Transcription of Strategic Management Model - MIM - Home
1 Strategic Management ModelGatheringInformationSocietalEnviron ment:General forcesNaturalEnvironment:Resources andclimateTaskEnvironment:Industry analysisInternal:Strengths andWeaknessesStructure:Chain of commandCulture:Beliefs, expectations,valuesResources:Assets, skills,competencies,knowledgeExternal:Op portunitiesand ThreatsDeveloping Long-range PlansMissionReason forexistenceObjectivesWhatresults to accomplishby whenStrategiesPlan toachieve themission &objectivesPoliciesBroadguidelinesfor decisionmakingEnvironmentalScanning:Stra tegyFormulation:Feedback/Learning: Make corrections as neededPutting Strategy into ActionMonitoringPerformanceProgramsActiv itiesneeded to accomplisha planBudgetsCost of theprogramsProceduresSequenceof stepsneeded to do the jobPerformanceActual resultsStrategy Implementation:Evaluationand Control:THIRTEENTH EDITIONS trategicManagementandBusinessPolicyTOWAR D GLOBAL SUSTAINABILITYThis page intentionally left blank THIRTEENTH EDITIONT homas L.
2 WheelenFormerly with University of VirginiaTrinity College, Dublin, IrelandJ. David HungerIowa State University St. John s UniversityStrategicManagementandBusiness PolicyTOWARD GLOBAL SUSTAINABILITY with major contributions byKathryn E. WheelenAlan N. HoffmanBentley UniversityBostonColumbusIndianapolisNew YorkSan FranciscoUpper Saddle RiverAmsterdamCape TownDubaiLondonMadridMilanMunichParisMon trealTorontoDelhiMexico CitySa~o PauloSydneyHong KongSeoulSingaporeTaipeiTokyoEditorial Director:Sally YaganEditor in Chief:Eric SvendsenSenior Acquisitions Editor:Kim NorbutaEditorial Project Manager:Claudia FernandesEditorial Assistant:Carter AndersonDirector of Marketing:Patrice Lumumba JonesSenior Marketing Manager:Nikki Ayana JonesMarketing Assistant:Ian GoldSenior Managing Editor:Judy LealeProduction Project Manager:Becca GrovesSenior Operations Supervisor:Arnold VilaOperations Specialist:Cathleen PetersenCreative Director.
3 Blair Brown Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbookappear on the appropriate page within 2012, 2010, 2008, 2006, 2004 by Pearson Education, Inc., publishing as Prentice reserved. Manufactured in the United States of America. This publication is protected by Copyright, andpermission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrievalsystem, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, orlikewise. To obtain permission(s) to use material from this work, please submit a written request to PearsonEducation, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you mayfax your request to of the designations by manufacturers and sellers to distinguish their products are claimed as those designations appear in this book, and the publisher was aware of a trademark claim, the designationshave been printed in initial caps or all of Congress Cataloging-in-Publication DataWheelen, Thomas Management and business policy : toward global sustainability / Thomas L.
4 Wheelen, J. David Hunger. 13th bibliographical references and : 978-0-13-215322-5 ISBN-10: 0-13-215322-X1. Strategic Strategic planning Case Hunger, J. David, II. '012 dc222011013549 Senior Art Director/Supervisor:Janet SlowikCover Designer:Liz HarasymcukCover Photo:Courtesy of NASA/Shutterstock Interior Designer:Maureen EideMedia Project Manager, Editorial:Denise VaughnMedia Project Manager, Production:Lisa RinaldiFull-Service Project Management :Emily Bush,S4 Carlisle Publishing ServicesComposition:S4 Carlisle Publishing ServicesPrinter/Binder:Courier/Kendalvil leCover Printer:Lehigh-Phoenix Color/HagerstownText Font:10/12 Times Roman10987654321 ISBN 10:0-13-215322-XISBN 13: 978-0-13-215322-5 Dedicated toKATHY, RICHARD, AND TOMBETTY, KARI AND JEFF, MADDIE ANDMEGAN, SUZI AND NICK, SUMMER ANDKACEY, LORI, MERRY AND DYLAN, AND WOOFIE (ARF!)
