(BQ) Part 2 book Strategic management has contents: Strategy generation and selection, strategy implementation, strategy execution, strategy monitoring, guidelines for case analysis. (BQ) Part 2 book Strategic management has contents: Strategy generation and selection, strategy implementation, strategy execution, strategy monitoring, guidelines for case analysis.
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Over 10 million students improved their results using the Pearson MyLabs Visit mymanagementlab.com for simulations, tutorials, and end-of-chapter problems 254 M08_DAVI6894_15_GE_C08.indd 254 21/08/14 11:25 AM Find more at http://www.downloadslide.com Strategy Generation and Selection Chapter Objectives After studying this chapter, you should be able to the following: Describe a three-stage framework for choosing among alternative strategies Explain how to develop a Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, Strategic Position and Action Evaluation (SPACE) Matrix, Boston Consulting Group (BCG) Matrix, Internal-External (IE) Matrix, and Quantitative Strategic Planning Matrix (QSPM) Identify important behavioral, political, ethical, and social responsibility considerations in strategy analysis and choice Discuss the role of intuition in strategic analysis and choice Discuss the role of organizational culture in strategic analysis and choice Discuss the role of a board of directors in choosing among alternative strategies Assurance of Learning Exercises The following exercises are found at the end of this chapter exercise 8A Should Unilever Penetrate Southeast Asia Further? exercise 8B Perform a SWOT Analysis for Unilever’s Global Operations exercise 8C Preparing a BCG Matrix for Unilever exercise 8D Developing a SWOT Matrix for adidas AG exercise 8E Developing a SPACE Matrix for adidas AG exercise 8F Developing a BCG Matrix for adidas AG exercise 8G Developing a QSPM for adidas AG exercise 8H Developing a SWOT Matrix for Unilever exercise 8I Developing a SPACE Matrix for Unilever exercise 8J Developing a BCG Matrix for your College or University exercise 8k Developing a QSPM for a Company that You Are Familiar With exercise 8l Formulating Individual Strategies exercise 8m The Mach Test 255 M08_DAVI6894_15_GE_C08.indd 255 21/08/14 11:25 AM Find more at http://www.downloadslide.com 256 CHAPTER 8 • Strategy Generation and Selection S trategy analysis and choice largely involve making subjective decisions based on objective information This chapter introduces important concepts that can help strategists generate feasible alternatives, evaluate those alternatives, and choose a specific course of action Behavioral aspects of strategy formulation are described, including politics, culture, ethics, and social responsibility considerations Modern tools for formulating strategies are described, and the appropriate role of a board of directors is discussed As showcased below, Unilever is an example company pursuing an excellent strategic plan The Nature of Strategy Analysis and Choice As indicated by Figure 8-1 with white shading, this chapter focuses on generating and evaluating alternative strategies, as well as selecting strategies to pursue Strategy analysis and choice seek to determine alternative courses of action that could best enable the firm to achieve its mission and objectives The firm’s present strategies, objectives, vision, and mission, coupled with the external and internal audit information, provide a basis for generating and evaluating feasible alternative strategies This systematic approach is the best way to avoid a crisis Rudin’s Law states: “When a crisis forces choosing among alternatives, most people choose the worst possible one.” Unless a desperate situation confronts the firm, alternative strategies will likely represent incremental steps that move the firm from its present position to a desired future position Alternative strategies not come out of the wild blue yonder; they are derived from the firm’s vision, mission, objectives, external audit, and internal audit; they are consistent with, or build on, past strategies that have worked well The Process of Generating and Selecting Strategies Strategists never consider all feasible alternatives that could benefit the firm because there are an infinite number of possible actions and an infinite number of ways to implement those actions Therefore, a manageable set of the most attractive alternative strategies must be developed The advantages, disadvantages, trade-offs, costs, and benefits of these strategies should be determined This section discusses the process that many firms use to determine an appropriate set Excellent Strategic Management Showcased Unilever Unilever, the world’s third-largest consumer goods company behind Procter & Gamble and Nestle, is an Anglo–Dutch company whose products include foods, beverages, cleaning agents and personal care products Unilever is a dual listed company consisting of Unilever N.V based in Rotterdam, Netherlands, and Unilever PLC based in London – but both companies have the same directors and operate as a single business Some of Unilever’s best selling among its 450 brands are Aviance, Ben & Jerry’s, Dove, Flora/Becel, Heartbrand ice creams, Hellmann’s, Knorr, Lipton, Lux/Radox, Omo/Surf, Sunsilk, Toni & Guy, VO5, and PG Tips In December 2012, Unilever began phasing out by 2015 the use of microplastics in their personal care products In January 2013, Unilever divested its Skippy peanut butter brand, together with related manufacturing facilities in Little Rock, Arkansas, United States and Weifang, China, to Hormel Foods for approximately $700 million In July 2013, Unilever increased its stake in its Indian unit, Hindustan Unilever, to 67 percent for around €2.45 billion M08_DAVI6894_15_GE_C08.indd 256 In August 2013, Unilever signed an agreement for the sale of its Wish-Bone and Western dressings brands to Pinnacle Foods Inc for $580 million, subject to regulatory approval In 2013, Fortune ranked Unilever as the 39th most admired company in the world outside the United States In September 2013, Unilever acquired T2, a premium Australian tea company that generated sales approaching AUS$57 million for the 12-month period ending June 30 2013 Unilever is the largest tea company in the world T2 operates 40 stores and its range of fragrant teas and tea wares from around the world are also sold through some of the best restaurants in the country 21/08/14 11:25 AM Find more at http://www.downloadslide.com CHAPTER 8 • Strategy Generation and Selection 257 Chapter 2: Outside-USA Strategic Planning The Internal Audit Chapter Vision and Mission Analysis Chapter Types of Strategies Chapter Strategy Generation and Selection Chapter Strategy Implementation Chapter Strategy Execution Chapter 10 Strategy Monitoring Chapter 11 The External Audit Chapter Chapter 3: Global/International Issues Strategy Formulation Strategy Implementation Strategy Evaluation Figure 8-1 A Comprehensive Strategic-Management Model Source: Fred R David, adapted from “How Companies Define Their Mission,” Long Range Planning 22, no (June 1988): 40, © Fred R David of alternative strategies Recommendations (strategies selected to pursue) come from alternative strategies formulated Identifying and evaluating alternative strategies should involve many of the managers and employees who previously assembled the organizational vision and mission statements, performed the external audit, and conducted the internal audit Representatives from each department and division of the firm should be included in this process, as was the case in previous strategy-formulation activities Recall that involvement provides the best opportunity for managers and employees to gain an understanding of what the firm is doing and why and to become committed to helping the firm accomplish its objectives All participants in the strategy analysis and choice activity should have the firm’s external and internal audit information available This information, coupled with the firm’s mission statement, will help participants crystallize in their own minds particular strategies that they believe could benefit the firm most Creativity should be encouraged in this thought process Alternative strategies proposed by participants should be considered and discussed in a meeting or series of meetings Proposed strategies should be listed in writing When all feasible strategies identified by participants are given and understood, the strategies should be ranked M08_DAVI6894_15_GE_C08.indd 257 21/08/14 11:25 AM Find more at http://www.downloadslide.com 258 CHAPTER 8 • Strategy Generation and Selection in order of attractiveness by all participants, with = should not be implemented, = possibly should be implemented, = probably should be implemented, and = definitely should be implemented This process will result in a prioritized list of best strategies that reflects the collective wisdom of the group A Comprehensive Strategy-Formulation Analytical Framework Important strategy-formulation techniques can be integrated into a three-stage decisionmaking framework, as shown in Figure 8-2 The tools presented in this framework are applicable to all sizes and types of organizations and can