Strategic Management: Text and Cases 8th Edition

Teaching Note: Case 1 Robin Hood Case Objectives 1. To provide an introduction to the conceptual framework of strategic management using a non-business situation. using a non-business situation. using a non-business situation. 2. To introduce students to the process of problem identification and potential solution analysis that will be used in case discussions

Teaching Note: Case 10 Ann Taylor: Survival in Specialty Retail Case Objectives 1. To investigate the choices of business and corporate-level strategies in a highly turbulent industry. 2. To examine how external and internal forces affect competitive strategy. 3. To discuss how leadership can use strategic control and organizational design concepts

CASE UPDATE ANN acquired by Ascena: Given the overall turmoil in the specialty retail industry, and ANNs struggles, it was not surprising that in May, 2015 Ascena Retail Group purchased ANN for about $2.16 billion. According to one analyst, The takeover unites the Ann Taylor and Loft brands with Ascenas Lane

NOTE ADDITIONAL READING, WEB LINKS: Visit the websites of Ann Taylor and Ann Taylor LOFT. Do you see any difference in the fashions? http://www.anntaylor.com/ http://www.loft.com/ A new competitive strategy to compete in the high-end womens clothing space was announced by ANN in September 2007: http://online.wsj.com/public/article/SB118972474680527004.html Given the potential customer confusion over how Ann Taylor differentiates

Teaching Note: Case 11 GreenWood Resources: A Global Sustainable Venture in the Making Case Objectives 1. To assess the advantages and disadvantages of different international entry modes. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be used for this case.

1. SECONDARY QUESTION: What forces in the external environment might affect GreenWoods choice of strategy? NOTE this section does not have any accompanying PowerPoint slides. Referencing Chapter 2: Analyzing the External Environment Organizational leaders must become aware of factors in the overall environment that might affect their ability to create a competitive advantage.

EPILOGUE In July 2010, GreenWoods senior management submitted the final investment report for the Luxi project to the investment committee for approval. The committee rejected the proposal on the grounds that the land lease expenses, as a main fixed cost item, would be too burdensome. proposal on the grounds that the land

Teaching Note: Case 12 Tata Starbucks: How to Brew a Sustainable Blend for India Case Objectives 1. To assess the advantages and disadvantages of different international entry modes. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be used for this

1. SECONDARY QUESTION: What forces in the industry environment might affect Tata Starbucks choice of strategy? And what does an internal analysis tell us about this? What intellectual assets are most important to Tata Starbucks? NOTE this section does not have any accompanying PowerPoint slides. Referencing Chapter 2: Analyzing the External Environment

Teaching Note: Case 13 Avon: A New Era? Case Objectives 1. To examine how the competitive forces in an industry affect strategy. 2. To examine how formulating a strategy involves assessment of internal activities and resources. See the table below to determine where to use this case: NOTE: There are both PRIMARY and

Teaching Note: Case 14 The Boston Beer Company Case Objectives 1. To examine how the competitive forces in an industry affect choice of strategy. 2. To examine how formulating a competitive strategy involves assessment of internal activities and resources. See the table below to determine where to use this case: NOTE: There are

NOTE ADDITIONAL BACKGROUND READING AND VIDEO: Historically, the global beer industry has looked to acquisitions or product innovations to fuel growth in the past. In this report from 2008 it appears that the opportunities for continued acquisitions were becoming limited. This meant major players would have to look at regional/local brewers

Teaching Note: Case 15 Zynga: Room for a Final Round or Is the Game Over? Case Objectives 1. To investigate how human capital assets can be used to craft a strategic advantage. 2. To examine the role of strategic controls and leadership in implementing strategy. 3. To discuss the choice

Referencing Chapter 5: Business-Level Strategy A competitive strategy is supported by intangible assets. Zynga had great strengths initially in its intellectual and social capital. These human resources and alliance partners allowed Zynga to create products that were unique and valuable to customers, at least in the beginning. intellectual and social capital.

Teaching Note: Case 16 Apple Inc.: Still Taking a Bite Out of the Competition? Case Objectives 1. To investigate strategic options in a fast-moving industry. 2. To examine how external and internal forces affect competitive strategy. 3. To discuss the leadership implications for managing innovation. See the table below to determine where

NOTE ADDITIONAL WEB LINKS TO FINANCIAL DATA: Do a search for Apple Inc.s current financial performance. Start by plotting percent change in stock price for the last two years, compared to computing competitors Dell, HP, and Microsoft: http://finance.yahoo.com/echarts? s=AAPL#chart2:symbol=aapl;range=2y;compare=dell+hpq+msft;indicator=volume;charttype=li ne;crosshair=on;ohlcvalues=0;logscale=off;source=undefined Also look at the numbers for a direct competitor comparison: http://finance.yahoo.com/q/co?s=AAPL Apple has a

4. What is leaderships role in Apples strategic implementation? Referencing Chapter 10: Creating Effective Organizational Designs Strategy consists of analysis (setting goals, assessing the internal and external environment of the firm), formulation (deciding which industries to compete in and how to compete in those industries), and implementation, where organizational leaders allocate

Teaching Note: Case 17 Campbell: How to Keep the Soup Simmering Case Objectives 1. To help students understand how a firm makes decisions about what business the corporation should compete in and how growth should be accomplished. See the table below to determine where to use this case: NOTE: Although the case

