1

MGMT 40000D Strategic Management ? Winter 2022
Weekly Presentations Requirements & Rubric – Out of 10%

The purpose of this assignment is to demonstrate that you have a good understanding of the processes of strategic management, how to analyze,
develop, plan, implement and evaluate corporate strategy. In you assigned groups, students will be a assigned a case to analyse and present upon.

Deliverables: (all the information presented about your case must be recent and updated as much as possible)

1. Due by 11:30 p.m. before Presentation Day: ONE e-copy of the presentation (including all full names of team members) to be submitted in

PowerPoint Format on SLATE, NO links or Prezi are accepted. (?30% if not met)
2. Presentation time must be between 20 ? 25 minutes. If the presentation time exceeds 25 minutes, 1 mark will be deducted for each minute

over 25.

In your presentation you must apply to your case all the concepts, tools and matrices covered in class so far, the structure of the
presentation should approximately be:
? Executive Summary: a summary of all the important aspects of the presentation.
? Introduction: a brief description of the company and its background.
? Business Case: justify why this case is important.
? Competitive Advantage: describe your company?s existing sources of competitive advantage.
? Infographic: present important industry metrics and trends.
? Strategic Management Processes: describe and evaluate your company?s strategic management process
? Vision & Mission: evaluate and describe your company?s existing vision and mission statements and provide revised vision and mission.
? Culture and Ethics: describe your company?s organizational culture and its ethical codes of behaviour, and CSR practices.
? SWOT Analysis: list and describe the internal strengths & weaknesses, and the external threats & opportunities
? Matrices: apply ALL the matrices covered in the course so far to your case including: IFE, EFE, SWOT (10 factors each) and TOWS

Matching and pairing of factors, BCG, IE, GRAND, SPACE, QSPM, PORTER?S GENERIC, PORTER?S FIVE.
? Financial Analysis: describe the financial performance of your company based on your analysis of the three financial statements and

you must present 10 graphs for the ratios, each ratio graph covering a 5 year period. Show stock price over 5 years period. EPS/EBIT
analysis.

? Goals and Objectives: describe using SMART the new goals and objectives that your firm should achieve.
? Strategic analysis: where does your company stand now? What strategic move should it make next? Why?
? Strategy Selection: describe the strategies that your company may follow in order to achieve its objectives and how you selected them.
? Key Success Measures: describe the success measures used to mark performance

2

? Governance and Leadership: describe governance and leadership in your company
? Implementation and Evaluation: describe using a Gantt Chart your timeline for implementation and evaluation of the new strategies.
? Conclusions: what are the conclusions from this project?
? Recommendations: what are the recommendations?

(IN ADDITION TO ALL INSTRUCTIONS EXPLAINED IN CLASS) The requirements for the presentation are approximately:
? (40%) Presentation: Quality of writing and presentation, presentation skills, time management, clear voice, design and clarity of slides, contrast

of color, inserting slide numbers, message at beginning and end of presentation, teamwork, signalling the transfer of roles, no mechanics issues
and no mistakes in slides.

? (60%) Content: Comprehensive and Holistic. Quality and Depth of Analysis. Executive Summary, Clear Agenda, Introduction, Business Case,

Competitive Advantage, Strategic Management Processes, Vision & Mission, Culture and Ethics, SWOT Analysis, Financial Analysis, Goals
and Objectives, Strategy Selection, Key Success Measures, Governance and Leadership, Implementation and Evaluation, Conclusions,
Recommendations.

Assignment Rubric:
The marking scheme for EACH section is as follows as a percentage of full marks for that section:
? 100% ? all points covered and presented in a professional, concise, proper professional Canadian English (with proper grammar/spelling), in a

manner that convincingly and completely addresses the assignment questions/purpose
? 80% – minor points missing and/or incomplete and/or improper language in a manner that partially addresses the assignment questions/purpose
? 60% ? significant points missing and/or incomplete and/or improper language and or unquantifiable regarding the assignment questions/purpose
? 40% ? more than half the points missing and/or incomplete and/or improper and or unquantifiable ? 0 ? more than 75% of the points missing

and/or incomplete and/or improper and or unquantifiable
? 30% deduction for EACH assignment requirement/component not met.