help strategists identify, evaluate, and select strategies Stage of the formulation framework consists of the EFE Matrix, the IFE Matrix, and the Competitive Profile Matrix (CPM) Called the input stage, Stage summarizes the basic input information needed to formulate strategies Stage 2, called the matching stage, focuses on generating feasible alternative strategies by aligning key external and internal factors Stage techniques include the Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, the Strategic Position and Action Evaluation (SPACE) Matrix, the Boston Consulting Group (BCG) Matrix, the Internal-External (IE) Matrix, and the Grand Strategy Matrix Stage 3, called the decision stage, involves a single technique, the Quantitative Strategic Planning Matrix (QSPM) A QSPM uses input information from Stage to objectively evaluate feasible alternative strategies identified in Stage A QSPM reveals the relative attractiveness of alternative strategies and thus provides objective basis for selecting specific strategies All nine techniques included in the strategy-formulation framework require the integration of intuition and analysis Autonomous divisions in an organization commonly use strategy- formulation techniques to develop strategies and objectives Divisional analyses provide a basis for identifying, evaluating, and selecting among alternative corporate-level strategies Strategists themselves, not analytic tools, are always responsible and accountable for strategic decisions Lenz emphasized that the shift from a words-oriented to a numbers oriented planning process can give rise to a false sense of certainty; it can reduce dialogue, discussion, and argument as a means for exploring understandings, testing assumptions, and fostering organizational learning.1 Strategists, therefore, must be wary of this possibility and use analytical tools to facilitate, rather than to diminish, communication Without objective information and analysis, personal biases, politics, emotions, personalities, and halo error (the tendency to put too much weight on a single factor) unfortunately may play a dominant role in the strategy-formulation process STAGE 1: THE INPUT STAGE External Factor Evaluation (EFE) Matrix Competitive Profile Matrix (CPM) Internal Factor Evaluation (IFE) Matrix STAGE 2: THE MATCHING STAGE Strengths-Weaknesses- Strategic Position and Opportunities-Threats Action Evaluation (SWOT) Matrix (SPACE) Matrix Boston Consulting Group (BCG) Matrix Internal-External (IE) Matrix Grand Strategy Matrix STAGE 3: THE DECISION STAGE Quantitative Strategic Planning Matrix (QSPM) Figure 8-2 The Strategy-Formulation Analytical Framework M08_DAVI6894_15_GE_C08.indd 258 21/08/14 11:25 AM Find more at http://www.downloadslide.com CHAPTER 8 • Strategy Generation and Selection 259 The Input Stage Procedures for developing an EFE Matrix, an IFE Matrix, and a CPM were presented in Chapters and The information derived from these three matrices provides basic input information for the matching and decision stage matrices described later in this chapter The input tools require strategists to quantify subjectivity during early stages of the strategy-formulation process Making small decisions in the input matrices regarding the relative importance of external and internal factors allows strategists to more effectively generate and evaluate alternative strategies Good intuitive judgment is always needed in determining appropriate weights and ratings The Matching Stage Strategy is sometimes defined as the match an organization makes between its internal resources and skills and the opportunities and risks created by its external factors.2 The matching stage of the strategy-formulation framework consists of five techniques that can be used in any sequence: the SWOT Matrix, the SPACE Matrix, the BCG Matrix, the IE Matrix, and the Grand Strategy Matrix These tools rely on information derived from the input stage to match external opportunities and threats with internal strengths and weaknesses Matching external and internal critical success factors is the key to effectively generating feasible alternative strategies For example, a firm with excess working capital (an internal strength) could take advantage of the cell phone industry’s 20 percent annual growth rate (an external opportunity) by acquiring Cellfone, Inc., a firm in the cell phone industry This example portrays simple one-to-one matching In most situations, external and internal relationships are more complex, and the matching requires multiple alignments for each strategy generated Successful matching of key external and internal factors depends upon those underlying key factors being both specific and actionable The basic concept of matching is illustrated in Table 8-1 Any organization, whether military, product-oriented, service-oriented, governmental, or even athletic, must develop and execute good strategies to win A good offense without a good defense, or vice versa, usually leads to defeat Developing strategies that use strengths to capitalize on opportunities could be considered an offense, whereas strategies designed to improve on weaknesses while avoiding threats could be termed defensive Every organization has some external opportunities and threats and internal strengths and weaknesses that can be aligned to formulate feasible alternative strategies The SWOT Matrix The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix is an important matching tool that helps managers develop four types of strategies: SO (strengths-opportunities) strategies, WO (weaknesses-opportunities) strategies, ST (strengths-threats) strategies, and WT (weaknesses-threats) strategies.3 Matching key external and internal factors is the most difficult part of developing a SWOT Matrix and requires good judgment—and there is no one best set of matches Note in Table 8-1 that the first, second, third, and fourth strategies are SO, WO, ST, and WT strategies, respectively Table 8-1 Matching Key External and Internal Factors to Formulate Alternative Strategies Key Internal Factor Key External Factor Resultant Strategy Excess working capital (an internal strength) + 20 percent annual growth in the cell phone industry (an external opportunity) = Acquire Cellfone, Inc Insufficient capacity (an internal weakness) + Exit of two major foreign competitors from the industry (an external opportunity) = Pursue horizontal integration by buying competitors’ facilities Strong research and development expertise (an internal strength) + Decreasing numbers of younger adults (an external threat) = Develop new products for older adults Poor employee morale (an internal weakness) + Rising health-care costs (an external threat) = Develop a new wellness program M08_DAVI6894_15_GE_C08.indd 259 21/08/14 11:25 AM Find more at http://www.downloadslide.com 260 CHAPTER 8 • Strategy Generation and Selection SO strategies use a firm’s internal strengths to take advantage of external opportunities All managers would like their organization to be in a position in which internal strengths can be used to take advantage of external trends and events Organizations generally will pursue WO, ST, or WT strategies to get into a situation in which they can apply SO strategies When a firm has major weaknesses, it will strive to overcome them and make them strengths When an organization faces major threats, it will seek to avoid them to concentrate on opportunities WO strategies aim at improving internal weaknesses by taking advantage of external opportunities Sometimes key external opportunities exist, but a firm has internal weaknesses that prevent it from exploiting those opportunities For example, there may be a high demand for electronic devices to control the amount and timing of fuel injection in automobile engines (opportunity), but a certain auto parts manufacturer may lack the technology required for producing these devices (weakness) One possible WO strategy would be to acquire this technology by forming a joint venture with a firm having competency in this area An alternative WO strategy would be to hire and train people with the required technical capabilities ST strategies use a firm’s strengths to avoid or reduce the impact of external threats This does not mean that a strong organization should always meet threats in the external environment head-on An example ST strategy occurred when Texas Instruments used an excellent legal department (a strength) to collect nearly $700 million in damages and royalties from nine Japanese and Korean firms that infringed on patents for semiconductor memory chips (threat) Rival firms that copy ideas, innovations, and patented products are a major threat in many industries This is still a major problem for U.S firms selling products in China WT strategies are defensive tactics directed at reducing internal weakness and avoiding external threats An organization faced with numerous external threats and internal weaknesses may indeed be in a precarious position In fact, such a firm may have to fight for its survival, merge, retrench, declare bankruptcy, or choose liquidation A schematic representation of the SWOT Matrix is provided in Figure 8-3 Note that a SWOT Matrix is composed of nine cells As