Pak sweets managing a diverse workforce

Preface

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differently and to work differently—including working col- laboratively toward outstanding results.

True leadership—from your boss as well as from you— inspires collaboration, which in turn generates results that are good for you, your employer, your customer, and all the people involved.

As Always, Currency and Variety in the 13th Edition It goes without saying that this textbook, in its 13th edition, remains on the cutting edge of topical coverage, updated throughout with both current business examples and recent management research. We continue to emphasize real results, sustainability, and diversity, themes on which we were early and remain current leaders.

While still organizing the chapters around the clas- sic management functions, we modernize those functions with a far more dynamic orientation. Looking constantly at change and the future, we describe the management func- tions as Delivering Strategic Value (for Planning), Building a Dynamic Organization (for Organizing), Mobilizing People (for Leading), and last but hardly least, Learning and Changing (for Controlling).

Special Features Every chapter offers a fascinating and useful portfolio of spe- cial boxed features that bring the subject matter to life in real time:

1. Management in Action, a hallmark feature, presents unfolding contemporary three-part cases about today’s business leaders and companies. The first part, “Manager’s Brief,” encourages students at the start of each chapter to begin thinking about one or more of that chapter’s major themes in the context of the current business scene. For example, Chapter 1 introduces Facebook’s Mark Zuckerberg and some of the challenges his company faces. The second Management in Action element, “Progress Report,” appears about halfway through each chapter and incorporates addi- tional chapter themes into the narrative. At each stage of this unfolding feature, we offer suggestions or questions for classroom discussion, in-class group work, or simply reflec- tion. Closing out the Management in Action three-part series is “Onward,” at the end of each chapter, which distills key aspects of the chapter and challenges students with questions for further consideration. Chapter 1’s closing “Onward” seg- ment reflects on what it might be like to work at Facebook.

2. Social Enterprise boxes offer examples illustrating chapter themes from outside the private sector. Many students are deeply interested in social entrepreneurs and enterprises, inherently and for future employment possi- bilities. Examples include: “Ashoka’s Bill Drayton, Pioneer of Social Entrepreneurship” (Chapter 1), “Are Business School Graduates Willing to Work for Social Enterprises?”

(Chapter 10), and “Piramal Sarvajal Provides Clean Water via ‘Water ATMs,’” (Chapter 17).

3. Multiple Generations at Work boxes discuss chapter themes from multigenerational perspectives, based on data rather than stereotypes, with a goal of strengthening what too often are difficult workplace relationships. Examples include: “Are ‘Portfolio Careers’ the New Normal?” (Chapter 2), “Crowdsourcing: An Inexpensive Source of Creative Ideas” (Chapter 3), and “Tech-Savvy Gen Z Is Entering the Workforce” (Chapter 17).

4. The Digital World feature offers unique examples of how companies and other users employ digital/social media in ways that capitalize on various ideas in each chapter. Students of course will relate to the social media but also learn of interesting examples and practice that most did not know before. Instructors will learn a lot as well!

That’s the big picture. We believe the management sto- ries in the boxed features light up the discussion and con- nect the major themes of the new edition with the many real worlds students will enter soon.

Up next is just a sampling of specific changes, updates, and new highlights in the 13th edition—enough to convey the wide variety of people, organizations, issues, and man- agement challenges represented throughout the text.

Chapter 1 • New Management in Action about Mark Zuckerberg of

Facebook.

• New Social Enterprise about Bill Drayton of Ashoka.

• New example of Yum! Brands having 43,000 restaurants in 135 countries.

• New Exhibit 1.1: “Staying Ahead of the Competition.”

• New example of entrepreneurial college students pitch- ing sustainable business ideas.

• New passage about artificial intelligence simplifying human-technology interfaces.

• New example of Quicken Loans Rocket Mortgage appli- cations taking minutes to complete.

• New passage about Facebook entering the job posting space to compete against LinkedIn.

Chapter 2 • New Management in Action about Jeff Bezos creating

Amazon’s organizational environment.

• New Multiple Generations at Work about “portfolio careers” becoming the new normal.

• New Social Enterprise about the Paris Agreement and combating climate change.

• New example of Microsoft’s HoloLens teaching medical students about human anatomy.

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• New passage about Wells Fargo’s incentive system lead- ing to a major corporate scandal.

• New example about Amazon suing companies that sell false positive reviews on its site.

• Revised Exhibit 5.2: “Examples of Decisions Made under Different Ethical Systems.”

• New example about Nabisco’s utilitarian decision to lay off 1,200 workers at a Chicago plant.

• Updated Exhibit 5.3: “Current Ethical Issues in Business.”

• New Exhibit 5.6: “A Process for Ethical Decision Making.”

• New example about Starbucks building Leadership Energy and Environmental Design (LEED) stores in 20 countries.

Chapter 6 • New Management in Action about Alibaba’s evolution

to a global brand.

• New example of Harley-Davidson’s marketing of motor- cycles to riders in international markets.

• New example of Chinese companies purchasing U.S. firms and divisions like Starwood Hotels, Smithfield Foods, and GE’s appliance business.

• Updated Exhibit 6.1: “Top 10 Global Firms.”

• New example of a small business, AppIt, expanding internationally by acquiring a software development company in India.

• New example about the Philippines becoming a popular location for outsourcing.

• New passage about McDonald’s collaborating with an Indian entrepreneur to adapt its menu (e.g., “Chicken Maharajah Mac”) to the vegetarian country.

