Dr jeffrey barczak california cosmetics

Case Study: Amazon

1. History of the company, development and growth through time

2. Identify internal strengths and weakness

3. External environment analysis (Porter model)

4. SWOT analysis.

5. Identify and explain the corporate strategy used

6. Business strategy used by the company

7. Organizational structure and control system. How they get adjusted to match company’s strategy

8. Recommendations

STRATEGIC M a n a g e m e n : ’

EDITION Concepts and Cases

PEARSON

A COM PETITIVE ADVANTAGE APPRO ACH

G LO B A L EDITION

Fred R. David Francis Marion University Florence, South Carolina

Forest R. David Strategic Planning Consultant

Boston Columbus Indianapolis New York San Francisco Upper Saddle River

Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto

Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

Brief Contents

Preface 15

Acknowledgments 25

About the Authors 27

Chapter 1 Strategic Management Essentials 37

THE COHESION CASE: ADIDAS GROUP-2013 58

Chapter 2 Outside-USA Strategic Planning 75

Chapter 3 Ethics/Social Responsibility/Sustainability 109

Chapter 4 Types of Strategies 131

Chapters Vision and Mission Analysis 169

Chapter 6 The Internal Audit 187

Chapter 7 The External Audit 225

Chapter 8 Strategy Generation and Selection 255

Chapter 9 Strategy Implementation 295

Chapter 10 Strategy Execution 331

Chapter 11 Strategy M onitoring 371

Appendix 1 Guidelines for Case Analysis 393

Glossary 662

Name Index 673

Subject Index 677

5

Contents

Preface 15

Acknowledgments 25

About the Authors 27

Chapter 1 Strategic Management Essentials 37

SINGAPORE AIRLINES: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 38

What Is Strategic Management? 39 Defining Strategic Management 39 ■ Stages of Strategic Management 39 ■ Integrating Intuition and Analysis 40 ■ Adapting to Change 41

Key Terms in Strategic Management 42 Competitive Advantage 42 ■ Strategists 43 ■ Vision and Mission Statements 44 ■ External Opportunities and Threats 44 ■ Internal Strengths and Weaknesses 44 ■ Long-Term Objectives 45 ■ Strategies 45 Annual Objectives 45 ■ Policies 46

The Strategic-Management Model 47 Benefits of Strategic Management 48

Financial Benefits 49 ■ Nonfinancial Benefits 50 Why Some Firms Do No Strategic Planning 50 Pitfalls in Strategic Planning 50 Guidelines for Effective Strategic Management 51 Comparing Business and Military Strategy 52 Special Note to Students 53

THE COHESION CASE: ADIDAS GROUP—2013 58 ASSURANCE OF LEARNING EXERCISES 69 Assurance of Learning Exercise 1 A: Assess Singapore Airline's Most Recent Quarterly Performance Data 69 Assurance of Learning Exercise 1B: Gathering Strategy Information onadidasAG 70 Assurance of Learning Exercise 1C: Getting Familiar with the Free Excel Student Template 70 Assurance of Learning Exercise 1D: Evaluating An Oral Student Presentation 71 Assurance of Learning Exercise 1E: Strategic Planning at Nestle 71 Assurance of Learning Exercise 1F: Interviewing Local Strategists 72

Chapter 2 Outside-USA Strategic Planning 75 HONDA: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 76

Multinational Organizations 79 Advantages and Disadvantages of International Operations 80 The Global Challenge 81

Globalization 82

Corporate Tax Rates Globally 82

United States versus Foreign Business Cultures 84 Communication Differences Across Countries 87 Business Culture Across Countries 87

Mexico— Business Culture 88 ■ Japan—Business Culture 89 ■ Brazil—Business Culture 90 ■ Germany— Business Culture 90 ■ Egypt—Business Culture 91 ■ China— Business Culture 92 ■ India— Business Culture 92 ■ Nigeria—Business Culture 93

Business Climate Across Countries/Continents 94 Union Membership Across Europe 94 ■ African Countries 95 ■ China 97 ■ Philippines 99 ■ Taiwan 99 ■ India 99 ■ Germany 100 ■ Mexico 101

