Tiaa access lifecycle fund 2050 t4

Strategic Management

Based on the Case Study "Dell Inc.: Changing the Business Model" Case 9, starting on page 9-1, complete the following requirements:

Define synopsis and include a definition for which you will include a source and "properly" cite.
Write complete synopsis about the case.
Identify Dell's resources, capabilities, and core competencies
Write one finding of fact, with a fully justified recommendation/justification.
Students are required to citing this week's reading/chapters in the response as written on the syllabus.
Comment on at least two classmates' and instructor's postings.
Be sure to review the number of postings as also written on the syllabus.
For more details, please be sure to review the syllabus

Strategic Management Model

Gathering Information

Societal Environment: General forces

Natural Environment: Resources and

climate

Task Environment:

Industry analysis

Internal: Strengths and Weaknesses

Structure: Chain of command

Culture: Beliefs, expectations,

values

Resources: Assets, skills, competencies,

knowledge

External: Opportunities

and Threats

Developing Long-range Plans

Mission

Reason for existence Objectives

What results to accomplish by when

Strategies

Plan to achieve the mission & objectives

Policies

Broad guidelines for decision making

Environmental Scanning:

Strategy Formulation:

Feedback/Learning: Make corrections as needed

Putting Strategy into Action

Monitoring Performance

Programs

Activities needed to accomplish a plan

Budgets

Cost of the programs Procedures

Sequence of steps needed to do the job

Performance

Actual results

Strategy Implementation:

Evaluation and Control:

THIRTEENTH EDITION

Strategic Management

and Business Policy

TOWARD GLOBAL SUSTAINABILITY

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THIRTEENTH EDITION

Thomas L. Wheelen Formerly with University of Virginia Trinity College, Dublin, Ireland

J. David Hunger Iowa State University St. John’s University

Strategic Management

and Business Policy

TOWARD GLOBAL SUSTAINABILITY

with major contributions by

Kathryn E. Wheelen

Alan N. Hoffman Bentley University

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Library of Congress Cataloging-in-Publication Data Wheelen, Thomas L.

Strategic management and business policy : toward global sustainability / Thomas L. Wheelen, J. David Hunger. — 13th ed.

p. cm. Includes bibliographical references and index. ISBN-13: 978-0-13-215322-5 ISBN-10: 0-13-215322-X

1. Strategic planning. 2. Strategic planning—Case studies. 3. Sustainability. I. Hunger, J. David, II. Title.

HD30.28.W43 2012 658.4'012—dc22

2011013549

Senior Art Director/Supervisor: Janet Slowik Cover Designer: Liz Harasymcuk Cover Photo: Courtesy of NASA/Shutterstock Interior Designer: Maureen Eide Media Project Manager, Editorial: Denise Vaughn Media Project Manager, Production: Lisa Rinaldi Full-Service Project Management: Emily Bush, S4Carlisle Publishing Services Composition: S4Carlisle Publishing Services Printer/Binder: Courier/Kendalville Cover Printer: Lehigh-Phoenix Color/Hagerstown Text Font: 10/12 Times Roman

10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-215322-X ISBN 13: 978-0-13-215322-5

Dedicated to

KATHY, RICHARD, AND TOM BETTY, KARI AND JEFF, MADDIE AND MEGAN, SUZI AND NICK, SUMMER AND KACEY, LORI, MERRY AND DYLAN, AND WOOFIE (ARF!).

SPECIAL DEDICATION TO KATHRYN WHEELEN:

Kathryn has worked on every phase of the case section of this book. Until this edition, she also managed the construction of the Case Instructor’s Manual. She has done every job with a high level of dedication

and concern for both the case authors and the readers of this book.

