Download - edGlob ITI onl Strategic Management
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Pearson Global Edition
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For these Global editions, the editorial team at Pearson has collaborated with educators across the world to address a wide range of subjects and requirements, equipping students with the best possible learning tools. This Global edition preserves the cutting-edge approach and pedagogy of the original, but also features alterations, customization and adaptation from the north American version.
Strategic ManagementConcepts and Cases FIFTeenTh edITIon
Fred R. David • Forest R. David
Strategic Managem
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StrategyFormulation
StrategyImplementation
StrategyEvaluation
Chapter 2:
Chapter 3:
StrategyMonitoringChapter 11
StrategyExecution
Chapter 10
StrategyImplementation
Chapter 9
Types ofStrategiesChapter 4
Visionand Mission
AnalysisChapter 5
StrategyGeneration
andSelectionChapter 8
The ExternalAudit
Chapter 7
The InternalAudit
Chapter 6
Outside-USA Strategic Planning
Ethics/Social Responsibility/Sustainability
USED WIDELY AMONG BUSINESSESAND ACADEMIA WORLDWIDE
Comprehensive Model of the
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Strategic Management:Concepts andCases, Global Edition
Table of Contents
Cover
Copyright
Title
Contents
Preface
Acknowledgments
About the Authors
Chapter 1 Strategic Management EssentialsSingapore Airlines: Excellent Strategic Management Showcased
What Is Strategic Management?
Defining Strategic Management
Stages of Strategic Management
Integrating Intuition and Analysis
Adapting to Change
Key Terms in Strategic Management
Competitive Advantage
Strategists
Visionand Mission Statements
External Opportunities and Threats
Internal Strengths and Weaknesses
Long-Term Objectives
Strategies
Annual Objectives
Policies
The Strategic-Management Model
Benefits of Strategic Management
Financial Benefits
Nonfinancial Benefits
Why Some Firms Do No Strategic Planning
Pitfalls in Strategic Planning
Guidelines for Effective Strategic Management
Comparing Business and Military Strategy
Special Note to Students
The Cohesion Case: adidas Group2013
Assurance Of Learning Exercises
Assurance of Learning Exercise 1A: Assess Singapore Airlines Most Recent
Quarterly Performance Data
Assurance of Learning Exercise 1B: Gathering Strategy Information on adidas AG
Assurance of Learning Exercise 1C: Getting Familiar with the Free Excel Student
Template
Table of Contents
Assurance of Learning Exercise 1D: Evaluating An Oral Student Presentation
Assurance of Learning Exercise 1E: Strategic Planning at Nestlé
Assurance of Learning Exercise 1F: Interviewing Local Strategists
Chapter 2 Outside-USA Strategic PlanningHonda: Excellent Strategic Management Showcased
Multinational Organizations
Advantages and Disadvantages of International Operations
The Global Challenge
Globalization
Corporate Tax Rates Globally
United States versus Foreign Business Cultures
Communication Differences Across Countries
Business Culture Across Countries
MexicoBusiness Culture
JapanBusiness Culture
BrazilBusiness Culture
GermanyBusiness Culture
EgyptBusiness Culture
ChinaBusiness Culture
IndiaBusiness Culture
NigeriaBusiness Culture
Business Climate Across Countries/Continents
Union Membership Across Europe
African Countries
China
Philippines
Taiwan
India
Germany
Mexico
Special Note to Students
Assurance Of Learning Exercises
Assurance of Learning Exercise 2A: The adidas Group wants to enter Africa. Help
them.
Assurance of Learning Exercise 2B: Assessing Differences in Culture Across
Countries
Assurance of Learning Exercise 2C: Honda Motor Company wants to enter the
Vietnamese market. Help them.
Assurance of Learning Exercise 2D: Does My University Recruit in Foreign
Countries?
Chapter 3 Ethics/Social Responsibility/SustainabilityBusiness Ethics
Nestlé: Excellent Strategic Management Showcased
Code of Business Ethics
An Ethics Culture
Whistle-Blowing
Bribes
Table of Contents
Workplace Romance
Social Responsibility
Social Policy
Social Policies on Retirement
Environmental Sustainability
What Is a Sustainability Report?
Lack of Standards Changing
Managing Environmental Affairs in the Firm
ISO 14000/14001 Certification
Wildlife
Solar Power
Special Note to Students
Assurance Of Learning Exercises
Assurance of Learning Exercise 3A: Sustainability and Nestlé
Assurance of Learning Exercise 3B: How Does My Municipality Compare To Others on
Being Pollution-Safe?