shown, there are four key factor cells, four strategy cells, and one cell that is always left blank (the upper-left cell) The four strategy cells, labeled SO, WO, ST, and WT, are developed after completing four key factor cells, labeled S, W, O, and T There are eight steps involved in constructing a SWOT Matrix: List the firm’s key external opportunities List the firm’s key external threats List the firm’s key internal strengths List the firm’s key internal weaknesses Match internal strengths with external opportunities, and record the resultant SO strategies in the appropriate cell Match internal weaknesses with external opportunities, and record the resultant WO strategies Match internal strengths with external threats, and record the resultant ST strategies Match internal weaknesses with external threats, and record the resultant WT strategies Some important aspects of a SWOT Matrix are evidenced in Figure 8-3 For example, note that both the internal and external factors and the SO, ST, WO, and WT strategies are stated in quantitative terms to the extent possible This is important For example, regarding the second SO number-2 and ST number-1 strategies, if the analyst just said, “Add new repair and service persons,” the reader might think that 20 new repair and service persons are needed Actually only two are needed Always be specific to the extent possible in stating factors and strategies It is also important to include the “S1, O2” type notation after each strategy in a SWOT Matrix This notation reveals the rationale for each alternative strategy Strategies not rise out of the blue Note in Figure 8-3 how this notation reveals the internal and external factors that were matched to formulate desirable strategies For example, note that this retail computer store business may need to “purchase land to build new store” because a new Highway 34 will make its location less desirable The notation (W2, O2) and (S8, T3) in Figure 8-3 exemplifies this matching process The purpose of each Stage matching tool is to generate feasible alternative strategies, not to select or determine which strategies are best Not all of the strategies developed in the SWOT Matrix, therefore, will be selected for implementation The strategy-formulation guidelines provided in Chapter can enhance the process of matching key external and internal factors For example, when an organization has both the M08_DAVI6894_15_GE_C08.indd 260 21/08/14 11:25 AM Find more at http://www.downloadslide.com CHAPTER 8 • Strategy Generation and Selection 261 Strengths Inventory turnover up 5.8 to 6.7 Average customer purchase up $97 to $128 Employee morale is excellent In-store promotions = 20 percent increase in sales Newspaper advertising expenditures down 10 percent Revenues from repair and service in store up 16 percent In-store technical support persons have MIS degrees Store’s debt-to-total-assets ratio down 34 percent Opportunities Population of city growing 10 percent Rival computer store opening one mile away Vehicle traffic passing store up 12 percent Vendors average six new products a year Senior citizen use of computers up 8 percent Small business growth in area up 10 percent Desire for websites up 18 percent by realtors Desire for websites up 12 percent by small firms Threats Best Buy opening new store in one year nearby Local university offers computer repair New bypass Hwy 34 in year will divert traffic New mall being built nearby Gas prices up 14 percent Vendors raising prices percent SO Strategies Add four new in-store promotions monthly (S4, O3) Add two new repair and service persons (S6, O5) Send flyer to all seniors over age 55 (S5, O5) ST Strategies Hire two more repair persons and market these new services (S6, S7, T1) Purchase land to build new store (S8, T3) Raise out-of-store service calls from $60 to $80 (S6, T5) Weaknesses Software revenues in store down 12 percent Location of store hurt by new Hwy 34 Carpet and paint in store in disrepair Bathroom in store needs refurbishing Total store revenues down percent Store has no website Supplier on-time-delivery up to 2.4 days Customer checkout process too slow Revenues per employee up 19 percent WO Strategies Purchase land to build new store (W2, O2) Install new carpet, paint, and bath (W3, W4, O1) Up website services by 50 percent (W6, O7, O8) Launch mailout to all realtors in city (W5, O7) WT Strategies Hire two new cashiers (W8, T1, T4) Install new carpet, paint, and bath (W3, W4, T1) Figure 8-3 A SWOT Matrix for a Retail Computer Store capital and human resources needed to distribute its own products (internal strength) and distributors are unreliable, costly, or incapable of meeting the firm’s needs (external threat), forward integration can be an attractive ST strategy When a firm has excess production capacity (internal weakness) and its basic industry is experiencing declining annual sales and profits (external threat), related diversification can be an effective WT strategy Although the SWOT matrix is widely used in strategic planning, the analysis does have some limitations.4 First, SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself The matrix should be the starting point for a discussion on how proposed strategies could be implemented as well as cost-benefit considerations that ultimately could lead to competitive advantage Second, SWOT is a static assessment (or snapshot) in time M08_DAVI6894_15_GE_C08.indd 261 21/08/14 11:25 AM Find more at http://www.downloadslide.com 262 CHAPTER 8 • Strategy Generation and Selection A SWOT matrix can be like studying a single frame of a motion picture where you see the lead characters and the setting but have no clue as to the plot As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix Third, SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies The Strategic Position and Action Evaluation (SPACE) Matrix The Strategic Position and Action Evaluation (SPACE) Matrix, another important Stage 2 matching tool, is illustrated in Figure 8-4 Its four-quadrant framework indicates whether aggressive, conservative, defensive, or competitive strategies are most appropriate for a given organization The axes of the SPACE Matrix represent two internal dimensions (financial position [FP] and competitive position [CP]) and two external dimensions (stability position [SP] and industry position [IP]) These four factors are perhaps the most important determinants of an organization’s overall strategic position.5 It is helpful here to elaborate upon the difference between the SP and IP axes SP refers to the volatility of profits and revenues for firms in a given industry SP volatility (stability) is based on the expected impact of changes in core external factors such as technology, economy, demographic, seasonality, etc.) The higher frequency and magnitude of the changes the more unstable on SP An industry can be stable or unstable on SP, yet high or low on IP The smartphone industry for example would be unstable on SP yet high growth on IP, whereas the carbonated beverage industry would be stable on SP yet low growth on IP FP • • • • +7 Conservative Market penetration Market development Product development Related diversification Aggressive Backward, forward, horizontal integration • Market penetration • Market development • Product development • Diversification (related or unrelated) +6 • +5 +4 +3 +2 +1 CP IP –7 –6 –5 –4 –3 –2 –1 +1 +2 +3 +4 +5 +6 +7 –1 • • • Defensive Retrenchment Divestiture Liquidation –2 Competitive Backward, forward, horizontal integration • Market penetration • Market development • Product development • –3 –4 –5 –6 –7 Figure 8-4 The SPACE Matrix SP Source: Based on H Rowe, R Mason, and K Dickel, Strategic Management and Business Policy: A Methodological Approach (Reading, MA: Addison-Wesley Publishing Co Inc., © 1982), 155 M08_DAVI6894_15_GE_C08.indd 262 21/08/14 11:25 AM Find more at http://www.downloadslide.com CHAPTER 8 • Strategy Generation and Selection 263 Depending on the type of organization, numerous variables could make up each of the dimensions represented on the axes of the SPACE Matrix Factors that were included in the firm’s EFE and IFE matrices should be considered in developing a SPACE Matrix Other variables commonly included are given in Table 8-2 For example, return on investment, leverage, liquidity, working capital, and cash flow are commonly considered to be determining factors of an organization’s financial strength Like the SWOT Matrix, the SPACE Matrix should be both tailored to the particular organization being studied and based on factual information as much as possible The steps required to develop a SPACE Matrix are as follows: Select a set of variables to define financial position (FP), competitive position (CP), stability position (SP), and industry position (IP) Assign a numerical value ranging from +1 (worst) to +7 (best) to each of the variables that make up the FP and IP dimensions Assign a numerical value ranging from –1 (best) to –7 (worst) to each of the variables that make up the SP and CP dimensions On the FP and CP axes, make comparison to competitors On the IP and SP axes, make comparison to other industries Compute an average score for FP, CP, IP, and SP by summing the values given