Special Note to Students 102 ASSURANCE OF LEARNING EXERCISES 104 Assurance of Learning Exercise 2A: The adidas Group wants to enter Africa. Help them. 104 Assurance of Learning Exercise 2B: Assessing Differences in Culture Across Countries 105 Assurance of Learning Exercise 2C: Honda Motor Company wants to enter the Vietnamese market. Help them. 105 Assurance of Learning Exercise 2D: Does My University Recruit in Foreign Countries? 106

Chapter 3 Ethics/Social Responsibility/ Sustainability 109

Business Ethics 110 NESTLE: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 110 Code of Business Ethics 112 ■ An Ethics Culture 113 ■ Whistle-Blowing 113 ■ Bribes 114 ■ Workplace Romance 115

Social Responsibility 117 Social Policy 118 ■ Social Policies on Retirement 118

Environmental Sustainability 119 What Is a Sustainability Report? 120 ■ Lack of Standards Changing 120 ■ Managing Environmental Affairs in the Firm 121 ■ IS0 14000/14001 Certification 122 ■ Wildlife 122 ■ Solar Power 123

Special Note to Students 124 ASSURANCE OF LEARNING EXERCISES 126 Assurance of Learning Exercise 3A: Sustainability and Nestle 126 Assurance of Learning Exercise 3B: How Does My Municipality Compare To Others on Being Pollution-Safe? 127 Assurance of Learning Exercise 3C: Compare adidas AG versus Nike on Social Responsibility 127 Assurance of Learning Exercise 3D: How Do You Rate adidas AG's Sustainability Efforts? 127 Assurance of Learning Exercise 3E: How Do You Rate Nestles Sustainability Efforts? 127 Assurance of Learning Exercise 3F:The Ethics of Spying on Competitors 128

7

8 CONTENTS

Chapter 4 Types of Strategies 131 Long-Term Objectives 132

The Nature of Long-Term Objectives 132 PETRONAS: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 132 Financial versus Strategic Objectives 133 ■ Not Managing by Objectives 134

Types of Strategies 134 Levels of Strategies 136

Integration Strategies 137 Forward Integration 137 ■ Backward Integration 139 ■ Horizontal Integration 140

Intensive Strategies 141 Market Penetration 141 ■ Market Development 142 ■ Product Development 142

Diversification Strategies 143 Related Diversification 144 ■ Unrelated Diversification 145

Defensive Strategies 146 Retrenchment 146 ■ Divestiture 147 ■ Liquidation 148

Michael Porter's Five Generic Strategies 149 Cost Leadership Strategies (Type 1 and Type 2) 149 ■ Differentiation Strategies (Type 3) 151 ■ Focus Strategies (Type 4 and Type 5) 152 ■ Strategies for Competing in Turbulent, High-Velocity Markets 153

Means for Achieving Strategies 153 Cooperation Among Competitors 153 ■ Joint Venture and Partnering 154 ■ Merger/Acquisition 155 ■ Private-Equity Acquisitions 157 ■ First Mover Advantages 157 ■ Outsourcing and Reshoring 158

Strategic Management in Nonprofit and Governmental Organizations 159

Educational Institutions 159 ■ Medical Organizations 160 ■ Governmental Agencies and Departments 160

Strategic Management in Small Firms 161 Special Note to Students 161

ASSURANCE OF LEARNING EXERCISES 164 Assurance of Learning Exercise 4A: Market Development: Petronas 164 Assurance of Learning Exercise 4B: Alternative Strategies for Petronas 164 Assurance of Learning Exercise 4C: Private-Equity Acquisitions 164 Assurance of Learning Exercise 4D: The strategies of adidas AG: 2013-2015 165 Assurance of Learning Exercise 4E: Lessons in Doing Business Globally 165 Assurance of Learning Exercise 4F: Petronas 2013-2015 165 Assurance of Learning Exercise 4G: What Strategies Are Most Risky? 166 Assurance of Learning Exercise 4H: Exploring Bankruptcy 166 Assurance of Learning Exercise 41: Examining Strategy Articles 166 Assurance of Learning Exercise 4J: Classifying Some Strategies 166

