Concepts in strategic management and business policy globlization innovation and sustainability 15th global edition by wheelen

Concepts in strategic management and business policy globlization innovation and sustainability 15th global edition by wheelen Concepts in strategic management and business policy globlization innovation and sustainability 15th global edition by wheelen Concepts in strategic management and business policy globlization innovation and sustainability 15th global edition by wheelen Concepts in strategic management and business policy globlization innovation and sustainability 15th global edition by wheelen Concepts in strategic management and business policy globlization innovation and sustainability 15th global edition by wheelen

GLOBAL EDITION Concepts in Strategic Management and Business Policy Globalization, Innovation and Sustainability FIFTEENTH EDITION Thomas L Wheelen • J David Hunger Alan N Hoffman • Charles E Bamford FIFTEENTH EDITION GLOBAL EDITION Concepts in Strategic Management and Business Policy GLOBALIZATION, INNOVATION, AND SUSTAINABILITY A01_WHEE7290_15_GE_FM.indd 8/3/17 3:02 PM This page intentionally left blank Concepts in Strategic Management and Business Policy FIFTEENTH EDITION GLOBAL EDITION GLOBALIZATION, INNOVATION, AND SUSTAINABILITY Thomas L Wheelen J David Hunger Alan N Hoffman Charles E Bamford Formerly with University of Virginia, Trinity College, Dublin, Ireland Bentley University A01_WHEE7290_15_GE_FM.indd Formerly with Iowa State University, St John’s University University of Notre Dame 8/3/17 3:02 PM Vice President, Business Publishing: Donna Battista Director of Portfolio Management: Stephanie Wall Director, Courseware Portfolio Management: ­Ashley Dodge Senior Sponsoring Editor: Neeraj Bhalla Associate Acquisitions Editor, Global Edition: Ishita Sinha Associate Project Editor, Global Edition: Paromita Banerjee Editorial Assistant: Linda Siebert Albelli Vice President, Product Marketing: Roxanne McCarley Director of Strategic Marketing: Brad Parkins Strategic Marketing Manager: Deborah Strickland Product Marketer: Becky Brown Field Marketing Manager: Lenny Ann Kucenski Field Marketing Assistant: Kristen Compton Product Marketing Assistant: Jessica Quazza Vice President, Production and Digital Studio, Arts and Business: Etain O’Dea Director of Production, Business: Jeff Holcomb Senior Manufacturing Controller, Global Edition: Kay Holman Content Producer, Global Edition: Pooja Aggarwal Managing Producer, Business: Ashley Santora Operations Specialist: Carol Melville Creative Director: Blair Brown Manager, Learning Tools: Brian Surette Content Developer, Learning Tools: Lindsey Sloan Managing Producer, Digital Studio, Arts and Business: Diane Lombardo Digital Studio Producer: Darren Cormier Digital Studio Producer: Alana Coles Media Production Manager, Global Edition: ­Vikram Kumar Full-Service Project Management and Composition: SPi Global Interior Design: SPi Global Cover Art: kaband/Shutterstock Acknowledgments of third-party content appear on the appropriate page within the text Pearson Education Limited KAO Two KAO Park Harlow CM17 9NA United Kingdom and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsonglobaleditions.com © Pearson Education Limited 2018 The rights of Thomas L Wheelen, J David Hunger, Alan N Hoffman, and Charles E Bamford to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988 Authorized adaptation from the United States edition, entitled Strategic Management and Business Policy: Globalization, Innovation, and Sustainability, 15th Edition, ISBN 978-0-13-452215-9 by Thomas L Wheelen, J David Hunger, Alan N Hoffman, and Charles E Bamford, published by Pearson Education © 2018 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a license permitting restricted copying in the United Kingdom ­issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS All trademarks used herein are the property of their respective owners The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use of such trademarks imply any affiliation with or endorsement of this book by such owners ISBN 10:    1-292-22729-X ISBN 13: 978-1-292-22729-0 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library 10 Typeset in Times Ten Lt Std by SPi Global Printed and bound by Vivar in Malaysia A01_WHEE7290_15_GE_FM.indd 8/3/17 3:02 PM Dedicated to TOM WHEELEN AND DAVID HUNGER Tom originated this book in the late 1970s and with his friend David Hunger brought the first edition to fruition in 1982 What a ride it was! We lost both of these extraordinary men in rapid succession After battling bone cancer, Tom died in Saint Petersburg, Florida, on December 24, 2011 David died in St Joseph, Minnesota on April 10, 2014 after fighting cancer himself It was Tom’s idea from the very beginning to include the latest research and useful material written in such a way that the typical student could read and understand the book without outside assistance That has been a key reason for the success of the book through its many editions Tom and ­David worked in adjoining offices at the McIntire School of Commerce at the University of Virginia where their lifelong collaboration blossomed Tom’s last months were spent working with the two new co-authors to map out the direction for the 14th edition and we were fortunate to work with David through the early part of the 14th edition update until his fight against his cancer took priority We thank you both and bid you a fond farewell! This 15th edition is for you! Alan N Hoffman Charles E Bamford SPECIAL DEDICATION TO DAVID HUNGER A special dedication in honor of David Hunger to his colleagues, friends, and students— It is our hope and prayer that you found, and continue to find, some joy in your study of S ­ trategic Management and Business Policy and, perhaps, experience a sense of the passion behind the subject matter presented in this textbook It was originated by two men who were the best of friends and colleagues, Dr Tom Wheelen (May 30, 1935 – December 24, 2011) and our Dad, Dr. J. ­David Hunger (May 17, 1941 – April 10, 2014) This will be the first edition we will see ­without a handwritten note in the front and a dedication to us all Dad came alive discussing ­strategy, case management, theory, entrepreneurship, and the daily happenings in the field of management Even relaxing at the end of the day, he could be found thumbing through a Business Week or ­journal Colleagues always knew when he was in their presentations because he was fully engaged, ­offering questions and happy to share in an animated dialogue Students speak fondly of ­being in his class His dedication to the field never ended Even up to a month before he died (still ­undergoing ­chemotherapy) he insisted on travelling by train from Minnesota to Chicago for a Case ­Research ­Conference to run a panel We are so proud and thankful that Drs Alan Hoffman and Chuck Bamford knew Tom and Dad and are carrying the torch forward As his daughters A01_WHEE7290_15_GE_FM.indd 8/3/17 3:02 PM Dedicated and 6 grandchildren, we miss him daily We lost him far too soon Finally, our mom, Betty ­Hunger, who lived with the authorship of this textbook for three quarters of their 45 years together and joked that it was their 5th child, wishes to express just how much she misses Dad and looks ­forward to seeing him again Betty, Kari and Jeff, Madison and Megan, Suzi and Nick, Summer and Kacey, Lori and Derek, Merry and Dylan, and Edan and Greyson We love you David/Dad/GrandDad To Will Hoffman, the greatest son in the world… and to our saint Wendy Appel … and to Jodi L Silton, thank you for your kindness and understanding Alan Hoffman To Yvonne, for your support, advice, encouragement, love, and confidence To my children Ada, Rob, and Sean and my grandchildren Silas, Isaac, and Clara Chuck Bamford A01_WHEE7290_15_GE_FM.indd 8/3/17 3:02 PM Brief Contents part ONE  Introduction to Strategic Management and Business Policy 31 C hapter C hapter C hapter Basic Concepts of Strategic Management 32 Corporate Governance 70 Social Responsibility and Ethics in Strategic Management 100 part TWO  Scanning the Environment 121 C hapter C hapter Environmental Scanning and Industry Analysis 122 Organizational Analysis and Competitive Advantage 162 part THREE  Strategy Formulation 197 C hapter C hapter C hapter Strategy Formulation: Business Strategy 198 Strategy Formulation: Corporate Strategy 222 Strategy Formulation: Functional Strategy and Strategic Choice 248 part FOUR  Strategy Implementation and Control 277 C hapter C hapter 1 C hapter C hapter Strategy Implementation: Global Strategy 278 Strategy Implementation: Organizing and Structure 292 Strategy Implementation: Staffing and Directing 322 Evaluation and Control 346 part FIVE  Introduction to Case Analysis 375 C hapter Suggestions for Case Analysis 376 GLOSSARY G-1 NAME INDEX  I-1 SUBJECT INDEX  I-6 A01_WHEE7290_15_GE_FM.indd 7 8/3/17 3:02 PM This page intentionally left blank M03_BERK3278_04_SE_C03.indd 96 7/5/16 8:47 PM Contents Preface 17 About the Authors  25 PART ONE C hapter Introduction to Strategic Management and Business Policy  31 Basic Concepts of Strategic Management  32 The Study of Strategic Management  35 Phases of Strategic Management  35 Benefits of Strategic Management  36 Globalization, Innovation, and Sustainability: Challenges to Strategic Management 37 Impact of Globalization  38 Impact of Innovation  39 Global Issue: ASEAN: REGIONAL TRADE ASSOCIATIONS  40 Impact of Sustainability  40 Theories of Organizational Adaptation  42 Creating a Learning Organization  42 Basic Model of Strategic Management  44 Environmental Scanning  44 Strategy Formulation  46 Strategy Implementation  50 Evaluation and Control  51 Feedback/Learning Process  52 Initiation of Strategy: Triggering Events  52 Strategic Decision Making  53 What Makes a Decision Strategic? 