APPQTOiX X DEFIN ITiO NS ' PAGE 416? : ■ \ ■ ' v - : - o'general contractors for installation in an apartment complex or development. The size of a typical order, of course, varies dramatically between these two served markets. Large builders and" contractors buy in carload (even trainload) lots with little variation in, the features, functions, colorsc of models, etc.

It is important that you define the served marketfor each business carefully, since our analyses haveshown that the s h a r e of its market achieved by abusiness is one of the most important singledeterminants of profitability. Generally speaking,the more n a r r o w l y the market is defined, the better. " " .Of course, this means that it will often be

y-^-^ti^ssary to m a k e e s t i m a t e s of total market sizeI • etl^on appropriate allocations of published

^ures "to specific regions, „products, or types ofcustomers. . .

APPam iX X I ABERRANr m m B R S , A # 418

Aberrant clusters

Since the cluster analysis was essentially measuring the grouping of the data according to one particular variable the aberrant clusters can be described in terms of that single / variable, in this case, ICU the customer concentration variable. The table below gives the cluster number and the mean value of ICU.

ClusterNumber

7 Number of Observations in Cluster

Mean Value of ICU

' 1 f ■ ' ' 85 = ; 10,18

” 2 , .. 1 ' 300,00

.. , - 3 414,004 .. i - 3182,00

V'’ 5 15 153,33

\ I ■ , - "Clearly the 3 aberrant clusters represent discrete high values of the variable "customer concentration". A closer look at these SBUs revealed that there was nothing unique about them other than that they have an unusually large value of ICU (the number of customers that make up 50% of sales ,the definition of ICU) .

,iv..

-ii

•S it

APPENDIX XII PAST CLUSTERING PAGE 419 .... ^-__a--------— — r-'L"'- ......■.' • — 4— .

APPE^)IX,X,I.I

East clustering procedure

ii

APPENDIX XII FAST CLUSTERING PAGE 420

: a . . . : ....... "■ . • : :Fast clustering procedure : Extract from SAS Manual -

The FASTCLUS procedure combines an effective method for finding initial clusters with a standard iterative algorithm for" minimizing the sum of squared distances from the cluster means. The result is an efficient procedure for disjoint clustering of large data sets. FASTCLUS was directly inspired by Hartigan's l e a d e r algorithm (1975) and MacQueen's k - m e a n s algorithm (1967)

PROC FASTCLUS uses a method that Anderberg (1973) calls n e a r e s t c e n t r o i d sorting: A set of points called c l u s t e r s e e d s is selected as a first guess of the means of the clusters. Each observation is-apiigned to the nearest seed to form temporary clusters. The seeds are then replaced by the means of the temporary clusters and the process is repeated until no further changes occur in the clusters. Similar techniques are described in most references on clustering (Anderberg 1973; Hartigan 1975; Everitt 1989; Spath 1980).

The FASTCLUS procedure differs xrom other nearest centroid sorting methods in the way the initial cluster seeds are selected. The initial method of FASTCLUS guarantees' that if there exist clusters such that all distances between observations in the same cluster are less than all distances between observations in different clusters, and if you tell FASTCLUS the correct number of clusters to find, then it always finds such a clustering without iterating. Even with clusters that are not as well separated, FASTCLUS usually finds sufficiently good initial se^eds that few iterations are required. The importance of initial Seed selection is demonstrated by„ Milligan (1980). - -

APPENDIX XII FAST CLUSTERING PAGE 421

References ,i - "

Anuerberg, M.R. „ (1973), Cluster .Analysis forApplications, New York : Academic Press. \ °

Everitt, B.S. (1980), Cluster Analysis, Second Edition, London: Heineman Educational Books Ltd.

Hartigan, J.A. (1975), Clustering Algorithms, New York: John Wiley .& . I ..

, ̂ A ^ I ^ - 'MacQueen, J. B. (1967), "Some Methods for Classification |knd Analysis of Mu] tivariate Observations," Proceedings of the Fifth Berkeley Symposixun on Mathematical Statistics and Probability, 1, 281-297.

Milligan, G.W. (1980), "An Examination of the Effect of Size Types of Error Perturbation of Fifteen Clustering Algorithms," Psychometrika, 45, 325-342.

SAS User1s Guide : Statistics Version 5 SAS Institute Cary, North Carolina, 1985 ISBN 0-917382-66-8 p378

INDEX PAGE 422

INDEX

Abell . . . *Abell & Hantnoiid Abell & Ilrmmond,Abell and Hamnond Abell and Hanrmonc|Abell and Hamond,Allison . . . j. u Alwin and Hauser, \

Anderson and Paine, Andrews, . . . . .Ansoff . . . . •6. .Ansoff, . . . . .Ansoff) . . . . .Bailey. . . . . Bailey's . .;. . .Bain . . w .s. . .Bain, . . . | . .Basar & Olsder . .Basar & Olsder,Basar and Olsder,Bass et al . . . .Bass, Cattin and Wittink Bass, Cattin and Wittink, Bayvel, . . . . . . Bertrand and Edgeworth Best and Kahle, . . Bhattacharya, . . . Bloom and Kotler,Bothwell et al . . . Bothwell, Cooley and Hall, Bourgeois . . . . . . .