Assurance of Learning Exercise 3C: Compare adidas AG versus Nike on Social
Responsibility
Assurance of Learning Exercise 3D: How Do You Rate adidas AG s Sustainability
Efforts?
Assurance of Learning Exercise 3E: How Do You Rate Nestlés Sustainability
Efforts?
Assurance of Learning Exercise 3F: The Ethics of Spying on Competitors
Chapter 4 Types of StrategiesLong-Term Objectives
The Nature of Long-Term Objectives
Petronas: Excellent Strategic Management Showcased
Financial versus Strategic Objectives
Not Managing by Objectives
Types of Strategies
Levels of Strategies
Integration Strategies
Forward Integration
Backward Integration
Horizontal Integration
Intensive Strategies
Market Penetration
Market Development
Product Development
Diversification Strategies
Related Diversification
Unrelated Diversification
Defensive Strategies
Retrenchment
Divestiture
Liquidation
Michael Porters Five Generic Strategies
Table of Contents
Cost Leadership Strategies (Type 1 and Type 2)
Differentiation Strategies (Type 3)
Focus Strategies (Type 4 and Type 5)
Strategies for Competing in Turbulent,High-Velocity Markets
Means for Achieving Strategies
Cooperation Among Competitors
Joint Venture and Partnering
Merger/Acquisition
Private-Equity Acquisitions
First Mover Advantages
Outsourcing and Reshoring
Strategic Management in Nonprofit and Governmental Organizations
Educational Institutions
Medical Organizations
Governmental Agencies and Departments
Strategic Management in Small Firms
Special Note to Students
Assurance Of Learning Exercises
Assurance of Learning Exercise 4A: Market Development:Petronas
Assurance of Learning Exercise 4B: Alternative Strategies for Petronas
Assurance of Learning Exercise 4C: Private-Equity Acquisitions
Assurance of Learning Exercise 4D: The strategies of adidas AG:2013-2015
Assurance of Learning Exercise 4E: Lessons in Doing Business Globally
Assurance of Learning Exercise 4F: Petronas 2013-2015
Assurance of Learning Exercise 4G: What Strategies Are Most Risky?
Assurance of Learning Exercise 4H: Exploring Bankruptcy
Assurance of Learning Exercise 4I: Examining Strategy Articles
Assurance of Learning Exercise 4J: Classifying Some Strategies
Chapter 5 Vision and Mission AnalysisSamsung: Excellent Strategic Management Showcase
What Do We Want to Become?
What Is Our Business?
Vision versus Mission
Vision Statement Analysis
The Process of Developing Vision and Mission Statements
Importance (Benefits) of Vision and Mission Statements
A Resolution of Divergent Views
Characteristics of a Mission Statement
A Declaration of Attitude
A Customer Orientation
Mission Statement Components
Writing and Evaluating Mission Statements
Special Note to Students
Assurance Of Learning Exercises
Assurance of Learning Exercise 5A: Examining Potential Changes Needed in a
Firms Vision/Mission
Assurance of Learning Exercise 5B: Studying an Alternative View of Mission
Table of Contents
Statement ContentAssurance of Learning Exercise 5C: Evaluating Mission Statements
Assurance of Learning Exercise 5D: Evaluating the Mission Statement of Under
Armoura Competitor of adidas AG
Assurance of Learning Exercise 5E: Selecting the Best Vision and Mission
Statements in a Given Industry
Assurance of Learning Exercise 5F: Writing an Excellent Vision and Mission
Statement for Novartis AG
Chapter 6 The Internal AuditThe Nature of an Internal Audit
Volkswagen: Excellent Strategic Management Showcased
Key Internal Forces
The Process of Performing an Internal Audit
The Resource-Based View
Integrating Strategy and Culture
Management
Planning
Organizing
Motivating
Staffing
Controlling
Management Audit Checklist of Questions
Marketing
Customer Analysis
Selling Products and Services
Product and Service Planning
Pricing
Distribution
Marketing Research
Cost/Benefit Analysis
Marketing Audit Checklist of Questions
Finance and Accounting
Finance and Accounting Functions
Basic Types of Financial Ratios
Breakeven Analysis
Finance and Accounting Audit Checklist
Production and Operations
Production and Operations Audit Checklist
Research and Development
Internal and External Research and Development
Research and Development Audit
Management Information Systems
Management Information Systems Audit
Value Chain Analysis
Benchmarking
The Internal Factor Evaluation Matrix
Table of Contents
Special Note to Students
Assurance Of Learning Exercises
Assurance of Learning Exercise 6A: Develop a Corporate IFE Matrix for Volkswagen
Group
Assurance of Learning Exercise 6B: Should VW Deploy More Resources or Less
Outside of the USA?