53 Mintzberg’s Modes of Strategic Decision Making  54 Strategic Decision-Making Process: Aid to Better Decisions  55 The Strategic Audit: Aid to Strategic Decision Making  56 End of Chapter Summary  57 Appendix 1.A  Strategic Audit of a Corporation  62    A01_WHEE7290_15_GE_FM.indd 9 8/3/17 3:02 PM www.downloadslide.net G LOSSARY Mass production  A system in which employees work on narrowly defined, repetitive tasks under close supervision in a bureaucratic and hierarchical structure to produce a large amount of low-cost, standard goods and services Matrix of change  A chart that compares target practices (new programs) with existing practices (current activities) Matrix structure  A structure in which functional and product forms are combined simultaneously at the same level of the organization Mercosur/Mercosul  South American free-trade area including Argentina, ­Brazil, Uruguay, and Paraguay Merger  A transaction in which two or more corporations exchange stock, but from which only one corporation survives Mission  The purpose or reason for an organization’s existence Mission statement  The definition of the fundamental, unique purpose that sets an organization apart from other firms of its type and identifies the scope or domain of the organization’s operations in terms of products (including services) offered and markets served Modular manufacturing  A system in which preassembled subassemblies are delivered as they are needed to a company’s assembly-line workers who quickly piece the modules together into finished products Moore’s law  An observation of Gordon Moore, co-founder of Intel, that microprocessors double in complexity every 18 months Morality  Precepts of personal behavior that are based on religious or philosophical grounds Moral relativism  A theory that proposes that morality is relative to some personal, social, or cultural standard, and that there is no method for deciding whether one decision is better than another Most-favored nation  A policy of the World Trade Organization stating that a member country cannot grant one trading partner lower customs duties without granting them to all WTO member nations Multidomestic industry  An industry in which companies tailor their products to the specific needs of consumers in a particular country Multinational corporation (MNC)  A company that has significant assets and activities in multiple countries Z01_WHEE7290_15_GE_GLOS.indd Multiple sourcing  A purchasing strategy in which a company orders a particular part from several vendors Multipoint competition  A rivalry in which a large multibusiness corporation competes against other large multibusiness firms in a number of markets Mutual service consortium  A partnership of similar companies in similar industries that pool their resources to gain a benefit that is too expensive to develop alone Natural environment  That part of the external environment that includes physical resources, wildlife, and climate that are an inherent part of existence on Earth Net present value (NPV)  A calculation of the value of a project that is made by predicting the project’s payouts, adjusting them for risk, and subtracting the amount invested Network structure  An organization (virtual organization) that outsources most of its business functions New entrants  Businesses entering an industry that typically bring new capacity to an industry, a desire to gain market share, and substantial resources New product experimentation  A method of test marketing the potential of innovative ideas by developing products, probing potential markets with early versions of the products, learning from the probes, and probing again No-change strategy  A decision to nothing new; to continue current operations and policies for the foreseeable future North American Free Trade Agreement (NAFTA)  Regional free trade agreement between Canada, the United States, and Mexico Not-for-profit organization  Private nonprofit corporations and public governmental units or agencies Objectives  The end result of planned activity stating what is to be accomplished by when, and quantified if possible Offensive tactic  A tactic that calls for competing in an established competitor’s current market location Offshoring  The outsourcing of an activity or function to a provider in another country Open innovation  A new approach to R&D in which a firm uses alliances and connections with corporate, government, and academic labs to learn about new developments G-7 Operating budget  A budget for a business unit that is approved by top management during strategy formulation and implementation Operating cash flow  The amount of money generated by a company before the costs of financing and taxes are figured Operating leverage  The impact of a specific change in sales volume on net operating income Operations strategy  A functional strategy that determines how and where a product or service is to be manufactured, the level of vertical integration in the production process, and the deployment of physical resources Opportunity  A strategic factor considered when using the SWOT analysis Orchestrator  A top manager who articulates the need for innovation, provides funding for innovating activities, creates incentives for middle managers to sponsor new ideas, and protects idea/product champions from suspicious or jealous executives Organizational analysis  Internal scanning concerned with identifying an organization’s strengths and weaknesses Organizational learning theory  A theory proposing that an organization adjusts to changes in the environment through the learning of its employees Organizational life cycle  How organizations grow, develop, and eventually decline Organizational structure  The formal setup of a business corporation’s value chain components in terms of work flow, communication channels, and hierarchy Organization slack  Unused resources within an organization Output control  A control that specifies what is to be accomplished by focusing on the end result of the behaviors through the use of objectives and performance targets Outside directors  Members of a board of directors who are not employees of the board’s corporation; also called non–­ management directors Outsourcing  A process in which resources are purchased from others through long-term contracts instead of being made within the company Parallel sourcing  A process in which two suppliers are the sole suppliers of two different parts, but they are also backup suppliers for each other’s parts 7/28/17 6:41 PM www.downloadslide.net G-8 GL O S S A RY Parenting strategy  The manner in which management coordinates activities and transfers resources and cultivates capabilities among product lines and business units Pattern of influence  A concept stating that influence in strategic management derives from a not-for-profit organization’s sources of revenue Pause/proceed-with-caution strategy  A corporate strategy in which nothing new is attempted; an opportunity to rest before continuing a growth or retrenchment strategy Penetration pricing  A marketing pricing strategy to obtain dominant market share by using low price views its product lines and business units as a series of investments from which it expects a profitable return Power distance (PD)  The extent to which a society accepts an unequal distribution of influence in organizations Prediction markets  A forecasting technique in which people make bets on the likelihood of a particular event taking place Pressure-cooker crisis  A situation that exists when employees in collaborative organizations eventually grow emotionally and physically exhausted from the intensity of teamwork and the heavy pressure for innovative solutions Performance  The end result of activities, actual outcomes of a strategic management process Primary activity  A manufacturing firm’s corporate value chain, including inbound logistics, operations process, outbound logistics, marketing and sales, and service Performance appraisal system  A system to systematically evaluate employee performance and promotion potential Primary stakeholders  A high priority group that affects or is affected by the achievement of a firm’s objectives Performance gap  A performance gap exists when performance does not meet expectations Prime interest rate  The rate of interest banks charge on their lowest-risk loans Periodic statistical report  Reports summarizing data on key factors such as the number of new customer contracts, volume of received orders, and productivity figures Phases of strategic management  A set of four levels of development through which a firm generally evolves into strategic management Piracy  The making and selling of counterfeit copies of well-known name-brand products, especially software Planning mode  A decision-making mode that involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy Policy  A broad guideline for decision making that links the formulation of strategy with its implementation Political strategy  A strategy to influence a corporation’s stakeholders Population ecology  A theory that proposes that once an organization is successfully established in a particular environmental niche, it is unable to adapt to changing conditions Portfolio analysis  An approach to corporate strategy in which top management