[PDF] Strategic Management - CONCEPTS AND CASES

View - Download Strategic Management - CONCEPTS AND CASES

Previous PDF

Next PDF

This page intentionally left blank

Contents

Preface xvii

Acknowledgments xxiii

About the Author xxvii

Part 1

Overview of Strategic Management 2

Chapter 1

The Nature of Strategic Management 2

MCDONALD"S CORPORATION: DOING GREAT

IN A WEAK ECONOMY 4

What Is Strategic Management? 5

Defining Strategic Management 6& Stages of

Strategic Management 6 & Integrating Intuition

and Analysis 7& Adapting to Change 8

Key Terms in Strategic Management 9

Competitive Advantage 9& Strategists 10 & Vision and Mission Statements 11 & External Opportunities and Threats 11& Internal Strengths and Weaknesses 12 & Long-Term Objectives 13 & Strategies 13 & Annual Objectives 13 & Policies 14

The Strategic-Management Model 14

Benefits of Strategic Management 16

Financial Benefits 17 & Nonfinancial Benefits 18

Why Some Firms Do No Strategic Planning 18

Pitfalls in Strategic Planning 19

Guidelines for Effective Strategic Management 19

Comparing Business and Military Strategy 21

THE COHESION CASE: MCDONALD"S

CORPORATION-2009 27

ASSURANCE OF LEARNING EXERCISES 37

Assurance of Learning Exercise 1A: Gathering Strategy

Information 37

Assurance of Learning Exercise 1B: Strategic Planning for My University 37 Assurance of Learning Exercise 1C: Strategic Planning at a Local Company 38 Assurance of Learning Exercise 1D:Getting Familiar with SMCO 38

Part 2

Strategy Formulation 40

Chapter 2

The Business Vision and Mission 40

WAL-MART: DOING GREAT IN A WEAK ECONOMY 42

What Do We Want to Become? 43What Is Our Business? 43 Vision versus Mission 45 & The Process of Developing Vision and Mission Statements 46

Importance (Benefits) of Vision and Mission

Statements 47

A Resolution of Divergent Views 48

Characteristics of a Mission Statement 49

A Declaration of Attitude 49 & A Customer

Orientation 50 & Mission Statement Components 51

Writing and Evaluating Mission Statements 53

ASSURANCE OF LEARNING EXERCISES 56

Assurance of Learning Exercise 2A: Evaluating Mission

Statements 56

Assurance of Learning Exercise 2B:Writing a Vision and Mission

Statement for McDonald"s Corporation 56

Assurance of Learning Exercise 2C:Writing a Vision and Mission

Statement for My University 57

Assurance of Learning Exercise 2D: Conducting Mission Statement

Research 57

Chapter 3

The External Assessment 58

DUNKIN" BRANDS, INC.: DOING GREAT IN A WEAK

ECONOMY 60

The Nature of an External Audit 61

Key External Forces 61& The Process of Performing an External

Audit 62

The Industrial Organization (I/O) View 63

Economic Forces 63

Social, Cultural, Demographic, and Natural Environment

Forces 66

Political, Governmental, and Legal Forces 68

Technological Forces 69

Competitive Forces 71

Competitive Intelligence Programs 72& Market Commonality and Resource Similarity 74

Competitive Analysis: Porter"s Five-Forces

Model 74

Rivalry Among Competing Firms 75& Potential Entry of New Competitors 76& Potential Development of Substitute Products 77& Bargaining Power of Suppliers 77& Bargaining

Power of Consumers 77

Sources of External Information 78

Forecasting Tools and Techniques 78

Making Assumptions 79

ix Industry Analysis:The External Factor Evaluation (EFE)

Matrix 80

The Competitive Profile Matrix (CPM) 81

ASSURANCE OF LEARNING EXERCISES 86

Assurance of Learning Exercise 3A: Developing an EFE Matrix for

McDonald"s Corporation 86

Assurance of Learning Exercise 3B:The External

Assessment 86

Assurance of Learning Exercise 3C: Developing an EFE Matrix for

My University 87

Assurance of Learning Exercise 3D: Developing a Competitive

Profile Matrix for McDonald"s Corporation 87

Assurance of Learning Exercise 3E: Developing a Competitive

Profile Matrix for My University 87

Chapter 4

The Internal Assessment 90

AMAZON.COM, INC.: DOING GREAT IN A WEAK

ECONOMY. HOW? 92

The Nature of an Internal Audit 93

Key Internal Forces 93& The Process of Performing an Internal

Audit 93

The Resource-Based View (RBV) 96

Integrating Strategy and Culture 97

Management 99

Planning 100& Organizing 100& Motivating 101& Staffing

102& Controlling 102& Management Audit Checklist of

Questions 103

Marketing 103

Customer Analysis 103& Selling Products/Services 103& Product and Service Planning 104& Pricing 105& Distribution

