中国经济管理大学MBA

THE NATURE OF STRATEGIC MANAGEMENT

Strategic management is the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.  Organizations use the strategic management process to make decisions that impact customers, employees, investors, and other stakeholders.  The purpose of this exercise is to become more familiar with the three stages of the strategic management process 

INSTRUCTIONS:

Select a company that interests you, and log on to the company’s corporate website to learn how it engages in strategic management.  Keep in mind that larger, more formal companies will have more information available on their strategic management processes. 

Perform a keyword search of the following terms on the corporate website of the company that you have selected:

o   Strategic management/planning

o   Strategy formulation

o   Strategy implementation

o   Strategy evaluation

Write a few paragraphs summarizing how the selected company engages in the three stages of strategic management.  Be sure to address some of the following questions:

1)      Give specific examples of how the company formulates strategic decisions.

2)      Give specific examples of how the company implements strategic decisions.

3)      Give specific examples of how the company evaluates strategic decisions.

4)      Are the three stages of strategic management process separated and well-defined within the company? Explain. 

Be prepared to discuss your analysis in class.

EXPERIENTIAL EXERCISE 1B:  Strategic Profile of a Company

A strategic profile provides a snapshot view of the most important business management concepts for a company.  Nine key terms and concepts are integral to understanding the strategic management process.  The purpose of this exercise is to write a strategic profile by incorporating key business management terms and concepts. 

INSTRUCTIONS:

Select a company that interests you, and log on to the company’s corporate website to learn how it engages in strategic management. 

Scan the information on the corporate website and write a one-page strategic profile on the company.  Be sure to answer the following questions: 

1)      What is the company’s competitive advantage?

2)      Who are the company’s key strategists?

3)      Summarize the contents of the company’s mission/vision? 

4)      List at least one for each of the following:

a.       An external opportunity

b.      An external threat

c.       An internal strength

d.      An internal weakness

5)      Describe any policies that support efforts to achieve company objectives.

Be prepared to discuss your strategic profile in class.

CHAPTER 2: THE BUSINESS MISSION

EXPERIENTIAL EXERCISE 2A: CONDUCTING VISION STATEMENT RESEARCH

PURPOSE:

More and more companies are developing a vision statement instead of or in conjunction with a mission statement. This exercise gives you the opportunity to investigate firsthand the nature and role of vision statements in strategic management.

INSTRUCTIONS:

Call various organizations in your city or county to identify a firm that has developed a formal vision statement. Contact nonprofit organizations and government agencies in addition to small and large businesses. Ask to speak with the director, owner, or chief executive officer of that organization. Explain that you are studying vision statements in class and are conducting this research as part of a class activity. Seek answers to the questions outlined in Table 2A. Ask for a copy of the firm’s vision statement. Provide an overview of your findings to the class.

                                                                                               Your Name: ____________________

                                                                        The Organization’s Name: ____________________

                                                                          The Interviewee’s Name: ____________________

TABLE 2A:  Vision Statement Research Results

1.      When did your organization first develop a formal vision statement? Who was primarily responsible for its development?

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2.      How long has your current vision statement existed? When was it last modified? Why was it modified at that point in time?

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3.      By what process is your firm’s vision statement modified?

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4.      How is your vision statement actually used in your firm? How does it affect the firm’s planning process?

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5.      Is your vision statement just another name for mission statement, or does your firm also have a mission statement?  If your firm has both statements, compare and contrast each.

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EXPERIENTIAL EXERCISE 2B: WRITING A PERSONAL MISSION STATEMENT

PURPOSE:

Many motivational consultants recommend that each person have his or her own mission and vision statement. Just like for organizations, the development of a vision and mission is the first step in setting and achieving personal goals. It is often difficult to state what one hopes to become and seeks to be, but doing so will aid students in goal setting and attainment both now and in the future.

INSTRUCTIONS:

Take 15 minutes to write a personal vision and mission statement. Remember that statements should not be too long–it is best to keep them under 250 words. Organizations typically need to include the nine components discussed in the chapter. These may or may not apply to each student’s mission. Encourage students to think beyond the terms of how these components still represent issues in their lives.

Students may feel uncomfortable sharing their statements with others, so encourage them to choose someone in or outside of class to help them review and improve their statements. Discuss with them how using these statements will help them in making decisions like what type of job to pursue after graduation.

