Strategic Management and Business Policy

by: Wheelen, Thomas L.; Hunger, J. David

ISBN 13:
9780130651211
ISBN 10:
0130651214
Edition: 8th
Format: Hardcover
Copyright: 01/01/2002
Publisher: Pearson College Div
Newer Edition

Note: Not guaranteed to come with supplemental materials (access cards, study guides, lab manuals, CDs, etc.)

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Summary

For senior-level and introductory graduate-level courses in Strategic Management and Business Policy. This comprehensive text offers an engaging look into new and traditional strategic management topics. Its thorough coverage helps students develop an understanding of the wide range of theories and research available in this fieldfrom competitive strategy and industry analysis to environmental trends and ethics. Integration of international issues throughout provides an essential understanding of global economics and its impact on business activities in any location.

PART ONE Introduction to Strategic Management and Business Policy

(50)

Basic Concepts of Strategic Management

(24)

The Study of Strategic Management

(3)

Phases of Strategic Management

(1)

Benefits of Strategic Management

(1)

Globalization and Electronic Commerce: Challenges to Strategic Management

(2)

Impact of Globalization

(1)

Impact of Electronic Commerce

(1)

Global Issue: Regional Trade Associations Replace National Trade Barriers

(1)

Theories of Organizational Adaptation

(1)

Creating a Learning Organization

(1)

Basic Model of Strategic Management

(7)

Environmental Scanning

(1)

Strategy Formulation

(5)

Strategy Implementation

(1)

Evaluation and Control

(1)

Feedback/Learning Process

(1)

Initiation of Strategy: Triggering Events

(2)

Internet Issue: Triggering Event at Sun Microsystems

(1)

Strategic Decision Making

(4)

What Makes a Decision Strategic

(1)

Mintzberg's Models of Strategic Decision Making

(1)

Strategic Decision-Making Process: Aid to Better Decisions

(3)

Impact of the Internet on Strategic Management

(3)

Corporate Governance and Social Responsibility

(26)

Corporate Governance: Role of the Board of Directors

(10)

Responsibilities of the Board

(2)

Members of a Board of Directors

(1)

Theory As It Applies: Agency Theory Versus Stewardship Theory in Corporate Governance

(2)

Global Issue: POSCO Adds a Non-Korean Director

(1)

Nomination and Election of Board Members

(1)

Organization of the Board

(1)

Trends in Corporate Governance

(1)

Corporate Governance: Role of Top Management

(2)

Responsibilities of Top Management

(2)

Social Responsibilities of Strategic Decision Makers

(3)

Responsibilities of a Business Firm

(2)

Corporate Stakeholders

(1)

Ethical Decision Making

(4)

Some Reasons for Unethical Behavior

(2)

Encouraging Ethical Behavior

(2)

Impact of the Internet on Corporate Governance and Social Responsibility

(6)

Internet Issue: Governments Act to Protect Society by Regulating the Internet

(4)

Part Ending Video Case: Newbury Comics, Inc.

(1)

PART TWO Scanning the Environment

(57)

Environmental Scanning and Industry Analysis

(29)

Environmental Scanning

(8)

Identifying External Environmental Variables

(6)

Global Issue: Identifying Potential Markets in Developing Nations

(1)

Identifying External Strategic Factors

(1)

Industry Analysis: Analyzing the Task Environment

(10)

Porter's Approach to Industry Analysis

(4)

Industry Evolution

(1)

Categorizing International Industries

(1)

International Risk Assessment

(1)

Strategic Groups

(1)

Strategic Types

(1)

Hypercompetition

(2)

Using Key Success Factors to Create an Industry Matrix

(1)

Competitive Intelligence

(1)

Forecasting

(2)

Danger of Assumptions

(1)

Useful Forecasting Techniques

(1)

Synthesis of External Factors---EFAS

(1)

Impact of the Internet on Environmental Scanning and Industry Analysis

(6)

Internet Issue: Competitor Information Available on the Internet

(4)

Internal Scanning: Organizational Analysis

(28)

A Resource-Based Approach to Organizational Analysis

(3)

Using Resources to Gain Competitive Advantage

(1)

Determining the Sustainability of an Advantage

(2)

