& Financial Budgets 295 & Evaluating the Worth of a Business 297 & Deciding Whether to Go Public 299 Research and Development (R&D) Issues 299 Management Information Systems (MIS) Issues 301 [RM][TTL]EXPERIENTIAL EXERCISES 306 Experiential Exercise 8A: Developing a Product-Positioning Map for Walt Disney 306 Experiential Exercise 8B: Performing an EPS/EBIT Analysis for Walt Disney 306 Experiential Exercise 8C: Preparing Projected Financial Statements for Walt Disney 306 Experiential Exercise 8D: Determining the Cash Value of Walt Disney 307 Experiential Exercise 8E: Developing a Product-Positioning Map for My University 307 Experiential Exercise 8F: Do Banks Require Projected Financial Statements? 307 [PART]PART 4 & [TTL]Strategy Evaluation 308 [CHAP]CHAPTER 9 [TTL]Strategy Review, Evaluation, and Control 308 [H1]The Nature of Strategy Evaluation 310 [H2]The Process of Evaluating Strategies 313 A Strategy-Evaluation Framework 314 Reviewing Bases of Strategy 315 & Measuring Organizational Performance 317 & Taking Corrective Actions 318 The Balanced Scorecard 320 Published Sources of Strategy-Evaluation Information 320 Characteristics of an Effective Evaluation System 323 Contingency Planning 324 Auditing 325 The Environmental Audit 326 Twenty-First-Century Challenges in Strategic Management 326 The Art or Science Issue 326 & The Visible or Hidden Issue 327 & The Top-Down or Bottom-Up Approach 328 [RM][TTL]EXPERIENTIAL EXERCISES 332 Experiential Exercise 9A: Preparing a Strategy-Evaluation Report for Walt Disney 332 Experiential Exercise 9B: Evaluating My University's Strategies 332 Experiential Exercise 9C: Who Prepares an Environmental Audit? 332 [PART]PART 5 & [TTL]Strategic Management Case Analysis 334 [TTL]How to Prepare and Present a Case Analysis 334 [H1]What Is a Strategic Management Case? 336 [H1]Guidelines for Preparing Case Analyses 336 [H2]The Need for Practicality 336 & The Need for Justification 336 & The Need for Realism 336 & The Need for Specificity 337 & The Need for Originality 337 & The Need to Contribute 337 Preparing a Case for Class Discussion 337 The Case Method versus Lecture Approach 338 & The Cross-Examination 338 Preparing a Written Case Analysis 338 The Executive Summary 339 & The Comprehensive Written Analysis 339 & Steps in Preparing a Comprehensive Written Analysis 339 Making an Oral Presentation 340 Organizing the Presentation 340 & Controlling Your Voice 340 & Managing Body Language 341 & Speaking from Notes 341 & Constructing Visual Aids 341 & Answering Questions 341 & Tips for Success in Case Analysis 342 & Content Tips 342 & Process Tips 343 & Sample Case Analysis Outline 344 [BKRM][TTL]SAMPLE CASE ANALYSIS OUTLINE 345 NAME INDEX 349 SUBJECT INDEX 352 COMPANY INDEX 357

BRFTOC][TTL]Brief Contents [BKFM][TTL]Preface x [PART]PART 1 & [TTL]Overview of Strategic Management [CHAP]CHAPTER 1 [TTL]The Nature of Strategic Management [CS1]Cohesion Case: [TTL]Walt Disney Company, Inc.- 2007 [PART]PART 2 & [TTL]Strategy Formulation [CHAP]CHAPTER 2 [TTL]The Business Vision and Mission [CHAP]CHAPTER 3 [TTL]The External Assessment [CHAP]CHAPTER 4 [TTL]The Internal Assessment [CHAP]CHAPTER 5 [TTL]Strategies in Action [CHAP]CHAPTER 6 [TTL]Strategy Analysis and Choice [PART]PART 3 & [TTL]Strategy Implementation [CHAP]CHAPTER 7 [TTL]Implementing Strategies: Management and Operations Issues [CHAP]CHAPTER 8 [TTL]Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues [PART]PART 4 & [TTL]Strategy Evaluation [CHAP]CHAPTER 9 [TTL]Strategy Review, Evaluation, and Control [PART]PART 5 & [TTL]Strategic Management Case Analysis [SUBTTL]How to Prepare and Present a Case Analysis [BKRM][TTL]Name Index Subject Index [TOC][TTL]CONTENTS [BKFM][TTL]Preface x [PART]PART 1 & [TTL]Overview of Strategic Management 2 [CHAP]CHAPTER 1 [TTL]The Nature of Strategic Management 2 [H1]What Is Strategic Management? 