Academic Honesty: Write your assignment completely in your own words. Express your own ideas in the assignment, not other peoples. Do not
use ideas or content from a source without quoting and referencing it. Do not provide ideas or material to another team. See the Sheridan Policies
for a complete description of plagiarism and its consequences.

Full-Circle Learning
MyLab?: Learning Full Circle for Marketing,

Management, Business Communication,
and Intro to Business

BEFORE
CLASS

AFTER
CLASS DURING

CLASS

Decision
Sims, Videos,
and Learning

Catalytics

DSMs,
pre-lecture
homework,

eText

Writing
Space, Video

Cases, Quizzes/
Tests

MyLab

Strategic
ManageMent
concepts and cases

A Competitive AdvAntAge ApproACh

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Fred r. David
Francis Marion University
Florence, South Carolina

Forest r. David
Strategic Planning Consultant

Sixteenth
edition

Boston Columbus Indianapolis New York San Francisco Amsterdam

Cape Town Dubai London Madrid Milan Munich Paris Montr?al Toronto Delhi

Mexico City S?o Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

Strategic
ManageMent
concepts and cases

A Competitive AdvAntAge ApproACh

globAl
edition

Vice President, Business Publishing: Donna Battista
Editor-in-Chief: Stephanie Wall
Acquisitions Editor: Daniel tylman
Editorial Assistant: Linda albelli
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Banerjee
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Director of Marketing, Digital Services and

Products: Jeanette Koskinas
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trudy Kimber

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Edition: Vikram Kumar
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Edition: Pallavi Pandit
Full-Service Project Management and Composition:

integra
Interior Designer: integra
Cover Image: ? Westend61 Premium/Shutterstock

acknowledgements of third party content appear on the appropriate page within the text, which constitutes an extension
of this copyright page with the exception of the photo of the chocolate candies that appear throughout the text and is
credited to Danny Kosmayer/123rf.

PearSOn aLWaYS Learning and MYManageMentLaB? are exclusive trademarks owned by Pearson
education, inc. or its affiliates in the U.S. and/or other countries.

Pearson Education Limited
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? Pearson education Limited 2017

the rights of Fred r. David and Forest r. David to be identified as the authors of this work have been asserted by them
in accordance with the copyright, Designs and Patents act 1988.

Authorized adaptation from the United States edition, entitled Strategic Management: A Competitive Advantage
Approach, Concepts and Cases, 16th Edition, ISBN 978-0-13-416784-8 by Fred r. David and Forest r. David,
published by Pearson Education ? 2017.

all rights reserved. no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any
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all trademarks used herein are the property of their respective owners. the use of any trademark in this text does not
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imply any affiliation with or endorsement of this book by such owners.

iSBn 10: 1-292-14849-7
iSBn 13: 978-1-292-14849-6

British Library Cataloguing-in-Publication Data
a catalogue record for this book is available from the British Library

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typeset in times nrMt Pro by integra Software Services, inc.
Printed and bound by Vivar in Malaysia

Brief Contents

5

Preface 15

Acknowledgments 26

About the Authors 27

Chapter 1 Strategic Management Essentials 31
The Cohesion Case: nesTl? s.a., 2016 (nsRGY) 54

Chapter 2 Outside-USA Strategic Planning 67
Chapter 3 Ethics, Social Responsibility, and Sustainability 95
Chapter 4 Types of Strategies 119
Chapter 5 Vision and Mission Analysis 157
Chapter 6 The Internal Audit 177
Chapter 7 The External Audit 217
Chapter 8 Strategy Generation and Selection 247
Chapter 9 Strategy Implementation 285
Chapter 10 Strategy Execution 321
Chapter 11 Strategy Monitoring 359