105& Marketing Research 106& Cost/Benefit Analysis 106&

Marketing/Audit Checklist of Questions 106

Finance/Accounting 106

Finance/Accounting Functions 107& Basic Types of Financial

Ratios 108&Finance/Accounting Audit Checklist 113

Production/Operations 113

Production/Operations Audit Checklist 115

Research and Development 115

Internal and External R&D 116& Research and Development

Audit 117

Management Information Systems 117

Strategic-Planning Software 118& Management Information

Systems Audit 119

Value Chain Analysis (VCA) 119

Benchmarking 120

The Internal Factor Evaluation (IFE) Matrix 122

ASSURANCE OF LEARNING EXERCISES 128

Assurance of Learning Exercise 4A: Performing a Financial Ratio

Analysis for McDonald"s Corporation (MCD) 128

Assurance of Learning Exercise 4B: Constructing an IFE Matrix for

McDonald"s Corporation 128

Assurance of Learning Exercise 4C: Constructing an IFE Matrix for

My University 128

Chapter 5

Strategies in Action 130

VOLKSWAGEN AG: DOING GREAT IN A WEAK

ECONOMY. HOW? 132

Long-Term Objectives 133

The Nature of Long-Term Objectives 133& Financial versus

Strategic Objectives 134& Not Managing by

Objectives 135

The Balanced Scorecard 135

Types of Strategies 136

Levels of Strategies 138

Integration Strategies 139

Forward Integration 139& Backward Integration 140

& Horizontal Integration 141

Intensive Strategies 141

Market Penetration 141& Market Development 142

& Product Development 142

Diversification Strategies 143

Related Diversification 144& Unrelated Diversification 144

Defensive Strategies 146

Retrenchment 146& Divestiture 148& Liquidation 149

Michael Porter"s Five Generic Strategies 151

Cost Leadership Strategies (Type 1 and Type 2) 152& Differentiation Strategies (Type 3) 153& Focus Strategies (Type 4 and Type 5) 154 & Strategies for Competing in Turbulent,High-Velocity

Markets 155

Means for Achieving Strategies 155

Cooperation Among Competitors 155& Joint Venture/

Partnering 156& Merger/Acquisition 158&First Mover

Advantages 161 & Outsourcing 161

Strategic Management in Nonprofit and Governmental

Organizations 162

Educational Institutions 162& Medical Organizations 163 & Governmental Agencies and Departments 163

Strategic Management in Small Firms 164

ASSURANCE OF LEARNING EXERCISES 168

Assurance of Learning Exercise 5A:What Strategies Should

McDonald"s Pursue in 2011-2013? 168

Assurance of Learning Exercise 5B:Examining Strategy Articles 168 Assurance of Learning Exercise 5C: Classifying Some Year 2009

Strategies 169

Assurance of Learning Exercise 5D: How Risky Are Various

Alternative Strategies? 169

Assurance of Learning Exercise 5E: Developing Alternative

Strategies for My University 170

Assurance of Learning Exercise 5F: Lessons in Doing Business

Globally 170

Chapter 6

Strategy Analysis and Choice 172

APPLE: DOING GREAT IN A WEAK ECONOMY. HOW? 174

The Nature of Strategy Analysis and Choice 175

The Process of Generating and Selecting Strategies 175 xCONTENTS A Comprehensive Strategy-Formulation Framework 176

The Input Stage 177

The Matching Stage 177

The Strengths-Weaknesses-Opportunities-Threats (SMOT) Matrix

178& The Strategic Position and Action Evaluation (SPACE)

Matrix 181& The Boston Consulting Group (BCG) Matrix 185& The Internal-External (IE) Matrix 188& The Grand Strategy

