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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

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