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1
SECTION
1
Instructor Resources,
Chapter Features,
and Case Overview
2
Section 1 Instructor Resources, Chapter Features, and Case Overview
INSTRUCTOR RESOURCES
We strived to achieve four goals in preparing this package of Instructor Resources for the 21st Edition:
1. To equip you with all the resources and pedagogical tools you’ll need to design and deliver a course that
is on the cutting-edge and solidly in the mainstream of what students need to know about crafting and
executing winning strategies.
2. Togiveyouwideexibilityinputtingtogetheracoursesyllabusthatyouarecomfortablewithandproudof.
3. To give you a smorgasbord of options to draw from in keeping the nature of student assignments varied and
interesting.
4. To help you deliver a course with upbeat tempo that wins enthusiastic applause from students.
We believe the contents of the package will be particularly informative and helpful to faculty members teaching
thestrategycourseforthefirsttimebutwehavealsotriedtoembellishthecontentwithideasandsuggestions
thatwillprovevaluabletoexperiencedfacultylookingforwaystorefurbishtheircourseofferingand/ortokeep
student assignments varied and interesting.
A QUICK OVERVIEW OF THE ENTIRE INSTRUCTOR
RESOURCE PACKAGE
The Instructor’s Manual for Crafting & Executing Strategy contains:
A quick look at the topical focus of the text’s 12 chapters (Section 1).
Anoverviewofthe31casesinthetext,alongwithagridprofilingthestrategicissuesthatcomeintoplayin
each case (Section 1 and Section 3).
A discussion of the reasons to use a strategy simulation as an integral part of your strategy course. The
two web-based strategy simulations—The Business Strategy Game or GLO-BUS—that are companions to
this text incorporate the very kinds of strategic thinking, strategic analysis, and strategic decision-making
described in the text chapters and connect beautifully to the chapter content. The automated online nature
of both simulations entails minimal administrative time and effort on the instructor’s part. You will be
pleasantly shocked (and pleased!!) at the minimal time it will take you to incorporate use of GLO-BUS or
The Business Strategy Game and the added degree of student excitement and energy that either of these
competition-based strategy simulations brings to the course—see Section 2 for more details.
TipsandsuggestionsforeffectivelyusingeitherGLO-BUS or The Business Strategy Game in your course
(covered in both Section 2 and Section 3).
The merits of incorporating the use of the ConnectTM Management Web-based assignment and assessment
platform accompanying the 21st Edition, into your course requirements. Connect includes chapter quizzes,
case assignment exercises for 12 of the 31 cases, and learning assurance exercises for all 12 chapters of
the21stEdition.Connectoffersautomaticgradingforallchapterquizzes,andmanyofthecaseexercises
andlearningassuranceexercises.Connectoffersaneasy-to-administerapproachtotestingandassessing
individual-level student mastery of chapter concepts and case analysis (covered in Section 3).
Ideas and suggestions on course design and course organization (Section 3 and Section 4).
Recommendationsforsequencingthecaseassignmentsandguidanceabouthowtousethecaseseffectively
(Section 3).
Our recommendations regarding which cases are particularly appropriate for written case assignments and
oral team presentations (Section 3).
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Section 1 Instructor Resources, Chapter Features, and Case Overview
Two sample course syllabi (Section 4).
A variety of schedules of activities for face-to-face, hybrid, and online courses: (Section 4)
• Twosampleschedulesofclassactivitiesandassignmentsforface-to-facecoursesofferedduringa15-
week term;
• Twosamplecourseschedulesforface-to-facecoursesofferedin5-weekterms.
ATestBankforthe12chaptersthatconsistsof1100+questions(Section5).
A set of Lecture Notes for each of the 12 chapters (Section 6).
A comprehensive teaching note for each of the 31 cases in Crafting & Executing Strategy (Section 7).
that should be of interest.
ConnectTM Management Web-based Assignment and Assessment Platform The 21st Edition
package includes a robust collection of chapter quizzes, chapter learning assurance exercises, and case preparation
exercises that should prove to ease instructors’ grading and assessment obligations. Student understanding of
chapter concepts can be assessed at the individual-level through chapter quizzes and applied learning assurance
exercises that record each student’s grade in a Web-based grade book. All chapter quizzes are automatically-
graded and more than one-half of the Assurance of Learning exercises for the 12 chapters are automatically
graded.