Value Chain Analysis

(3)

Industry Value Chain Analysis

(1)

Corporate Value Chain Analysis

(2)

Scanning Functional Resources

(13)

Basic Organizational Structures

(1)

Corporate Culture: The Company Way

(1)

Strategic Marketing Issues

(1)

Global Issue: ABB Uses Corporate Culture as a Competitive Advantage

(1)

Strategic Financial Issues

(1)

Strategic Research and Development (R & D) Issues

(3)

Strategic Operations Issues

(2)

Strategic Human Resource Management (HRM) Issues

(2)

Strategic Information Systems/Technology Issues

(1)

Internet Issue: The Growing Global Internet Economy

(1)

The Strategic Audit: A Checklist for Organizational Analysis

100

(1)

Synthesis of Internet Factors---IFAS

101

(1)

Impact of the Internet on Internal Scanning and Organizational Analysis

102

(6)

Part Ending Video Case: Newbury Comics, Inc.

106

(2)

PART THREE Strategy Formulation

108

(83)

Strategy Formulation: Situation Analysis and Business Strategy

108

(28)

Situation Analysis: SWOT Analysis

109

(5)

Generating a Strategic Factors Analysis Summary (SFAS) Matrix

110

(2)

Finding a Propitious Niche

112

(1)

Global Issue: SAB Defends Its Propitious Niche

113

(1)

Review of Mission and Objectives

114

(1)

Generating Alternative Strategies Using a TOWS Matrix

114

(1)

Business Strategies

115

(16)

Porter's Competitive Strategies

117

(9)

Cooperative Strategies

126

(4)

Internet Issue: Business to Business at Cisco Systems

130

(1)

Impact of the Internet on Business Strategy

131

(5)

Strategy Formulation: Corporate Strategy

136

(28)

Corporate Strategy

137

(1)

Directional Strategy

138

(13)

Growth Strategies

138

(3)

Theory As It Applies: Transaction Cost Economics Analyzes Vertical Growth Strategy

141

(2)

International Entry Options

143

(1)

Global Issue: Wal-Mart Enters International Markets

144

(2)

Controversies in Directional Growth Strategies

146

(1)

Stability Strategies

146

(2)

Retrenchment Strategies

148

(3)

Portfolio Analysis

151

(5)

BCG Growth-Share Matrix

151

(2)

GE Business Screen

153

(1)

International Portfolio Analysis

154

(1)

Advantages and Limitations of Portfolio Analysis

155

(1)

Corporate Parenting

156

(3)

Developing a Corporate Parenting Strategy

156

(1)

Parenting-Fit Matrix

157

(2)

Horizontal Strategy and Multipoint Competition

159

(1)

Impact of the Internet on Corporate Strategy

159

(5)

Internet Issue: Global Online Population

160

(4)

Strategy Formulation: Functional Strategy and Strategic Choice

164

(27)

Functional Strategy

165

(12)

Core Competencies

165

(1)

The Sourcing Decision: Where Should Functions Be Housed?

166

(2)

Marketing Strategy

168

(1)

Financial Strategy

169

(1)

Research and Development (R & D) Strategy

170

(1)

Operations Strategy

171

(1)

Global Issue: International Differences Alter Whirlpool's Operations Strategy

172

(1)

Purchasing Strategy

173

(1)

Logistics Strategy

174

(1)

Internet Issue: Staples Uses Internet to Replenish Inventory from 3M

175

(1)

Human Resources Management (HRM) Strategy

175

(1)

Information Systems Strategy

176

(1)

Strategies to Avoid

177

(1)

Strategic Choice: Selection of the Best Strategy

177

(7)

Constructing Corporate Scenarios

178

(5)

Process of Strategic Choice

183

(1)

Development of Policies

184

(1)

Impact of the Internet on Functional Strategy

185

(6)

Part Ending Video Case: Newbury Comics, Inc.

190

(1)

PART FOUR Strategy Implementation and Control

191

(86)

Strategy Implementation: Organizing for Action

191

(26)

Strategy Implementation

192

(1)

Who Implements Strategy?

193

(1)

What Must Be Done?

