strategic-management

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EXHIBIT 1 Amtrak Route Map SEATTLE PORTLAND Eugene - Springfield Redding Fresno VAN COUVER Everett CALIFORNIA San Luis Obispo Bakersfield Santa Barbara LOS ANGELES San Bernardino Anaheim Palm Springs SAN DIEGO WASHINGTON OREGON OAKLAND SACRAMENTO NEVADA Stockton San Jose 500 kilometers Spokane IDAHO Flagstaff Maricopa TUCSON CASE 15 • NATIONAL RAILROAD PASSENGER CORPORATION (AMTRAK) — 2009 151 26 million train-miles. Amtrak also depends on host railroads for the dispatching and timely movement of its trains. The seven largest host railroads are BNSF Railway, Union Pacific Railroad, CSX Transportation, Norfolk Southern Railway, CN Railway, Canadian Pacific Railway, and Metro-North Railroad. Internal Information SALT LAKE CITY UTAH ARIZONA Amtrak Network 2007 MONTANA NORTH DAKOTA MINNESOTA WYOMING DENVER COLORADO ALBU QUERQUE NEW MAXICO El Paso FORT WORTH AUSTIN DALLAS St. Albans Protland Rubland TORONTO Niagara Syracuse BOSTON Fallse Albany Rochester Rensselaer Springfield New Haven NEW YORK Harrisburg OMAHA PHILADELPHIA WASHINGTON, DC Richmond New port Nems Greensboro Raleigh Oklahoma City LITTLE ROCK Charlotta Columbia Selma Fayettevile Texarkana ATLANTA Tuscaloosa Birmingham Jackson Charleston Savannah Lafayette Pensacola Tallahassee JLACKSONVILLE NEW ORLEANS ORLANDO TAMPA Trenbon VERMONT Minneapolis NEW MICHIGAN ST, PAUL YORK NEW HAMPSHIRE WISCONSIN SOUTH DAKOTA MASSACHUSETTS Port Huron BUFFALO Grand Rapids RHODE ISLAND Pontiac MILWAUKEE CONNECTICUT DETROIT PENNSYLVANIA Battle Creek IOWA CLEVELAND CHICAGO NEW JERSEY NEBRASKA Galesburg PITTSBURGH BALTIMORE OHIO DELAWARE INDIANAPOLIS WEST ILLINOIS KANSAS VIRGINIA Quincy INDIANA CINCINNATI CITY Charlottesvile MARYLAND Topeka ST. LOUIS VIRGINIA KANSAS MISSOURI KENTUCKY NORTH CARLONIA OKLAHOMA ARKANSAS TENNESSEE MEMPHIS SOUTH MISSISSIPPI GEORGIA ALABAMA CARLONIA TEXAS LOUSUANA Mobile HOUSTON SAN ANTONIO Organizational Structure Amtrak is a government-owned corporation that was organized to provide intercity passenger train service in the United States. All of Amtrak’s preferred stock is owned by the U.S. federal government. The members of the board of directors are appointed by the president of the United States and are subject to confirmation by the U.S. Senate. Common stock was issued in 1971 to railroads that contributed capital and equipment. Even though these shares convey almost no benefits, the holders declined a 2002 buyout offer by Amtrak. Leadership In 2006, Alexander Kummant was named president and CEO of Amtrak, but he was asked to resign in November 2008 because of a dispute about debt restructuring. According to statements from Amtrak, both revenue and ridership reached record highs during Kummant’s tenure. “He also successfully oversaw the completion of labor agreements with all of the unions representing Amtrak’s employees,” said Donna McLean, Amtrak chairwoman. 2 On November 25, 2008, the board of directors for Amtrak announced they had appointed Joseph Boardman to a one-year term as president and CEO of the railway to replace Kummant. FLORIDA MONTREAL West Palm Beach MIAMI MAINE
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Editorial Director: Sally Yagan Edi
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To Joy, Forest, Byron, and Meredith
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x CONTENTS Industry Analysis: The E
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xii CONTENTS Part 4 Strategy Evalua
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xiv CONTENTS Cases HOSPITALITY/ENTE
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xviii PREFACE issues and concerns.
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xx PREFACE current strategic-manage
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xxiv ACKNOWLEDGMENTS with overly ag
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xxviii CASE COMPANY INFORMATION MAT
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xxx CASE COMPANY INFORMATION MATRIX
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PART 1 Overview of Strategic Manage
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4 PART 1 • OVERVIEW OF STRATEGIC
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PART 2 Strategy Formulation CHAPTER
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42 PART 2 • STRATEGY FORMULATION
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CHAPTER 3 The External Assessment C
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CHAPTER 4 The Internal Assessment C
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CHAPTER 5 Strategies in Action CHAP
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CHAPTER 6 Strategy Analysis and Cho
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PART 3 Strategy Implementation CHAP
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212 PART 3 • STRATEGY IMPLEMENTAT
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CHAPTER 8 Implementing Strategies:
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PART 4 Strategy Evaluation CHAPTER
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286 PART 4 • STRATEGY EVALUATION
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PART 5 Key Strategic-Management Top
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CHAPTER 11 Global/International Iss
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PART 6 Strategic-Management Case An
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348 PART 6 • STRATEGIC-MANAGEMENT
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360 INDEX Finkelstein, Sydney, 167
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362 INDEX Thai, Kim, 167, 280 Thomp
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364 INDEX E Economic forces, 63, 33
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366 INDEX Q OSPM, 192-196 Quality (
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2 MERNOUSH BANTON Disney Consumer P
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4 MERNOUSH BANTON EXHIBIT 3 Consoli
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6 MERNOUSH BANTON Entertainment Ser
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8 MERNOUSH BANTON EXHIBIT 9 Disney
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10 MERNOUSH BANTON EXHIBIT 11 Disne
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12 MERNOUSH BANTON The second large
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2 Merryland Amusement Park — 2009
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16 GREGORY STONE place for area fam
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18 GREGORY STONE EXHIBIT 4 Missouri
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20 GREGORY STONE Tony explored opti
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22 GREGORY STONE EXHIBIT 5 2008 Gen
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24 GREGORY STONE EXHIBIT 6 2008 Kan
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3 JetBlue Airways Corporation — 2
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28 MERNOUSH BANTON hub (Terminal 5
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30 MERNOUSH BANTON EXHIBIT 3 JetBlu
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32 MERNOUSH BANTON expenses rose 8.