Assurance of Learning Exercise 6C: Apply Breakeven Analysis
Assurance of Learning Exercise 6D: Performing a Financial Ratio Analysis for
adidas AG
Assurance of Learning Exercise 6E: Constructing an IFE Matrix for adidas AG
Assurance of Learning Exercise 6F: Analyzing Your College or Universitys
Internal Strategic Situation
Chapter 7 The External AuditThe Nature of an External Audit
Michelin: Excellent Strategic Management Showcase
Key External Forces
The Process of Performing an External Audit
The Industrial Organization (I/O) View
Economic Forces
Social, Cultural, Demographic, and Natural Environment Forces
Political, Governmental, and Legal Forces
Labor Unions
Technological Forces
Competitive Forces
Competitive Intelligence Programs
Market Commonality and Resource Similarity
Competitive Analysis: Porters Five-Forces Model
Rivalry Among Competing Firms
Potential Entry of New Competitors
Potential Development of Substitute Products
Bargaining Power of Suppliers
Bargaining Power of Consumers
Sources of External Information
Forecasting Tools and Techniques
Making Assumptions
Industry Analysis: The External Factor Evaluation Matrix
The Competitive Profile Matrix
Special Note To Students
Assurance Of Learning Exercises
Assurance of Learning Exercise 7A: Michelin and Africa: An External Assessment
Assurance of Learning Exercise 7B: Preparing a CPM for Michelin Based on
Countries Rather than Companies
Assurance of Learning Exercise 7C: Develop Divisional Michelin EFE Matrices
Assurance of Learning Exercise 7D: Developing an EFE Matrix for adidas AG
Assurance of Learning Exercise 7E: The External Assessment
Assurance of Learning Exercise 7F: Developing a CPM for Michelin
Assurance of Learning Exercise 7G: Developing a CPM for adidas AG
Assurance of Learning Exercise 7H: Analyzing Your College or Universitys
Table of Contents
External Strategic SituationChapter 8 Strategy Generation and Selection
The Nature of Strategy Analysis and ChoiceThe Process of Generating and Selecting Strategies
Unilever: Excellent Strategic Management Showcased
A Comprehensive Strategy-Formulation Analytical Framework
The Input Stage
The Matching Stage
The SWOT Matrix
The Strategic Position and Action Evaluation (SPACE) Matrix
The Boston Consulting Group (BCG) Matrix
The Internal-External (IE) Matrix
The Grand Strategy Matrix
The Decision Stage
The Quantitative Strategic Planning Matrix (QSPM)
Positive Features and Limitations of the QSPM
Cultural Aspects of Strategy Choice
The Politics of Strategy Choice
Governance Issues
Special Note to Students
Assurance Of Learning Exercises
Assurance of Learning Exercise 8A: Should Unilever Penetrate Southeast Asia
Further?
Assurance of Learning Exercise 8B: Perform a SWOT Analysis for Unilevers
Global Operations
Assurance of Learning Exercise 8C: Preparing a BCG Matrix for Unilever
Assurance of Learning Exercise 8D: Developing a SWOT Matrix for adidas AG
Assurance of Learning Exercise 8E: Developing a SPACE Matrix for adidas AG
Assurance of Learning Exercise 8F: Developing a BCG Matrix for adidas AG
Assurance of Learning Exercise 8G: Developing a QSPM for adidas AG
Assurance of Learning Exercise 8H: Developing a SWOT Matrix for Unilever
Assurance of Learning Exercise 8I: Developing a SPACE Matrix for Unilever
Assurance of Learning Exercise 8J: Developing a BCG Matrix for your College or
University
Assurance of Learning Exercise 8K: Developing a QSPM for a Company that You Are
Familiar With
Assurance of Learning Exercise 8L: Formulating Individual Strategies
Assurance of Learning Exercise 8M: The Mach Test
Chapter 9 Strategy ImplementationThe Nature of Strategy Implementation
Royal Dutch Shell: Excellent Strategic Management Showcased
Current Marketing IssuesNew Principles of Marketing
Market SegmentationRetention-Based Segmentation
Does the Internet Make Market Segmentation Easier?