The Connect Management platform also includes fully autograded interactive application exercises for 12 of
the 31 cases in this edition. The exercises require students to work through tutorials based upon the analysis
set forth in the assignment questions for the case; these exercises have multiple components such as resource
andcapabilityanalysis,financialratioanalysis,identificationofacompany’sstrategy,oranalysisofthefive
competitive forces. The content of these case exercises is tailored to match the circumstances presented in each
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Section 1 Instructor Resources, Chapter Features, and Case Overview
Test Bank Thetestbankcontainsover900multiple-choicequestionsandshort-answer/essayquestions.Ithas
been tagged with AACSB and Bloom’s Taxonomy criteria. All of the test bank questions are also accessible
via TestGen. TestGen is a complete, state-of-the-art test generator and editing application software that allows
instructors to quickly and easily select test items from McGraw Hill’s TestGen test bank content and to organize,
edit, and customize the questions and answers to rapidly generate paper tests. Questions can include stylized text,
symbols, graphics, and equa tions that are inserted directly into questions using built-in mathematical templates.
TestGen’srandomgeneratorprovidestheoptiontodisplaydifferenttextorcalculatednumbervalueseachtime
questionsareused.Withbothquick-and-simpletestcreationandexibleandrobusteditingtools,TestGenisa
test generator system for today’s educators.
WHAT TO EXPECT IN THE 21ST EDITION
The distinguishing mark of the 21st edition is its enriched and enlivened presentation of the material in each of
the 12 chapters, providing an as up-to-date and engrossing discussion of the core concepts and analytical tools
asyouwillfindanywhere.As witheachofourneweditions,thereisanaccompanyinglineupofexcitingnew
cases that bring the content to life and are sure to provoke interesting classroom discussions, deepening students’
understanding of the material in the process.
While this 21st edition retains the 12-chapter structure of the prior edition, every chapter—indeed every
termsofwhatstudentsreallyneedtoknowandgivesinstructorsaleguponteachingthatmaterialeffectively.It
remains, as always, solidly mainstream and balanced, mirroring both the penetrating insight of academic thought
and the pragmatism of real-world strategic management.
A standout feature of this text has always been the tight linkage between the con- tent of the chapters and the
cases. The lineup of cases that accompany the 21st edition is outstanding in this respect—a truly appealing
ORGANIZATION, CONTENT, AND FEATURES OF THE
TEXT CHAPTERS
Our objective in undertaking a major revision of this text was to ensure that its content was current, with respect
to both scholarship and managerial practice, and presented in as clear and compelling a fashion as possible. We
establishedfivecriteriaformeetingthisobjective,namelythatthefinalproductmust:
keep the content solidly in the mainstream of contemporary strategic thinking.
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Section 1 Instructor Resources, Chapter Features, and Case Overview
Focus squarely on what every student needs to know about crafting, implementing, and executing business
strategies in today’s market environments.
Provide an attractive set of contemporary cases that involve headline strategic issues and give students
ample opportunity to apply what they’ve learned from the chapters.
Webelievethis21steditionmeasuresuponallfivecriteriaandthatyou’llbeamplyconvincedthatno other
leading text does a better job of setting forth the principles of strategic management and linking these
principles to both sound theory and best practices.
Sevenstandoutfeaturesstronglydifferentiatethistextandtheaccompanyinginstructionalpackagefromothers
inthefield:
1. Our integrated coverage of the two most popular perspectives on strategic management—positioning theory
and resource-based theory—is unsurpassed by any other leading strategy text. Principles and concepts from
8 it is emphasized repeatedly that a company’s strategy must be matched not only to its external market
circumstances but also to its internal resources and competitive capabilities.
2. Our coverage of cooperative strategies and the role that interorganizational activity can play in the pursuit of
competitive advantage, is similarly distinguished. The topics of strategic alliances, licensing, joint ventures,
3. The attention we give to international strategies, in all their dimensions, make this textbook an indispensable
aid to understanding strategy formulation and execution in an increasingly connected, global world. Our
4. With a stand-alone chapter devoted to this topic, our coverage of business ethics, corporate social
responsibility, and environmental sustainability goes well beyond that offered by any other leading strategy
text. This chapter, “Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy”
5. Long known as an important differentiator of this text, the case collection in the 21st edition is truly unrivaled
from the standpoints of student appeal, teachability, and suitability for drilling students in the use of the
6. The text is now more tightly linked to the publisher’s trailblazing web-based assignment and assessment
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Section 1 Instructor Resources, Chapter Features, and Case Overview
7. Two cutting-edge and widely used strategy simulations—The Business Strategy Game and GLO-BUS—are
optional companions to the 21st edition. These give you an unmatched capability to employ a text-case-
simulation model of course delivery.