Chapter 7 • New Management in Action about Starbucks’ entrepre-

neurial beginnings.

• New example about 28 million small businesses generat- ing over half of all jobs in the U.S.

• Updated Exhibit 7.2: “Successful Entrepreneurs Who Started in Their 20s.”

• New examples of franchises including Jimmy John’s and Jazzercise.

• Updated Multiple Generations at Work: “Millennial Entre- preneurs Can Learn from Others with More Experience.”

• New passage about Barbara Nascimento, founder of The Traveller Tours in Portugal, describing how to start a business.

• New example of Gordon Logan, CEO of Sports Clips, leveraging the skills of a top management team.

• Revised Exhibit 2.5: “Potential Substitutes and Complements.”

• New example of AstraZeneca losing patent protection of its $5 billion product, Crestor.

• New passage on organizational challenges associated with acquisitions.

• New example of Target investing in “green chemistry innovation.”

Chapter 3 • New Management in Action about Uber’s questionable

decision making.

• New example of General Electric using data analytics to improve efficiencies of digital wind farms.

• Updated Exhibit 3.2: “Comparison of Types of Decisions.”

• New passage about National Geographic’s “Wanderlust” social media photo competition.

• New Exhibit 3.3: “The Phases of Decision Making.”

• New example about IDEO suggesting ways to encourage employee creativity.

• New Exhibit 3.8: “Managing Group Decision Making.”

• New example about Havenly crowdsourcing feedback on its pricing and new product ideas.

Chapter 4 • Updated Management in Action about Walt Disney

scripting its own success.

• Revised Exhibit 4.1: “Decision-Making Stages and Formal Planning Steps.”

• New passage about General Motors and Lyft forming an alliance to create a fleet of on-demand autonomous vehicles.

• Revised Exhibit 4.3: “Hierarchy of Goals and Plans.”

• New passage about Chipotle’s challenges with recent food-safety events.

• New Exhibit 4.5: “The Strategic Management Process.”

• New passage about Elon Musk committing to enable human travel to Mars.

• New example of the U.S. Environmental Protection Agency’s methane-to-energy projects.

Chapter 5 • New Multiple Generations at Work about Millennials

being bullish on business.

• New Social Enterprise about India’s Barefoot College, a college for the poor by the poor.

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• New example of the U.S. government considering major changes to the H-1B temporary visa program.

• New passage on companies settling discrimination law- suits brought by employees.

Chapter 11 • New Management in Action about diversity and inclu-

sion at Apple.

• Updated Social Enterprise about managing diversity at Change.org.

• Updated example about changing workforce demographics.

• Updated Exhibit 11.3: “Top Ten Most Powerful Women Executives.”

• New example of Kaiser Permanente, AT&T, and MasterCard continuing their strong commitment to diversity.

• Updated example of the number of women in leadership positions in S&P 500 companies.

• New example of percentage of individuals with disabili- ties who are employed.

• Updated Exhibit 11.6: “Some Top Executives of Color.”

Chapter 12 • Updated Management in Action about Indra Nooyi’s

leading PepsiCo to perform with purpose.

• New Social Enterprise about Elizabeth Hausler’s engi- neering of disaster-proof homes.

• New example of Richard Branson, CEO of Virgin Group, envisioning a world powered by renewable energy by 2050.

• New Exhibit 12.4: “Sources of Leader Power.”

• Updated example of famous leaders including Margaret Thatcher, Nelson Mandela, Julius Caesar, and George Washington.

• New example of servant leadership philosophies at Zappos, Whole Foods Market, and the Container Store.

• New example of how Cheryl Bachelder, CEO of Popeye’s Louisiana Kitchen, used active listening to increase store sales by 25 percent.

• New passages about lateral, intergroup, and shared leadership.

Chapter 13 • Updated Management in Action about what makes soft-

ware company, SAS, such a great place to work.

• Updated Multiple Generations at Work about Millennials wanting to fulfill higher-order needs.

• Updated Social Enterprise about giving veterans a renewed sense of purpose.

Chapter 8 • Updated Management in Action about leadership and

structural changes at General Motors.

• Updated Social Enterprise about Kiva’s approach to organizing.

• Updated Multiple Generations at Work about online networks replacing traditional hierarchies.

• New examples of Shake Shack, Microsoft, and Sanofi using top management teams.

• New Exhibit 8.2: “Examples of Differentiation.”

• New Exhibit 8.13: “A Network Organization.”

• New examples of how Southwest Airlines, MasterCard, SAP, and Target are integrating marketing and commu- nications functions.

• New example of how the Internal Revenue Service is organized around customer groups.

Chapter 9 • New passages about organizing around ordinary and

dynamic capabilities.

• New example of Canon’s core capability in innovative image technology.

• New example about Dr Pepper Snapple Group, Coca- Cola, and PepsiCo forming an alliance to cut by 25 percent the amount of sugar in their soft drinks by 2025.

• Revised Exhibit 9.2: “How I’s Can Become We’s.”

• New example of Walmart’s CEO trying to reduce bureaucracy while encouraging employees to take more initiative.

• New example of Capital One using predictive analytics to make credit card offers to customers.

• New examples of small and large batch technologies.

Chapter 10 • Updated Management in Action about Google’s ability

to hire top talent.

• Updated Social Enterprise about business school gradu- ates working for social enterprises.

• Updated Multiple Generations at Work about college students needing soft skills.

