Download the full version of the ebook now at ebooksecure.

com

(eBook PDF) Competing for Advantage 3rd

Edition

https://ebooksecure.com/product/ebook-pdf-
competing-for-advantage-3rd-edition/

Explore and download more ebook at https://ebooksecure.com

 Recommended digital products (PDF, EPUB, MOBI) that
you can download immediately if you are interested.

(eBook PDF) Management Strategy: Achieving Sustained

Competitive Advantage 3rd Edition

https://ebooksecure.com/product/ebook-pdf-management-strategy-
achieving-sustained-competitive-advantage-3rd-edition/

ebooksecure.com

(eBook PDF) Competing Values Leadership: Second Edition

https://ebooksecure.com/product/ebook-pdf-competing-values-leadership-
second-edition/

ebooksecure.com

Progress in Heterocyclic Chemistry Volume 29 1st Edition -

eBook PDF

https://ebooksecure.com/download/progress-in-heterocyclic-chemistry-
ebook-pdf/

ebooksecure.com

(eBook PDF) Criminology The Core 6th Edition

https://ebooksecure.com/product/ebook-pdf-criminology-the-core-6th-
edition/

ebooksecure.com
Schaum's Outline Of Signals And Systems - eBook PDF

https://ebooksecure.com/download/schaums-outline-of-signals-and-
systems-ebook-pdf/

ebooksecure.com

Materials for Biomedical Engineering: Inorganic Micro- and

Nanostructures 1sr Edition- eBook PDF

https://ebooksecure.com/download/materials-for-biomedical-engineering-
inorganic-micro-and-nanostructures-ebook-pdf-2/

ebooksecure.com

Compensation 11th Edition (eBook PDF)

https://ebooksecure.com/product/compensation-11th-edition-ebook-pdf/

ebooksecure.com

(eBook PDF) Human Anatomy & Physiology Laboratory Manual A

Hands-on Approach, Main Version

https://ebooksecure.com/product/ebook-pdf-human-anatomy-physiology-
laboratory-manual-a-hands-on-approach-main-version/

ebooksecure.com

(eBook PDF) Fit & Well: Core Concepts and Labs in Physical
Fitness and Wellness - Alternate Edition 13th Edition

https://ebooksecure.com/product/ebook-pdf-fit-well-core-concepts-and-
labs-in-physical-fitness-and-wellness-alternate-edition-13th-edition/

ebooksecure.com
(eBook PDF) Psychology 8th Edition by Saundra Hockenbury

https://ebooksecure.com/product/ebook-pdf-psychology-8th-edition-by-
saundra-hockenbury/

ebooksecure.com
(South-Western Cengage Learning, 2012), 3rd edition. His work has been published
in a range of journals, including Academy of Management Review, Academy of
Management Journal, Administrative Science Quarterly, Strategic Management
Journal, Academy of Management Executive, Journal of Management, Journal
of Management Studies, Decision Sciences, Human Relations, Strategic Entrepreneur-
ship Journal, British Journal of Management, Journal of Business Venturing, and
Entrepreneurship: Theory & Practice. Working with colleagues, he has served as
a guest editor for special issues of Academy of Management Review, Academy of
Management Executive, Strategic Management Journal, Journal of Business Ventur-
ing, Organizational Research Methods, and Journal of Engineering and Technology
Management. He has also served in various editorial capacities including terms as a
member of the editorial review boards for Academy of Management Review, Academy
of Management Journal, Academy of Management Executive, Journal of Manage-
ment, Journal of Business Venturing, and Entrepreneurship: Theory & Practice.
He recently completed a term as editor of the Academy of Management Journal.
Currently, he is the vice president of the Academy of Management.
He received the 1999 award for Outstanding Intellectual Contribution to
Competitiveness Research from the American Society for Competitiveness. He is a
Fellow of the Academy of Management and a Fellow of the Strategic Management
Society. Two of his papers received Best Paper awards from Academy of Management
Journal (2000) and Academy of Management Executive (1999).

JEFFREY S. HARRISON
Jeffrey S. Harrison is the W. David Robbins Chair of Strategic Management in the
Robins School of Business at the University of Richmond. Prior to his current
appointment, he served as the Fred G. Peelen Professor of Global Hospitality Strategy
at Cornell University. He now serves or has served on the editorial review boards
of Strategic Management Journal, Academy of Management Journal, and Academy
of Management Executive.
Dr. Harrison’s research interests include strategic management and business
ethics, with particular expertise in the areas of mergers and acquisitions, diversifica-
tion, strategic alliances, and stakeholder management. Much of his work has been
published in prestigious academic journals such as Academy of Management
Journal, Strategic Management Journal, and Journal of Business Ethics. He has
authored or co-authored numerous books, including Foundations of Strategic
Management, (South-Western Cengage Learning, 2014) 6th edition, Strategic
Management of Organizations and Stakeholders, (Wiley, 2003), Stakeholder Theory:
The State of the Art, (Cambridge University Press, 2010), and Mergers and Acquisi-
tions: A Guide to Creating Value for Stakeholders, (Oxford University Press, 2001).
Dr. Harrison helped organize the Stakeholder Strategy Interest Group at the
Strategic Management Society and has served in a variety of leadership roles in that
group. He has also provided consulting and executive training services to many
companies on a wide range of strategic, entrepreneurial, and other business issues.

vi ABOUT THE AUTHORS

Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
 BRIEF CONTENTS

PART 1 STRATEGIC THINKING 1

1 Introduction to Strategic Management 2
2 Strategic Leadership 34

PART 2 STRATEGIC ANALYSIS 71

3 The External Environment: Opportunities, Threats, Industry
Competition, and Competitor Analysis 72
4 The Internal Organization: Resources, Capabilities, and
Core Competencies 106

PART 3 CREATING COMPETITIVE ADVANTAGE 141

5 Business-Level Strategy 142
6 Competitive Rivalry and Competitive Dynamics 172
7 Cooperative Strategy 200
8 Corporate-Level Strategy 225
9 Acquisition and Restructuring Strategies 257
10 International Strategy 284

PART 4 MONITORING AND CREATING

ENTREPRENEURIAL OPPORTUNITIES 319
11 Corporate Governance 320
12 Strategic Entrepreneurship 351
13 Strategic Flexibility and Real Options Analysis 372

Glossary 405
Name Index 413
Company Index 440
Subject Index 443

vii
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
 Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
 CONTENTS

Preface xvii

Part 1: Strategic Thinking 1

CHAPTER 1: INTRODUCTION TO STRATEGIC MANAGEMENT 2
The Competitive Landscape 3
Globalization of Markets and Industries 4
Economic Volatility 5
Technological Advances 6
Coping with Hypercompetitive Influences 7
The Emergence of Strategic Management as a Business Discipline 8
Early Influences on the Strategy Concept 9
Modern Strategic Management 10
Three Perspectives on Value Creation 11
The I/O Model of Above-Average Returns 11
The Resource-Based Model of Above-Average Returns 14
The Stakeholder Model of Responsible Firm Behavior and Firm Performance 17
Strategic Thinking and the Strategic Management Process 20
Strategic Thinking 21
The Strategic Management Process 22
Summary 24
Ethics Questions 25

CHAPTER 2: STRATEGIC LEADERSHIP 34

Strategic Leaders as a Key Resource through Their Influences on
Strategic Decisions 35
Strategic Leadership Style 36
Managerial Discretion and Decision Biases 37
Top Management Teams 40
Top Management Team Heterogeneity 40
The CEO and Top Management Team Power 42
Executive Succession Processes 44
Key Strategic Leadership Responsibilities and Actions 46
Ensure that the Firm Is Well Positioned Economically 48
Acquire, Develop, and Manage Key Resources 50
Develop and Manage Relationships with External Stakeholders 53

ix
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
 Determine and Communicate Strategic Direction 54
Oversee Formulation and Implementation of Specific Strategies 57
Establish Balanced Controls 58
Summary 60
Ethics Questions 62