. 23, 172, 229, 274 . . 120 . . 172

. .

if •.v7-

29.

. . . .

. . . . . • • • . .

120, 414. . 22. . 147 . . 26. . 125 • • 31 27, 39 . . 166 27, 39 . . 168 . . 102

105, 106 12, 125

2, 16, 66 86 86

16, 24, 88 5641 13 30 76 30 171

16, 30 56 13 39

9 ^INDEX PAGB 423

"7------------— ------------------ --Bourgeois, . . .Boynton and Zmud,Bradly and Gale BuzzellBuzzell & Gale,Buzzell & Wiersema,Buzzell and GaleBuzzell and Gale,Buzzell and Wiersema . . .Buzzell and Wiersema, ;. P,Buzzell et al . . 31, 41, 54, 126, 127,193, 226, Buzzell et al, . . . . . .Buzzell Gale and Sultan Buzzell, Gale & Sultan,Buzzell, Gale and Sultan .Buzsell, Gale and Sultan,„Buzztell, Quelch & Bartlett,-v ||Cazpanter & Lehmann, . . .Caves, Gail and ijjorter,Chamberlain and Eyeliner4 . . 'Chandler, . . . % . . . ,i Child, . . . . . . . . .Clifford and Cavanagh, . .Cook .............

• • « •

* % . •

. . . . . .

r

Cook, . - q . . * . «Cooper and Weeks . .Core Competence . . . Cournot . . . . . ̂ r . . Daughety . . . . . . . . .Day . . . . . . . . . .De Vasconcellos & Hambrick De Vasconcellos & Hambrick)De W e t ......... . . . . ' .DEFINITIONS . . . « . . . „.

advantage of scale . . AOS . . . . . . . . .business . . . . * . ft.

. . . . 18, 193 ̂

. 20, 23, 26, 31,

. . . . . . . 56,

2416681

1442016

276L45

.....

• * * |1 • •

• « • • •

• ' • • ■ * • • • • • • • •

61,

# * • • ■#

* * * *

. 31,

ft- 61 234 145 %.12 is

239 . . 2. 30.» 16

. 77

. 25

. 27

. 25

. 1316, 24 . 133 .226 . 77. 74

23, 276 168 168 116 22 170 170 22

INDEX PAGE 424

core competencies ) 1 Industry Specificity - % Industry/Business

Key Success Factors 5 KSF . . . . market share performance profitability

^ SPEC . ■* > . specificity strategy . . value chain

Dess Sc Davis n . .Dess and Davis,Dixit ........Dolan . . . . .Dolan & Jeuland,Dolan and Jeuland,Du Porit * s ...Duncan, . . . .Eaton & Ware,Eaton and Ware,Edward S Mason / { .

FASTCLUS . . .Ferguson and Dickinson, Forchheimer and Von Stackelberg Foster . .Foster,Freund,Freund)Fruham, . .Fruhan . .Fundenburg,Galbraith & Schendel . Galbraith & Schendel,Galbraith and Schendel Galbraith and Schendel,

22,

42

169 174 171 166 166 413

. . 23413

. . 175

. A. 175

. . 24

. . 173

. . 207

. . 4788

. . 17i

. . 9516, 37 . . 62 . . 125 . . 95. . 16 . . 1 7 . 420. . 166 . . 76. . 192 . . 66 . . 167 . . 168

. 237 99, 234 . . 16 27, 207 . . 4713, 235 . . 40

G

INDEX PAGE 425

Gale e . i e • • • • * * • • • 30Gale & Branch . . . . . . . . • • a . a a * * „e a 37Gale & Branch, . . . . . . . . 3 I a a a a a 24, WGale and Branch . . . . . . . . . . . 1 2 ,.24, 234Gale, . . . . . . . . . . . . a a a a a a . a . 2