Appendix Guidelines for Case Analysis 385

Glossary 657

Name Index 667

Subject Index 673

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Contents

Preface 15

Acknowledgments 26

About the Authors 27

Chapter 1 Strategic Management Essentials 31
exemplaRY CompanY showCased: sinGapoRe aiRlines
limiTed (sia) 32
What Is a Cohesion Case? 33 ? Defining Strategic
Management 33

stages of strategic management 33
integrating intuition and analysis 34

Adapting to Change 35

Key Terms in strategic management 36
Competitive Advantage 36 ? Strategists 36

aCademiC ReseaRCh Capsule 1-1: when aRe Chief
sTRaTeGY offiCeRs (Csos) hiRed/appoinTed? 37
Vision and Mission Statements 38 ? External Opportunities and
Threats 38 ? Internal Strengths and Weaknesses 39 ? Long-
Term Objectives 40 ? Strategies 40 ? Annual
Objectives 40 ? Policies 41

The strategic-management model 42
Benefits of engaging in strategic management 43

aCademiC ReseaRCh Capsule 1-2: whaT aCTiviTY
is mosT impoRTanT in The sTRaTeGiC-manaGemenT
pRoCess? 43
Financial Benefits 44 ? Nonfinancial Benefits 45

why some firms do no strategic planning 45
pitfalls in strategic planning 46
Comparing Business and military strategy 46

impliCaTions foR sTRaTeGisTs 48
impliCaTions foR sTudenTs 49

Chapter summary 49
Key Terms and Concepts 50
Issues for Review and Discussion 50
mini-Case on RYanaiR limiTed (RYaaY): is RYanaiR?s
weBsiTe iTs sTRaTeGiC maRKeTinG Tool? 52
Current Readings 53
Endnotes 53
The Cohesion Case: nesTl? s.a., 2016 54
assuRanCe of leaRninG exeRCises 63
Assurance of Learning Exercise 1A: Assess Singapore Airlines? Most
Recent Quarterly Performance Data 63
Assurance of Learning Exercise 1B: Gather Strategy Information
on Nestl? S.A. 64
Assurance of Learning Exercise 1C: Get Familiar with the Free Excel
Student Template 64
Assurance of Learning Exercise 1D: Evaluate an Oral Student
Presentation 64

Assurance of Learning Exercise 1E: Strategic Planning
at Nestl? S.A. 65
Assurance of Learning Exercise 1F: Interview Local Strategists 65

Chapter 2 Outside-USA Strategic Planning 67
exemplaRY CompanY showCased: honda moToR
CompanY (hmC) 68

The nature of doing Business Globally 68
Multinational Firms 70 ? Different Languages
Globally 71 ? Labor Unions across Europe 71

aCademiC ReseaRCh Capsule 2-1: how manY lanGuaGes
aRe TheRe GloBallY? 71

advantages and disadvantages of doing
Business Globally 72
The Global Challenge 73
Tax Rates and Tax inversions 74

Tax Rates 74

aCademiC ReseaRCh Capsule 2-2: how do fiRms deCide
wheRe To expand? 74
Tax Inversions 76

american versus foreign Business Culture 76
Communication Differences across Countries 78

Business Culture across Countries 79
Mexico?s Business Culture 79 ? Japan?s Business
Culture 80 ? China?s Business Culture 81 ? India?s Business
Culture 82