Part 2: Strategic Analysis 71

CHAPTER 3: THE EXTERNAL ENVIRONMENT: OPPORTUNITIES, THREATS,
INDUSTRY COMPETITION, AND COMPETITOR ANALYSIS 72
The General, Industry, and Competitor Environments 73
External Environmental Analysis 74
Scanning 76
Monitoring 77
Forecasting 77
Assessing 77
Segments of the General Environment 78
The Demographic Segment 78
The Economic Segment 80
The Political/Legal Segment 81
The Sociocultural Segment 82
The Technological Segment 83
The Global Segment 84
The Physical Environment Segment 86
Industry Environment Analysis 86
Threat of New Entrants 88
Bargaining Power of Suppliers 91
Bargaining Power of Buyers 92
Threat of Substitute Products 92
Intensity of Rivalry among Competitors 93
Complementors 95
Interpreting Industry Analyses 95
Analysis of Direct Competitors 96
Strategic Groups 96
Understanding Competitors and Their Intentions 97
Summary 99
Ethics Questions 100

CHAPTER 4: THE INTERNAL ORGANIZATION: RESOURCES,

CAPABILITIES, AND CORE COMPETENCIES 106
Internal Analysis and Value Creation 108
Conditions Influencing Internal Analysis 108
Creating Value 110

x CONTENTS
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
 Resources, Capabilities, and Core Competencies 112
Resources 112
Capabilities 115
Core Competencies 116
Building Core Competencies 118
Four Criteria of Sustainable Competitive Advantage 118
Value Chain Analysis 121
Outsourcing 125
When Core Competencies Lose Their Value 126
Firm Performance 126
Stakeholder Objectives and Power 127
Measures of Firm Performance 128
Balancing Stakeholder Performance 131
Sustainable Development 131
Summary 133
Ethics Questions 134

Part 3: Creating Competitive Advantage 141

CHAPTER 5: BUSINESS-LEVEL STRATEGY 142
Economic Logic and Business-Level Strategy 143
Types of Business-Level Strategy 144
Serving Customers 145
Strategy and Structure 148
Cost Leadership Strategy 149
Successful Execution of the Cost Leadership Strategy 149
Using the Functional Structure to Implement the Cost Leadership Strategy 152
Competitive Risks of the Cost Leadership Strategy 154
Differentiation Strategy 154
Successful Execution of the Differentiation Strategy 155
Using the Functional Structure to Implement the Differentiation Strategy 157
Competitive Risks of the Differentiation Strategy 159
Focus Strategies 159
Focused Cost Leadership Strategy 160
Focused Differentiation Strategy 160
Using the Simple or Functional Structures to Implement Focus Strategies 161
Competitive Risks of Focus Strategies 161
Integrated Cost Leadership/Differentiation Strategy 162
Successful Execution of the Integrated Cost Leadership/Differentiation Strategy 162
Using a Flexible Structure to Implement the Integrated Cost Leadership/Differentiation
Strategy 163
Competitive Risks of the Integrated Cost Leadership/Differentiation Strategy 165

CONTENTS xi
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
Summary 166
Ethics Questions 168

CHAPTER 6: COMPETITIVE RIVALRY AND COMPETITIVE DYNAMICS 172

A Model of Competitive Rivalry 175
Competitor Analysis 176
Market Commonality 176
Resource Similarity 177
Drivers of Competitive Actions and Responses 179
Competitive Rivalry 180
Strategic and Tactical Actions 181
Likelihood of Attack 181
First-Mover Incentives 182
Organizational Size 183
Quality 184
Likelihood of Response 185
Type of Competitive Action 186
Actor’s Reputation 186
Dependence on the Market 187
Competitive Dynamics 188
Slow-Cycle Markets 188
Fast-Cycle Markets 190
Standard-Cycle Markets 192
Summary 193
Ethics Questions 195

CHAPTER 7: COOPERATIVE STRATEGY 200

The Importance of Cooperative Strategy 201
Strategic Alliances in Slow-Cycle Markets 203
Strategic Alliances in Fast-Cycle Markets 203
Strategic Alliances in Standard-Cycle Markets 204
Types of Alliances and Other Cooperative Strategies 204
Cooperative Strategies that Enhance Differentiation or Reduce Costs 205
Complementary Strategic Alliances 206
Network Cooperative Strategies 207
Cooperative Strategies that Address Forces in the External Environment 209
Competitive Response Alliances 209
Uncertainty-Reducing Alliances 209
Competition-Reducing Cooperative Strategies 209
Associations and Consortia 210
Cooperative Strategies that Promote Growth and/or Diversification 211
Diversifying Strategic Alliances 212
Franchising 212
International Cooperative Strategies 212

xii CONTENTS
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
 Competitive Risks of Cooperative Strategies 214
Implementing and Managing Cooperative Strategies 216
Summary 218
Ethics Questions 219

CHAPTER 8: CORPORATE-LEVEL STRATEGY 225

Levels of Diversification 226
Low Levels of Diversification 226
Moderate and High Levels of Diversification 227
Reasons for Diversification 229
Diversification and the Multidivisional Structure 231
Related Diversification 232
Operational Relatedness: Sharing Activities 233
Using the Cooperative Form of the Multidivisional Structure to Implement the Related
Constrained Strategy 233
Corporate Relatedness: Transferring of Core Competencies 235
Using the Strategic Business-Unit Form of the Multidivisional Structure to Implement the
Related Linked Strategy 235
Market Power through Multipoint Competition and Vertical Integration 237
Simultaneous Operational Relatedness and Corporate Relatedness 238
Unrelated Diversification 239
Efficient Internal Capital Market Allocation 240
Restructuring 241
Using the Competitive Form of the Multidivisional Structure to Implement the Unrelated
Diversification Strategy 242
Value-Neutral Diversification: Incentives and Resources 243
Incentives to Diversify 243
Resources and Diversification 246
Value-Reducing Diversification: Managerial Motives to Diversify 246
Summary 248
Ethics Questions 250

CHAPTER 9: ACQUISITION AND RESTRUCTURING STRATEGIES 257

The Popularity of Merger and Acquisition Strategies 258
Mergers, Acquisitions, and Takeovers: What Are the Differences? 259
Reasons for Acquisitions 260
Increase Market Power 260
Overcome Entry Barriers 262
Reduce Costs and Risks Associated with New Product Development 262
Increase Speed to Market 263
Increase Diversification and Reshape the Firm’s Competitive Scope 263
Learn and Develop New Capabilities 264

CONTENTS xiii
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
Problems in Achieving Acquisition Success 265
Integration Difficulties and an Inability to Achieve Synergy 266
Inadequate Evaluation of Target 267
Large or Extraordinary Debt 267
Too Much Diversification 268
Managers Too Focused on Acquisitions 269
Firm Becomes Too Large 269
Effective Acquisitions 270
Restructuring 272
Downsizing 272
Downscoping 273
Leveraged Buyouts 274
Outcomes from Restructuring 275
Summary 276
Ethics Questions 277

CHAPTER 10: INTERNATIONAL STRATEGY 284

Incentives for Using an International Strategy 286
Increased Market Size 286
Return on Investment 287
Economies of Scale, Scope, and Learning 287
Obtain Resources and Achieve Other Location Advantages 288
International Corporate-Level Strategy 289
International Scope: Worldwide Presence or Regionalization 289
Multidomestic Strategy 292
Global Strategy 293
Transnational Strategy 295
International Business-Level Strategy 296
Choice of International Entry Mode 299
Exporting 299
Licensing 301
Strategic Alliances 302
Acquisitions 303
New Wholly-Owned Subsidiary 303
Dynamics of Mode of Entry 304
Strategic Competitiveness Outcomes 305
International Diversification and Returns 305
International Diversification and Innovation 306
Risks in an International Environment 307
Complexity of Managing Multinational Firms 309
Summary 310
Ethics Questions 312

xiv CONTENTS
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
Visit https://testbankfan.com
now to explore a rich
collection of testbank or
solution manual and enjoy
exciting offers!
 Part 4: Monitoring and Creating Entrepreneurial
Opportunities 319
CHAPTER 11: CORPORATE GOVERNANCE 320
Separation of Ownership and Managerial Control 323
Agency Relationships 324
Product Diversification as an Example of an Agency Problem 325
Agency Costs and Governance Mechanisms 326
Ownership Concentration 328
Influence of Institutional Owners 329
Board of Directors 330
Board Effectiveness 332
Executive Compensation 333
The Effectiveness of Executive Compensation 334
Market for Corporate Control 335
Managerial Defense Tactics 337
International Corporate Governance 338
Corporate Governance in Germany 339
Corporate Governance in Japan 340
Global Corporate Governance 341
Governance Mechanisms, Stakeholder Management, and Ethical Behavior 341
Summary 342
Ethics Questions 344