Chapter 5 Vision and Mission Analysis 169 SAMSUNG: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 170

What Do We Want to Become? 171 What Is Our Business? 171

Vision versus Mission 173 ■ Vision Statement Analysis 173 « T h e Process of Developing Vision and Mission Statements 173

Importance (Benefits) of Vision and Mission Statements 174 A Resolution of Divergent Views 174

Characteristics of a Mission Statement 176 A Declaration of Attitude 176 ■ A Customer Orientation 177 ■ Mission Statement Components 177

Writing and Evaluating Mission Statements 179 Special Note to Students 180

ASSURANCE OF LEARNING EXERCISES 182 Assurance of Learning Exercise 5A: Examining Potential Changes Needed in a Firm's Vision/Mission 182 Assurance of Learning Exercise 5B: Studying an Alternative View of Mission Statement Content 183 Assurance of Learning Exercise 5C: Evaluating Mission Statements 183 Assurance of Learning Exercise 5D: Evaluating the Mission Statement of Under Armour—a Competitor of adidas AG 184 Assurance of Learning Exercise 5E: Selecting the Best Vision and Mission Statements in a Given Industry 184 Assurance of Learning Exercise 5F: Writing an Excellent Vision and Mission Statement for Novartis AG 185

Chapter 6 The Internal Audit 187 The Nature of an Internal Audit 188

VOLKSWAGEN: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 188 Key Internal Forces 189 ■ The Process of Performing an Internal Audit 190

The Resource-Based View 191 Integrating Strategy and Culture 192 Management 194

Planning 194 ■ Organizing 196 ■ Motivating 197 ■ Staffing 197 ■ Controlling 198 ■ Management Audit Checklist of Questions 198

Marketing 198 Customer Analysis 199 ■ Selling Products and Services 199 ■ Product and Service Planning 200 ■ Pricing 200 ■ Distribution 201 ■ Marketing Research 201 ■ CostI Benefit Analysis 202 ■ Marketing Audit Checklist of Questions 202

Finance and Accounting 202 Finance and Accounting Functions 202 ■ Basic Types of Financial Ratios 204

Breakeven Analysis 207 Finance and Accounting Audit Checklist 209

Production and Operations 209 Production and Operations Audit Checklist 211

Research and Development 211 Internal and External Research and Development 212 ■ Research and Development Audit 213

Management Information Systems 213 Management Information Systems Audit 213

Value Chain Analysis 213 Benchmarking 214

The Internal Factor Evaluation Matrix 216 Special Note to Students 218

ASSURANCE OF LEARNING EXERCISES 221 Assurance of Learning Exercise 6A: Develop a Corporate IFE Matrix for Volkswagen Group 221 Assurance of Learning Exercise 6B: Should VW Deploy More Resources or Less Outside of the USA? 222

CONTENTS 9

Assurance of Learning Exercise 6C: Apply Breakeven Analysis 222 Assurance of Learning Exercise 6D: Performing a Financial Ratio Analysis for adidas AG 222 Assurance of Learning Exercise 6E: Constructing an IFE Matrix for adidas AG 222 Assurance of Learning Exercise 6F: Analyzing Your College or University's Internal Strategic Situation 223

Chapter 7 The External Audit 225 The Nature of an External Audit 226

MICHELIN: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 226 Key External Forces 227 ■ The Process of Performing an External Audit 228

The Industrial Organization (I/O) View 229 Economic Forces 229 Social, Cultural, Demographic, and Natural Environment Forces 231 Political, Governmental, and Legal Forces 232

Labor Unions 234 Technological Forces 236 Competitive Forces 237

Competitive Intelligence Programs 238 ■ Market Commonality and Resource Similarity 239

Competitive Analysis: Porter's Five-Forces Model 239 Rivalry Among Competing Firms 240 ■ Potential Entry of New Competitors 240 ■ Potential Development of Substitute Products 241 ■ Bargaining Power of Suppliers 241 ■ Bargaining Power of Consumers 242

Sources of External Information 242 Forecasting Tools and Techniques 243

Making Assumptions 243 Industry Analysis: The External Factor Evaluation Matrix 244 The Competitive Profile Matrix 245 Special Note To Students 247

