic Objectives
Strategy Implementation
Strategy in Practice: Walmart Functional Strategies Implement the Overall “Low
Cost” Strategy
WHO IS RESPONSIBLE FOR BUSINESS STRATEGY?
Ethics and Strategy: The Price Companies Pay to Stay Competitive
Who Benefits from a Good Business Strategy?
Strategy in Your Career
Summary • Key Terms • Review Questions • Application Exercises • References
Answers to Review Questions
1. Why is it important for you to understand business strategy?
When starting a company or being president or general manager within one,
developing strategy is a primary job. As a junior officer in a company,
developing and implementing ideas that are consistent with corporate
strategy could lead to early promotions. You can also evaluate the potential
success of companies that you work for by understanding their strategy.
2. How would you describe/define strategy?
A plan to achieve competitive advantage
3. What are the four choices that are part of strategy formulation?
What markets or industries will the company pursue?
What unique value should the company offer customers in those markets?
What resources and capabilities are required to deliver better unique value
than competitors?
How will the company capture value and sustain its competitive advantage
over time?
Copyright ©2024 John Wiley & Sons, Inc. IM 1 - 2
, 4. What are the two generic strategies, or primary ways, in which companies
attempt to offer unique value relative to competitors?
Low cost or differentiation
5. Who is ultimately responsible for a company’s strategy? Who does this
individual (or individuals) call on for help in formulating strategy for the firm?
Strategic leaders who develop strategy through the strategic management
process. They usually turn to the board of directors and other top
management for guidance.
6. According to Michael Porter’s “Five Forces” model, why do some firms earn
higher profits than other firms?
Some firms have discovered ways to simultaneously offer both a low price
and a differentiated product, which turns out to be a powerful source of
competitive advantage.
7. What are resources and capabilities, what is the difference between them, and
why do firms need to assess them?
Resources are the tangible and intangible assets a firm employs to create
value and competitive advantage. Capabilities are the processes and
activities that a firm develops to achieve specific goals. Firms need to assess
the resources and capabilities necessary to deliver unique value.
8. What are three keys to the successful implementation of a company strategy?
Functional strategies need to be well aligned with delivering the unique
value identified in the overall strategy.
Structure, systems, staff, skills, style, and shared values need to be designed
to facilitate the execution of the strategy.
9. Who are the four primary stakeholder groups that influence strategic
decisions in a company?
Capital market stakeholders
Product market stakeholders
Organizational stakeholders
Community stakeholders
Copyright ©2024 John Wiley & Sons, Inc. IM 1 - 3
, Chapter 2: Analysis of the External
Environment: Opportunities and Threats
Learning Objectives
Studying this chapter should provide you with the knowledge to:
Explain the importance of correctly identifying and choosing a firm’s
industries and markets.
Identify and measure the five major forces that shape average firm
profitability within industries to evaluate the overall attractiveness of an
industry.
Discuss how understanding the five forces that shape industry competition is
useful as a starting point for developing strategy.
Discuss situations in which entry into both attractive and unattractive
industries follows “new thinking” rather than conventional wisdom.
Identify the factors in the general environment that affect firm and industry
profitability.
Purpose
The purpose of this chapter is to introduce students to the forces that influence
industries internally and externally. Students will learn how to apply Michael
Porter’s Five Forces framework to evaluate the attractiveness of industries in the
broader scope of the general environment. The Five Forces framework will be basis
of analysis for the remainder of the course.
This tool will be learned through class lectures, end of chapter assignments, mini
cases and finally with the Coca-Cola Case.
Outline
State Farm Adjusts to a Changing World
DETERMINING THE RIGHT LANDSCAPE: DEFINING A FIRM’S INDUSTRY
Strategy in Practice: How the U.S. Government Defines Industries
FIVE FORCES THAT SHAPE AVERAGE PROFITABILITY WITHIN INDUSTRIES
Copyright ©2024 John Wiley & Sons, Inc. IM 1 - 4
Strategic Management Concepts and Cases, 5th Edition Jeffrey H. Dyer, Paul C.
Godfrey, Robert J. Jensen, David J. Bryce
Chapter 1-14
Chapter 1: What Is Business Strategy?
Learning Objectives
Studying this chapter should provide you with the knowledge to:
Define business strategy, including the importance of competitive advantage,
the four choices that are critical to strategy formulation, and the strategic
management process.
Summarize the information that the company’s mission and thorough
external and internal analysis provide to guide strategy.
Discuss how strategies are formulated and implemented in order to achieve
objectives.
Explain who is responsible for, and who benefits from, good business
strategy.
Purpose
The purpose of the lecture is to familiarize the student with what strategy is and
instill the realization that understanding strategy is vital to competitiveness.