CHAPTER 12: STRATEGIC ENTREPRENEURSHIP 351

Strategic Entrepreneurship and Innovation 352
Innovation 353
Entrepreneurs 354
International Entrepreneurship 355
Internal Innovation 357
Incremental Innovations 357
Radical Innovations 357
Implementing Internal Innovation 359
Cross-Functional Product Development Teams 360
Facilitating Integration and Implementation 361
Creating Value from Internal Innovation 361
Innovation through Cooperative Strategies 362
Innovation through Acquisitions 363
Creating Value through Strategic Entrepreneurship 364
Summary 365
Ethics Questions 366

CONTENTS xv
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
CHAPTER 13: STRATEGIC FLEXIBILITY AND REAL OPTIONS ANALYSIS 372
Real Options Analysis 374
Types of Real Options 375
Purpose and Importance of Real Options Analysis 377
Value Drivers for Real Options 383
Valuation of Real Options 386
Implementation Requirements of Real Options 386
Summary 387
Ethics Questions 389
Appendix: Detailed Valuation Guidelines 389

Glossary 405
Name Index 413
Company Index 440
Subject Index 443

xvi CONTENTS
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
 PREFACE

UPDATES AND HIGHLIGHTS FOUND IN THE THIRD EDITION

Our goal in developing the Third Edition of Competing for Advantage was to
present an up-to-date explanation of the strategic management process. In doing
so, we maintained the highest standards of intellectual integrity while simulta-
neously providing thoughtful practical examples of the conceptual points we
sought to illustrate. We also sought to present our material in a readable style. To
accomplish these objectives, we read the most recent academic research to insure
that our content is highly current and relevant to the organizations that are rele-
vant to our MBA and EMBA student audiences. Furthermore, we continuously
read articles in the best practitioner publications (e.g., Wall Street Journal, Bloomberg
BusinessWeek, Fortune, Financial Times, Forbes, and many others). After identifying
interesting examples that effectively illustrated the conceptual ideas on which we
focused, we related them to particular concepts so that students can see how they are
applied in practice. Although the examples are usually brief, students have found them
useful, not only to illustrate the conceptual application but also to facilitate efforts to
identify and solve organizational problems.
So, both the concepts and the examples included in this third edition are
current. We updated all the examples from the second edition and inserted many
new examples, including a focus on services, healthcare, technology and innovation,
crisis management, corporate social responsibility, and green strategies. For instance,
in Chapter 1, there are several examples of crisis management: one concerning the
Japanese earthquake and its supply change implications and one dealing with the
recession and the firm crises associated with it. We use, for instance, Caterpillar’s
successful anticipation and planning for the volatility associated with the recession.
Chapter 2 focuses on strategic leadership; herein, we provide new examples of stra-
tegic change by Steve Ballmer as Microsoft’s CEO and the recent selection of a
female CEO at IBM, Virginia Rometty. We also discuss the Internet hacking scandal
associated with the tabloid newspaper in Rupert Murdoch’s media empire, News
Corp. In Chapter 3, focused on external environmental analysis, we added a new
section on the physical environment, discussing the importance of climate change
issues and the use of green strategies to deal with these issues. In Chapter 4, on inter-
nal analysis, we introduce situations surrounding Kodak’s bankruptcy, Nike’s core
competencies, and how Twitter, as a new competitor, offers another way to cre-
ate value in media firms. We also explain that many firms are using sustainability
as part of their strategies and are establishing sustainability as an organizational
competency. Example firms include McDonald’s, Burger King, Chipotle Mexican
Grill, and Walmart.
In Chapter 5, on business-level strategy, we added content on the use of out-
sourcing for the reduction of costs in the discussion of the cost leadership strategy.

xvii
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
We also added a number of current examples in this chapter such as Amazon.com’s
introduction of the Kindle Fire to lead the market in e-book readers and to com-
pete with Apple’s iPad. We discuss the success of Ryanair’s cost leadership strategy
exemplified by its 10 percent increase in passengers to 72 million during the
economic recession in 2010. And we also used examples of major Asian companies
such as the Li Ning Company, the largest sporting goods manufacturer in China.
Chapter 6, focused on competitive dynamics, was updated with a number of
examples. For instance, the chapter discusses how FedEx and UPS compete across
several product markets, including package delivery by both land and air and the
increasing e-commerce segment. Johnson & Johnson’s recent competitive problems
associated with product quality are discussed. Innovation is an important tool
for remaining competitive; Cooper Tire is highly dependent on the replacement tire
market, and the chapter discusses how it relies on continuous innovation to remain
competitive.
A number of global examples are included in this edition as well. For instance,
Chapter 7, on cooperative strategy, contains an interesting new example of Ericson,
a global network management company with more than two hundred and fifty
million customers worldwide. This chapter also describes instances of firms joining
associations and consortia to deal with the green movement and sustainability
issues. Chapter 8 deals with corporate strategy. In this chapter, we add a number
of service industry examples along with the traditional manufacturing industry
cases. There are examples from Medifast and Catholic Health Initiatives as well as
the hospitality and real estate brokerages as diversified service firms. This chapter
also presents an example in the solar industry, which represents a continuing focus
on green strategies and sustainability. In Chapter 9, on acquisition strategy, we
added examples such as one dealing with Google’s acquisition of Motorola Mobility.
In addition, we include instances of large emerging economy firms pursuing devel-
oped economy acquisitions such as JBS, a Brazilian meat producer, making a
number of acquisitions in the United States. We also discuss Bristol-Myers
Squibb’s acquisition of hepatitis C drug producer Inhibitex.
Chapter 10, focused on international strategy, contains many new examples
and a significant updating of the literature. There are important discussions of
firms in many different countries including China, Mexico, India, and Russia. One
section includes an interesting discussion on an annual corruption index suggesting
the institutional risks companies face when entering foreign countries.
Chapter 11’s consideration of corporate governance introduces a number of
updates including information on recent regulations regarding proxy voting “say
on pay,” where large institutional investors have a vote on executive compensation
packages and can nominate board members for a proxy vote who support their
positions. We also provide updates on the Dodd-Frank regulation of the financial
industry which pertains to corporate governance. Ethical issues in corporate gover-
nance are examined, including the scandal associated with News Corp. mentioned
earlier, and how the executive leaders can improve organizational culture by the
way they govern the firm.
In Chapter 12 on strategic entrepreneurship, we include a discussion on Tim
Cook, Apple’s new CEO, and how he intends to maintain the strong culture com-
mitted to innovation that Steve Jobs created. Finally, in Chapter 13, we have

xviii PREFACE
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
 updated the real options literature and provided associated examples that apply
this important decision-making tool.
We think that students will find the updates very useful conceptually. In addition,
the many application-oriented examples appearing throughout this third edition of
Competing for Advantage should prove instructive.

PURPOSE AND ORGANIZATION OF THE BOOK

The purpose of this book is to provide a comprehensive yet concise description of
the core concepts of strategic management that firms need to use to meet the chal-
lenge of competing in the current fast-paced and globally competitive environment.
Written to meet the educational needs of full-time and part-time MBA students as
well as those pursuing an Executive MBA degree, this book will also serve the prac-
ticing manager, consultant, or corporate trainer whose firms or clients are faced
with global economic challenges in achieving competitive advantage over their
rivals. CEOs, line managers, and especially executives charged with developing
and implementing strategic initiatives will find much to challenge their thinking
and put to prescriptive use while reading and studying this book.
Our examination of strategic management is distinctive in several important
ways. The book contains a detailed treatment of multiple perspectives, including
traditional industrial organization economics, the resource-based view, and the
stakeholder perspective. These three perspectives form the foundation upon which
other important ideas and tools for developing and effectively implementing strate-
gies are built. The net effect is an integrated approach that demonstrates how firms
can be ethical and efficient simultaneously, socially responsible and profitable,
responsive to multiple stakeholders, and capable of sustaining high financial perfor-
mance over the long term.
Another distinguishing feature of this book is that strategies and methods for
implementing them are treated within the same chapters. For example, the organi-
zational structures required for implementing each of the business-level strategies
are discussed in Chapter 5 on business strategies. This is also done for chapters
on cooperative strategies (Chapter 7), corporate-level strategies (Chapter 9), and
international strategies (Chapter 10). This approach provides students with a more
complete understanding of the organizational implications of selecting a particular
strategy. We also describe patterns of competitive rivalry and competitive dynamics,
because these phenomena occur as firms implement business strategies to compete in
their chosen markets. The chapter in which these important topics are considered dis-
cusses concisely yet thoroughly the competitive dynamics in slow-cycle, fast-cycle,
and standard-cycle markets.
To ensure that our descriptions of the core concepts of strategic management
are accurate and up-to-date, we draw extensively from both current and classic
academic research, using as guides the literature in economics, finance, marketing,
business ethics, entrepreneurship, and social psychology in addition to strategic
management. Also, to fulfill our purpose of providing contemporary insights and
analysis, we use numerous current examples from the business press to illustrate
how companies use the concepts presented here to achieve multiple goals and

