31 Oct Read Case Study – Pg. 877-880 (attached file) Include the following Business Strategy concepts in the assessment Case Study #34 Burger King: 1. Identify th
Read Case Study – Pg. 877-880 (attached file)
Include the following Business Strategy concepts in the assessment Case Study #34 Burger King:
1. Identify the type of Business Model Burger King uses based on the case study information.
2. Identify the Mission Statement of Burger King
3. Identify the problems with Burger King based on the case study information
4. Conduct a SWOT Analysis of Burger King based on the case study information
5. Recommend a New Strategy for Burger King based on the case study information
750-800 words
Due: November 8
Strategic Management Model
Gathering Information
Societal Environment: General forces
Natural Environment: Resources and
climate
Task Environment:
Industry analysis
Internal: Strengths and Weaknesses
Structure: Chain of command
Culture: Beliefs, expectations,
values
Resources: Assets, skills, competencies,
knowledge
External: Opportunities
and Threats
Developing Long-range Plans
Mission
Reason for existence Objectives
What results to accomplish by when
Strategies
Plan to achieve the mission & objectives
Policies
Broad guidelines for decision making
Environmental Scanning:
Strategy Formulation:
Feedback/Learning: Make corrections as needed
Putting Strategy into Action
Monitoring Performance
Programs
Activities needed to accomplish a plan
Budgets
Cost of the programs Procedures
Sequence of steps needed to do the job
Performance
Actual results
Strategy Implementation:
Evaluation and Control:
THIRTEENTH EDITION
Strategic Management
and Business Policy
TOWARD GLOBAL SUSTAINABILITY
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THIRTEENTH EDITION
Thomas L. Wheelen Formerly with University of Virginia Trinity College, Dublin, Ireland
J. David Hunger Iowa State University St. John’s University
Strategic Management
and Business Policy
TOWARD GLOBAL SUSTAINABILITY
with major contributions by
Kathryn E. Wheelen
Alan N. Hoffman Bentley University
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Library of Congress Cataloging-in-Publication Data Wheelen, Thomas L.
Strategic management and business policy : toward global sustainability / Thomas L. Wheelen, J. David Hunger. — 13th ed.
p. cm. Includes bibliographical references and index. ISBN-13: 978-0-13-215322-5 ISBN-10: 0-13-215322-X
1. Strategic planning. 2. Strategic planning—Case studies. 3. Sustainability. I. Hunger, J. David, II. Title.
HD30.28.W43 2012 658.4'012—dc22
2011013549
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10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-215322-X ISBN 13: 978-0-13-215322-5
Dedicated to
KATHY, RICHARD, AND TOM BETTY, KARI AND JEFF, MADDIE AND MEGAN, SUZI AND NICK, SUMMER AND KACEY, LORI, MERRY AND DYLAN, AND WOOFIE (ARF!).
SPECIAL DEDICATION TO KATHRYN WHEELEN:
Kathryn has worked on every phase of the case section of this book. Until this edition, she also managed the construction of the Case Instructor’s Manual. She has done every job with a high level of dedication
and concern for both the case authors and the readers of this book.
