Strategic Management and Business Policy

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

• ISBN13: 9780130651211
• ISBN10: 0130651214
• Edition: 8th
• Format: Hardcover
• Copyright: 2002-01-01
• Publisher: Pearson College Div

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.

Table of Contents

PART ONE Introduction to Strategic Management and Business Policy	1	(50)
Basic Concepts of Strategic Management	1	(24)
The Study of Strategic Management	2	(3)
Phases of Strategic Management	3	(1)
Benefits of Strategic Management	4	(1)
Globalization and Electronic Commerce: Challenges to Strategic Management	5	(2)
Impact of Globalization	5	(1)
Impact of Electronic Commerce	5	(1)
Global Issue: Regional Trade Associations Replace National Trade Barriers	6	(1)
Theories of Organizational Adaptation	7	(1)
Creating a Learning Organization	8	(1)
Basic Model of Strategic Management	9	(7)
Environmental Scanning	9	(1)
Strategy Formulation	10	(5)
Strategy Implementation	15	(1)
Evaluation and Control	16	(1)
Feedback/Learning Process	16	(1)
Initiation of Strategy: Triggering Events	16	(2)
Internet Issue: Triggering Event at Sun Microsystems	17	(1)
Strategic Decision Making	18	(4)
What Makes a Decision Strategic	18	(1)
Mintzberg's Models of Strategic Decision Making	18	(1)
Strategic Decision-Making Process: Aid to Better Decisions	19	(3)
Impact of the Internet on Strategic Management	22	(3)
Corporate Governance and Social Responsibility	25	(26)
Corporate Governance: Role of the Board of Directors	26	(10)
Responsibilities of the Board	27	(2)
Members of a Board of Directors	29	(1)
Theory As It Applies: Agency Theory Versus Stewardship Theory in Corporate Governance	30	(2)
Global Issue: POSCO Adds a Non-Korean Director	32	(1)
Nomination and Election of Board Members	33	(1)
Organization of the Board	34	(1)
Trends in Corporate Governance	35	(1)
Corporate Governance: Role of Top Management	36	(2)
Responsibilities of Top Management	36	(2)
Social Responsibilities of Strategic Decision Makers	38	(3)
Responsibilities of a Business Firm	38	(2)
Corporate Stakeholders	40	(1)
Ethical Decision Making	41	(4)
Some Reasons for Unethical Behavior	41	(2)
Encouraging Ethical Behavior	43	(2)
Impact of the Internet on Corporate Governance and Social Responsibility	45	(6)
Internet Issue: Governments Act to Protect Society by Regulating the Internet	46	(4)
Part Ending Video Case: Newbury Comics, Inc.	50	(1)
PART TWO Scanning the Environment	51	(57)
Environmental Scanning and Industry Analysis	51	(29)
Environmental Scanning	52	(8)
Identifying External Environmental Variables	52	(6)
Global Issue: Identifying Potential Markets in Developing Nations	58	(1)
Identifying External Strategic Factors	59	(1)
Industry Analysis: Analyzing the Task Environment	60	(10)
Porter's Approach to Industry Analysis	60	(4)
Industry Evolution	64	(1)
Categorizing International Industries	64	(1)
International Risk Assessment	65	(1)
Strategic Groups	66	(1)
Strategic Types	66	(1)
Hypercompetition	67	(2)
Using Key Success Factors to Create an Industry Matrix	69	(1)
Competitive Intelligence	70	(1)
Forecasting	71	(2)
Danger of Assumptions	71	(1)
Useful Forecasting Techniques	72	(1)
Synthesis of External Factors---EFAS	73	(1)
Impact of the Internet on Environmental Scanning and Industry Analysis	74	(6)
Internet Issue: Competitor Information Available on the Internet	76	(4)
Internal Scanning: Organizational Analysis	80	(28)
A Resource-Based Approach to Organizational Analysis	81	(3)
Using Resources to Gain Competitive Advantage	82	(1)
Determining the Sustainability of an Advantage	82	(2)
Value Chain Analysis	84	(3)
Industry Value Chain Analysis	84	(1)
Corporate Value Chain Analysis	85	(2)
Scanning Functional Resources	87	(13)
Basic Organizational Structures	87	(1)
Corporate Culture: The Company Way	88	(1)
Strategic Marketing Issues	89	(1)
Global Issue: ABB Uses Corporate Culture as a Competitive Advantage	90	(1)
Strategic Financial Issues	91	(1)
Strategic Research and Development (R & D) Issues	92	(3)
Strategic Operations Issues	95	(2)
Strategic Human Resource Management (HRM) Issues	97	(2)
Strategic Information Systems/Technology Issues	99	(1)
Internet Issue: The Growing Global Internet Economy	99	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	(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	1	(12)
Subject Index	13