The following rundown summarizes the noteworthy features and topical emphasis in this new edition:
Chapter 1 serves as a brief, general introduction to the topic of strategy, focusing on the central questions of
“What is strategy?” and “Why is it important?” As such, it serves as the perfect accompaniment for your
opening-day lecture on what the course is all about and why it matters. Using the example of Starbucks to
drive home the concepts in this chapter, we introduce students to what we mean by “competitive advantage”
and the key features of business-level strategy. Describing strategy making as a process, we explain why
a company’s strategy is partly planned and partly reactive and why a strategy tends to co-evolve with
its environment over time. We show that a viable business model must provide both an attractive value
propositionforthecompany’scustomersandaformulaformakingprofitsforthecompany.Akeyfeature
of this chapter is a depiction of how the Value-Price-Cost Framework can be used to frame this discussion.
We show how the mark of a winning strategy is its ability to pass three tests: (1) the fit test (for internal and
externalfit),(2)thecompetitive advantage test, and (3) the performance test. And we explain why good
company performance depends not only upon a sound strategy but upon solid strategy execution as well.
Chapter 2 presents a more complete overview of the strategic management process, covering topics ranging
from the role of vision, mission, and values to what constitutes good corporate governance. It makes a
great assignment for the second day of class and provides a smooth transition into the heart of the course.
Itintroducesstudentstosuchcoreconceptsasstrategicversusfinancialobjectives,thebalancedscorecard,
strategic intent, and business-level versus corporate-level strategies. It explains why all managers are on
a company’s strategy-making, strategy-executing team and why a company’s strategic plan is a collection
ofstrategiesdevisedbydifferentmanagersatdifferentlevelsintheorganizationalhierarchy.Thechapter
concludes with a section on the role of the board of directors in the strategy-making, strategy-executing
processandexaminestheconditionsthatledtorecenthigh-profilecorporategovernancefailures.Anew
analytical tools for conducting competitive analysis and demonstrates the importance of tailoring strategy
to fit the circumstances of a company’s industry and competitive environment. The chapter includes a
discussion of the value net framework, which is useful for conducting analysis of how cooperative as well
as competitive moves by various parties contribute to the creation and capture of value in an industry.
Chapter4presentstheresource-basedviewofthefirm,showingwhyresourceandcapabilityanalysisissuch
position and customer value proposition vis-á-vis its rivals. An important feature of this chapter is a table
showing how key financial and operating ratios are calculated and how to interpret them. Students will
findthistablehandyindoingthenumbercrunchingneededtoevaluatewhetheracompany’sstrategyis
deliveringgoodfinancialperformance.
Chapter5setsforththebasicapproachesavailableforcompetingandwinninginthemarketplaceintermsof
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Section 1 Instructor Resources, Chapter Features, and Case Overview
Chapter 6 focuses on other strategic actions a company can take to complement its competitive approach
andmaximizethepowerofitsoverallstrategy.Theseincludeavarietyofoffensiveordefensivecompetitive
moves, and their timing, such as blue-ocean strategies and first-mover advantages and disadvantages. It
also includes choices concerning the breadth of a company’s activities (or its scope of operations along
abouthowtoenterandcompeteinforeignmarkets.Itpresentsfivemajorstrategicoptionsforexpanding
a company’s geographic scope and competing in foreign markets: export strategies, licensing, franchising,
establishingawhollyownedsubsidiaryviaacquisitionor“greenfield”venture,andalliancestrategies.It
includescoverageoftopicssuchasPorter’sDiamondofNationalCompetitiveAdvantage,profitsanctuaries,
and the choice between multidomestic, global, and transnational strategies. This chapter explains the impetus
strategywithitsspecialfocusondiversification.Thefirstportionofthischapterdescribeswhenandwhy
diversificationmakesgoodstrategicsense,thedifferentmeansofdiversifyingacompany’sbusinesslineup,
andtheprosandconsofrelatedversusunrelateddiversificationstrategies.Thesecondpartofthechapter
looksathowtoevaluatetheattractivenessofadiversifiedcompany’sbusinesslineup,howtodecidewhether
ithasagooddiversificationstrategy,andwhatstrategicoptionsareavailableforimprovingadiversified
direct attention to such issues and may be used as a stand-alone assignment in either the early, middle,
or late part of a course. It concerns the themes of ethical standards in business, approaches to ensuring
consistent ethical standards for companies with international operations, corporate social responsibility, and
environmental sustainability. The contents of this chapter are sure to give students some things to ponder,
rouse lively discussion, and help to make students more ethically aware and conscious of why all companies
organizational structure supportive of the strategy execution process.