Business Climate across Countries 82
Africa?s Business Climate 83 ? China?s Business
Climate 84 ? Brazil?s Business Climate 85 ? Indonesia?s
Business Climate 85 ? India?s Business Climate 85 ? Japan?s
Business Climate 86 ? Mexico?s Business Climate 86 ?
Vietnam?s Business Climate 87

impliCaTions foR sTRaTeGisTs 88
impliCaTions foR sTudenTs 88

Chapter summary 89
Key Terms and Concepts 89
Issues for Review and Discussion 89
assuRanCe of leaRninG exeRCises 90
Assurance of Learning Exercise 2A: Nestl? S.A. Wants to Enter Africa. Help
Them. 90
Assurance of Learning Exercise 2B: Assess Differences in Culture across
Countries 91
Assurance of Learning Exercise 2C: Honda Motor Company Wants to Do
Business in Vietnam. Help Them. 91
Assurance of Learning Exercise 2D: Does My University Recruit in Foreign
Countries? 92

mini-Case on aiRBus GRoup se (aiR.pa): how well is
aiRBus peRfoRminG GloBallY? 92
Current Readings 93
Endnotes 93

7

Chapter 3 Ethics, Social Responsibility, and
Sustainability 95

exemplaRY CompanY showCased: BanK audi s.a.l 96
why ?Good ethics is Good Business? 96

Does It Pay to Be Ethical? 97

aCademiC ReseaRCh Capsule 3-1: whaT Can we leaRn
fRom hiGh-peRfoRmanCe Companies? 98
How to Establish an Ethics Culture 99

aCademiC ReseaRCh Capsule 3-2: who is pRone To Be
uneThiCal in a Business? 99

whistle-Blowing, Bribery, and workplace Romance 100
Whistle-Blowing 100 ? Avoid Bribery 101 ? Workplace
Romance 102

social Responsibility and policy 103
aCademiC ReseaRCh Capsule 3-3: does iT paY To Be
soCiallY ResponsiBle? 104
Design and Articulate a Social Policy 104 ? Social Policies on
Retirement 104

environmental sustainability 105
What Firms Are the Best Stewards? 106 ? Sustainability
Reports 107 ? The Office of Environmental Affairs 108 ?
ISO 14000/14001 Certification 108

wildlife welfare 109
Food Suppliers and Animal Welfare 111

impliCaTions foR sTRaTeGisTs 111
impliCaTions foR sTudenTs 112

Chapter summary 112
Key Terms and Concepts 112
Issues for Review and Discussion 112
assuRanCe of leaRninG exeRCises 113
Assurance of Learning Exercise 3A: Sustainability and Nestl? 113
Assurance of Learning Exercise 3B: How Does My Municipality Compare
To Others on Being Pollution-Safe? 114
Assurance of Learning Exercise 3C: Compare Nestl? versus Mars, Inc. on
Social Responsibility 114
Assurance of Learning Exercise 3D: How Do You Rate Nestl?s
Sustainability Efforts? 114
Assurance of Learning Exercise 3E: The Ethics of Spying on
Competitors 115

mini-Case on eTihad aiRwaYs: how eThiCal and
susTainaBle is eTihad aiRwaYs? 116
Current Readings 116
Endnotes 117

Chapter 4 Types of Strategies 119
exemplaRY CompanY showCased: peTRonas
(pGas.Kl) 120

long-Term objectives 120
Characteristics and Benefits of Objectives 121 ? Financial versus
Strategic Objectives 121 ? Avoid Not Managing by Objectives 122

Types of strategies 122
Levels of Strategies 124

integration strategies 124
Forward Integration 125 ? Backward Integration 126 ?
Horizontal Integration 127

intensive strategies 128
Market Penetration 128 ? Market Development 128 ? Product
Development 129

diversification strategies 129
Related Diversification 130 ? Unrelated Diversification 130

defensive strategies 131
Retrenchment 131 ? Divestiture 132 ? Liquidation 133

michael porter?s five Generic strategies 134
Cost Leadership Strategies (Type 1 and Type 2) 135 ? Differentiation
Strategies (Type 3) 136 ? Focus Strategies (Type 4 and Type 5) 137

means for achieving strategies 138
Cooperation among Competitors 138 ? Joint Venture and
Partnering 138

aCademiC ReseaRCh Capsule 4-1: aRe inTeRnaTional
allianCes moRe effeCTive wiTh CompeTiToRs oR
nonCompeTiToRs? 139
Merger/Acquisition 140 ? Private-Equity Acquisitions 141

