Strategic management a competitive advantage approach (sixteenth edition) part 2

www.downloadslide.net Part Source: Burmakin Andrey/123rf Strategy evaluation 278 www.downloadslide.net Strategy review, evaluation, and Control Learning oBjectives After studying this chapter, you should be able to the following: 9-1 Discuss the strategy-evaluation process, criteria, and methods used 9-2 Discuss three activities that comprise strategy evaluation 9-3 Describe and develop a Balanced Scorecard 9-4 Identify and describe published sources of strategy-evaluation information 9-5 Identify and describe six characteristics of an effective strategy-evaluation system 9-6 Discuss the nature and role of contingency planning in strategy evaluation 9-7 Explain the role of auditing in strategy evaluation 9-8 Identify and discuss three twenty-first-century challenges in strategic management 9-9 Identify and describe 17 guidelines for effective strategic management assurance of Learning exercises The following exercises are found at the end of this chapter: exercise 9a exercise 9B exercise 9c examine 100 Balanced Scorecards Prepare a Strategy-evaluation report for Hershey Company evaluate your university’s Strategies 279 www.downloadslide.net 280 Part • Strategy evaluation t he best formulated and best implemented strategies become obsolete as a firm’s external and internal environments change it is essential, therefore, that strategists systematically review, evaluate, and control the execution of strategies this chapter presents a framework that can guide managers’ efforts to evaluate strategic-management activities, to make sure they are working, and to make timely changes guidelines are presented for formulating, implementing, and evaluating strategies nike is the exemplary company showcased because the firm continually evaluates its strategies and takes prompt corrective actions as needed, posting higher and higher revenues and profits every year the Strategy-evaluation Process, Criteria, and Methods the strategic-management process results in decisions that can have significant, long-lasting consequences erroneous strategic decisions can inflict severe penalties and can be exceedingly difficult, if not impossible, to reverse therefore, most strategists agree that strategy evaluation is vital to an organization’s well-being; timely evaluations can alert management to problems or potential problems before a situation becomes critical the strategy-evaluation process includes three basic activities: examine the underlying bases of a firm’s strategy Compare expected results with actual results take corrective actions to ensure that performance conforms to plans Figure 9-1 illustrates the strategy-evaluation stage of the strategic-management process (see white shading) adequate and timely feedback is the cornerstone of effective strategy evaluation Strategy evaluation can be no better than the information on which it is based too much pressure from top managers may result in lower managers contriving numbers they think will be satisfactory Strategy evaluation can be a complex and sensitive undertaking too much emphasis on evaluating strategies may be expensive and counterproductive no one likes to be evaluated too closely! the more managers attempt to evaluate the behavior of others, the less control they have yet too little or no evaluation can create even worse problems Strategy evaluation is essential to exemPLary comPany showcased nike, inc (nKe) The sportswear clothing giant, Nike, is running away from rival firms with both sales and earnings increases Headquartered in Beaverton, Oregon, Nike’s first-quarter (Q1) 2015 revenues rose 25 percent in western Europe, 12 percent in North America, and 20 percent in greater China Analyst Laurent Vasilescu recently announced “Nike is eating Adidas’ lunch, especially in western Europe.” Nike is doing an excellent job implementing its strategy to focus more on higher-margin products, higher average prices, and direct-to-consumer sales (includes Nike stores and Nike website) The company is capitalizing on the trend for people to wear gym clothes (called activewear) outside the gym Nike recently secured the endorsement of NBA superstar Kevin Durant, beating out rival Under Armour’s bid for that athlete Nike’s strategy evaluation activities have resulted in the company offering premium stores called NIKETOWNs, the largest Nike stores in the fleet Each NIKETOWN store features six or seven NIKE brand categories, providing the very best innovative product and services For example, the NIKE Running Store in New York City caters to the complete needs of the runner, and Nike’s House of Hoops for Basketball with Foot Locker is available, as well as the NIKE Track Club for runners with Finish Line and the Field House with Dick’s Sporting Goods Store Nike store variation strategies allow for premium pricing In addition, Nike has factory stores that provide a premium product to consumers shopping for value These stores attract higher customer shopper volumes Revenues for Nike’s 2015 Q2 rose 15 percent to $7.4 billion, while