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166 PART 2 • STRATEGY FORMULATION

27. Consumers can purchase tennis shoes, food, cars, boats, and insurance on the Internet. Are
there any products today than cannot be purchased online? What is the implication for tradi-
tional retailers?
28. What are the pros and cons of a firm merging with a rival firm?
29. Visit the CheckMATE strategic-planning software Web site at www.checkmateplan.com, and
discuss the benefits offered.
30. Compare and contrast financial objectives with strategic objectives. Which type is more
important in your opinion? Why?
31. Diagram a two-division organizational chart that includes a CEO, COO, CIO, CSO, CFO,
CMO, HRM, R&D, and two division presidents. Hint: Division presidents report to the
COO.
32. How do the levels of strategy differ in a large firm versus a small firm?
33. List 11 types of strategies. Give a hypothetical example of each strategy listed.
34. Discuss the nature of as well as the pros and cons of a “friendly merger” versus “hostile
takeover” in acquiring another firm. Give an example of each.
35. Define and explain “first mover advantages.”
36. Define and explain “outsourcing.”
37. Discuss the business of offering a BBA or MBA degree online.
38. What strategies are best for turbulent, high-velocity markets?

Notes

1. John Byrne, “Strategic Planning—It’s Back,” 21. Michael Porter, Competitive Advantage (New York: Free
BusinessWeek (August 26, 1996): 46. Press, 1985): 97. Also, Arthur Thompson Jr., A. J.
2. Steven C. Brandt, Strategic Planning in Emerging Strickland III, and John Gamble, Crafting and Executing
Companies (Reading, MA: Addison-Wesley, 1981). Strategy: Text and Readings (New York: McGraw-
Reprinted with permission of the publisher. Hill/Irwin, 2005): 117.
3. R. Kaplan and D. Norton, “Putting the Balanced Scorecard 22. Arthur Thompson Jr., A. J. Strickland III, and John
to Work,” Harvard Business Review (September–October, Gamble, Crafting and Executing Strategy: Text and
1993): 147. Readings (New York: McGraw-Hill/Irwin, 2005):
4. F. Hansen and M. Smith, “Crisis in Corporate America: The 125–126.
Role of Strategy,” Business Horizons (January–February 23. Porter, Competitive Advantage, pp. 160–162.
2003): 9. 24. Thompson, Strickland, and Gamble, pp. 129–130.
5. Adapted from F. R. David, “How Do We Choose Among 25. Ibid., 134.
Alternative Growth Strategies?” Managerial Planning 33, 26. Gary Hamel, Yves Doz, and C. K. Prahalad, “Collaborate
no. 4 (January–February 1985): 14–17, 22. with Your Competitors—and Win,” Harvard Business
6. Ibid. Review 67, no. 1 (January–February 1989): 133.
7. Kenneth Davidson, “Do Megamergers Make Sense?” 27. Kathryn Rudie Harrigan, “Joint Ventures: Linking for a
Journal of Business Strategy 7, no. 3 (Winter 1987): 45. Leap Forward,” Planning Review 14, no. 4 (July–August
8. Op. cit., David. 1986): 10.
9. Ibid. 28. Matthew Schifrin, “Partner or Perish,” Forbes (May 21,
10. Op. cit., David. 2001): 26.
11. Ibid. 29. Ibid., p. 28.
12. Arthur Thompson Jr., A. J. Strickland III, and John 30. Nikhil Hutheesing, “Marital Blisters,” Forbes (May 21,
Gamble. Crafting and Executing Strategy: Text and 2001): 32.
Readings (New York: McGraw-Hill/Irwin, 2005): 241. 31. Ibid., p. 32.
13. Michael E. Porter, Competitive Strategy: Techniques for 32. Steven Rattner, “Mergers: Windfalls or Pitfalls?” Wall
Analyzing Industries and Competitors (New York: Free Street Journal (October 11, 1999): A22; Nikhil Deogun,
Press, 1980): 53–57, 318–319. “Merger Wave Spurs More Stock Wipeouts,” Wall Street
14. Sheila Muto, “Seeing a Boost, Hospitals Turn to Journal (November 29, 1999): C1.
Retail Stores,” Wall Street Journal (November 7, 2001): 33. Yuka Hayashi, “Japanese Firms, Flush with Cash, Step Up
B1, B8. Deals,” Wall Street Journal (January 6, 2009): B1.
15. Jon Swartz, “Cisco Gets into Computer Server Market,” 34. Jason Zweig, “Corporate-Cash Umbrellas: Too Big for
Wall Street Journal (March 17, 2009): 4B. This Storm? Wall Street Journal (March 14–15, 2009): B1.
16. Op. cit., David. 35. J. A. Schmidt, “Business Perspective on Mergers and
17. Doug Cameron, “Smithfield to Close Six Plants, Shed Acquisitions,” in J. A. Schmidt, ed., Making Mergers
Jobs,” Wall Street Journal (February 18, 2009): B3. Work, Alexandria, VA: Society for Human Resource
18. Op. cit., David. Management, (2002): 23–46.
19. Ibid. 36. Joel Millman, “Mexican Mergers/Acquisitions Triple from
20. Ibid. 2001,” Wall Street Journal (December 27, 2002): A2.