• New example about Kayak, Etsy, and W. L. Gore creat- ing unique organization cultures.

• New Exhibit 10.1: “An Overview of the HR Planning Process.”

• New examples about John Deere and Siemens Energy finding creative ways to train young employees through a combination of academic and hands-on training.

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• Updated Multiple Generations at Work about companies shifting to more frequent performance reviews.

• New passage about Chipotle Mexican Grill trying to cor- rect its food-safety challenges.

• New example of Home Depot using six sigma to improve customer checkout processes.

• New passage about the role of board members in rela- tion to governance of companies.

• New passage about feedback control and its relationship to employee performance.

• New example of Toyota asking “Why?” to identify root causes of problems.

Chapter 17 • New Management in Action about Elon Musk being an

innovator extraordinaire.

• New Social Enterprise about India-based Piramal Sarvajal providing clean water via “Water ATMs.”

• New Multiple Generations at Work about tech-savvy Gen Z entering the workforce

• New Exhibit 17.1: “Innovation Types with Examples.”

• New passage about retailers like Macy’s in New York attracting young shoppers to stores.

• New example of virtual health care for annual patient visits reducing costs.

• New example of biosensor patches being applied to patients’ skin to monitor vital signs.

• New passage about Google’s FaceNet research team winning a facial recognition competition.

Chapter 18 • Updated Management in Action about Shell Oil’s lead-

ers facing off with investors over climate change.

• Updated Multiple Generations at Work about Millennials being ready for the future of work.

• New example of Sears losing its dominance in retail.

• New example of world-class centers in San Francisco, London, Munich, Warsaw, and Shenzen.

• New Exhibit 18.3: “Reasons for Resistance to Change.”

• New example of a manager at John Deere implementing change in a gradual manner.

• New Exhibit 18.8: “Opportunity Is Finding Ways to Meet Customers’ Needs.”

• New passage about big data, Internet of Things, and arti- ficial intelligence combining to make cities smarter.

• New Exhibit 18.9: “Learning Cycle: Explore, Discover, Act.”

• New example of the U.S. Department of Homeland Security setting cyber security goals.

• New example of Colorado-based New Belgium Brewery engaging in environmental and sustainability initiatives.

• New passage about how Ryan LLC rewards its employ- ees with 12 weeks of paid pregnancy leave and paid 4-week sabbaticals.

• New passage about Menlo Innovations offering employ- ees creative nonmonetary rewards.

• Updated passages about extrinsic rewards, empower- ment, and quality of work life.

Chapter 14 • Updated Management in Action about self-managed

teams working at Whole Foods Market.

• New Social Enterprise about co-working becoming more popular.

• Updated Multiple Generations at Work about preparing for global virtual teamwork.

• New passage about Cisco Systems relying on employee teams to remain competitive.

• New Exhibit 14.6: “A Four-Stage Model of Dispute Resolution.”

• New example of parallel teams and team-based rewards being used by organizations.

Chapter 15 • New Management in Action about music-sharing plat-

form SoundCloud encouraging the free flow of informa- tion among employees.

• Updated Social Enterprise about when the message is the story.

• New example of company review sites like Glassdoor. com and Salary.com attracting negative posts from employees.

• Updated passage about digital communication and social media.

• Updated passage about communication flowing through all parts of organizations.

• New example of Hilcorp, an oil and gas exploration company, using open book management.

• Updated passage about upward communication and open-door policies.

Chapter 16 • New Management in Action about electronic monitor-

ing of employees' health to control costs.

• Updated Social Enterprise about using multiple ways to measure social impact.

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Many individuals contributed directly to our develop- ment as textbook authors. Dennis Organ provided one of the authors with an initial opportunity and guidance in textbook writing. Jack Ivancevich did the same for one of the other authors. John Weimeister has been a friend and adviser from the very beginning. Thanks also to Christine Scheid for so much good work on previous editions and for continued friendship.

Enthusiastic gratitude to the entire McGraw-Hill Education team, starting with director Mike Ablassmeir, who—and this is more than an aside—spontaneously and impressively knew Rolling Stone’s top three drummers of all time. Mike has long provided deep expertise and an informed perspective, not to mention friendship and managerial cool in everything we do. Not technically an author, Mike is most certainly an educator for us and for the instructors and students who learn from the products he leads.

Special thanks to teammates without whom the book would not exist, let alone be such a prideworthy product:

Jamie Koch: so helpful, resourceful, enthusiastic, fast, and on top of everything;

Christine Vaughan: knowledgeable, tech-savvy, patient, always available to help us navigate the online authoring platform;

Debbie Clare: so creative, energetic, always thinking of unique ideas, and encouraging us to engage in new ways of sharing how much the 13th edition means to us;

Claire Hunter: positive, patient, easily amused (thank- fully), amazingly effective at keeping us on track and focused;

Kerrie Carfagno: great depth and breadth, in both expe- rience and knowledge, thanks for teaching even more stu- dents about our digital world;

Elisa Adams: eloquent, passionate, expressive, and remarkably good at meeting (or beating) deadlines.

Thanks to you all for getting some of our jokes, for being polite about the others, and for being fun as well as talented and dedicated throughout the project.

Finally, we thank our families. Our parents, Jeanine and Tom Bateman, Clara and John Snell, and Rose and Art Konopaske, provided us with the foundation on which we have built our careers. They continue to be a source of great support. Our wives, Mary Jo, Marybeth, and Vania, were encouraging, insightful, and understanding throughout the process. Our children, Lauren, T.J., and James Bateman; Sara, Jack, and Emily Snell; and Nick and Isabella Konopaske, provided an unending source of inspiration for our work and our nonwork. Thank you.