the company’s earnings per share increased 25 percent to $0.74 For that quarter, revenues for the Nike brand rose 17 percent to $7.0 billion, while the company’s Converse revenues rose 24 percent to $434 million The company’s net income for the quarter increased 23 percent to $655 million Source: Based on elaine low, “nike Sales Surge on europe, internet,” Investor’s Business Daily, September 26, 2014, a2 www.downloadslide.net CHaPter • Strategy review, evaluation, and Control 281 Chapter 10: Business Ethics/Social Responsibility/Environmental Sustainability Issues Perform External Audit Chapter Develop Vision and Mission Statements Chapter Establish Long-Term Objectives Chapter Generate, Evaluate, and Select Strategies Chapter Implement Strategies— Management Issues Chapter Implement Strategies— Marketing, Finance, Accounting, R&D, and MIS Issues Chapter Measure and Evaluate Performance Chapter Perform Internal Audit Chapter Chapter 11: Global/International Issues Strategy Formulation Strategy Implementation Strategy Evaluation Figure 9-1 A Comprehensive Strategic-Management Model Source: Fred r David, “How Companies Define their Mission,” Long Range Planning 22, no (June 1988): 40 See also anik ratnaningsih, nadjadji anwar, Patdono Suwignjo, and Putu artama Wiguna, “Balance Scorecard of David’s Strategic Modeling at industrial Business for national Construction Contractor of indonesia,” Journal of Mathematics and Technology, no (october 2010): 20 ensure that stated objectives are being achieved Strategists need to create an organizational culture where strategy evaluation is viewed as an opportunity to make the firm better, so the firm can compete better, so everyone in the firm can better, sharing in the firm’s increased profitability in many organizations, strategy evaluation is simply an appraisal of how well an organization has performed Have the firm’s assets increased? Has there been an increase in profitability? Have sales increased? Have productivity levels increased? Have profit margin, return on investment, and earnings-per-share ratios increased? Some firms argue that their strategy must have been correct if the answers to these types of questions are affirmative Well, the strategy or strategies may have been correct, but this type of reasoning can be misleading because strategy evaluation must have both a long-run and short-run focus Strategies often not affect shortterm operating results until it is too late to make needed changes Strategy evaluation is important because organizations face dynamic environments in which key external and internal factors often change quickly and dramatically Success today is no guarantee of success tomorrow! Joseph Stalin was a ruthless leader (from 1928 on) and premier (from 1941 on) of the Soviet union until his death in 1953 a famous quote from Stalin was: www.downloadslide.net 282 Part • Strategy evaluation “History shows that there are no invincible armies.” this quote reveals that even the mightiest, most successful firms must continually evaluate their strategies and be wary of rival firms an organization should never be lulled into complacency with success Countless firms have thrived one year only to struggle for survival the following year according to Peter Drucker, “unless strategy evaluation is performed seriously and systematically, and unless strategists are willing to act on the results, energy will be used up defending yesterday.” it is impossible to demonstrate conclusively that a particular strategy is optimal or even to guarantee that it will work one can, however, evaluate it for critical flaws richard rumelt offered four criteria that could be used to evaluate a strategy: consistency, consonance, feasibility, and advantage Described in table 9-1, consonance and advantage are mostly based on a firm’s external assessment, whereas consistency and feasibility are largely based on an internal assessment Demise can come quickly the internet financial news company 24/7 Wall Street annually identifies the worst companies to work for in the united States, and recently reported the Table 9-1 Rumelt’s Criteria for Evaluating Strategies Consistency it is important to strive for consistency when setting goals and policies organizational conflict and interdepartmental bickering are often symptoms of managerial disorder, but these problems may also be a sign of strategic inconsistency three guidelines help determine if organizational problems are the result of inconsistencies in strategy: • if managerial problems continue despite changes in personnel and if they tend to be issue-based rather than people-based, then strategies may be inconsistent • if success for one organizational department means, or is interpreted to mean, failure for another department, then strategies may be inconsistent • if policy problems and issues continue to be brought to the top for resolution, then strategies may be inconsistent Consonance Consonance refers to the need for strategists to examine sets of trends, as well as individual trends, in evaluating strategies a strategy must represent