194

(3)

Developing Programs, Budgets, and Procedures

194

(2)

Achieving Synergy

196

(1)

How is Strategy to be Implemented? Organizing for Action

197

(12)

Structure Follows Strategy

197

(1)

Stages of Corporate Development

198

(3)

Organizational Life Cycle

201

(1)

Internet Issue: The Founder of the Modem Blocks Transition to Stage II

202

(2)

Advanced Types of Organizational Structures

204

(3)

Reengineering and Strategy Implementation

207

(1)

Designing Jobs to Implement Strategy

208

(1)

Theory As It Applies: Designing Jobs with the Job Characteristics Model

209

(1)

International Issues in Strategy Implementation

209

(3)

Stages of International Development

210

(1)

Centralization Versus Decentralization

210

(1)

Global Issue: FedEx Provides the Infrastructure for Companies to Become Global

211

(1)

Impact of the Internet on Organizational Design and Structure

212

(5)

Strategy Implementation: Staffing and Directing

217

(24)

Staffing

218

(7)

Staffing Follows Strategy

219

(2)

Selection and Management Development

221

(1)

Problems in Retrenchment

222

(2)

International Issues in Staffing

224

(1)

Leading

225

(10)

Managing Corporate Culture

225

(4)

Action Planning

229

(2)

Management By Objectives

231

(1)

Total Quality Management

232

(1)

International Considerations in Leading

232

(2)

Global Issue: Cultural Differences Create Implementation Problems in Merger

234

(1)

Impact of the Internet on Staffing and Leading in Organizations

235

(6)

Static Intranet Applications

235

(1)

Dynamic Intranet Applications

236

(1)

Internet Issue: Virtual Teams Use the Net to Operate at Long Distance

236

(1)

Advantages and Disadvantages of Intranets

237

(4)

Evaluation and Control

241

(36)

Evaluation and Control in Strategic Management

243

(1)

Measuring Performance

243

(13)

Appropriate Measures

243

(1)

Types of Controls

243

(2)

Activity-Based Costing

245

(1)

Primary Measures of Corporate Performance

246

(2)

Internet Issue: ``Eyeballs'' and ``MUUs'': Questionable Performance Measures

248

(4)

Primary Measures of Divisional and Functional Performance

252

(2)

International Measurement Issues

254

(1)

Global Issue: The Impact of Piracy on International Trade

255

(1)

Strategic Information Systems

256

(1)

Enterprise Resource Planning (ERP)

256

(1)

Divisional and Functional IS Support

257

(1)

Problems in Measuring Performance

257

(2)

Short-Term Orientation

258

(1)

Goal Displacement

258

(1)

Guidelines for Proper Control

259

(1)

Strategic Incentive Management

260

(2)

Using the Strategic Audit to Evaluate Corporate Performance

262

(1)

Impact of the Internet on Evaluation and Control

262

(15)

Appendix 10.A Strategic Audit of a Corporation

265

(9)

Part Ending Video Case: Newbury Comics, Inc.

274

(3)

PART FIVE Other Strategic Issues

277

(64)

Strategic Issues in Managing Technology and Innovation

277

(24)

Role of Management

278

(2)

Environmental Scanning

280

(4)

External Scanning

280

(3)

Internal Scanning

283

(1)

Resource Allocation Issues

283

(1)

Strategy Formulation

284

(6)

Global Issue: Impact of R&D on Competitive Advantage in China

285

(1)

Product Versus Process R&D

285

(1)

Technology Sourcing

286

(2)

Importance of Technological Competence

288

(1)

Product Portfolio

289

(1)

Strategy Implementation

290

(4)

Developing an Innovative Entrepreneurial Culture

290

(1)

Organizing for Innovation: Corporate Entrepreneurship

291

(3)

Evaluation and Control

294

(2)

Internet Issue: Software Company Challenges Hackers to Attack Its Product

295

(1)

Impact of the Internet on Managing Technology and Innovation

296

(5)

Strategic Issues in Entrepreneurial Ventures and Small Businesses

301

(23)

Importance of Small Business and Entrepreneurial Ventures

301

(3)

Global Issue: Entrepreneurship: Some Countries are More Supportive Than Others

302

(1)

Definition of Small-Business Firms and Entrepreneurial Ventures

303

(1)