Matrix 191

The Decision Stage 192

The Quantitative Strategic Planning Matrix (QSPM) 192 & Positive Features and Limitations of the QSPM 195

Cultural Aspects of Strategy Choice 196

The Politics of Strategy Choice 196

Governance Issues 198

ASSURANCE OF LEARNING EXERCISES 205

Assurance of Learning Exercise 6A: Developing a SWOT Matrix for

McDonald"s 205

Assurance of Learning Exercise 6B: Developing a SPACE Matrix for

McDonald"s 205

Assurance of Learning Exercise 6C: Developing a BCG Matrix for

McDonald"s 205

Assurance of Learning Exercise 6D: Developing a QSPM for

McDonald"s 206

Assurance of Learning Exercise 6E: Formulating Individual

Strategies 206

Assurance of Learning Exercise 6F:The Mach Test 206 Assurance of Learning Exercise 6G: Developing a BCG Matrix for

My University 208

Assurance of Learning Exercise 6H:The Role of Boards of

Directors 208

Assurance of Learning Exercise 6I: Locating Companies in a Grand

Strategy Matrix 209

Part 3

Strategy Implementation 210

Chapter 7

Implementing Strategies: Management

and Operations Issues 210

GOOGLE: DOING GREAT IN A WEAK ECONOMY.

HOW? 212

The Nature of Strategy Implementation 213

Management Perspectives 214

Annual Objectives 215

Policies 217

Resource Allocation 219

Managing Conflict 220

Matching Structure with Strategy 220

The Functional Structure 222& The Divisional Structure 222 & The Strategic Business Unit (SBU) Structure 225& The Matrix

Structure 226& Some Do"s and Don"ts in Developing

Organizational Charts 228

Restructuring, Reengineering, and E-Engineering 229

Restructuring 230& Reengineering 231

Linking Performance and Pay to

Strategies 231

Managing Resistance to Change 234

Creating a Strategy-Supportive Culture 235

Production/Operations Concerns When Implementing

Strategies 236

Human Resource Concerns When Implementing

Strategies 237

Employee Stock Ownership Plans (ESOPs) 239& Balancing Work Life and Home Life 240& Benefits of a Diverse Workforce 242 & Corporate Wellness Programs 242

ASSURANCE OF LEARNING EXERCISES 248

Assurance of Learning Exercise 7A: Revising McDonald"s

Organizational Chart 248

Assurance of Learning Exercise 7B: Do Organizations Really

Establish Objectives? 248

Assurance of Learning Exercise 7C: Understanding My University"s

Culture 249

Chapter 8

Implementing Strategies: Marketing,

Finance/Accounting, R&D, and MIS

Issues 250

The Nature of Strategy Implementation 252

JOHNSON & JOHNSON (J&J): DOING GREAT IN A WEAK

ECONOMY. HOW? 252

Current Marketing Issues 253

New Principles of Marketing 254& Advertising Media 256 & Purpose-Based Marketing 257

Market Segmentation 257

Does the Internet Make Market Segmentation Easier? 259

Product Positioning 260

Finance/Accounting Issues 261

Acquiring Capital to Implement Strategies 262

New Source of Funding 266& Projected Financial

Statements 266& Projected Financial Statement for

Mattel, Inc. 268& Financial Budgets 271& Evaluating the Worth of a Business 273& Deciding Whether to

Go Public 275

Research and Development (R&D) Issues 275

Management Information Systems (MIS) Issues 277

ASSURANCE OF LEARNING EXERCISES 282

Assurance of Learning Exercise 8A: Developing a Product-

Positioning Map for McDonald"s 282

Assurance of Learning Exercise 8B: Performing an EPS/EBIT

Analysis for McDonald"s 282

Assurance of Learning Exercise 8C: Preparing Projected Financial

Statements for McDonald"s 282

Assurance of Learning Exercise 8D: Determining the Cash Value of

McDonald"s 283

Assurance of Learning Exercise 8E: Developing a Product-

Positioning Map for My University 283

Assurance of Learning Exercise 8F: Do Banks Require Projected

Financial Statements? 283

CONTENTSxi

Part 4

Strategy Evaluation 284

Chapter 9

Strategy Review, Evaluation, and

Control 284

FAMILY DOLLAR STORES: DOING GREAT IN A WEAK

ECONOMY. HOW? 286

The Nature of Strategy Evaluation 286

The Process of Evaluating Strategies 290

A Strategy-Evaluation Framework 290

Reviewing Bases of Strategy 290& Measuring Organizational

Performance 292& Taking Corrective Actions 294

The Balanced Scorecard 295

Published Sources of Strategy-Evaluation

Information 297

Characteristics of an Effective Evaluation System 298

Contingency Planning 299

Auditing 300

Twenty-First-Century Challenges in Strategic

Management 301

The Art of Science Issue 301& The Visible or Hidden Issue 301 & The Top-Down or Bottom-Up Approach 302