NOTE ADDITIONAL WEB LINKS TO FINANCIAL INFORMATION: One interesting way to evaluate the competitiveness in the industry is to look at comparative financial performance from the perspective of an investor. Since Campbell is a publicly-traded firm, take a look at http://finance.yahoo.com/q/co?s=CPB to see how it compares with its peers. 2. What internal

Teaching Note: Case 18 United Way Worldwide Case Objectives 1. To apply the concepts of strategic management to a nonprofit organization. 2. To evaluate the impact of negative publicity on a nonprofit organization and the implications for strategic leadership in such a case. See the table below to determine where to use

Teaching Note: Case 19 The Global Casino Industry Case Objectives 1. To examine industry dynamics and how the structure of an industry has implications for competition. See the table below to determine where to use this case: Chapter Use Key Concepts Additional Readings or Exercises 2: External Environment Porters five forces model; strategic groups NOTE

Teaching Note: Case 2 Edward Marshall Boehm, Inc. Case Objectives 1. To provide an introduction to the conceptual framework of strategic management. 2. To introduce students to the process of problem identification and potential solution analysis that will be used in case discussions throughout the semester. analysis that will be used

Referencing Chapter 9: Strategic Control & Corporate Governance See the concept of strategic control, especially the roles of informational and behavioral control in the formulation and implementation of strategies. The contemporary approach to strategic controls allows managers to adapt to and anticipate changes in both the internal and external environment.

Teaching Note: Case 20 eBay Case Objectives 1. To discuss the decisions and actions that a firm has to undertake to sustain a competitive advantage, especially when pursuing international growth. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be

1. What source of competitive advantage does eBay have, and is that position supported by its resources and assets? Does eBay deal effectively with its external environment in Asia? In order to fully appreciate eBays difficulties with its growth strategies in Asia, it may help if students can step back and

Teaching Note: Case 21 Yahoo! Case Objectives 1. To discuss how leadership can implement strategy. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be used for this case. The Teaching Note gives guidance for both of these, however the

Referencing Chapter 4: Intellectual Assets See the concepts of intellectual capital, human capital, and social capital, all of which are intangible assets that a company such as Yahoo needs to have in order to compete successfully. Intellectual capital is a measure of the value of a firms intangible assets, its

Teaching Note: Case 22 World Wrestling Entertainment Case Objectives 1. To discuss corporate strategy choices and how to apply the concepts of innovation to a firm in the entertainment industry. 2. To examine how tangible and intangible resources are tied to a firms success. See the table below to determine where

Teaching Note: Case 23 QVC Case Objectives 1. To apply the concepts of strategic management and demonstrate the interaction between the components of strategic management: strategic analysis, strategic formulation, and strategic implementation. See the table below to determine where to use this case: Chapter Use Key Concepts Additional Readings or Exercises 1: Strategy

Teaching Note: Case 24 Nintendos Wii U Case Objectives 1. To examine how external and internal forces affect competitive strategy. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be used for this case. The Teaching Note gives guidance

Tangible Resources: Financial: large holdings in cash & equivalents, but total income and asset value has declined from 2010. Physical: presumed adequate. Technological: access to state-of-the-art technology tools, support for independent research created new technological development opportunities in the past. created new technological development opportunities in the past. created new technological development opportunities in

Teaching Note: Case 25 McDonalds Case Objectives 1. To investigate the key external environmental issues that can affect a firms strategy. 2. To examine how a reevaluation of strategy involves assessment of internal activities and resources. See the table below to determine where to use this case: NOTE: There are both PRIMARY and

NOTE - ADDITIONAL EXERCISES, VIDEO VIEWING: One interesting way to evaluate the competitiveness in the industry is to look at comparative financial performance from the perspective of an investor. Since McDonalds (MCD) is a publicly traded firm, take a look at http://finance.yahoo.com/q/co?s=MCD to see how it compares with its peers. Regarding

Teaching Note: Case 26 Proctor & Gamble Case Objectives 1. To investigate what it means to be a strategic leader. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be used for this case. The Teaching Note gives guidance for

1. OPTIONAL QUESTION: What were the major organizational changes Lafley made at P&G, and what challenges does he face now? NOTE: There are no PowerPoint slides to accompany this discussion. Referencing Chapter 10: Organizational Design Organizational structure refers to the formalized patterns of interactions that link a firms tasks, technologies, and people. Structure

Teaching Note: Case 27 Microfinance: Going Global and Going Public? Case Objectives 1. To encourage discussion of the importance of stakeholder management and the implications of a firms vision, mission and goals for coherence in values and direction of organizational strategy. organizational strategy. organizational strategy. 2. To demonstrate the effect of industry or product

Teaching Note: Case 28 Samsung Electronics Case Objectives 1. To help students understand the challenges and pitfalls of leadership and managing the innovation process. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be used for this case. The Teaching

Referencing Chapter 7: International Strategy Samsung was a global company. When a firm chooses to do business internationally, it must assess issues of consumer demand, the degree to which resources such as skilled labor and other supplier or supporting infrastructure are developed and available, the speed with which such resources can

Teaching Note: Case 29 Heineken Case Objectives 1. To investigate how a firm competes in a global market. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be used for this case. The Teaching Note gives guidance for the PRIMARY

Teaching Note: Case 3 American International Group and the Bonus Fiasco Case Objectives 1. To help students understand how the ethical orientation of leadership is a key factor in promoting ethical behavior. promoting ethical behavior. promoting ethical behavior. 2. To help students understand the role of strategic control mechanisms in aligning the interests