Thomas S. Bateman Charlottesville, VA

Scott A. Snell Charlottesville, VA

Robert Konopaske San Marcos, TX

A Team Effort This book is the product of a fantastic McGraw-Hill team. Moreover, we wrote this book believing that we are part of a team with the course instructor and with students. The entire team is responsible for the learning process.

Our goal, and that of your instructor, is to create a posi- tive learning environment in which you can excel. But in the end, the raw material of this course is just words. It is up to you to use them as a basis for further reflection, deep learn- ing, and constructive action.

What you do with the things you learn from this course, and with the opportunities the future holds, counts. As a man- ager, you can make a dramatic difference for yourself and for other people. What managers do matters tremendously.

Acknowledgments This book could not have been written and published with- out the valuable contributions of many individuals.

Special thanks to Lily Bowles, Taylor Gray, and Meg Nexsen for contributing their knowledge, insights, and research. Thanks to Michael Dutch for his contributions to the Instructor’s Manual and PowerPoint Presentations, as well as providing insights whenever we call upon him.

Our reviewers over the last 12 editions contributed time, expertise, and terrific ideas that significantly enhanced the quality of the text. The reviewers of the 13th edition are

Germaine Albuquerque Essex County College

Derek B. Bardell Delgado Community College

Andrew A. Bennett Old Dominion University

Harry Bernstein Essex County College

Jennifer Blahnik Lorain County Community College

Karen Bridgett Essex County College

Angela Bruns Baton Rouge Community College

John Ephraim Butt University of North Carolina–Charlotte

Holly A. Caldwell Bridgewater College

Frank Carothers Somerset Community College

Robert Cote Lindenwood University

Darrell Cousert University of Indianapolis

Tony Daniel Shorter University

John T. Finley Columbus State University

Roy Lynn Godkin Lamar University

Dan Hallock University of North Alabama

Anne Kelly Hoel University of Wisconsin–Stout

Carrie S. Hurst Tennessee State University

Sridharan Krishnaswami Old Dominion University

Debra D. Kuhl Pensacola State College

Thomas Norman California State University

Shane Spiller Western Kentucky University

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In this ever more competitive environment, there are six essential types of performance on which the organization beats, equals,

or loses to the competition: cost, quality, speed, innovation, service, and sustainability. These six performance dimensions,

when done well, deliver value to the customer and competitive advantage to you and your organization.

Throughout the text, Bateman, Snell, and Konopaske remind students of these six dimensions and their impact on the bottom

line with marginal icons. This results-oriented approach is a unique hallmark of this textbook.

New questions in this edition further emphasize the bottom line. The Instructor’s Manual has answers to these questions.

Bottom Line

First Pages

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representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.

Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.

Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34

The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.

Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35

As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.

Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize

good customer service provide a critical

competitive advantage. Identify some excellent and poor customer service that

you have received.

FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images

EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and

delivering normal orders.

Willingness to meet emergency needs.

Merchandise delivered in good

condition.

Readiness to take back defective

goods and resupply quickly.

Availability of installation and

repair services and parts.

Service charges, whether free or

priced separately.

g

SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.

First Pages

The External and Internal Environments  Chapter 2 51

bat27644_ch02_038-071.indd 51 10/19/17 02:39 PM

representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.

Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.

Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34

The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.

Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35

As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.

Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize

good customer service provide a critical

competitive advantage. Identify some excellent and poor customer service that

you have received.

FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images

EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and

delivering normal orders.

Willingness to meet emergency needs.

Merchandise delivered in good

condition.

Readiness to take back defective

goods and resupply quickly.

Availability of installation and

repair services and parts.

Service charges, whether free or

priced separately.

g

SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.

First Pages

The External and Internal Environments  Chapter 2 51

bat27644_ch02_038-071.indd 51 10/19/17 02:39 PM

representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.

Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.

Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34

The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.

Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35

As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.

Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize

good customer service provide a critical

competitive advantage. Identify some excellent and poor customer service that

you have received.

FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images

EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and

delivering normal orders.

Willingness to meet emergency needs.

Merchandise delivered in good

condition.

Readiness to take back defective

goods and resupply quickly.

Availability of installation and

repair services and parts.

Service charges, whether free or

priced separately.

g

SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.

First Pages

The External and Internal Environments  Chapter 2 51

bat27644_ch02_038-071.indd 51 10/19/17 02:39 PM

representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.

Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.

Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34

The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.

Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35

As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.

Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize

good customer service provide a critical

competitive advantage. Identify some excellent and poor customer service that

you have received.

FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images

EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and

delivering normal orders.

Willingness to meet emergency needs.

Merchandise delivered in good

condition.

Readiness to take back defective

goods and resupply quickly.

Availability of installation and

repair services and parts.

Service charges, whether free or

priced separately.

g

SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.

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representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.

Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.

Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34

The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.

Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35

As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.

Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize

good customer service provide a critical

competitive advantage. Identify some excellent and poor customer service that

you have received.

FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images

EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and

delivering normal orders.

Willingness to meet emergency needs.

Merchandise delivered in good

condition.

Readiness to take back defective

goods and resupply quickly.

Availability of installation and

repair services and parts.

Service charges, whether free or

priced separately.

g

SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.