EXPERIENTIAL EXERCISE 3B:  Communicating a Mission/Vision

Mission and vision statements are among the most visible strategic documents within a company.  They are instrumental in communicating important strategic management decisions to internal stakeholders such as employees, as well as external stakeholders such as current and prospective customers.  The purpose of this activity is to help students to understand how mission and vision documents are used to communicate important information to company stakeholders.    

INSTRUCTIONS:

Select a public company for analysis.  Log on to the corporate website of the selected company and obtain a copy of the company’s mission/vision statement(s).  The instructor may select a particular industry, assigning selected companies to individuals or groups of students. 

Upon review of the selected company’s mission and vision, write a few paragraphs summarizing how the mission/vision statement(s) are used to communicate important information to stakeholders.  Be sure to address some of the following questions:

1)      What does the mission/vision statement reveal about internal company stakeholders, such as current employees, suppliers, and owners? 

2)      What does the mission/vision statement reveal about external company stakeholders, such as current and prospective customers and environmental advocates)?

3)      In general, what does the mission/vision tell you about the organizational culture of this company?

Be prepared to discuss your observations in class.

CHAPTER 3: THE EXTERNAL ASSESSMENT

EXPERIENTIAL EXERCISE 3A:  IDENTIFYING OPPORTUNITIES AND THREATS FACING YOUR CITY

PURPOSE:

This exercise gives you the chance to identify important external opportunities and threats facing your town or city.

BACKGROUND:

The existence and magnitude of external changes underlie the need for an effective external audit. Increasing levels of economic uncertainty are having a major impact on all organizations. By identifying and evaluating when, where, how, and why relevant trends and events will impact an organization, an external audit can allow an organization to formulate and implement strategies more successfully.

INSTRUCTIONS:

What do you feel is the major external opportunity or threat facing your city? For each of the external forces listed in Table 3A, list the major opportunity or threat facing your city now. Join with two other individuals in class and compare answers. Discuss the differences.

TABLE 3A:  Performing an External Analysis for Your City

EXPERIENTIAL EXERCISE 3B: ANALYZING THE COMPETITON FOR MCDONALD’S

PURPOSE:

The text presented the Competitive Profile Matrix as a tool for assessing competition. This exercise will give students more information about the Cohesion Case while providing practice for Competitive Analysis.

INSTRUCTIONS:

Divide the class into groups and assign the groups a different competitor for McDonald’s. These competitors will include Burger King and Starbucks. At the end of the exercise, the class should have a thorough analysis of each competitor.

Answer the following questions regarding the competitor assigned to your group:

1.      What are the competitor’s strengths?

2.      What are the competitor’s weaknesses?

3.      What are the competitor’s objectives and strategies?

4.      How will the competitor most likely respond to current economic, social, cultural, demographic, environmental, political, governmental, legal, technological, and competitive trends affecting our industry?

5.      How vulnerable is this competitor to McDonald’s company strategies?

6.      How vulnerable is McDonald’s to successful counterattack by this competitor?

7.      How are McDonald’s products positioned relative to this competitor?

If students have access to laptops and Internet access in the classroom, this exercise can be conducted in class. If not, it will require research on the company websites and at financial sites like http://finance.yahoo.com or www.hoovers.com. In that case, students should return with completed papers and copies for the other groups.

EXPERIENTIAL EXERCISE 3C:   Capitalizing on Social Media Trends and Opportunities

A key to business survival is capitalizing on popular cultural trends.  Communication though social media websites like Facebook, MySpace, Twitter, and You Tube is the latest cultural phenomenon.  Companies are now taking advantage of this external opportunity in an effort to reach new markets and communicate more effectively with current and potential consumers.  The purpose of this activity is to explore this trend as a strategic opportunity for a company. 

INSTRUCTIONS:

Consider some companies that interest you, and search your favorite social media website for an official profile or fan page for one of these companies.  Write a few paragraphs describing how your selected company is using social media to promote its brand.  Consider the following questions when you write your analysis:

1)      How does the content on the social media profile page differ from the content on the company’s corporate website (Hint: Consider the target audience for each location)?

2)      In your opinion, has the selected company done well in capitalizing on the social media trend?  Why or why not? 