to the variables of each dimension and then by dividing by the number of variables included in the respective dimension Plot the average scores for FP, IP, SP, and CP on the appropriate axis in the SPACE Matrix Add the two scores on the x-axis and plot the resultant point on X Add the two scores on the y-axis and plot the resultant point on Y Plot the intersection of the new xy point Draw a directional vector from the origin of the SPACE Matrix through the new intersection point This vector reveals the type of strategies recommended for the organization: aggressive, competitive, defensive, or conservative Some examples of strategy profiles that can emerge from a SPACE analysis are shown in Figure 8-5 The directional vector associated with each profile suggests the type of strategies to pursue: aggressive, conservative, defensive, or competitive When a firm’s directional vector is located in the aggressive quadrant (upper-right quadrant) of the SPACE Matrix, an organization is in an excellent position to use its internal strengths to (a) take advantage of external opportunities, (b) overcome internal weaknesses, and (c) avoid external threats Therefore, market penetration, market Table 8-2 Example Factors That Make Up the SPACE Matrix Axes Internal Strategic Position External Strategic Position Financial Position (FP) Stability Position (SP) Return on investment Leverage Liquidity Working capital Cash flow Inventory turnover Earnings per share Price earnings ratio Technological changes Rate of inflation Demand variability Price range of competing products Barriers to entry into market Competitive pressure Ease of exit from market Price elasticity of demand Risk involved in business Competitive Position (CP) Industry Position (IP) Market share Product quality Product life cycle Customer loyalty Capacity utilization Technological know-how Control over suppliers and distributors Growth potential Profit potential Financial stability Extent leveraged Resource utilization Ease of entry into market Productivity, capacity utilization Source: Based on H Rowe, R Mason, and K Dickel, Strategic Management and Business Policy: A Methodological Approach (Reading, MA: Addison-Wesley Publishing Co Inc., © 1982), 155–156 M08_DAVI6894_15_GE_C08.indd 263 21/08/14 11:25 AM Find more at http://www.downloadslide.com 672 Glossary Vertical consistency of objectives Compatibility of objectives from the CEO (corporate level) down to the Presidents (divisional level) on down to the Managers (functional level) White knight When a firm agrees to acquire another firm at a point in time when that other firm is facing a hostile takeover by some company Vertical integration A combination of three strategies: backward, forward, and horizontal integration, allowing a firm to gain control over distributors, suppliers, and/or competitors respectively Wikis Websites that allows users to add, delete, and edit content regarding frequently asked questions and information across the firm’s whole value chain of activities Vision statement A one sentence statement that answers the question, “What we want to become?” Vision statement Answers the question, “What we want to become?” Wa In Japan, this stresses group harmony and social cohesion Whistle-blowing The act of telling authorities about some unethical or illegal activities occurring within an organization of which you are aware Z01_DAVI6894_15_GE_GLOS.indd 672 WO strategies Strategies that result from matching a firm’s internal weaknesses with its external opportunities Workplace romance An intimate relationship between two truly consenting employees, as opposed to sexual harassment, which the EEOC defines broadly as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature WT strategies Strategies that result from matching a firm’s internal weaknesses with its external threats 21/08/14 3:45 PM Find more at http://www.downloadslide.com Name Index A Aaker, David A., 326 Abe, Shinzo, 89 Abetti, Pier, 329 Abratt, Russell, 126 Achler, Mark, 43 Aguinis, Herman, 104, 126, 389 Ahmed, Rumman, 107 Aldrich, Drew, 43 Alexander the Great, 53 Allan, Graham, 96 Allarie, Y., 194, 223, 293 Allen, James, 57 Allio, Michael K., 366 Allio, Robert J., 250 Alpert, Lukas, 72 Alston, Jon, 106 Ansoff, Igor, 223 Ante, Spencer, 223, 329 Aquino, Karl, 126 Aristotle, 53 Armour, Stephanie, 368 Arms, Hanjo, 287 Arora, Ashish, 221 Ashkenas, Suzanne Francis, 163 Avolio, Bruce J., 126 B Bachelet, Michelle, 361 Baetz, Mark, 174, 185 Baig, Edward, 329 Balmer, John M., 326 Barczak, Gloria, 163 Barnett, Michael L., 126 Barney, J B., 223 Bart, Christopher, 174, 185 Bartkus, Barbara, 182 Bartlett, C A., 343, 368 Bastin, Lucy, 366 Bauerlein, Valerie, 329 Bayles, Carter, 381 Bear Bryant, 56 Bedeian, A G., 368 Beeson, John, 366 Bellin, Joshua, 104 Berchicci, Luca, 250 Berg, Norman, 274 Bergman, B., 223 Berlin, Jon, 43 Berman, Saul J., 250 Bernstein, Elizabeth, 128 Berthon, Pierre R., 104 Bettis, Richard A., 287 Beyer, J M., 193 Biggadike, Ralph, 329 Birkenfeld, Brad, 113–114 Blettner, Daniela P., 287 Bloom, Nicholas, 104 Bornhorst, Don, 148 Bouchikhi, Hamid, 163 Boulton, William, 212, 223 Z02_DAVI6894_15_GE_NIDX.indd 673 Brandt, Steven C., 167 Brewer, Rosalind, 319, 361 Bridge, John, 73 Bronchick, Jeffrey, 283 Brook, Tom, 129 Brown, Brian, 233 Brown, Richard, 352, 368 Burdick, Charles, 348 Byrne, John, 167 C Cafaro, Debra, 352 Campbell, Andrew, 174, 185, 366 Campbell, Benjamin, 366 Cardinal, L B., 72 Carroll, Archie, 129 Casey, Nicholas, 107 Cerruti, James, 126 Chaddad, Fernando R., 287 Challenger, John, 112 Chandler, Alfred, 340 Chandran, Rajan, 385, 392 Chasan, Emily, 368 Chatterjee, Sayan, 57, 389 Chen, Ming-Jer, 253 Childress, Sarah, 107 Chipp, Kerry, 126 Chng, Daniel Han Ming, 366 Christensen, Roland, 274 Christie, Richard, 292 Chu, Kathy, 107, 329 Cleland, D I., 174, 185 Coff, Russell, 366 Collier, David, 182 Collins, David, 182 Conger, Jay, 43, 182 Connelly, Brian L., 287 Copeland, Gina, 43 Cote, David, 350 Crittenden, Victoria L., 326 Crook, T Russell, 389 Csaszar, Felipe A., 366 Cyert, Richard, 160 D Daft, Richard, 223 Damanaki, Maria, 123 Darien, Steven, 353 Dassler, Adolf ‘Adi’, 48 David, Fred R., 47, 72, 77, 111, 135, 167, 189, 227, 257, 292, 293, 297, 333, 373 Davidowitz, Howard, 230 Davidson, Kenneth, 140, 167 Davis, Bob, 107 Davis, Paul J., 366 Dawson, Jeremy F., 366 Day, George, 182 Deal, T., 355, 368 Deimler, Mike, 57 Deming, Edward, 40, 56, 216 Denning, Stephen, 326, 366 Dess, Greg, 292 Dezsö, Cristian L., 366 Dickel, K., 262–264, 292 Dilworth, J., 211 Dimon, Jamie, 112 Dimotakis, Nikolaos, 126 Donaldson, Thomas, 287 Dorf, Paul, 112 Dowell, Glen, 250 Doz, Yves L., 167 Drucker, Peter, 40, 41, 72, 113, 128, 171, 175, 181, 185, 197, 223, 374 Dumaine, Brian, 185, 223 Duncan, Jack, 353, 368 Durant, Will, 40 Dvorak, Phred, 128, 293 E Einstein, Albert, 40 Eisenstat, Russell, 57 Eisner, Alan, 292 Erez, M., 380, 392 Erickson, Tamara, 223 Ester, Mike, 368 Etter, Lauren, 363 Evans, J., 223 Everton, Richard, 232 F Fahey, Liam, 250 Ferguson, Renee Boucher, 287 Fernhaber, Stephanie A., 287 Fieldstad, Øystein D., 163 Firsirotu, M., 223, 293 Floyd, Steven W., 366 Foote, Nathaniel, 57 Foss, Nicolai J., 221 Fox, Justin, 326 Francis, Michael, 374 Fredberg, Tobias, 57 Fremeth, Adam R., 126 Freund, York, 229, 253 Friedman, Milton, 117, 118 Frisch, Bob, 57 Fuhrmans, Vanessa, 107 Fulmer, C., 366 Fulmer, William, 49 G Gamble, John, 167 Gangopadhyay, Abhrajit, 107 Garcia-Canal, Esteban, 326 Gastel, Daniel, 43 Gavetti, Giovanni, 57 Geis, Florence, 292 Gelfand, Michele J., 368 Gellerman, Saul, 113, 128 Genakos, Christos, 104 George, Bill, 368 George, Claude Jr., 191, 223, 392 Geun-hye, Park, 87 673 18/08/14 5:56 PM Find more at http://www.downloadslide.com 674 Name Index Ghoshal, S., 343, 368 Gib, Andre, 293 Gillard, Julia, 87 Gilrane, Veronica L., 366 Gino, Francesca, 366 Glassman, Myron, 182 Glavas, Ante, 126 Gluck, Frederick, 73, 106 Glueck, Willian F., 368, 374 Goldman, Michael, 126 Goolsbee, Austan, 38 Gottfredson, Ryan K., 104, 389 Govindarajan, Vijay, 104 Graham, Billy (Reverend), 113 Grant, Robert, 191, 223, 292 Greco, Joann, 128 Greenbaum, Rebecca L., 126 Greenley, Gordon, 73 Guerras, Luis Ángel, 57 Guha, Romit, 107 Guillén, Mauro F., 326 Guinan, Patricia, 298, 329 Gulati, Ranjay, 366 Gupta, Sunil, 329 Guth, William, 293 H Hagerty, James, 167 Haleblian, Jerayr, 163 Hambrick, Donald C., 326 Hamel, Gary, 167, 366 Hannah, Sean T., 126 Hannon, Kerry, 129 Hansen, F., 135, 167 Harper, Stephen, 72 Harrigan, Kathryn R., 153, 167 Hattori, Susumu, 104 He, Jinyu, 287 Heinick, Rick, 163 Henderson, Bruce, 41 Henry, J., 368 Hewson, Marillyn, 361 Hodges, Jan, 200 Hofer, Charles W 212, 223, 387, 392 Hollande, Francois, 79 Honeycutt, Earl D., 104 Hookway, James, 107 Horne, James van, 202, 223 Hoy, Frank, 129 Huang, Zhi, 287 Hurt, Frank, 148 Hussey, D., 380, 392 Hutchins, Nate, 326 Hwelett, Sylvia, 92 I Ibarra, Herminia, 182 Ibsen, H., 355, 368 Ichii, Shigeki, 104 Ichioka, Sachiko, 118 Ignatius, Adi, 104 Isaacson, Walter, 57 J James, LeBron, 201 Jargon, Julie, 107 Z02_DAVI6894_15_GE_NIDX.indd 674 Jayachandran, S., 253 Jiabao, Wen, 97 Jin, Wang, 361 Johnson, Ron, 200, 374 Johnsone, Tim, 43 Johnston, Hugh, 352 Jones, Ashby, 128 Joo, Harry, 104, 389 Joseph, John, 287 