First Pages

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representatives before selling them to their customers, and industrial buyers, who buy raw materials (such as chemicals) before converting them into final products. Selling to inter- mediate customers is often called business-to-business (B2B) selling. Notice in these B2B examples that the intermediate customer eventually goes on to become a seller.

Like suppliers, customers are important to organizations for reasons other than the money they provide for goods and services. Customers can demand lower prices, higher qual- ity, unique product specifications, or better service. They also can play competitors against one another, as occurs when a car buyer (or a purchasing agent) collects different offers and negotiates for the best price. Customers want to be actively involved with their products, as when the buyer of an iPhone customizes it with ring tones, wallpaper, and a variety of apps.

Dell Inc. took customer input a step further by asking customers what they want the company to develop next. At Dell’s IdeaStorm website (www.ideastorm.com), visitors can post ideas and comments about products. One of IdeaStorm’s most enthusiastic customer- users became so involved with the community that he was hired as the project’s manager and helped expand the site’s customer interactions.34

The Internet empowers customers. It provides easy information about product features and pricing. In addition, Internet users informally create and share messages about a prod- uct, providing flattering free “advertising” at best or embarrassing and even erroneous bad publicity at worst. Companies try to use this to their advantage by creating opportunities for consumers and the brand to interact.

Another way companies connect with customers is through social media sites like LinkedIn Company Pages, which allows companies to invite individuals to join company- related groups. Online retailer Zappos uses LinkedIn to answer questions about its prod- ucts and the company’s culture. Similarly, Google+ Communities offers companies a way to interact with individuals who might be interested in their products or services while increas- ing its visibility and brand awareness.35

As we discussed in Chapter 1, customer service means giving customers what they want or need, the way they want it, the first time. This usually depends on the speed and depend- ability with which an organization can deliver its products. Exhibit 2.6 shows several actions and attitudes that contribute to excellent customer service.

Bottom Line In all businesses—services as well as manufacturing— strategies that emphasize

good customer service provide a critical

competitive advantage. Identify some excellent and poor customer service that

you have received.

FedEx partners with many health care companies to provide logistics of all types from factory floor to a patient’s front door. ©Bloomberg/Bloomberg/Getty Images

EXHIBIT 2.6 Actions and Attitudes = Excellent Customer ServiceSpeed of filling and

delivering normal orders.

Willingness to meet emergency needs.

Merchandise delivered in good

condition.

Readiness to take back defective

goods and resupply quickly.

Availability of installation and

repair services and parts.

Service charges, whether free or

priced separately.

g

SOURCE: Adapted from Kotler, P., Marketing Management: Analysis, Planning, Implementation and Control, 9th ed. Englewood Cliffs, NJ: Prentice Hall, 1990.

Q

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In CASE You Haven’t Noticed . . . Bateman, Snell, and Konopaske have put together an outstanding selection of case studies of various lengths that highlight companies’ ups and downs, stimulate learning and understanding, and challenge students to respond.

Instructors will find a wealth of relevant and updated cases in every chapter, using companies—big and small—that students will enjoy learning about.

CHAPTER UNFOLDING CASES

Each chapter begins with a “Management in Action: Manager’s Brief” section that describes an actual organizational situation, leader, or company. The “Manager’s Brief” is referred to again within the chapter in the “Progress Report” section, showing the student how the chapter material relates back to the company, situation, or leader highlighted in the chapter opener. At the end of the chapter, the “Onward” section ties up loose ends and brings the material full circle for the student. Answers to Management in Action section questions can be found in the Instructor’s Manual.

SOCIAL ENTERPRISE

Social Enterprise boxes have been updated in each chapter to familiarize students with this fast-growing sector. Answers to Social Enterprise questions are included in the Instructor’s Manual.

MULTIPLE GENERATIONS AT WORK

In each chapter, a Multiple Generations at Work box has been updated added to highlight some of the intergenerational challenges faced by managers and employees today.

THE DIGITAL WORLD

The Digital World feature offers unique examples of how companies and other users employ digital/social media in ways that capitalize on various ideas in each chapter.

CONCLUDING CASES

Each chapter ends with a case based on disguised but real companies and people that reinforces key chapter elements and themes.

SUPPLEMENTARY CASES

At the end of each part, an additional case is provided for professors who want students to delve further into part topics.

Outstanding Pedagogy Management: Leading & Collaborating in a Competitive World is pedagogically stimulating and is intended to maximize student learning. With this in mind, we used a wide array of pedagogical features—some tried and true, others new and novel:

END-OF-CHAPTER ELEMENTS

• Key terms are page-referenced to the text and are part of the vocabulary-building emphasis. These terms are defined again in the glossary at the end of the book.

• Retaining What You Learned provides clear, concise responses to the learning objectives, giving students a quick reference for reviewing the important concepts in the chapter.

• Discussion Questions, which follow, are thought-provoking questions on concepts covered in the chapter and ask for opinions on controversial issues.

• Experiential Exercises in each chapter bring key concepts to life so students can experience them firsthand.

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Assurance of Learning This 13th edition contains revised learning objectives and learning objectives are called out within the chapter where the content begins. The Retaining What You Learned for each chapter ties the learning objectives back together as well. And, finally, our test bank provides tagging for the learning objective that the question covers, so instructors will be able to test material covering all learning objectives, thus ensuring that students have mastered the important topics.