3)      How are the company’s competitors using the same social media websites?

Be prepared to discuss your analysis in class.

CHAPTER 4: THE INTERNAL ASSESSMENT

EXPERIENTIAL EXERCISE 4A: HOW BEST TO DESCRIBE MY UNIVERSITY’S CULTURE

PURPOSE:

Dimensions of organizational culture permeate all the functional areas of business. It is something of an art to uncover the basic values and beliefs that are buried deeply in an organization’s rich collection of stories, language, heroes, and rituals, but cultural products can represent important strengths and weaknesses. Culture is an aspect of organizations that can no longer be taken for granted in performing an internal strategic-management audit because culture and strategy must work together. This exercise is designed to enhance your understanding of cultural products. Organizational culture is an important factor in formulating, implementing, and evaluating strategies.

BACKGROUND:

Trice and Beyer offer the following definitions for 14 cultural products:

1.       A relatively elaborate, dramatic, planned set of activities that consolidate various forms of cultural expressions into one event, carried out through social interactions, usually for the benefit of an audience

2.       A system of several rites connected with a single occasion or event

3.       A standardized set of techniques and behaviors that manage anxieties, but seldom produce intended, technical consequences of practical importance

4.       A dramatic narrative of imagined events; also, an unquestioned belief about the practical benefits of certain techniques and behaviors that is not supported by demonstrated facts

5.       A historical narrative describing the unique accomplishments of a group and its leaders, usually in heroic terms

6.       A handed-down narrative of some wonderful event that is based on history but has been embellished with fictional details

7.       A narrative based on true events, or a mixture of fact and fiction

8.       A completely fictional narrative

9.       Any object, act, event, quality, or relation that serves as a vehicle for conveying meaning, usually by representing another thing

10.   A particular form or manner in which members of a group use vocal sounds and written signs to convey meanings to each other

11.   A shorthand word used to capture a vision or to reinforce values

12.   A life-directing attitude that serves as a behavioral guideline

13.   Our understanding of a particular phenomenon

14.   One whom the organization has legitimized to role model behavior

INSTRUCTIONS:

From the above list of definitions, match the correct terms in Table 4A below. Place a letter by each cultural product in Table 4A to indicate that product’s definition. Think of an example of each cultural product for your college or university, and record your examples. Join with two other individuals in class. Compare and discuss your examples. Make corrections if you improperly matched terms with definitions.

TABLE 4A:  A Cultural Products Test

EXPERIENTIAL EXERCISE 4B: UNDERSTANDING THE BASIC FUNCTIONS OF MANAGEMENT

PURPOSE: 

The functions of management consist of five basic activities.  These include planning, organizing, motivating, staffing, and controlling.  The purpose of this exercise is to become familiar with these functions and the various tasks that are included for each. 

INSTRUCTIONS: 

Complete the table below.  For each example, list the function that is associated with it. The five functions of strategic management are planning, organizing, motivating, staffing, and controlling.  Next, list the stage of the strategic-management process when that task is covered.  The three stages are strategy formulation, strategic implementation, and strategy evaluation.  Compare and discuss your examples with other members of the class. Make corrections if you improperly matched examples with functions. 

 CHAPTER 5: STRATEGIES IN ACTION

EXPERIENTIAL EXERCISE 5A: FINDING ALTERNATIVE EXAMPLES

PURPOSE:

This exercise can improve your understanding of strategies by giving you experience classifying different organizations’ strategies.

INSTRUCTIONS:

Find a current example for each of the strategies presented in Table 5A. If necessary, scan the Internet as well as several magazines and newspapers to find your examples. Especially good magazines for finding strategy examples are Business Week, Forbes, Fortune, Industry Week, Inc. Magazine, and Dun’s Business Month. The Wall Street Journal is the best newspaper for this exercise.

TABLE 5A: Identifying Current Examples of Alternative Strategies

EXPERIENTIAL EXERCISE 5B: STRATEGIC OPTIONS FOR YAHOO!

PURPOSE:

Strategies that may work in one organization in an industry are not necessarily right for other organizations in that same industry. What strategies have been implemented by Yahoo! in the past? Which ones worked or did not work? What strategies should it pursue now?