an adaptive response to the external environment and to the critical changes occurring within it one difficulty in matching a firm’s key internal and external factors in the formulation of strategy is that most trends are the result of interactions among other trends For example, the day care explosion came about as a combined result of many trends that included a rise in the average level of education, increased inflation, and an increase in women in the workforce although single economic or demographic trends might appear steady for many years, there are waves of change going on at the interaction level Feasibility a strategy must neither overtax available resources nor create unsolvable subproblems the final broad test of strategy is its feasibility; that is, can the strategy be attempted within the physical, human, and financial resources of the enterprise? the financial resources of a business are the easiest to quantify and are normally the first limitation against which strategy is evaluated it is sometimes forgotten, however, that innovative approaches to financing are often possible Devices, such as captive subsidiaries, sale-leaseback arrangements, and tying plant mortgages to long-term contracts, have all been used effectively to help win key positions in suddenly expanding industries a less quantifiable, but actually more rigid, limitation on strategic choice is that imposed by individual and organizational capabilities in evaluating a strategy, it is important to examine whether an organization has demonstrated in the past that it possesses the abilities, competencies, skills, and talents needed to carry out a given strategy Advantage a strategy must provide for the creation or maintenance of a competitive advantage in a selected area of activity Competitive advantages normally are the result of superiority in one of three areas: (1) resources, (2) skills, or (3) position the idea that the positioning of one’s resources can enhance their combined effectiveness is familiar to military theorists, chess players, and diplomats Position can also play a crucial role in an organization’s strategy once gained, a good position is defensible—meaning that it is so costly to capture that rivals are deterred from full-scale attacks Positional advantage tends to be self-sustaining so long as the key internal and environmental factors that underlie it remain stable this is why entrenched firms can be almost impossible to unseat, even if their raw skill levels are only average although not all positional advantages are associated with size, it is true that larger organizations tend to operate in markets and use procedures that turn their size into advantage, whereas smaller firms seek product or market positions that exploit other types of advantage the principal characteristic of good position is that it permits the firm to obtain advantage from policies that would not similarly benefit rivals without the same position therefore, in evaluating strategy, organizations should examine the nature of positional advantages associated with a given strategy Source: adapted from richard rumelt, “the evaluation of Business Strategy,” in W F glueck (ed.), Business Policy and Strategic Management (new york: Mcgraw-Hill, 1980), 359–367 used with permission www.downloadslide.net CHaPter • Strategy review, evaluation, and Control worst company to be Books-a-Million, followed by express Scripts, Frontier Communications, Jos. a Bank Clothiers, Brookdale Senior living, Dillards, aDt, hhgregg, Family Dollar Stores, Children’s Place, and, the 11th worst, radio Shack.1 Strategy evaluation is becoming increasingly difficult with the passage of time, for many reasons Domestic and world economies were more stable in years past, product life cycles were longer, product development cycles were longer, technological advancement was slower, change occurred less frequently, there were fewer competitors, foreign companies were generally weak, and there were more regulated industries other reasons why strategy evaluation is more difficult today include the following trends: a dramatic increase in the environment’s complexity the increasing difficulty of predicting the future with accuracy the increasing number of variables the rapid rate of obsolescence of even the best plans the increase in the number of both domestic and world events affecting organizations the decreasing time span for which planning can be done with any degree of certainty2 a fundamental problem facing managers today is how to effectively manage a workforce in light of modern organizational demands for greater flexibility, innovation, creativity, and initiative from employees.3 Managers need empowered employees acting responsibly and never putting the well-being of the business at risk the potential costs to companies in terms of damaged reputations, fines, missed opportunities, and diversion of management’s attention are enormous, and bad news oftentimes spreads like wildfire over social media too much pressure to achieve specific goals can lead to dysfunctional behavior For