PREFACE xix
Copyright 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the
eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional
content at any time if subsequent rights restrictions require it.
Exploring the Variety of Random
Documents with Different Content
Israelites bitten by the fiery serpents by the sight of the brazen
image, and he cured Naaman’s leprosy by bathing in the waters of
Jordan. Whatever then be the means which He prescribes, our
highest wisdom is to make use of them. But as he has not prescribed
the means recommended by the Talmud, but forbidden them in his
general prohibition of magic, we must say that the man who uses
them has bid adieu to all true wisdom. No wonder, then, if his own
inventions are stamped with folly. But what will our readers think of
the cause of the canine madness here assigned? “Rav says, It
proceeds from the witches who are making their sport with him.
Samuel says, It is an evil spirit that rests upon him.” Rav believed,
then, that God, whose mercies are over all his works, allows wicked
women to torment his creatures, and to inflict upon them a dreadful
malady to make sport for themselves. Is this wise, is it according to
Scripture? This is the doctrine of the oral law; and if Jesus of
Nazareth had not protested against it, and taught a true doctrine by
asserting the truth of Scripture, this would be the universal doctrine
and practice of the Jews. Whoever believes the Talmud, must
believe in this and all the other follies which it contains. Whoever
rejects these things, confesses that the Talmud contains what is
false and foolish, and thereby shakes or rather overthrows its
authority. Some person will perhaps say that similar superstitions
and follies have been found amongst Christians. We grant that this
has been the case wherever Christians have departed from the
written Word of God, but can anything similar be found in the New
Testament? That book is our standard of Christianity. As you say that
the oral law is of divine authority, we say that the New Testament is
of divine authority. We point out to you these follies, not in individual
Jews, but in your book of authority. If you would make out a parallel
case, you must do the same. But you cannot. The New Testament
has nothing of the kind; and it is for you to explain how this happens
that the New Testament, which you believe to be false, is entirely
free from every thing of the kind.
Further, we ask every right-minded Israelite, whether he is not
shocked at that profanation of the reverend and holy names of God
which is here not only countenanced but prescribed. What can a
devout Jew think either of the man or the book that tells us to write
the names,
‫יה יה יהוה צבאות ׃‬
“Jah, Jah, the Lord of Hosts,” by the side of such nonsense as Kanti,
Kanti, Klurus? Would he say that this is consistent with true religion?
And yet this profane use of the name of God for magical purposes, is
not rare in the Talmud. The following is another instance:—
‫ האי גלא דמטבע לספינה מיתחזי כי צוציתא‬, ‫אמר רבה אשתעו לי נחותי ימא‬
‫דנורא חיוורתא ברישא ומחינן ליה באלוותא דחקיק עליה אהיה אשר אהיה יה ה׳‬
‫צבאות אמן אמן סלה ונייח אמר רבה אשתעו לי נחותי ימא בין גלא לגלא תלת‬
‫מאה פרסי זמנא חדא הוה אזלינן באורחא ודלינן גלא עד דחזינן בי מרבעתא‬
‫ ואי דלינן טפי מקלינן‬, ‫דכוכבא זוטא והויא בי מבזר ארבעין גריוי בזרא דחרדלא‬
‫ ורמי ליה גלא קלא לחברתה חברתי שבקת מידי בעלמא דלא שטפתיה‬, ‫מהבלי‬
‫דניתי אנא ונאבדיה א׳׳ל הזי גבורתא דמריך מלא חוטא חלא ולא עברי שנאמר‬
‫האותי לא תיראו נאום ה׳ אם מפני לא תחילו אשר שמתי חול גבול לים חק עולם‬
‫ולא יעברנהו ׃‬
“Rabbah says, They that go down to the sea have told me, that when
a wave is going to overwhelm a ship, sparks of white light are seen
on its head. But if we strike it with a staff on which are graved the
words, ‘I am that I am, Jah, Lord of Hosts, Amen, Amen, Selah,’ it
subsides. They that go down to the sea have told me, that the
distance between one wave and another, is three hundred miles. It
happened once that we were making a voyage, and we raised a
wave until we saw the resting-place of the least of all the stars. It
was large enough to sow forty bushels of mustard seed, and if we
had raised it more we should have been burned by the vapour of the
star. One wave raised its voice and called to its companion, O,
companion, hast thou left anything in the world that thou hast not
overflowed? Come, and let us destroy it. It replied, Come and see
the power of thy Lord. I could not overpass the sand even a hair’s-
breadth, for it is written, ‘Fear ye not me? saith the Lord: will ye not
tremble at my presence, which have placed the sand for the bound
of the sea, by a perpetual decree that it cannot pass it?’ (Jer. v. 22.)”
(Bava Bathra, fol. 73, col. 1.) Here is the same profanation of the
peculiar and holy names of God: it is to be engraved on a staff either
to lay or to raise the waves. But besides the profanity, just consider
the folly of this whole story. In the first place, it ascribes to men, no
matter whether they are good or wicked, absolute power over the
waves of the sea. Anybody can engrave those names of God upon a
staff, anybody can use the staff to strike the sea, and thus a wicked
man, without either faith, fear, or love of God, may make and use an
instrument which almost invests him with omnipotence. Is it possible
that any son of Israel can be so credulous as to believe such
manifest absurdity? But this story reminds us again of the utter
disregard of truth which characterises the Talmud. Here we are told
that, by power of this magic staff, a wave was raised so high as to
enable those travellers to see the resting-place of the smallest of all
the stars, and that so distinctly, too, as to be able to make a good
guess at its measure. The slightest knowledge of modern astronomy
is sufficient to show not only the improbability, but the utter
impossibility of anything of the kind. The least of the stars visible to
the naked eye is at an almost immeasurable distance from the earth,
so as to make it perfectly ludicrous to talk of a wave being raised to
such a height. All the water on the face of the globe would be far
from sufficient for the formation of one such wave. But the Talmud
intimates that they had the power of raising it still higher, and were
prevented only by the fear of being scorched. But the Talmud is not
satisfied with these wonders, it goes on to describe a conversation
between two waves. The commentator, who evidently believed every
word of the story, suggest that this conversation was carried on by
the angels presiding over the waves.
‫ ושמא מלאכים‬, ‫ורמי ליה גלא נתן קולו כלומר צעק כדוגמא תהום אל תהום קורא‬
‫הממונים עליהם הם ׃‬
“The wave lifted up his voice, that is, it cried, and so we find, ‘Deep
calleth unto deep.’ And perhaps this means the angels who were set
over them.” The commentator, it appears, had no doubt of the truth
of the story, and how should he have, if he believed in the Divine
authority of the Talmud? But we ask our readers do they believe this
story—and if they do not, why not? Because it is too absurd, and too
far beyond the bounds of possibility. Can, then, a book that swarms
with similar accounts be from God? By what means did all these
things about magic, astrology, amulets, magical cures, and staves,
get into the Talmud? No doubt they were put in by the authors.
Either, then, the authors believed in all these things, or they did not.
If they did not believe in them, then they were evidently bad men,
who deliberately wrote falsehood. But if they did believe these
things, then, though not guilty of wilful falsehood, they were
credulous, superstitious persons, who had no clear idea of the
religion of Moses and the prophets; and in either case they are most
unsafe guides in religion. It is for the Jews of the present day to
consider whether they will still adhere to a system that involves the
belief of so many incredibilities and sanctions the profanation of the
names of God for the purposes of magic. Eighteen centuries are
surely long enough to have remained in such thick darkness. Those
who have been brought up in such a system ought now, at least, to
arise and ask what have they and their forefathers been about all
this while? And how it is that the New Testament, which they have
rejected, is entirely free from such deformities? Something has been
decidedly wrong, or the chosen people of God could not have
remained so long in captivity, unheeded and unhelped by the Holy
One of Israel. An exhibition of the doctrines of the oral law explains
the cause. Israel has departed from the religion of Moses, and
pertinaciously adhered to a system compounded of human
inventions, and idolatrous heathenism. They call Moses their master,
and say that the oral law is derived from him, but if we may from the
work, form a conjecture about the author, it is much more probably a
tradition from the magicians of Egypt or the witch of Endor. And if it
had been handed down as such—if the Israelites had presented the
Talmud to the world and their posterity as part of the heavy yoke of
Egypt, we should not have been astonished at the universality of its
reception. But that Israel should ever have been so far imposed
upon, as to believe that Moses or the prophets ever had anything to
do with the oral law appears almost inexplicable. However unwilling
one may be to apply to fellow-sinners any prophecy that contains a
denunciation of God’s wrath, one cannot help asking, was it of this
that the prophet said, “The Lord hath poured out upon you the spirit
of deep sleep, and hath closed your eyes; the prophets and your
rulers the seers hath he covered. And the vision of all is become
unto you as the words of a book that is sealed, which men deliver to
one that is learned, saying, read this, I pray thee; and he saith, I
cannot, for it is sealed: and the book is delivered to him that is not
learned, saying, Read this, I pray thee, and he saith, I am not
learned.” (Isaiah xxix. 10-12.) This question is, however, far more
important to Israel than to us, and to them we leave the answer.
Some will still persist in the assertion that this heathenish compound
is the highest wisdom. The great majority of the nation is devoted to
the Talmud, which is still the cistern whence the synagogues
endeavour to draw the waters of life. The multitude does it in
ignorance, they are, therefore, not so culpable. But there are many
that know better, what then is the reason that they do not strain
every nerve to deliver their brethren? These few do not suffer the
oral law to interfere either with their business or their convenience.
They profane the Sabbath, eat Gentile food, carry on their business
on feasts and festivals. If they do all this on principle, why not protest
against error? Is it because they are indifferent to the welfare of their
brethren? If indifference be the only fruit of this intellectual progress,
instead of rising above, they have sunk below superstition itself.
 No. XXVI.
CHARMS CONTINUED.