Jules, Claudy, 104 Jung, Andrea, 114 K Kagame, Paul, 95 Kahane, Adam, 389 Kahn, Kenneth B., 163 Kalinowski, Mark, 138 Kanfer, F., 380, 392 Kaplan, Robert, 381 Karim, Samina, 366 Karnani, Aneel, 126 Katzenbach, Jon R., 366 Kellermanns, Franz W., 287 Kemper, Don, 362 Kennedy, A., 355, 368 Kennedy, Simon, 107 Kent, Muhtar, 345 Ketchen, David J., 57 Khosla, Lalita, 106 Kiely, Kathy, 72 Kim, Kwang-Ho, 250 Kimberly, John R., 163 King, Andrew A., 250 King, Eden B., 366 King, William R., 174, 185, 190, 223 Kirchner, Cristina, 361 Kirkpatrick, Shelley, 197, 223 Kiron, David, 287 Kleiderman, Valeska, 287 Kleyn, Nicola, 126 Knap, Barry, 144 Knauss, Don, 152 Knott, Anne Marie, 221 Knotts, Rose, 86, 106 Knudsen, Thorbjorn, 366 Koch, Franz, 43 Kolev, Kalin, 163 Kotler, Philip, 301 Kozlowski, Steve W J., 126 Krantz, Matt, 223 Kronley, Caroline, 366 Kryscynski, David, 366 Kubasik, Chris, 116, 361 Kumar, V., 326 L Ladstaetter-Fussenegger, Florian, 57, 389 Lafley, A.G., 57, 389 Lange, Donald, 126 Langham, M., 380, 392 Langley, Ann, 72 Langvardt, Arlen W., 126 Larkin, Ian, 366 Lavelle, Louis, 293 Leap, Terry, 389 Leavy, Brian, 57 Lechner, Christoph, 287, 366 Lehmann, Donald, 329 Lemper, Timothy A., 221 Lenz, Robert, 51, 73, 292, 368 Leung, Sophie, 107 Lindenberg, Siegwart, 221 Lindgreen, Adam, 126 Linneman, Robert, 385 Lissak, Michael, 182 Locke, Edwin, 197, 223 Lombardi, Vince, 124, 332 Loock, Moritz, 126 Lord, Robert G., 126 Lorsch, Jay W., 326 Lorsch, John, 193, 223 Love, Claire, 57 Lublin, JoAnn, 128, 293, 368 Luhnow, David, 107 Lumpkin, G., 292 Luque, Mary Sully, 104 Lustenberger, Lou, 175 Lux, Sean, 389 Lyles, Marjorie, 368 Lynton, Nandani, 104 M MacMillan, Ian C., 293 Magnini, Vincent P., 104 Makhija, Mona V., 221 Makower, Joel, 121 Maon, François, 126 Margerum, Barry, 43 Margulies, Robert, 293 Mark, Reuben, 174 Martin, Roger L., 389 Mason, Rowe, 262–264, 292 Matthews, Christopher, 128 Mattioli, Dana, 357 Matzler, Kurt, 57, 389 Mauboussin, Michael J., 389 Maxwell, Hamish, 144 Mayer, David M., 126 McAfee, Bruce, 182 McCarthy, E Jerome, 300 McClendon, Aubrey, 283 McConkey, Dale, 49, 243, 253, 368, 392 McGee, Patrick, 329 McGinnis, Michael, 392 McGinnis, Vern, 177, 185 McGroarty, Patrick, 106 McKenny, Aaron F., 57 McNamara, Gerry, 163 Merkel, Angela, 87 Merrick, Amy, 329 Michael, David, 104 Michel, George, 362 Miles, Raymond E., 163 Miller, C C., 72 Mintzberg, Henry, 392 Morgan, Spencer, 128 Mossholder, Kevin W., 221 Moynihan, Brian, 147 Mubarak, Hosin, 92 Mukherjee, Arpan, 107 Murdoch, Rupert, 345 Murray, Matt, 293 18/08/14 5:56 PM Find more at http://www.downloadslide.com Name Index 675 Murthy, Phaneesh, 116 Muyot, Micahel, 126 N Nader, Ralph, 117, 118 Nambisan, Satish, 57 Nandkumar, Anand, 221 Nardelli, Robert, 350 Neir, Ann, 43 Nelson, Ron, 72 Neufeldt, Victoria, 73 Newman, William, 339, 368 Newsom, Mikyong, 182 Ngo, Nhat, 43 Nieto, Enrique, 101 Nooyi, Indra, 142, 352 Norton, David, 381 Novak, David, 97 O O’Donnell, Jayne, 72 Obama, Barack, 38, 115, 232 Obodaru, Otilia, 182 Ocasio, William, 287 Ogden, John, 129 Olsen, Eric, 182 Ormiston, Margaret E., 126 P Pacheco-de-Almeida, Gonçalo, 250 Pagnattaro, Marisa Anne, 104 Palazzolo, Joe, 128 Palmisano, Samuel, 323 Pan, Roland, 43 Parise, Salvatore, 298, 329 Parker, Bill, 87 Parnell, John, 392 Parreira, Carlos, 53 Pascale, R., 368 Patel, Pankaj C., 287 Patrick, Wendy, 112 Peaple, Andrew, 223 Pearce, John II, 72, 185 Peddie, Chad I., 366 Peel, Michael, 73 Peltola, Soili, 389 Peng, Ann C., 126 Peterson, Thomas, 352 Petraeus, David, 115 Petraeus, Holly, 115 Piech, Ferdinand, 355 Pierce, Lamar, 366 Pinto, Miguel Cardoso, 326 Pitt, Leyland F., 104 Plangger, Kirk, 104 Porter, Michael E., 104, 143, 149, 150, 229, 250, 253, 362 Prahalad, C K., 167 Prats, Julia, 366 Prentice, Pamela Kirk, 287 Prescott, John, 253 Puranam, Phanish, 366 Q Quigley, Joseph, 326 Quinn, James, 293 Z02_DAVI6894_15_GE_NIDX.indd 675 R Rader, David, 221 Radnofsky, Louise, 128 Raice, Shayndi, 329 Ramamurti, Ravi, 104 Ramchander, Sanjay, 126 Rapoport, Michael, 329, 392 Rarick, Charles, 174, 185 Ratnaker, Raj, 43 Raudsepp, Eugene, 72 Raveendran, Marlo, 366 Read, Ian, 348 Ready, Douglas, 182 Reddy, Sudeep, 368 Reenen, John van, 104 Reeves, Martin, 57 Reimann, Bernard, 72 Richardson, Hettie A., 221 Richardson, Karen, 368 Richter, Brian K., 126 Rivkin, Jan W., 104, 389 Robertson, Diana, 113 Robinson, Richard, 72 Rodgers, Matthew S., 366 Rometty, Firginia, 360 Romney, Mitt, 232 Ronda-Pupo, Guillermo Armando, 57 Roos, Johan, 182 Rosen, Andrew, 160 Rosen, Corey, 358 Rosenfeld, Irene, 352 Ross, David Gaddis, 366 Rousebl, Philip, 223 Rouseff, Dilma, 361 Rowe, H., 262–264, 292 Rubin, Joel D., 126 Rukstad, Michael, 182 Rumelt, Richard, 373–374 S Saad, Kamal, 223 Saadawi, Nawal Al, 87 Sadun, Raffaella, 104 Salazar, Ken, 123 Salomon, Robert M., 126 Salter, Malcolm, 274 Saporito, Bill, 253 Sawka, Kenneth, 253 Scarpello, Vida, 212 Schaubroeck, John M., 126 Schein, Edgar H., 223, 341, 355, 368 Schendel, Dan E., 387, 392 Schifrin, Matthew, 167 Schoemaker, Paul, 182 Schrader, K., 72 Schroeder, R., 210 Schultz, Peter, 180 Schwebach, Robert G., 126 Schwenk, G L., 72 Scolari, Luis, 53 Scott, Jennifer, 43 Settoon, Randall P., 221 Shapiro, Daniel, 104 Sharma, Amol, 107 Shih, Eric, 366 Shimelonis, Mark, 140 Short, Jeremy C., 57 Shrivastava, P., 293 Siegel, Lee, 253 Siggelkow, Nicolaj, 389 Sigurdardottir, Johanna, 87 Simons, Robert, 392 Singh, Manmohan, 100 Sloan, Alfred Jr., 40, 72 Slyke, Eric J., 287 Smith, Adam, 223 Smith, Daniel, 253 Smith, Julia, 73 Smith, M., 135, 167 Snow, Charles C., 163 So, Clarence, 43 Song, Xiao-Bing, 366 Sonnerfeld, Jeff, 283 Sosna, Marc, 366 Srivastava, Mehul, 106 Staking, KIM, 126 Staley, Ed, 175 Stalin, Joseph, 373, 374 Starik, Mark, 119 Steffen, Ilona, 366 Steiner, George, 176, 185 Steinhauser, Gabriele, 79 Sterba, Jim, 129 Stieger, Daniel, 57, 389 Stobaugh, Robert, 368 Stone, B., 223 Strickland, A, J III, 167, 253, 293 T Talley, Karen, 392 Talley, Teralean, 232 Taylor, Todd, 145 Telesio, Piero, 368 Tetlock, Philip E., 126 Thai, Kim, 329 Thelen, Shawn T., 104 Thomas, Robert J., 104 Thompson, Arthur Jr., 167, 253, 293 Thompson, Scott, 112 Thorning-Schmidt, Helle, 87 Thurm, Scott, 329 Tichy, Noel M., 57 Tillmanns, Philipp, 57 Timberlake, Cotton, 107 Toffler, Alvin, 380 Treviño, Linda K., 126 Trice, H M., 193 Trimble, Chris, 104 Tsai, Wenpin, 250 Turner, Karynne L., 221 Tushman, Michael, 366 Tzu, Sun, 53, 54, 197, 387 U Ullman, Mike, 200 Underhill, Paco, 42 Underwood, Robert L., 104 V Valerio, Anna Marie, 366 Vallaster, Christine, 126 Van Horne, J., 202 18/08/14 5:56 PM Find more at http://www.downloadslide.com 676 Name Index Varadarajan P., 253 Vazquez, Raul, 233 Velamuri, S Ramakrishna, 366 Vitton, John, 174, 185 Vranica, Suzanne, 329 W Waldman, David A., 104 Walls, Judith L., 287 Wang, Danni, 104 Wang, Taiyuan, 126 Washburn, Nathan T., 126 Water, J., 392 Z02_DAVI6894_15_GE_NIDX.indd 676 Waterman, Robert Jr., 41, 72, 223, 384 Watkins, Michael D., 221 Weicher, Mathias, 287 Weihrich, Heinz, 292 Weinberg, Bruce, 298, 329 Welch, Jack, 159, 350 Wells, Theodore, 114 West, Michael A., 366 Whitman, Meg, 352 Widmer-Schlumpf, Eveline, 87 Williams, Charles, 366 Wolfowitz, Paul, 117 Wonacott, Peter, 107 Wulf, Julie, 366 Y Yavitz, Boris, 339, 368 Yeung, Sally, 174 Young, Eric, 114 Yu, Roger, 253 Yun, Michelle, 107 Z Zachary, Miles A., 57 Zahra, Shaker A., 57 Zand, Dale, 392 Zemsky, Peter B., 250 Zook, Chris, 57 18/08/14 5:56 PM Find more at http://www.downloadslide.com Subject Index A Accounting (See Finance/Accounting), 304–319 Actionable (factors), 216, 227, 244 Acquiring capital, 305–310 Acquisitions, 155–157 Friendly merger, 155 Hostile takeover, 155 Activity ratios, 205 Adapting (to Change), 41, 353–354 Adidas Group (Cohesion Case), 58–69 Competitors, 65–66 Internal issues, 60–62 Product areas, 62–65 Segments, 59–60 Advantage (in strategy evaluation), 373–374 Advertising, 199, 299 Quadrant (in SPACE), 262–268 Africa, 93, 95–97, 105 Allocate resources, 40, 339 Alternative strategies, 40, 45–46, 335–337 Annual objectives, 40, 45–46 Art of War, 53–54, 56 Art (versus science), 386 Assumptions, making them, 243–244 Assurance of Learning Exercises Chapter 1, 70–73 Chapter 2, 105–106 Chapter 3, 127–129 Chapter 4, 164–167 Chapter 5, 183–185 Chapter 6, 221–223 Chapter 7, 250–253 Chapter 8, 287–292 Chapter 9, 326–328 Chapter 10, 366–368 Chapter 11, 390–391 Attractiveness Scores (AS in a QSPM), 275–280 Auditing, 385–386 Avoidance, 339 B Backward integration, 139–140 Balanced scorecard, 381–382 Balancing work life and home life, 359–360 Bankruptcy, 146–147 Bargaining power of consumers, 239, 242 Bargaining power of suppliers, 239, 241 BCG Matrix, 267–271 Beliefs, 192–193 Benchmarking, 214, 216, 350–351 Benefits (of strategic management), 48–50 Financial benefits, 49–50 Non–financial benefits, 50 Of a diverse workforce, 361 Board of directors, 281–284 Body language, 398 Bonus system, 351–353 Z03_DAVI6894_15_GE_SIDX.indd 677 Book value, 318 Boston Consulting Group (BCG) Matrix, 267–271 Boxed Inserts – Excellent Strategic Management Showcased Chapter – 38 Chapter – 76 Chapter – 110 Chapter – 132 Chapter – 170 Chapter – 188 Chapter – 226 Chapter – 256 Chapter – 296 Chapter 10 – 332 Chapter 11 – 372 Brazil, 90 Brand positioning, 302–304 