strategic-management

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2 MERNOUSH BANTON Disney Consumer Products 1. Disney Hard_Lines 2. Disney Soft_Lines 3. Disney Toys 4. Disney Publishing 5. Disney Press 6. Disney Editions Improvement, expanded Disney’s television base. For the first time, Disney moved into publishing, forming Hyperion Books, Hyperion Books for Children, and Disney Press, which released books on Disney and non-Disney subjects. In 1991, Disney purchased Discover magazine, the leading consumer science monthly. As a totally new venture, Disney was awarded, in 1993, the franchise for a National Hockey League team, the Mighty Ducks of Anaheim. In 1992, Disneyland Paris opened in France. Disney successfully completed many projects throughout the 1990s by venturing into Broadway shows, opening up to 725 Disney Stores, acquiring the California Angels baseball team to add to its hockey team, opening Disney’s Wide World of Sports in Walt Disney World, and acquiring Capital Cities/ABC. From 2000 to 2007, Disney created new attractions in its theme parks, produced many successful films, opened new hotels, and built Hong Kong Disneyland. Internal Issues EXHIBIT 1 Disney’s Corporate Structure Organizational Structure and Mission As indicated in Exhibit 1, Disney operates using a <strong>strategic</strong> business unit (SBU) type organizational structure. Note that Disney’s four SBUs consist of (1) Disney Consumer Products, (2) Studio Entertainment, (3) Parks and Resorts, and (4) Media Networks and Broadcasting. Disney’s mission statement is “To be one of the world’s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.” Disney does not have a vision statement. Studio Entertainment 1. Walt Disney Pictures 2. Touchstone Pictures 3. Miramax Films 4. Buena Vista Home Entertainment 5. Buena Vista Theatrical Productions 6. Walt Disney Records 7. Buena Vista Records 8. Hollywood Records 9. Lyric Street Records 10. Pixar Studio Walt Disney Company Parks and Resorts 1. Walt Disney World 2. Disneyland 3. Tokyo Disney 4. Disneyland Paris 5. Hong Kong Disneyland 6. Disney Cruise Line 7. Disney Vacation Club Media Networks Broadcasting 1. Disney-ABC Television 2. ESPN Inc. 3. Walt Disney Internet Group 4. ABC-Owned Television Stations 5. ABC Radio
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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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310 PART 5 • KEY STRATEGIC-MANAGE
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CHAPTER 11 Global/International Iss
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Page 758: PART 6 Strategic-Management Case An
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Page 786: 360 INDEX Finkelstein, Sydney, 167
Page 790: 362 INDEX Thai, Kim, 167, 280 Thomp
Page 794: 364 INDEX E Economic forces, 63, 33
Page 798: 366 INDEX Q OSPM, 192-196 Quality (
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Page 812: EXHIBIT 2 Consolidated Income State
Page 816: EXHIBIT 4 Revenue and Operating Inc
Page 820: EXHIBIT 7 Disney’s Domestic Broad
Page 824: The company also has been hosting V
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Page 836: insurance costs were equally challe
Page 840: EXHIBIT 2 Merryland Amusement Park
Page 844: The Screamer was one of the first c
Page 848: Altria’s specific funding conditi
Page 852: CASE 2 • MERRYLAND AMUSEMENT PARK
Page 856: 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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