If men would only employ in religion a little of that common sense

and earnestness, which they find so necessary for the affairs of this
life, they would by God’s blessing soon arrive at the truth. For
example, if the father of a family should find, that by following the
advice of a physician, sickness and death were constant guests, he
would soon look out for another; and he would be much quickened in
his measures, if this physician’s counsel had produced the same
results in the house of his father and his grandfather. He would not
think it any shame, under such circumstances, to change his father’s
physician for another; on the contrary, he would think, and most men
would agree with him, that it would be both a sin and a shame to
retain him. Now let Israel make the application to their spiritual
physicians, the Scribes, Pharisees, and Rabbies. For many centuries
they have punctually followed their advice, and the consequence has
been one misfortune after another, and centuries of exile from the
land which God gave to their fathers; the very contrary of that which
God has promised. God has said, if the Jews will obey the religion of
Moses, that they shall be restored to their land. “It shall come to pass
... if thou shalt return unto the Lord thy God, and shalt obey his voice
according to all that I command thee this day, thou and thy children,
with all thy heart and with all thy soul; that then the Lord thy God will
turn thy captivity, and have compassion upon thee, and will return
and gather thee from all nations,” &c. (Deut. xxx. 2, 3.) The Jews
have obeyed the commands of the rabbies, and have not been
gathered; what is the conclusion? Either that God’s promise has
failed, which is impossible, or that the religion of the rabbies is not
the religion of Moses. Such is the inevitable conclusion from the
words of Moses and the facts of the case; let it then lead the
sufferers to examine the religion which they have hitherto professed.
A very little examination will convince any reasonable man, that it is
a fearful corruption of divine truth, a compilation made by men who
professed to be astrologers and magicians. Let not the Jews think
that our opinion is the result of prejudice. It has been deliberately
formed on evidence furnished by the oral law itself. If we are wrong,
let the rabbies prove the contrary. Let them, for example, explain the
following law of modern Judaism.
‫מי שנשכו עקרב או נחש מותר ללחוש אל מקום הנשיכה ואפילו בשבת כדי לישב‬
‫דעתו ולחזק לבו אף על פי שאין הדבר מועיל כלום הואיל ומסוכן הוא התירו לו כדי‬
‫שלא תטרף דעתו עליו ׃‬
“If any person be bitten by a scorpion or a serpent, it is lawful to
charm the place of the bite, even on the Sabbath-day, in order to
quiet his mind, and to encourage his heart, although it is a thing
utterly profitless. Because the man is in danger, they have
pronounced this lawful for him that his mind may not be distracted.”
(Hilchoth Accum. c. xi. 11.) Here the rabbies have allowed what God
has absolutely forbidden. The men who profess such reverence for
the Sabbath allow it to be profaned by magic, which is one of the
works of the devil. Rambam, whose words we have just quoted, felt
that it was both wicked and foolish, and has therefore endeavoured
to furnish an excuse, saying that it is of no use, and is only allowed
to quiet the mind of the sufferer. But that does not alter the
unlawfulness. Besides, what sort of opinion could Rambam and the
rabbies have had of the Jews, when they say that magic is permitted
in order to quiet their minds? They evidently supposed that the Jews
were a weak and superstitious people, who believed so firmly in
charms, that the use of them would quiet the mind; and so ignorant
or careless about God’s commandments, that they could be
comforted by their transgressions. The excuse, therefore, only
makes the case worse. It takes for granted that the professors of the
oral law are ignorant and superstitious; and then to quiet their minds
allows the transgression of the law of Moses, and that on the
Sabbath-day. But this excuse is altogether Rambam’s invention. The
original passage in the Talmud says nothing about quieting the
man’s mind, it simply says—
‫ולוחשין לחישת נחשים ועקרבים בשבת ׃‬
“It is lawful to charm serpents and scorpions on the Sabbath-day.”
(Sanhedrin, fol. 101, col. 1.) And Rashi’s commentary on the
passage—
‫בשביל שלא יזיקו ׃‬
“That they may not do injury.” This man, then, who spent his life in
the study of the Talmud, knew nothing of Rambam’s apology. He
plainly believed that by charming serpents on the Sabbath, they
might be prevented from doing harm, and that on this account, and
not for the purpose of quieting the mind, they were permitted so to
do. This was also the opinion of that famous expounder of Jewish
law, the Baal Turim, for after quoting Rambam’s words, he adds:—
‫מי שרודפים אחריו נחש או עקרב מותר להבר ללחש כדי שלא יזיקוהו כתב‬
‫הרמב׳׳ם הלוחש על המכה והקורא פסוק מן התורה וכן הקורא על התינוק שלא‬
‫יבעת או מניח ס׳׳ת או תפילין על הקטן לא די להם שהם בכלל חברים ומנחשים‬
‫אלא שהם בכלל הכופרים בתורה שעושין דברי תורה רפואת הגוף ואינן אלא‬
‫רפואת הנפש ור׳׳י פירש דוקא בלוחש על המכה ומזכיר שם שמים ורוקק אותו‬
‫הוא שאין לו חלק לעולם הבא אבל אם אינו רוקק לא חמיר כולי האי ומיהו איסורא‬
‫ ואם יש‬, ‫איכא בלוחש פסוק על המכה אפילו בלא רקיקה ובלא הזכרת שם שמים‬
‫כו סכנת נפשות הכל מותר ומותר לקרוא פסוק פהגן כגון בלילה על מטתו ׃‬
“If any person be pursued by a serpent or a scorpion, it is lawful to
charm it to prevent it from doing injury. Rambam has written, He that
charms a wound, or reads a verse from the law (as a charm), and
also he that reads over an infant that it may not be afraid, or who
lays a roll of the law or phylacteries upon a child, are not only to be
accounted as one of the charmers and magicians, but as of the
deniers of the law, for they use the words of the law as medicine for
the body, whereas it is only a medicine for the soul. R. Isaac says
absolutely, that he who charms a wound, mentioning at the same
time the name of God and spitting, is the charmer of whom it is said
that he has no share in the world to come: but if he does not spit, the
matter is not so grave. It is, however, forbidden to use a verse as a
charm over a wound, even though there will be no spitting nor
mentioning the name of God. But if life be in danger, every thing is
lawful; and it is lawful to read a verse as a defence, for instance at
night in bed.” (Joreh Deah. § 179.) From this it is pretty plain that the
charming of serpents was allowed, not as Rambam says to quiet the
mind of him that had been bitten, but to prevent injury, for it is
allowed before the man is bitten at all, if he be only pursued by a
serpent or a scorpion. But what a picture does this whole passage
give us of the religious state of the Rabbinic Jews, both rabbies and
people. Here you have the people described, not by Christians, but
by the rabbies themselves, as sunk in the depths of superstition,
using a sepher torah, a roll of the law, or phylacteries as a sort of
charm for the benefit of children, and you have the rabbies forbidding
this at one time, but allowing what is equally forbidden by God, to
charm serpents: and, in case of danger, declaring that “Every thing is
lawful,” that is, allowing them to do what will make them, according
to Rambam’s opinion, charmers, magicians, and deniers of the law.
And this is the Jewish religion, and this is what the Jews have gained
by rejecting Christianity. We, poor Gentiles, who cannot trace our
pedigree to Abraham, Isaac, and Jacob, should be ashamed of such
follies. And if such wicked heathenish practices were to be found in
our religious books, we would not let an hour pass over until we had
lifted up our voice and protested against them, and should use every
lawful means to deliver our children from such ungodliness and error.
We have now given quotations from the two great digests of Jewish
law on the subject of using charms, but it is worth while to consider
the context of the original passage, upon which these laws are
based, as that will prove that the Talmud has not been
misrepresented by its compilers.
‫תנו רבנן סכין וממשמשין בבני מעיין בשבת ולוחשין לחישת נחשים ועקרבים‬
‫בשבת ומעבירין כלי על גב העין בשבת אמר רבן שמעון בן גמליאל במה דברים‬
‫אמורים בכלי הניטל אבל בכלי שאינו ניטל אסור ואין שואלין בדבר שדים בשבת ר׳‬
‫יוסי אומר אף בחול אסור אמר רב הונא אין הלכה כר׳ יוסי ואף ר׳ יוסי לא אמרה‬
‫אלא משום סכנה כי הא דרב יצחק בר יוסף דאיבלע בארזא ואתעביד ליה ניסא‬
‫פקע ארזא ופלטיה ׃‬
“Our rabbies have handed down the tradition that it is lawful to anoint
and rub the stomach (of a sick man) on the Sabbath, also to charm
serpents and scorpions on the Sabbath: also to pass an instrument
across the eye on the Sabbath. R. Simeon, the son of Gamaliel,
says, that this only applies to an instrument which may be moved,[26]
but with one that may not be moved, it is unlawful. But it is unlawful
on the Sabbath to make inquiry of demons. R. Jose says, this is also
unlawful on week-days. Rav Huna says, the decision is not
according to R. Jose: and R. Jose himself said this only on account
of danger, for that is what occurred in the case of R. Isaac, the son of
Joseph, who was swallowed up in a cedar tree, but a miracle was
wrought for him—the cedar opened and cast him out.” (Sanhedrin,
fol. 101, col. 1.) We have here, first, the charming of serpents; we
ask, then, could the Talmudic doctors really believe in such folly or
allow such wickedness on the Sabbath? Is there any
misunderstanding, or does the context show, that they were men of
that superstitious turn of mind to justify this idea? The context is all of
a piece, for after permitting the charming of serpents, it goes on to
discuss the lawfulness of asking counsel of demons, and here Rashi
shall explain what this means:—
‫בדבר שדים שכן עושין כשאובדין שום דבר שואלין במעשה שדים והם מּגידים‬