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34 MERNOUSH BANTON EXHIBIT 7 Airlin
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36 MERNOUSH BANTON EXHIBIT 12 Airli
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38 CHARLES M. BYLES as a safe airli
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40 CHARLES M. BYLES in a number of
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42 CHARLES M. BYLES EXHIBIT 4 AirTr
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44 CHARLES M. BYLES EXHIBIT 6 Balan
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46 CHARLES M. BYLES shows that labo
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48 CHARLES M. BYLES EXHIBIT 12 JetB
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5 Family Dollar Stores, Inc. — 20
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52 JOSEPH W. LEONARD EXHIBIT 2 Fami
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54 JOSEPH W. LEONARD To support its
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56 JOSEPH W. LEONARD Beyond the fou
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58 JOSEPH W. LEONARD EXHIBIT 8 Fami
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60 AMIT J. SHAH AND MICHAEL L. MONA
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74 JAMES L. HARBIN AND PATRICIA HUM
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84 ROCHELLE R. BRUNSON AND MARLENE
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92 HAMID KAZEROONY The Web site sta
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94 HAMID KAZEROONY EXHIBIT 2 Consol
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96 HAMID KAZEROONY EXHIBIT 6 Search
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98 HAMID KAZEROONY EXHIBIT 8 Top 25
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100 LORI RADULOVICH EBay Inc. encom
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102 LORI RADULOVICH A Trusted Onlin
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104 LORI RADULOVICH The success of
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106 LORI RADULOVICH ruled that eBay
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108 LORI RADULOVICH EXHIBIT 4 eBay
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110 LORI RADULOVICH EXHIBIT 7 eBay
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112 DONALD L. CROOKS, ROBERT S. GOO
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12 Krispy Kreme Doughnuts (KKD) —
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122 JOHN BURBRIDGE AND COLEMAN RICH
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124 JOHN BURBRIDGE AND COLEMAN RICH
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Page 1066: 130 SHARYNN TOMLIN 30,000 worldwide
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Page 1078: 136 SHARYNN TOMLIN Albertson’s, R
Page 1082: 14 The United States Postal Service
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Page 1090: 142 FRED AND FOREST DAVID EXHIBIT 4
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Page 1112: CASE 15 • NATIONAL RAILROAD PASSE
Page 1124: CASE 16 • GOODWILL OF SAN FRANCIS
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EXHIBIT 1 Ford Motor Company Corpor
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Motorcraft Ford purchased Electric
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carrying over $1 billion in goodwil
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In late 2009, Ford added shifts at
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the largest food company in the Uni
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way of creating some interactivity
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At year-end 2009, the company had s
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Prior to 2006, ConAgra was a holdin
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process, and Hershey extensively re
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EXHIBIT 2 The Hershey Company Conso
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acquisitions and joint ventures wit
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Cadbury Cadbury, formerly known as
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21 Johnson & Johnson — 2009 Shary
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EXHIBIT 2 J&J’s Mission Statement
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EXHIBIT 4 J&J Facilities Pharmaceut
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EXHIBIT 5 Large Competitors to J&J
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Even the largest pharmaceutical com
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EXHIBIT 8 J&J Balance Sheets 2006-2
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James Preston, the CEO of Avon, fou
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In their new promotions, the Avon l
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EXHIBIT 5 Avon’s Balance Sheets (
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EXHIBIT 7 Avon’s Executive Team A
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ut he also proved he knew how to ma
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Internal Factors Business Structure
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EXHIBIT 3 Molson Coors Consolidated
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The market for the target customer
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Another factor has been the current
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cost about $14 a case, or $5 less t
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Bradham followed the example of Coc
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EXHIBIT 2 PepsiCo 2008 Income State
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EXHIBIT 6 World Demand for the Nona
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EXHIBIT 7 World Chip Market In mill
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Coca-Cola will continue to concentr
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25 Pfizer, Inc. — 2009 Vijaya Nar
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EXHIBIT 1 Revenues by Key Products
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Pfizer’s consolidated Balance She
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EXHIBIT 7 Overview of Direct Compet
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number should reach $265 billion in
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EXHIBIT 1 Merck’s Recent Acquisit
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EXHIBIT 3 Merck’s Sales by Produc
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Industry Issues, Facts, and Figures
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prescriptions. Because the price of
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27 Nike, Inc. — 2010 1 Randy Harr
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The company has set a strategic goa
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EXHIBIT 5 Nike’s Income Before Ta
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Nike Customers and Price Points Bec
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Competition Competition in the athl
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eliminate quotas and tariff barrier
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The company acquired FrogTrader to
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CASE 28 • CALLAWAY GOLF COMPANY
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Pacific PTY Ltd., Callaway Golf (Sh
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3.5 percent for the first quarter o
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public and private golf clubs are e
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Standard Oil and created Standard o
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EXHIBIT 3 Statement of Income (mill
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Marketing Marketing in an energy co
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company in the world in 2007. The 2
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