strategic-management

Contents
Preface xvii
Acknowledgments xxiii
About the Author xxvii
Part 1
Overview of Strategic Management 2
Chapter 1
The Nature of Strategic Management 2
MCDONALD’S CORPORATION: DOING GREAT
IN A WEAK ECONOMY 4
What Is Strategic Management? 5
Defining Strategic Management 6 & Stages of
Strategic Management 6 & Integrating Intuition
and Analysis 7 & Adapting to Change 8
Key Terms in Strategic Management 9
Competitive Advantage 9 & Strategists 10 & Vision and Mission
Statements 11 & External Opportunities and Threats 11&
Internal Strengths and Weaknesses 12 & Long-Term Objectives 13
& Strategies 13 & Annual Objectives 13 & Policies 14
The Strategic-Management Model 14
Benefits of Strategic Management 16
Financial Benefits 17 & Nonfinancial Benefits 18
Why Some Firms Do No Strategic Planning 18
Pitfalls in Strategic Planning 19
Guidelines for Effective Strategic Management 19
Comparing Business and Military Strategy 21
THE COHESION CASE: MCDONALD’S
CORPORATION—2009 27
ASSURANCE OF LEARNING EXERCISES 37
Assurance of Learning Exercise 1A: Gathering Strategy
Information 37
Assurance of Learning Exercise 1B: Strategic Planning
for My University 37
Assurance of Learning Exercise 1C: Strategic Planning
at a Local Company 38
Assurance of Learning Exercise 1D: Getting Familiar with SMCO 38
Part 2
Strategy Formulation 40
Chapter 2
The Business Vision and Mission 40
WAL-MART: DOING GREAT IN A WEAK ECONOMY 42
What Do We Want to Become? 43
What Is Our Business? 43
Vision versus Mission 45 & The Process of Developing Vision
and Mission Statements 46
Importance (Benefits) of Vision and Mission
Statements 47
A Resolution of Divergent Views 48
Characteristics of a Mission Statement 49
A Declaration of Attitude 49 & A Customer
Orientation 50 & Mission Statement Components 51
Writing and Evaluating Mission Statements 53
ASSURANCE OF LEARNING EXERCISES 56
Assurance of Learning Exercise 2A: Evaluating Mission
Statements 56
Assurance of Learning Exercise 2B: Writing a Vision and Mission
Statement for McDonald’s Corporation 56
Assurance of Learning Exercise 2C: Writing a Vision and Mission
Statement for My University 57
Assurance of Learning Exercise 2D: Conducting Mission Statement
Research 57
Chapter 3
The External Assessment 58
DUNKIN' BRANDS, INC.: DOING GREAT IN A WEAK
ECONOMY 60
The Nature of an External Audit 61
Key External Forces 61 & The Process of Performing an External
Audit 62
The Industrial Organization (I/O) View 63
Economic Forces 63
Social, Cultural, Demographic, and Natural Environment
Forces 66
Political, Governmental, and Legal Forces 68
Technological Forces 69
Competitive Forces 71
Competitive Intelligence Programs 72 & Market Commonality
and Resource Similarity 74
Competitive Analysis: Porter’s Five-Forces
Model 74
Rivalry Among Competing Firms 75 & Potential Entry of
New Competitors 76 & Potential Development of Substitute
Products 77 & Bargaining Power of Suppliers 77 & Bargaining
Power of Consumers 77
Sources of External Information 78
Forecasting Tools and Techniques 78
Making Assumptions 79
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