Z01_WHEE7290_15_GE_GLOS.indd the company to introduce and manage a similar line of products around the world Production sharing  The process of combining the higher labor skills and technology available in developed countries with the lower-cost labor available in developing countries Product R&D  Research and development concerned with product or productpackaging improvements Professional liquidator  An individual called on by a bankruptcy court to close a firm and sell its assets Profitability ratios  Ratios evaluating a company’s ability to make money over a period of time Profit center  A unit’s performance, measured in terms of the difference between revenues and expenditures Profit-making firm  A firm depending on revenues obtained from the sale of its goods and services to customers, who typically pay for the costs and expenses of providing the product or service plus a profit Private nonprofit corporation  A nongovernmental not-for-profit organization Profit strategy  A strategy that artificially supports profits by reducing investment and short-term discretionary expenditures Privatization  The selling of state-owned enterprises to private individuals Also the hiring of a private business to provide services previously offered by a state agency Program  A statement of the activities or steps needed to accomplish a single-use plan in strategy implementation Procedures  A list of sequential steps that describe in detail how a particular task or job is to be done Process innovation  Improvement to the making and selling of current products Product champion A person who generates a new idea and supports it through many organizational obstacles Product development  A marketing strategy in which a company or unit develops new products for existing markets or develops new products for new markets Product innovation  The development of a new product or the improvement of an existing product’s performance Product life cycle  A graph showing time plotted against sales of a product as it moves from introduction through growth and maturity to decline Product/market evolution matrix  A chart depicting products in terms of their competitive positions and their stages of product/market evolution Product-group structure  A structure of a multinational corporation that enables Propitious niche  A portion of a market that is so well suited to a firm’s internal and external environment that other corporations are not likely to challenge or dislodge it Public governmental unit or agency  A kind of not-for-profit organization that is established by government or governmental agencies (such as welfare departments, prisons, and state universities) Public or collective good  Goods that are freely available to all in a society Pull strategy A marketing strategy in which advertising pulls the products through the distribution channels Punctuated equilibrium  A point at which a corporation makes a major change in its strategy after evolving slowly through a long period of stability Purchasing power parity (PPP)  A measure of the cost, in dollars, of the U.S.produced equivalent volume of goods that another nation’s economy produces Purchasing strategy  A functional strategy that deals with obtaining the raw materials, parts, and supplies needed to perform the operations functions 7/28/17 6:41 PM www.downloadslide.net G LOSSARY Push strategy  A marketing strategy in which a large amount of money is spent on trade promotion in order to gain or hold shelf space in retail outlets Quality of work life  A concept that emphasizes improving the human dimension of work to improve employee satisfaction and union relations Quasi-integration  A type of vertical growth/integration in which a company does not make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial control Question marks  New products that have the potential for success and need a lot of cash for development R&D intensity  A company’s spending on research and development as a percentage of sales revenue R&D mix  The balance of basic, product, and process research and development R&D strategy  A functional strategy that deals with product and process innovation Ratio analysis  The calculation of ratios from data in financial statements to identify possible strengths or weaknesses Real options  An approach to new project investment when the future is highly uncertain Red flag  An indication of a serious underlying problem Red tape crisis  A crisis that occurs when a corporation has grown too large and complex to be managed through formal programs Reengineering  The radical redesign of business processes to achieve major gains in cost, service, or time Regional industry  An industry in which multinational corporations primarily coordinate their activities within specific geographic areas of the world Relationship-based governance  A government system perceived to be less transparent and have a higher degree of corruption Repatriation of profits  The transfer of profits from a foreign subsidiary to a corporation’s headquarters Replicability  The ability of competitors to duplicate resources and imitate another firm’s success Resources  A company’s physical, human, and organizational assets that serve as the building blocks of a corporation Z01_WHEE7290_15_GE_GLOS.indd Responsibility center  A unit that is isolated so that it can be evaluated separately from the rest of the corporation Retired executive directors  Past leaders of a company kept on the board of directors after leaving the company Retrenchment strategy  Corporate strategies to reduce a company’s level of activities and to return it to profitability Return on equity (ROE)  A measure of performance that is calculated by dividing net income by total equity Return on investment (ROI)  A measure of performance that is calculated by dividing net income before taxes by total assets Revenue center  A responsibility center in which production, usually in terms of unit or dollar sales, is measured without consideration of resource costs Reverse engineering  Taking apart a competitor’s product in order to find out how it works Reverse stock split  A stock split in which an investor’s shares are reduced for the same total amount of money RFID  A technology in which radio frequency identification tags containing product information are used to track goods through inventory and distribution channels Risk  A measure of the probability that one strategy will be effective, the amount of assets the corporation must allocate to that strategy, and the length of time the assets will be unavailable Rule-based governance  A governance system based on clearly stated rules and procedures Rules of thumb  Approximations based not on research, but on years of practical experience Sarbanes–Oxley Act  Legislation passed by the U.S Congress in 2002 to promote and formalize greater board independence and oversight Scenario box  A tool for developing corporate scenarios in which historical data are used to make projections for generating pro forma financial statements Scenario writing  A forecasting technique in which focused descriptions of different likely futures are presented in a narrative fashion SEC 10-K form  An SEC form containing income statements, balance sheets, cash flow statements, and information not usually available in an annual report G-9 SEC 10-Q form  An SEC form containing quarterly financial reports SEC 14-A form An SEC form containing proxy statements and information on a company’s board of directors Secondary stakeholders  Lower-priority groups that affect or are affected by the achievement of a firm’s objectives Sell-out strategy  A retrenchment option used when a company has a weak competitive position resulting in poor performance Separation  A method of managing the culture of an acquired firm in which the two companies are structurally divided, without cultural exchange SFAS (Strategic Factors Analysis Summary) matrix  A chart that summarizes an organization’s strategic factors by combining the external factors from an EFAS table with the internal factors from an IFAS table Shareholder value  The present value of the anticipated future stream of cash flows from a business plus the value of the company if it were liquidated Short-term orientation  The tendency of managers to consider only current tactical or operational issues and ignore strategic ones Simple structure  A structure for new entrepreneurial firms in which the employees tend to be generalists and jacks-of-all-trades Six Sigma  A statistically based program developed to identify and improve a poorly performing process Skim pricing  A marketing strategy in which a company charges a high price while a product is novel and competitors are few Small-business firm  An independently owned and operated business that is not dominant in its field and that does not engage in innovative practices Social capital  The goodwill of key stakeholders, which can be used for competitive advantage Social entrepreneurship  A business in which a not-for-profit organization starts a new venture to achieve social goals Social responsibility  The ethical and discretionary responsibilities a corporation owes its stakeholders Societal environment  Economic, technological, political-legal, and sociocultural environmental forces that not directly touch on the short-run activities of an organization but influence its long-run decisions 7/28/17 6:41 PM www.downloadslide.net G-10 GL O S S A RY Sole sourcing  Relying on only one supplier for a particular part SO, ST, WO, WT strategies  A series of possible business approaches based