5 [H2]Defining Strategic Management 5 & Stages of Strategic Management 5 & Integrating Intuition and Analysis 7 & Adapting to Change 7 [H1]Key Terms in Strategic Management 8 [H2]Competitive Advantage 8 & Strategists 9 & Vision and Mission Statements 9 & External Opportunities and Threats 10 & Internal Strengths and Weaknesses 11 & Long-Term Objectives 11 & Strategies 12 & Annual Objectives 12 & Policies 13 [H1]The Strategic-Management Model 13 Benefits of Strategic Management 15 Financial Benefits 16 & Nonfinancial Benefits 16 Why Some Firms Do No Strategic Planning 17 Pitfalls in Strategic Planning 18 Guidelines for Effective Strategic Management 18 Business Ethics and Strategic Management 20 Comparing Business and Military Strategy 24 The Nature of Global Competition 25 Advantages and Disadvantages of International Operations 27 [CS1][SUPTTL]Cohesion Case: [TTL]Walt Disney Company - 2007 by Dr. Mernoush Banton at Florida International University 32 [RM][TTL]EXPERIENTIAL EXERCISES 44 Experiential Exercise 1A: Getting Familiar With Strategy Terms 44 Experiential Exercise 1B: Developing a Code of Business Ethics for Walt Disney (DIS) 44 Experiential Exercise 1C: The Ethics of Spying on Competitors 45 Experiential Exercise 1D: Strategic Planning for My University 46 Experiential Exercise 1E: Strategic Planning at a Local Company 46 Experiential Exercise 1F: Does My University Recruit in Foreign Countries? 47 Experiential Exercise 1G: Getting Familiar with SMCO 47 [PART]PART 2 & [TTL]Strategy Formulation 48 [CHAP]CHAPTER 2 [TTL]The Business Vision and Mission 48 [H1]What Do We Want to Become? 50 [H1]What Is Our Business? 53 [H2]Vision Versus Mission 53 & The Process of Developing Vision and Mission Statements 54 [H1]Importance of Vision and Mission Statements 55 A Resolution of Divergent Views 56 Characteristics of a Mission Statement 58 A Declaration of Attitude 58 & A Customer Orientation 60 & A Declaration of Social Policy 62 Mission Statement Components 63 Writing and Evaluating Mission Statements 63 [RM][TTL]EXPERIENTIAL EXERCISES 69 Experiential Exercise 2A: Evaluating Mission Statements 69 Experiential Exercise 2B: Evaluating Walt Disney's Vision and Mission Statement 70 Experiential Exercise 2C: Writing a Vision and Mission Statement for My University 70 Experiential Exercise 2D: Conducting Mission Statement Research 71 [CHAP]CHAPTER 3 [TTL]The External Assessment 72 [H1]The Nature of an External Audit 74 [H2]Key External Forces 75 & The Process of Performing an External Audit 75 The Industrial Organization (I/O) View 76 Economic Forces 77 Social, Cultural, Demographic, and Environmental Forces 79 Political, Governmental, and Legal Forces 83 Technological Forces 86 [H1]Competitive Forces 87 [H2]Competitive Intelligence Programs 89 & Cooperation Among Competitors 91 [H2]Market Commonalit and Resource Similarity [H1]Competitive Analysis: Porter's Five-Forces Model 92 Rivalry Among Competing Firms 94 & Potential Entry of New Competitors 94 & Potential Development of Substitute Products 95 & Bargaining Power of Suppliers 95 & Bargaining Power of Consumers 95 Sources of External Information 96 Forecasting Tools and Techniques 96 Making Assumptions 97 The Global Challenge 97 Multinational Corporations 98 & Globalization 98 Industry Analysis: The External Factor Evaluation (EFE) Matrix 101 The Competitive Profile Matrix (CPM) 104 [RM][TTL]EXPERIENTIAL EXERCISES 109 Experiential Exercise3A: Developing an EFE Matrix for Walt Disney 109 Experiential Exercise 3B: The External Assessment 109 Experiential Exercise 3C: Developing an EFE Matrix for My University 109 Experiential Exercise 3D: Developing a Competitive Profile Matrix for Walt Disney Company 110 Experiential Exercise 3E: Developing a Competitive Profile Matrix for My University 110 [CHAP]CHAPTER 4 [TTL]The Internal Assessment 112 [H1]The Nature of an Internal Audit 114 [H2]Key Internal Forces 114 & The Process of Performing an Internal Audit 115 [H1]The Resource-Based View (RBV) 117 [H1]Integrating Strategy and Culture 118 [H2]U.S.