1. What controls did AIG have in place, and how did those controls affect its corporate behavior? Carefully developed policies and procedures guide behavior so that all employees will be encouraged to behave in an ethical manner. However, they must be reinforced with effective communication, enforcement, and monitoring, as well as

Teaching Note: Case 30 FreshDirect: Is It Really Fresh? Case Objectives 1. To investigate how to compete in a crowded industry. See the table below to determine where to use this case: Note: Although this case is best positioned as a business and entrepreneurial strategy case, it can be used to illustrate

Organizational: Other than the initial energy and drive required to start and grow the company to this level, there were no obvious value-creating organization resources to this level, there were no obvious value-creating organization resources to this level, there were no obvious value-creating organization resources Intangible Resources: Human: Expert staffing in production areas, company

Teaching Note: Case 31 Johnson & Johnson Case Objectives 1. To help students understand how a firm makes decisions about what businesses the corporation should compete in, and how growth should be accomplished. should compete in, and how growth should be accomplished. should compete in, and how growth should be accomplished. 2. To

Teaching Note: Case 32 General Motors Case Objectives 1. To examine how external and internal forces affect competitive strategy. 2. To investigate the choices of business, corporate-level and international strategies in a highly turbulent industry. See the table below to determine where to use this case: NOTE: although this case is primarily

In 2011, some analysts were concerned about Ackersons decisions: http://www.fool.com/investing/general/2011/01/31/strange-days-at-general-motors.aspx? source=isesitlnk0000001&mrr=0.13 Several opinions existed for GMs future prospects in July 2009. See these analyses: http://money.cnn.com/2009/07/10/news/companies/new_gm_outlook/index.htm? source=yahoo_quote (The above contains a video interview of new CEO Fritz Henderson discussing both the U.S. andglobal business outlook.) (The above contains a video interview of new CEO Fritz Henderson discussing

Teaching Note: Case 33 Is ONE Ford Really Working? Case Objectives 1. To examine how external and internal forces affect competitive strategy. 2. To investigate the choices of business, corporate-level, and international strategies in a highly turbulent industry. highly turbulent industry. highly turbulent industry. 3. To discuss how leadership can

NOTE ADDITIONAL WEB LINKS TO FINANCIAL DATA, EMBEDDED VIDEO: Ford Motor Company has created a multimedia website. Take a look here: http://www.thefordstory.com/ Heres one website summarizing Fords status and news events. Examine Fords stock price over the last five years using the tools available. Also view all auto and truck manufacturers

Referencing Chapter 8: Entrepreneurial Strategy and Competitive Dynamics Entrepreneurship involves the creation of new value by an existing organization or new venture that involves the assumption of risk. that involves the assumption of risk. that involves the assumption of risk. For an entrepreneurial venture to create new value, three factors

Teaching Note: Case 34 Emirates Airline Case Objectives 1. To examine how external and internal forces affect competitive strategy. 2. To investigate the challenges of choosing an appropriate competitive strategy. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be used

NOTE WEB-LINKS: To understand how the European market views competition, see http://airlines.iata.org/blog/2015/06/working-towards-an-effective-aviation-strategy-from- regulators. According to this report in 2015, the European Union feels that a common European strategy is needed: Other regions put aviation at the centre of their economic strategies. Fierce global competition, paired with a relative loss of capacity at

Teaching Note: Case 35 Cirque du Soleil Case Objectives 1. To discuss how leadership can implement strategy and manage innovation. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be used for this case. The Teaching Note gives guidance for

Teaching Note: Case 36 Pixar Case Objectives 1. To investigate how external environmental issues can affect a firms strategy. 2. To examine how a reevaluation of strategy involves assessment of internal activities and resources. 3. To discuss the decisions and actions that a firm has to undertake to sustain a competitive advantage. See

1. What key internal resources does Pixar have that might help it support its competitive strategy? Referencing Chapter 3: Analyzing the Internal Environment of the Firm From Chapter 3, a firms value chain helps support its basis of competitive advantage. Pixars value chain can be examined to ascertain the various activities

Teaching Note: Case 4 Southwest: Is LUV Soaring? Case Objectives 1. To discuss the choice of competitive strategy, and options for growth. 2. To examine how external and internal forces affect competitive strategy. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that

Referencing Chapter 4: Recognizing a Firms Intellectual Assets As mentioned, Southwest was known for its human relations. The human resources department was called the People Department to reflect the emphasis placed on its employees, i.e., the human capital. This case provides ample scope to discuss how Southwest attracts and retains

OPTIONAL EXPANDED DISCUSSION: Assess the effectiveness of Southwest Airlines leadership, and the use of strategic controls. Southwest is a great case to use to demonstrate the importance of strategic leadership, and how decisions about how to control operational elements can make a great difference in the success of a given strategy.