The Entrepreneur as a Strategist

303

(1)

Use of Strategic Planning and Strategic Management

304

(4)

Degree of Formality

304

(1)

Usefulness of Strategic Management Model

305

(1)

Usefulness of Strategic Decision-Making Process

305

(3)

Issues in Corporate Governance

308

(1)

Issues in Environmental Scanning and Strategy Formulation

309

(4)

Sources of Innovation

309

(2)

Factors Affecting a New Venture's Success

311

(1)

Internet Issue: Web Site Provides Local Business a Global Presence

312

(1)

Issues in Strategy Implementation

313

(3)

Substages of Small Business Development

313

(2)

Transfer of Power and Wealth in Family Businesses

315

(1)

Issues in Evaluation and Control

316

(2)

Impact of the Internet on Entrepreneurial Ventures and Small Businesses

318

(6)

Strategic Issues in Not-For-Profit Organizations

324

(17)

Why Not-For-Profit?

325

(1)

Global Issue: Which is Best for Society: Business or Not-For-Profit?

326

(1)

Importance of Revenue Source

326

(3)

Sources of Not-For-Profit Revenue

327

(1)

Patterns of Influence on Strategic Decision Making

327

(2)

Usefulness of Strategic Management Concepts and Techniques

329

(1)

Impact of Constraints on Strategic Management

329

(3)

Impact on Strategy Formulation

330

(1)

Impact on Strategy Implementation

331

(1)

Impact on Evaluation and Control

332

(1)

Popular Not-For-Profit Strategies

332

(3)

Strategic Piggybacking

332

(1)

Mergers

333

(1)

Strategic Alliances

333

(2)

Impact of the Internet on Not-For-Profit Organizations

335

(6)

Taxation

335

(1)

Improvement of Government Services

335

(1)

Impact on Other Not-For-Profit Organizations

336

(1)

Internet Issue: The Not-For-Profit Organizations That Rule the Internet

336

(5)

PART SIX Introduction to Case Analysis

341

(1)

Suggestions for Case Analysis

341

(1)

The Case Method

342

(1)

Researching the Case Situation

342

(1)

Financial Analysis: A Place to Begin

342

(6)

Analyzing Financial Statements

343

(3)

Common-Size Statements

346

(1)

Z-Value, Index of Sustainable Growth, and Free Cash Flow

346

(1)

Useful Economic Measures

347

(1)

Global Issue: Why Consider Inflation in Case Analysis?

348

(1)

Format for Case Analysis: The Strategic Audit

348

(3)

Impact of the Internet on Case Analysis

351

(1)

Finding a Company's Web Site

351

(1)

Internet Issue: Top 10 Internet Scams

352

(1)

Using a Search Engine

352

(1)

Finding More Information

352

(3)

Appendix 14.A Resources for Case Research

355

(2)

Appendix 14.B Suggested Case Analysis Methodology Using the Strategic Audit

357

(4)

Appendix 14.C Example of Student-Written Strategic Audit

361

PART SEVEN Cases in Strategic Management

section A Corporate Governance: Questions of Executive Leadership

The Recalcitrant Director at Byte Products, Inc.: Corporate Legality Versus Corporate Responsibility

(1)

Dan R. Dalton

Richard A. Cosier

Cathy A. Enz

A plant location decision forces a confrontation between the Board of Directors and the CEO regarding an issue of social responsibility and ethics

The Wallace Group

(1)

Laurence J. Stybel

Managers question the strategic direction of the company and how it is being managed by its founder and CEO. Company growth has not only resulted in disorganization and confusion among employees, but in poorer overall performance. How should the board deal with the founder of the company?

section B Environmental Issues: Questions of Social Responsibility and Ethics

The Audit

(1)

John A. Kilpatrick

Gamewell D. Gantt

George A. Johnson

A questionable accounting practice by the company being audited puts a new CPA in a difficult position. Although the practice is clearly wrong, she is being pressured by her manager to ignore it because it is common in the industry

Brookstone Hospice: Heel or Heroine?