Breakeven analysis, 207–209, 222 Bribes, 114–115 Bribery Act & Law, 115 Business analytics, 322–323 Business Climate Across Countries/ Continents, 94–102 African countries, 95–97 China, 97–98 Germany, 100–101 India, 99–100 Mexico, 101–102 Philippines, 99 Taiwan, 99 Union membership across Europe, 94–95 Business Culture Across Countries, 87–94 Brazil, 90 China, 92 Egypt, 91 Germany, 90 India, 92 Japan, 89 Mexico, 88 Nigeria, 93 Business failure, 50 Business portfolio, 267–271 Business-process outsourcing (BPO), 158 Business vision and mission analysis, (Chapter 5), 44, 169–185 Business strategy (vs Military strategy), 52–53 Business worth, 315–319 C Capacity (production/operations function), 209–210 Capacity utilization, 209 Capital budgeting, 202–203 Case analysis, (Appendix 1), 392–403 Guidelines, 394–403 Oral presentation, 395, 397–400 Sample case analysis outline, 397, 400–403 Tips for success, 399–400 Case analysis outline, 400–403 Case method, 394–396 Cash budget, 313–315 Cash cows, 267–271 Ceremonies, 192–193 Champions, 281 Chandler’s strategy/structure relationship, 340 Change (adapting & managing), 41, 353–354, 380 Checklist of questions Finance/accounting audit checklist of questions, 209 Management audit checklist of questions, 198 Marketing audit checklist of questions, 202 MIS audit checklist of questions, 213 Production/operations audit checklist of questions, 211 R&D audit checklist of questions, 213 Chief Executive Officer (CEO), 43, 340–349 Chief Finance Officer (CFO), 347–349 Chief Information Officer (CIO), 236 Chief Intelligence Officer (CIO), 236 Chief Legal Officer (CLO), 347–49 Chief Marketing Officer (CMO), 199, 347 Chief Operations Officer (COO), 347–349 Chief Technology Officer (CTO), 236, 348 Chief Strategy Officer (CSO), 39, 43, 347 China, 92, 97–98 Code of business ethics, 112 Cohesion case (on adidas Group), 58–69 Competitors, 65–66 Internal issues, 60–62 Product areas, 62–65 Segments, 59–60 College football programs ($ worth), 319 Combination strategy, 135 Common stock financing, 305–310 Communication, 48, 87, 190, 197 Compensation, 351–353 Competitive advantage, 42–43, 78, 190, 216 Competitive Advantage of Nations, 149 Competitive Strategy, 149 Competitive analysis, 237–242 Competitive forces, 237–239 Competitive intelligence (CI) programs, 238–239 Corporate spies, 238 Definition, 238 Unethical tactics, 239 Competitive Profile Matrix, 245–248 Competitive Position (CP), in SPACE, 262–266 Components of a mission statement, 177–179 Examples, 178 Comprehensive written case analysis, 396–397 Conflict resolution, 339 Avoidance, 339 Confrontation, 339 Defusion, 339 677 27/08/14 5:57 PM Find more at http://www.downloadslide.com 678 Subject Index Confrontation, 339 Conservative Quadrant in SPACE, 262–266 Consistency, 373–374 Consonance, 373–374 Content tips, 399 Contingency planning, 384–385 Controlling, 198 Cooperative agreements (among competitors), 154–155 Cooperative arrangements, 154–155 Cooperation among competitors, 153–156 Coral reefs, 124 Core competence, 214, 216 Corporate ethics, 110–117 Corporate valuation, 315–319 Corporate wellness programs, 361–363 Corrective Actions, 40, 376–381 Cost/benefit analysis, 202 Cost leadership strategies, 149–151 Crafting strategies, (See Art (versus science)), 386 Creed statement, 171, 355 Critical success factors, 245 Cross-distribution/licensing agreements, 154–155 Culture, 84–94 Brazil – Business Culture, 90 China – Business Culture, 92 Cultural pitfalls, 85 Cultural products, 192–193 Definition, 192 Egypt – Business Culture, 91 Germany – Business Culture, 90 India – Business Culture, 92 Japanese Business Culture, 89 Mexican Business Culture, 88 Nigeria Business Culture, 93 U.S vs foreign business cultures, 84–94 Cultural forces, 192–193, 354–355 Cultural variables, 192–193, 354–355 Cultural pitfalls, 85 Cultural products, 192–193, 351–355 Customers, 178 Customer analysis, 199 D Data mining, 322 Data vs information, 213 Debt financing, 305–310 Decentralized structure, 342–345 Decision stage, 258, 275–280 Defensive quadrant (in SPACE), 262–266 Defensive strategies, 146–148 Divestiture, 147 Liquidation, 148 Retrenchment, 146–147 Defusion, 339 De-integration, 139 Delayering, 350 Demand void, 303 Demographic forces/variables, 231–233 Differentiation strategies, 149–152 Dilution of ownership, 306 Directional vector, 262–266 Director, 281–284 Director of competitive analysis, 238 Discount, 318 Z03_DAVI6894_15_GE_SIDX.indd 678 Distinctive competencies, 189, 216 Distribution, 201 Diversification strategies, 143–146 Related, 144 Unrelated, 145 Diversity, 361 Divestiture, 147 Dividend decisions, 203–204, 310 Dividend recapitalizations, 157 Divisional structure, 340–349 Dodd-Frank Act, 115, 351 Dogs, 267–271 Downsizing, 350–351 E e-commerce, 43 Economic forces, 229–231 Economy, 229–231 Educational institutions, 159–160 Educative change strategy, 353–354 EEOC, 116 Empirical indicators, 192 Empowerment, 49 Environment, 119, 231–233 Environmental forces, 231–233 Environmental scanning, 44, 226 Environmental Sustainability (Chapter 3), 119–124 Environmental affairs, 121–122 ISO 14000/14001 Certification, 122 Lack of standards changing, 120–121 Proactive/Reactive, 120–122 Reasons to be green, 121 Environmental training, 122 EMS (environmental management systems), 122 Employee stock ownership plans (ESOPs), 358–359 EPS-EBIT analysis, 305–310 Equity financing, 305–310 ESOPs, 358–359 Ethics, 110–117 Ethics culture, 113 Ethics/Social Responsibility/ Sustainability, (Chap 3), 109–129 Bribes, 114–115 Business ethics, 110–117 Code of Business Ethics, 112 Definition, 110–111 Ethics culture, 110–117 Flirting, 116–117 ISO14000/14001 certification, 122 Managing environmental affairs, 121–122 Social responsibility, 117–120 Solar power, 123 Songbirds and coral reefs, 124 Sustainability, 119–124 Whistle-blowing, 113–114 Wildlife, 122–123 Workplace romance, 115–117 Evaluating mission statements, 179–180 Evaluating the worth of a business, 315–319 Excellent Strategic Management Showcased Chapter – 38 Chapter – 76 Chapter – 110 Chapter – 132 Chapter – 170 Chapter – 188 Chapter – 226 Chapter – 256 Chapter – 296 Chapter 10 – 332 Chapter 11 – 372 Executive summary, 396 Executive titles, 340–349 External, 44 External Audit (Chapter 7), 225–253 Competitive forces, 237–239 Competitive intelligence (CI) programs, 238–239 Competitive Profile Matrix, 245–248 Cooperation among competitors, 154–155 Economic forces, 229–231 Executive pay, 351–353 External Factor Evaluation (EFE) Matrix, 244–247 Five-Forces Model, 239–242 Forecasting tools and techniques, 243–244 Industrial/Organization (I/O) view, 229 Industry Analysis: The EFE Matrix, 244–247 Labor unions, 234–235 Making assumptions, 243–244 Nature of an external assessment, 226 Political, governmental and legal forces, 232–234 Porter’s Five-Forces Model, 239–242 Process of performing, 228–229 Social, cultural, demographic and environmental forces, 231–233 Technological forces, 236–237 Sources of external information, 242–243 External Factor Evaluation (EFE) Matrix, 244–247 External forces, 227–228 Variables, 227 External opportunities and threats, 44, 226–228 F Facebook, 42 Failure (business), 146, 148 Fast follower, 157 Feasibility (in strategy evaluation), 373–374 Feng shui, 86 Finance/Accounting, 202–209, 304–374 Audit checklist, 209 Financial Accounting Standards Board (FASB), 385 Functions of finance, 202–211 Financial ratios, 191, 204–207 Financial budgets, 313–315, 317 Financial objectives, 133 Financial Position (FP) in SPACE, 262–266 Financial ratio analysis, 191, 204–207 Financing decision, 202–203 First mover advantages, 157–158 Five-Forces Model, 239–242 Bargaining power of consumers, 239, 368 Bargaining power of suppliers, 239, 241 27/08/14 5:57 PM Find more at http://www.downloadslide.com Subject Index 679 Potential development of substitute products, 239, 241 Potential entry of new competitors, 239–240 Rivalry among competing firms, 239–240 Fixed costs, 207–209 Flirting, 116–117 Focus strategies, 150, 152 Folktale, 192–193 Football programs ($ worth), 319 Force change strategy, 353–354 Forecasting tools and techniques, 243–244 Foreign Corrupt Practices Act (FCPA), 80, 114 Forward integration, 137–139 Franchising, 138 Functional structure, 340–349 Functions of finance, 202–211, 304–319 Dividend decision, 202–203 Financing decision, 202–203 Investment decision, 202–203 Functions of management, 194–198 Controlling, 198 Motivating, 197 Organizing, 196 Planning, 194–196 Staffing, 197–198, 356–363 Functions of marketing, 198–202 Cost/Benefit Analysis, 202 Customer analysis, 199 Distribution, 201 Pricing, 200 Product and service planning, 200 Marketing research, 201–202 Marketing audit checklist of questions, 202 Selling products/services, 199 Furloughs, 356 Future shock, 380 G GAAP, 385 GAAS, 385 Gain sharing, 352 Generic Strategies, 149–152 Cost leadership, 149–150 Differentiation, 150–151 Focus, 152 Germany, 90, 100–101 Glass ceiling, 360 Global challenge, 81–82 Global competition, 78–81 Advantages and disadvantages, 80–81 Global strategy, 82 Globalization, 82 Goals (See objectives), 45, 132–142, 335–337 Goodwill, 316 Governance, 281–284 Governmental forces, 232–234 Variables, 232–234 Governmental organizations (strategic