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Industry Analysis: The External Factor Evaluation (EFE) Chapter 5
Matrix 80 Strategies in Action 130
The Competitive Profile Matrix (CPM) 81
VOLKSWAGEN AG: DOING GREAT IN A WEAK
ASSURANCE OF LEARNING EXERCISES 86 ECONOMY. HOW? 132
Assurance of Learning Exercise 3A: Developing an EFE Matrix for Long-Term Objectives 133
McDonald’s Corporation 86 The Nature of Long-Term Objectives 133 & Financial versus
Assurance of Learning Exercise 3B:The External Strategic Objectives 134 & Not Managing by
Assessment 86 Objectives 135
Assurance of Learning Exercise 3C: Developing an EFE Matrix for The Balanced Scorecard 135
My University 87
Types of Strategies 136
Assurance of Learning Exercise 3D: Developing a Competitive
Levels of Strategies 138
Profile Matrix for McDonald’s Corporation 87
Integration Strategies 139
Assurance of Learning Exercise 3E: Developing a Competitive
Profile Matrix for My University 87 Forward Integration 139 & Backward Integration 140
& Horizontal Integration 141
Chapter 4 Intensive Strategies 141
The Internal Assessment 90 Market Penetration 141 & Market Development 142
& Product Development 142
AMAZON.COM, INC.: DOING GREAT IN A WEAK
ECONOMY. HOW? 92 Diversification Strategies 143
Related Diversification 144 & Unrelated Diversification 144
The Nature of an Internal Audit 93
Defensive Strategies 146
Key Internal Forces 93 & The Process of Performing an Internal
Audit 93 Retrenchment 146 & Divestiture 148 & Liquidation 149
The Resource-Based View (RBV) 96 Michael Porter’s Five Generic Strategies 151
Integrating Strategy and Culture 97 Cost Leadership Strategies (Type 1 and Type 2) 152 & Differentiation
Strategies (Type 3) 153 & Focus Strategies (Type 4 and Type 5) 154
Management 99
& Strategies for Competing in Turbulent, High-Velocity
Planning 100 & Organizing 100 & Motivating 101 & Staffing Markets 155
102 & Controlling 102 & Management Audit Checklist of
Means for Achieving Strategies 155
Questions 103
Cooperation Among Competitors 155 & Joint Venture/
Marketing 103
Partnering 156 & Merger/Acquisition 158 & First Mover
Customer Analysis 103 & Selling Products/Services 103 & Advantages 161 & Outsourcing 161
Product and Service Planning 104 & Pricing 105 & Distribution
105 & Marketing Research 106 & Cost/Benefit Analysis 106 & Strategic Management in Nonprofit and Governmental
Marketing/Audit Checklist of Questions 106 Organizations 162
Finance/Accounting 106 Educational Institutions 162 & Medical Organizations 163
& Governmental Agencies and Departments 163
Finance/Accounting Functions 107 & Basic Types of Financial
Ratios 108 & Finance/Accounting Audit Checklist 113 Strategic Management in Small Firms 164
Production/Operations 113 ASSURANCE OF LEARNING EXERCISES 168
Production/Operations Audit Checklist 115 Assurance of Learning Exercise 5A:What Strategies Should
McDonald’s Pursue in 2011–2013? 168
Research and Development 115
Assurance of Learning Exercise 5B: Examining Strategy Articles 168
Internal and External R&D 116 & Research and Development
Audit 117 Assurance of Learning Exercise 5C: Classifying Some Year 2009
Strategies 169
Management Information Systems 117
Assurance of Learning Exercise 5D: How Risky Are Various
Strategic-Planning Software 118 & Management Information
Alternative Strategies? 169
Systems Audit 119
Assurance of Learning Exercise 5E: Developing Alternative
Value Chain Analysis (VCA) 119
Strategies for My University 170
Benchmarking 120
Assurance of Learning Exercise 5F: Lessons in Doing Business
The Internal Factor Evaluation (IFE) Matrix 122 Globally 170
ASSURANCE OF LEARNING EXERCISES 128
Assurance of Learning Exercise 4A: Performing a Financial Ratio Chapter 6
Analysis for McDonald’s Corporation (MCD) 128
Strategy Analysis and Choice 172
Assurance of Learning Exercise 4B: Constructing an IFE Matrix for
APPLE: DOING GREAT IN A WEAK ECONOMY. HOW? 174
McDonald’s Corporation 128
The Nature of Strategy Analysis and Choice 175
Assurance of Learning Exercise 4C: Constructing an IFE Matrix for
My University 128 The Process of Generating and Selecting Strategies 175