example, nordstrom, the upscale fashion retailer known for outstanding customer service, was subjected to lawsuits and fines when employees underreported hours worked to increase their sales per hour—the company’s primary performance criterion The Process of Evaluating Strategies Strategy evaluation is necessary for all sizes and kinds of organizations Strategy evaluation should initiate managerial questioning of expectations and assumptions, should trigger a review of objectives and values, and should stimulate creativity in generating alternatives and formulating criteria of evaluation.4 regardless of the size of the organization, a certain amount of “management by wandering around” at all levels is essential to effective strategy evaluation Strategy-evaluation activities should be performed on a continuing basis, rather than at the end of specified periods of time or just after problems occur Waiting until the end of the year, for example, could result in a firm closing the barn door after the horses have already escaped evaluating strategies on a continuous rather than on a periodic basis allows benchmarks of progress to be established and more effectively monitored Some strategies take years to implement; consequently, associated results may not become apparent for years Successful strategies combine patience with a willingness to promptly take corrective actions when necessary there always comes a time when corrective actions are needed in an organization! Centuries ago, a writer (perhaps Solomon) made the following observations about change: there is a time for everything, a time to be born and a time to die, a time to plant and a time to uproot, a time to kill and a time to heal, a time to tear down and a time to build, a time to weep and a time to laugh, a time to mourn and a time to dance, a time to scatter stones and a time to gather them, a time to embrace and a time to refrain, a time to search and a time to give up, a time to keep and a time to throw away, a time to tear and a time to mend, a time to be silent and a time to speak, a time to love and a time to hate, a time for war and a time for peace.5 283 www.downloadslide.net 284 Part • Strategy evaluation Managers and employees of the firm should be continually aware of progress being made toward achieving the firm’s objectives as key success factors change, organizational members should be involved in determining appropriate corrective actions if assumptions and expectations deviate significantly from forecasts, then the firm should renew strategy-formulation activities, perhaps sooner than planned in strategy evaluation, like strategy formulation and strategy implementation, people make the difference through involvement in the process of evaluating strategies, managers and employees become committed to keeping the firm moving steadily toward achieving objectives the three Strategy-evaluation activities table 9-2 summarizes the three strategy-evaluation activities in terms of key questions that should be addressed, alternative answers to those questions, and appropriate actions for an organization to take notice that corrective actions are almost always needed except when (1) external and internal factors have not significantly changed and (2) the firm is progressing satisfactorily toward achieving stated objectives relationships among strategy-evaluation activities are illustrated in Figure 9-2 Reviewing Bases of Strategy as shown in Figure 9-2, reviewing the underlying bases of an organization’s strategy could be approached by developing a revised eFe Matrix and iFe Matrix a revised IFE Matrix should focus on changes in the organization’s management, marketing, finance and accounting, production and operations, research and development (r&D), and management information systems (MiS) strengths and weaknesses a revised EFE Matrix should indicate how effective a firm’s strategies have been in response to key opportunities and threats this analysis could also address such questions as the following: How have competitors reacted to our strategies? How have competitors’ strategies changed? Have major competitors’ strengths and weaknesses changed? Why are competitors making certain strategic changes? Why are some competitors’ strategies more successful than others? How satisfied are our competitors with their present market positions and profitability? How far can our major competitors be pushed before retaliating? How could we more effectively cooperate with our competitors? numerous external and internal factors can prevent firms from achieving long-term and annual objectives externally, actions by competitors, changes in demand, changes in technology, economic Table 9-2 A Strategy-Evaluation Assessment Matrix Have Major Changes occurred in the Firm’s Have Major Changes occurred internal Strategic in the Firm’s external Strategic Position? Position? no yes yes yes yes no no no no yes yes no no yes yes no Has the Firm Progressed Satisfactorily toward achieving its Stated objectives? no yes no yes no yes no yes result take corrective actions take corrective actions take