Index

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A

Aguiluz, IX, Amable “Miguel,” 93–95, 144–45

Ink for Less Professional (business customer division) and, 104, 106

Ink for Less strategy statement and, 102

airline industry

average profitability of, 26

firm effect, 47

How Firms Differ: Firm Effects in Four Different Industries, 48

Ajayi, Richard, 82

Allen, Paul, 113

Altria tobacco, 47

Amazon, 110

Amelio, Gil, 118–19

AmREIT, 85–87

AmREIT Portfolio: Demographic Positioning, 86

broker-dealer business shut-down and, 104, 140

formulating a strategy statement, 85

Irreplaceable Corner Criteria, 86, 87

metrics (data) over intuition and, 85–86

slogan of (“Irreplaceable Corner Company”), 85, 86

team approach and implementing management strategies, 143

Apple, 110–31, 170–71n 1

Amelio leads, 118–19

Apple II, 111–12, 120

Apple III as first failure, 113, 120

arrogance of, 121

competition and, 129

creative destruction and, 120, 127

customers and, 112, 114, 125

“difference that mattered” and, 112, 124

digital hub strategy, 125

evolution of industry and change in strategy, 129, 130–31, 141

FireWire, 126

functional advantages over other early computer makers, 112

iCloud, 128, 129

iMac, 124–25

iMovie, 126

iPad, 128, 129

iPhone, 127–28, 129

iPod, 126, 127, 128

iTunes, 125, 127

Jobs leaves company, 116

Jobs returns, 119, 124, 130–31

Jobs revives and recreates company, 124–31

Lisa, technology advances and marketing problems, 114–15, 120

loss of a difference that mattered, 119–22

Macintosh, 114, 115–16, 117, 120

Mac OS, 119, 125, 126

management style change, 124

market share slide, 117

market value (1980), 112

market value (2010), 128

name change and shrinking computer business, 128

Newton PDA, 117

NeXT purchased by, 119, 123–24

proprietary technology and, 113, 114, 118

purpose change at (2001), 125, 127

purpose out of sync with industry forces, 121–22

purpose statement (1980), 111

recommended reading, 163

retail stores, 125

Sculley leads, 115–16, 117

Spindler leads, 117–18

Stock Price chart, 128

super-manager era, 116–19, 121

Arnault, Bernard, 75

B

Beatrice Foods, 25

Bias for Action, A (Bruch and Ghoshal), 135

BMW

statement of purpose, 84

value creation and, 55

BP (British Petroleum), 87

Brandenburger, Adam,165n 1; 168n 16, 17, 20; 174n 22

Bridge Clinic, The (Nigeria), 82

Brighton Collectibles (formerly Leegin), 88–92, 138

identifying the customer, 88–90

legal battle to protect pricing, 90

system of value creation, 90–91, 92

Browne, John, 87

Bruch, Heike, 135

Buffett, Warren

competitive forces and, 30–31, 36

“economic moat,” 74

maxim, 24

myth of the super-manager and, 30

portfolio, furniture investments, 32

Burlington Industries, 25

BusinessWeek: on IKEA, 39

C

Champion International, 25

Champy, James, 81–82, 170n 2,

Chanel, 60

Cirque du Soleil, 31

strategy of, 31–32

colleges, changing economic models for, 129

Collins, Wesley, 18

Collis, David J., 161, 170n 1

competition. See also specific businesses

analyzing rivalry among firms, high to low, 28

Apple and, 113, 117, 118, 119, 120, 121, 129

Buffett’s economic moat and, 74–75

creative destruction and, 119, 120

furniture industry, 18, 29, 53

Gucci and, 59–60, 60, 71, 72, 74

IKEA and, 41, 44, 53, 155–56

Ink for Less and, 94, 104, 106

industry forces and, 2, 27, 28

Lance! and, 96, 106

leadership and, 134

purpose and, 11, 65