planning), 160–161 Grand Strategy Matrix, 273–274 Z03_DAVI6894_15_GE_SIDX.indd 679 Growth ratios, 205 Guanxi, 84 Guidelines for case analysis, 394–395 Guidelines for effective strategic management, 51–52 H Halo error, 258 Heroes/heroines, 192–193, 355 High-velocity (change) markets, 153 Horizontal consistency of objectives, 335 Horizontal integration, 140–141 Hostile takeover, 155 Human resource concerns when implementing strategies, 356–363 Human resource management, 197, 356–363 I IE Portfolio Matrix, 270–273 IFRS, 385 India, 92, 99–100 Industrial Organization (I/O) View, 229 Industry Analysis: External Factor Evaluation (EFE) Matrix, 244–247 Industry Growth Rate (BCG axis), 267–271 Industry Position (IP), in SPACE, 262–266 Information technology, 236 Initial Public Offering (IPO), 319 Input stage, 258–259 Institute of Business Ethics, 110 Integration strategies, 137–141 Backward integration, 139–140 Forward integration, 137–139 Horizontal integration, 140–141 Vertical integration, 137 Internal-External (IE) Matrix, 270–273 Intensive strategies, 141–143 Market development, 142 Market penetration, 141 Product development, 142–143 Internal Audit (Chapter 6), 187–223 Benchmarking, 214, 216 Breakeven analysis, 207–209, 221 Cost/Benefit analysis, 202 Cultural pitfalls, 85 Cultural products, 192–193 Finance/accounting functions, 202–211 Financial ratio analysis, 191, 204–207 IFEM, 216–218 Initial Public Offering (IPO), 319 Integrating strategy and culture, 192–194 Internal factor evaluation matrix, 216–218 Internal forces, 189–190 Management, 194–198 Management Information Systems, 213 Marketing, 198–202 Nature of an internal audit, 188–191 Process of performing an internal audit, 190–191 Production/operations, 209–211 Research and development, 211–213 Research and development audit, 211–213 Resource-Based View (RBV), 191–192 Value chain analysis (VCA), 213–215 Internal factor evaluation matrix, 216–218 Internal forces, 189–190 Internal strengths and weaknesses, 44–45, 187–197 International financial reporting standards (IFRS), 385 International firms, 79–84 International operations, 75–107 Advantages and disadvantages, 80–81 Internet,42, 236, 298–299, 302 Intuition (vs analysis), 40–41 Inhwa, 84 Inventory (production/operations function), 210 Investment decision, 202–203 ISO 14000 and 14001 Certifications, 122 J Japanese culture, 84, 89 Joint venture/partnering, 154–155 Joint venture in India, 99–100 Just-in-time (JIT), 356 L Labor unions, 234–235 Language, 192–193 Late mover, 157 Leadership, 197 Learning from the partner, 154 Legal forces/variables, 232–235 Legend, 192–193, 355 Leverage ratios, 205 Leveraged buyout, 157 Linear regression, 243 Liquidation, 148 Liquidity ratios, 205 Linking pay-performance, 351–353 Bonus system, 351–352 Gain sharing, 352 Profit sharing, 352 Lobbying, 44 Long-range, planning, 39 Long-term objectives, 45, 132–134 M Mach Test, 291–292 Making assumptions, 243–244 Management, 194–196, 334–369 Controlling, 198 Functions of management, 194–198 Management audit checklist of questions, 198 Motivating, 197 Organizing, 196 Planning, 194 Staffing, 197 Management audit checklist of questions, 198 Management by wandering around, 375 Management Information Systems (MIS), 213, 322–323 27/08/14 5:57 PM Find more at http://www.downloadslide.com 680 Subject Index Managing by Crisis, 134 Managing by Extrapolation, 134 Managing by Hope, 134 Managing by Objectives, 132–134 Managing by Subjectives, 134 Managing conflict, 339 Managing resistance to change, 353–354 Managing the natural environment, (See Natural Environment), 110, 119–124 Market capitalization, 318 Market commonality and resource similarity, 239 Market development, 142 Market penetration, 141 Market segment, 303 Market segmentation, 299–302 Market value, 318 Marketing, 198–202, 297–304 Advertising media, 199, 299 Cost/benefit analysis, 202 Distribution, 201 Functions of marketing, 198–202 Implementation issues, 297–304 Market segmentation, 299–302 Marketing audit checklist of questions, 202 Marketing research, 201–202 New principles of marketing, 298–299 Perceptual mapping, 302–304 Pricing, 200 Product and service planning, 200 Product positioning, 302–304 Selling products/services, 199 Marketing audit checklist of questions, 202 Marketing mix, 300 Place, 300 Price, 300 Product, 300 Promotion, 300 Marketing research, 201–202 Markets, 177 Matching stage, 258–259 Matching structure and strategy, 340–349 Matrix structure, 346–347 Measuring organizational performance, 378–379 Medical organizations, 160 Merger/acquisition, 155–157 Benefits of, 156 Friendly merger, 155 Hostile takeover, 155 Why many fail, 156 Merit pay, 351–353 Metaphors, 192–193 Mexican culture, 88 Mexico, 101–102 Military strategy (vs business strategy), 52–53 MIS issues, 322–323 Mission, 44, 169–185 Mission versus vision, 171, 174 Writing and evaluating, 179–180 Motivating, 197 Multidimensional scaling, 302 Multinational corporations, 79–84 MySpace, 42 Myths, 192–193, 355 Z03_DAVI6894_15_GE_SIDX.indd 680 N Natural environment, 110, 119–124 Nemaswashio, 86 Nonprofit and governmental organizations, 160–161 Notable Quotes (See www.strategyclub.com website) O Objectives, 45, 132–134, 335–337 Annual, 45–46, 335–337 Benefits of, 45, 134 Characteristics of, 45, 133 Financial versus strategic objectives, 133–134 Long-term, 45, 132–133 Not managing by objectives, 134 Purpose and characteristics, 45–46, 132–133 Office of Civil Rights (OCR), 117 Operations (See Production/Operations Function), 209–211, 355–356 Opportunities, 44, 226–228 Oral case analysis, 395, 397–400 Oral presentation, 395, 397–400 Organizational change, 41, 353–354, 380 Organizational charts, 340–349 Do’s and Don’ts, 348–349 Organizational culture, 192–193 Cultural products, 192–193 Definition, 192 Egypt culture, 91 Germany culture, 90 India culture, 92 Japanese culture, 89 Mexican culture, 88 Nigeria culture, 93 U.S vs foreign, 84–94 Ways and means for altering, 193–194 Organizational structure, 340–349 Advantages/disadvantages of functional, 341–342 Advantages/disadvantages of divisional, 342–343 Advantages/disadvantages of matrix, 346–347 Do’s and Don’ts, 348–349 Symptoms of ineffectiveness, 341 Organizing, 196 Outside-USA Strategic Planning (Chapter 2), 75–107 Outsourcing, 158 Outstanding shares method to value a firm, 317 P Partnering and partnerships, 154–155 Pay-Performance issues, 351–353 Perceptual mapping, 302–304 Personal ethics, 110–117 Personal selling, 300 Personnel management, 197 Philippines, 99 Pitfalls in strategic planning, 50–51 Planning, 39, 194–196 Policies, 46–47, 337–338 Political, governmental and legal forces/ variables, 232–234 Politics of strategy choice, 280–281 Porter’s Five-Forces Model, 239–242 Bargaining power of consumers, 239, 368 Bargaining power of suppliers, 239, 241 Potential development of substitute products, 239, 241 Potential entry of new competitors, 239–240 Rivalry among competing firms, 239–240 Porter’s five generic strategies Cost leadership (Type and 2), 149–150 Differentiation, 150–151 Focus (Type and 5), 152 Portfolio of businesses, 267–273 Potential development of substitute products, 239, 241 Potential entry of new competitors, 239–240 Premium, 318 Prepare and present a case analysis, 395–403 Preparing a case for class discussion, 392–403 Preparing a written case analysis, 392–403 Price, 200, 300 Price earnings ratio method to value businesses, 315–319 Pricing, 200–201 Private-equity acquisitions, 157 Process (production/operations function), 209–211, 350 Process tips, 400 Product, 177, 300 Product and service planning, 200 Product development, 142–143 Product positioning, 302–304 Product positioning maps, 302–304 Production/Operations, 209–211, 355–356 Audit checklist of questions, 211 Production/Operations functions, 209 Production/Operations concerns when implementing strategies, 210 Profitability ratios, 205 Profit sharing, 352 Pro forma (projected) financial statement analysis, 310–316 Promotion, 300 Protectionism, 81 Publicity, 300 Q OSPM, 275–280 Quality (production/operations function), 210 Quantitative Strategic Planning Matrix (OSPM), 275–280 Question marks, 267–271 R Ratings, 216, 244, 280 Ratio analysis, 204–207 Rational change strategy, 353–354 Reengineering, 350–351 Relative market share position, 267–271 Reconciliatory, 176 Relative deficiency or superiority, 45 27/08/14 5:57 PM Find more at http://www.downloadslide.com Subject Index 681 Research and development, 211–213, 320–321 Research and development audit, 213 Internal and external, 212 Research and development issues, 211–213 Reshoring, 158 Resistance to change, 353–354, 380 Resource allocation, 40, 339 Resource-Based View (RBV), 191–192 Empirical indicators, 192 Resource similarity, 239 Restructuring, 350–351 Retrenchment, 146–147 Retreats, 48 Revised EFE (and IFE) Matrix, 376–381 Rightsizing, 350–351 Rites, 192–193 Rituals, 192–193 Rivalry Among Competing Firms, 239–240 Robinson-Patman Act, 201 Romance, 115–117 Rumelt’s Criteria for Evaluating Strategies, 373–374 S Saga, 192–193 Sales promotion, 300 Sample case analysis outline, 400–403 Sarbanes-Oxley Act, 283 Secondary buyouts, 157 Segmentation, 299–302 Self-concept (in mission statements), 177 Self-interest change strategy, 353–354, 380 Selling