INSTRUCTIONS:

For each of the strategies listed below, identify whether Yahoo! implemented such a strategy in its history. Try to find information on the success or failure of each strategy if it was used. Given its current situation, what strategies would you recommend for Yahoo!

 EXPERIENTIAL EXERCISE 5C: SHOPPING FOR MICHAEL PORTER’S GENERIC STRATEGIES

PURPOSE:

According to Michael Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and focus.  The purpose of this exercise is to experience these strategies first-hand through a trip to a large store or retailer.    

INSTRUCTIONS:

1.      In preparation for this exercise, students should make a list of Porter’s Five Generic Strategies, as listed below:

·         Type 1 is a low-cost strategy that offers products or services to a wide range of customers at the lowest price available on the market. 

·         Type 2 is a best-value strategy that offers products or services to a wide range of customers at the best price-value available. 

·         Type 3 is a differentiation strategy aimed at producing products and services that are unique within the industry.

·         Type 4 is a low-cost focus strategy that offers products or services to a small range (niche group) of customers at the lowest price available on the market. 

·         Type 5 is the best price-value strategy that offers products or services to a small range of customers at the best price-value available on the market. 

2.      With Porter’s list in hand, students should browse the aisles of a large retailer or supermarket and identify at least two products for each of the five strategies illustrated above. 

3.      Upon returning from the store, students should write a short paper providing the following:

·         Description of each item, including cost.

·         Justification for why you placed the items in their respective type categories.

·         Compare your results with the results of others in the class.  Discuss how the type of store/retailer may have an affect on product offerings within the five types. 

·         As a class, discuss any potential business strategies related to cost leadership, focus, and differentiation that retailers should consider to boost profitability.

CHAPTER 6: STRATEGY ANALYSIS AND CHOICE

EXPERIENTIAL EXERCISE 6A: APPLYING THE GRAND STRATEGY MATRIX

PURPOSE:

The Grand Strategy Matrix is a popular tool for formulating alternative strategies. All organizations can be positioned in one of the four strategy quadrants of the Grand Strategy Matrix. The divisions of a firm could, likewise, be positioned. The Grand Strategy Matrix is based on two evaluative dimensions: competitive position and market growth. Appropriate strategies for an organization to consider are listed in sequential order of attractiveness in each quadrant of the matrix. This exercise gives you experience using a Grand Strategy Matrix. The basic format of a Grand Strategy Matrix is illustrated in Table 6A.

INSTRUCTIONS:

Based on the financial information given below, determine which quadrant of the Grand Strategy Matrix best characterizes each company. Write the company names appropriately in the spaces provided in Table 6A. Only 11 of 20 spaces in Table 6A will be used. Based on this analysis, what strategies are recommended for each company?

TABLE 6A:  Locating Companies in a Grand Strategy Matrix

EXPERIENTIAL EXERCISE 6B: STRATEGIC PLANNING FOR MY UNIVERSITY

PURPOSE:

The strategic-management model can be used effectively in educational institutions as well as private sector firms. This exercise will give you experience formulating strategies for your university.

INSTRUCTIONS:

In Table 6B, list your university’s major internal strengths, weaknesses, external opportunities, and threats in the SWOT matrix provided. List some strategies that you believe would enable your institution to capitalize on its strengths, improve on its weaknesses, take advantage of opportunities, and avoid threats.

TABLE 6B:  My University’s Key Strategic Factors

                                                                                                                                                  Name: _____________________

EXPERIENTIAL EXERCISE 6C: THE ROLE OF BOARDS OF DIRECTORS

PURPOSE:

The purpose of this exercise is to give students a better understanding of the role of boards of directors in formulating, implementing, and evaluating strategies. In addition, students should recognize the risk faced by board members for accepting such a position.

INSTRUCTIONS:

Choose an organization of interest. It may be McDonald’s or an organization that has faced issues affecting or affected by its board of directors. Search for articles about the board of your chosen organization (good sources include the Wall Street Journal, Fortune, Business Week, The Economist, and websites such as www.hoovers.com) and address the following questions. Summarize these findings in a short report.

*        How often does the board meet?

*        How long does each member serve on the board?

*        What role does the board play in this company?

*        How has the role of the board changed in recent years?

*        What changes are likely to occur in the near future?