NOLA AKALA

DAVID ALEVY

TARA ALGEO

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SARI ORLANSKY

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MOLLY SCHMIDT

CORRINA SCHULTZ

WHITNEY SEAGO

CHRISTIANA SERLE

MARTHA SERNAS

MARY SHAPIRO

BARBARA SHERRY

KEN SHIPBAUGH

DAVE SHULER

JESSICA SIEMINSKI

LEA SILVERMAN

AUTUMN SLAUGHTER

KRISTA SLAVICEK

SCOTT SMITH

ADRIENNE SNOW

LEE SOLOMONIDES

BEN STEPHEN

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JOHN SULLIVAN

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JOE VIRZI

AMANDA VOLZ

BRITNEY WALKER

MADELEINE WATSON

BEN WEBER

DANIEL WELLS

MARK WHEELER

LIZ WILDES

MICHELLE WILES

BRIAN WILLIAMS

ERIN WILLIAMS

CINDY WILLIAMSON

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HEATHER WRUBLESKY

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KACIE ZIN

DEDICATION vii

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Brief Contents

PART ONE Introduction to Strategic Management and Business Policy 1

C H A P T E R 1 Basic Concepts of Strategic Management 2 C H A P T E R 2 Corporate Governance 42 C H A P T E R 3 Social Responsibility and Ethics in Strategic Management 70

PART TWO Scanning the Environment 93

C H A P T E R 4 Environmental Scanning and Industry Analysis 94 C H A P T E R 5 Internal Scanning: Organizational Analysis 136

PART THREE Strategy Formulation 173

C H A P T E R 6 Strategy Formulation: Situation Analysis and Business Strategy 174 C H A P T E R 7 Strategy Formulation: Corporate Strategy 204 C H A P T E R 8 Strategy Formulation: Functional Strategy and Strategic Choice 236

PART FOUR Strategy Implementation and Control 269

C H A P T E R 9 Strategy Implementation: Organizing for Action 270 C H A P T E R 1 0 Strategy Implementation: Staffing and Directing 300 C H A P T E R 1 1 Evaluation and Control 328

PART FIVE Introduction to Case Analysis 363

C H A P T E R 1 2 Suggestions for Case Analysis 364

PART SIX WEB CHAPTERS Other Strategic Issues

W E B C H A P T E R A Strategic Issues in Managing Technology & Innovation W E B C H A P T E R B Strategic Issues in Entrepreneurial Ventures & Small Businesses W E B C H A P T E R C Strategic Issues in Not-For-Profit Organizations

PART SEVEN Cases in Strategic Management 1-1

GLOSSARY G-1

NAME INDEX I-1

SUBJECT INDEX I-7

ix

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Contents

Preface xxix

PART ONE Introduction to Strategic Management and Business Policy 1

C H A P T E R 1 Basic Concepts of Strategic Management 2 1.1 The Study of Strategic Management 5

Phases of Strategic Management 5

Benefits of Strategic Management 6

1.2 Globalization and Environmental Sustainability: Challenges to Strategic Management 7

Impact of Globalization 8

Impact of Environmental Sustainability 8

Global Issue: REGIONAL TRADE ASSOCIATIONS REPLACE NATIONAL TRADE BARRIERS 9

Environmental Sustainability Issue: PROJECTED EFFECTS OF CLIMATE CHANGE 12

1.3 Theories of Organizational Adaptation 12

1.4 Creating a Learning Organization 13

1.5 Basic Model of Strategic Management 14

Environmental Scanning 16

Strategy Formulation 17

Strategy Highlight 1.1: DO YOU HAVE A GOOD MISSION STATEMENT? 18

Strategy Implementation 21

Evaluation and Control 22

Feedback/Learning Process 23

1.6 Initiation of Strategy: Triggering Events 23

Strategy Highlight 1.2: TRIGGERING EVENT AT UNILEVER 24

1.7 Strategic Decision Making 25

What Makes a Decision Strategic 25

Mintzberg’s Modes of Strategic Decision Making 25

Strategic Decision-Making Process: Aid to Better Decisions 27

1.8 The Strategic Audit: Aid to Strategic Decision-Making 28

1.9 End of Chapter Summary 29

APPENDIX 1.A Strategic Audit of a Corporation 34

xi

C H A P T E R 2 Corporate Governance 42 2.1 Role of the Board of Directors 45

Responsibilities of the Board 45

Members of a Board of Directors 48

Strategy Highlight 2.1: AGENCY THEORY VERSUS STEWARDSHIP THEORY IN CORPORATE GOVERNANCE 50