on combinations of opportunities, threats, strengths, and weaknesses Sources of innovation  Drucker’s proposed seven sources of new ideas that should be monitored by those interested in starting entrepreneurial ventures Sponsor  A department manager who recognizes the value of a new idea, helps obtain funding to develop the innovation, and facilitates the implementation of the innovation Stability strategy  Corporate strategies to make no change to the company’s current direction or activities Staffing  Human resource management priorities and use of personnel Stages of corporate development A pattern of structural development that corporations follow as they grow and expand Stages of international development  The stages through which international corporations evolve in their relationships with widely dispersed geographic markets and the manner in which they structure their operations and programs Stages of new product development  The stages of getting a new innovation into the marketplace Stage-gate process  A method of managing new product development to increase the likelihood of launching new products quickly and successfully The process is a series of steps to move products through the six stages of new product development Staggered board  A board on which directors serve terms of more than one year so that only a portion of the board of directors stands for election each year Stakeholder  An individual or entity with an interest in the activities of the organization Stakeholder analysis  The identification and evaluation of corporate stakeholders Stakeholder measure  A method of keeping track of stakeholder concerns Stakeholder priority matrix  A chart that categorizes stakeholders in terms of their interest in a corporation’s activities and their relative power to influence the corporation’s activities Stall point  A point at which a company’s growth in sales and profits suddenly stops and becomes negative Z01_WHEE7290_15_GE_GLOS.indd 10 Standard cost center  A responsibility center that is primarily used to evaluate the performance of manufacturing facilities Standard operating procedures  Plans that detail the various activities that must be carried out to complete a corporation’s programs Star  Market leader that is able to generate enough cash to maintain its high market share Statistical modeling  A quantitative technique that attempts to discover causal or explanatory factors that link two or more time series together STEEP analysis  An approach to scanning the societal environment that examines socio-cultural, technological, economic, ecological, and political-legal forces Also called PESTEL analysis Steering control  Measures of variables that influence future profitability Stewardship theory  A theory proposing that executives tend to be more motivated to act in the best interests of the corporation than in their own self-interests Strategic alliance  A partnership of two or more corporations or business units to achieve strategically significant objectives that are mutually beneficial Strategic factors  External and internal factors that determine the future of a corporation Strategic flexibility  The ability to shift from one dominant strategy to another Strategic-funds method  An approach that separates developmental expenses from expenses required for current operations Strategic group  A set of business units or firms that pursue similar strategies and have similar resources Strategic inflection point  The period in an organization’s life in which a major change takes place in its environment and creates a new basis for competitive advantage Strategic management  A set of managerial decisions and actions that determine the long-run performance of a corporation Strategic management model  A rational, prescriptive planning model of the strategic management process including environmental scanning, strategy formulation, strategy implementation, and evaluation and control Strategic myopia  The willingness to reject unfamiliar as well as negative information Strategic audit  A checklist of questions by area or issue that enables a systematic analysis of various corporate functions and activities It’s a type a management audit Strategic piggybacking  The development of a new activity for a not-for-profit organization that would generate the funds needed to make up the difference between revenues and expenses Strategic audit worksheet  A tool used to analyze a case Strategic planning staff  A group of people charged with supporting both top management and business units in the strategic planning process Strategic business unit (SBU)  A division or group of divisions composed of independent product-market segments that are given primary authority for the management of their own functions Strategic choice  The evaluation of strategies and selection of the best alternative Strategic choice perspective  A theory that proposes that organizations adapt to a changing environment and have the opportunity and power to reshape their environment Strategic decision-making process  An eight-step process that improves strategic decision making Strategic decisions  Decisions that deal with the long-run future of an entire organization and are rare, consequential, and directive Strategic R&D alliance  A coalition through which a firm coordinates its research and development with another firm(s) to offset the huge costs of developing new technology Strategic rollup  A means of consolidating a fragmented industry in which an entrepreneur acquires hundreds of owneroperated small businesses resulting in a large firm with economies of scale Strategic sweet spot  A market niche in which a company is able to satisfy customers’ needs in a way that competitors cannot Strategic type  A category of firms based on a common strategic orientation and a combination of structure, culture, and processes that are consistent with that strategy 7/28/17 6:41 PM www.downloadslide.net G LOSSARY Strategic vision  A description of what the company is capable of becoming threats that may be strategic factors for a specific company Strategic window  A unique market opportunity that is available only for a particular time Synergy  A concept that states that the whole is greater than the sum of its parts; that two units will achieve more together than they could separately Strategic-funds method  An evaluation method that encourages executives to look at development expenses as being different from expenses required for current operations Tacit knowledge  Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation’s culture Strategies to avoid  Strategies sometimes followed by managers who have made a poor analysis or lack creativity Tactic  A short-term operating plan detailing how a strategy is to be implemented Strategy  A comprehensive plan that states how a corporation will achieve its mission and objectives Takeover  A hostile acquisition in which one firm purchases a majority interest in another firm’s stock Strategy-culture compatibility  The match between existing corporate culture and a new strategy to be implemented Taper integration  A type of vertical integration in which a firm internally produces less than half of its own requirements and buys the rest from outside suppliers Strategy formulation  Development of long-range plans for the effective management of environmental opportunities and threats in light of corporate strengths and weaknesses Task environment  The part of the business environment that includes the elements or groups that directly affect the corporation and, in turn, are affected by it Strategy implementation  A process by which strategies and policies are put into action through the development of programs, budgets, and procedures Technological competence  A corporation’s proficiency in managing research personnel and integrating their innovations into its day-to-day operations Structure follows strategy  The process through which changes in corporate strategy normally lead to changes in organizational structure Technological discontinuity  The displacement of one technology by another Stuck in the middle  A situation in which a company or business unit has not achieved a generic competitive strategy and has no competitive advantage Technological leader  A company that pioneers an innovation Suboptimization  A phenomenon in which a unit optimizes its goal accomplishment to the detriment of the organization as a whole Substages of small business development  A set of five levels through which new ventures often develop Technological follower  A company that imitates the products of competitors Technology sourcing  A make-or-buy decision that can be important in a firm’s R&D strategy Technology transfer  The process of taking a new technology from the laboratory to the marketplace Time to market  The time from inception to profitability of a new product Substitute products  Products that appear to be different but can satisfy the same need as other products Timing tactics Tactics that determine when a business will enter a market with a new product Supply chain management  The formation of networks for sourcing raw materials, manufacturing products or creating services, storing and distributing goods, and delivering goods or services to customers and consumers Tipping point  The point at which a slowly changing situation goes through a massive, rapid change Support activity  An activity that ensures that primary value-chain activities operate effectively and efficiently SWOT analysis  Identification of strengths, weaknesses, opportunities, and