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vi
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MOLLY SCHMIDT
CORRINA SCHULTZ
WHITNEY SEAGO
CHRISTIANA SERLE
MARTHA SERNAS
MARY SHAPIRO
BARBARA SHERRY
KEN SHIPBAUGH
DAVE SHULER
JESSICA SIEMINSKI
LEA SILVERMAN
AUTUMN SLAUGHTER
KRISTA SLAVICEK
SCOTT SMITH
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BEN STEPHEN
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MADELEINE WATSON
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ERIN WILLIAMS
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KACIE ZIN
DEDICATION vii
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Brief Contents
PART ONE Introduction to Strategic Management and Business Policy 1
C H A P T E R 1 Basic Concepts of Strategic Management 2
C H A P T E R 2 Corporate Governance 42
C H A P T E R 3 Social Responsibility and Ethics in Strategic Management 70
PART TWO Scanning the Environment 93
C H A P T E R 4 Environmental Scanning and Industry Analysis 94
C H A P T E R 5 Internal Scanning: Organizational Analysis 136
PART THREE Strategy Formulation 173
C H A P T E R 6 Strategy Formulation: Situation Analysis and Business Strategy 174
C H A P T E R 7 Strategy Formulation: Corporate Strategy 204
C H A P T E R 8 Strategy Formulation: Functional Strategy and Strategic Choice 236
PART FOUR Strategy Implementation and Control 269
C H A P T E R 9 Strategy Implementation: Organizing for Action 270
C H A P T E R 1 0 Strategy Implementation: Staffing and Directing 300
C H A P T E R 1 1 Evaluation and Control 328
PART FIVE Introduction to Case Analysis 363
C H A P T E R 1 2 Suggestions for Case Analysis 364
PART SIX WEB CHAPTERS Other Strategic Issues
W E B C H A P T E R A Strategic Issues in Managing Technology & Innovation
W E B C H A P T E R B Strategic Issues in Entrepreneurial Ventures & Small Businesses
W E B C H A P T E R C Strategic Issues in Not-For-Profit Organizations
PART SEVEN Cases in Strategic Management 1-1
GLOSSARY G-1
NAME INDEX I-1
SUBJECT INDEX I-7
ix
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Contents
Preface xxix
PART ONE Introduction to Strategic Management and Business Policy 1
C H A P T E R 1 Basic Concepts of Strategic Management 2
1.1 The Study of Strategic Management 5
Phases of Strategic Management 5
Benefits of Strategic Management 6
1.2 Globalization and Environmental Sustainability: Challenges to Strategic Management 7
Impact of Globalization 8
Impact of Environmental Sustainability 8
Global Issue: REGIONAL TRADE ASSOCIATIONS REPLACE NATIONAL TRADE BARRIERS 9
Environmental Sustainability Issue: PROJECTED EFFECTS OF CLIMATE CHANGE 12
1.3 Theories of Organizational Adaptation 12
1.4 Creating a Learning Organization 13
1.5 Basic Model of Strategic Management 14
Environmental Scanning 16
Strategy Formulation 17
Strategy Highlight 1.1: DO YOU HAVE A GOOD MISSION STATEMENT? 18
Strategy Implementation 21
Evaluation and Control 22
Feedback/Learning Process 23
1.6 Initiation of Strategy: Triggering Events 23
Strategy Highlight 1.2: TRIGGERING EVENT AT UNILEVER 24
1.7 Strategic Decision Making 25
What Makes a Decision Strategic 25
Mintzberg’s Modes of Strategic Decision Making 25
Strategic Decision-Making Process: Aid to Better Decisions 27
1.8 The Strategic Audit: Aid to Strategic Decision-Making 28
1.9 End of Chapter Summary 29
APPENDIX 1.A Strategic Audit of a Corporation 34
xi
C H A P T E R 2 Corporate Governance 42
2.1 Role of the Board of Directors 45
Responsibilities of the Board 45
Members of a Board of Directors 48
Strategy Highlight 2.1: AGENCY THEORY VERSUS STEWARDSHIP THEORY IN CORPORATE GOVERNANCE 50
Nomination and Election of Board Members 53
Organization of the Board 54
Impact of the Sarbanes-Oxley Act on U.S. Corporate Governance 55
Global Issue: CORPORATE GOVERNANCE IMPROVEMENTS THROUGHOUT THE WORLD 56
Trends in Corporate Governance 57