ASSURANCE OF LEARNING EXERCISES 306

Assurance of Learning Exercise 9A: Preparing a Strategy-Evaluation

Report for McDonald"s Corp. 306

Assurance of Learning Exercise 9B: Evaluating My University"s

Strategies 306

Part 5

Key Strategic-Management Topics 308

Chapter 10

Business Ethics/Social Responsibility/

Environmental Sustainability 308

WALT DISNEY: DOING GREAT IN A WEAK ECONOMY.

HOW? 310

Business Ethics 311

Code of Business Ethics 312& An Ethics Culture 313& Bribes

314& Love Affairs at Work 314

Social Responsibility 315

Social Policy 315& Social Policies on Retirement 316

Environmental Sustainability 317

What Is a Sustainability Report? 317& Lack of Standards

Changing 318& Obama Regulations 318& Managing

Environmental Affairs in the Firm 319& Should Students Receive Environmental Training? 319& Reasons Why Firms Should "Be

Green" 320& Be Proactive, Not Reactive 320& ISO

14000/14001 Certification 320& Electric Car Networks Are

Coming 321& The March 2009 Copenhagen Meeting 322

ASSURANCE OF LEARNING EXERCISES 326

Assurance of Learning Exercise 10A: Does McDonald"s Have a Code of Business Ethics? 326Assurance of Learning Exercise 10B:The Ethics of Spying on

Competitors 326

Assurance of Learning Exercise 10C:Who Prepares a Sustainability

Report? 327

Chapter 11

Global/International Issues 328

MARRIOTT INTERNATIONAL: DOING GREAT IN A WEAK

ECONOMY. HOW? 330

Multinational Organizations 331

Advantages and Disadvantages of International

Operations 332

The Global Challenge 333

Globalization 334& A Weak Economy 335

United States versus Foreign Business Cultures 335 The Mexican Culture 337& The Japanese Culture 338&

Communication Differences Across Countries 338

Worldwide Tax Rates 339

Joint Ventures in India 339

ASSURANCE OF LEARNING EXERCISES 343

Assurance of Learning Exercise 11A: McDonald"s Wants to Enter

Africa. Help Them. 343

Assurance of Learning Exercise 11B: Does My University Recruit in

Foreign Countries? 343

Assurance of Learning Exercise 11C: Assessing Differences in

Culture Across Countries 343

Assurance of Learning Exercise 11D: How Well Traveled Are

Business Students at Your University? 344

Part 6

Strategic-Management Case Analysis 346

How to Prepare and Present a Case

Analysis 346

What Is a Strategic-Management Case? 348

Guidelines for Preparing Case Analyses 348

The Need for Practicality 348& The Need for

Justification 348& The Need for Realism 348& The Need for Specificity 349& The Need for Originality 349& The Need to

Contribute 349

Preparing a Case for Class Discussion 349

The Case Method versus Lecture Approach 349& The Cross-

Examination 350

Preparing a Written Case Analysis 350

The Executive Summary 350& The Comprehensive Written Analysis 351& Steps in Preparing a Comprehensive Written

Analysis 351

Making an Oral Presentation 351

Organizing the Presentation 351& Controlling Your

Voice 352& Managing Body Language 352& Speaking from Notes 352& Constructing Visual Aids 352& Answering Questions 353& Tips for Success in Case Analysis 353& Content Tips 353& Process Tips 354& Sample Case Analysis

Outline 355

xiiCONTENTS

STEPS INPRESENTING ANORALCASEANALYSIS356

Oral Presentation-Step 1:Introduction (2 minutes) 356 Oral Presentation-Step 2:Mission/Vision (4 minutes) 356 Oral Presentation-Step 3:Internal Assessment (8 minutes) 356 Oral Presentation-Step 4:External Assessment (8 minutes) 357