Tactics to facilitate strategies 142
First Mover Advantages 142 ? Outsourcing and Reshoring 142

strategic management in nonprofit, Governmental, and small
firms 144

Educational Institutions 144 ? Medical
Organizations 145 ? Governmental Agencies and
Departments 145 ? Small Firms 145

aCademiC ReseaRCh Capsule 4-2: whaT aTTRiBuTes do
GReaT enTRepReneuRs possess? 146
impliCaTions foR sTRaTeGisTs 146
impliCaTions foR sTudenTs 147

Chapter summary 147
Key Terms and Concepts 148
Issues for Review and Discussion 148
assuRanCe of leaRninG exeRCises 150
Assurance of Learning Exercise 4A: Market Development for
Petronas 150
Assurance of Learning Exercise 4B: Alternative Strategies
for Petronas 150
Assurance of Learning Exercise 4C: Private-Equity Acquisitions 150
Assurance of Learning Exercise 4D: The Strategies of Nestl? S.A.:
2015?2017 151
Assurance of Learning Exercise 4E: Lessons in Doing Business
Globally 151
Assurance of Learning Exercise 4F: What are Petronas? Strategies in
2015?2017? 151
Assurance of Learning Exercise 4G: What Strategies Are Most Risky? 151
Assurance of Learning Exercise 4H: Explore Bankruptcy 152
Assurance of Learning Exercise 4I: Examine Strategy Articles 152
Assurance of Learning Exercise 4J: Classify Some Strategies 152

mini-Case on TiGeR BRands limiTed: is TiGeR BRands
sTRaTeGiCallY ReadY To CompeTe and CoopeRaTe? 153
Current Readings 154
Endnotes 154

Chapter 5 Vision and Mission Analysis 157
exemplaRY CompanY showCased: samsunG eleCTRoniCs
Co. limiTed (ssnlf) 158

vision statements: what do we want to Become? 158
Vision Statement Analysis 159

mission statements: what is our Business? 160
The process of developing vision and mission statements 161
The importance (Benefits) of vision and mission
statements 162

8 COnTEnTS

aCademiC ReseaRCh Capsule 5-1: The mission sTaTemenT/
fiRm peRfoRmanCe linKaGe 162
A Resolution of Divergent Views 163

Characteristics of a mission statement 164
A Customer Orientation 165

Components of a mission statement 165
evaluating and writing mission statements 166

Two Mission Statements Critiqued 167 ? Five Mission Statements
Revised 167 ? Two Mission Statements Proposed 167

impliCaTions foR sTRaTeGisTs 169
impliCaTions foR sTudenTs 170

Chapter summary 170
Key Terms and Concepts 171
Issues for Review and Discussion 171
assuRanCe of leaRninG exeRCises 172
Assurance of Learning Exercise 5A: Examine Potential Changes Needed in
a Firm?s Vision/Mission 172
Assurance of Learning Exercise 5B: Studying an Alternative View of
Mission Statement Content 172
Assurance of Learning Exercise 5C: Evaluate Mission
Statements 173
Assurance of Learning Exercise 5D: Evaluate the Vision and Mission
Statements of Unilever, Nestl?s Competitor 173
Assurance of Learning Exercise 5E: Selecting the Best Vision and Mission
Statements in a Given Industry 174
Assurance of Learning Exercise 5F: Write an Excellent Vision and Mission
Statement for Novartis AG 174

mini-Case on CiTizen holdinGs CompanY limiTed (Cizn):
does CiTizen holdinGs? have a CleaR vision oR
mission? 174
Current Readings 175
Endnotes 175

Chapter 6 The Internal Audit 177
exemplaRY CompanY showCased: vodafone GRoup
plC (vod) 178

