strategic-management

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Internal Issues Organizational Structure MCD’s top leadership has seen some turnover recently. The position of controller stands vacant, and the McDonald’s USA group currently includes new executives to head its East and West Divisions. Exhibit 3 provides a list of MCD’s top leadership as well as the firm’s organizational chart. Note that MCD’s operations are organized into a geographical structure with four key segments. These four segments are (1) McDonald’s—USA, (2) McDonald’s—Europe, (3) McDonald’s— APMEA (Asia/Pacific, Middle East, and Africa), and (4) McDonald’s—Other Countries and Corporate. Finances In addition to the steady growth in the number of restaurants, MCD exhibited strong financial performance by geographic segment between 2008 and 2009, even as the worldwide economic crisis negatively impacted MCD’s key competitors. As shown in Exhibit 4, revenues and operating margins in the three key segments (United States, Europe, and APMEA) rose steadily in 2006 through 2008, offsetting declines in the “Other and Corporate” segment. MCD delivers consistently good performance, making it a darling for investors. In April 2009, major industry analysts rated MCD as a “buy,” suggesting low levels of risk for investors. MCD’s EXHIBIT 3 McDonald’s Corporation: Executive Officers and Organizational Chart Jeffrey P. Stratton, Executive Vice President– Chief Restaurant Officer Gloria Santona, Corporate Executive Vice President, General Counsel, and Secretary Jose Armario, Group President- McDonalds Canada and Latin America Jim Johanessen, President, Central Division for McDonald’s USA James A. Skinner, Vice Chairman and Chief Executive Officer Richard Floersch, Executive Vice President and Chief Human Resources Officer Source: http:/www.aboutmcdonalds.com/mcd/our_company/bios.html Timothy J. Fenton, President, McDonald’s Asia/Pacific, Middle East and Africa Karen King, East Division for McDonald’s USA Ralph Alvarez, President and Chief Operating Officer Peter J. Bensen, Executive Vice President and Chief Financial Officer Janice Fields, Executive Vice President and Chief Operating Officer, McDonald’s USA Steve Plotkin, West Division for McDonald’s USA THE COHESION CASE 29 Mary N. Dillon, Corporate Executive Vice President & Global Chief Marketing Officer Denis Hennequin, President of McDonald’s Europe Donald Thompson, President of McDonald’s USA
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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
Page 74: 4 PART 1 • OVERVIEW OF STRATEGIC
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3. Fred David, “How Companies Def
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Instructions Step 1 Refer back to p
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The Nature of an External Audit The
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Once information is gathered, it sh
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as much when the value of the dolla
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United States in 2000. Americans ag
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TABLE 3-6 Some Political, Governmen
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Competitive Forces The top U.S. com
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A recent article in the Wall Street
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TABLE 3-10 Intensity of Competition
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aw materials, possession of patents
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A sense of the future permeates all
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total weighted score is 1.0. The av
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A major responsibility of strategis
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11. M. J. Chen, “Competitor Analy
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Assurance of Learning Exercise 3C D
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the state of Washington, where it h
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Performing an internal audit requir
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The RBV has continued to grow in po
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An organization’s culture should
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The organizing function of manageme
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should examine various methods, suc
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goods companies. Test marketing can
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TABLE 4-5 Excellent Web Sites to Ob
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FIGURE 4-3 A Financial Ratio Trend
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TABLE 4-6 A Summary of Key Financia
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FIGURE 4-6 A Before and After Break
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TABLE 4-8 Implications of Various S
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TABLE 4-9 R&D Spending at Ten Sampl
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esults are printed. Individuals can
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FIGURE 4-7 An Example Value Chain f
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CHAPTER 4 • THE INTERNAL ASSESSME
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6. If you and a partner were going
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Noble, Charles H., and Rajiv K. Sin
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Instructions Step 1 Join with two o
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includes such models such as Passat
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ottom-line performance are especial
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TABLE 5-4 Alternative Strategies De
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Integration Strategies Forward inte
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• When the advantages of stable p
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These five guidelines indicate when
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investment. Pursuing unrelated dive
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The largest U.S. chemical company b
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TABLE 5-6 Recent Divestitures Paren
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These three guidelines indicate whe
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leadership strategy successfully, a
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a focus strategy may concentrate on
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to minimize risk. Joint ventures an
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Cross-border merger and acquisition
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First Mover Advantages First mover
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Medical Organizations The $200 bill
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De-integration (p. 140) Differentia
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37. Robert Davis, “Net Empowering
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Instructions Step 1 Go to your coll
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Source: Shutterstock “Notable Quo
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On June 9, 2009, Apple did however
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FIGURE 6-2 The Strategy-Formulation
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Rival firms that copy ideas, innova
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environment may not be revealed in
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FIGURE 6-5 Example Strategy Profile
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The Boston Consulting Group (BCG) M
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Cows were yesterday’s Stars. Cash
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FIGURE 6-9 The Internal-External (I
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develop both geographic and product
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TABLE 6-6 The Quantitative Strategi
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4 = highly attractive. By attractiv
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strategy issues that face an enterp
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example, boards could require CEOs
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gic decisions, but they should neve
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38. Rank BusinessWeek’s “princi
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ASSURANCE OF LEARNING EXERCISES Ass
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CHAPTER 6 • STRATEGY ANALYSIS AND
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• How has the role of the board c
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Source: Shutterstock, Photographer
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operating policy encourages all emp
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CHAPTER 7 • IMPLEMENTING STRATEGI
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FIGURE 7-6 Typical Top Managers of
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Kaplan, Robert S., and David P. Nor
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Assurance of Learning Exercise 7C U
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Source: Shutterstock/AJT “Notable
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FIGURE 8-2 CHAPTER 8 • IMPLEMENTI
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FIGURE 8-3 40.0 36.0 32.0 28.0 24.0
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Current Readings CHAPTER 8 • IMPL
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FIGURE 9-1 A Comprehensive Strategi
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TABLE 9-2 Examples of Organizationa
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TABLE 9-3 A Strategy-Evaluation Ass
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CHAPTER 9 • STRATEGY REVIEW, EVAL
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Published Sources of Strategy-Evalu
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Contingency Planning CHAPTER 9 •
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12. American Accounting Association
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Source: Ivan Cholakov Gostock “No
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CHAPTER 10 • BUSINESS ETHICS/SOCI
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Conclusion Key Terms and Concepts B
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FIGURE 11-1 A Comprehensive Strateg
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8. A firm’s power and prestige in
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A Weak Economy A weak economy still
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dramatically across cultures. For e
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5. Executives in India are used to
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Issues for Review and Discussion 1.