ASSURANCE OF LEARNING EXERCISES 250 Assurance of Learning Exercise 7A: Michelin and Africa: An External Assessment 250 Assurance of Learning Exercise 7B: Preparing a CPM for Michelin Based on Countries Rather than Companies 251 Assurance of Learning Exercise 7C: Develop Divisional Michelin EFE Matrices 251 Assurance of Learning Exercise 7D: Developing an EFE Matrix for adidas AG 251 Assurance of Learning Exercise 7E: The External Assessment 252 Assurance of Learning Exercise 7F: Developing a CPM for Michelin 252 Assurance of Learning Exercise 7G: Developing a CPM for adidas AG 252 Assurance of Learning Exercise 7H: Analyzing Your College or University's External Strategic Situation 253

Chapter 8 Strategy Generation and Selection 255

The Nature of Strategy Analysis and Choice 256 The Process of Generating and Selecting Strategies 256

UNILEVER: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 256

A Comprehensive Strategy-Formulation Analytical Framework 258 The Input Stage 259

The Matching Stage 259 The SWOT Matrix 259 The Strategic Position and Action Evaluation (SPACE) Matrix 262 The Boston Consulting Group (BCG) Matrix 267 The Internal-External (IE) Matrix 270 The Grand Strategy Matrix 273 The Decision Stage 275 The Quantitative Strategic Planning Matrix (QSPM) 275

Positive Features and Limitations of the QSPM 280 Cultural Aspects of Strategy Choice 280 The Politics of Strategy Choice 280 Governance Issues 281 Special Note to Students 284

ASSURANCE OF LEARNING EXERCISES 287 Assurance of Learning Exercise 8A: Should Unilever Penetrate Southeast Asia Further? 287 Assurance of Learning Exercise 8B: Perform a SWOT Analysis for Unilever's Global Operations 288 Assurance of Learning Exercise 8C: Preparing a BCG Matrix for Unilever 288 Assurance of Learning Exercise 8D: Developing a SWOT Matrix for adidas AG 288 Assurance of Learning Exercise 8E: Developing a SPACE Matrix for adidas AG 289 Assurance of Learning Exercise 8F: Developing a BCG Matrix for adidas AG 289 Assurance of Learning Exercise 8G: Developing a QSPM for adidas AG 289 Assurance of Learning Exercise 8H: Developing a SWOT Matrix for Unilever 289 Assurance of Learning Exercise 81: Developing a SPACE Matrix for Unilever 290 Assurance of Learning Exercise 8J: Developing a BCG Matrix for your College or University 290 Assurance of Learning Exercise 8K: Developing a QSPM for a Company that You Are Familiar With 290 Assurance of Learning Exercise 8L: Formulating Individual Strategies 291 Assurance of Learning Exercise 8M: The Mach Test 291

Chapter 9 Strategy Implementation 295 The Nature of Strategy Implementation 296

ROYAL DUTCH SHELL: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 296

Current Marketing Issues 297 New Principles of Marketing 298

Market Segmentation 299 Retention-Based Segmentation 300 ■ Does the Internet Make Market Segmentation Easier? 302

Product Positioning/Perceptual Mapping 302 Finance and Accounting Issues 304

Acquiring Capital to Implement Strategies 305 ■ Projected Financial Statements 310 ■ Projected Financial Statement Analysis for Whole Foods Market 312 ■ Financial Budgets 313 ■ Company Valuation 315 ■ Deciding Whether to Go Public 319 ■ Research and Development (R&D) Issues 320

Management Information Systems (MIS) Issues 322 Business Analytics 322

Special Note to Students 323 ASSURANCE OF LEARNING EXERCISES 326 Assurance of Learning Exercise 9A: Preparing an EPS/EBIT Analysis for Royal Dutch Shell pic 326