‫להם ואסור לעשות בשבת משום ממצוא חפציך ׃‬
“To make inquiry of demons, is what they do when any thing is lost.
They make inquiry by the work of demons, and they tell them, and
this is forbidden on the Sabbath, on account of the words, ‘Not
finding thine own pleasure.’ (Isaiah lviii. 13.)” This is plainly a magical
operation, but yet the rabbies do not say that it is unlawful because it
is magical, but because it would be attending to one’s own concerns.
In like manner, they say, it is unlawful on week-days, only on account
of the danger. And an instance is given in Rabbi Isaac of what might
happen; and here, again, we ask counsel of Rashi, in order to
understand what Rabbi Isaac was about. This commentator tells us:
—
‫היה שואל במעשה שדים ובקש השד להזיקו ונעשה לו נס ובלעו הארז ׃‬
“He was asking counsel, by means of a demoniacal operation, and
the demon sought to do him an injury, but a miracle was wrought for
him, and a cedar tree swallowed him.” Such, then, is the context,
those men who permit the charming of serpents, also teach the
doctrine of asking advice of demons, and give us a practical example
in one of their friends. There can, therefore, be no mistake; the one
feature of their religious system exactly agrees with the other: and
the authors of the oral law represent themselves as patrons and
practisers of charms and magic, and therefore to every lover of the
Mosaic law, as unwise and ungodly men. It is, however, curious to
see how they endeavoured to quiet their own conscience, and that of
the people, in a matter so evidently repugnant to the plain words of
Scripture. They pretended, that there was a holy sort of magic in the
practical Cabbala, which men might learn, and then perform the
greatest miracles.
‫אי בעו צדיקי ברו עלמא שנאמר כי עונותיכם היו מבדילים וגו׳ רבא ברא גברא‬
‫שדריה לקמיה דר׳ זירא הוה קא משתעי בהדיה ולא הוה קא מהדר ליה אמר ליה‬
‫מן חבריא את הדר לעפריך רב חנינא ורב אושעיא הוו יתבי כל מעלי שבתא ועסקו‬
‫בספר יצירה ומיברו להו עיגלא תילתא ואכלי ליה ׃‬
“If the righteous wished, they might create the world, for it is written,
‘But your sins separate, &c.’ Rabba created a man, and sent him to
Rabbi Zira. He spoke with him, but when the other did not answer
him, he said, Thou art from the magicians, return to thy dust. Rav
Chanina and Rav Oshaia used to sit every Sabbath eve and study
the book of Jetzirah, and then created for themselves a three-years-
old calf, and ate it.” (Sanhedrin, fol. 65, col. 2.) The second miracle is
here ascribed to the study of a certain book. In Rashi the first miracle
performed by Rabba is ascribed to the same source.
‫ברא גברא ע׳׳י ספר יצירה שמלמדו צרוף אותיות של שם ׃‬
“He created the man by means of the book of Jetzirah, for it taught
him the combination of the letters of the name of God.” According to
this account, these rabbies were much greater men than Moses or
any of the prophets, for in the whole Old Testament there is not one
such miracle recorded. Moses never created any thing, neither did
he perform any of his miracles without the help of God. Either the
Lord immediately commanded him, or he sought the Lord’s help. But
these rabbies acquired the power of omnipotence by studying a
particular book, and exercised it either for their amusement or their
profit. Rabba created a man, and sent him to Rabbi Zira, not as it
appears to do any good, or to glorify God, but simply to show his
power, or to act a little bit of waggery; and the other two created a fat
calf for themselves every Sabbath eve, that they might have a good
dinner. The difference between these miracles and those recorded in
Scripture is obvious. The Scripture miracles are either for the glory of
God, or the good of man. The rabbinical miracles are altogether for
the glory of man, and the gratification of self. Moses smote the rock,
and supplied all Israel with water. The rabbies create a calf, and eat
it themselves. No doubt there were many poor people in Israel at the
time of Rabbies Oshaia and Chanina, who would have been very
glad of a calf for their Sabbath dinner, why did they not create a calf
or two for them? This selfish falsehood betrays itself, and bears on
its front its own condemnation. The whole doctrine of the
combination of the letters in the name of God is a pure invention of
men, whose minds have been debased by superstition. There is not
a word about it in the whole Bible, and it is derogatory to the honour
of God, who is the only Creator.
The whole Talmudic doctrine of magic does, however, explain the
reason why the Scribes and Pharisees were so little moved by the
real miracles of Jesus of Nazareth and his disciples. Their minds
were fully possessed with faith in the power of cabalistic magic, they
therefore were insensible to the real displays of divine power. They
were in the same state of mind as Pharaoh and his magicians, who
looked on the miracles of Moses as a mere proof of magical skill,
and hardened their hearts. Even when they confessed “This is the
finger of God,” they were not converted. Pharaoh still persisted in his
resistance. And so it was with the Scribes and Pharisees. When the
Lord had raised Lazarus from the dead, “then gathered the chief
priests and the Pharisees in council, and said, What do we? for this
man doeth many miracles.” They acknowledged the fact of the
miracles, but did not receive their evidence, for they believed that the
study of the book of Jetzirah would enable them to do greater. No
miracle, therefore, could convince them. But besides this, their
hearts were corrupt, and they had apostatized from the law of
Moses; they therefore did not love the truth. They had turned aside
to charms and magic, and asking counsel of demons; and when men
do this, the understanding becomes darkened, so that it is rendered
impervious to the light. Their unbelief, therefore, becomes an
evidence to the truth of Christianity. If such transgressors of the law
of Moses, and such unblushing relaters of falsehood had believed, it
would have cast a shade of suspicion over the whole Gospel history.
If the men, who say that Rabba created a man, and the two other
worthies created a calf every week, had appeared as witnesses for
the truth of Christianity, the miracles of the Gospel would have
appeared in one category with these most absurd fictions. But when
such men appear as the enemies and persecutors of Jesus, it
testifies that He was not one of them, and that as they were bad
men, and loved a false system, his doctrine must necessarily have
had something good in it, or they would not have opposed it.
But this doctrine explains still more clearly the cause of God’s wrath
against Israel. The Jews boast that since the Babylonian captivity,
they have been free from idolatry, but this is not true. They have not
made images, that is, they have avoided the form, but they have
retained all the substance of idolatrous heathenism. The man who
charms a serpent is an idolater, and the religion which permits it is
idolatrous and heathenish. The man who asks counsel of demons is
an idolater of the worst class, for he does homage to unclean spirits.
He turns his back upon the allwise God, who ought to be the
counsellor of all his children, and by making demons his advisers,
makes them his gods, and yet this is also allowed in the religion of
the rabbies if it can be done without danger. Those Jews, therefore,
who believe in the oral law—that is, all Jews who make use of the
synagogue prayers, have departed from the law and the God of
Moses, and have chosen for themselves the doctrines and the gods
of the rabbies. How then can God have compassion upon them and
gather them? The thing is impossible, until they utterly renounce all
these delusions, confess their sin in having followed them so long,
and “return and seek the Lord their God and David their king.” A long
trial has been made of the rabbinical medicine, and it has altogether
failed. Wherever the religion of the oral law has been or is
predominant, its sway has been marked by the misery of the people.
And the first dawn of a happier day has appeared only since the time
that a part of the nation burst the fetters of rabbinic superstition.
Compare the state of the German Jews with that of their brethren in
Turkey or on the coast of Morocco. Some of the former have
abandoned the oral law, and the latter still cling to it with a bigoted
devotion; and yet the former have had a blessing in the improvement
of their temporal and intellectual condition, and the latter still remain
in mental and corporeal slavery. The mere renunciation of Rabbinism
has produced these beneficial effects, and if the Jews of Europe go
on from the renunciation of error to the attainment of truth, that is, if
they return to the religion of Moses and the prophets, the promises
of God will be fulfilled, and the nation will be restored to the land of
their fathers.
The Rabbinic Jews comfort themselves with the idea, that they
cannot have this world and the world to come too; but they confound
two things which are perfectly distinct, God’s mode of dealing with
individuals, and his mode of dealing with nations. Individuals have
not only an existence in time, but for eternity. Worldly misfortune to
an individual is, therefore, no proof of God’s displeasure, because
the world is only a part, and that the smallest part, of his existence.
But the case of nations is different. They exist only in time, and
therefore the rewards and punishments must be temporal, and so
God has uniformly promised to the Jewish people temporal
prosperity, in case of national obedience, and temporal calamity in
the former case. Whenever, therefore, we see Israel exiled from their
land and scattered among the nations, we must infer, if Moses has
spoken the truth, that it is because they have departed from the God
of their fathers.
 No. XXVII.
SABBATIC LAWS.