(1)

Shirley F. Olson

Sharon Meadows

A nursing supervisor of a hospice is fired because she violated a company policy and sent a terminally-ill patient to a hospital---thereby extending his life, but also reducing hospice profits

section C International Issues in Strategic Management

Singapore Telecom: Strategic Challenges in a Turbulent Environment

(1)

Loizos Heracleous

Kulwant Singh

The telecommunication industry is undergoing unprecedented change globally. How can a previously state-owned (and very successful) utility like Singapore Telecom successfully adapt to this turbulent environment?

Hewlett-Packard Company in Vietnam

(1)

Geok Theng Lau

With the United States lifting its embargo on Vietnam, this country's economic prospects were improving. John Peter, Marketing Manager of Hewlett-Packard's Asian operations, considered the Company's strategic options for doing business in this Southeast Asian country

The Body Shop International PLC: Anita Roddick, OBE

(1)

Ellie A. Fogarty

Joyce P. Vincelette

Thomas L. Wheelen

The Body Shop sells cosmetics worldwide through its franchised and company-owned retail outlets. Its founder, Anita Roddick, takes great pride in emphasizing the company's global corporate citizenship through its policies and corporate culture. Increasing competition and operational difficulties may soon force management to reconsider its expansion strategy and its socially responsible policies

Waterford Wedgwood Plc (2000): The Millennium

(1)

Thomas L. Wheelen

Edward Kasabov

Philip H. Anderson

Kathryn E. Wheelen

Waterford Crystal is a globally known, well-respected Irish maker of kitchenware. The Chairman of the Board reports on each of the company's 4 units: Waterford Crystal, Wedgwood, Rosenthal, and All-Clad. What strategies should be considered to continue the firm's success?

section D General Issues in Strategic Management

INDUSTRY ONE INTERNET/SOFTWARE

Larry J. Ellison---Entrepreneurial Spirit at Oracle Corporation (2000)

(1)

Joyce P. Vincelette

Ellie A. Fogarty

Thomas L. Wheelen

Oracle's application software suite had been having problems. Under the leadership of the company's founder, Larry Ellison, the firm developed an ``e-business suite'' of business applications that would hopefully address all of a typical customer's operational needs

Cisco Systems, Inc.

(1)

Michael I. Eizenberg

Donna M. Gallo

Irene Hagenbuck

Alan N. Hoffman

Due primarily to the increasing popularity of the Internet, this entrepreneurial company has grown rapidly to the point where it controls 80% of its market. With weaker competitors merging and forming strategic alliances with telecommunications giants, can Cisco continue its rapid growth?

Sun Microsystems, Inc. (2000)

(1)

Ellie A. Fogarty

Buffeted by intense competition and a slowing economy, Sun introduces a strategy of standardizing product components---reducing the number of system configurations to under 200 models. Sales and operations are restructured into globally oriented units

INDUSTRY TWO INTERNET COMPANIES (DOT-COMS)

dr.koop.com

(1)

Nicole Herskowitz

Fred Howard

Michael Iverson

Janet Mehlhop

Pilar Speer

Dr. Koop, former Surgeon General of the United States, Lent his name to this new company as a way of providing a trustworthy and comprehensive source of health care information and services to the general public via the Internet. This entrepreneurial company quickly became the largest Web-based health care service, but seemed unable to generate a profit

WingspanBank.com

(1)

Laura Cooke

Liza Hovey

Hyung Kim

Paul Rakouski

BankOne, a very successful U.S. bank, decided to create a separate electronic bank called WingspanBank.com to take advantage of increasing business activity on the Internet. The new bank had complete access to BankOne's resources, but encountered growing pains

INDUSTRY THREE COMPUTERS

Apple Computer, Inc. (2000): Here We Go Again

(1)

David B. Croll

Gordon P. Croll

Andrew J. Croll

Cofounder Steve Jobs returned to Apple to successfully implement a turnaround strategy to save the financially troubled firm. Just when Apple appears to be back on track, it issues a warning that 4th quarter sales would be lower than forecasted. With the stock price dropping from $53 to $26, analysts wonder if Apple again needs a new strategy

Carly Fiorina: The Reinvention of Hewlett-Packard

(1)

Patricia A. Ryan

Hired as CEO to help reposition this well-respected high tech company, Carly Fiorina sells off the venerable Tests and Instruments Division to Focus the firm on computer-related products and services. Does the company have what is needed to succeed in a business that is rapidly becoming a commodity?