The nature of an internal audit 178
Key Internal Forces 179 ? The Process of Performing
an Internal Audit 180 ? The Resource-Based View 181

aCademiC ReseaRCh Capsule 6-1: does RBv TheoRY
deTeRmine diveRsifiCaTion TaRGeTs? 181

integrating strategy and Culture 182
management 184

Planning 184 ? Organizing 185 ? Motivating 186
? Staffing 186 ? Controlling 187 ? Management Audit
Checklist of Questions 187

marketing 188
Customer Analysis 188 ? Selling Products
and Services 188 ? Product and Service
Planning 189 ? Pricing 189 ? Distribution 190
? Marketing Research 190 ? Cost/Benefit
Analysis 190 ? Marketing Audit Checklist of Questions 191

finance and accounting 191
Finance/Accounting Functions 191 ? Financial
Ratios 192 ? Breakeven Analysis 195 ? Finance/Accounting
Audit Checklist 197

production/operations 197
Production/Operations Audit Checklist 198

Research and development 199

Internal and External Research and Development 199 ? Research
and Development Audit 200

management information systems 200
Managing Voluminous Consumer Data 200

aCademiC ReseaRCh Capsule 6-2: new TRends in
manaGinG BiG daTa 201
Management Information Systems Audit 201

value Chain analysis 201
Benchmarking 202

The internal factor evaluation matrix 204
impliCaTions foR sTRaTeGisTs 206
impliCaTions foR sTudenTs 208

Chapter summary 209
Key Terms and Concepts 209
Issues for Review and Discussion 210
assuRanCe of leaRninG exeRCises 211
Assurance of Learning Exercise 6A: Develop a Corporate IFE Matrix for
Volkswagen Group 211
Assurance of Learning Exercise 6B: Should Volkswagen Deploy More (or
Less) Resources Outside of Europe? 211
Assurance of Learning Exercise 6C: Apply Breakeven Analysis 212
Assurance of Learning Exercise 6D: Perform a Financial Ratio Analysis for
Nestl? 212
Assurance of Learning Exercise 6E: Construct an IFE Matrix for
Nestl? 212
Assurance of Learning Exercise 6F: Analyze Your College or University?s
Internal Strategic Situation 213

mini-Case on BanK of China limiTed (BaChf): whaT is The
naTuRe of BanK of China?s GRowTh? 213
Current Readings 214
Endnotes 214

Chapter 7 The External Audit 217
exemplaRY CompanY showCased: miChelin
(mGddf) 218

The purpose and nature of an external audit 219
Key External Forces 219 ? The Process of Performing an External
Audit 220 ? The Industrial Organization (I/O) View 221

Ten external forces That affect organizations 221
Economic Forces 221 ? Social, Cultural, Demographic, and
Natural Environment Forces 223 ? Political, Governmental, and
Legal Forces 224 ? Technological Forces 226 ? Competitive
Forces 227

porter?s five-forces model 229
Rivalry Among Competing Firms 230 ? Potential Entry
of New Competitors 231 ? Potential Development
of Substitute Products 231 ? Bargaining Power of
Suppliers 231 ? Bargaining Power of Consumers 232

sources of external information 232
forecasting Tools and Techniques 232

Making Assumptions 233 ? Business Analytics 234

The external factor evaluation matrix 235
The Competitive profile matrix 236

impliCaTions foR sTRaTeGisTs 239
impliCaTions foR sTudenTs 240

Chapter summary 240
Key Terms and Concepts 241
Issues for Review and Discussion 241

COnTEnTS 9

assuRanCe of leaRninG exeRCises 242
Assurance of Learning Exercise 7A: Michelin and Africa: An External
Assessment 242
Assurance of Learning Exercise 7B: Preparing a CPM for Michelin Based
on Countries Rather Than Companies 243
Assurance of Learning Exercise 7C: Develop Divisional Michelin EFE
Matrices 243
Assurance of Learning Exercise 7D: Developing an EFE Matrix for Nestl?
S.A. 243
Assurance of Learning Exercise 7E: The External Audit 244
Assurance of Learning Exercise 7F: Develop a Competitive Profile Matrix
for Michelin 244
Assurance of Learning Exercise 7G: Develop a Competitive Profile Matrix
for Nestl? 244
Assurance of Learning Exercise 7H: Analyzing Your College or University?s
External Strategic Situation 244

mini-Case on woolwoRThs limiTed (wow): is
woolwoRThs losinG iTs edGe To aldi? 245
Current Readings 245
Endnotes 245