products/services, 199–200 Six Sigma, 350 Small businesses, 161 SO Strategies, 259–262 Social, cultural, demographic and environmental forces, 231–359 Variables, 359 Social policy, 118–119 Japan versus the world, 118 Social policies on retirement, 118 Social responsibility (Chapter 3), 110, 117–119 Society of Competitive Intelligence Professionals (SCIP), 238 Software, (See Strategy Club or www.strategyclub.com) Solar power, 123 Songbirds and coral reefs in trouble, 124 Sources of external information, 368–369 SPACE Matrix, 262–266 Special Note to Students Chapter 1, 53 Chapter 2, 102 Chapter 3, 124 Chapter 4, 161 Chapter 5, 180 Chapter 6, 218–219 Chapter 7, 247–248 Chapter 8, 284 Chapter 9, 323 Chapter 10, 363 Chapter 11, 387–388 ST Strategies, 259–262 Z03_DAVI6894_15_GE_SIDX.indd 681 Stability Position (SP), in SPACE, 262–266 Staffing, 197 Standard & Poor’s Industry Surveys, 368 Standards, 120–121 Stakeholders, 176 Stars, 267–271 Statement of beliefs, 171 Statement of philosophy, 171 Statement of purpose, 171 Stock financing, 305–310 Story, 192–193 Strategic Business Unit (SBU) structure, 340, 345–346 Strategic objectives, 133 Strategic management, 39, 393–403 Art vs Science Issue, 386 Benefits, 48–50 Case analysis, 395–403 Challenges, 386–387 Definition, 39 Guidelines for effective strategic management, 51–52 In nonprofit and governmental organizations, 159–161 In small firms, 161 Levels of your own health, 361–363 Model, 47–48, 77, 111, 135, 172, 227, 257, 297, 333, 373 Process, 39, 47–48 Secret vs open discussion, 386 Stages, 39–40 Terms, 42–48 Visible vs hidden issue, 386 Strategic objectives, 133 Strategic planning, 39, 393–403 Art vs Science Issue, 386 Challenges, 386–387 Pitfalls, 50–51 Process of generating and selecting strategies, 256–293 Quotes, (See Notable Quotes) Software, (See Strategy Club at www.strategyclub.com) Why some firms no strategic planning, 50 Strategic planning, outside USA (Chapter 2), 75–107 Advantages and disadvantages, 80–81 Business Climate Across Countries/ Continents, 94–102 African Countries, 95–97 China, 97–101 Germany, 100–101 India, 99–100 Mexico, 101–102 Philippines, 99 Taiwan, 99 Business Culture Across Countries/ Continents, 84–94 Brazil – Business Culture, 90 China – Business Culture, 92 Egypt – Business Culture, 91 Germany – Business Culture, 90 India – Business Culture, 92 Japanese Culture, 89 Mexican Culture, 88 Nigeria – Business Culture, 93 Communication differences across countries, 84–94 Corporate Tax Rates Globally, 82–84 Cultural pitfalls, 85 Global challenge, 81–82 Multinational organizations, 79–80 USA vs foreign business cultures, 84–94 Strategic Position and Action Evaluation (SPACE) Matrix, 262–266 Strategies, types of (Chapter 4), 130–167 Backward integration, 139–140 Bankruptcy, 146–147 Combination, 135 Diversification, 143–146 Divestiture, 147 Forward integration, 137–139 Franchising, 138 Generic, 149–152 Geographic expansion, 142 Horizontal integration, 140–141 Levels of, 136–137 Liquidation, 148 Market development, 142 Market penetration, 141 Means for achieving, 153–159 Product development, 142–143 Related diversification, 144 Retrenchment, 146–147 Types of, 134–148 Unrelated diversification, 145 Vertical integration, 137 Strategos, 52 Strategists, 43 Strategy generation and selection, 255–293 Strategy-structure relationship, 340 Strategy-supportive culture, 280, 354–355 Strategy and culture, 280, 354–355 Cultural products, 192–193 Strategy analysis and choice, (Chapter 8), 254–293 Analytical framework, 258 BCG Matrix, 267–271 Cultural aspects, 280 Decision stage, 275 Governance issues, 281–284 GRAND Matrix, 273–274 IE Matrix, 270–273 Input stage, 258–259 Matching stage, 258–259 Nature of analysis and choice, 256–258 Politics of, 280–281 QSPM, 275–280 SWOT Matrix, 262–266 Strategy Club, 56 Strategy execution (Chapter 10), 331–369 Allocating resources, 339 Annual objectives, 335–337 Balancing work life and home life, 359–360 Benefits of a diverse workforce, 361 Chandler’s strategy/structure relationship, 340 Corporate wellness programs, 361–363 Creating a strategy-supportive culture, 354–355 Do’s and dont’s in developing organization charts, 348–349 27/08/14 5:57 PM Find more at http://www.downloadslide.com 682 Subject Index Strategy execution (Continued) Divisional structure, 340–349 Employee stock ownership plans (ESOPs), 358–360 Functional structure, 340–349 Human resource concerns when implementing strategies, 356–363 Linking performance and pay to strategies, 351–353 Managing conflict, 339 Managing structure, 340–349 Managing resistance to change, 353–354 Matching structure with strategy, 340–349 Matrix structure, 346–347 Policies, 337–338 Production/Operations concerns, 355–356 Resource allocation, 339 Restructuring and reengineering, 350–351 Strategic business unit (SBU) structure, 340, 345–346 Strategy Implementation (Chapter 9), 295–329 Versus strategy formulation, 333 Strategy formulation, 39, 47, 256–293 Analytical framework, 258 Cultural aspects, 280 Decision stage, 275 Framework, 258 Governance issues, 281–284 Input stage, 259 Matching stage, 259 Politics of, 280–281 Versus strategy implementation, 333 Strategy implementation (Chapter 9), 40, 47, 295–329, 332–335 Acquiring capital, 305–310 Advertising media, 299 Business analytics, 322 Company evaluation, 315–319 Current marketing issues, 297–304 Deciding whether to go public, 319 EPS-EBIT analysis, 305–310 Finance/Accounting issues, 304–319 Financial budgets, 313–315, 317 Market segmentation, 299–302 Marketing issues, 297–304 MIS issues, 322–323 New principles of marketing, 298–299 Product positioning/Perceptual mapping, 302–304 Projected financial statement analysis, 310–315 Research and development issues, 320–321 Retention based segmentation, 300 Z03_DAVI6894_15_GE_SIDX.indd 682 Strategy Monitoring (Chapter 11), 40, 47, 370–391 Activities, 372, 376–381 Art vs Science Issue, 386 Auditing, 385–386 Balanced scorecard, 381–382 Challenges, 386–387 Characteristics of an effective evaluation system, 383–384 Contingency planning, 384–385 Framework, 376–381 Measuring organizational performance, 40, 381–385 Published sources, 382–383 Questions to address, 378 Reviewing bases of strategy, 40, 370–376 Review, evaluation, and control, (Chapter 11), 370–391 Taking corrective actions, 40, 376–381 Top-Down or Bottom-Up strategic planning, 387 Visible vs hidden issue, 386–387 Strategy profiles, 262–266 Strategy review, evaluation, and control (Chapter 11), 370–390 Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, 259–262 Strengths, 44–45, 187–223 Structure and strategy, 340, 348–349 Sum Total Attractiveness Scores (TAS) (in a QSPM), 275–280 Sustainability, 110, 119–124 Sustainability Report, 120 Sustained competitive advantage, (See Special Notes To Students), 42, 43, 190, 216 SWOT Matrix/Analysis, 259–262 Symbols, 192–193 Synergy, 196 T Take Corrective Actions, 376–381 Tax rates, 82–84 Technological forces, 236–237 Test marketing, 200 Threats, 44, 226–228 Taiwan, 99 Top-Down or Bottom-Up strategic planning, 387 Total Attractiveness Scores (TAS) (in a QSPM), 275–280 Total costs, 207–209 Treasury stock, 307 Tumbler, 42 Turbulent, high-velocity (change) markets, 153 Turnaround strategy, 146 Tweet, 298 U Union membership across Europe, 94–95 Unionized states, 234–235 Unrelated diversification, 145–146 Utility of mission statements, 177 V Vacant niche, 302 Value chain analysis (VCA), 213–215 Value of the dollar, 230–231 Values, 192–193 Variable costs, 207–209 Vertical consistency of objectives, 335 Vertical integration, 137 Visible vs hidden strategies, 386 Vision and Mission Analysis (Chapter 5), 44, 169–185 Characteristics of, 176–177 Components, 177–179 Definition, 171 Evaluating, 179–180 Examples, 178–179, 183 Importance (Benefits) of, 174–175 Process of developing, 173–174 Vision Statements, 44, 169–185 Definition, 44 Examples, 171, 173 Importance (Benefits) of, 174–175 W Wa, 84, 89 Weaknesses, 44–45, 187–223 Weights vs ratings, 216, 244 Wellness programs, 361–363 Whistle-blowing, 113–114 White knight, 156 Wikis, 298 Wildlife, 122–123 WO Strategies, 259–262 Women, 359–360 Workforce (production/operations function), 210 Workplace romance, 115–117 Worth of a business, 315–319 WT Strategies, 259–262 Y YouTube, 42 27/08/14 5:57 PM Find more at http://www.downloadslide.com Z03_DAVI6894_15_GE_SIDX.indd 683 27/08/14 5:57 PM Find more at http://www.downloadslide.com Z03_DAVI6894_15_GE_SIDX.indd 686 27/08/14 5:57 PM Find more at http://www.downloadslide.com Z03_DAVI6894_15_GE_SIDX.indd 687 27/08/14 5:57 PM Find more at http://www.downloadslide.com Z03_DAVI6894_15_GE_SIDX.indd 688 27/08/14 5:57 PM ... Division Sales Total $100 20 0 50 50 $400 Percent Sales 25 .0 50.0 12. 5 12. 5 100.0 Profits Percent Profits IFE Scores EFE Scores $10 $20 50 25 20 100 3.6 2. 1 3.1 1.8 3 .2 3.5 2. 1 2. 5 Figure 8-11 An Example... Profit $7,868 1 ,24 1 1,578 90 22 3 $11,000 71.5% 11.3% 14.3% 0.8% 2. 1% 100% $3,000 1,000 800 100 20 0 $5,100 59% 19% 16% 2% 4% 100% EFE Scores IFE Scores 2. 5 2. 5 — 3 2. 5 — Figure 8- 12 The IE Matrix... 0. 02 0. 02 0.04 0.04 0.08 0.08 0.08 0.04 0. 12 0.05 0.04 0.04 0. 02 1 - 0.05 0.04 0.04 - 4 - 0 .20 0.16 0.16 - 0. 02 - - - - 0.05 0.10 0 .20 0.03 0.04 0.04 0.03 0.09 0.04 0. 12 0.03 0.16 0.03 0.03 0.12