*        How are the board members compensated and at what levels?

*        What are the consequences for board members during times of corporate crisis?

*        To what extent is the board involved in strategic management of the firm?

CHAPTER 7: IMPLEMENTING STRATEGIES: MANAGEMENT AND OPERATIONS ISSUES

EXPERIENTIAL EXERCISE 7A: COMPARING STRATEGY FORMULATION AND STRATEGY IMPLEMENTATION

PURPOSE:

The purpose of this exercise is to increase your understanding of important differences between strategy formulation and strategy implementation. This knowledge can help you lead an organization through the transition from strategy formulation to strategy implementation.

BACKGROUND:

Successful strategy formulation does not guarantee successful strategy implementation. It is always more difficult to do something (strategy implementation) than to say you are going to do it (strategy formulation). Although inextricably linked, strategy implementation is fundamentally different from strategy formulation. Strategy formulation and implementation can be contrasted in many ways.

INSTRUCTIONS:

Statements given in Table 7A characterize either strategy formulation or strategy implementation. In spaces provided in Table 7A, complete the sentences by putting “SF” before all statements that should begin with strategy formulation. Write “SI” before all statements that should begin with strategy implementation.

TABLE 7A:  Strategy Formulation versus Strategy Implementation

EXPERIENTIAL EXERCISE 7B:  WHAT CHANGE STRATEGY SHOULD I USE NOW?

PURPOSE:

No organization or individual can escape change. However, the thought of change raises anxieties because people fear economic loss, inconvenience, uncertainty, and a break in normal social patterns. Almost any change in structure, technology, persons, or strategies has the potential to disrupt comfortable interaction patterns. For this reason, people innately resist change. The strategic-management process itself can impose major changes on individuals and processes. Reorienting an organization to get people to think and act strategically, for example, is not an easy turnaround. This exercise gives you practice managing resistance to change under many different situations.

INSTRUCTIONS:

For each situation described in Table 7B, indicate whether you would use a force change approach, an educative change approach, or a rational change approach to minimize employees’ resistance to the change situation. Although you could use more than one approach in a given situation, indicate which approach you feel would work best. Give a short rationale for your answers.

TABLE 7B:  Change Strategies

1.      You are the chief executive officer and majority shareholder of a bank in a small town. Your bank has 10 managers and 90 nonmanagers. A large foreign bank makes you an excellent financial offer to acquire your bank. The acquiring bank does not assure you or your bank’s managers of a job after the acquisition. You want to accept the offer because it is a premium price, and you could get another job elsewhere, if needed. A conflict has arisen between two of your top managers. One wants to accept the acquisition offer, and one does not.

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2.        Your medium-sized company has only $1 million to devote to capital improvement expenses this year. Two of your division managers strongly believe their facility/operation needs the money the most. Neither manager could use half the money for the particular improvements needed. Explain how you would solve a conflict between the two managers.

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EXPERIENTIAL EXERCISE 7C:  ESTABLISHING POLICIES FOR A FIVE GUYS BURGERS RESTAURANT

PURPOSE:

Changes in a firm’s strategic direction do not occur automatically. On a day-to-day basis, policies are needed to make a strategy work. Policies are needed to facilitate solving repetitive or recurring type problems. The role of policies is to guide the implementation of strategy. This exercise can give you experience establishing policies. Policies are needed for a business to achieve its objectives.

BACKGROUND:

Broadly defined, the term policy refers to specific guidelines, methods, procedures, rules, forms, and administrative practices that are established to support and encourage work towards stated goals. Policies can be viewed as instruments of strategy implementation. Policies set boundaries, constraints, and limits on the kinds of administrative actions that can be taken to reward and sanction behavior. Policies clarify what can and cannot be done in pursuit of an organization’s objectives.

INSTRUCTIONS:

Let’s say you graduate from college and become the franchisee and operator of a Five Guys Burgers restaurant. Five Guys Burgers has some policies that you must enforce, but the company also gives you liberty to develop other policies of your own to assure an efficient business operation. In Table 7C, list 10 policies that you would institute to help assure growth and profitability of your Five Guys Burgers restaurant.