Chapter 8 Strategy Generation
and?Selection 247

exemplaRY CompanY showCased: unileveR plC (ul) 248
The strategy analysis and Choice process 248

The Process of Generating and Selecting Strategies 248

The strategy-formulation analytical framework 250
The Input Stage 251 ? The Matching Stage 251
? The Decision Stage 251

The swoT matrix 251
The strategic position and action evaluation
(spaCe) matrix 254
The Boston Consulting Group (BCG) matrix 258
The internal-external (ie) matrix 261

aCademiC ReseaRCh Capsule 8-1: a new ie maTRix 264
The Grand strategy matrix 265
The decision stage: The Quantitative strategic planning matrix
(Qspm) 266

Positive Features and Limitations of the QSPM 269

Cultural aspects of strategy analysis and Choice 270
The politics of strategy analysis and Choice 270
Boards of directors: Governance issues 271

aCademiC ReseaRCh Capsule 8-2: how manY BoaRd of
diReCToRs memBeRs aRe ideal? 273
impliCaTions foR sTRaTeGisTs 274
impliCaTions foR sTudenTs 274

Chapter summary 275
Key Terms And Concepts 276
Issues for Review and Discussion 276
assuRanCe of leaRninG exeRCises 278
Assurance of Learning Exercise 8A: Should Unilever Penetrate Southeast
Asia Further? 278
Assurance of Learning Exercise 8B: Perform a SWOT Analysis for
Unilever?s Global Operations 278
Assurance of Learning Exercise 8C: Prepare a BCG Matrix for Unilever 278

Assurance of Learning Exercise 8D: Develop a SWOT Matrix for Nestl?
S.A. 279
Assurance of Learning Exercise 8E: Develop a SPACE Matrix for Nestl?
S.A. 279
Assurance of Learning Exercise 8F: Develop a BCG Matrix for Nestl?
S.A. 279
Assurance of Learning Exercise 8G: Develop a QSPM for
Nestl? S.A. 280
Assurance of Learning Exercise 8H: Develop a SPACE Matrix for
Unilever 280
Assurance of Learning Exercise 8I: Develop a BCG Matrix for your College
or University 280
Assurance of Learning Exercise 8J: Develop a QSPM for a Company That
You Are Familiar With 280
Assurance of Learning Exercise 8K: Formulate Individual Strategies 281
mini-Case on hYundai moToR CompanY (hYmTf): how
would a BCG foR hYundai looK liKe? 281
Current Readings 282
Endnotes 282

Chapter 9 Strategy Implementation 285
exemplaRY CompanY showCased: RoYal duTCh shell
plC (Rds.a) 286

strategic marketing issues 286
social media marketing 287
market segmentation 289
product positioning and perceptual mapping 292

Author Commentary 293

strategic finance/accounting issues 295
eps/eBiT analysis: acquire needed Capital 296
projected financial statements 300

Projected Financial Statement Analysis for D. R. Horton 302

Corporate valuation 304
aCademiC ReseaRCh Capsule 9-1: when should we
oveRpaY To aCQuiRe a fiRm? 306
Corporate Valuation Methods 306

ipos, Cash management, and Corporate Bonds 308
Go Public With An IPO? 308 ? Keep Cash Offshore is Earned
Offshore? 309 ? Issue Corporate Bonds for What Purpose? 309

strategic Research and development (R&d) issues 309
strategic management information
systems (mis) issues 311