INDUSTRY FOUR RECREATION AND LEISURE

Harley-Davidson, Inc.: The 95th Anniversary

(1)

Thomas L. Wheelen

Kathryn E. Wheelen

Thomas L. Wheelen II

Richard D. Wheelen

Market demand has increased beyond the company's ability to produce motorcycles and resulted in everlengthening customer waiting lists. Encouraged by this unsatisfied demand, new competitors are moving into the industry and challenging Harley's dominant position

Carnival Corporation

(1)

Michael J. Keeffe

John K. Ross III

Bill J. Middlebrook

With its ``fun ships,'' Carnival Cruises has made cruise ships more important than destinations. Through acquisition, Carnival expanded its product line to encompass an entire range of industry offerings. How can Carnival continue to grow in the industry it now dominates?

Reebok International, Ltd.: Customer Revolt

(1)

Thomas L. Wheelen

Moustafa H. Abdelsamad

Stanley R. Sitnik

Charles E. Michaels, Jr.

Along with Nike, Reebok controls over half of the United States and about 40% of the world market share in athletic shoes. Reebok's sales growth has not, however, continued at the fast pace of the 1980s. Its market share is declining and its costs are increasing

INDUSTRY FIVE MAJOR HOME APPLIANCES

The U.S. Major Home Appliance Industry: Domestic Versus Global Strategies

(1)

J. David Hunger

The U.S. major home appliance industry has reached maturity. Future growth may require a significant international presence. The primary players are staking their future on international ventures that may or may not be successful. Which companies will survive the coming shake out?

Maytag Corporation: Back to Basics

(1)

J. David Hunger

Founded as a domestic maker of washing machines, Maytag expanded both internally and through acquisitions to have a full line of major home appliances. Its acquisition of Hoover in order to obtain access to European and Australian markets proved a costly failure, resulting in the eventual divestment of its overseas major home appliance operations. Can Maytag continue to profit as a domestic company surrounded by multinational competitors?

INDUSTRY SIX MASS MERCHANDISING/ DISTRIBUTION

Kmart Corporation (2000): Seeking Customer Acceptance and Preference

(1)

James W. Camerius

Kmart Corporation is one of the World's largest mass merchandise retailers. After years of dominating the U.S. market, both its sales and profits were surpassed by Wal-Mart in 1990. A succession of CEOs has struggled to turn around Kmart's financial decline and to provide a new direction for growth in a mature industry

Gardner Distribution Co.---``Providing Products for Plants and Pets''

(1)

Tom Hinthorne

Gardner Distribution purchases, sells, and distributes premium pet food products, pet supplies, and lawn and garden products. The top management team developed a mission and objectives but is having difficulty defining the wholesaler's strategies

Wal-Mart Stores, Inc. (2000): Strategies for Dominance in the New Millennium

(1)

James W. Camerius

Even after the death of its founder, Sam Walton, Wal-Mart continued its amazing growth in terms of sales and profits. The company's sales surpass those of its 3 major competitors. Not content with the firm's success in North America, top management was now targeting the world as the company's next growth opportunity

INDUSTRY SEVEN SPECIALTY RETAILERS

The Home Depot, Inc.: Growing the Professional Market (Revised)

(1)

Thomas L. Wheelen

Hitesh (John) P. Adhia

Thomas H. Cangley

Paul M. Sweircz

Home Depot has become the world's largest home improvement retailer and is ranked among the largest retailers in the United States. Its stores primarily serve the do-it-yourself repairperson, but the company is attempting to increase its sales to the professional market of contractors, building maintenance people, and interior designers

Amy's Bread (Revised)

(1)

Paula S. Weber

Cathleen S. Burns

James E. Weber

Amy's Bread makes and sells hand-shaped specialty breads in New York City. This entrepreneurial firm has found success in Manhattan, but is not sure how it should expand its operations. Should it be both a retailer and a wholesaler? If so, where should it locate?