Z01_WHEE7290_15_GE_GLOS.indd 11 Top management responsibilities  Leadership tasks that involve getting things accomplished through, and with, others in order to meet the corporate objectives Total Quality Management (TQM)  An operational philosophy that is committed to customer satisfaction and continuous improvement G-11 TOWS matrix  A matrix that illustrates how external opportunities and threats facing a particular company can be matched with that company’s internal strengths and weaknesses to result in four sets of strategic alternatives Transaction cost economics  A theory that proposes that vertical integration is more efficient than contracting for goods and services in the marketplace when the transaction costs of buying goods on the open market become too great Transferability  The ability of competitors to gather the resources and capabilities necessary to support a competitive challenge Transfer pricing  A practice in which one unit can charge a transfer price for each product it sells to a different unit within a company Transformational leader  A leader who causes change and movement in an organization by providing a strategic vision Transparent  The speed with which other firms can understand the relationship of resources and capabilities supporting a successful firm’s strategy Trends in governance  Current developments in corporate governance Triggering event  Something that acts as a stimulus for a change in strategy Trigger point  The point at which a country has developed economically so that demand for a particular product or service is increasing rapidly Turnaround specialist  A manager who is brought into a weak company to salvage that company in a relatively attractive industry Turnaround strategy  A plan that emphasizes the improvement of operational efficiency when a corporation’s problems are pervasive but not yet critical Turnkey operation  Contracts for the construction of operating facilities in exchange for a fee Turnover  A term used by European firms to refer to sales revenue It also refers to the amount of time needed to sell inventory Uncertainty avoidance (UA)  The extent to which a society feels threatened by uncertain and ambiguous situations Union of South American Nations  An organization formed in 2008 to unite ­Mercosur and the Andean Community 7/28/17 6:41 PM www.downloadslide.net G-12 GL O S S A RY Utilitarian approach  A theory that proposes that actions and plans should be judged by their consequences Value chain  A linked set of valuecreating activities that begins with basic raw materials coming from suppliers and ends with distributors getting the final goods into the hands of the ultimate consumer Value-chain partnership  A strategic alliance in which one company or unit forms a long-term arrangement with a key supplier or distributor for mutual advantage Value disciplines  An approach to evaluating a competitor in terms of product leadership, operational excellence, and customer intimacy Vertical growth  A corporate growth strategy in which a firm takes over a function previously provided by a supplier or distributor Z01_WHEE7290_15_GE_GLOS.indd 12 Vertical integration  The degree to which a firm operates in multiple locations on an industry’s value chain from extracting raw materials to retailing Web 2.0  A term used to describe the evolution of the Internet into wikis, blogs, RSSs, social networks, podcasts, and mash-ups Virtual organization  An organizational structure that is composed of a series of project groups or collaborations linked by changing nonhierarchical, cobweb-like networks Weighted-factor method  A method that is appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another Virtual team  A group of geographically and/or organizationally dispersed co-workers who are assembled using a combination of telecommunications and information technologies to accomplish an organizational task Vision  A view of what management thinks an organization should become VRIO framework  Barney’s proposed analysis to evaluate a firm’s key resources in terms of value, rareness, imitability, and organization Whistle-blower  An individual who reports to authorities incidents of questionable organizational practices World Trade Organization  A forum for governments to negotiate trade agreements and settle trade disputes Z-value  A formula that combines five ratios by weighting them according to their importance to a corporation’s financial strength to predict the likelihood of bankruptcy 7/28/17 6:41 PM www.downloadslide.net NAME INDEX A ABB Asea Brown Boveri AG, 176, 177 AB InBev, 39, 169, 215, 257, 298 Ackman, Bill, 78 A C Nielsen Co., 149 Adelphia Communications, 85 Adidas, 138 Admiral, 336 Aerospatiale, 215 AFL-CIO, 89 AFNOR, 287 Airbus Industries, 215 Alcon, 300 Aldi, 33, 206 All-China Federation of Trade Unions, 134 Altegrity Inc., 151 Amazon.com, 54, 93, 169, 273 AMD, 48 American Airlines, 39, 48, 229, 234, 308, 349 American Customer Satisfaction Index (ACSI), 349 American Cyanamid, 315 American Hospital Supply (AHS), 189 American Productivity & Quality Center (APQC), 360 American Standards Institute, 287 Amoco, 170, 171 Andean Community, 39, 41 Anheuser-Busch Companies, 39, 83, 281 Apotheker, Leo, 72, 90 Applebee’s, 326 Apple Inc., 39, 40, 43, 78, 91, 115, 124, 140, 143, 167, 179, 181, 207, 210, 228, 237, 249, 252, 253, 287, 296, 298, 307, 327, 355, 363 Apple iPhone, 143 Archer Daniels Midland (ADM), 213 Arm & Hammer, 204, 251 ASEAN Free Trade Area (AFTA), 41 Association of Southeast Asian Nations (ASEAN), 39, 41, 135 AstraZenica, 208 AT&T, 253, 329, 336, 354 Auerbach, David, 113 Autonomy, 364 Avon Products, 150, 165 A&W restaurants, 216 B Baan, 189 Baby Fresh Organic Baby Foods, 311 Badaracco, Joseph, 117 Bain & Company, 37, 232, 261, 328, 356, 360 Baldwin Locomotive, 124 Ballmer, Steve, 92 Balsillie, Jim, 249 Bankers Trust of New York, 328 Banking Act of 1933, 82 Bank of America, 133 Barnevik, Percy, 177 Barney, J B., 165, 214 BASF, 146 BCG Growth-Share Matrix, 236–239 Bell Labs, 241 Benetton, 311 Ben & Jerry’s Ice Cream, 105 Bennigan’s, 308 Bentley, 126 Berkshire Hathaway, 231 Berle, A A., 80 Bert, A., 294 Best Buy, 147, 176, 228, 230 Best Price, 281 Bezos, Jeff, 54, 93 Bharti Enterprises, 281 Bice, Allison, 109 BlackBerry, 249, 250, 263 Bloomberg Businessweek, 87 Bloomberg, Michael, 110 Bloom, Ron, 186 Blue Ocean Strategy, 204 BMW, 50, 126, 135, 175, 179, 207, 281, 288 BNSF Railroad, 323 Board, 356 Body Shop, 91 Boeing, 139, 163, 205, 260, 310, 328, 336 Bombardier, 163, 312 Borders, 308, 330 Bosch-Siemens, 211, 394, 398 BP, 107, 108, 171 Brabeck-Letmathe, Peter, 315 Branson, Richard, 91 Bristol-Myers Squibb, 228, 229 British Aerospace, 215 British Airways, 39, 48, 154 British Petroleu See BP British Standards Institute, 287 Budweiser, 215, 361 Buffalo Wild Wings, 359 Burger King, 144 Burns, Larry, 238 Business Environment Risk Index, 144 Business Records Management, 210 Byron, William J., 102 Capgemini, 229 Carbon Trust, 132 Carrefour, 229, 281 Carroll, Archie, 102, 103, 118 Categorical imperative, 116, 117 Caterpillar, 101, 102, 179, 192, 313 Cavanagh, G F., 116 Central American Free Trade Agreement (CAFTA), 39, 41 Chandler, Alfred, 43, 301, 302, 306, 326 Charon, Ram, 357 CHEGG, 210–212 Chevron, 267 Chick-fil-A, 108 Chow, Dan, 361 Christensen, C M., 80, 182 Chrysler Corporation, 185, 254, 272 Church & Dwight Co., 204, 251 Circuit City, 176, 235, 308 Cisco Systems, 49, 86, 104, 150, 227, 361 Citigroup, 90, 133 CITY Target, 200 Clorox, 216 Clorox Company, 174, 216, 299 Coca-Cola, 47, 107, 130, 133, 179, 180, 187, 188, 229, 257, 288, 299, 354, 362 Coca-Cola Bottling Company Consolidated (CCBCC), 107 Cognizant Technology Solutions, 311 Colgate Palmolive Company, 210 Comcast, 300 Compact Disclosure, 378, 389 Compaq, 71, 73, 92, 232 Compustat, 378, 389 ConAgra, 269 Connecticut Spring & Stamping, 185 Construcciones Aeronáuticas, 215 Continental Airlines, 300, 377 Converse, 138, 335 Corbett, Julie, 296 Cornerstone Records Management, 210 Corning Inc., 315, 325 Corporate Library, 83, 87 Costco, 305 Craigslist, 273 Crane, A., 105 CSA, 287 CSX Corporation, 231 C D Callinicos, Brent, 352 Campbell, A., 300 Canadair, 163 CANENA, 287 Canon, 115 Daft, Douglas, 187 Daimler-Benz, 335 Daimler-Benz Aerospace, 215 Dairy Queen, 145 Daksh eServices Ltd., 261 I-1 Z02_WHEE7290_15_GE_NIDX.indd 7/28/17 6:41 PM www.downloadslide.net I-2 NA ME IN D E X D’Aveni, Richard, 43, 146, 211, 212 Davis, S M., 310 Deepwater Horizon oil spill, 107 Deere and Company, 353 Defining Moments (Badaracco), 117 Dell Computers, 261, 370 Dell, Michael, 232 Delphi Corporation, 235 Deming, W Edwards, 255, 257 DHL, 218 Diligence Inc., 151 DIN, 287 Dixon, Lance, 258 DoCoMo, 179 Dodd-Frank financial reform law, 90 Doha Round, 134 Domino’s, 209, 347 Donald, Jim, 51 Dow Chemical, 314, 368 Dow Jones & Company, 105 Dow Jones Sustainability Index, 133 Drauch, Douglas, 238 Duke Energy, 226, 350 Dunn, Patricia, 72, 73 DuPont, 259, 301, 302, 305, 352, 356 Durant, William, 306 E Eastern Airlines, 308 Eastman Kodak, 123, 124 Eaton Corporation, 367 eBay, 72, 86, 91, 169, 273, 306 Ecologic Brands, 296 Economic Espionage Act, 151 Economist, 144, 150, 284, 390 Economist Intelligence Unit, 144, 215 Edwards, J D., 189 Eisner, Michael, 93 Electrolux, 40, 81, 154, 211, 230, 286 Eli Lilly, 153, 354 Elkington, John, 38 Elliot, J Raymond, 129 Ellison, Lawrence, 304, 305 Emerson Electric, 83 Enron, 74, 85, 110, 112 Enterprise, 206, 364 Erhart, Charles, 223 Eskew, Mike, 154 ESPN, 212, 213 Estée Lauder, 129 European Union (EU), 39, 40, 131, 132, 135, 186, 213, 287, 361 F