The easy-to-adopt strategies that make companies from Coca-Cola to Starbucks perennial over-performers and that you can use, too High Performance Companies complements the frameworks for strategy making detailed in many existing books, proposing a number of rules of thumb (or principles) that companies can consider when making their day-to-day decisions which, in turn, will determine their actual strategies. These principles traverse a wide range of scenarios, such as strategic changes implemented by companies, resource allocation decisions especially towards building durable assets and resource acquisition through inorganic means. The book adopts a reader-friendly approach by teasing out the lessons to be found in detailed cases studies from interesting companies. The writing minimizes jargon while maintaining rigor, especially with regard to the applicability and relevance of the strategic principles to different business contexts.
* Cites extensive evidence in support of the proposed arguments, without sacrificing readability * Combines both short and long case studies within each chapter to demonstrate the general applicability of the principles presented * Uses a variety of examples ranging from well-known companies such as Coca-Cola, Singapore Airlines, and Starbucks to relatively lesser known companies such as Illinois Tool Work, SAS Institute, and Heng Long Leather to show that the principles presented are applicable everywhere Providing valuable new insight into what makes a business successful and how to replicate this in a company of any size, High Performance Companies is an essential addition to the library of any manager or student of business.
Since obtaining a PhD degree in Strategic Management from the University of Michigan, Nitin Pangarkar has spent more than 15 years teaching Strategic Management in business schools around the world. In addition to his teaching in degree programs, he has also addressed several managerial conferences and conducted training sessions for blue-chip companies based in the US, Europe and Asia. Nitin has authored dozens of cases, scores of research articles in academic journals, articles in newspapers and two books that have been translated into Mandarin. He serves on the Editorial Review Board of Strategic Management Journal, the most prestigious journal in the strategic management area.
Foreword xi Preface xiii Acknowledgments xv 1 My Motivations 1 Introduction and Positioning 1 Seven Concerns Raised by the Content and Approach of Other Books 6 A Book on Strategic Principles: The Idea 11 Approach of the Book 11 Organization of the Book 13 The Final Word 15 2 Discover Diamonds among Coals 19 Resources, Firm Strategy, and Performance 19 Acquisitions Fitting the Discover-Diamonds-among-Coals Adage 22 Mittal Steel: Discovering Diamonds among Coals Consistently! 25 Building a Global Empire through Acquisitions 27 The Recipe for Success 29 How Mittal Polishes Raw Diamonds 34 The Final Word 37 3 Build Durable Assets 45 Durable Assets and Performance 45 Tiger Balm: Durable Assets Withstand Twenty Years of Neglect 52 Pawning the Family Heirloom 55 Restoring the Tiger Balm s Roar through Investments in Durable Assets 56 The Recipe for Success 58 The Tiger Balm Case and Its Implications for a Strategy Based on Durable Assets 59 The Final Word 61 4 Focus on Small Wins 69 Big Hits, Big Flops, and Their Performance Implications 69 Small Wins: An Alternative Route to Superior Performance? 72 YKK s Small Wins Lead to Market Dominance 73 The Lincoln Electric Company s Small- Wins- Based Strategy 76 Illinois Tool Works: Scoring Big with Numerous Small Wins 80 The Four Cornerstones of ITW s Strategy 81 The Final Word 89 5 Integrate to Innovate 97 The Importance of Innovation 97 Innovation Strategies 99 Innovation through Integration 101 SAS Institute: The Consummate Integrator 102 Fanuc: Industry Dominance through Integration and Innovation 107 Integration of External Knowledge at Fanuc 110 Internal Integration at Fanuc 113 The Final Word 114 6 Advance (Strategically and Competitively) During a Crisis 121 Crises as Common Events 121 Top Managers and Crises 123 The Tylenol Crisis and Johnson & Johnson 124 Toyota Fumbles 127 Singapore Airlines (SIA): Proactive Management of Crises 133 SIA s Response to the East Asian Economic Crisis 133 The SQ 006 Crash in Taiwan and SIA s Response 135 The Final Word 140 7 Beware of the Incremental (Strategic Change)! 149 Importance of Strategic Change and Its Performance Implications 149 Mixed Performance Outcomes of Strategic Changes at Starbucks and McDonald s 151 Strategic Changes and Their Performance Implications at Tupperware 156 Tupperware s Social Impact and Performance 156 The Beginnings 158 The Growth Years 159 Innovative Business Model 159 Strategic Changes 161 Putting the Strategic Changes and Their Performance Impacts in Perspective 165 The Final Word 166 8 Strategic Principles in a Nutshell 173 Strategic Principles and Their Relevance 173 Simple yet Powerful 173 Applicability Beyond Large Companies 175 Applicability Across Geographies 177 Some Common Themes (and Factors) Across the Examples 179 CEOs and Top Managers Set the Correct Example 179 A Clearly Conceived Strategy That Often Defies Conventional Wisdom 180 Long View 181 Managing Risks 182 Careful Attention to Execution or Implementation Issues and Management of People Resources 183 In Conclusion 184 Index 189