Southwest Airlines and, 31, 47

strategy statement, 99, 157–58

competitive advantage, 4, 47

company’s purpose and, 4, 46–47

intangibles and, 74–75

Masco’s in faucets, 34

nonprofits and, 151

role of scarcity, 74

strategy as long-run, sustainable competitive advantage, 111, 129, 130

computer industry, 128. See also Apple; IBM

creative destruction and, 120

Dell and, 120

deteriorating of, 121

disappearance of long-time players in, 120

pricing and, 122

two suppliers dominate, 120

Consolidated Foods, 25

core competencies, 162

Covey, Stephen, 135

creative destruction, 119–20, 127

Credit Suisse, 68, 70

Cullen, Ann, 154

customers

Apple and, 111, 118, 125

Brighton Collectibles and, 88–90, 92

differentiators and, 52, 155

furniture industry, 18–19, 29, 34, 55

Gucci and, 57, 59, 60, 60, 61, 64, 65, 65, 66, 67, 67, 68, 70, 73, 73, 96

identifying, 88–89

identifying new, 70, 73, 104, 106

identity of company, purpose, and, 11, 49, 50, 51, 56, 96, 137, 157–58

IKEA and, 40, 41, 43, 46, 52, 53, 55

industry forces and, 27, 28, 32

Ink for Less and, 93, 94, 95, 95, 104, 106

Masco failure and, 34, 46

power of, analyzing, 28

profit frontier and, 59–60, 60, 65, 65, 67

strategy and, 53, 82, 93, 96, 101, 105, 107, 137

strategy wheel and, 73, 92

Strategy and Added Value chart, 53

team contact with, 141–42

willingness to pay and value creation, 54, 54, 55, 59, 60, 64, 65, 67

D

Dahlvig, Anders, 156

Deifell, Tony, 146

Dell, Michael, 124

Dell Computer, 120

de Mattos, Walter, 96–97, 106–7

strategy statement for Lance!, 101–2

De Pree, Max, ix, 141, 142, 161, 173n 13,15,16

De Sole, Domenico, 57, 64–77, 88, 131, 139, 142–43, 146

Deutschman, Alan, 122

differentiation

IKEA and, 51–52, 55

innovation to create, 52

purpose and, 4, 39, 51–52

strategy and, 47

differentiators, 154–55

Disney

intangibles and, 75

Pixar and, 123

value creation and, 55

Doctors Without Borders, 98–99

E

economic rents, 119

Economist magazine, 98, 99

Eliot, T. S., 146

Entrepreneur, Owner, President program (EOP), Harvard Business School, 7, 149

article by Robert Nozick and, 145

changing view of strategy and, 1, 4

closing session, 143

company leader as strategist and, 3–4

competition for best strategy, 11, 12

dramatic insights about participants’ businesses, 82–83

identifying purpose and, 11

motivation of participants, 9–10

Oliver’s poem and Portrait Project, 146, 147

orientation, 7–9, 14

overview of program, 9

participants, 8–9

strategy course, 10–11

strategy vs. execution discussion, 77–78

as transformative, 14

website, 149

writing down clear statement of purpose for the company and, 81

existentialism, 137–38

F

fashion industry, 58. See also Gucci

Designer Fashion Industry: Gucci 1975, 60

Designer Fashion Industry: Gucci 1995, 65

Designer Fashion Industry: Repositioning Gucci, 67

positioning company in, 64–66

profit frontier, 59–60

“Finding Information for Industry Analysis” (Rivkin and Cullen), 154

firm effect, 47

How Firms Differ: Firm Effects in Four Different Industries, 48

purpose and creation of, 49

focused firms, 154–55

Ford, Henry, 129

Ford, Tom, 64, 66, 68, 69, 71, 72, 76

Four Seasons Resorts, 97–98

furniture industry, 16, 17–19. See also Masco Corporation

Buffett’s investments in, 32

companies that tried and failed in, 25

Furniture Retailing: Net Profit Margin 2003–2010, 48

IKEA and, 39–46, 55

industry forces, analyzing, 28–29