10 CONTENTS

Assurance of Learning Exercise 9B: Developing a Product-Positioning Map for adidas AG 327 Assurance of Learning Exercise 9C: Performing an EPS/EBIT Analysis for adidas AG 327 Assurance of Learning Exercise 9D: Preparing Projected Financial Statements for adidas AG 327 Assurance of Learning Exercise 9E: Determining the Cash Value of adidas AG 328 Assurance of Learning Exercise 9F: Developing a Product-Positioning Map for My College 328 Assurance of Learning Exercise 9G: Do Banks Require Projected Financial Statements? 328

Chapter 10 Strategy Execution 331 The Nature of Strategy Implementation 332

ACCENTURE: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 332 Management Perspectives 334

Annual Objectives 335 Policies 337 Resource Allocation 339 Managing Conflict 339 Matching Structure with Strategy 340

The Functional Structure 341 ■ The Divisional Structure 342 ■ The Strategic Business Unit (SBU) Structure 345 ■ The Matrix Structure 346 ■ Some Do's and Don’ts in Developing Organizational Charts 348

Restructuring 350 Restructuring 350

Linking Performance and Pay to Strategies 351 Managing Resistance to Change 353 Creating a Strategy-Supportive Culture 354 Production and Operations Concerns When Implementing Strategies 355 Human Resource Concerns When Implementing Strategies 356

Employee Stock Ownership Plans (ESOPs) 358 ■ Balancing Work Life and Home Life 359 ■ Benefits of a Diverse Workforce 361 ■ Corporate Wellness Programs 361

Special Note to Students 363 ASSURANCE OF LEARNING EXERCISES 366 Assurance of Learning Exercise 10A: Developing an Organizational Chart for Accenture pic 366 Assurance of Learning Exercise 10B: Assessing Accenture's Philanthrophy Efforts 367 Assurance of Learning Exercise 10C: Revising adidas AG's Organizational Chart 367 Assurance of Learning Exercise 10D: Exploring Objectives 367 Assurance of Learning Exercise 10E: Understanding My University's Culture 368

Chapter 11 Strategy Monitoring 371 The Nature of Strategy Evaluation 372

BHP BILLITON: EXCELLENT STRATEGIC MANAGEMENT SHOWCASED 372 The Process of Evaluating Strategies 375

A Strategy-Evaluation Framework 376 Reviewing Bases of Strategy 376 ■ Measuring Organizational Performance 378 ■ Taking Corrective Actions 379

The Balanced Scorecard 381 Published Sources of Strategy-Evaluation Information 382 Characteristics of an Effective Evaluation System 383 Contingency Planning 384 Auditing 385 21st-Century Challenges in Strategic Management 386

The Art or Science Issue 386 ■ The Visible or Hidden Issue 386 ■ The Top-Down or Bottom-Up Approach 387

Special Note to Students 387 ASSURANCE OF LEARNING EXERCISES 390 Assurance of Learning Exercise 11 A: Evaluating BHP Billiton's Strategies 390 Assurance of Learning Exercise 11B: Preparing a Strategy-Evaluation Report for adidas AG 390 Assurance of Learning Exercise 11C: Preparing a Strategy-Evaluation Report for adidas AG 390 Assurance of Learning Exercise 11D: Evaluate My University's Strategies 390

Appendix 1 Guidelines for Case Analysis 393 What Is a Strategic-Management Case? 394 Guidelines for Preparing Case Analyses 394

The Need for Practicality 394 ■ The Need for Justification 394 ■ The Need for Realism 394 ■ The Need for Specificity 394 ■ The Need for Originality 395 ■ The Need to Contribute 395

Preparing a Case for Class Discussion 395 The Case Method versus Lecture Approach 395

The Cross-Examination 396 Preparing a Written Case Analysis 396

The Executive Summary 396 ■ The Comprehensive Written Analysis 396 ■ Steps in Preparing a Comprehensive Written Analysis 397

Making an Oral Presentation 397 Organizing the Presentation 397 ■ Controlling Your Voice 398 ■ Managing Body Language 398 ■ Speaking from Notes 398 ■ Constructing Visual Aids 398 ■ Answering Questions 398