2.2 The Role of Top Management 58
Responsibilities of Top Management 58
Environmental Sustainability Issue: CONFLICT AT THE BODY SHOP 59
2.3 End of Chapter Summary 62
C H A P T E R 3 Social Responsibility and Ethics in Strategic Management 70
3.1 Social Responsibilities of Strategic Decision Makers 72
Responsibilities of a Business Firm 72
Sustainability: More than Environmental? 75
Corporate Stakeholders 75
Environmental Sustainability Issue: THE DOW JONES SUSTAINABILITY INDEX 76
Strategy Highlight 3.1: JOHNSON & JOHNSON CREDO 78
3.2 Ethical Decision Making 79
Some Reasons for Unethical Behavior 79
Strategy Highlight 3.2: UNETHICAL PRACTICES AT ENRON AND WORLDCOM EXPOSED BY “WHISTLE-BLOWERS” 80
Global Issue: HOW RULE-BASED AND RELATIONSHIP-BASED GOVERNANCE SYSTEMS AFFECT ETHICAL BEHAVIOR 81
Encouraging Ethical Behavior 83
3.3 End of Chapter Summary 86
Ending Case for Part One: BLOOD BANANAS 90
PART TWO Scanning the Environment 93
C H A P T E R 4 Environmental Scanning and Industry Analysis 94
4.1 Environmental Scanning 98
Identifying External Environmental Variables 98
Environmental Sustainability Issue: MEASURING AND SHRINKING YOUR PERSONAL CARBON FOOTPRINT 100
xii CONTENTS
Global Issue: IDENTIFYING POTENTIAL MARKETS IN DEVELOPING NATIONS 107
Identifying External Strategic Factors 108
4.2 Industry Analysis: Analyzing the Task Environment 109
Porter’s Approach to Industry Analysis 110
Industry Evolution 114
Categorizing International Industries 114
International Risk Assessment 115
Strategic Groups 115
Strategic Types 117
Hypercompetition 117
Using Key Success Factors to Create an Industry Matrix 118
Strategy Highlight 4.1: MICROSOFT IN A HYPERCOMPETITIVE INDUSTRY 118
4.3 Competitive Intelligence 120
Sources of Competitive Intelligence 121
Strategy Highlight 4.2: EVALUATING COMPETITIVE INTELLIGENCE 122
Monitoring Competitors for Strategic Planning 122
4.4 Forecasting 123
Danger of Assumptions 123
Useful Forecasting Techniques 124
4.5 The Strategic Audit: A Checklist for Environmental Scanning 125
4.6 Synthesis of External Factors—EFAS 126
4.7 End of Chapter Summary 127
APPENDIX 4.A Competitive Analysis Techniques 133
C H A P T E R 5 Internal Scanning: Organizational Analysis 136
5.1 A Resource-Based Approach to Organizational Analysis 138
Core and Distinctive Competencies 138
Using Resources to Gain Competitive Advantage 139
Determining the Sustainability of an Advantage 140
5.2 Business Models 142
5.3 Value-Chain Analysis 143
Strategy Highlight 5.1: A NEW BUSINESS MODEL AT SMARTYPIG 144
Industry Value-Chain Analysis 145
Corporate Value-Chain Analysis 146
5.4 Scanning Functional Resources and Capabilities 147
Basic Organizational Structures 147
Corporate Culture: The Company Way 149
CONTENTS xiii
Global Issue: MANAGING CORPORATE CULTURE FOR GLOBAL COMPETITIVE ADVANTAGE: ABB VERSUS MATSUSHITA 150
Strategic Marketing Issues 151
Strategic Financial Issues 153
Strategic Research and Development (R&D) Issues 154
Strategic Operations Issues 156
Strategic Human Resource (HRM) Issues 158
Environmental Sustainability Issue: USING ENERGY EFFICIENCY FOR COMPETITIVE ADVANTAGE AND QUALITY OF WORK LIFE 161
Strategic Information Systems/Technology Issues 162
5.5 The Strategic Audit: A Checklist for Organizational Analysis 163
5.6 Synthesis of Internal Factors 164
5.7 End of Chapter Summary 165
Ending Case for Part Two: BOEING BETS THE COMPANY 170
PART THREE Strategy Formulation 173
C H A P T E R 6 Strategy Formulation: Situation Analysis and Business Strategy 174
6.1 Situation Analysis: SWOT Analysis 176
Generating a Strategic Factors Analysis Summary (SFAS) Matrix 176
Finding a Propitious Niche 177
Global Issue: SAB DEFENDS ITS PROPITIOUS NICHE 181
6.2 Review of Mission and Objectives 181
6.3 Generating Alternative Strategies by Using a TOWS Matrix 182
6.4 Business Strategies 183
Porter’s Competitive Strategies 183