corrective actions take corrective actions take corrective actions take corrective actions take corrective actions Continue present strategic course www.downloadslide.net CHaPter • Strategy review, evaluation, and Control ACTIVITY ONE: REVIEW UNDERLYING BASES OF STRATEGY Prepare revised Internal Factor Evaluation (IFE) Matrix Prepare revised External Factor Evaluation (EFE) Matrix Compare revised to existing Internal Factor Evaluation (IFE) Matrix Compare revised to existing External Factor Evaluation (EFE) Matrix Do significant differences occur? YES NO ACTIVITY TWO: MEASURE ORGANIZATIONAL PERFORMANCE ACTIVITY THREE: TAKE CORRECTIVE ACTIONS Compare planned to actual progress toward meeting stated objectives Do significant differences occur? YES NO Continue present course Figure 9-2 A Strategy-Evaluation Framework changes, demographic shifts, and governmental actions may prevent objectives from being accomplished internally, ineffective strategies may have been chosen or implementation activities may have been poor objectives may have been too optimistic thus, failure to achieve objectives may not be the result of unsatisfactory work by managers and employees all organizational members need to know this to encourage their support for strategy-evaluation activities organizations desperately need to know as soon as possible when their strategies are not effective Sometimes managers and employees on the front lines discover this well before strategists 285 www.downloadslide.net 286 Part • Strategy evaluation external opportunities and threats and internal strengths and weaknesses that represent the bases of current strategies should continually be monitored for change it is not a question of whether these factors will change, but rather when they will change, and in what ways Here are some key questions to address in evaluating strategies: are our internal strengths still strengths? Have we added other internal strengths? if so, what are they? are our internal weaknesses still weaknesses? Do we now have other internal weaknesses? if so, what are they? are our external opportunities still opportunities? are there now other external opportunities? if so, what are they? are our external threats still threats? are there now other external threats? if so, what are they? are we vulnerable to a hostile takeover? Measuring Organizational Performance another important strategy-evaluation activity is measuring organizational performance this activity includes comparing expected results to actual results, investigating deviations from plans, evaluating individual performance, and examining progress being made toward meeting stated objectives Both long-term and annual objectives are commonly used in this process Criteria for evaluating strategies should be measurable and easily verifiable Criteria that predict results may be more important than those that reveal what already has happened For example, rather than simply being informed that sales in the last quarter were 20 percent under what was expected, strategists need to know that sales in the next quarter may be 20 percent below standard unless some action is taken to counter the trend really effective control requires accurate forecasting Failure to make satisfactory progress toward accomplishing long-term or annual objectives signals a need for corrective actions Many factors, such as unreasonable policies, unexpected turns in the economy, unreliable suppliers or distributors, or ineffective strategies, can result in unsatisfactory progress toward meeting objectives Problems can result from ineffectiveness (not doing the right things) or inefficiency (poorly doing the right things) Determining which objectives are most important in the evaluation of strategies can be difficult Strategy evaluation is based on both quantitative and qualitative criteria Selecting the exact set of criteria for evaluating strategies depends on a particular organization’s size, industry, strategies, and management philosophy an organization pursuing a retrenchment strategy, for example, could have a different set of evaluative criteria from an organization pursuing a marketdevelopment strategy Quantitative criteria commonly used to evaluate strategies are financial ratios, often monitored for each segment of the firm Strategists use financial ratios to make three critical comparisons: Compare the firm’s performance over different time periods Compare the firm’s performance to competitors Compare the firm’s performance to industry averages Many variables can and should be included in measuring organizational performance as indicated in table 9-3, typically a favorable or unfavorable variance is recorded monthly, quarterly, and annually, and resultant actions needed are then determined Some potential problems are associated with using only quantitative criteria for evaluating strategies First, most quantitative criteria are geared to annual objectives rather than long-term objectives also, different accounting methods can provide different results on many quantitative criteria third, intuitive judgments are almost