The strategy tool will be learned through class lecture, end of chapter assignments,
mini cases in chapter and finally with the Walmart case.
Outline
Strategy at Tesla
WHAT IS BUSINESS STRATEGY?
Creating Value
Capturing Value: Competitive Advantage
Strategy in Practice: Measuring Competitive Advantage in the Pharmaceutical
Industry
The Strategic Management Process
Copyright ©2024 John Wiley & Sons, Inc. IM 1 - 1
,WHAT INFORMATION AND ANALYSIS GUIDES STRATEGY FORMULATION?
Mission
External Analysis
Strategy in Practice: Apple’s Evolving Mission
Internal Analysis
HOW ARE STRATEGIES FORMULATED?
Strategy Vehicles for Achieving Strategic Objectives
Strategy Implementation
Strategy in Practice: Walmart Functional Strategies Implement the Overall “Low
Cost” Strategy
WHO IS RESPONSIBLE FOR BUSINESS STRATEGY?
Ethics and Strategy: The Price Companies Pay to Stay Competitive
Who Benefits from a Good Business Strategy?
Strategy in Your Career
Summary • Key Terms • Review Questions • Application Exercises • References
Answers to Review Questions
1. Why is it important for you to understand business strategy?
When starting a company or being president or general manager within one,
developing strategy is a primary job. As a junior officer in a company,
developing and implementing ideas that are consistent with corporate
strategy could lead to early promotions. You can also evaluate the potential
success of companies that you work for by understanding their strategy.
2. How would you describe/define strategy?
A plan to achieve competitive advantage
3. What are the four choices that are part of strategy formulation?
What markets or industries will the company pursue?
What unique value should the company offer customers in those markets?
What resources and capabilities are required to deliver better unique value
than competitors?
How will the company capture value and sustain its competitive advantage
over time?
Copyright ©2024 John Wiley & Sons, Inc. IM 1 - 2
, 4. What are the two generic strategies, or primary ways, in which companies
attempt to offer unique value relative to competitors?
Low cost or differentiation
5. Who is ultimately responsible for a company’s strategy? Who does this
individual (or individuals) call on for help in formulating strategy for the firm?
Strategic leaders who develop strategy through the strategic management
process. They usually turn to the board of directors and other top
management for guidance.
6. According to Michael Porter’s “Five Forces” model, why do some firms earn
higher profits than other firms?
Some firms have discovered ways to simultaneously offer both a low price
and a differentiated product, which turns out to be a powerful source of
competitive advantage.
7. What are resources and capabilities, what is the difference between them, and
why do firms need to assess them?
Resources are the tangible and intangible assets a firm employs to create
value and competitive advantage. Capabilities are the processes and
activities that a firm develops to achieve specific goals. Firms need to assess
the resources and capabilities necessary to deliver unique value.
8. What are three keys to the successful implementation of a company strategy?
Functional strategies need to be well aligned with delivering the unique
value identified in the overall strategy.
Structure, systems, staff, skills, style, and shared values need to be designed
to facilitate the execution of the strategy.
9. Who are the four primary stakeholder groups that influence strategic
decisions in a company?
Capital market stakeholders
Product market stakeholders
Organizational stakeholders
Community stakeholders
Copyright ©2024 John Wiley & Sons, Inc. IM 1 - 3
, Chapter 2: Analysis of the External
Environment: Opportunities and Threats
Learning Objectives
Studying this chapter should provide you with the knowledge to:
Explain the importance of correctly identifying and choosing a firm’s
industries and markets.
Identify and measure the five major forces that shape average firm
profitability within industries to evaluate the overall attractiveness of an
industry.
Discuss how understanding the five forces that shape industry competition is
useful as a starting point for developing strategy.
Discuss situations in which entry into both attractive and unattractive
industries follows “new thinking” rather than conventional wisdom.
Identify the factors in the general environment that affect firm and industry
profitability.
Purpose
The purpose of this chapter is to introduce students to the forces that influence
industries internally and externally. Students will learn how to apply Michael
Porter’s Five Forces framework to evaluate the attractiveness of industries in the
broader scope of the general environment. The Five Forces framework will be basis
of analysis for the remainder of the course.
This tool will be learned through class lectures, end of chapter assignments, mini
cases and finally with the Coca-Cola Case.
Outline
State Farm Adjusts to a Changing World
DETERMINING THE RIGHT LANDSCAPE: DEFINING A FIRM’S INDUSTRY
Strategy in Practice: How the U.S. Government Defines Industries
FIVE FORCES THAT SHAPE AVERAGE PROFITABILITY WITHIN INDUSTRIES
Copyright ©2024 John Wiley & Sons, Inc. IM 1 - 4