versus Foreign Cultures 120 [H1]Management 123 Planning 123 & Organizing 125 & Motivating 126 & Staffing 127 & Controlling 127 & Managem ent Audit Checklist of Questions 128 Marketing 128 Customer Analysis 128 & Selling Products/Services 129 & Product and Service Planning 129 & Pricing 129 & Distribution 130 & Marketing Research 130 & Opportunity Analysis 132 & Marketing Audit Checklist of Questions 132 Finance/Accounting 132 Finance/Accounting Functions 132 & Basic Types of Financial Ratios 134 & Finance/Accounting Audit Checklist 137 Production/Operations 139 Production/Operations Audit Checklist 141 Research and Development 141 Internal and External R&D 143 & Research and Development Audit Checklist 144 Management Information Systems 144 Strategic-Planning Software 145 & Management Information Systems Audit Checklist 146 [H1]Value Chain Analysis (VCA) 146 [H2]Benchmarking [H1]The Internal Factor Evaluation (IFE) Matrix 147 [RM][TTL]EXPERIENTIAL EXERCISES 154 Experiential Exercise 4A: Performing a Financial Ratio Analysis for Walt Disney Company 154 Experiential Exercise 4B: Constructing an IFE Matrix for Walt Disney Company 154 Experiential Exercise 4C: Constructing an IFE Matrix for My University 154 [CHAP]CHAPTER 5 [TTL]Strategies in Action 156 [H1]Long-Term Objectives 158 [H2]The Nature of Long-Term Objectives 158 & Financial versus Strategic Objectives 159 & Not Managing by Objectives 159 & [H2]The Balanced Scorecard [H2]Types of Strategies [H2]Levels of Strategies 160 Integration Strategies 164 Forward Integration 164 & Backward Integration 165 & Horizontal Integration 166 Intensive Strategies 167 Market Penetration 167 & Market Development 167 & Product Development 168 Diversification Strategies 169 Related Diversification 169 & Unrelated Diversification 171 Defensive Strategies 172 Retrenchment 172 & Divestiture 174 & Liquidation 175 Michael Porter's Five Generic Strategies 176 Cost Leadership Strategies (Type 1 and Type 2) 177 & Differentiation Strategies (Type 3) 177 & Focus Strategies (Type 4 and Type 5) 178 [H2]Strategies for Competing in Turbulent, High-Velocity Markets Means for Achieving Strategies 178 Joint Venture/Partnering 178 & & Merger/Acquisition 181 & Private-Equity Acquisitions [H2]First Mover Advantages 184 [H2]Outsourcing 184 [H1]Strategic Management in Nonprofit and Governmental Organizations 185 Educational Institutions 185 & Medical Organizations 186 & Governmental Agencies and Departments 187 Strategic Management in Small Firms 187 [RM][TTL]EXPERIENTIAL EXERCISES 192 Experiential Exercise 5A: What Strategies Should Walt Disney Pursue in 2008-2009? 192 Experiential Exercise 5B: Examining Strategy Articles 192 Experiential Exercise 5C: Classifying Some Year 2007 Strategies 193 Experiential Exercise 5D: How Risky Are Various Alternative Strategies? 