Oral Presentation-Step 5:Strategy Formulation (14 minutes) 357Oral Presentation-Step 6:Strategy Implementation (8 minutes) 357

Oral Presentation-Step 7:Strategy Evaluation (2 minutes) 358 Oral Presentation-Step 8:Conclusion (4 minutes) 358

Name Index 359

Subject Index 363

CONTENTSxiii

xivCONTENTS Cases

HOSPITALITY/ENTERTAINMENT

1. Walt Disney Company - 2009, Mernoush Banton 1

2. Merryland Amusement Park - 2009, Gregory Stone 14

AIRLINES

3. JetBlue Airways Corporation - 2009, Mernoush Banton 26

4. AirTran Airways, Inc. - 2009, Charles M. Byles 37

RETAIL STORES

5. Family Dollar Stores, Inc. - 2009, Joseph W. Leonard 50

6. Wal-Mart Stores, Inc. - 2009,Amit J. Shah and Michael L. Monahanat 59

7. Whole Foods Market, Inc. - 2009, James L. Harbin and Patricia

Humphrey 73

8. Macy"s, Inc. - 2009, Rochelle R. Brunson and Marlene M. Reed 83

INTERNET BASED

9. Yahoo! Inc. - 2009, Hamid Kazeroony 91

10. eBay Inc. - 2009, Lori Radulovich 99

FINANCIAL

11. Wells Fargo Corporation - 2009, Donald L. Crooks, Robert S. Goodman,

and John Burbridge 111

RESTAURANTS

12. Krispy Kreme Doughnuts (KKD) - 2009, John Burbridge and

Coleman Rich 120

13. Starbucks Corporation - 2009, Sharynn Tomlin 129

NONPROFIT

14. The United States Postal Service (USPS) - 2009, Fred and

Forest David 138

15. National Railroad Passenger Corporation (AMTRAK) - 2009,

Kristopher J. Blanchard 150

16. Goodwill of San Francisco,San Mateo and Marin Counties - 2009,

Mary E.Vradelis 158

TRANSPORTATION

17. Harley-Davidson, Inc. - 2009, Carol Pope and Joanne Mack 166

18. Ford Motor Company - 2009,Alen Badal 176

FOOD

19. Kraft Foods Inc. - 2009, Kristopher J. Blanchard 184

20. Hershey Company - 2009,Anne Walsh and Ellen Mansfield 192

PERSONAL CARE

21. Johnson & Johnson - 2009, Sharynn Tomlin, Matt Milhauser,

Bernhard Gierke,Thibault Lefebvre, and Mario Martinez 201

22. Avon Products Inc. - 2009, Rochelle R. Brunson and

Marlene M. Reed 212

BEVERAGE

23. Molson Coors - 2009,Amit J. Shah 220

24. PepsiCo - 2009, John and Sherry Ross 232

CONTENTSxv

HEALTH CARE

25. Pfizer, Inc. - 2009,Vijaya Narapareddy 243

26. Merck & Company Inc. - 2010, Mernoush Banton 252

SPORTS

27. Nike, Inc. - 2010, Randy Harris 261

28. Callaway Golf Company - 2009,Amit J. Shah 272

ENERGY

29. Chevron Corporation - 2009, Linda Herkenhoff 282

This page intentionally left blank

Preface

Why the Need for This New Edition?

The global economic recession has created a business world today that is quite different and more complex than it was just two years ago when the previous edition of this text was published. Thousands of businesses have vanished, and consumers have become extremely price sensitive and oftentimes reluctant purchasers of products and services. Very tight credit markets, high unemployment, and millions of new entrepreneurs have also changed the business landscape. Business firms that have survived the last threequotesdbs_dbs17.pdfusesText_23

[PDF] concept of total quality management

[PDF] concept of total quality management (tqm)

[PDF] concept of total quality management in education

[PDF] concept of total quality management in pharmaceutical industry ppt

[PDF] concept of total quality management in production management

[PDF] concept of total quality management slideshare

[PDF] concept of yoga

[PDF] concept scoring

[PDF] concept screening and concept scoring ppt

[PDF] concept screening and scoring

[PDF] concept screening and scoring involved

[PDF] concept screening definition

[PDF] concept screening example

[PDF] concept screening in product design

[PDF] concept screening key criteria