industry forces in, 17–18, 29, 34, 40

management in, 18

Masco’s acquisitions of existing companies, 20

Masco’s expansion into, 15–22, 24

Mengel Company case and, 24–25

price-points and, 33–34

problems in, as opportunities or red flags, 19

Relative Industry Profitability: 1990–2010 graph, 26

scale economies and, 34

G

Gates, Bill, 113–14

Gatorade, 75

General Electric (GE), 30

General Housewares, 25

Georgia Pacific, 25

Ghemawat, Pankaj, 160, 168n 19

Ghoshal, Sumantra, 135

“going back to the core,” 69

Google

Android software, 129

statement of purpose, 84

Gucci, 57–78

Aldo’s credo, 59

brand identity and repositioning of, 70

choices that involved trade-offs, 73–74

company history, 58–61

customers and, 57, 59, 60, 60, 61, 64, 65, 65, 66, 67, 67, 68, 70, 73, 73, 96

Designer Fashion Industry: Gucci 1975, 60

Designer Fashion Industry: Gucci 1995, 65

Designer Fashion Industry: Repositioning Gucci, 67

De Sole and Ford leave, 76

De Sole at helm, 64–76, 77, 131, 139

De Sole’s statement of strategy, 77

family turmoil and overexposure of brand, 61–62

implementing redefined purpose, 70–72, 139

intangible assets and, 75

Investcorp and, 62, 64, 69

management change (under De Sole), 72, 76–77

marketing, 71

Maurizio Gucci buyout and leadership, 62–64, 69, 70, 74

PPR buyout, 75–76

pricing, 68

product and repositioning of, 70

as publicly traded company, 68

purpose clarified, reinvented, 64–66, 69, 73, 110, 127, 142

rallying team to support purpose, 66, 142–43

recommended reading, 163

restoration of brand, 62–64

stores, 70–71

strategy and, 78

strategy as system of value creation and, 72–77, 73, 88

suppliers and, 67–68, 71

takeover attempt, 75

turnaround of, 68–69

Gucci, Aldo, 59, 60–61, 62

Gucci, Guccio, 58–59

Gucci, Maurizio, 62–64, 65, 69, 70, 74, 96

Gucci, Paolo, 61, 62

Gucci, Roberto, 61

Gucci, Rudolfo, 59, 60, 62

Gucci, Vasco, 59, 60

Guimaraes, Pedro, 50–51

Gulf + Western, 25

H

health care sector, 129

Hermès, 60, 67, 71

I

IBM, 111, 113, 117, 118

market innovation and, 120

sale of PC business, 120

IKEA, 69, 142, 167n 12

BusinessWeek on, 39

customers, 53

a difference that matters and, 40

differentiation and, 51–52, 55

evolution and change in strategy and, 110

furniture design and, 44

Furniture Retailing: Net Profit Margin 2003–2010, 48, 167n 13

growth of, 43

imitators of (STØR), 155–56, 174n 1

“inciting incident” of boycott, 42–43

industry forces and, 40

innovation and, 52

Kamprad’s philosophy, 41–42

lean manufacturing, 53

marketing and, 52

name recognition and, 55

origins of, 41

packaging, 43, 52, 53, 55

pricing, 43–44, 46, 53

purpose: a concept company, 45–46, 57

purpose as core organizing principle, 53

purpose as ennobling and, 49

recommended reading, 162

store design, 40, 44–45, 53

strategy and, 78

suppliers, 42–43, 55

value creation at, 52, 55

Imperial Tobacco, 47

“inciting incident,” 42–43

industry analysis, 153–54

recommended reading, 159–60

industry effect, 27, 36–37, 47, 166n 6

industry forces, 2, 26–30, 39, 144

analyzing, 153–54

Apple hurt by, 120–21

availability of substitute products, 28

average profitability of different industries, 26–27, 47

barriers to entry and exit, 28

Cirque du Soleil and, 31–32

continuum of, from “Unattractive” to “Attractive,” 27–29

factors to consider, 28–29

firm effect, 47

furniture business, 17–20

lesson of industry effect, 36–37