Comprehensive Supplements INSTRUCTOR’S MANUAL

The Instructor’s Manual was revised and updated to include thorough coverage of each chapter as well as time-saving features such as an outline, key student questions, class prep work assignments, guidance for using the unfolding cases, video supplements, and, finally, PowerPoint slides.

TEST BANK

The Test Bank includes more than 100 questions per chapter in a variety of formats. It has been revised for accuracy and expanded to include a greater variety of comprehension and application (scenario-based) questions as well as tagged with Bloom’s Taxonomy levels and AACSB requirements.

POWERPOINT PRESENTATION SLIDES

The PowerPoint presentation collection contains an easy-to-follow outline including figures downloaded from the text. In addition to providing lecture notes, the slides also include questions for class discussion as well as company examples not found in the textbook. This versatility allows you to create a custom presentation suitable for your own classroom experience.

McGraw-Hill Customer Experience At McGraw-Hill, we understand that getting the most from new technology can be challenging. That’s why our services don’t stop after you purchase our products. You can e-mail our product specialists 24 hours a day to get product training online. Or you can search our knowledge bank of frequently asked questions on our support website. For customer support, call 800-331-5094, submit a support request using our contact us form, http://mpss.mhhe.com/contact.php, or visit www.mhhe.com/support. One of our technical support analysts will be able to assist you in a timely fashion.

MANAGER’S HOT SEAT

This interactive, video-based application puts students in the manager’s hot seat, building critical thinking and decision-making skills and allowing students to apply concepts to real managerial challenges. Students watch as 21 real managers apply their years of experience when confronting unscripted issues such as bullying in the workplace, cyber loafing, globalization, intergenerational work conflicts, workplace violence, and leadership versus management. In addition, Manager’s Hot Seat interactive applications, featuring video cases and accompanying quizzes, can be found in Connect.

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CREATE

Instructors can now tailor their teaching resources to match the way they

teach! With McGraw-Hill Create, www.mcgrawhillcreate. com, instructors can easily rearrange chapters, combine material from other content sources, and quickly upload and integrate their own content, such as course syllabi or teaching notes. Find the right content in Create by searching through thousands of leading McGraw-Hill textbooks. Arrange the material to fit your teaching style. Order a Create book and receive a complimentary print review copy in three to five business days or a complimentary electronic review copy via e-mail within one hour. Go to www.mcgrawhillcreate.com today and register.

TEGRITY CAMPUS

Tegrity makes class time available 24/7 by automatically capturing

every lecture in a searchable format for students to review when they study and complete assignments. With a simple one-click start-and-stop process, you capture all computer screens and corresponding audio. Students can replay any part of any class with easy-to-use browser-based viewing on a PC or Mac. Educators know that the more students can see, hear, and experience class resources, the better they learn. In fact, studies prove it. With patented Tegrity “search anything” technology, students instantly recall key class moments for replay online or on iPods and mobile devices. Instructors can help turn all their students’ study time into learning moments immediately supported by their lecture. To learn more about Tegrity, watch a twominute Flash demo at http://tegritycampus.mhhe.com.

BLACKBOARD® PARTNERSHIP

McGraw-Hill Education and Blackboard have teamed up to simplify your life. Now you and your students can access Connect and Create right from within your Blackboard course—all with one single sign-on. The grade books are

seamless, so when a student completes an integrated Connect assignment, the grade for that assignment automatically (and instantly) feeds your Blackboard grade center. Learn more at www.domorenow.com.

McGRAW-HILL CAMPUSTM

McGraw-Hill Campus is a new one-stop teaching and learning experience available to users of any

learning management system. This institutional service allows faculty and students to enjoy single sign-on (SSO) access to all McGraw-Hill Higher Education materials, including the award-winning McGraw-Hill Connect platform, from directly within the institution’s website. With McGraw-Hill Campus, faculty receive instant access to teaching materials (e.g., eTextbooks, test banks, PowerPoint slides, animations, learning objectives, etc.), allowing them to browse, search, and use any instructor ancillary content in our vast library at no additional cost to instructor or students. In addition, students enjoy SSO access to a variety of free content (e.g., quizzes, flash cards, narrated presentations, etc.) and subscription-based products (e.g., McGraw-Hill Connect). With McGraw-Hill Campus enabled, faculty and students will never need to create another account to access McGraw-Hill products and services. Learn more at www.mhcampus.com.

ASSURANCE OF LEARNING READY

Many educational institutions today focus on the notion of assurance of learning, an important element of some accreditation standards. Management: Leading & Collaborating in a Competitive World is designed specifically to support instructors’ assurance of learning initiatives with a simple yet powerful solution. Each test bank question for Management: Leading & Collaborating in a Competitive World maps to a specific chapter learning objective listed in the text. Instructors can use our test bank software, EZ Test, to easily query for learning objectives that directly relate to the learning outcomes for their course. Instructors can then use the reporting features of EZ Test to aggregate student results in similar fashion, making the collection and presentation of assurance of learning data simple and easy.

AACSB TAGGING

McGraw-Hill Education is a proud corporate member of AACSB International.