How little the oral law has hitherto done to promote the peace and
happiness of Israel, we considered in our last number. It may,
however, be replied, that it has not had a fair trial, and that the failure
is to be attributed rather to the people than to the law. This possible
reply naturally leads us to think, what then would be the state of
Israel and of the world at large, if the oral law were universally and
exactly observed, and its disciples had supreme dominion in the
world? Suppose that all the kingdoms of the world were melted into
one vast and universal monarchy, and the sceptre swayed by a
devout and learned rabbi, and all the magisterial offices filled by able
and zealous Talmudists, would the world be happy? This is a fair
question, and well deserves consideration, for there can be no doubt
that true religion was intended by its Divine Author to promote the
happiness of his creatures:—
‫דוכיה דרכי נועם וכל נתיבוביה שלום ׃‬
“Her ways are ways of pleasantness, and all her paths are peace.”
(Prov. iii. 17.) And that not of a few, but of all without exception.
‫ הלא אל אחד בראנו ׃‬, ‫הלא אב אחד לכלנו‬
“Have we not all one father? Hath not one God created us?” (Mal. ii.
10.) That religion, therefore, cannot be of God, which would make
the greatest portion of his creatures miserable, and confer happiness
on a very limited number. The religion that came from heaven,
wherever it exists, must contain the elements of happiness for all
nations, and include all the families of man. It must exclude none but
the wilfully and obstinately wicked, who carry the torments of hell in
their own bosom, and would be necessarily unhappy even in heaven
itself. A religion, whose principles, if triumphant, would effect so
desirable a consummation, must be true. The question is, whether
modern Judaism, if it had full and free scope for the realization of all
its principles, would bear such blessed fruit? Our late inquiries about
amulets and magic led us to consider some of the laws about the
Sabbath-day, and as when true religion prevails, this ought to be the
happiest day of the week, the laws respecting it shall furnish
materials for our answer. That a rabbinical Sabbath would be the
happiest day in the week we much doubt, for, in the first place, to
keep the rabbinical Sabbath aright, it is necessary to be perfectly
acquainted with all the laws relating to it, which are very many and
very intricate, occupying even in Rambam’s compendium, including
the notes, above one hundred and seventy folio pages.[27] That any
conscientious man can be happy with such a load of law about his
neck appears impossible. He must be in continual fear and trembling
lest he should through forgetfulness or inadvertence be guilty of
transgression, and the continued watchfulness and anxiety would be
more intolerable than the hardest labour. But if Rabbinism wielded
the supreme power, he would have to dread the most severe and
immediate punishment:—
‫ וכל העושה‬, ‫שביתה בשביעי ממלאכה מצות עשה שנאמר וביום השביעי תשבות‬
, ‫בו מלאכה ביטל מצות עשה ועבר על לא תעשה שנאמר לא תעשה כל מלאכה‬
‫ומהו חייב על עשיית מלאכה אם עשה ברצונו בזדון חייב כרת ואם היה שם עדים‬
‫והתראה נסקל ואם עשה בשגגה חייב קרבן הטאת קבועה ׃‬
“To rest on the seventh day from work is an affirmative precept, for it
is said, ‘On the seventh day thou shalt rest.’ Whosoever, therefore,
does any work, annuls an affirmative, and transgresses a negative
precept, for it is said, ‘Thou shalt do no manner of work.’ What is
meant by being guilty on account of doing work? If it be done
voluntarily and presumptuously, the meaning is, that he is liable to
excision, and if there were witnesses and a warning, he is to be
stoned. If he did it in error, he must bring a certain sin-offering.”
(Hilchoth Shabbath, c. i. 1.) This sounds something like the law of
Moses, but is in reality far more severe. The whole force depends
upon the meaning of the word “work,” and the rabbinical sense
would entirely destroy the peace of society. If, for instance, a poor
man could not afford to have his Sabbath lamp burn all day, and
should extinguish it to save the oil; or if a humane man should see
burning coals in some place likely to do injury to others, and should
extinguish them, they would both be guilty, and if some zealous
Talmudists happened to be present, and first remonstrated with them
on the unlawfulness of the act, they would both be tried, found guilty,
and stoned to death:—
‫ כיצד‬, ‫כל העושה מלאכה בשבת אע׳׳פ שאינו צריך לגופה של מלאכה חייב עליה‬
‫הרי שכבה את הנר מפני שהוא צריך לשמן או לפתילה כדי שלא יאבד או כדי שלא‬
‫ישרף או כדי שלא יבקע חרס של נר מפני שהכבוי מלאכה והרי נתכוון לכבות‬
‫ואע׳׳פ שאין צריך לגוף הכבוי ולא כבה אלא מפני השמן או מפני החרס או מפני‬
‫ וכן המעביר את הקוץ ד׳ אמות ברה׳׳ר או המכבה את‬, ‫הפתילה הרי זה חייב‬
‫הגחלת כדי שלא יזוקו בו רבים חייב ואע׳׳פ שאינו צריך לגוף הכבוי או לגוף‬
‫חהעברה אלא להרחיק ההיזק הרי זה חייב וכן כל כיוצא בזה ׃‬
“Whosoever does any work on the Sabbath, even though he does
not do it for the sake of the work itself, is nevertheless guilty. How
so? If, for instance, a man extinguishes a lamp, because he wants
the oil or the wick, and wishes that it should not waste, nor be
burned, or that the earthenware part of the lamp should not be
cracked; inasmuch as the extinguishing is work, and his intention
was to extinguish it: although the mere act of extinguishing it was not
the ultimate object, but on the contrary, the saving of the oil or the
wick, or the earthen lamp, he is, nevertheless, guilty. And in like
manner, whosoever, removes thorns a distance of four ells in a
public place, or whosoever extinguishes coals to prevent the public
from being injured, is guilty: although the ultimate object was not the
extinguishing nor the moving, but he simply intended to prevent the
injury, he is guilty, and so in all similar cases.” (Ibid.) If this were the
law of the land, and the executive were in the hands of Talmudistic
zealots, the peace of the world would be at an end. The poor man
could not be happy, when he saw his little property wasting; and the
humane man would either be made miserable at the thought of being
able to prevent much injury, and yet not doing it, or would have to
expose himself to the danger of a cruel and ignominious death. We
know enough of the general character of the Jewish nation to believe
that there are amongst them those who would brave the danger,
whose generous hearts would rise above personal considerations,
but how dreadful would be the consequences! A man of a tender
heart, the father of a family, would be induced, by the best of
feelings, to save his fellow-men from injury. He would return to his