opportunities or red flags, 19, 35

power of customers, 28

power of suppliers, 28

Relative Industry Profitability: 1990–2010 graph, 26

rivalry among firms, 28

Southwest Airlines and, 31–32

Starbucks and, 31–32

Ink for Less, 93–95, 144–45

customers, 93, 94, 95, 95, 104, 106

Human Resources and Training at Ink for Less, 95

Professional, 104, 106

R&D, 94

statement of purpose, 93

strategy statement, 102

innovation, 83

Apple and, 125

being a fire starter and, 134–36

creative destruction and, 119–20

differentiation and, 52

“economic rents” and, 119

fighting the status quo and, 135–36

Four Seasons Hotel and, 97

furniture industry and, 18, 29

IKEA and, 52

industry forces and, 28

Masco and, 16–17

Nike and, 84

resistance to, 135

Intel, 118, 120

Intermark, 25

Investcorp, 62, 64, 69

J

Jobs, Steve, 110–31

Apple’s purpose and, 115

arrogance of, 121

“difficult” reputation, 112–13

Disney and, 123

education of, as strategist, 122–23, 124

failure as company leader, 116

“insanely great” technology and, 111

Lisa development and, 115

as multibillionaire, 123

NeXT and, 116, 119, 122–24

Pixar and, 123

proprietary technology and, 113

return to Apple, 119, 130–31

revival and recreation of Apple, 124–31

Sculley removes from Apple, 116

K

Kamprad, Ingvar, 39–46, 54, 138, 146

“A Furniture Dealer’s Testament,” 46

philosophy of, 41–42

statement of purpose, 45–46

Kay’s Kloset, 90

Kohl, Jerry, 88, 138

L

Lance! Sports Group, 96–97, 106–7

strategy statement, 101–2

leadership. See also strategist

being a “Man of Action,” 136

CEO as “guardian of organizational purpose,” 143, 173n 17

commitment and passion in, 135

communication and, 142, 143

companies that lack leaders as strategists, 147–48

corporate rebirth or renewal and, 140–41

developing a system of strategy and, 141–43, 156, 157

EOP program and new understanding of, 144

executing strategy and, 136

facing and interpreting economic reality and, 142–43

fighting the status quo, 135–36

fire starting and, 134–36, 142

flexability, adaptability and, 139

four basic questions confronted by, 133–34

frequency of strategy review, 158

getting a team on board, 141–43, 156, 157

maintaining strategic momentum and, 138–41

Mary Oliver poem and, 146, 147

meaning of what a leader does, 146–47

motivation, 136

openness to new ideas, 134, 139

prioritizing time and activities, 135

recommended reading, 161

setting a course for a company and choices, 136–38

strategist as leader, 12–14, 133–48

strategy as a way of life and, 143–47, 174n 18

Zen story and, 134

Louis Vuitton company, 64, 66, 71

low-cost producers, 154–55

Ludlow, 25

LVMH (Louis Vuitton Moët Hennessy), 75

M

Manoogian, Alex, 16–17

Manoogian, Richard, 15–22, 35, 39, 120, 142

Marchese, Eugene, 83

Marchese Partners, 83

Masco Corporation, 15–22, 31, 32, 120

about the company, 16–17, 165n 2

acquisitions of furniture companies, 20

competitive advantage in faucets, 34

exiting furniture business, 22

expansion of business into furniture decision, 16

failure of expansion, 21–22, 24

failure to consider industry forces, 17–20, 29, 40

myth of the super-manager and, 23–24, 33–36

purpose in furniture lacking, 46

strategic plan for expansion and, 32–35

successful brands, 17

“Masco Fiasco, The” (Financial World), 35

McGahan, A.M., 166n 4

McKee, Robert, 42

Mead, 25

Mello, Dawn, 63, 64

Mengel Company, 24–25, 32

