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 âDiscover-Diamonds-among- Coalsâ Adage 22
Mittal Steel: Discovering Diamonds among Coalsâ"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 Balmâs 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
YKKâs Small Wins Lead to Market Dominance 73
The Lincoln Electric Companyâs Small- Wins- Based Strategy 76
Illinois Tool Works: Scoring Big with Numerous Small Wins 80
The Four Cornerstones of ITWâs 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 âIntegratorâ 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
Contents ix
The Tylenol Crisis and Johnson & Johnson 124
Toyota Fumbles 127
Singapore Airlines (SIA): Proactive Management of Crises 133
SIAâs Response to the East Asian Economic Crisis 133
The SQ 006 Crash in Taiwan and SIAâs 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 McDonaldâs 151
Strategic Changes and Their Performance Implications at Tupperware 156
Tupperwareâs 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 Defi es 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