always involved in deriving quantitative criteria thus, qualitative criteria are also important in evaluating strategies Human factors such as high absenteeism and turnover rates, poor production quality and quantity rates, or low employee satisfaction can be underlying causes of declining performance Marketing, finance and accounting, r&D, or MiS factors can also cause financial problems the need for a “balanced” quantitative/ qualitative approach in evaluating strategies gives rise in a moment to discussion of the balanced scorecard www.downloadslide.net CHaPter • Strategy review, evaluation, and Control Table 9-3 A Sample Framework for Measuring Organizational Performance Factor actual result expected result variance action needed Corporate revenues Corporate Profits Corporate roi region revenues region Profits region roi region revenues region Profits region roi Product revenues Product Profits Product roi Product revenues Product Profits Product roi Some additional key questions that reveal the need for qualitative judgments in strategy evaluation are as follows: How good is the firm’s balance of investments between high-risk and low-risk projects? How good is the firm’s balance of investments between long-term and short-term projects? How good is the firm’s balance of investments between slow-growing markets and fast-growing markets? How good is the firm’s balance of investments among different divisions? to what extent are the firm’s alternative strategies socially responsible? What are the relationships among the firm’s key internal and external strategic factors? How are major competitors likely to respond to particular strategies? Taking Corrective Actions the final strategy-evaluation activity, taking corrective actions, requires making changes to competitively reposition a firm for the future as indicated in table 9-4, examples of changes that may be needed are altering an organization’s structure, replacing one or more key individuals, selling a division, or revising a business mission other changes could include establishing or revising objectives, devising new policies, issuing stock to raise capital, adding additional salespersons, differently allocating resources, or developing new performance incentives taking corrective actions does not necessarily mean that existing strategies will be abandoned or even that new strategies must be formulated the probabilities and possibilities for incorrect or inappropriate actions increase geometrically with an arithmetic increase in personnel any person directing an overall undertaking must check on the actions of the participants as well as the results they have achieved if either the actions or results not comply with preconceived or planned achievements, then corrective actions are needed.6 McDonald’s is currently taking extensive corrective actions after recently reporting steep declines in its revenues and profits a company spokesman said, “We will diligently work to enhance our marketing, simplify our menu, and implement a more locally driven organizational structure to increase relevance with consumers.” in taking corrective actions, McDonald’s recently fired a Ceo, hired another Ceo, shuffled its management ranks, created a new organizational structure, and revamped its menu 287 www.downloadslide.net 650 Subject Index Strategies in Action (Chapter 5), 128–157 Backward integration, 134, 136–137 Bankruptcy, 142 Combination, 133 Defensive, 141–144 Diversification, 139–141 Divestiture, 142–143 Forward integration, 135–136 Franchising, 135–136 Generic, 144–148 Geographic expansion, 12 Horizontal integration, 137–138 In nonprofit and governmental organizations, 154–155 In small firms, 155–156 Levels of, 134 Liquidation, 143–144 Market development, 138 Market penetration, 138 Means for achieving, 148–152 Product development, 139 Related diversification, 139–140 Retrenchment, 141–142 Tactics, 152–154 Types of, 132–134 Unrelated diversification, 139–141 Vertical integration, 134 Strategos, 18 Strategists, 8–10 Strategy-structure relationship, 213–214 Strategy-supportive culture, 232–233 Strategy and culture, 94–96 Cultural products, 94 Strategy analysis and choice, (Chapter 6), 166–195 Analytical framework, 170–171 BCG Matrix, 178–181 Cultural aspects, 190 Decision stage, 171 Governance issues, 191–195 GRAND Matrix, 185–186 IE Matrix, 181–184 Input stage, 171 Matching stage, 171 Nature of analysis and choice, 168–170 Politics of, 190–191 QSPM, 186–190 SPACE Matrix, 174–178 SWOT Matrix, 171–174 Strategy Club, 37 Strategy Evaluation (Chapter 9), 278–299 Activities, 280, 284–288 Art vs Science Issue, 294–295 Auditing, 293–294 Balanced scorecard, 289–290 Challenges, 294–296 Characteristics of an effective evaluation system, 291–292 Guidelines for doing strategic planning, 296–297 Contingency planning, 292–293 Framework, 285, 287 Measuring organizational performance, 286–287 Published sources, 291 Questions to address, 286 Reviewing bases of strategy, 284–286 Review, evaluation, and control (Chapter 9), 278–299 Taking corrective actions, 287–288 Top-Down or Bottom-Up strategic