Product Positioning/Perceptual Mapping
Table of Contents
Finance and Accounting IssuesAcquiring Capital to Implement Strategies
Projected Financial Statements
Projected Financial Statement Analysis for Whole Foods Market
Financial Budgets
Company Valuation
Deciding Whether to Go Public
Research and Development (R&D) Issues
Management Information Systems (MIS) IssuesBusiness Analytics
Special Note to StudentsAssurance Of Learning Exercises
Assurance of Learning Exercise 9A: Preparing an EPS/EBIT Analysis for Royal
Dutch Shell plc
Assurance of Learning Exercise 9B: Developing a Product-Positioning Map for
adidas AG
Assurance of Learning Exercise 9C: Performing an EPS/EBIT Analysis for adidas AG
Assurance of Learning Exercise 9D: Preparing Projected Financial Statements for
adidas AG
Assurance of Learning Exercise 9E: Determining the Cash Value of adidas AG
Assurance of Learning Exercise 9F: Developing a Product-Positioning Map for My
College
Assurance of Learning Exercise 9G: Do Banks Require Projected Financial
Statements?
Chapter 10 Strategy ExecutionThe Nature of Strategy Implementation
Accenture: Excellent Strategic Management Showcased
Management Perspectives
Annual Objectives
Policies
Resource Allocation
Managing Conflict
Matching Structure with Strategy
The Functional Structure
The Divisional Structure
The Strategic Business Unit (SBU) Structure
The Matrix Structure
Some Dos and Donts in Developing Organizational Charts
Restructuring
Restructuring
Linking Performance and Pay to Strategies
Managing Resistance to Change
Creating a Strategy-Supportive Culture
Production and Operations Concerns When Implementing Strategies
Table of Contents
Human Resource Concerns When Implementing Strategies
Employee Stock Ownership Plans (ESOPs)
Balancing Work Life and Home Life
Benefits of a Diverse Workforce
Corporate Wellness Programs
Special Note to Students
Assurance Of Learning Exercises
Assurance of Learning Exercise 10A: Developing an Organizational Chart for
Accenture plc
Assurance of Learning Exercise 10B: Assessing Accentures Philanthrophy Efforts
Assurance of Learning Exercise 10C: Revising adidas AG s Organizational Chart
Assurance of Learning Exercise 10D: Exploring Objectives
Assurance of Learning Exercise 10E: Understanding My Universitys Culture
Chapter 11 Strategy MonitoringThe Nature of Strategy Evaluation
BHP Billiton: Excellent Strategic Management Showcased
The Process of Evaluating Strategies
A Strategy-Evaluation Framework
Reviewing Bases of Strategy
Measuring Organizational Performance
Taking Corrective Actions
The Balanced Scorecard
Published Sources of Strategy-Evaluation Information
Characteristics of an Effective Evaluation System
Contingency Planning
Auditing
21st-Century Challenges in Strategic Management
The Art or Science Issue
The Visible or Hidden Issue
The Top-Down or Bottom-Up Approach
Special Note to Students
Assurance Of Learning Exercises
Assurance of Learning Exercise 11A: Evaluating BHP Billitons Strategies
Assurance of Learning Exercise 11B: Preparing a Strategy-Evaluation Report for
adidas AG
Assurance of Learning Exercise 11C: Preparing a Strategy-Evaluation Report for
adidas AG
Assurance of Learning Exercise 11D: Evaluate My Universitys Strategies
Appendix 1 Guidelines for Case AnalysisWhat Is a Strategic-Management Case?
Guidelines for Preparing Case AnalysesThe Need for Practicality
The Need for Justification
The Need for Realism
The Need for Specificity
The Need for Originality
Table of Contents
The Need to Contribute
Preparing a Case for Class Discussion
The Case Method versus Lecture ApproachThe Cross-Examination
Preparing a Written Case AnalysisThe Executive Summary
The Comprehensive Written Analysis
Steps in Preparing a Comprehensive Written Analysis
Making an Oral PresentationOrganizing the Presentation
Controlling Your Voice
Managing Body Language
Speaking from Notes
Constructing Visual Aids
Answering Questions
Tips for Success in Case AnalysisContent Tips
Process Tips
Sample Case Analysis Outline
Steps in Presenting an Oral Case AnalysisOral PresentationStep 1: Introduction (2 minutes)
Oral PresentationStep 2: Mission and Vision (4 minutes)
Oral PresentationStep 3: Internal Assessment (8 minutes)
Oral PresentationStep 4: External Assessment (8 minutes)
Oral PresentationStep 5: Strategy Formulation (14 minutes)
Oral PresentationStep 6: Strategy Implementation (8 minutes)
Oral PresentationStep 7: Strategy Evaluation (2 minutes)
Oral PresentationStep 8: Conclusion (4 minutes)
Glossary
Name IndexA
B
C
D
E
F
G
H
I
Table of Contents
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
Y
Z
Subject IndexA
B
C
D
E
F
G
H
I
J
L
M
N
O
P
Q
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