Teaching Note: Case 5 JetBlue Airlines: Getting Over the Blues? Case Objectives 1. To investigate the challenges of choosing an appropriate competitive strategy. 2. To examine how external and internal forces affect competitive strategy. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary

What does all this say about the industry, and JetBlue? Regarding the airline industry, a 2007 article at The Motley Fool http://www.fool.com/investing/general/2007/06/15/remove-that-clothespin-from-your- nose.aspx said Even Warren Buffett is skeptical about making money in airlines (he should know from his experience with USAir). In a 2002 interview he was famously quoted as saying: If

Teaching Note: Case 6 Backers Beware: Kickstarter Is Not A Store Case Objectives 1. To understand the importance of strategic leadership and managing innovation, especially when pursing an entrepreneurial growth strategy. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters that can be

1. What is it about the initial strategic analysis process that helps a firm identify a business opportunity? How might the external environment affect Kickstarters entrepreneurial strategy? Any discussion of strategy assumes an understanding of the strategy concept. See Chapter 1, Exhibit 1.1: Strategic management consists of the analyses, decisions, and

Teaching Note: Case 7 Weight Watchers International Inc. Case Objectives 1. To investigate choice of competitive strategy in a crowded industry environment. 2. To examine how external and internal forces affect competitive strategy. See the table below to determine where to use this case: NOTE: There are both PRIMARY and Secondary chapters

1. What are key forces in the general and industry environments that affect Weight Watchers choice of strategy? Referencing Chapter 2: Analyzing the External Environment - Organizational leaders must become aware of factors in the overall environment that might affect their ability to create a competitive advantage. So how do managers

Teaching Note: Case 8 Dippin Dots: Is the Future Frozen? Case Objectives 1. To discuss the decisions and actions that a firm has to undertake to sustain a competitive advantage. 2. To understand the importance of managing innovation, especially when pursing an entrepreneurial growth strategy. entrepreneurial growth strategy. entrepreneurial growth strategy. See the table

According to the current information, the 2013 initial franchise fee is $15,000. See http://www.dippindots.com/business/franchising.html Dippin Dots direct competitor Mini Melts does not franchise shops, but instead supports dealers vending machines that dispense the pelleted ice cream dessert worldwide. Heres a story of Mini Melts distribution strategy, announcing the 2013 partnership

Teaching Note: Case 9 Jamba Juice Case Objectives 1. To investigate choice of competitive strategy in a crowded industry environment. 2. To examine how external and internal forces affect competitive strategy and options for innovation and growth. See the table below to determine where to use this case: NOTE: There are both

Tangible Resources: Financial: Jamba Juice had struggled with strategy here. The recent strategy to increase the number of stores, and increase customer traffic was a way to fix lagging finances. CEO Whites emphasis on an asset light model going forward meant costs could be further contained. CEO Whites emphasis on an asset

part 1 Strategic Analysis Chapter 1 Strategic Management: Creating Competitive Advantages.... 2 (1-2) What Is Strategic Management?.............................................................. 8 (1-5) Defining Strategic Management...................................................................................... 8 (1-5) The Four Key Attributes of Strategic Management......................................................... 9 (1-6) The Strategic Management Process.......................................................... 10 (1-7) Intended versus Realized Strategies................................................................................. 10 (1-7) Strategy Analysis.............................................................................................................. 12 (1-7) Strategy Formulation....................................................................................................... 14 (1-8)

2. The Triple Bottom Line: Incorporating Financial as well as Environmental and Social Costs Next, we state that many companies are measuring what they call the triple bottom line. Such a technique involves an assessment of environmental, social, and financial performance. We state that environmental sustainability is now a value embraced by

Strategic Coherence: What is the mission of your organization? What are the strategic objectives of the department or unit you are working for? In what ways does your own role contribute to the mission and objectives? What can you do differently in order to help the organization attain its mission

Chapter 10 Creating Effective Organizational Designs............................... 314 (10-2) Traditional Forms of Organizational Structure...................................... 316 (10-4) Patterns of Growth of Large Corporations: Strategy-Structure Relationships............... 316 (10-5) Simple Structure............................................................................................................... 318 (10-5) Functional Structure........................................................................................................ 318 (10-5) Divisional Structure......................................................................................................... 320 (10-7) Matrix Structure............................................................................................................... 323 (10-10) International Operations: Implications for Organizational Structure............................ 324 (10-11) Global Start-Ups: A

F. International Operations: Implications for Organizational Structure Consistency between strategy and structure is required to be successful in global markets. As firms expand into foreign markets, changes in structure follow changes in strategy. As firms expand into foreign markets, changes in structure follow changes in strategy. As firms expand into foreign markets, changes in

1. Challenges and Risks Despite their many advantages, alliances often fail to meet expectations. One reason is that unique managerial skills are requiredmanagers who can find good partners, build win-win relationships, and achieve the right balance of freedom and control. Point out that some alliances are short-term only and may be

3. What are the relative advantages and disadvantages of the types of organizational structuresimple, functional, divisional, matrixdiscussed in the chapter? Response: The simple structure has advantages of Being very effective and efficient in the coordination of activities Having control systems and performance evaluation that are efficient and informal Implementing decision making that is

Chapter 11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization...................................................... 348 (11-2) Leadership: Three Interdependent Activities.......................................... 350 (11-4) Setting a Direction........................................................................................................... 351 (11-5) Designing the Organization............................................................................................. 351 (11-6) Nurturing a Culture Committed to Excellence and Ethical Behavior............................. 352 (11-7) Getting Things Done: Overcoming Barriers and Using Power............. 355 (11-9) Overcoming Barriers

B. Using Power Effectively Leaders derive their power from many bases. There are two primary types of power: Organizational (which includes legitimate, reward, coercive, and information power) and personal (which includes referent and expert power). Organizational (which includes legitimate, reward, coercive, and information power) and personal (which includes referent and expert

B.Integrity-Based versus Compliance-Based Organizational Ethics There is an important link between organizational integrity and the personal integrity of an organizations members. While there cant be high-integrity organizations without high- integrity individuals, individual integrity is seldom self-sustaining. Even good people can lose their bearings when faced with pressures, temptations, and heightened performance