planning, 296 Visible vs hidden issue, 295–296 Strategy formulation, 38–53 Analytical framework, 170–171 Cultural aspects, 190 Decision stage, 171 Framework, 171–190 Governance issues, 191–195 Input stage, 171 Matching stage, 171 Politics of, 190–191 vs strategy implementation, 206–208 Strategy implementation, Strategy implementation (Chapter 7) – Management and Operations Issues, 205–237 Annual objectives, 208–210 Balancing work life and home life, 227–228 Benefits of a diverse workforce, 228–229 Chandler’s strategy/structure relationship, 214 Corporate wellness programs, 233–235 Creating a strategy-supportive culture, 232–233 Do’s and dont’s in developing organization charts, 219–221 Divisional structure, 215–217 Employee stock ownership plans (ESOPs), 224–225 Functional structure, 214–215 Human resource concerns when implementing strategies, 225–236 Linking performance and pay to strategies, 225–227 Management and operations issues, 206, 212 Managing conflict, 213 Managing structure, 214–219 Managing resistance to change, 223 Matching structure with strategy, 213–214 Matrix structure, 218–219 Policies, 211 Production/Operations concerns, 222–225 Resource allocation, 211–213 Restructuring and reengineering, 222–223 Strategic business unit (SBU) structure, 214, 217–218 vs strategy formulation, 206–208 Strategy implementation (Chapter 8) – Marketing, Finance, R&D, MIS Issues, 242–271 Acquiring capital, 254–258 Advertising media, 245–247 Business analytics, 249 Company evaluation, 262–266 Current marketing issues, 244–245 Deciding whether to go public, 266–267 EPS-EBIT analysis, 254–258 Finance/Accounting issues, 253–254 Financial budgets, 253 Market segmentation, 247–250 Marketing issues, 244–245 MIS issues, 269–271 New principles of marketing, 247 Product positioning/Perceptual mapping, 250–253 Projected financial statement analysis, 258–262 Research and development issues, 267–269 Retention based segmentation, 249 Strategy profiles, 175–176 www.downloadslide.net Subject Index Strategy review, evaluation, and control (Chapter 9), 278–299 Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, 171–174 Strengths, 11–12 Structure and strategy, 213–214 Sum Total Attractiveness Scores (STAS) (in a QSPM), 187, 189 Sustainability, 306 Sustainability Report, 317–318 Sustained competitive advantage, (Implications for Strategists), 8, 119 SWOT Matrix/Analysis, 171–174 Symbols, 94 Synergy, 97 T Taking Corrective Actions, 287 Tax rates, 336–338 Technological forces, 68–69 Test marketing, 101 Threats, 10–11 Top-Down or Bottom-Up strategic planning, 296 Total Attractiveness Scores (TAS) (in a QSPM), 187, 189 Total costs, 102–103, 113, 146 Treasury stock, 104, 254 Tumbler, Turnaround strategy, 141 Tweet, 246 U Union membership across Europe, 333–334 Union membership across the USA, 67, 222 Unionized states, 67 Unrelated diversification, 139–141 Utility of mission statements, 47–48 V Vacant niche, 250 Value chain analysis (VCA), 113–116 Value of the dollar, 64 Values, 94–95 Variable costs, 108 Vertical consistency of objectives, 210 Vertical integration, 134 Visible vs hidden strategies, 295–296 Vision Statements, 40–41 Definition, 10 Examples, 41 Importance (Benefits) of, 44–46 W Wa, 338, 342 Weaknesses, 11–12 Weights vs ratings, 77–78, 116–117, 171, 174, 187, 189 Wellness programs, 233–235 Whistle-blowing, 310–311 Wikis, 246 Wildlife, 319–321 WO Strategies, 172 Women, 225–230 Workforce (production/operations function), 109, 228–229 Workplace romance, 312–313 Worth of a business, 262–266 WT Strategies, 171–172 Y YouTube, 8, 246, 501, 517 651 www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net This page intentionally left blank www.downloadslide.net Comprehensive Model of the Chapter 10: Perform External Audit Chapter Develop Vision and Mission Statements Chapter Establish Long-Term Objectives Chapter Perform Internal Audit Chapter Chapter 11: Strategy Formulation USED WIDELY AMONG BUSINESSES AND ACADEMIA WORLDWIDE Generate, Evaluate, and Select Strategies Chapter www.downloadslide.net Strategic-Management Process Business Ethics/Social Responsibility/ Environmental Sustainability Issues SIMPLE AND STRAIGHTFORWARD APPROACH TO STRATEGIC PLANNING Implement Strategies— Management Issues Chapter Implement Strategies— Marketing, Finance, Accounting, R&D, and MIS Issues Chapter Measure and Evaluate Performance Chapter Global/International Issues Strategy Implementation Strategy Evaluation USED TO INTEGRATE AND ORGANIZE ALL CHAPTERS IN THIS TEXT ... marrow is an HiV cure 319 www.downloadslide.net 320 Part • Key Strategic- ManageMent toPicS Many new Zealanders, supported by australians, are outraged about Japan’s large-scale whaling operations... criteria that could be used to evaluate a strategy: consistency, consonance, feasibility, and advantage Described in table 9-1, consonance and advantage are mostly based on a firm’s external assessment,... establish objectives and evaluate strategies on criteria other than financial measures Financial measures and ratios are vitally important in strategic planning, but of equal importance are factors