Georgescu - Roegen . . . . . . • • a a a a a . 165Geroski, Masson & Shaanan, . . _ * • a a a a ' 'a"

r 16Ghamawat . . . . . . . . . . . • • a a a a a 192Ghemawat . . . . ............ • • a a a a a 61,99Ghemawat S t Spence, . ... . . . . * • a a a a a a a 170Ghemawat and Spence, ........ • • a a a i - a • • 37Ghemawat, . . . . . . . . . . * m a a *' a , a_ a a 171Ghemewat, . . . . . . . . . . • • a a a a a a a 144Gilbert, . . . . . . . . . . . • # a a a ' a a a a 64Gluck, . . . . . . . . . . . . * • a a a a a 35, 170Godld & Quinn . . ; . • •- a a .. a a a a "'a 27Hall . . . . ' i1' . . . . . . . . # e a a a a a a a 36Hall & Howell, . . . . . . . . • • • a a a a a a 171Hall and Howell . . . . . „. . • • . . . 35, 36, 144Hall, . . . . 'i . . . . . .'* * * a a a a a a ‘ a 144Hambrick . . . 13, 26, 39, 47, 130, 138, 139, 207, 235Hambrick MacMillan . . . A . • • a a a a a a a 234Hambrick ^ MacMillan, . . A . a * a a a a a a a 42Hambrick and MacMillan . \ . • a a a a a a 28, 257Hambrick and Schecter, . 4 . . » • a a a A a 30Hambrick et al . . f. . . ..A . a ft a a a a a a a a 50 *Hambrick,! . . . . . . > A. , • a . 16, 27, 39, 40Hambrick; MacMillan & Day, . . a a a a' a a a a ' a 1 6

Hambrick, MacMillan and Day a a a ' a a a a 39, 49Hambrick, MacMillan and Day, a a a a a a a 40' 4 7Hamel & Prahalad......... . a a a a a a a a a 172Hamel & Prahalad, ......... a a a a a a a 170Hamermesh . . . . A . . . . . A a a a a a a a a 99Hamermesh et al . .......... . . . 43A 4 4 , 50Hamermesh, Anderson & Harris, a ' a a a a a a 29Hamermesh, Anderson and Harris 43, 237Hamermesh, Anderson and Harris,

I ° INDEX PAGE

Hamermesh, et al, . . . . .Hanan, . . . . . . . . . . . . . . . . . . . 64,Harrigan . . . . . . . . . .Harrigan, . . . . . . . .Hartigan.... • ? • • • • •Heany . .1 . . . . . . . .Henderson . . . . . . . . ./Henderson, ;. . . . . . . . .HOfer & Schendel . . . . . . ' : ..........-Hofer & Schendel, . . . . . %Hofer & Schendel)” t . . . . . . . . . .

International Monetary FundJacobson & Aaker, . . . . . » .......... . 126,.Jacobson and Aaker . . . . . . . . . 36, 53, 54Jacobson and Aaker, . . . .... - f

. . . . . . . . . .Kamani . . . . . . . . ■ • - •Kamani, . . . . . . . . \ . . . . V \ . 16, 8 8

Kehoe . . . . . . . . . . . .Kehoe, . . . . . . . . . . . .Kiechel, ......... . . . .Kotler and Singh, . . . . .Kotler, . . , . . . . .Leidecker & Bruno, . . . . . . ■. i . .

Leidecker & Bruno) . . . . • • - • • • • . • • •[Leonard Weiss, . ..........Liddell Hart, ...........Lieberman . ............ . . . . . . . . . . 62Lieberman & Montgomery . . .Lieberman & Montgomery, . .Lieberman and Montganery . .Lieberman and Montganery, . . . . 16, 51, 60,Lieberman, . .......... . .Lippnan and Rumelt, . . . . ......... 16, 38Lubatkin & Pittsr . . . -. . .Lubatkin & Pitts, . .X\. . .Lubatkin and Pitts . . rt. . .V

INDEX PAGE 427

Lytle, . .Maasdorp .MacMillan,MacQueen Maher, . .Mancke . .Maiileon and Willingstpn McGee . .McGee, . .McGuire & Weiss, .McLagan, . . . . .Miles . . . . . .Miller and Friesen, Miller, -. . . .. .Mills, , . . . . .

Mintzberg, . . . .Montgomery . . . .Myint • • • •Myint, . . > i . .Newton . . . . . .Newton, . . . . .O'Dowd . . . . .O'Dowd, . . . . .Ohmae . . . . . <-.Oliva, Day and Desarbo Page . .' . . * .Page, \ . . . . .PARADiayiS . . . . ;Pascarella, ̂ . . .Peters, . . . . .Phillips et al . ,Phillips et al,Phillips, Chang & Buzzell . Phillips, Chang and Buzzell Phillips, Change & Buzzell Pickering, . . . ........

16, 66 74,

■X

16 117 25

314 30 51 166

. . . 17, 78, 9677, 84, 85, 145, 170

16• « • • • • • • «JU V

. . . . . . . . 126. . . 27. . . 39

27, 39, 40 16

•I 2626 110 116 111 99

16, 126, 171 112 111 30 125 99

16, 145 . ., 109 . . 39. . 97

56, 126, 145, 236 41

235 40

277 16

INDEX PAGE 428

Pitts, . . . . .Porter ........Porter, . . . .Prahalad & Hamel Prahalad & Hamel,Prahalad and Hamel Pratten .Prehalad & Hamel',Prescott et al .Prescott, Kdhli and Venkatraman Ramanujam and Venkatraman Ramanujam and Venkatraman,Rao and Bass,Ravenscroft . . . . . . . . . . r>. ' • 234Robinson . . . . .... . -

-fy .Rostov . . . . . . .