Nomination and Election of Board Members 53

Organization of the Board 54

Impact of the Sarbanes-Oxley Act on U.S. Corporate Governance 55

Global Issue: CORPORATE GOVERNANCE IMPROVEMENTS THROUGHOUT THE WORLD 56

Trends in Corporate Governance 57

2.2 The Role of Top Management 58

Responsibilities of Top Management 58

Environmental Sustainability Issue: CONFLICT AT THE BODY SHOP 59

2.3 End of Chapter Summary 62

C H A P T E R 3 Social Responsibility and Ethics in Strategic Management 70 3.1 Social Responsibilities of Strategic Decision Makers 72

Responsibilities of a Business Firm 72

Sustainability: More than Environmental? 75

Corporate Stakeholders 75

Environmental Sustainability Issue: THE DOW JONES SUSTAINABILITY INDEX 76

Strategy Highlight 3.1: JOHNSON & JOHNSON CREDO 78

3.2 Ethical Decision Making 79

Some Reasons for Unethical Behavior 79

Strategy Highlight 3.2: UNETHICAL PRACTICES AT ENRON AND WORLDCOM EXPOSED BY “WHISTLE-BLOWERS” 80

Global Issue: HOW RULE-BASED AND RELATIONSHIP-BASED GOVERNANCE SYSTEMS AFFECT ETHICAL BEHAVIOR 81

Encouraging Ethical Behavior 83

3.3 End of Chapter Summary 86

Ending Case for Part One: BLOOD BANANAS 90

PART TWO Scanning the Environment 93

C H A P T E R 4 Environmental Scanning and Industry Analysis 94 4.1 Environmental Scanning 98

Identifying External Environmental Variables 98

Environmental Sustainability Issue: MEASURING AND SHRINKING YOUR PERSONAL CARBON FOOTPRINT 100

xii CONTENTS

Global Issue: IDENTIFYING POTENTIAL MARKETS IN DEVELOPING NATIONS 107

Identifying External Strategic Factors 108

4.2 Industry Analysis: Analyzing the Task Environment 109

Porter’s Approach to Industry Analysis 110

Industry Evolution 114

Categorizing International Industries 114

International Risk Assessment 115

Strategic Groups 115

Strategic Types 117

Hypercompetition 117

Using Key Success Factors to Create an Industry Matrix 118

Strategy Highlight 4.1: MICROSOFT IN A HYPERCOMPETITIVE INDUSTRY 118

4.3 Competitive Intelligence 120

Sources of Competitive Intelligence 121

Strategy Highlight 4.2: EVALUATING COMPETITIVE INTELLIGENCE 122

Monitoring Competitors for Strategic Planning 122

4.4 Forecasting 123

Danger of Assumptions 123

Useful Forecasting Techniques 124

4.5 The Strategic Audit: A Checklist for Environmental Scanning 125

4.6 Synthesis of External Factors—EFAS 126

4.7 End of Chapter Summary 127

APPENDIX 4.A Competitive Analysis Techniques 133

C H A P T E R 5 Internal Scanning: Organizational Analysis 136 5.1 A Resource-Based Approach to Organizational Analysis 138