Mobile Tracking of Employees 312

impliCaTions foR sTRaTeGisTs 312
impliCaTions foR sTudenTs 313
Mobile Apps for Customers 313

Chapter summary 313
Key Terms and Concepts 314
Issues for Review and Discussion 314
assuRanCe of leaRninG exeRCises 316
Assurance of Learning Exercise 9A: Prepare an EPS/EBIT Analysis for
Royal Dutch Shell Plc 316
Assurance of Learning Exercise 9B: Develop a Product-Positioning Map
for Nestl? S.A. 316
Assurance of Learning Exercise 9C: Perform an EPS/EBIT Analysis for
Nestl? S.A. 316

10 COnTEnTS

Assurance of Learning Exercise 9D: Prepare Projected Financial
Statements for Nestl? S.A. 317
Assurance of Learning Exercise 9E: Determine the Cash Value of
Nestl? S.A. 317
Assurance of Learning Exercise 9F: Develop a Product-Positioning Map
for Your College 317
Assurance of Learning Exercise 9G: Do Banks Require Projected Financial
Statements? 318

mini-Case on TaTa moToRs limiTed (TTm) 318
Current Readings 319
Endnotes 319

Chapter 10 Strategy Execution 321
exemplaRY CompanY showCased: aCCenTuRe
plC (aCn) 322

Transitioning from formulating to implementing
strategies 322
The need for Clear annual objectives 324
The need for Clear policies 327
allocate Resources and manage Conflict 327

Allocate Resources 327 ? Manage Conflict 329

match structure with strategy 329
Types of organizational structure 330

The Functional Structure 330 ? The Divisional
Structure 331 ? The Strategic Business Unit (SBU)
Structure 333 ? The Matrix Structure 334

dos and don?ts in developing organizational
Charts 335

aCademiC ReseaRCh Capsule 10-1: whY is The Coo
posiTion BeinG deleTed in manY oRGanizaTions? 337

strategic production/operations issues 338
Restructuring and Reengineering 338 ? Manage Resistance
to Change 339 ? Decide Where and How to Produce
Goods 339 ? Employee Stock Ownership Plans (ESOPs) 340

strategic human Resource issues 341
Linking Performance and Pay to Strategy 341 ? Balance Work Life
and Home Life 343 ? Develop a Diverse Workforce 344

aCademiC ReseaRCh Capsule 10-2: how do women vs.
men Ceos peRfoRm? 345
Use Caution in Hiring a Rival?s Employees 345 ? Create a Strategy-
Supportive Culture 348 ? Use Caution in Monitoring Employees?
Social Media 349 ? Develop a Corporate Wellness Program 349

impliCaTions foR sTRaTeGisTs 351
impliCaTions foR sTudenTs 352

Chapter summary 353
Key Terms and Concepts 353
Issues for Review and Discussion 353
assuRanCe of leaRninG exeRCises 355
Assurance of Learning Exercise 10A: Develop an Organizational Chart for
Accenture Plc 355
Assurance of Learning Exercise 10B: Assess Accenture?s Philanthropy
Efforts 355
Assurance of Learning Exercise 10C: Revise Nestl?s Organizational
Chart 355

Assurance of Learning Exercise 10D: Explore Objectives 355
Assurance of Learning Exercise 10E: Understanding Your University?s
Culture 356

mini-Case on hoRizon phaRma (hznp): does hoRizon
phaRma have a foRmal sTRuCTuRe? 356
Current Readings 357
Endnotes 357

Chapter 11 Strategy Monitoring 359
exemplaRY CompanY showCased: Bhp
BilliTon (Bhp) 360

The strategy-evaluation process, Criteria, and methods 360
The Process of Evaluating Strategies 363

The Three strategy-evaluation activities 364
Reviewing Bases of Strategy 364 ? Measuring Organizational
Performance 366 ? Taking Corrective Actions 367

The Balanced scorecard 369
published sources of strategy-evaluation information 371
Characteristics of an Effect