5 SPECIAL DEDICATION TO KATHRYN WHEELEN:Kathryn has worked on every phase of the case section of this book. Until this edition, she also managedthe construction of the Case Instructor s Manual. She has done every job with a high level of dedicationand concern for both the case authors and the readers of this AKALADAVID ALEVYTARA ALGEODAVID ARMSTRONGMIKE ASKEWLAURA BAILEYNICK BAKERALICIA BARNESASHLEY BARNESALICE BARRSHERRY BARTELKENDRA BASSIJAY BECKENSTEINJOSH BECKENSTEINNICOLE BELLCATHY BENNETTKATIE BOLLINSCOTT BORDENJENNIFER BOYLEAUNDREA BRIDGESSUZANNE BROWNALEXANDRA BUEHLERKYLE BURDETTEWHITNEY CAMERONRUTH CARDIFFAMY CAREYMEGAN CARRICOMARTI CARTERANDREA CATULLO-LINNMEREDITH CHANDLERLUKE CLAEYSKAYLEE CLAYMOREBRIAN COBBJENNIFER COLETARYLL CONNOLLYTHAYNE CONRADDONNA CONROYCAITLIN COUTHENMEGAN JOY COWARTCYNDI CRIMMINSKASEY CROCKETTDAN CURRIERKELLY DANMICHLENE DAOUD HEALYSTACY DAVISFRANK DEL CASTILLOMEREDITH DELA ROSACHRIS DELANEYGEORGE DEVENNEYDANA DODGE (Frick)
6 KATE DOLDERBARBARA DONLONHEIDI DRESSLERTRACY DYBALSKIBRIAN DYKKIM ECKTRISH EICHHOLDKRISTIN ELBERKELSEY ELLIOTTKATIE EYNONGENEVA FARROWMARIA FELIBERTYMIKE FINERMICHELLE FINNERTYCANDAS FLETCHERROBERT FLORYMARCIA FLYNNBRAD FORRESTERMARGARET FRENCHSTEPHANIE FRITSONMARK GAFFNEYMICHELLE GARCIA-JUCHTERSYBIL GERAUDAMBER GOECKECAROLYN GOGOLINADAM GOLDSTEINBETH GRUNFELDMICAELA HAIDLEGREG HAITHDEMETRIUS HALLBRIDGET HANNENBERGBRYAN HARRELLTARA HARTLEYKENNY HARVEYALISON HASKINSCAROL HAWKSJENNIFER HEILBRUNNCHRISTINE HENRYLYNN HICKSJULIE HILDEBRANDDAUNNE HINGLEWENDI HOLLANDCHRISTY HUMENIUKGENE HUMENIUKANDREA IORIOSUSAN JACKSONPAM JEFFRIESBRITTANY JUCHNOWSKIANJALI JUSTUSCHERYL KABBLAURA KAPPESGIA KAULJULIE KESTENBAUMKARTAPURKH KHALSAKIM KIEHLERAMANDA KILLEENWALT KIRBYMARY-JO KOVACHROBYN KOVARGREG KRAMPDANIEL KRAUSSMICHAEL KRISANDAGINA LaMANTIACHAFIKA LANDERSDOROTHY LANDRYDUSTIN LANGEALIX LaSCOLAJOE LEEAPRIL LEMONSKIMBERLY LENAGHANThis book is also dedicated to the following Prentice Hall/Pearson salesrepresentatives who work so hard to promote this book.
7 ViTRICIA LISCIOBETH LUDWIGCARY LUNAJEMINA MACHARRYKATIE MAHANLAURA MANNPATRICIA MARTINEZCHRISTINA MASTROGIOVANNISONNY MATHARUTONY MATHIASBROOK MATTHEWSGEORGIA MAYALICIA MCAULIFFEMASON McCARTNEYKAREN McFADYENBRIAN McGARRYMICHELLE McGOVERNIRENE McGUINNESSRYAN McHENRYCRISTIN McMICHAELKEVIN MEASELLERAY MEDINAKELLY MEIERHOFERMOLLY MEINERSMATT MESAROSSHALON MILLERJAMI MINARDWILLIAM MINERICHEMILY MITCHELLJILINE MIXJULIE MORELRAFAEL MORENOTRACY MORSEOLIVIA MOUGDOLLY MUNIZTRICIA MURPHYLAUREN MURROWAMBER MYLLION (Parks)LINDA NELSONLYNNE NICLAIRBOB NISBETBETSY NIXONTOM NIXONLAURA NOAHCOLLEEN O DELLDEBBIE OGILIVESARI ORLANSKYDAVE OSTROWDARCEY PALMERKRISTINA PARKERTONI PAYNEJULIANNE PETERSONMELISSA PFISTNERCANDACE PINATAROBELEN POLTORAKELIZABETH POPIELARZMEGAN PRENDERGASTNICOLE PRICEJILL PROMESSOLENNY ANN RAPERJOSH RASMUSSENAMANDA RAYSONYA REEDRICHARD RESCHMARY RHODESBRAD RITTERDAN ROBERTSONMATT ROBINSONJENNIFER ROSENDOROTHY ROSENEKELLEEN ROWERICH ROWEPEYTON ROYTEKSENG SAECHAOSTEVE SARTORILYNDA SAXBOB SCANLONMARCUS SCHERERKIMBERLY SCHEYVINGHEIDI SCHICK (Miller)