Chapter11discussesfiveadditionalmanagerialactionsthatadvancethecauseofgoodstrategyexecution:
(1) allocating resources to enable the strategy execution process, (2) ensuring that policies and procedures
facilitate rather than impede strategy execution, (3) using process management tools and best practices to
drive continuous improvement in the performance of value chain activities, (4) installing information and
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Section 1 Instructor Resources, Chapter Features, and Case Overview
supportive operation and then following through to get things done and deliver results. The goal here is
to ensure that students understand that the strategy-executing phase is a make-things-happen and make-
them-happen-right kind of managerial exercise—one that is critical for achieving operating excellence and
reaching the goal of strong company performance.
raptattention,thenitwillhavefulfilleditspurpose.
THE CASE COLLECTION IN THE 21ST EDITION
The31-caseline-upinthiseditionisush with interesting companies and valuable lessons for students in the art
and science of crafting and executing strategy.
There’sagoodblendofcasesfromalengthperspective—15ofthe31casesareunder15pages,yetoffer
plenty for students to chew on; 11 are medium-length cases; and the remainder are detail-rich cases that call
for more sweeping analysis.
At least 28 of the 31 cases involve companies, products, or people that students will have heard of, know
about from personal experience, or can easily identify with.
Thelineupincludes atleast15 casesthatwill providestudentswith insightintothe specialdemandsof
competing in industry environments where technological developments are an everyday event, product life
cycles are short, and competitive maneuvering among rivals comes fast and furious.
Twenty-three of the cases involve situations where company resources and competitive capabilities play
as large a role in the strategy-making, strategy-executing scheme of things as industry and competitive
conditions do.
Twenty-one cases involve public companies, thus allowing students to do further research on the Internet
regarding recent developments at these companies.
All 31 cases have accompanying video segments that can be shown in conjunction with the case discussions.
ThesevideoscanbesourcedvialinkstoYouTubepostings,postingsintheConnectInstructorLibrary.The
linkstotherelevantYouTubevideosareincludedintheteachingnotesfortheapplicablecases.
instructor.
A grid showing the issues that are prominent in each of the 31 cases in this edition is presented in Table 1.
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Section 1 Instructor Resources, Chapter Features, and Case Overview
Suggestions for sequencing the case assignments can be found in Section 3 of this IM. The 9 sample course
outlines and daily schedules of class activities in Section 4 provide further suggestions about the sequencing of
case assignments and how to integrate your coverage of the 12 chapters, the various case assignments, and use
of a strategy simulation.
Specificdetailsabouthowtoutilizeeachcase(includingrecommendedassignmentquestionsandrecommended
oral team presentation assignments are contained in the teaching notes for each of the cases (the TNs appear in
Section 7).
Sample course syllabi displaying possible case sequencing and suggested case assignments are presented in
Section 4 of this volume of the IM.
It is worth mentioning at this juncture that there is a comprehensive table of financial ratios in Chapter 4
that provides the formulas and brief explanations of what each ratio reveals. Adopters of prior editions have
told us that students find this table extremely helpful in guiding their analyses of the financial statements
contained in the cases. Youwillprobablywanttocallthistabletotheattentionofclassmembersandurgethat
they make full use of the information it contains.
Moreover, we have included a Guide to Case Analysis that appears at the end of the book, after Case 31. This
briefguide—designedespeciallyforstudentsunfamiliarwiththecasemethodofteaching/learning—explains
what a case is, why cases are a standard part of courses in strategy, how to prepare for a class discussion of a
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Section 1 Instructor Resources, Chapter Features, and Case Overview
TABLE 1. A Quick Profile of the Cases in the 21st Edition
of Crafting and Executing Strategy
Accompanying video (Y = yes; N = no)
Connect Case Exercise (Y = yes; N = No)
Size: Small (S), Medium (M), Large (L)
The manager’s role in crafting strategy
The manager’s role in executing strategy
Vision, mission, and objectives
Crafting strategy in single-business
companies
Industry and competitive analysis
Company resources and capabilities
Global or multinational strategy
E-business strategy issues
Diversification strategies and the analysis
of multi-business corporations
Financial conditions and financial analysis
Staffng, people management, incentives
and rewards
Organizational structure, core competen-
cies, competitive capabilities, staffng
Policies, procedures, operating systems,
best practices, continuous improvement
Corporate culture issues
Ethics, values, social responsibility
Exerting strategic leadership
Making action recommendations
Case 1
Mystic Monk Coee
N Y S X X X X X X X X X X X
Strategy
Case 5
Competition in the Craft Beer Industry in 2016
Y Y M X X X X X X X
Case 6
TOMS Shoes: A Dedication to Social Responsibility
Y Y M X X X X X X X X
Case 7
Fitbit, Inc.: Has the Company Outgrown Its Strategy?