Tips for Success in Case Analysis 399 Content Tips 399 ■ Process Tips 400 ■ Sample Case Analysis Outline 400 STEPS IN PRESENTING AN ORAL CASE ANALYSIS 401 Oral Presentation— Step 1: Introduction (2 minutes) 401 Oral Presentation—Step 2: Mission and Vision (4 minutes) 401 Oral Presentation—Step 3: Internal Assessment (8 minutes) 401 Oral Presentation—Step 4: External Assessment (8 minutes) 402 Oral Presentation—Step 5: Strategy Formulation (14 minutes) 402 Oral Presentation—Step 6: Strategy Implementation (8 minutes) 402 Oral Presentation—Step 7: Strategy Evaluation (2 minutes) 403 Oral Presentation—Step 8: Conclusion (4 minutes) 403

Glossary 662

Name Index 673

Subject Index 677

Cases Service Firms

1ẻ Ryanair 406 2. The Emirates Group 418

3. UPS 427 4. Amazon 438

5ế Netflix 450

6. Gap 462 7. Walt Disney 474 8. Staples Inc. 484

9. Office Depot Inc. 496 10. Domino's Pizza Inc. 505 11 ề Royal Caribbean Cruises 515

12. Carnival Corp. 524 13. JPMorgan Chase & Co. 535

Manufacturing Firms

14. Proctor and Gamble 546

15. Avon Products Inc. 556

16. Revlon 564

17. L'Oréal 575

18. Dr Pepper Snapple Group 583

19. The Coca-Cola Company 593

20. Starbucks 602

21. Pearson PLC 610

22. BMW 619

23ế Apple 626

24. Microsoft Corp. 636

25. Lenovo 645

26. Netgear 654

11

Welcome Forest, and Thank You:

• For joining me as a coauthor on this 15th edition • For preparing the Case Instructor's Manual for this textbook and five previous editions • For publishing many strategic management papers and articles with me and other authors • For your wise strategic-management counsel over many years as this textbook has evolved • For assisting students for many years through the Strategy Club (www.strategyclub.com) that now also

offers your free Excel Student Template • For developing an outstanding Case MyLab testing feature for this edition • For preparing the Chapter Instructor's Manual for this edition

http://www.strategyclub.com
Preface

Why Adopt This Text? This textbook is trusted around the world to provide managers the latest skills and concepts needed to effectively formulate and efficiently implement a strategic plan— a game plan, if you will— that can lead to sustainable competitive advantage for any type of business. The Association to Advance Collegiate Schools of Business (AACSB) increasingly advocates a more skills-oriented. practical approach in business books, which the David text provides, rather than a theory-based approach. This textbook meets all AACSB-International guidelines for the strategic-managcment course at both the graduate and undergraduate levels, and previ­ ous editions have been used at more than 500 colleges and universities around the world. We believe you will find this edition to be the best textbook available for communicating both the excitement and value of strategic management. Concise and exceptionally well orga­ nized. this text is now published in English. Chinese. Spanish, Thai. German, Japanese, Farsi, Indonesian, Indian, and Arabic. A version in Russian is being negotiated. Not only universi­ ties, but also hundreds of companies, organizations, and governmental bodies use this text as a management guide.

In contrast to many other strategic-management textbooks, the David book provides:

1. An effective process for developing a clear strategic plan, rather than simply presenting seminal theories in strategy, and

2. An effective model or flow for actually doing strategic planning.

Eric N. Sims, a professor w'ho in 2013 adopted the David book for his classes at Sonoma State University in California, says:

“I have read many strategy books. I am going to use the David book. What I like— to steal a line from Alabama coach Nick Saban— is your book teaches ‘a process.’ I believe at the end of your book, you can actually help a company do strategic planning. In contrast, the other books teach a number of near and far concepts related to strategy.”

A recent reviewer of this textbook says:

“One thing I admire most about the David text is that it follows the fundamental sequence of strategy formulation, implementation, and evaluation. There is a basic flow from vision/ mission to internal/external environmental scanning, to strategy development, selection, implementation, and evaluation. This has been, and continues to be, a hallmark of the David text. Many other strategy texts are more disjointed in their presentation, and thus confusing to the student, especially at the undergraduate level.”