End of Chapter Teaching Notes Chapter 11: Strategic Leadership: Creating a Learning Organization and an Ethical Organization Summary Review Questions 1. Three key activitiessetting a direction, designing the organization, and nurturing a culture and ethicsare all part of what effective leaders do on a regular basis. Explain how these three activities are interrelated. Response: Leadership is

Chapter 12 Managing Innovation and Fostering Corporate Entrepreneurship...................................................... 380 (12-2) Managing Innovation................................................................................. 382 (12-4) Types of Innovation.......................................................................................................... 382 (12-4) Challenges of Innovation................................................................................................. 384 (12-5) Cultivating Innovation Skills............................................................................................ 387 (12-7) Defining the Scope of Innovation..................................................................................... 387 (12-8) Managing the Pace of Innovation.................................................................................... 389 (12-9) Staffing to Capture Value from Innovation...................................................................... 389 12-9) Collaborating

G. Collaborating with Innovation Partners Innovation partners can provide skills and insights that are often needed to make innovation projects succeed. Strategic partnering has other benefits as well. It requires firms to identify their strengths and weaknesses and make choices about which capabilities to leverage, which need further development, and which

IV. Entrepreneurial Orientation Entrepreneurial orientation (EO) refers to the strategy-making practices and decision- making styles that businesses use in identifying and launching corporate ventures. It consists of five dimensions which work together to enhance a firms entrepreneurial performanceautonomy, innovativeness, proactiveness, competitive aggressiveness, and risk taking. five dimensions which work together to enhance a

VII. SUMMARY To remain competitive in todays economy, established firms must find new avenues for development and growth. This chapter has addressed how innovation and corporate entrepreneurship can be a means of internal venture creation and strategic renewal, and how an entrepreneurial orientation can help corporations enhance their competitive

Chapter 13 Analyzing Strategic Management Cases................................... 416 (13-2) Why Analyze Strategic Management Cases?.......................................... 417 (13-2) How to Conduct a Case Analysis.............................................................. 419 (13-5) Become Familiar with the Material................................................................................. 421 (13-6) Identify Problems............................................................................................................. 422 (13-6) Conduct Strategic Analyses............................................................................................. 422 (13-7) Propose Alternative Solutions.......................................................................................... 424 (13-9) Make Recommendations.................................................................................................. 424 (13-9) How to Get the Most

III. How to Get the Most from Case Analysis Strategic management is a highly integrative task that draws on many areas of specialization at several levels, from the individual to the whole society. Thus, case analysis is enriching as a learning tool because it taps into many resources and skills besides

Chapter 2 Analyzing the External Environment of the Firm: Creating Competitive Advantages............................................................. 36 (2-2) Creating the Environmentally Aware Organization............................... 38 (2-3) The Role of Scanning, Monitoring, Competitive Intelligence, and Forecasting................................................................................................... 39 (2-4) SWOT Analysis................................................................................................................. 42 (2-9) The General Environment......................................................................... 43 (2-9) The Demographic Segment.............................................................................................. 45 (2-10) The Sociocultural Segment.............................................................................................. 45 (2-11) The Political/Legal Segment............................................................................................

B. The Sociocultural Segment Sociocultural forces influence the values, beliefs, and lifestyles of a society. Examples include a higher percentage of women in the workforce, dual-income families, increases in the number of temporary workers, greater concern for healthy diets and physical fitness, greater interest in the environment, and families postponing having

Discussion Question 37: What are some other ways that end users can increase their buying power by using the Internet? STRATEGY SPOTLIGHT 2.5 addresses the role of the Internet in shaking up the legal services industry. It has clearly led to an increase in the power of buyers. services industry. It has

Chapter 3 Assessing the Internal Environment of the Firm...................... 74 (3-2) Value-Chain Analysis................................................................................. 76 (3-3) Primary Activities............................................................................................................ 77 (3-4) Support Activities............................................................................................................. 80 (3-7) Interrelationships among Value-Chain Activities within and across Organizations......................................................................... 85 (3-9) Integrating Customers into the Value Chain.................................................................... 85 (3-10) Applying the Value Chain to Service Organizations........................................................ 87 (3-11) Resource-Based View

II. Resource-Based View of the Firm The resource-based view of the firm (RBV) combines two perspectives: (1) the internal analysis of phenomena within a company, and (2) an external analysis of the industry and its competitive environment. It extends SWOT analysis by combining internal and external perspectives and provides a useful

IIV. Issue for Debate This is an issue that is about brand value and how overextending a brand can erode its value. The World Triathlon Organization (which holds the Ironman competitions) extended its brand name to products that were less than equivalent in order to enhance revenues and profits.In the

End of Chapter Teaching Notes Chapter 3: Assessing the Internal Environment of the Firm Summary Review Questions 1. SWOT analysis is a technique to analyze the internal and external environment of a firm. What are its advantages and disadvantages? (page 76) Response: SWOT provides a useful starting point for improving firms and better positioning them for

Chapter 4 Recognizing a Firms Intellectual Assets: Moving beyond a Firms Tangible Resources........................... 108 (4-2) The Central Role of Knowledge in Todays Economy............................ 110 (4-5) Human Capital: The Foundation of Intellectual Capital....................... 112 (4-6) Attracting Human Capital................................................................................................ 114 (4-7) Developing Human Capital............................................................................................. 116 (4-11) Retaining Human Capital................................................................................................ 118 (4-15) Enhancing Human Capital: Redefining Jobs