8 BRAD SCHICKCHRIS SCHMIDTDEBORAH SCHMIDTMOLLY SCHMIDTCORRINA SCHULTZWHITNEY SEAGOCHRISTIANA SERLEMARTHA SERNASMARY SHAPIROBARBARA SHERRYKEN SHIPBAUGHDAVE SHULERJESSICA SIEMINSKILEA SILVERMANAUTUMN SLAUGHTERKRISTA SLAVICEKSCOTT SMITHADRIENNE SNOWLEE SOLOMONIDESBEN STEPHENDAN SULLIVANJOHN SULLIVANLORI SULLIVANSTEPHANIE SURFUSAMANDA SVECCHRISTINA TATESARAH THOMASABBY THORNBLADHKATY TOWNLEYELIZABETH TREPKOWSKITARA TRIPPCAROLYN TWISTJOE VIRZIAMANDA VOLZBRITNEY WALKERMADELEINE WATSONBEN WEBERDANIEL WELLSMARK WHEELERLIZ WILDESMICHELLE WILESBRIAN WILLIAMSERIN WILLIAMSCINDY WILLIAMSONRACHEL WILLISSIMON WONGKIMBERLY WOODSJACKIE WRIGHTHEATHER WRUBLESKYGEORGE YOUNGMARY ZIMMERMANNKACIE ZINDEDICATIONviiThis page intentionally left blank Brief ContentsPART ONEI ntroduction to Strategic Management and Business Policy 1 CHAPTER1 Basic Concepts of Strategic Management 2 CHAPTER2 Corporate Governance 42 CHAPTER3 Social Responsibility and Ethics in Strategic Management 70 PART TWOS canning the Environment 93 CHAPTER4 Environmental Scanning and Industry Analysis 94 CHAPTER5 Internal Scanning: Organizational Analysis 136 PART THREES trategy Formulation 173 CHAPTER6 Strategy Formulation: Situation Analysis and Business Strategy 174 CHAPTER7 Strategy Formulation: Corporate Strategy 204 CHAPTER8 Strategy Formulation: Functional Strategy and Strategic Choice 236 PART FOURS trategy Implementation and Control 269 CHAPTER9 Strategy Implementation: Organizing for Action 270 CHAPTER10 Strategy Implementation.
9 Staffing and Directing 300 CHAPTER11 Evaluation and Control 328 PART FIVEI ntroduction to Case Analysis 363 CHAPTER12 Suggestions for Case Analysis 364 PART SIX WEB CHAPTERSO ther Strategic IssuesWEB CHAPTERAS trategic Issues in Managing Technology & InnovationWEB CHAPTERBS trategic Issues in Entrepreneurial Ventures & Small BusinessesWEB CHAPTERCS trategic Issues in Not-For-Profit OrganizationsPART SEVENC ases in Strategic Management 1-1 GLOSSARY G-1 NAME INDEX I-1 SUBJECT INDEX I-7ixThis page intentionally left blank ContentsPreface xxixPART ONEI ntroduction to Strategic Management and Business Policy1 CHAPTER1 Basic Concepts of Strategic Study of Strategic Management5 Phases of Strategic Management5 Benefits of Strategic and Environmental Sustainability: Challenges to Strategic Management 7 Impact of Globalization8 Impact of Environmental Sustainability8 Global Issue:REGIONAL TRADE ASSOCIATIONS REPLACE NATIONAL TRADE BARRIERS 9 Environmental Sustainability Issue:PROJECTED EFFECTS OF CLIMATE CHANGE of Organizational a Learning Model of Strategic Management14 Environmental Scanning16 Strategy Formulation17 Strategy Highlight :DO YOU HAVE A GOOD MISSION STATEMENT?
10 18 Strategy Implementation21 Evaluation and Control22 Feedback/Learning of Strategy: Triggering Events23 Strategy Highlight :TRIGGERING EVENT AT UNILEVER Decision Making25 What Makes a Decision Strategic25 Mintzberg s Modes of Strategic Decision Making25 Strategic Decision-Making Process: Aid to Better Strategic Audit: Aid to Strategic of Chapter Summary29 APPENDIX Audit of a Corporation34xiCHAPTER2 Corporate of the Board of Directors45 Responsibilities of the Board45 Members of a Board of Directors48 Strategy Highlight :AGENCY THEORY VERSUS STEWARDSHIP THEORY IN CORPORATE GOVERNANCE 50 Nomination and Election of Board Members53 Organization of the Board54 Impact of the Sarbanes-Oxley Act on Corporate Governance55 Global Issue:CORPORATE GOVERNANCE IMPROVEMENTS THROUGHOUT THE WORLD 56 Trends in Corporate Role of Top Management58 Responsibilities of Top Management58 Environmental Sustainability Issue:CONFLICT AT THE BODY SHOP of Chapter Summary62 CHAPTER3 Social Responsibility and Ethics in Strategic Responsibilities of Strategic Decision Makers72 Responsibilities of a Business Firm72 Sustainability: More than Environmental?