Facebook, 77, 86, 88, 124, 179, 189, 211, 216, 217 Fairfax, 151 Federated Department Stores, 301 FedEx, 51, 165, 189, 227, 260, 358, 363 Ferrari, 126 Z02_WHEE7290_15_GE_NIDX.indd Fiat, 282, 316 Fila, 138 Filo, David, 86, 306 Financial Accounting Standards Board (FASB), 287 Financial Crimes Enforcement Network, 109 Finsbury Data Services, 149 Fiorina, Carly, 71, 72, 92, 93 Five Guys, 207 Ford, Henry, 170, 226, 306 Ford Motor Company, 170, 171, 187, 306, 314 Fortune magazine, 370 Foster, Richard, 182 Frank J Zamboni & Company, 204 Fredrickson, James, 57 Friedman, Milton, 102–104 Friedman, Thomas, 38 Frito Lay, 146 Fruit of the Loom, 231 Fujitsu Ltd., 263 G Galbraith, J R., 171 Gannet, 330 Gates, Bill, 91 GEICO, 231 Genentech, 53, 86, 300 General Electric, 36, 39, 50, 124, 154, 165, 177, 179, 214, 229, 241, 261, 271, 305, 314, 325, 328, 329, 332, 354, 359 General Foods, 175 General Mills, 139, 149, 239 General Motors, 91, 124, 169, 171, 214, 237, 238, 256, 293, 301, 302, 305, 306, 308, 368 Genpact, 261 Georgia-Pacific, 259, 354 Gerstner, Louis V Jr., 38, 54, 55, 91 Ghosn, Carlos, 336 Gilad, B., 152 Gillette, 166, 167, 169, 176, 297, 300 Global Crossing, 74, 85 Global Information Solutions (GIS), 336 GlyEco Inc., 210 Goizueta, Roberto, 354 Goldman Sachs, 133, 252 Good-Data, 149 Goodyear Tire & Rubber, 186 Google, 39, 50, 86, 88, 153, 169, 175, 179, 181, 253, 301, 379 Goold, M., 300 Governance Metrics International (GMI), 87 Graduate Management Admission Council, 110 Grant, R M., 55 Greiner, L E., 304, 306 Gretzky, Wayne, 156 Grove, Andy, 53, 141, 266 H Haier, 211 Hallmark, 259 Hambrick, Donald, 57 Hamilton, R D., 350 Hammer, Michael, 313 Harley Davidson, 185, 314, 331 Harrigan, K R., 236 Heilmeier, George, 183 Heineken, 190 Heins, Thorsten, 249 Herd, T., 294 Hershey Foods, 362 Hesse, Daniel, 137 Hewlett-Packard Company, 71, 73, 93, 115, 170, 185, 241, 328, 364 Hewlett, Walter, 71 Home Depot, 51, 230, 251, 300, 308, 331, 332, 334, 362 Honda, 168, 209, 281, 318 Hoover’s, 149, 191, 202, 203, 378 HSBC, 330 Huckabee, Mike, 108 Hurd, Mark, 72, 73 Hypercompetition (D’Aveni), 43, 146, 211, 212 Hyundai/Kia, 184 I IBM, 38, 39, 54, 55, 91, 136, 139, 168, 179, 185, 204, 215, 237, 241, 254, 261–263, 305, 368 iDisorder: Understanding Our Obsessionwith Technology (Rosen), 143 IKEA, 230 ImClone, 228, 229 Immelt, Jeffrey, 329 InBev, 39, 169, 215, 257, 281, 298, 359 Infosys, 311 Infrasource Services, 88 Innovator’s Dilemma (Christensen), 182 In Search of Excellence (Peters and Waterman), 366 Instagram, 77 Institutional Shareholder Services (ISS), 87 Intel, 48, 53, 139, 141, 181, 241, 254, 266, 298 International Accounting Standards, 287 International Electrotechnical Commission (IEC), 287 International Harvester, 361 International House of Pancakes (IHOP), 326 International Organization for Standardization (ISO), 287 7/28/17 6:41 PM www.downloadslide.net Intrade.com, 153 iPad tablets, 143 iPhone, 54, 143, 167, 179, 237, 249, 287, 296, 327 iTunes App Store, 143 J Japanese Industrial Standards Committee, 287 JCPenney, 78 JetBlue, 146 Jim Henson Company, 108 Jobs, Steve, 91, 307, 327 Johns-Manville, 308 Johnson & Johnson, 108, 109, 115, 243, 271 Johnson, Ron, 78 Jones, Michael, 300 Joyce, W., 37 JPMorgan Chase, 133 P Morgan Chase & Company, 262 K Kaiser Health, 363 Kant, Immanuel, 116, 117 Kaplan, R S., 356 Kelleher, Herb, 91 Kersey Temperament Sorter, 342 KFC, 216, 230, 334 KIA Motors, 169 Kimberly Clark, 212, 243, 253, 298 Kirin, 215 KLD Broad Market Social Index, 133 Kleiner Perkins, 83 Kmart, 308 Kodak See Eastman Kodak Kohlberg, L., 113, 114, 117 Korn/Ferry International, 81 KPMG, 185, 329 Kraft Foods, 226, 315 Kramer, M R., 104 Kurtzman Group, 111 Kvinnsland, Stener, 340 Kyoto Protocol, 132 L Labatt, 215 Lafley, A G., 303 Lafley, Art, 176, 254 Lamborghini, 135 Land, Edwin, 306 Larsen, Ralph, 271 Lawrence, P R., 310 Lazaridis, Mike, 249 Lean Six Sigma, 296, 314 Learjet, 163 LEGO, 189 Levinsohm, Ross, 86 Levinson, Arthur, 53, 54 Levi Strauss, 105, 115, 154 Z02_WHEE7290_15_GE_NIDX.indd N A M E I NDEX Levitz Furniture, 308 LexisNexis, 149 LG, 168, 211 Lincoln Electric, 146 LinkedIn, 169, 185, 189 Linux, 241, 254 Liveris, Andrew, 257 Long John Silver’s, 216 Lopez, José, 257 Lorange, Peter, 217 Lorenz, John, 210 Lucent Technology, 342 Lutz, Robert, 238 M MacDonald, T., 294 Macy’s, 301, 308 Magic Chef, 49 Malmendier, U., 92 Manco Inc., 360 Marchionne, Sergio, 316 Market Research.com, 149 Marks & Spencer Group, 106 Marlboro, 361 Marsh Consumer BPO, 311 Mary Kay Corporation, 150 Maserati, 135 Matsushita, Konosuke, 177 Mattel, 254 Matten, D., 105 Maybelline, 129 May Company, 301 Mayer, Marissa, 86, 87, 263 Maytag Corporation, 156, 191, 201, 211, 215, 385, 388, 394, 397, 399–402 McCafé, 255 McDonald, Bob, 303 McDonald’s, 144, 145, 179, 188, 230, 255, 259, 281, 328 McDonnell-Douglas, 336 McKinsey & Company, 37, 75, 76, 104, 125, 148, 232, 236, 269, 328, 334 Means, G C., 80 Medtronic, 115 Mercedes-Benz, 135 Mercer Delta Consulting, 87 Merck, 208 Mercosur, 39, 41 Mervyn’s, 308 Mesa Airlines, 229 Microsoft, 39, 48, 50, 86, 91, 92, 130, 139, 141, 153, 179, 181, 204, 225, 253, 254, 297, 298, 328, 352, 362 Midamar Corporation, 208 Miles, R E., 146, 312 Mintzberg, Henry, 52, 54–55, 271 Mitsubishi Motors, 335 Modelo, 215 I-3 Monsanto, 340 Montgomery Ward Inc., 308, 326 Moody’s, 87, 150, 389 Morgan Motor Car Company, 208 Morningstar, 87 Mossville Engine Center, 313 Motorola, 115, 313 Muralidharan, R., 350 N Nardelli, Robert, 300, 331, 332, 334 NBC Universal, 300 NCR Corporation, 72, 336 Nestlé, 130, 187, 257, 315 Netscape, 297 Netsuite, 349 New Balance, 138, 207 Newman’s Own, 115 Newport News Shipbuilding, 47 Nickelodeon, 208 Nike Inc., 39, 138, 207, 253, 254, 311, 328, 361 Nissan, 238, 281, 282, 336 Nohria, N., 37 Nokia, 361 Noorda, Raymond, 218 Nordstrom’s, 51, 175, 271 North American Free Trade Agreement (NAFTA), 39–41, 135, 395 Northwest Airlines, 82 Norton, D P., 356 Novartis, 53, 300 Nucor, 175 Nutt, Paul, 269 O Obama, Barack, 153 Office Depot, 329, 349 Olive Garden, 144 Olympic Games, 187, 188 Omidyar, Pierre, 273, 306 Oracle Corporation, 86, 150, 189, 225, 241, 304, 305, 362 Orbitz, 88 Orion Pictures, 308 OrphageniX, 208 Owens-Corning, 362 P Pan American Airlines, 308 Panasonic, 176, 177 Panda Restaurant Group, 209 Pandit, Vikram, 90 Panera Bread Company, 332 Patagonia, 115 PayPal, 86, 273, 293 Pelino, Doug, 329 PeopleShareNet, 43 PeopleSoft, 189 7/28/17 6:41 PM www.downloadslide.net I-4 NA ME IN D E X PepsiCo, 257, 334, 360, 382, 383 Peters, T J., 366 F Chang’s, 209 Pfizer, Charles, 223 Pfizer Inc., 48, 185, 223, 224, 300, 306, 328, 340 P&G See Procter & Gamble (P&G) Pharmacia, 223, 306, 339, 340 Pharmacia & Upjohn, Inc., 340 Pitney Bowes, 85 Pixar, 167 Pizza Hut, 209, 216, 334, 347 Platt, Lewis, 71 Polaroid, 263, 306, 354 Porsche, 126, 135 Porter, M., 104 Porter, Michael E., 41, 138, 140, 142, 168, 171, 172, 206, 208, 209, 298, 299 Potlach Corporation, 207 Procter & Gamble (P&G), 49, 105, 136, 137, 139, 146, 150, 166, 172, 176, 180, 185, 190, 212, 216, 234, 242, 243, 250, 254, 299, 300, 302, 303, 310, 327, 328, 361 Proctor & Gamble, 216 Professionals, 151 Q Quaker Oats, 354, 382 Qwest, 74, 85 R RAND Corporation, 153 Read, Ian, 223 Red Hat, 241 Reebok, 39, 138, 311, 318 Reggie White vs NFL, 213 Reinhardt, F L., 41 Renault, 282, 336 Rent.com, 273 Research in Motion (RIM), 140, 249, 250, 253, 330 Roberson, B., 37 Roche, 300 Rockwell Collins, 181 Roddick, Anita, 91 Romney, Mitt, 153 Rosen, Larry, 143 Royal Dutch Shell, 154, 227 Rumelt, Richard, 229 Ryanair, 50 S Saab Automobile Parts AB, 334 Samsung, 39, 124, 140, 179, 181, 363 SAP AG, 362 Sarbanes-Oxley Act, 85, 87, 114 Z02_WHEE7290_15_GE_NIDX.indd Savage, Randy, 367 SBC Communications, 83 Schlitz Brewing Company, 80 Schoonover, Philip, 176 Schultz, Howard, 51, 91, 255 Scientific-Atlanta Inc., 227 C Johnson, 115 ScoreTop.com, 110 Sears, 38, 147, 301, 308, 330, 365, 366, 402 Security Outsourcing Solutions, 151 See’s Candies, 231 Seidenberg, Ivan, 92 Semel, Terry, 86, 87 Seventh Generation Laundry Detergent, 296 ShareNet, 43 Sherwin-Williams Company, 227 Shorebank, 115 Siemens, 43, 177 Six Sigma, 296, 313–314, 340 Skoll, Jeff, 273 Skype, 273 Sloan, Alfred P., 270, 302 Smeltzer, Larry, 111 Smithfield Foods, 227 Smucker, 115 Snow, C C., 146, 312 Society of Competitive Intelligence, 151, 390 Sony, 115, 215, 298, 327 South African Breweries (SAB), 204 Southwest Airlines, 91, 206, 299 Sports Center, 212 Sprint, 354 Sprint Nextel, 137 Standard & Poor’s (S&P), 81, 87, 150, 382, 389, 390 Stanley Works, 362 Staples, 48 Starbucks, 50–52, 91, 105, 255, 257, 330 Stern Stewart & Company, 354 Stewart, Julia, 326 Stuart, Spencer, 74, 81, 328 StubHub, 273 Sullivan, Jerry, 187 Surowiecki, James, 153 T Taco Bell, 206, 216, 334 Target, 78, 104, 107 Tata Group, 267 Tate, G., 92 Taxin, Gregory, 86 Tenneco, 354 Tennessee Valley Authority, 267 Tesco, 229, 281, 363 Tesla Motors, 132, 238, 294 Tipping Point (Gladwell, Malcolm), 27 Third Point, 86 Thompson, Scott, 86, 87 3M, 49, 154, 175, 264, 314, 315, 360 TIAA-CREF, 81 Timex, 206 Toro, 231 Toshiba, 215, 229 Toyota, 43, 126, 179, 189, 209, 238, 256, 258, 281, 314, 354 Trans Ocean, 107 Trans-Pacific Partnership Free Trade, 207 Treacy, M., 152 Tricon Global Restaurants, 334 Trident Group, 151 TurboTax, 169 Tyco, 74, 85, 110 U UnderArmour, 138 Unilever, 250, 257, 315 Union of South American Nations, 41 United Airlines, 82, 229, 300, 377 United Auto Workers, 82, 187 United Express, 229 United National Global Compact, 104 United Steel Workers, 186 Upjohn Pharmaceuticals, 340 UPS, 48, 51, 154, 218, 260 US Airways, 378 S Department of Defense, 363, 389 V Value Line, 150, 389 Vanguard, 169 Verizon Communications, 92 Vibram Five Fingers, 138 Virgin, 34, 91, 311, 315 Volkswagen, 181, 362 W Wagoner, Richard Jr., 238 Wal-Mart, 31, 32, 107, 132, 189, 190, 199, 206, 208, 229, 233, 254, 271, 281, 288, 360, 361, 363 Walt Disney Company, 93, 169, 207, 229, 307, 368 Warner-Lambert, 223, 306 Waterman, R H., 366 Watkins, Sherron, 112 WebFountain, 136 Welch, Jack, 241, 271, 314, 329 Wendy’s, 144, 185 Weyerhauser, 171, 172 Wheeling-Pittsburgh Steel, 82 Whirlpool, 156, 191, 201, 211, 212, 234, 336, 354, 362, 396–400, 402 Whitman, Meg, 72, 73, 91, 273 Whole Foods, 105 Who Says Elephants Can’t Dance?