. R,. . . . . . . . * . . . . 186• . . ° . • • • . . . . . . 113

Rostov, . . . . . . . . ° . . . . . . . . . . .s.

1 1 1

Rumelt k Wenslev . . 51Rumelt & Wensley, , . . » . . . . • . . . 2 52Rumelt and Wensley . > • • . . • 38 56SA Reserve Bank . ." . • . . . . . . . . * • . . l f 6 3

sAs . . . . 420Scharer, \ ■. . . \ . • • • • • A * , . . , . 171Scherer .)) . . . |; . 17SCherer, ^ . . 16 , 17 , 19 , 6 6 69Schmalensee, . . . . ♦ . . . • n • 16 64Schoeffler et al .; . • • . • • • • 234Schoeffler et al. • , .

%. . -i 61

Schoeffler, Buzzell\ & Heany, • . . . . 23, 31, 172Schumacher . . . . . . . . . . • e * . . 3 96Schuster . . . . . . ■' 99Schuster, . . . . . . . . . . . . . 16Shav & Shav . . . . > ' ' , 99Shav and Shav . . . 60Shav and Shav, . . . . . . . . . . . . . . . . . • , . . 16, 60, 61, 145Shepherd......... 17, 30, 31, 56 1

oTCO 99, 125, 234Shepherd, 13, 16 t 82, 84, 145, 170

• • • • • • •' f; • • • 39\ . . . . . ^126-,(^73'. . 16, 30, 65, 66, 144• • • • • • •,, . . 169. . . . 1. . . . . . 169. , . . . 182, 223-226. • « • • ■ « • • • • • 84• . . . . . • # . 183

' . . . 56, 276• . . • . 14• • . . . 40........... 13. . . . . 16

„■ 0 INDEX PAGE 429■5- ' -

Smirlock . / . . v .. Q . v > . . . . . . . f99, 234Smirlock, • ; v ........ . , . . / . . . . . . 16Sno\v!̂ * • * • • # # * • » • • * • * « * • •. * * 2/Strategic Intent . . . . . . . . . . . . . ... . . 228 Tellis and Fornell, r . .- . /. .„ . . . . . . . 27Ihackray, 1 . . . . . . . . . . . . . . . . . 16Thompson & Strickland, ....... 166Thompson & Strickland) . ; , . . . . . . . . . . . 168Ucheda, . . . . . . . . . . . . . . . . . . . . . 16Urban et al, . ... . ., . . . . . . . . . . . . . . . 145Urban, Carter, Gaskin and Mucha ... . . . ; . ; . . 60Urban, Carter, Gaskins and Mucha, . . . . . . . . 60Van den Bogaerde, . , . . . . . . . . . . . . . ., 67Varadarajan and Dillon, . . . . . . . . . . . . . 13Von Neumann and Morgenstem . . . . . . . . . . . 88Wagner, ......... 380Ward% Stasch, r................. 0 . . . . ". . . ." 66Ward and Stasch . . . . . . . . . . . . . . . . . . 192Weigelt & MacMillan, . . . . . . . . . . . . . . . 16, - ™ ' : .... ' a - W&3.2S • " * * " *.. • * * • • • •_ii * • • • • ■ 80Weiss, . . . . . ... . . . . . . 16, 80, 81, 145, 170

: e l t . . . , . . . . . . . . ,. . . . 9 0 , 9 2 , 9 5

felt and Karnani . . . . . . . (V. . . . . . .... ̂ 95Wernerfelt, . , . . . . . . . 65, 88, 91-95Woo V . . . . . . . . ; .......... V 47, 49, 237, 240Woo & Cooper . . .<•> . . . . . 50, 129, 207Woo & Cooper, . . . . . .„ . . . . . . . . 16, 27, 235Woo and Cooper . . . . . . . . . . 2, 13, 42, 49, 237Woo and Cooper, . . . . . . . . . . . . . 40, 44, 45Woo and Coqpei ' s . . . . . . r,' V . . . . . . . . . 47WoO, . . . . . . . . . . ,'• . . . * . 16, 27, 48, 145Yavitz & Newman, . . . . . . . . . . . . . . . . .166Yavitz & Newman) . . . . . . . . . . . . . . . . 168Yavitz and Newman,.................. . ... . . . 39Zeithaml & Fry, . . . . . . . . . . . . . . . . . 58Zeithaml and Fry . . ........... A . . . 57, 126

95VX In

Author Edwards G N Name of thesis Market share, profitability and implications for strategy formulation 1994

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