TABLE 7C:  Policies for a Five Guys Burgers Restaurant

EXPERIENTIAL EXERCISE 7D: YOUR UNIVERSITY’S ORGANIZATIONAL CHART

PURPOSE:

This exercise will provide additional practice for students in understanding organizational charts. Additionally, it provides insight into the management of a university.

INSTRUCTIONS:

1.       On a separate sheet of paper, diagram an organizational chart that you believe would best suit your university. It can be any of the formats described in the text. Be sure to include as much detail in your chart as possible, including the names of individuals and the titles of positions. This portion may be completed in groups.

2.       The instructor should bring in a copy of the real organizational chart for the university. Use this chart as a point of comparison to the charts developed in class. How are they different? Are there functions that were left out of the student-developed charts? After comparing the two charts, what changes would you recommend to the real university organizational chart? Be specific.

3.       Based on this analysis, draw a final organizational chart for your university, which incorporates the changes you recommended.

EXPERIENTIAL EXERCISE 7E: THE IMPACT OF LINKING PERFORMANCE AND PAY STRATEGIES

PURPOSE:

This exercise will promote understanding of linking performance and pay strategies in a turbulent economic climate such as the recession of 2008-2009.   It provides insight into how pay-for-performance strategies can provide competitive advantage in an industry. 

INSTRUCTIONS:

1.       Select a large company that interests you.  In many cases, students may select a company that they currently work for or have worked for in the past, since they understand the inner workings of that company.  Research the company’s Web site to identify how it links performance to pay.  Consider any of the following:

·         Bonus programs

·         Pay raises that are performance-based rather than seniority-based

·         Profit sharing

·         Gain sharing

·         Executive pay

2.       Write a two-page report that answers the following questions:

·         How has the company’s compensation program changed in light of the recent economic recession?  Have pay-for-performance programs increased, decreased, or stayed the same?

·         Has the company altered top executive pay in light of the recent economic recession?  If so, how has this affected the company overall.

·         How attractive is the compensation program to current and prospective employees.

·         In your opinion, does the company’s compensation package serve as a strategic advantage against competitors in the industry?  Explain.

CHAPTER 8: IMPLEMENTING STRATEGIES: MARKETING, FINANCE/ACCOUNTING, R&D, AND MIS ISSUES

EXPERIENTIAL EXERCISE 8A: MARKET SEGMENTATION FOR GOOGLE

PURPOSE:

Market segmentation is the process of subdividing a market into distinct subsets of customers according to customer characteristics. Ben Enis once stated that the value of segmentation is the trade-off between the efficiency of treating everyone the same and the effectiveness of treating everyone differently. Market segmentation allows an organization to provide just the right marketing mix (product, place, price, and promotion) to a target market in an efficient and effective manner. This exercise will reinforce the importance of segmentation for students.

INSTRUCTIONS:

Segment the market for Google. You may use one or more of the possible segmentation bases presented in the text in Table 8-2. Which bases are most relevant for Google’s customers? Of the possible target markets identified through the segmentation exercise, which one(s) should Google focus on? Will Google need to make adjustments to its marketing mix in order to target the market(s)? Because Google’s revenue streams come from business clients rather than end users, explain how Google can segment business customers.

EXPERIENTIAL EXERCISE 8B: MARKET SEGMENTATION FOR YOUR UNIVERSITY

PURPOSE:

This exercise requires students to group the total market of potential students according to the bases of segmentation. This exercise provides additional practice in segmentation for a market that students will feel they know a lot about.

INSTRUCTIONS:

Segment the market for your university. Which bases are most relevant for the students of your university? Of the possible target markets identified through the segmentation exercise, which one(s) should your university focus on? Will your university need to make adjustments to its marketing mix in order to target the market(s)? What recommendations would you make based on your analysis? Were the segmentation bases utilized in this analysis different from those used in the Google example? Why or why not?

EXPERIENTIAL EXERCISE 8B:   Capitalizing on Social Media Trends and Opportunities

PURPOSE:

A key to business survival is capitalizing on popular cultural trends.  Communication though social media websites like Facebook, MySpace, Twitter, and You Tube is the latest cultural phenomenon.  Companies are now taking advantage of this external opportunity in an effort to reach new markets and communicate more effectively with current and potential consumers.  The purpose of this activity is to explore this trend as a strategic opportunity for a company. 