Core and Distinctive Competencies 138

Using Resources to Gain Competitive Advantage 139

Determining the Sustainability of an Advantage 140

5.2 Business Models 142

5.3 Value-Chain Analysis 143

Strategy Highlight 5.1: A NEW BUSINESS MODEL AT SMARTYPIG 144

Industry Value-Chain Analysis 145

Corporate Value-Chain Analysis 146

5.4 Scanning Functional Resources and Capabilities 147

Basic Organizational Structures 147

Corporate Culture: The Company Way 149

CONTENTS xiii

Global Issue: MANAGING CORPORATE CULTURE FOR GLOBAL COMPETITIVE ADVANTAGE: ABB VERSUS MATSUSHITA 150

Strategic Marketing Issues 151

Strategic Financial Issues 153

Strategic Research and Development (R&D) Issues 154

Strategic Operations Issues 156

Strategic Human Resource (HRM) Issues 158

Environmental Sustainability Issue: USING ENERGY EFFICIENCY FOR COMPETITIVE ADVANTAGE AND QUALITY OF WORK LIFE 161

Strategic Information Systems/Technology Issues 162

5.5 The Strategic Audit: A Checklist for Organizational Analysis 163

5.6 Synthesis of Internal Factors 164

5.7 End of Chapter Summary 165

Ending Case for Part Two: BOEING BETS THE COMPANY 170

PART THREE Strategy Formulation 173

C H A P T E R 6 Strategy Formulation: Situation Analysis and Business Strategy 174 6.1 Situation Analysis: SWOT Analysis 176

Generating a Strategic Factors Analysis Summary (SFAS) Matrix 176

Finding a Propitious Niche 177

Global Issue: SAB DEFENDS ITS PROPITIOUS NICHE 181

6.2 Review of Mission and Objectives 181

6.3 Generating Alternative Strategies by Using a TOWS Matrix 182

6.4 Business Strategies 183

Porter’s Competitive Strategies 183

Environmental Sustainability Issue: PATAGONIA USES SUSTAINABILITY AS DIFFERENTIATION COMPETITIVE STRATEGY 187

Cooperative Strategies 195

6.5 End of Chapter Summary 199

C H A P T E R 7 Strategy Formulation: Corporate Strategy 204 7.1 Corporate Strategy 206

7.2 Directional Strategy 206

Growth Strategies 207

Strategy Highlight 7.1: TRANSACTION COST ECONOMICS ANALYZES VERTICAL GROWTH STRATEGY 210

xiv CONTENTS

Global Issue: COMPANIES LOOK TO INTERNATIONAL MARKETS FOR HORIZONTAL GROWTH 212

Strategy Highlight 7.2: SCREENING CRITERIA FOR CONCENTRIC DIVERSIFICATION 215

Controversies in Directional Growth Strategies 216

Stability Strategies 217

Retrenchment Strategies 218

7.3 Portfolio Analysis 220

BCG Growth-Share Matrix 221

Environmental Sustainability Issue: GENERAL MOTORS AND THE ELECTRIC CAR 222

GE Business Screen 223

Advantages and Limitations of Portfolio Analysis 225

Managing a Strategic Alliance Portfolio 225

7.4 Corporate Parenting 226

Developing a Corporate Parenting Strategy 227

Horizontal Strategy and Multipoint Competition 228

7.5 End of Chapter Summary 229

C H A P T E R 8 Strategy Formulation: Functional Strategy and Strategic Choice 236 8.1 Functional Strategy 238

Marketing Strategy 238

Financial Strategy 239

Research and Development (R&D) Strategy 241

Operations Strategy 242

Global Issue: INTERNATIONAL DIFFERENCES ALTER WHIRLPOOL’S OPERATIONS STRATEGY 243

Purchasing Strategy 244

Environmental Sustainability Issue: OPERATIONS NEED FRESH WATER AND LOTS OF IT! 245

Logistics Strategy 246

Human Resource Management (HRM) Strategy 246

Information Technology Strategy 247

8.2 The Sourcing Decision: Location of Functions 247

8.3 Strategies to Avoid 250

8.4 Strategic Choice: Selecting the Best Strategy 251

Constructing Corporate Scenarios 251

Process of Strategic Choice 257

CONTENTS xv

8.5 Developing Policies 258

8.6 End of Chapter Summary 259

Ending Case for Part Three: KMART AND SEARS: STILL STUCK IN THE MIDDLE? 266

PART FOUR Strategy Implementation and Control 269

C H A P T E R 9 Strategy Implementation: Organizing for Action 270 9.1 Strategy Implementation 272