B. Developing Human Capital Organizations must do more than merely hire top-level talent and expect the skills and capabilities of those employees to remain current throughout their employment. Rather, training and development must take place. capabilities of those employees to remain current throughout their employment. Rather, training and development must take place. capabilities

C. The Potential Downside of Social Capital To provide balance to the discussion, it is useful to address some of the downsides of social capital. There are primarily two issues: First, when people identify strongly with a group they sometimes support ideas that are suboptimal or simply wrong. If there are strong

Chapter 4: Recognizing a Firms Intellectual Assets Refer to Exhibit 4.7: Issues to Consider in Creating Value through Human Capital, Social Capital, and Technology. Ask students in a group to use this checklist to evaluate an organization that they are familiar with. (Obviously, the students wont have a common experience but they

part 2 Strategic Formulation Chapter 5 Business-Level Strategy: Creating and Sustaining Competitive Advantages...................... 146 (5-2) Types of Competitive Advantage and Sustainability.............................................................. 148 (5-4) Overall Cost Leadership............................................................................................................. 148 (5-5) Differentiation............................................................................................................................ 153 (5-7) Focus.......................................................................................................................................... 159 (5-11) Combination Strategies: Integrating Overall Low Cost and Differentiation.............................. 161 (5-12) Can Competitive Strategies Be Sustained? Integrating and Applying Strategic

Discussion Question 20: Would customers be willing to pay higher prices for such customized services? Discussion Question 21: Do you believe that this approach might fit a majority or a minority of firms that seek consulting services? What type of firms (and what type of industries) may be more interested? 2. Potential

This point is part of a larger issue of having students examine and assess firms with which they are interviewing. They should think of how the firm and its position provide opportunities for them. Also, they can determine if there is a good fit between them and the firms to which

Chapter 6 Corporate-Level Strategy: Creating Value through Diversification.............................................................................. 180 (6-2) Making Diversification Work: An Overview........................................... 183 (6-5) Related Diversification: Economies of Scope and Revenue Enhancement............................................................ 184 (6-6) Leveraging Core Competencies....................................................................................... 184 (6-7) Sharing Activities............................................................................................................. 186 (6-8) Related Diversification: Market Power................................................... 187 (6-9) Pooled Negotiating Power............................................................................................... 187 (6-9) Vertical Integration.......................................................................................................... 188 (6-10) Unrelated Diversification: Financial

A. Portfolio Management Here, the key concept is the idea of a balanced portfolio of businesses. This consists of businesses whose profitability, growth, and cash flow characteristics would complement each other, and add up to satisfactory overall corporate performance. businesses whose profitability, growth, and cash flow characteristics would complement each other, and

VIII. Reflecting on Career Implications Below, we provide some suggestions on how you can lead the discussion on the career implications for the material in Chapter 6. Corporate-Level Strategy: Is your current employer a single business firm or a diversified firm? If it is diversified, does it pursue related or unrelated

Chapter 7 International Strategy: Creating Value in Global Markets......................................................................................................................... 212 (7-2) The Global Economy: A Brief Overview................................................................................ 214 (7-4) Factors Affecting a Nations Competitiveness........................................................................ 215 (7-5) Factor Endowments.................................................................................................................... 215 (7-5) Demand Conditions.................................................................................................................... 216 (7-6) Related and Supporting Industries............................................................................................. 216 (7-7) Firm Strategy, Structure, and Rivalry......................................................................................... 216 (7-7) Concluding Comment on Factors Affecting a Nations

A. Potential Risks of International Expansion There are also many potential risks associated with international expansion. To help companies assess such risks, rating systems have been developed. EXHIBIT 7.3 depicts a sample of country risk ratings from AM Best. In the EXHIBIT, note that the lower the score, the higher the countrys

A. Licensing and Franchising 1. Benefits Licensing and franchising are both forms of contractual arrangements. Franchise contracts typically include a broader range of factors in an operation and have a longer period during which the agreement is in effect. Franchising has the advantage of limiting the risk exposure that a firm has

3. Explain the two opposing forcescost reduction and adaptation to local marketsthat firms must deal with when they go global. Response: As firms go global, they gain an ability to reduce costs by exploiting economies of scale, reducing costs of research and development, extending the product life cycle, and locating operations optimally.

Chapter 8 Entrepreneurial Strategy and Competitive Dynamics............. 248 (8-2) Recognizing Entrepreneurial Opportunities........................................... 250 (8-5) Entrepreneurial Opportunities......................................................................................... 250 (8-5) Entrepreneurial Resources............................................................................................... 253 (8-8) Entrepreneurial Leadership............................................................................................. 257 (8-12) Entrepreneurial Strategy........................................................................... 260 (8-13) Entry Strategies................................................................................................................ 260 (8-13) Generic Strategies............................................................................................................ 263 (8-16) Combination Strategies.................................................................................................... 265 (8-17) Competitive Dynamics............................................................................... 265 (8-18) New Competitive Action................................................................................................... 266 (8-19) Threat Analysis................................................................................................................. 268

4. Government Resources The U.S. government is an important resource for many young and small businesses. It provides support for entrepreneurial firms in two key arenasfinancing and government contracting. provides support for entrepreneurial firms in two key arenasfinancing and government contracting. provides support for entrepreneurial firms in two key arenasfinancing and