Understanding the importance and value of AACSB accreditation, Management: Leading & Collaborating in a Competitive World recognizes the curricula guidelines detailed in the AACSB standards for business

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McGRAW-HILL CUSTOMER EXPERIENCE GROUP CONTACT INFORMATION

At McGraw-Hill Education, we understand that getting the most from new technology can be challenging. That’s why our services don’t stop after you purchase our products. You can e-mail our Product Specialists 24 hours a day to get product training online. Or you can search our knowledge bank of Frequently Asked Questions on our support website. For Customer Support, call 800-331-5094 or visit www.mhhe.com/support. One of our Technical Support Analysts will be able to assist you in a timely fashion.

accreditation by connecting selected questions in the text and the test bank to the eight general knowledge and skill guidelines in the AACSB standards. The statements contained in Management: Leading & Collaborating in a Competitive World are provided only as a guide for the users of this product. The AACSB leaves content coverage and assessment within the purview of individual schools, the mission of the school, and the faculty. While the Management: Leading & Collaborating in a Competitive World teaching package makes no claim of any specific AACSB qualification or evaluation, we have within Management: Leading & Collaborating in a Competitive World labeled selected questions according to the eight general knowledge and skills areas.

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©McGraw-Hill Education

McGraw-Hill Connect® is a highly reliable, easy-to- use homework and learning management solution that utilizes learning science and award-winning adaptive tools to improve student results.

73% of instructors who use Connect

require it; instructor satisfaction increases by 28% when Connect

is required.

Over 7 billion questions have been answered, making McGraw-Hill

Education products more intelligent, reliable, and precise.

Using Connect improves retention rates by 19.8%, passing rates by 12.7%, and exam scores by 9.1%.

▪ Connect content is authored by the world’s best subject matter experts, and is available to your class through a simple and intuitive interface.

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Quality Content and Learning Resources

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▪ Connect will create a personalized study path customized to individual student needs through SmartBook®.

▪ SmartBook helps students study more efficiently by delivering an interactive reading experience through adaptive highlighting and review.

Homework and Adaptive Learning

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©Hero Images/Getty Images

▪ Connect Insight® generates easy-to-read reports on individual students, the class as a whole, and on specific assignments.

▪ The Connect Insight dashboard delivers data on performance, study behavior, and effort. Instructors can quickly identify students who struggle and focus on material that the class has yet to master.

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▪ Connect integrates with your LMS to provide single sign-on and automatic syncing of grades. Integration with Blackboard®, D2L®, and Canvas also provides automatic syncing of the course calendar and assignment-level linking.

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▪ If you’re looking for some guidance on how to use Connect, or want to learn tips and tricks from super users, you can find tutorials as you work. Our Digital Faculty Consultants and Student Ambassadors offer insight into how to achieve the results you want with Connect.

Trusted Service and Support

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Brief Contents

PREFACE VII

PART ONE FOUNDATIONS OF MANAGEMENT 2

1. Managing and Performing 2

2. The External and Internal Environments 38

3. Managerial Decision Making 72

PART TWO PLANNING: DELIVERING STRATEGIC VALUE 102

4. Planning and Strategic Management 102

5. Ethics, Corporate Responsibility, and Sustainability 130

6. International Management 158

7. Entrepreneurship 188

PART THREE ORGANIZING: BUILDING A DYNAMIC ORGANIZATION 222

8. Organization Structure 222

9. Organizational Agility 250

10. Human Resources Management 276

11. Managing the Diverse Workforce 310

PART FOUR LEADING: MOBILIZING PEOPLE 340

12. Leadership 340

13. Motivating for Performance 370

14. Teamwork 402

15. Communicating 428

PART FIVE CONTROLLING: LEARNING AND CHANGING 458

16. Managerial Control 458

17. Managing Technology and Innovation 488

18. Creating and Leading Change 516

Notes 547

Glossary/Subject Index 594

Name Index 620

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Actively Manage Your Relationship with Your Organization 20 Survive and Thrive 21

MANAGEMENT IN ACTION ONWARD 22 Key Terms 23

Retaining What You Learned 23

Discussion Questions 24

Experiential Exercises 25

CONCLUDING CASE 27

APPENDIX A 28

KEY TERMS 34

DISCUSSION QUESTIONS 35

CHAPTER 2

The External and Internal Environments 38 MANAGEMENT IN ACTION MANAGER’S BRIEF 39 The Macroenvironment 41

The Economy 41 Technology 42 Laws and Regulations 43

MULTIPLE GENERATIONS AT WORK 44 Demographics 44 Social Issues 45 Sustainability and the Natural Environment 45

SOCIAL ENTERPRISE 46 The Competitive Environment 46

Competitors 47 New Entrants 48 Substitutes and Complements 49 Suppliers 50 Customers 50

MANAGEMENT IN ACTION PROGRESS REPORT 52 Environmental Analysis 52

CHAPTER 1

Managing and Performing 2 MANAGEMENT IN ACTION MANAGER’S BRIEF 3 Managing in a Competitive World 4

Globalization 4 Technological Change 5 Knowledge Management 6 Collaboration across Boundaries 6

MULTIPLE GENERATIONS AT WORK 7

THE DIGITAL WORLD 7 Managing for Competitive Advantage 8

Innovation 8 Quality 8 Service 9 Speed 9 Cost Competitiveness 10 Sustainability 11 Delivering All Types of Performance 11

The Functions of Management 12 Planning: Delivering Strategic Value 12 Organizing: Building a Dynamic Organization 12

SOCIAL ENTERPRISE 13 Leading: Mobilizing People 13 Controlling: Learning and Changing 14 Performing All Four Management Functions 14

MANAGEMENT IN ACTION PROGRESS REPORT 15 Management Levels and Skills 15

Top-Level Managers 15 Middle-Level Managers 16 Frontline Managers 16 Working Leaders with Broad Responsibilities 16 Must-Have Management Skills 17

