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UNCORRECTED PROOF | NOT FOR SALE Please do not quote for publication without checking against the final book On-sale: July 19, 2011 Publicity Contact: Dennelle Catlett, 212-782-9486 [email protected]
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THE DIFFERENCE AND WHY IT MATTERS Richard P. Rumelt GOOD STRATEGY BAD STRATEGY Rume_9780307886231_2p_all_r1.indd v 3/17/11 11:46 AM
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Copyright © 2011 by Richard Rumelt All rights reserved. Published in the United States by Crown Business, an imprint of the Crown Publishing Group, a division of Random House, Inc., New York. CROWN BUSINESS is a trademark and CROWN and the Rising Sun colophon are registered trademarks of Random House, Inc. Crown Business books are available at special discounts for bulk purchases for sales promotions or corporate use. Special editions, including personalized covers, excerpts of existing books, or books with corporate logos, can be created in large quantities for special needs. For more information, contact Premium Sales at (212) 572-2232 or e-mail [email protected] Library of Congress Cataloging-in-Publication Data is available upon request. ISBN 978-0-307-88623-1 eISBN 978-0-307-88625-5 Printed in the United States of America Book design by Robert Bull Jacket design: TK Author photograph: TK 10 9 8 7 6 5 4 3 2 1 First Edition Rume_9780307886231_2p_all_r1.indd vi 3/17/11 11:46 AM
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CONTENTS INTRODUCTION OVERWHELMING OBSTACLES 1 PART I GOOD AND BAD STRATEGY 9 CHAPTER 1 GOOD STRATEGY IS UNEXPECTED 11 How Steve Jobs saved Apple • Business 101 is surprising • General Schwarzkopf’s strategy in Desert Storm • Why Plan A remains a surprise CHAPTER 2 DISCOVERING POWER 21 David and Goliath is a basic strategy story • Discovering Wal-Mart’s secret • Marshall and Roche’s strategy for competing with the Soviet Union CHAPTER 3 BAD STRATEGY 32 Is U.S. national security strategy just slogans? • How to recognize fluff • Why not facing the problem creates bad strategy • Chad Logan’s 20/20 plan mistakes goals for strategy • What’s wrong with a dog’s dinner of objectives? • How blue-sky objectives miss the mark CHAPTER 4 WHY SO MUCH BAD STRATEGY? 58 Strategy involves choice, and DEC’s managers can’t choose • The path from charisma to transformational leadership to fill-in-the-blanks template-style strategy • New Thought from Emerson to today and how it makes strategy seem superfluous CHAPTER 5 THE KERNEL OF GOOD STRATEGY 77 The mixture of argument and action lying behind any good strategy • Diagnosing Starbucks, K–12 schools, the Soviet challenge, and IBM • Guiding policies at Wells Fargo, IBM, and Stephanie’s market • The president of the European Business Group hesitates to act • Incoherent action at Ford • Centralization, decentralization, and Roosevelt’s strategy in WWII Rume_9780307886231_2p_all_r1.indd ix 3/22/11 3:06 PM
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x CONTENTS PART II SOURCES OF POWER 95 CHAPTER 6 USING LEVERAGE 97 Anticipation by Toyota and insurgents in Iraq • How Pierre Wack anticipated the oil crisis and oil prices • Pivot points at 7-Eleven and the
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  • Fall '16
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  • The Land, good strategy, Richard P. Rumelt

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