Microsoft, 74, 113, 120, 126, 128, 131

Windows, 118, 119

mission statement, 153

Moltke, Helmuth von, 138

music industry, 126. See also Apple

N

Nalebuff, Barry, 165n 1; 168n 16, 17, 20; 174n 22

Napoleon Bonaparte, 142

National Semiconductor, 118–19

Nike, 110

statement of purpose, 84

nonprofits, 151

Nozick, Robert, 145, 146

Nussbaum, Martha, 139

O

Oliver, Mary, 146, 147

P

pharmaceutical industry

How Firms Differ: Firm Effects in Four Different Industries, 48

Piceu, Geoff, 82–83

Pinault, François, 76

Pixar, 123

Disney and, 123

IPO, 123

Jobs and, 123, 124, 126

strategy statement of, 105

Toy Story and, 123

Plutarch, 127

Polaroid, 129

Porter, Michael E., 2, 27-28, 50, 59–60, 159, 160, 161, 165n 1; 166n 3,4,5,6,7; 167n 12; 170n 36, 42

Productivity Frontier, 59–60, 168n 4

three generic strategies and, 154–55

“Portrait Project,” Harvard Business School, 146

PPR (Pinault Printemps Redoute), 75–76

Procter & Gamble, 84

profit frontier, 59–60, 60

best in class and, 60, 168n 16

purpose, 49–56

AmREIT, purpose as steering strategy, 85–87, 86, 87

articulation of, basic questions to answer, 99

BP’s definition of, 87

care and commitment to a business and, 50

CEO as “guardian of organizational purpose,” 143, 173n 17

choices that involve trade-offs and, 50–51, 67, 73–74, 103

clarity of, 83–84, 103

competitive advantage and, 4, 46–47

as core organizing principle, 52, 121

difference of business vs. others, 34, 56

differentiation and, 4, 39, 51–52, 85, 133

differentiation that matters and, 53, 54, 155

“does your company matter” question, 7, 40, 56, 103, 121, 127, 133

effective purposes, 49–52

elements of, 46

as ennobling, 49–50

evolution and change of, 121–22, 134

examples of good statements, 84

existentialism and, 137–38

firm effect and, 49

“going back to the core,” 69

Gucci and, 64–66

identifying, 11

identifying valuable firm resources and, 161–62

“identity-conferring commitments and,” 73

IKEA and, 45–46, 49, 53, 57

implementing, 57–78, 80, 80–81, 96 (see also strategy wheel)

importance of, 138

Ink for Less, 93

meaningful life and, 145–46

nonprofits and, 151

out of sync with industry forces problem, 121

putting a stake in the ground with, 50–51

refining and clarifying, 87–88

reinventing, 4

Sartre’s “possibility of choice” and, 137–38

serving an unmet need and, 47, 49

slogan that captures, 85, 87

staying with original, 4

strategy and clear statement of, 33

strategy wheel and, 73, 92, 96

success as result of a compelling purpose, 156

Theseus’s boat as metaphor for changing, 127, 130

value creation and, 52–55

vision or mission statement vs., 153

writing down, 81, 87, 99

R

Relative Industry Profitability: 1990–2010 graph, 26

Reynolds American, 47

RHR International, 142

Rilke, Rainer Maria, 174n 18

Rivkin, Jan W., 154, 160, 168n 19

Rockwell International, 118

Rukstad, Michael G., 170n 1

Ryanair, 47

S

Saporito, Thomas, 142, 157

Sartre, Jean-Paul, 137, 146

scarcity, role of, 74, 133

as “economic moat,” 74

Schumpeter, Joseph, 119, 127, 129, 135, 136, 138, 173n 5

Scott Paper, 25

Sculley, John, 115–16, 117

Sloan, Alfred, 129

soft drink industry

How Firms Differ: Firm Effects in Four Different Industries, 48

Sony, 126

Southwest Airlines, 47

strategy of, 31

Spindler, Michael, 117–18

Starbucks, 31

strategy of, 31

strategist, 3

adapting to change, 107, 110–11, 130, 131–32, 134, 139–40 (see also Jobs, Steve)