9.2 Who Implements Strategy? 273

9.3 What Must Be Done? 273

Developing Programs, Budgets, and Procedures 274

Environmental Sustainability Issue: FORD’S SOYBEAN SEAT FOAM PROGRAM 274

Strategy Highlight 9.1: THE TOP TEN EXCUSES FOR BAD SERVICE 277

Achieving Synergy 278

9.4 How Is Strategy to Be Implemented? Organizing for Action 278

Structure Follows Strategy 279

Stages of Corporate Development 280

Organizational Life Cycle 283

Advanced Types of Organizational Structures 285

Reengineering and Strategy Implementation 288

Six Sigma 289

Designing Jobs to Implement Strategy 290

Strategy Highlight 9.2: DESIGNING JOBS WITH THE JOB CHARACTERISTICS MODEL 291

9.5 International Issues in Strategy Implementation 291

International Strategic Alliances 292

Stages of International Development 293

Global Issue: MULTIPLE HEADQUARTERS: A SIXTH STAGE OF INTERNATIONAL DEVELOPMENT? 294

Centralization Versus Decentralization 294

9.6 End of Chapter Summary 296

C H A P T E R 1 0 Strategy Implementation: Staffing and Directing 300 10.1 Staffing 302

Staffing Follows Strategy 303

Selection and Management Development 305

Strategy Highlight 10.1: HOW HEWLETT-PACKARD IDENTIFIES POTENTIAL EXECUTIVES 306

Problems in Retrenchment 308

International Issues in Staffing 309

xvi CONTENTS

10.2 Leading 311

Managing Corporate Culture 311

Environmental Sustainability Issue: ABBOTT LABORATORIES’ NEW PROCEDURES FOR GREENER COMPANY CARS 312

Action Planning 316

Management by Objectives 318

Total Quality Management 318

International Considerations in Leading 319

Global Issue: CULTURAL DIFFERENCES CREATE IMPLEMENTATION PROBLEMS IN MERGER 321

10.3 End of Chapter Summary 322

C H A P T E R 1 1 Evaluation and Control 328 11.1 Evaluation and Control in Strategic Management 330

11.2 Measuring Performance 332

Appropriate Measures 332

Types of Controls 332

Activity-Based Costing 334

Enterprise Risk Management 335

Primary Measures of Corporate Performance 335

Environmental Sustainability Issue: HOW GLOBAL WARMING COULD AFFECT CORPORATE VALUATION 340