INSTRUCTIONS:

Consider some companies that interest you, and search your favorite social media website for an official profile or fan page for one of these companies.  Write a few paragraphs describing how your selected company is using social media to promote its brand.  Consider the following questions when you write your analysis:

4)      How does the content on the social media profile page differ from the content on the company’s corporate website (Hint: Consider the target audience for each location)?

5)      In your opinion, has the selected company done well in capitalizing on the social media trend?  Why or why not? 

6)      How are the company’s competitors using the same social media websites?

Be prepared to discuss your analysis in class.

CHAPTER 9: STRATEGY REVIEW, EVALUATION, AND CONTROL

EXPERIENTIAL EXERCISE 9A:  INTEGRATING INTUITION AND ANALYSIS

PURPOSE:

Intuition is particularly important for making decisions in situations where there is a high level of uncertainty, little precedent, or highly interrelated variables, or when there is immense pressure to be right, or it is necessary to choose from several plausible alternatives. This exercise asks you to give further thought to the importance of integrating intuition and analysis in strategic management.

The intuitive versus analytical approach to decision making is not an either or proposition. Managers at all levels in an organization should inject their intuition and judgment into strategic-management analyses. Analytical thinking and intuitive thinking complement each other in strategic management. In a sense, the strategic-management process is an attempt to duplicate what goes on in the mind of a brilliant intuitive person who knows the business. A key to successful strategic management is effective integration of intuition and analysis. Intuition alone or analysis alone is not sufficient.

INSTRUCTIONS:

In Table 9A, identify six major reasons why intuition alone is not recommended for strategic decision making. Then identify six major reasons why analysis alone is not recommended for strategic decision making.

TABLE 9A:  Using Intuition and Analysis to Make Strategic Decisions

EXPERIENTIAL EXERCISE 9B: CONTINGENCY PLANNING FOR MCDONALD’S

PURPOSE:

Contingency planning provides a type of insurance for organizations as they plan for the future. Contingency plans lay out the “what if” scenarios for organizations. While not all contingencies can be planned, there are several commonly established by firms. This exercise will aid students in thinking about the “what if’s” and developing strategies to address such situations.

INSTRUCTIONS:

Develop contingency plans for the following situations for McDonald’s.

1.       If a major competitor withdraws from particular markets, what actions should McDonald’s take?

2.       If sales objectives are not reached, what actions should McDonald’s take to avoid profit losses?

3.       If a competitor enters a key market, what actions should McDonald’s take?

CHAPTER 10: BUSINESS ETHICS, SOCIAL RESPONSIBILITY, ENVIRONMENTAL SUSTAINABILITY

EXPERIENTIAL EXERCISE 10A:  WHAT ARE YOUR BUSINESS ETHICS?

PURPOSE:

Business ethics can be defined as conduct or actions within organizations that constitute and support human welfare. Codes of business ethics serve as control mechanisms and symbols in organizations. Newspapers and business magazines report daily the legal and moral breaches of ethical conduct by both public and private organizations.

A new wave of unethical acts and corruption has accentuated the need for strategists to develop a clear code of business ethics. Policies can be devised to assure adherence to the code. An integral part of the responsibility of all managers is to provide ethics leadership—by constant example and demonstration.

INSTRUCTIONS:

In Table 1A, indicate whether you Strongly Agree (SA), Agree (A), Disagree (D), or Strongly Disagree (SD) with each statement. Do not try to guess the “right” answer; just indicate your feelings honestly by circling the appropriate numbers.

Obtain your ethics score by adding the numbers that you circled on items 3, 4, 6, 7, 9, and 10. Then reverse your scores on items 1, 2, 5, and 8 and add those values to your other total to obtain a grand total. Grand total scores range from 10 to 40, with 40 being the most ethical and 10 the least ethical. A score of 25 is average.

TABLE 1A:  A Business Ethics Questionnaire

EXPERIENTIAL EXERCISE 10B:  STRATEGIC IMPLICATIONS OF ETHICAL DILEMMAS

Stakeholders make decisions about organizations and their potential in the marketplace based on several factors. The perception of ethics in the organization and the extent to which such decisions affect the bottom-line of an organization is an example of such a factor. In recent years, several corporate crises have occurred which first began as an ethical dilemma. What are the strategic implications of ethical dilemmas? It is critical that corporations recognize that ethical decision making is not only the right thing to do–it is also best for stakeholders in the long run.