Environmental Sustainability Issue: PATAGONIA USES SUSTAINABILITY AS DIFFERENTIATION COMPETITIVE STRATEGY 187
Cooperative Strategies 195
6.5 End of Chapter Summary 199
C H A P T E R 7 Strategy Formulation: Corporate Strategy 204
7.1 Corporate Strategy 206
7.2 Directional Strategy 206
Growth Strategies 207
Strategy Highlight 7.1: TRANSACTION COST ECONOMICS ANALYZES VERTICAL GROWTH STRATEGY 210
xiv CONTENTS
Global Issue: COMPANIES LOOK TO INTERNATIONAL MARKETS FOR HORIZONTAL GROWTH 212
Strategy Highlight 7.2: SCREENING CRITERIA FOR CONCENTRIC DIVERSIFICATION 215
Controversies in Directional Growth Strategies 216
Stability Strategies 217
Retrenchment Strategies 218
7.3 Portfolio Analysis 220
BCG Growth-Share Matrix 221
Environmental Sustainability Issue: GENERAL MOTORS AND THE ELECTRIC CAR 222
GE Business Screen 223
Advantages and Limitations of Portfolio Analysis 225
Managing a Strategic Alliance Portfolio 225
7.4 Corporate Parenting 226
Developing a Corporate Parenting Strategy 227
Horizontal Strategy and Multipoint Competition 228
7.5 End of Chapter Summary 229
C H A P T E R 8 Strategy Formulation: Functional Strategy and Strategic Choice 236
8.1 Functional Strategy 238
Marketing Strategy 238
Financial Strategy 239
Research and Development (R&D) Strategy 241
Operations Strategy 242
Global Issue: INTERNATIONAL DIFFERENCES ALTER WHIRLPOOL’S OPERATIONS STRATEGY 243
Purchasing Strategy 244
Environmental Sustainability Issue: OPERATIONS NEED FRESH WATER AND LOTS OF IT! 245
Logistics Strategy 246
Human Resource Management (HRM) Strategy 246
Information Technology Strategy 247
8.2 The Sourcing Decision: Location of Functions 247
8.3 Strategies to Avoid 250
8.4 Strategic Choice: Selecting the Best Strategy 251
Constructing Corporate Scenarios 251
Process of Strategic Choice 257
CONTENTS xv
8.5 Developing Policies 258
8.6 End of Chapter Summary 259
Ending Case for Part Three: KMART AND SEARS: STILL STUCK IN THE MIDDLE? 266
PART FOUR Strategy Implementation and Control 269
C H A P T E R 9 Strategy Implementation: Organizing for Action 270
9.1 Strategy Implementation 272
9.2 Who Implements Strategy? 273
9.3 What Must Be Done? 273
Developing Programs, Budgets, and Procedures 274
Environmental Sustainability Issue: FORD’S SOYBEAN SEAT FOAM PROGRAM 274
Strategy Highlight 9.1: THE TOP TEN EXCUSES FOR BAD SERVICE 277
Achieving Synergy 278
9.4 How Is Strategy to Be Implemented? Organizing for Action 278
Structure Follows Strategy 279
Stages of Corporate Development 280
Organizational Life Cycle 283
Advanced Types of Organizational Structures 285
Reengineering and Strategy Implementation 288
Six Sigma 289
Designing Jobs to Implement Strategy 290
Strategy Highlight 9.2: DESIGNING JOBS WITH THE JOB CHARACTERISTICS MODEL 291
9.5 International Issues in Strategy Implementation 291
International Strategic Alliances 292
Stages of International Development 293
Global Issue: MULTIPLE HEADQUARTERS: A SIXTH STAGE OF INTERNATIONAL DEVELOPMENT? 294
Centralization Versus Decentralization 294
9.6 End of Chapter Summary 296
C H A P T E R 1 0 Strategy Implementation: Staffing and Directing 300
10.1 Staffing 302
Staffing Follows Strategy 303
Selection and Management Development 305
Strategy Highlight 10.1: HOW HEWLETT-PACKARD IDENTIFIES POTENTIAL EXECUTIVES 306
Problems in Retrenchment 308
International Issues in Staffing 309
xvi CONTENTS
10.2 Leading 311
Managing Corporate Culture 311
Environmental Sustainability Issue: ABBOTT LABORATORIES’ NEW PROCEDURES FOR GREENER COMPANY CARS 312
Action Planning 316
Management by Objectives 318
Total Quality Management 318
International Considerations in Leading 319
Global Issue: CULTURAL DIFFERENCES CREATE IMPLEMENTATION PROBLEMS IN MERGER 321
10.3 End of Chapter Summary 322
C H A P T E R 1 1 Evaluation and Control 328
11.1 Evaluation and Control in Strategic Management 330
11.2 Measuring Performance 332
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