Primary Measures of Divisional and Functional Performance 342

International Measurement Issues 344

Global Issue: COUNTERFEIT GOODS AND PIRATED SOFTWARE: A GLOBAL PROBLEM 346

11.3 Strategic Information Systems 347

Enterprise Resource Planning (ERP) 347

Radio Frequency Identification (RFID) 348

Divisional and Functional IS Support 348

11.4 Problems in Measuring Performance 348

Short-Term Orientation 349

Goal Displacement 350

11.5 Guidelines for Proper Control 351

Strategy Highlight 11.1: SOME RULES OF THUMB IN STRATEGY 351

11.6 Strategic Incentive Management 352

11.7 End of Chapter Summary 354

Ending Case for Part Four: HEWLETT-PACKARD BUYS EDS 360

CONTENTS xvii

PART FIVE Introduction to Case Analysis 363

C H A P T E R 1 2 Suggestions for Case Analysis 364 12.1 The Case Method 365

12.2 Researching the Case Situation 366

12.3 Financial Analysis: A Place to Begin 366

Analyzing Financial Statements 369

Environmental Sustainability Issue: IMPACT OF CARBON TRADING 370

Global Issue: FINANCIAL STATEMENTS OF MULTINATIONAL CORPORATIONS: NOT ALWAYS WHAT THEY SEEM 371

Common-Size Statements 371

Z-value and Index of Sustainable Growth 371

Useful Economic Measures 372

12.4 Format for Case Analysis: The Strategic Audit 373

12.5 End of Chapter Summary 375

APPENDIX 12.A Resources for Case Research 377

APPENDIX 12.B Suggested Case Analysis Methodology Using the Strategic Audit 380

APPENDIX 12.C Example of a Student-Written Strategic Audit 383

Ending Case for Part Five: IN THE GARDEN 391

GLOSSARY G-1

NAME INDEX I-1

SUBJECT INDEX I-1

PART SIX WEB CHAPTERS Other Strategic Issues

W E B C H A P T E R A Strategic Issues in Managing Technology and Innovation 1 The Role of Management

Strategy Highlight 1: EXAMPLES OF INNOVATION EMPHASIS IN MISSION STATEMENTS

2 Environmental Scanning

External Scanning

Internal Scanning

3 Strategy Formulation

Product vs. Process R&D

Technology Sourcing

Global Issue: USE OF INTELLECTUAL PROPERTY AT HUAWEI TECHNOLOGIES

Importance of Technological Competence

Categories of Innovation

Product Portfolio

xviii CONTENTS

4 Strategy Implementation

Developing an Innovative Entrepreneurial Culture

Organizing for Innovation: Corporate Entrepreneurship

Strategy Highlight 2: HOW NOT TO DEVELOP AN INNOVATIVE ORGANIZATION

5 Evaluation and Control

Evaluation and Control Techniques

Evaluation and Control Measures

6 End of Chapter Summary

W E B C H A P T E R B Strategic Issues in Entrepreneurial Ventures and Small Businesses 1 Importance of Small Business and Entrepreneurial Ventures

Global Issue: ENTREPRENEURSHIP: SOME COUNTRIES ARE MORE SUPPORTIVE THAN OTHERS

Definition of Small-Business Firms and Entrepreneurial Ventures

The Entrepreneur as Strategist

2 Use of Strategic Planning and Strategic Management

Degree of Formality

Usefulness of the Strategic Management Model

Usefulness of the Strategic Decision-Making Process

3 Issues in Corporate Governance

Boards of Directors and Advisory Boards

Impact of the Sarbanes-Oxley Act

4 Issues in Environmental Scanning and Strategy Formulation

Sources of Innovation

Factors Affecting a New Venture’s Success

Strategy Highlight 1: SUGGESTIONS FOR LOCATING AN OPPORTUNITY AND FORMULATING A BUSINESS STRATEGY

5 Issues in Strategy Implementation

Substages of Small Business Development

Transfer of Power and Wealth in Family Businesses

6 Issues in Evaluation and Control

7 End of Chapter Summary

W E B C H A P T E R C Strategic Issues in Not-for-Profit Organizations 1 Why Not-for-Profit?

Global Issue: WHICH IS BEST FOR SOCIETY: BUSINESS OR NOT-FOR-PROFIT?

CONTENTS xix

2 Importance of Revenue Source

Sources of Not-for-Profit Revenue

Patterns of Influence on Strategic Decision Making

Usefulness of Strategic Management Concepts and Techniques

3 Impact of Constraints on Strategic Management

Impact on Strategy Formulation

Impact on Strategy Implementation

Impact on Evaluation and Control

4 Not-for-Profit Strategies

Strategic Piggybacking

Strategy Highlight 1: RESOURCES NEEDED FOR SUCCESSFUL STRATEGIC PIGGYBACKING

Mergers

Strategic Alliances

5 End of Chapter Summary

PART SEVEN Cases in Strategic Management 1-1

S E C T I O N A Corporate Governance and Social Responsibility: Executive Leadership

CASE 1 The Recalcitrant Director at Byte Products Inc.: Corporate Legality versus Corporate Responsibility 1-7 (Contributors: Dan R. Dalton, Richard A. Cosier, and Cathy A. Enz) A plant location decision forces a confrontation between the board of directors and the CEO regarding an issue in social responsibility and ethics.