(Gerstner), 55 7/28/17 6:41 PM www.downloadslide.net Wiersema, F., 152 Wiersema, Margarethe, 93 Wilburn, Nicole, 310 Williamson, O E., 228 Wisdom of Crowds (Surowiecki), 153 WorldCom, 74, 85, 110 The World is Flat (Friedman), 38 World Political Risk Forecasts, 144 World Trade Organization (WTO), 133–134 Z02_WHEE7290_15_GE_NIDX.indd N A M E I NDEX W&T Offshore, 88 Wyeth, 223 X Xerox, 167, 296, 318, 329, 360 Y Yahoo!, 86, 87, 234, 250, 263 Yamaha, 298, 361 I-5 Yang, Jerry, 86, 87, 306 Yum! Brands, 216, 334 Z Zabriskie, J., 340 Zappos, 325 Zimmer Holdings, 128 Zuckerberg, Mark, 77, 88 Zynga, 75 7/28/17 6:41 PM www.downloadslide.net Subject INDEX A Accounting accrual method of, 369 activity-based costing, 351–352 cost accounting, 351 GAAP, 287 Accounts receivable, 353, 379 Acquisitions, 226, 229, 232, 281 See also Mergers corporate culture considerations, 176, 335–336 cross-border, 281 Action plan, 336–338 Activity-based costing (ABC), 351–352 Activity ratios, 379, 380–381 Adaptive mode, 54 Advertising model, 169 Affiliated directors, 80 Agency theory, 77–79 Airline industry, 229, 234 Alternative energy sources, 131 Altman’s Z-Value Bankruptcy Formula, 383 Analytical portfolio manager, 326 Analyzers, 146 Annual report, 379 Appliance industry, 142, 144, 147, 211–212 Apps, 143, 179 Arms race strategy, 263 Artisans, 342 Assimilation, of cultures, 336 Athletic shoe industry, 138 Automobile industry, 132, 139, 169, 170, 238 downsizing study, 330 SUV demand in China, 134 Autonomous work teams, 185 B Baby boomers, 128, 129 Backward integration, 227 Balanced scorecards, 37, 356–357 Bankruptcy, 308 Bankruptcy strategy, 235 Basic R&D, 181 Behavior controls, 349 Behavior substitution, 365–366 Benchmarking, 360 Blind spot analysis, 152 Blockbuster model, 169 Board of directors, 73–89 board activism, 86 codetermination and, 82 company performance and, 93 compensation of, 82, 365 composition, 77–85 continuum of, 75–77 evaluating, 356–357 globalization’s impact on, 81 Hewlett-Packard, 71–73 interlocking directorates, 83 liability insurance for, 75 nomination and election of, 83–84 organization of, 84–85 responsibilities of, 74–75 SEC requirements for, 77 in strategic management, 75 women and minorities on, 81, 89 Bombardier and C-series aircraft, 163–164 Brainstorming, 153 Brand, 179 Brand management, 310 Budget, 50, 299 See also Capital budgeting Budget analysis, 286 Build, Operate, Transfer (BOT) concept, 282 Bureaucracy, 133 Business intelligence See Competitive intelligence Business models, 168–170 Business strategy, 48, 49, 205–214 finding a market niche, 203–204 generating a SFAS matrix, 201–203 mission and objectives review, 204–205 Porter’s competitive strategies, 205–213 SWOT, 200–203 Bypass attack, 298 C Capabilities, 164 Capital budgeting, 180–181 Captive companies, 229 Captive company strategy, 234 Carbon footprint, 126 Carbon-friendly products, 132 Carbon neutral environments, 106 Case analysis, 376–386 case situation research, 378–379 common-size statements, 383 economic measures, 384 financial analysis, 379–384 financial ratio analysis, 380–382 index of sustainable growth, 384 strategic audit, 379, 384–386, 391–393 Z-value formula, 383–384 Cash cows, 237 Cash flow, 379 Cautious profit planner, 326 Cell phones, 179 Cellular organization, 312 Center of excellence, 242 Center of gravity, 171 Certified Emissions Reductions (CERs), 379 Change management programs, 37 Cheating, 110 Chief Executive Officer (CEO), 89–94 company performance and, 93 compensation of, 368 evaluating, 356–357 executive succession, 328–329 turnover, 355 type of, and company strategy, 325 Chief Operating Officer (COO), 89 Chief Risk Officer, 352 Clayton Act, 82 Climate change, 257, 355 risk categories (for companies), 131–133 Cloud computing, 130 Clusters, 168 Code of ethics, 87, 114–115 Codetermination, 82 College textbooks, 210–211 Collusion, 213–214 Commodities, 140 Common-size statements, 369, 383 Common thread, 205 Communication, 335–336 Company information services, 378–379 Compensatory justice, 116 Competition, 140 See also Hypercompetition clusters, 168 competitive intelligence (CI) and, 148–149 competitors defined, 151–152 diversity of rivals, 140 industry evolution and, 142 monitoring, 151–152 rivalry among existing firms, 139–140 Competitive advantage gaining, 167–168 sustaining, 166–167 Competitive intelligence (CI), 148–152 evaluating, 150 monitoring competitors, 151–152 sources of, 149–151 Competitive scope, 206 Competitive strategies, 48, 205–213 hypercompetition and sustainability, 211–212 industry structure and, 209–210 issues, 208–209 risks, 208 I-6 Z03_WHEE7290_15_GE_SIDX.indd 7/28/17 6:41 PM www.downloadslide.net Complementor, 141 Computer industry, 54–55 Computer tablets, 40 Concentration, 226–229, 325–326 horizontal growth, 229, 231 vertical growth, 226–228, 231 Concentric diversification, 230–231 Concurrent engineering, 185 Concurrent sourcing, 227 Conflict of interest, 79 Conglomerate diversification, 231 Conglomerate structure, 175 “Conscious parallelism,” 214 Consensus, 270 Consolidated industry, 142, 209 Consolidation, 234 Constant dollars, 384 Continuous systems, 183 Contraction, 234 Controls, types of, 349–351 Control system guidelines, 358 Conventional level, 113 Cooperative contractual relationships, 229 Cooperative strategies, 48, 213–217 collusion, 213–214 strategic alliances, 214 Co-opetition, 218 Coordinated strategies, 300 Core rigidity, 165 Corporate brand, 179 Corporate culture, 175–176 communication and, 318, 334–335 managing, 331–336 policy, 271 strategic choice and, 268 strategy-culture compatibility assessment, 333–334 Corporate development stages, 302–307 beyond SBUs, 306 blocks to changing, 306–307 divisional structure, 305 functional structure, 305 simple structure, 303–305 Corporate governance avoiding improvements, 88 board of directors and (See Board of directors) defined, 73 evaluating, 87–88 impact of Sarbanes–Oxley Act on, 85–88 improving, 87 top management and, 89–93 trends, 88–89 Corporate parenting, 224, 240–242 Corporate performance See Performance measurement Corporate reputation, 180 Corporate scandals, 73, 85, 94 Corporate scenarios, 264–269 Z03_WHEE7290_15_GE_SIDX.indd S UBJECT I NDEX Corporate social responsibility (CSR), 102, 105 See also Social responsibility Corporate strategy, 48, 49 corporate parenting, 224, 240–242 defined, 224 directional strategies, 224–235 horizontal strategy, 242 multipoint competition, 242–243 portfolio analysis, 224, 235–240 retrenchment strategies, 233–235 stability strategies, 232–233 Corporate value-chain analysis, 172–173 Corruption, 74 Cost focus, 206, 207 Cost leadership, 206–208 Counterfeiting, 360–361 Crisis of autonomy, 305 Crisis of control, 305 Crisis of leadership, 304 “Critical mass,” 225 Cross-functional work teams, 185 Cross-impact analysis (CIA), 153 Cultural integration, 175 Cultural intensity, 175 Cultural norms and values, 110 Cultural relativism, 112 Cultural trends, 134 Currency convertibility, 134 Customer satisfaction, 349 Customer service, 33 Customer solutions model, 168 Cycle of decline, 235 D Dashboard software, 349 Debt-elimination scams, 109 Decision making ethical, 109–116 strategic, 53–56 Deculturation, 320, 336 De Facto industry standard model, 169 Defenders, 146 Defensive tactics, 298–299 360-degree appraisal, 259 Delphi technique, 153 Demographic trends, 128 Deregulation, 36 Devil’s advocate, 270 Diagnostic imaging equipment, 44 Dialectical inquiry, 270 Differentiation, 206–207, 300, 302 Differentiation focus, 206, 208 Differentiation strategy, 207 Dimensions of national culture, 323, 336 Direct interlocking directorate, 82 Directional strategy, 224-205 controversies in, 231–232 growth strategies, 225–231 “Dirty hands problems,” 117 I-7 Discretionary responsibilities, 103 Distinctive competencies, 165 Distributive justice, 116 Diverse workforce, 259 Diversification, 225 concentric (related), 230–231 conglomerate (unrelated), 231 controversies in, 231 Divestment strategy, 234 Divisional performance measures, 358 Divisional structure, 174, 305 Dodd–Frank financial reform law, 90 Do everything strategy, 263 Dogs (products), 237 Downsizing, 311–312, 330 Downstream value chains, 170 Due care, 74 Dynamic capabilities, 164, 211 E Earnings at risk (EAR), 352 Earnings guidance, 364 Earnings per share (EPS), 348, 353 E-books, 241 Ecological forces, 135 Economic forces, 125, 135 Economic indicators, 371, 385 Economic measures, 370–371, 384 Economic responsibilities, 103 Economic value added (EVA), 354 Economies of scale, 139, 142, 184, 300 Economies of scope, 173, 300 EDGAR database, 365, 378 EFAS See External factors analysis summary (EFAS) Efficiency model, 169 80/20 rule, 366 Electric cars, 238 Electric utility industry, 350 Electronic networking, 130 Eleos Foundation, 113 Emissions trading program, 132 Employees, 185 See also Human resources; Staffing Employee Stock Ownership Plans (ESOPs), 82 Encirclement, 298 