adapting to change, recommended reading, 162

building stategic skills, 81

companies that lack leaders as strategists, 147–48

corporate rebirth or renewal and, 140–41

daily decisions and, 11

“does your company matter” question, 7

economic factors to consider, 28–29

economic forces, predetermination of industry conditions as, 29–30, 36–37

economic forces, understanding of, 27–30

effect on lower tiers in company, 11

exercise, applying tools of strategy to one’s own business, 79–107, 170n 1

firm effect and, 47

four basic questions confronted by, 133–34

the future as concern of, 134

“identity-conferring commitments and,” 73

implementing strategic thinking, 80, 80

as key to company, 4

leadership and role of, 3–4, 5, 12–14, 133–48 (see also leadership)

lessons from Apple’s experience, 119–22

number-one job of setting an agenda and implementing strategy, 77

on-going role in implementation of strategy, 109

overconfidence and myth of the super-manager, 23–24, 35

power of realism and, 36–37

purpose and, 56, 78, 80–81

role to make a business matter, 56

Steve Jobs as, 110–31

test of strategic thinking, 15–22

“what does it take for the company to endure?” and, 111

strategy

Brighton Collectibles and, 88–92

change, not stasis, and, 129, 131–32

choices, unanticipated, 109

choices that involve trade-offs and, 50–51, 131, 167n 12

clear choices and, 103

clearly defined, 81–82

as a company’s campaign in the marketplace, 10

competitive advantage and, 47

confronting problems and, 103–4

costs of unclear strategies, 81–82

customer identification and, 88

defining moment, 24

as democratic process, 157

developing, duration of process, 157

developing, steps in, 156

differentiation and, 47

discovering where the company is now and, 65

“does your company matter” question and, 103

as duty of company leader, 2, 3, 5, 12 (see also strategist)

as dynamic, 13, 131–32

EOP program and, 4, 10–11

evolution and change, Apple and, 110–31

evolution and change in, 110–11

exercise, applying tools of strategy to one’s own business, 79–107, 170n 1

formulation vs. implementation, 3

frequency of review, 158

generic good practices and, 78

as group effort, 141–43

Gucci, De Sole, and, 57–78

Gucci’s and redefined purpose, 70–72

hallmarks of great strategies, 103

Ink for Less and, 93–95

intangibles as particularly valuable, 75

internal working steps of, 97

as job of specialists, 2–3, 13

as a journey not a destination, 13

management and, 76–77

Masco Corporation example, 16–22, 32–35

metrics (data) over intuition and, 66, 85–86, 95–97, 103, 142–43

mystery inherent in, 109–10

new perception of, 1, 2

Nussbaum’s “fragile integrity” and, 139

old view of: as long-run, sustainable competitive advantage, 47, 111, 129, 130

as organic, 4, 130

origins of word, 10

passion and, 103, 135

picking a winning playing field, 31 (see also industry forces)