193 Experiential Exercise 5E: Developing Alternative Strategies for My University 194 Experiential Exercise 5F: Lessons in Doing Business Globally 195 [CHAP]CHAPTER 6 [TTL]Strategy Analysis and Choice 196 [H1]The Nature of Strategy Analysis and Choice 198 [H2]The Process of Generating and Selecting Strategies 200 A Comprehensive Strategy-Formulation Framework 200 The Input Stage 201 The Matching Stage 202 The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix 202 & The Strategic Position and Action Evaluation (SPACE) Matrix 207 & The Boston Consulting Group (BCG) Matrix 212 & The Internal-External (IE) Matrix 214 & The Grand Strategy Matrix 218 The Decision Stage 220 The Quantitative Strategic Planning Matrix (QSPM) 220 & Positive Features and Limitations of the QSPM 224 Cultural Aspects of Strategy Choice 224 The Politics of Strategy Choice 225 Governance Issues 226 [RM][TTL]EXPERIENTIAL EXERCISES 234 Experiential Exercise 6A: Developing a SWOT Matrix for Walt Disney 234 Experiential Exercise 6B: Developing a SPACE Matrix for Walt Disney 234 Experiential Exercise 6C: Developing a BCG Matrix for Walt Disney 234 Experiential Exercis 6D: Developing a QSPM for Walt Disney 235 Experiential Exercise 6E: Formulating Individual Strategies 235 Experiential Exercise 6F: The Mach Test 236 Experiential Exercise 6G: Developing a BCG Matrix for My University 238 Experiential Exercise 6H: The Role of Boards of Directors 238 Experiential Exercise 6I: Locating Companies in a Grand Strategy Matrix 239 [PART]PART 3 & [TTL]Strategy Implementation 240 [CHAP]CHAPTER 7 [TTL]Implementing Strategies: Management and Operations Issues 240 [H1]The Nature of Strategy Implementation 242 [H2]Management Perspectives 243 Annual Objectives 244 Policies 246 Resource Allocation 248 Managing Conflict 249 [H1]Matching Structure with Strategy 250 [H2]The Functional Structure 251 & The Divisional Structure 251 & The Strategic Business Unit (SBU) Structure 253 & The Matrix Structure 254 [H2]Some Do's and Don'ts in Developing Organizational Charts [H1]Restructuring, Reengineering, and E-Engineering 255 Restructuring 256 & Reengineering 257 Linking Performance and Pay to Strategies 257 Managing Resistance to Change 259 Managing the Natural Environment 261 Creating a Strategy-Supportive Culture 264 The Mexican Culture 265 & The Japanese Culture 266 Production/Operations Concerns When Implementing Strategies 268 Human Resource Concerns When Implementing Strategies 269 Employee Stock Ownership Plans (ESOPs) 271 & Balancing Work Life and Home Life 271 & Benefits of a Diverse Workforce 273 [RM][TTL]EXPERIENTIAL EXERCISES 278 Experiential Exercise 7A: Revising Walt Disney's Organizational Chart 278 Experiential Exercise 7B: Do Organizations Really Establish Objectives? 278 Experiential Exercise 7C: Understanding My University's Culture 279 [CHAP]CHAPTER 8 [TTL]Implementing Strategies: Marketing, Finance/Accounting, R&D, and MIS Issues 280 [H1]The Nature of Strategy Implementation 282 [H1]Marketing Issues 282 [H2]Market Segmentation 283 & Does the Internet Make Market Segmentation Easier? 287 & Product Positioning 287 Finance/Accounting Issues 288 Acquiring Capital to Implement Strategies 290 & Projected Financial Statements 293 Projected Financial Statement Analysis for Mattel, Inc.