INDUSTRY EIGHT SMALL/MEDIUM ENTREPRENEURIAL VENTURES

Inner-City Paint Corporation (Revised)

(1)

Donald F. Kuratko

Norman J. Gierlasinski

Inner-City Paint Corporation makes paint for sale to contractors in the Chicago area. The founder's lack of management knowledge is creating difficulties for the firm, and the firm is in financial difficulty. Unless something is done soon, it may go out of business

The Vermont Teddy Bear Co., Inc.: Challenges Facing a New CEO (Revised)

(1)

Joyce P. Vincelette

Ellie A. Fogarty

Thomas M. Patrick

Thomas L. Wheelen

Vermont Teddy Bear designs, manufactures, and markets hand crafted, customized teddy bears made in American and guaranteed for life. It became famous for its ``Bear-Gram,'' whereby customers could send a holiday bear by placing a phone order. Growth in the company's sales has not been matched by growth in profits. When profits turn to losses, the company looks to a new CEO to put it back on track

Guajilote Cooperativo Forestal, Honduras

(1)

Nathan Nebbe

J. David Hunger

This forestry cooperative has the right to harvest, transport, and sell fallen mahogany trees in La Muralla National Park of Honduras. Although the cooperative has been successful thus far, it was facing some serious issues: low prices for its product, illegal logging, deforestation by poor farmers, and possible world trade restrictions on the sale of mahogany

The Carey Plant

(1)

Thomas L. Wheelen

J. David Hunger

The Carey Plant had been a profitable manufacturer of quality machine parts until being acquired by the Gardner Company. Since its acquisition, the plant has been plagued by labor problems, increasing costs, leveling sales, and decreasing profits. Gardner Company's top management is attempting to improve the plant's performance and better integrate its activities with those of the corporation by selecting a new person to manage the plant

INDUSTRY NINE BEVERAGE/FOOD

Arm & Hammer: Poised for Growth?

(1)

Roy A. Cook

Church & Dwight, the maker of Arm & Hammer baking soda, uses brand extensions to successfully market multiple consumer products, but is finding that, after initial consumer acceptance, market share is dropping. Can this company continue to compete effectively against much larger multinational corporations, such as Procter & Gamble and Colgate-Palmolive?

Tasty Baking Company

(1)

Ellie A. Fogarty

Joyce P. Vincelette

Thomas L. Wheelen

Thomas M. Patrick

After embarking on a new strategy of acquisition, the company finds its profits are not increasing with company expansion. What should be its strategic direction?

Redhook Ale Brewery

(1)

Stephen E. Barndt

Redhook Ale Brewery, originally a niche brewer of quality beer, chose a novel strategy in the industry---to become a captive company. Anheuser-Busch is its sole distributor. Intense competition with other craft beers has slowed Redhook's sales and significantly reduced its profits. Redhook's management is unsure what it can do---given its reliance on Anheuser-Busch to market its beer

INDUSTRY TEN AVIATION AND AUTOMOBILES

The Boeing Commercial Airplanes Group: Decision 2001

(1)

Richard C. Scamehorn

The Boeing Commercial Airplane Group, the core business unit of the Boeing Company, evenly shares the large commercial aircraft market with Airbus Industries---its only serious competitor. Until Airbus introduced its new jumbo-jet, Boeing owned the jumbo-jet market. Boeing's Management must decide if the company should build the 747X to compete with Airbus's A-380, or if it should invest its money elsewhere

Mercedes-Benz and Swatch: Inventing the `smart' and the Networked Organization

(1)

Eric Pfaffmann

Ben M. Bensaou

Mercedes-Benz and SMH, the Swiss maker of Swatch, formed a joint venture called Micro Compact Car (MCC) to develop and manufacture a new type of automobile. The `smart' car was to be a two-seat city car built using modular design and manufacturing. The venture partners must organize the joint venture for maximum effectiveness

section E Issues in Not-For-Profit Organizations

A. W. A. R. E.

(1)

John K. Ross III

Eric G. Kirby

A. W. A. R. E is a not-for-profit therapeutic horseback riding organization in San Marcos, Texas. Increasing expenses and declining revenues create a cash flow problem. With the Executive Director retiring for health reasons, the board has to decide what must be done to save the organization

Case Index

Name Index

(12)

Subject Index