New Chapter Features 1. The fifteenth edition is 40 percent new and improved from the prior edition. 2. Chapter 2, Outside-USA Strategic Planning, is expanded 30 percent with new coverage of

cultural and conceptual strategic-management differences across countries. Doing business globally has become a necessity in most industries. Nearly all strategic decisions today are affected by global issues and concerns.

3. Chapter 3, Ethics/Social Responsibility/Sustainability, is expanded 30 percent, provid­ ing extensive new coverage of ethics, workplace romance, and sustainability. This text emphasizes that “good ethics is good business.” Unique to strategic-management texts, the sustainability discussion is strengthened in this edition to promote and encourage firms to conduct operations in an environmentally sound manner. Respect for the natural environment has become an important concern for consumers, companies, society, and AACSB-International.

15

16 PREFACE

4. An updated Cohesion Case on adidas AG is provided, adidas is one of the most suc­ cessful, well-known, and best-managed global companies in the world. Students apply strategy concepts to adidas at the end of each chapter through brand new Assurance of Learning Exercises.

5. New or improved Assurance of Learning Exercises appear at the end of all chapters to apply chapter concepts. The exercises prepare students for strategic-management case analysis.

6. A new boxed insert at the beginning of each chapter showcases a company doing strategic management exceptionally well.

7. There are all new examples in all the chapters. 8. There is new narrative on strategic-management theory and concepts in every chapter. 9. On average, 10 new review questions are provided at the end of each chapter.

10. New color photographs bring this new edition to life and illustrate “the practice of strategic management.”

11. All current readings at the end of all chapters are new, as new research and theories of sem­ inal thinkers arc included. However, practical aspects of strategic management are center stage and the trademark of this text.

12. For the first time ever, the Excel Student Template is provided free at www.strategyclub. com to all students who use this textbook. Widely used for more than a decade by both students and businesses, and improved dramatically just for this edition, the free Excel Student Template enables students to more easily apply strategic-management concepts while engaging in assurance of learning exercises or case analysis. Using the Template, students can devote more time to applying strategy concepts and less time to the mechanics of formatting strategy matrices, tables, and PowerPoints.

13. Every sentence and paragraph has been scrutinized, modified, clarified, deleted, stream­ lined, updated, and improved to enhance the content and caliber of presentation.

New Case Features 1. All 26 cases are on student-friendly, well-known companies, thus exciting and effective for

applying strategy concepts; 2. All 26 cases are undisguised, featuring real organizations in real industries using real

names (nothing is fictitious in any case); 3. All 26 cases feature an organization and industry undergoing strategic change; 4. All 26 cases provide ample, excellent quantitative information, so students can prepare a

defensible strategic plan; 5. All 26 cases are written in a lively, concise writing style that captures the reader's

interest; 6. All 26 cases are “comprehensive,” focusing on multiple business functions, rather than a

single problem or issue; 7. All 26 cases include financial statements for the firm, so students can show the impact of a

proposed strategic plan; 8. All 26 cases provide an organizational chart and a vision and mission statement—

important strategy concepts; 9. Certain cases are supported by an excellent teacher’s note, provided to professors in a new

Case Instructor's Manual; 10. All 26 cases have been class-tested to ensure that they are interesting, challenging, and

effective for illustrating strategy concepts; 11. The 26 case companies provide an excellent mix of firms performing really well and some

performing very poorly, including service-based and manufacturing-based firms, and a good mix of small cap to large cap firms.

12. All 26 case companies have excellent websites in English that provide detailed financial information, history, sustainability statements, ethics statements, and press releases, so students can easily access current information to apply strategy concepts.

http://www.strategyclub
PREFACE 17

13. Certain cases are written by the authors, to ensure maximum control and effectiveness in applying strategic-management concepts through case analysis.

14. A Case MyLab testing feature (for 12 cases) has been carefully developed and designed specifically to apply strategic-management concepts through case analysis. The Case MyLab product assures that the cases apply the concepts, simplifies grading for professors, and achieves AACSB’s key assurance of learning objectives— even in purely or partly on­ line class settings. The new Case MyLab testing feature enables professors to use the cases to monitor student learning of strategy concepts, as revealed in the Concepts by Cases Matrix given below.