Porter’s innovations, 2

Porter’s three generic, 154–55

positioning and, 47

purpose, clarity needed in, 4, 78, 103

purpose, reinventing and changing the company, 4, 64–66

purpose, starting with statement of, 83–88

recommended reading, 160–61

role of scarcity, 74, 133

serving an unmet need and, 47, 49

statement of, 97–102

stay the course or move away, 4, 131

Strategy and Added Value chart, 53, 168n 16

strategy wheel: Brighton Collectibles, 92

strategy wheel: Gucci, 73

SWOT model, 2, 152, 152

team support for, 141–43, 156, 157

as traditionally taught, 1–2

value creation and, 4, 49, 72–77, 73, 78, 88–91, 103, 130, 139, 155

as way of life, 144, 174n 18

World War I generals, 33

writing down, 81, 109 (see also strategy statement; strategy wheel)

strategy statement, 97–102

articulation of company’s purpose and, 99

Doctors Without Borders, 98–99

Economist magazine, 98

Four Seasons Resorts, 97–98, 99

Lance! Sports Group, 101–2

mistakes in creating, 105

as public document, 157–58

qualities of, 100–101, 101

strategy wheel, 92–93

Brighton Collectibles, 92

format, 91

Gucci, 73

implementing purpose and, 74

Ink for Less, 93–94, 106

as internal company document only, 158

Lance! Sports Group, 96, 107

purpose at center, 73

reality check for, 95–97

unique to specific business, 92

“Style Wars” (Time), 69

“Summer Day, The” (Oliver), 147

super-manager myth, 23–24, 29–30, 36

Apple and, 116–19

economic forces and, 27, 30–31

Masco Corporation and, 23–24, 33–38

Mengel Company and, 24–25

military equivalent, 33

why it lives on, 31–32

Stuart, H.W., 168n 16

suppliers

Apple and, 121

availability of substitute products, 28

computers, two suppliers dominate, 120

“does your business matter” question and, 56

furniture industry, 29

Gucci and, 67–68, 71, 73, 75

IKEA and, 42–43, 55

Ink for Less and, 94

Porter on, 27

power of, analyzing, 28

Strategy and Added Value chart, 53, 53

willingness to supply and value creation, 54, 54, 55

Swanson, Rick, 69

Swedberg, Richard, 135, 136, 173n 3, , 1615

SWOT (Strengths, Weaknesses, Opportunities, and Threats) model, 2, 152, 152

T

Taylor, H. Kerr, 85–87, 104, 140, 143

teams

AmREIT and implementing management strategies, 86, 143

analyzing industry and, 153

Gucci, rallying team to support purpose, 66, 142–43

on board with leader’s strategy, 62, 141–43

developing strategy and, 81, 156, 157

Theseus’s boat story, 127, 130, 139–40

Tilles, Seymour, 136–37

tobacco industry

average profitability of, 26

firm effect, 47

How Firms Differ: Firm Effects in Four Different Industries, 48

Tognazzini, Bruce, 115

Torekull, Bertil, 40

Toyota, 110

Twain, Mark, 100

U

United Paint and Chemical, 82–83

V

Valentine, Don, 111

value creation, 4, 49, 52–55

BMW and, 55

Brighton Collectibles and, 91, 92

De Sole and Gucci, 58

developing a system of, 88–91

Disney, 55

Gucci’s strategy and, 72–77, 73

how to do it, 55

IKEA and, 52, 55

Ink for Less and, 93–95

intangibles and, 75

as priority for a business, 155–56

purpose and linkage with, 96

“the secret sauce,” 90

Strategy and Added Value chart, 53, 168n 16

strategy and, 4, 49, 72–77, 73, 78, 88–91, 103, 130, 139, 155

strategy wheel and, 91, 91–93

unique to specific business, 92

Value Creation: Expanding the Pie, 54

Wal-Mart, 54

vision statement, 153

IKEA, 51–52

W

Wal-Mart, 74

value creation and, 54

Walton, Sam, 54

Welch, Jack, 30, 31, 36

Wilde, Oscar, 109

World War I, 33

Wozniak, Steve, 111, 112, 121–22

Y

Yoffie, David, vi, 168n 1, 3; 169n 10,12,18, 19, 34; 170–71n 1; 171n 22

Young, Laura, 88, 138

Z

Zen story (openness to new ideas), 134