E. Likelihood of Competitive Reaction The final step before initiating a competitive response is to evaluate what a competitors reaction is likely to be. Evaluating potential competitive reactions helps companies plan for future counterattacks. It may also lead to a decision to hold off, that is, not totake any competitive action

part 3 Strategic Implementation Chapter 9 Strategic Control and Corporate Governance.......................... 278 (9-2) Ensuring Informational Control: Responding Effectively to Environmental Change..............................................................................280 (9-4) A Traditional Approach to Strategic Control...................................................................280 (9-4) A Contemporary Approach to Strategic Control.............................................................281 (9-4) Attaining Behavioral Control: Balancing Culture, Rewards, and Boundaries..........................................................................282 (9-6) Building a Strong and Effective Culture..........................................................................283 (9-8) Motivating with Rewards

1. The Potential Downside While rewards can be powerful tools to get employees to work for the benefit of the firm, they can also have some negative outcomes. First, if the incentive criteria seem out of the control of workers (e.g., stock incentives for lower level employees) or the goals unreachable, they can

3. Managerial Rewards and Incentives From a corporate governance perspective, one of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of the owners of the corporations. After all, shareholders rely on CEOs to

VI.Summary For firms to be successful, they must implement their strategies by means of effective strategic controls. Without such controls, the firm will not be able to achieve competitive advantages and outperform rivals in the marketplace. strategic controls. Without such controls, the firm will not be able to achieve competitive

Chapter 01 Strategic Management: Creating Competitive Advantages Answer Key True / False Questions 1. TRUE In the romantic view of leadership, the implicit assumption is that the leader is the key force in determining an organization's success or lack thereof. The Board of Directors

Topic: The Strategic Management Perspective: An Imperative throughout the Organization 72. TRUE Under the direction of Nancy Snyder, a corporate vice president, Whirlpool, brought about a significant shift in its reputation as an innovator. This five-year initiative included financial investments in capital spending as well as

Topic: The Role of Corporate Governance and Stakeholder Management 129. Stockholders as a stakeholder group are interested primarily by A. payment of interest and repayment of principal. B. value and warranties. C. dividends and capital appreciation. D. taxes and compliance with regulations. Stockholders are

Chapter 10 Creating Effective Organizational Designs Answer Key True / False Questions 1. FALSE The strategy and structure of a firm change as it increases in size, diversifies into new product markets, and expands its geographic scope. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning

66. Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization? A. the extent of international expansion B. the type of strategy (global, multidomestic, or transnational) C. the degree of

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-03 The implications of a firm's international operations for organizational structure. Level of Difficulty: 2 Medium Topic: Traditional Forms of Organizational Structure Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 10-03 The implications of a firm's international operations for organizational structure. Level of

Chapter 11 Strategic Leadership: Creating a Learning Organization and an Ethical Organization Answer Key True / False Questions 1. TRUE Many authors contend that successful leaders must recognize three interdependent activities that must be continually reassessed for organizations to succeed. These are: (1) setting a

65. FALSE Corporate credos and codes of conduct are mechanisms that provide statements of norms and beliefs, as well as guidelines for decision making. They provide employees with a clear understanding of the organization policies and ethical position. Such guidelines also provide the basis for employees to

Blooms: Understand Learning Objective: 11-04 The importance of creating a learning organization. Level of Difficulty: 2 Medium Topic: Developing Competency Companions and Creating a Learning Organization Blooms: Understand Learning Objective: 11-04 The importance of creating a learning organization. Level of Difficulty: 2 Medium Topic: Developing Competency Companions and Creating

Chapter 12 Managing Innovation and Fostering Corporate Entrepreneurship Answer Key True / False Questions 1. FALSE Innovation involves using new knowledge to transform organizational processes or create commercially viable products and services. The sources of new knowledge may include the latest technology, the results of

63. Whereas ______________ are often associated with a low cost leader strategy, ______________ are frequently an important aspect of a differentiation strategy. A. process innovations; product innovations B. product innovations; service innovations C. radical innovations; instrumental innovations D. marketing innovations; management innovations Process innovations are often

95. One of the following is not a question that should be answered when evaluating the performance of corporate venturing efforts. Which is it? A. Is the venture attracting external venture funding? B. Is the venture considered to be a market success? C. Does the venture

Chapter 02 Analyzing the External Environment of the Firm: Creating Competitive Advantages Answer Key True / False Questions 1. TRUE Three important processes (scanning, monitoring, and gathering competitive intelligence) are used to develop forecasts. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 02-01 The

67. FALSE Switching costs for an end user are also potentially much lower because of the Internet. Switching may involve only a few clicks of the mouse to find and view a competing product or service online. FALSE Switching costs for an end user are also potentially much lower

118. Scenario analysis draws on a range of disciplines and interests. It is a more _______ approach to forecasting. A. basic B. fundamental C. in-depth D. superficial Scenario analysis is a more in-depth approach to forecasting. It draws on a range of disciplines and interests, among them

149. In the Five-Forces model, conditions under which a supplier group can be powerful include all of the following except A. lack of importance of the buyer to the supplier group. B. high differentiation by the supplier. C. readily available substitute products. D. dominance by a few

Chapter 03 Assessing the Internal Environment of the Firm Answer Key True / False Questions 1. FALSE The strengths and capabilities of a firm, no matter how unique or impressive, may not enable it to achieve a competitive advantage in the marketplace. AACSB: Analytical Thinking

66. FALSE The financial position of a firm should not be analyzed in isolation. Important reference points are needed. Some issues that must be taken into account to make financial analysis more meaningful include: historical comparisons, comparisons with industry norms, and comparisons with key competitors. FALSE The financial