Energy efficiency, 287 Engineering R&D, 181 Enterprise resource planning (ERP), 189, 362 Enterprise risk management (ERM), 352 Enterprise strategy, 107 Entrepreneurial mode, 54 Entrepreneurial model, 169 Entry barrier, 139 Environmental awareness, 129 Environmental efficiency, 41 Environmental responsibility, 40 7/28/17 6:41 PM www.downloadslide.net I-8 S UBJECT IN D E X Environmental scanning, 44–46 See also Competitive intelligence; Forecasting; Industry analysis checklist (strategic audit), 154 defined, 124–125 ecology, 131–132 economics, 131 external factors analysis summary, 154–156 external strategic factors, identifying, 137 international societal considerations, 134 natural environment, 125 political-legal trends, 133 scanning system creation, 136 sociocultural trends, 128 STEEP analysis, 127–137 task environment, 136–137 technology, 130–131 Environmental standards, 287 Equilibrium periods, 52 E-receipts, 355 ERP See Enterprise resource planning (ERP) Ethical behavior code of ethics, 114–115 individual rights approach to, 115, 116 views, 115–116 Ethical decision making, 109–116 Ethical responsibilities, 103, 104 Ethics, 115 Evaluation and control process, 51, 56, 346–369 aligning incentives, 367–369 control system guidelines, 366 performance measurement, 348–362 strategic information systems, 362–364 Executive succession, 328–329 Executive type, 325 Exit barriers, 140 Expense centers, 358–359 Experience curve, 142, 184, 237 Expert opinion, 153 Explicit knowledge, 166 Exporting, 280 External environment (in SWOT analysis), 45, 63–64 External factors analysis summary (EFAS), 154–156 Externally oriented (strategic) planning, 35–36 Extranets, 189 Extrapolation, 152–153 F Family directors, 80 Farming, 131 Z03_WHEE7290_15_GE_SIDX.indd Feedback/learning process, 52 Financial analysis, 365–371, 379–384 Financial crisis (global), 39 Financial leverage, 180 Financial performance, socially responsible actions and, 104 Financial planning, 35 Financial ratio analysis, 380–382 Financial risk, 215 Financial statements, 378 Financial strategy, 252–253 First mover, 297 Five-year plans, 35 Flanking maneuver, 298 Flexible manufacturing, 184 Focus, 206, 209 Follow the leader strategy, 263 Follow-the-sun management, 260 Forecast-based planning, 35 Forecasting assumption errors, 152 techniques, 152–154 Forward integration, 227 Fragmented industry, 142, 209 Franchising, 280–281 Free cash flow, 353 “Frogs in boiling water” analogy, 112 Frontal assault, 297–298 Full integration, 227 Functional knowledge, 43 Functional performance measures, 358 Functional strategy, 49, 250–260 financial strategy, 252–253 HRM strategy, 259 information technology strategy, 260 logistics strategy, 259 marketing strategy, 250–252 operations strategy, 254–256 purchasing strategy, 256–258 research and development (R&D) strategy, 253–254 Functional structure, 174, 305 G Generally Accepted Accounting Principles (GAAP), 287 Genetically altered organisms, 131 Geographic-area structure, 315 Global expansion, 230, 280 Global industries, 143 Globalization, 37–39 board membership and, 81 Global MNC, 288 Global supply chains, 132 Global warming, 126, 132 Goal displacement, 365–366 Goals, 47 Goodwill, 104, 105 Government regulations, 132, 139, 149 Grand strategies, 225 Green-field development, 281 Grocery business, 33–34 Gross domestic product (GDP), 370, 384 Growth strategies, 225–231 concentration, 226–229 diversification, 229–231 Guardians, 327, 342 Guerilla warfare, 298 H Health consciousness, 129 Hierarchy of strategy, 49 Historical comparisons, 286, 358 Hit another home run strategy, 263 Home appliance industry, 140, 142, 211–212 Horizontal growth, 229 achieving, 229 controversies in, 231 international entry options for, 280–282 Horizontal integration, 229 Horizontal strategy, 242 Human assets, 164 Human diversity, 187 Human resource management (HRM) strategy, 259 Human resources, 185–187 See also Staffing quality of work life/human diversity, 187 teams and, 185–186 union relations and temporary/ part-time workers, 186 Human rights, 134 Hurdle rate, 51, 180–181 Hypercompetition, 146–147 I Idealists, 327, 342 Imitability, 166 Index of sustainable growth, 370, 384 Indirect interlocking directorate, 82 Individual rights approach to ethical behavior, 116 Industrial espionage, 150–151 Industry See also specific industry consolidated, 142 defined, 138 evolution of, 142 fragmented, 142 global, 143 multidomestic, 142 regional, 144 Industry analysis, 138 buyer bargaining power, 141 complementary industry power, 141–142 defined, 124–125 7/28/17 6:41 PM www.downloadslide.net hypercompetition, 146–147 industry evolution, 142 industry matrix, 147–148 international industry categorization, 142–144 international risk assessment, 144 Porter’s approach to, 138–142 rivalry among firms, 139–140 strategic groups, 144–145 strategic types, 145–146 supplier bargaining power, 141 threat of new entrants, 139 threat of substitute products/ services, 140 Industry information services, 378–379 Industry matrix, 147–148 Industry scenario, 154, 264 Industry value-chain analysis, 170–172 Inflation, 370, 382 Information services, 364–365, 378–379 Information systems/technology, 182 performance impact, 188–189 supply chain management, 189–190 Information technology strategy, 260 Innovation, 38, 39–40 defined, 39 product innovation, 146 sustainability and, 40 Input controls, 349 Inside directors, 77 Institutional investors, 81, 88 Institution theory, 42 Intangible assets, 164 Integration managers, 306, 324 Integration, of cultures, 319, 335–336 Interlocking directorates, 83 Intermittent systems, 183 Internal environment (in SWOT analysis), 45, 64–68 Internal scanning See Organizational analysis International development stages, 283–284 International employment, 284–286 International Financial Reporting Standards (IFRS), 286–287 International performance evaluation, 287 International transfer pricing, 287, 359 Internet, 39 businesses, 353 environmental scanning and, 149 marketing uses, 189 Internet browsers, 297 Internet search engines, 86 Intranets, 189 Inventory turnover ratio, 349 Investment centers, 359 ISO 20121, 188 ISO 14001 designation, 41 ISO 9000 Standards Series, 350 ISO 14000 Standards Series, 350 Z03_WHEE7290_15_GE_SIDX.indd S UBJECT I NDEX J Job characteristics, 314–315 Job design, 314–315 Job enlargement, 314–315 Job enrichment, 314–315 Job rotation, 314–315, 329 Joint ventures, 216, 229, 281, 283 Justice approach to ethical behavior, 116 K Keiretsu, 83 Key performance measures, 356–357 Key success factors, 147–148 Kohlberg’s levels of moral development, 113 L Labor unions, 186 Late mover, 297 Law, defined, 115 Lead director, 84–85 Leadership management by objectives, 338–339 Total Quality Management, 339 Leading, 315–325, 331–336 corporate culture, 331–336 Lean Six Sigma, 314 Learning organizations, 42–44 LEED certification, 38 Legal responsibilities, 103 Leveraged buyout, 252 Leverage ratios, 379, 381 Licensing, 229, 280, 299 Licensing arrangement, 216 Linkages, 172 Liquidation strategy, 235 Liquidity ratios, 379, 380 Litigation risk, with climate change, 132 Logical incrementalism, 55 Logistics strategy, 259 Long-term care facilities, 149 Long-term contracts, 229 Long-term evaluation method, 354, 367 Losing hand strategy, 263 Lower-cost strategy, 207 M Management See also Chief Executive Officer (CEO); Corporate governance; Top management audits, 357 contracts, 282 directors, 77 diversity, 329 evaluating, 356–357 Management by objectives (MBO), 338–339 Market-aggregated forecasts, 153 I-9 Market development strategy, 250 Marketing mix, 177–178 Marketing “pull,” 49 Marketing, strategic issues, 177–180 Marketing strategy, 250–252 Market location tactics, 297–298 Market niches, 203–204 Market position, 177 Market segmentation, 177 Market value added (MVA), 354–355 Mass customization, 129, 184 Matrix structures, 39, 308–310 Mature matrix, 310 Mergers, 71, 92, 176, 226, 231, 354–355 See also Acquisitions cultural differences and, 340 staffing and, 324 Millennials, 129 Mintzberg’s strategic decision making modes, 54–55 Misconduct, 109 Mission statements, 37, 46–47, 204–205 Moore’s Law, 182 Moral development, Kohlberg’s levels of, 113 Moral hazard, 79 Morality, 115 Moral relativism, 112 Mortgage fraud, 109 Mortgage lending, 39 Most-favored nation, 134 Multi-alliance management, 240 Multicomponent system/installed base model, 169 Multidomestic industries, 142 Multinational corporations (MNCs), 134, 142–143, 282–283, 287–288, 315 centralization vs decentralization, 315–316 international experience of executives, 286, 326 stages of, 283–284 turnkey operations, 282 Multipoint competition, 242–243 Mutual service consortium, 215–216 Myers-Briggs Type Indicator, 342 N Naïve relativism, 112 Nanotechnology, 130 Natural environment, 125 Near field communication (NFC), 362–363 Net present value (NPV), 267 Network structures, 310–312 New business creation, 301 New entrants, 139 NFC See Near field communication (NFC) 7/28/17 6:41 PM ... (2006); Concepts in Strategic Management and Business Policy, 10th edition (2006); Strategic Management and Business Policy, 10th edition; International Edition (2006); and Essentials of Strategic Management, ...FIFTEENTH EDITION GLOBAL EDITION Concepts in Strategic Management and Business Policy GLOBALIZATION, INNOVATION, AND SUSTAINABILITY A01_WHEE7290_15_GE_FM.indd 8/3/17 3:02 PM This page intentionally... intentionally left blank Concepts in Strategic Management and Business Policy FIFTEENTH EDITION GLOBAL EDITION GLOBALIZATION, INNOVATION, AND SUSTAINABILITY Thomas L Wheelen J David Hunger Alan