family, and tell them how God had given him an opportunity of doing
good. The family worthy of such a father would rejoice to hear the
information, but the sequel of his story would turn their joy into
mourning. He would have to tell them that ignominious death would
be the consequence, and that because he dared to do an act of
charity, and to love his brother as himself, the morrow would see his
wife a widow and his children orphans. But suppose, that when he
performed the act, he had been attended by two of his sons, now
grown up, and zealots for the oral law—that they had warned him,
and then became his accusers, as they must, if firm believers in
Talmudic religion, he would have the additional pangs of seeing his
own flesh and blood as the foremost of his executioners. This one
law would clothe the world with mourning, and make the light of the
Sabbath sun the curse of mankind. Though men might be found at
first to brave the danger, the course of time and the inflexible severity
of the law would soon annihilate all generous feeling. Children would
be trained up with the idea that humanity is not a Sabbath virtue, and
the constant resistance of the tender feelings would harden the
heart, and mankind in time become totally insensible on week-days
as well as Sabbath-days; and thus the enforcement of this one law
would produce universal selfishness, and this would certainly not
promote the happiness of the world. But take another case of a man,
who leaves his home on the Friday morning to go a short distance
into the country, intending to return before the commencement of the
Sabbath; he meets with an accident, and breaks a limb; on the
Sabbath he is sufficiently restored to think of the anxiety of his family,
and writes a short note to inform them of his state, this act of
common love and kindness would cost him his life; nay, if he had
only begun the letter, and then overcome by fear or weakness, had
left it unfinished, a rabbinic tribunal would condemn him to be
stoned.
‫כל המתכוון לעשות מלאכה בשבת והתחיל בה ועשה כשיעור חייב אע׳׳פ שלא‬
‫ כיצד הרי שנתכוון לכתוב אגרת או שטר‬, ‫השלים כל המלאכה שנתכוון להשלימה‬
‫בשבת אין אומרים לא יתחייב זה עד שישלים חפצו ויכתות כל השטר או כל‬
‫האגרת אלא משיכתוב שתי אותיות חייב ׃‬
“Whosoever intends to do any work on the Sabbath, and begins it,
and does a certain measure, is guilty, although he does not finish all
that he intended. How so? Suppose he intended to write a letter, or a
contract on the Sabbath, it is not to be thought that he will not be
guilty until he finish his business, and write the whole contract or the
whole letter. On the contrary, as soon as he shall have written two
letters (of the alphabet) he is guilty.” (Ibid.) And consequently, if it can
be proved, must be stoned. Every one’s daily experience will tell
them of the many similar cases where a letter may be necessary for
the peace or well-being of an individual or a family, and where the
delay of a day would be a serious injury. If rabbinism held the reins
of power, the anxiety, the sorrow, the injury must all be endured; the
Sabbath-day must be made a burden and a curse, instead of a
blessing, or life itself must be exposed to danger. But this would not
be the only misery. These sanguinary laws would, as religious laws,
bind the consciences of the weak and superstitious. A man’s
domestics, or his children, or even his wife, would become spies
over all his Sabbath doings, and the denouncers of every
transgression; and thus domestic confidence, without which not even
the shadow of happiness can exist, would be destroyed, and a man’s
foes would be those of his own household. Much has lately been
thought and said about the sanguinary nature of the laws of England,
but the laws of Draco himself were merciful when compared with the
religious enactments of the rabbies. Draco only sentenced to death
men convicted of a crime. The oral law condemns to stoning the
man, woman, or child who will venture to write two letters of the
alphabet, or even who will extinguish fire to prevent a public injury.
Nay, in some cases, where it actually pronounces a man innocent, it
nevertheless commands him to be flogged.
‫נתכוון ללקוט תאנים שחורות וליקט לבנות או שנתכוון ללקוט תאנים ואחר כך‬
‫ענבים ונהפך הדבר וליקט הענבים בתחלה ואח׳׳כ תאנים פטור אע׳׳פ שליקט כל‬
‫מה שחשב הואיל ולא ליקט כסדר שחשב פטור שבלא כוונה עשה שלא אסרה‬
‫התורה אלא מלאכת מחשבת ׃‬
“If a man intended to gather black figs, but gathered white figs, or if
he intended to gather figs and afterwards grapes, but the matter has
been inverted, and he gathered the grapes first, and afterwards the
figs, he is not guilty. Although he have gathered all that he thought of
gathering, yet, because he did not gather them in the intended order,
he is not guilty, for he did what was unintentional, and the law forbids
only intentional work.” (Ibid.) We pass by the manifest absurdity of
this decision, which is, however, sufficient to prove that this law is not
of God, because it is more important to consider what is to be done
with a man not guilty. The law of England, or any other civilized
country, would say, of course, that he is to go free; but not so the oral
law, it commands that the man should be flogged.
‫ הרי זה פטור מן הכרת ומן הסקילה‬, ‫וכל מקום שנאמר שהעושה דבר זה פטור‬
‫ומן הקרבן אבל אסור לעשות אותו דבר בשבת ואיסורו מדברי סופרים והוא‬
‫הרחקה מן המלאכה והעושה אותו בזדון מכין אותו מכות מרדות ׃‬
“Wherever it is said, he that doeth anything is not guilty, the meaning
is, that he is not liable to excision, nor stoning, nor a sacrifice, but
that thing is unlawful to be done, and the prohibition is of the words
of the Scribes, and is intended as a removal from the possibility of
work: and he that does it presumptuously, is to be flogged with the
flogging of rebellion.” (Ibid.) Here, then, we have a whole class of
crimes which the oral law itself allows are no crimes according to the
law of Moses, but which it thinks fit to punish with that dreadful and
degrading infliction. Are the professors of this traditional religion
really acquainted with its ordinances? or can any man believe that a
religion which, if it had full scope and power, would become the
torment of the human race, can emanate from God?
If ever this religion attains supreme power, its adherents will be
reduced to a state of the most deplorable bondage, but what would
be its effect upon the other nations of the world? It would, in the first
place, deprive all other nations of a Sabbath; for we have already
quoted the law (No. 3, p. 22), which decides, “That a Gentile who
keeps a Sabbath, though it be on one of the week-days is guilty of