You and Your Career 18 Be Both a Specialist and a Generalist 19 Be Self-Reliant 19 Connect with People 20

Contents

PART ONE FOUNDATIONS OF MANAGEMENT

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Identifying and Diagnosing the Problem 77 Generating Alternative Solutions 77 Evaluating Alternatives 78 Making the Choice 80 Implementing the Decision 80

MANAGEMENT IN ACTION PROGRESS REPORT 81 Evaluating the Decision 82

The Best Decision 82 Barriers to Effective Decision Making 83

Psychological Biases 83 Time Pressures 84

THE DIGITAL WORLD 85 Social Realities 85

Decision Making in Groups 85 Potential Advantages of Using a Group 85 Potential Problems of Using a Group 86

Managing Group Decision Making 87 Leadership Style 87 Constructive Conflict 87 Encouraging Creativity 89 Brainstorming 90

MULTIPLE GENERATIONS AT WORK 91 Organizational Decision Making 91

Constraints on Decision Makers 91 Organizational Decision Processes 92 Decision Making in a Crisis 92

MANAGEMENT IN ACTION ONWARD 94 Key Terms 95

Retaining What You Learned 95

Discussion Questions 96

Experiential Exercises 96

CONCLUDING CASE 98

PART ONE SUPPORTING CASE 99

Environmental Scanning 53 Scenario Development 53 Forecasting 54 Benchmarking 54

Actively Managing the External Environment 55 Changing the Environment You Are In 55 Influencing Your Environment 55 Adapting to the Environment: Changing the Organization 56 Choosing an Approach 58

The Internal Environment of Organizations: Culture and Climate 58

Organization Culture 58

THE DIGITAL WORLD 60

MANAGEMENT IN ACTION ONWARD 61 Organizational Climate 61

Key Terms 62

Retaining What You Learned 62

Discussion Questions 64

Experiential Exercises 64

CONCLUDING CASE 67

APPENDIX B 68

KEY TERMS 70

CHAPTER 3

Managerial Decision Making 72 MANAGEMENT IN ACTION MANAGER’S BRIEF 73 Characteristics of Managerial Decisions 74

Lack of Structure 74 Uncertainty and Risk 75

SOCIAL ENTERPRISE 76 Conflict 76

The Phases of Decision Making 77

PART TWO PLANNING: DELIVERING STRATEGIC VALUE

CHAPTER 4

Planning and Strategic Management 102 MANAGEMENT IN ACTION MANAGER’S BRIEF 103 An Overview of Planning Fundamentals 104

The Basic Planning Process 104

SOCIAL ENTERPRISE 107

Levels of Planning 108 Strategic Planning 108 Tactical and Operational Planning 109 Aligning Tactical, Operational, and Strategic Planning 110

Strategic Planning 111

MANAGEMENT IN ACTION PROGRESS REPORT 112 Step 1: Establishing Mission, Vision, and Goals 113 Step 2: Analyzing External Opportunities and Threats 114

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THE DIGITAL WORLD 116 Step 3: Analyzing Internal Strengths and Weaknesses 116 Step 4: SWOT Analysis and Strategy Formulation 118

MULTIPLE GENERATIONS AT WORK 120 Step 5: Strategy Implementation 123 Step 6: Strategic Control 124

MANAGEMENT IN ACTION ONWARD 125 Key Terms 126

Retaining What You Learned 126

Discussion Questions 127

Experiential Exercises 128

CONCLUDING CASE 129

CHAPTER 5

Ethics, Corporate Responsibility, and Sustainability 130 MANAGEMENT IN ACTION MANAGER’S BRIEF 131

It’s a Big Issue 132 It’s a Personal Issue 133

MULTIPLE GENERATIONS AT WORK 134 Ethics 135

Ethical Systems 135 Business Ethics 137 The Ethics Environment 137

THE DIGITAL WORLD 140 Ethical Decision Making 141 Courage 142

MANAGEMENT IN ACTION PROGRESS REPORT 143 Corporate Social Responsibility 144

Contrasting Views 146 Reconciliation 146

The Natural Environment and Sustainability 147 A Risk Society 147

SOCIAL ENTERPRISE 148 Ecocentric Management 149 Environmental Agendas for the Future 150

MANAGEMENT IN ACTION ONWARD 151 Key Terms 151

Retaining What You Learned 152

Discussion Questions 153

Experiential Exercises 154

CONCLUDING CASE 155

CHAPTER 6

International Management 158 MANAGEMENT IN ACTION MANAGER’S BRIEF 159 Managing in Today’s (Global) Economy 160

International Challenges and Opportunities 160 Outsourcing and Jobs 162

The Geography of Business 163 Western Europe 164 Asia: China and India 165 The Americas 166

SOCIAL ENTERPRISE 167 Africa and the Middle East 167

Global Strategy 168 Pressures for Global Integration 168 Pressures for Local Responsiveness 169 Choosing a Global Strategy 170

MANAGEMENT IN ACTION PROGRESS REPORT 172 Entry Mode 173

Exporting 173 Licensing 174 Franchising 174 Joint Ventures 175 Wholly Owned Subsidiaries 175

Working Overseas 176 Skills of the Global Manager 177 Understanding Cultural Issues 177

MULTIPLE GENERATIONS AT WORK 180 Ethical Issues in International Management 181

THE DIGITAL WORLD 182