126. For an engineering services firm, ________________ provides inputs, the transformation process is the engineering itself, and innovative designs and practical solutions are the outputs. A. experimentation B. customer support C. research and development D. human resource managementFor an engineering services firm, research and development provides

Chapter 04 Recognizing a Firm's Intellectual Assets: Moving beyond a Firm's Tangible Resources Answer Key True / False Questions 1. TRUE For most of the 20th century, managers focused on tangible resources such as land, equipment, and money as well as intangibles such as brands,

69. FALSE Explicit (or codified) knowledge is knowledge that can be documented, widely distributed, and easily replicated. One of the challenges of knowledge-intensive organizations is to capture and codify the knowledge and experience that, in effect, resides in the heads of its employees. Otherwise, they will have

125. A. fewer B. less favorable C. no D. greater Knowledge workers often exhibit greater loyalties to their colleagues and their profession than their employing organization. A. fewer B. less favorable C. no D. greater Knowledge workers often exhibit greater loyalties to their colleagues and their

151. The creation of knowledge assets is typically characterized by A. high upfront costs and subsequent high variable costs. B. high fixed costs and high variable costs. C. high upfront costs and low variable costs. D. low upfront costs and high variable costs. One of the

Chapter 05 Business-Level Strategy: Creating and Sustaining Competitive Advantages Answer Key True / False Questions 1. FALSE A business-level strategy is a strategy designed for a firm or a division of a firm that competes within a single business. AACSB: Analytical Thinking Accessibility: Keyboard Navigation

Accessibility: Keyboard Navigation Blooms: Understand Learning Objective: 05-06 The importance of considering the industry life cycle to determine a firm's business-level strategy and its relative emphasis on functional area strategies and value-creating activities. Level of Difficulty: 2 Medium Topic: Industry Life Cycle Stages: Strategic Implications Accessibility: Keyboard Navigation Blooms:

Topic: Types of Competitive Advantage and Sustainability 119. At one CVS drugstore, a four-pack of Energizer AA batteries was on sale at 2.99 USD compared with a Duracell four-pack at 4.59 USD. The Duracell market share dropped 2 percent in a recent two-year period, and its profits

Chapter 06 Corporate-Level Strategy: Creating Value through Diversification Answer Key True / False Questions 1. FALSE Research shows that the vast majority of acquisitions of public corporations result in value destruction rather than value creation. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Learning Objective:

63. Corporate-level strategy focuses on A. gaining long-term revenue. B. gaining short-term profits. C. decreasing business locations. D. managing investment bankers and their interests. Corporate-level strategy focuses on gaining long-term revenue, profits, and market value through managing operations in multiple businesses. A. gaining long-term revenue. B.

Level of Difficulty: 1 Easy Topic: Related Diversification through Market Power Level of Difficulty: 1 Easy Topic: Related Diversification through Market Power Level of Difficulty: 1 Easy Topic: Related Diversification through Market Power 90. Vertical integration is attractive when A. internal administrative costs are higher

Chapter 07 International Strategy: Creating Value in Global Markets Answer Key True / False Questions 1. FALSE The rise of globalization, meaning the rise of market capitalism around the world, means competitors can now come from just about anywhere. FALSE The rise of globalization, meaning the

Level of Difficulty: 1 Easy Topic: Entry Modes of International Expansion Level of Difficulty: 1 Easy Topic: Entry Modes of International Expansion Level of Difficulty: 1 Easy Topic: Entry Modes of International Expansion 63. FALSE Establishing a wholly owned subsidiary is the most expensive and risky of

102. Ricoh Americas Corporation has significant international operations. Faced with local reticence to adapt changes that come from other global regions, what does Ricoh suggest is the most successful approach? A. Bring in global market representatives to force change locally. B. Obligate local offices to adopt

Chapter 08 Entrepreneurial Strategy and Competitive Dynamics Answer Key True / False Questions 1. TRUE Small businesses, those defined as having 500 employees or fewer, create about 65 percent of all new jobs in the United States and also generate 13 times as many new patents

Blooms: Understand Learning Objective: 08-01 The role of opportunities, resources, and entrepreneurs in successfully pursuing new ventures. Level of Difficulty: 2 Medium Topic: Recognizing Entrepreneurial Opportunities Blooms: Understand Learning Objective: 08-01 The role of opportunities, resources, and entrepreneurs in successfully pursuing new ventures. Level of Difficulty: 2 Medium Topic: Recognizing

93. Running Press launched the Miniature Editions line of books in 1993. Today it has sold over 20 million copies. Which of the following most closely represents their strategy? A. differentiation B. overall cost leadership C. focus D. combinationIf a start-up enters a market with a broad

Chapter 09 Strategic Control and Corporate Governance Answer Key True / False Questions 1. TRUE Strategic control is the process of monitoring and correcting the strategy and performance of a firm. Two central aspects of strategic control are informational control (the ability to respond effectively

Level of Difficulty: 2 Medium Topic: The Role of Corporate Governance Level of Difficulty: 2 Medium Topic: The Role of Corporate Governance Level of Difficulty: 2 Medium Topic: The Role of Corporate Governance Multiple Choice Questions 66. Behavioral controls are aspects of strategic change that

93. Rule-based controls are least appropriate in organizations with which one of the following characteristics? A. Environments are stable and predictable. B. Employees are highly skilled and independent. C. There is consistency in product and service. D. The risk of malfeasance is extremely high. Rule based