CASE 2 The Wallace Group 2-1 (Contributor: Laurence J. Stybel) Managers question the company’s strategic direction and how it is being managed by its founder and CEO. Company growth has resulted not only in disorganization and confusion among employees, but in poor overall performance. How should the board deal with the company’s founder?

S E C T I O N B Business Ethics

CASE 3 Everyone Does It 3-1 (Contributors: Steven M. Cox and Shawana P. Johnson) When Jim Willis, Marketing VP, learns that the launch date for the company’s new satellite will be late by at least a year, he is told by the company’s president to continue using the earlier published date for the launch. When Jim protests that the use of an incorrect date to market contracts is unethical, he is told that spacecraft are never launched on time and that it is common industry practice to list unrealistic launch dates. If a realistic date was used, no one would contract with the company.

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CASE 4 The Audit 4-1 (Contributors: John A. Kilpatrick, Gamewell D. Gantt, and George A. Johnson) A questionable accounting practice by the company being audited puts a new CPA in a difficult position. Although the practice is clearly wrong, she is being pressured by her manager to ignore it because it is common in the industry.

S E C T I O N C International Issues in Strategic Management

CASE 5 Starbucks’ Coffee Company: The Indian Dilemma 5-1 (Contributors: Ruchi Mankad and Joel Sarosh Thadamalla) Starbucks is the world’s largest coffee retailer with over 11,000 stores in 36 countries and over 10,000 employees. The case focuses on India as a potential market for the coffee retailer, presenting information on India’s societal environment and beverage industry. Profiles are provided for various existing coffee shop chains in India. The key issue in the case revolves around the question: Are circumstances right for Starbucks to enter India?

CASE 6 Guajilote Cooperativo Forestal: Honduras 6-1 (Contributors: Nathan Nebbe and J. David Hunger) This forestry cooperative has the right to harvest, transport, and sell fallen mahogany trees in La Muralla National Park of Honduras. Although the cooperative has been successful thus far, it is facing some serious issues: low prices for its product, illegal logging, deforestation by poor farmers, and possible world trade restrictions on the sale of mahogany.

S E C T I O N D General Issues in Strategic Management

I N D U S T RY O N E : Information Technology CASE 7 Apple Inc.: Performance in a Zero-Sum World Economy 7-1

(Contributors: Kathryn E. Wheelen, Thomas L. Wheelen II, Richard D. Wheelen, Moustafa H. Abdelsamad, Bernard A. Morin, Lawrence C. Pettit, David B. Croll, and Thomas L. Wheelen) Apple, the first company to mass-market a personal computer, had become a minor player in an industry dominated by Microsoft. After being expelled from the company in 1985, founder Steve Jobs returned as CEO in 1997 to reenergize the firm. The introduction of the iPod in 2001, followed by the iPad, catapulted Apple back into the spotlight. However, in 2011 Jobs was forced to take his third medical leave, leading to questions regarding his ability to lead Apple. How can Apple continue its success? How dependent is the company on Steve Jobs?

CASE 8 iRobot: Finding the Right Market Mix? 8-1 (Contributor: Alan N. Hoffman) Founded in 1990, iRobot was among the first companies to introduce robotic technology into the consumer market. Employing over 500 robotic professionals, the firm planned to lead the robotics industry. Unfortunately, its largest revenue source, home care robots, are a luxury good and vulnerable to recessions. Many of iRobot’s patents are due to expire by 2019. The firm is highly dependent upon suppliers to make its consumer products and the U.S. government for military sales. What is the best strategy for its future success?

CASE 9 Dell Inc.: Changing the Business Model (Mini Case) 9-1 (Contributor: J. David Hunger) Dell, once the largest PC vendor in the world, is now battling with Acer for second place in the global PC market. Its chief advantages—direct marketing and power over suppliers—no longer provided a competitive advantage. The industry’s focus has shifted from desktop PCs to mobile computing, software, and technology services, areas of relative weakness for Dell. Is it time for Dell to change its strategy?