Y N S X X X X X X X
Case 8
Under Armour’s Strategy in 2016—How Big a Factor Can
the Company Become in the $250 Billion Global Market
N N L X X X X X X
Consumers in 2016?
Case 12
Uber in 2014: Can It Remain the Dominant Leader in the
World’s Fast-Emerging Ride-Sharing Industry?
Y N M X X X X X X X X
Case 13
Panera Bread Company in 2016: Is the Company’s
Strategy to Rejuvenate the Company’s Growth Working?
N Y M X X X X X X X X
Gasoline Prices and Mounting Competition?
Case 17
The South African Wine Industry in 2016: Where does it
go from here?
Y Y M X X X X X X X X
Case 18
Ford Motor Company: New Strategies for International
Growth
Y Y L X X X X X X X
Case 19
The Green Music Center at Sonoma State University
Y Y L X X X X X X X
Case 24
Dilemma at Devil’s Den
N N S X X X X X X X
Case 25
Southwest Airlines in 2016: Culture, Values, and
Operating Practices
Y Y L X X X X X X X X X X X X X X
Case 26
Rosen Hotels & Resorts: Delivering Superior Customer
Service
Y N M X X X X X X X X X
His Own Legacy at Apple
Case 29
NCAA Football: Is It Worth It?
Y N S X X X X X X
Case 30
Rhino Poaching in South Africa: Do National Parks Have
Suffcient Resources to Fight Wildlife Crime?
Y N S X X X X X X X X X X X X
Case 31
Conflict Palm Oil and PepsiCo’s Ethical Dilemma
N N L X X X X X X
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Section 1 Instructor Resources, Chapter Features, and Case Overview
VALUE-ADDING STUDENT SUPPORT MATERIALS FOR
THE 21ST EDITION OF CRAFTING & EXECUTING STRATEGY
The text and text website include several kinds of support materials to help students grasp the material.
Key Points Summaries At the end of each chapter is a synopsis of the core concepts, analytical tools and other
key points discussed in the chapter. These chapter-end synopses help students focus on basic strategy principles,
digest the messages of each chapter, and prepare for tests.
both sets of exercises (along with those Illustration Capsules that qualify as “mini-cases”) can be used to round
outtherestofa75-minuteclassperiodshouldyourlectureonachapterlastforonly50minutes.
ConnectTM Management Web-based Assignment and Assessment Platform Connect chapter
quizzes, learning assurance exercises, and case exercises can be used as a graded component of the course,
anassessmentmechanism,orasaneffectivewaytopreparestudentsforchapterexams,in-classdiscussions
View scored work immediately and track individual or group performance with assignment and grade
reports.
Access an instant view of student or class performance relative to learning objectives.
Collect data and generate reports required by many accreditation organizations, such as AACSB International.
LearnSmart and SmartBookTM LearnSmart is an adaptive study tool proven to strengthen memory recall,
engages with SmartBook, the reading experience continuously adapts by highlighting content based on what the
student knows and doesn’t know. This ensures that the focus is on the content he or she needs to learn, while
simultaneously promoting long-term retention of material. Use SmartBook’s real-time reports to quickly identify
the concepts that require more attention from individual students–or the entire class. The end result? Students are
more engaged with course content, can better prioritize their time, and come to class ready to participate.
this IM, we outline why using a competition-based strategy simulation as a course centerpiece makes great sense
and provide you with detailed suggestions for successfully incorporating either The Business Strategy Game or
GLO-BUS in your strategic management course.
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Section 1 Instructor Resources, Chapter Features, and Case Overview
Should you decide to incorporate use one of the two simulations in your course, the simplest (and usually the
cheapest) way for students to obtain the simulation is via a credit card purchase at www.bsg-online.com (if you