INSTRUCTIONS:

Collect articles from various sources (e.g., newspapers and magazines such as Fortune, Business Week, and Newsweek) about situations where an ethical issue is affecting stakeholders of an organization.

Write an assessment of the situation identified which addresses these questions: 1) What is the impact of such poor decisions? 2) Considering the strategic planning process, how do such decisions fit in to this process? 3) How does the market respond to unethical decision making in a corporate environment? Why? 4) How does the situation affect a firm’s strengths, weaknesses, opportunities and threats?

Bring your articles to class and be prepared to discuss your analysis.

EXPERIENTIAL EXERCISE 10C:  SUSTAINABILITY IN HIGHER EDUCATION

A recent study reported that 77 percent of corporate recruiters said “it is important to hire students with an awareness of social and environmental responsibility”.  Findings from research suggest that business schools at the undergraduate levels are doing a poor job of educating students on environmental issues.  The purpose of this exercise is to develop an understanding of sustainability practices in higher education, and particularly those practices that help train students on issues of sustainability.  Students will also compare these best practices to sustainability strategies at their own colleges, universities, or business schools.

INSTRUCTIONS:

Write a two-page paper comparing sustainability best practices in higher education with sustainability strategies in your own college, university, or business school.  Be sure to address the following components:

1.      To develop a sense of understanding about sustainability in higher education, visit the web site for the Association for the Advancement of Sustainability in Higher Education (AASHE) at www.aashe.org.

·         List some operational best practices that colleges and universities are implementing to become more sustainable.

·         List some educational best practices that colleges and universities are implementing to train students on sustainability. 

2.      Research operational and educational sustainability strategies being implemented at your own college, university, or business school. 

3.      Based on your research of best practices, recommend some sustainability strategies for your college or business school.  Discuss operational strategies and educational strategies separately.  

4.      Bring your paper to class and be prepared to discuss your analysis.

CHAPTER 11: GLOBAL/INTERNATIONAL ISSUES

EXPERIENTIAL EXERCISE 11A:  THE SUCCESSFUL MULTINATIONAL CORPORATION

PURPOSE:

Organizations that conduct business operations across borders are called international firms or multinational corporations.  Although the strategic management process is conceptually the same for multinational firms as for purely domestic firms, the process is more complex for international firms due to more variables and relationships. 

The purpose of this exercise is to apply what was learned regarding strategic management for multinational corporations in Chapter 11 by analyzing global operations of a successful multinational company. 

INSTRUCTIONS:

Select a multinational corporation that you know has been successful in its global operations.  Write a two-page analysis of global strategies in use by the company based on what you learned from your text.  Be sure to address the following questions:

1.      Review the company’s history.  At what point in time did the company become a multinational?  Was this part of the original business strategy?

2.      What has happened to corporate profits and revenues as a result of global expansion?

3.      How does your company’s industry impact global operations?  Are competitors within the industry also multinationals?

4.      What are some of the challenges that this company and/or industry will face in the coming years in regards to global operations? 

Bring your paper to class and be prepared to discuss your analysis.

EXPERIENTIAL EXERCISE 11B:  SEALING THE DEAL – CULTURAL DIFFERENCES IN BUSINESS TRANSACTIONS

PURPOSE:

To compete successfully in world markets, U.S. managers must obtain a better knowledge of historical, cultural, and religious forces that motivate and drive people in other countries.   

The purpose of this exercise is to identify key cultural differences that can make or break a business transaction.  Students will apply a standard business scenario changing only the nationalities of the key players to highlight typical cultural differences.   

INSTRUCTIONS:

You are an American businessperson who is about to seal an important business deal with three different clients.  One is a fellow American, the second is a Japanese businessperson, and the third is a businessperson with a nationality of your choice.  Write a two-page narrative describing how the deal might be handled based on cultural differences that are typical of the parties involved.  Consider mentioning some of the following:

1.      Preferred location of handling the business meeting

2.      Salutation or greeting

3.      Personal distance

4.      Communication and negotiation style

5.      Non-verbal communication

Bring your narrative to class and be prepared to discuss your scenario.

中国经济管理大学

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