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CHAPTER 11 • GLOBAL/INTERNATIONAL
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“Notable Quotes” "Two heads are
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The Need for Specificity Do not mak
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The Comprehensive Written Analysis
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Answering Questions It is best to f
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25. Let someone else read and criti
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Oral Presentation—Step 4 External
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INDEX NAME A Abetti, Pier, 281 Acoh
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Martin, Karla L., 305 Mason, Charlo
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SUBJECT A Accounting (see Finance/A
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Advantages and disadvantages, 332 I
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Sustained competitive advantage, 9
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Strategic Management CASES
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1 Walt Disney Company — 2009 Mern
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EXHIBIT 2 Consolidated Income State
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EXHIBIT 4 Revenue and Operating Inc
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EXHIBIT 7 Disney’s Domestic Broad
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The company also has been hosting V
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television production, and syndicat
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investment is required in such prod
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insurance costs were equally challe
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EXHIBIT 2 Merryland Amusement Park
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The Screamer was one of the first c
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Altria’s specific funding conditi
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CASE 2 • MERRYLAND AMUSEMENT PARK
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EXHIBIT 7 Kansas Employment Summary
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Much of JetBlue’s business model
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CASE 3 • JETBLUE AIRWAYS CORPORAT
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EXHIBIT 4 JetBlue Corporation: Cons
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EXHIBIT 6 Airline Bookings 2008 Boo
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EXHIBIT 9 Direct Competitor Compari
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4 AirTran Airways, Inc. — 2009 Ch
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EXHIBIT 1 AirTran’s Leadership Te
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EXHIBIT 2 Airline Quality Rating Ra
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EXHIBIT 5 AirTran’s Selected Fina
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EXHIBIT 7 Income Statement (all num
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EXHIBIT 10 AirTran’s Top Domestic
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“AirTran Airways Launches Buy-On-
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Divisions of the Company For FY2008
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EXHIBIT 3 The Three Largest Small-B
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EXHIBIT 5 Family Dollar, by State a
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EXHIBIT 6 Family Dollar’s Consoli
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6 Wal-Mart Stores, Inc. — 2009 Am
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EXHIBIT 2 Consolidated Balance Shee
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EXHIBIT 3 End-of-Year Store Count W
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EXHIBIT 4 Wal-Mart’s Organization
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Sam’s Clubs Sam’s Clubs are mem
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everyday. With this technology, Wal
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Action (EEO/AA) employer, but it ha
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7 Whole Foods Market, Inc. — 2009
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product sales accounted for approxi
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grocery store sector of retail was,
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EXHIBIT 1 Whole Foods Market, Inc.,
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EXHIBIT 4 Whole Foods Properties (a
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8 Macy’s, Inc. — 2009 Rochelle
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EXHIBIT 1 Macy’s Divisional Organ
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Macy’s recently launched a series
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(10,860) and 12,000 more than J.C.
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9 Yahoo! Inc. — 2009 Hamid Kazero
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EXHIBIT 1 Consolidated Statements o
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EXHIBIT 3 Yahoo! Revenues by Groups
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EXHIBIT 7 Yahoo! versus Google Comp
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10 eBay Inc. — 2009 Lori Radulovi
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By 2009, eBay has attained customiz
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Bill Me Later, acquired by eBay Inc
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to gains sales by referring custome
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EXHIBIT 3 eBay Consolidated Income
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EXHIBIT 6 eBay Supplemental Operati
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11 Wells Fargo Corporation — 2009
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EXHIBIT 2 Wells Fargo/Wachovia U.S.
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EXHIBIT 3 Wells Fargo’s Income St
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EXHIBIT 5 Wells Fargo—Business Se
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EXHIBIT 7 Wells Fargo versus Rivals
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high-quality southern-style doughnu
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contain a doughnut-making productio
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Mission and Vision The current comp
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All stores are required to have a s
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13 Starbucks Corporation — 2009 S
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Our Coffee It has always been, and
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EXHIBIT 3 Starbucks’ Balance Shee
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EXHIBIT 4 Segment Financial Data Se
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Conclusion Starbucks continues to b
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EXHIBIT 1 USPS Summary Financial Da
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EXHIBIT 2 USPS Operating Expenses (
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CASE 14 • THE UNITED STATES POSTA
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EXHIBIT 10 USPS Vehicle Inventory (
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EXHIBIT 13 USPS Operating Statistic
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EXHIBIT 13 USPS Operating Statistic
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EXHIBIT 1 Amtrak Route Map SEATTLE
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CASE 15 • NATIONAL RAILROAD PASSE
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CASE 16 • GOODWILL OF SAN FRANCIS
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EXHIBIT 6 Goodwill Revenue Growth R
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wooden shed with the words “Harle
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notes, due in 2014. The money will
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84 percent, 80 percent, and 79 perc
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EXHIBIT 4 Income Statements (2006-2
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net income were down 2.3 percent an
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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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