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364 INDEX

E Functions of finance, 107 Variables, 69
Economic forces, 63, 335 Financial ratios, 107–111 Governmental organizations (strategic
Economy, 335 Financial budgets, 271–273 planning), 163
Educational institutions, 162 Financial objectives, 133–134 Grand Strategy Matrix, 191
Educative change strategy, 234 Financial ratio analysis, 107–111 Growth ratios, 111
Electric cars, 321 Financial Stability (FS) in SPACE, 181 Guanxi, 335
Empirical indicators, 96 Financing decision, 262–266 Guidelines for case analysis, 346–358
Empowerment, 17 First mover advantages, 61 Guidelines for effective strategic management,
Environment, 317 Benefits of, 161 19–21
Environmental audit, 317 Five-Forces Model, 74–78
Environmental forces, 66 Bargaining power of consumers, 74–78 H
Environmentalists, 317–320 Bargaining power of suppliers, 74–78 Halo error, 177
Environmental scanning, 12, 60 Potential development of substitute products, Heroes/heroines, 97
Environmental Sustainability (Chapter 10), 74–78 High-velocity (change) markets, 155
317–327 Potential entry of new competitors, 74–78 Horizontal consistency of objectives, 217
Copenhagen meeting, 322 Rivalry among competing firms, 74–78 Horizontal integration, 141
Electric cars, 321 Fixed costs, 112–113 Hostile takeover, 158
Environmental Affairs, 318 Focus strategies, 151 Human resource concerns when implementing
ISO 14000/14001 Certification, 320 Folktale, 97 strategies, 237–240
Lack of Standards Changing, 318 Force change strategy, 234 Human resource management, 102
Obama Regulations, 318 Forecasting tools and techniques, 78
Proactive/Reactive, 320 Forward integration, 139 I
Reasons to Be Green, 320 Franchising, 139 IE Matrix, 188–191
Environmental training, 319 Fuld.com (intelligence gathering), 72–74 IFRS, 300
EMS (environmental management systems), 321 Functional structure, 222 Implementing Strategies: Management/
Employee stock ownership plans (ESOPs), 238 Functions of finance, 107 Operations (Chapter 7), 210–249
EPS-EBIT analysis, 262–266 Dividend decision, 107 Implementing Strategies: Marketing/
Equity financing, 262–266 Financing decision, 107 Finance (Chapter 8), 250–283
Equifinality, 197 Investment decision, 107 India, 339
ESOPs, 239 Functions of management, 99 Industrial Organization (I/O) View, 63
Ethics, 312–315 Controlling, 102 Industry Analysis: The External Factor
Evaluating mission statements, 51, 56 Motivating, 101 Evaluation (EFE) Matrix, 60, 80
Evaluating the worth of a business, 273–275 Organizing, 100 Industry Growth Rate (BCG axis), 184–188
Executive summary, 350 Planning, 100 Industry Stability (IS), in SPACE, 181
Executive titles, 227–229 Staffing, 102 Information technology, 69, 118
External Assessment (Chapter 3), 58–89 Functions of marketing, 103 Input stage, 176
Competitive forces, 71 Customer analysis, 103 Integration strategies, 97, 139
Competitive intelligence (CI) programs, Distribution, 105 Backward integration, 139, 140
72–74 Pricing, 105 Forward integration, 139
Competitive Profile Matrix, 81–82 Product and service planning, 104 Horizontal integration, 139, 141
Cooperation among competitors, 156–157 Marketing research, 106 Internal-External (IE) Matrix, 184, 188–191
Economic forces, 61, 63 Marketing audit checklist of questions, 106 Intensive strategies, 141
External Factor Evaluation (EFE) Matrix, Opportunity analysis, 103 Market development, 142
80–81 Selling products/services, 103 Market penetration, 141
Five-Forces Model, 74–78 Furloughs, 237 Product development, 142
Forecasting tools and techniques, 78 Future shock, 295 Internal assessment (Chapter 4), 90–125
Globalization, 334 Breakeven analysis, 112–113
Industrial/Organization (I/O) view, 63 G Cultural pitfalls, 97–99
Industry Analysis: The External Factor GAAP, 300 Cultural products, 97–99
Evaluation (EFE) Matrix, 80–81 GAAS, 300 Finance/accounting functions, 106
Making assumptions, 79 Gain sharing, 232 Financial ratio analysis, 109–111
Nature of an external assessment, 61 Generic Strategies, 151–155 Integrating strategy and culture, 97–100
Political, governmental and legal forces, 68 Cost leadership, 152 Internal factor evaluation matrix, 122–123
Porter’s Five-Forces Model, 74–78 Differentiation, 153 Internal forces, 93
Process of performing, 62 Focus, 154 Management, 99
Social, cultural, demographic Glass ceiling, 242 Management Information Systems, 117
and environmental forces, 66 Global challenge, 333–336 Marketing, 103
Technological forces, 69 Global/International Issues (Chapter 11), Nature of an internal audit, 93
Sources of external information, 78 328–344 Process of performing an internal audit, 93
External audit. See external assessment (Chapter Advantages and disadvantages, 332 Production/operations, 113
3), 58–89 Communication differences across countries, Research and development, 115
External Factor Evaluation (EFE) Matrix, 80–81 338 Research and development audit, 117
External forces, 61, 63 Global challenge, 333–335 Resource-Based View (RBV), 96
Variables, 58–89 Japanese culture, 338 Value chain analysis (VCA), 119–121
External opportunities and threats, 11–12, 58–80 Mexican culture, 337 Internal audit. See internal assessment, 93
Multinational organizations, 330–332 Internal factor evaluation matrix, 122–123
F U.S. vs foreign business cultures, 335–339 Internal forces, 93
Failure (business), 146–151 Weak economy, 335 Internal strengths and weaknesses, 12–13,
Fast follower, 161 Worldwide tax rates, 339 90–124
Feasibility (in strategy evaluation), 288 Global competition, 333–340 International financial reporting standards
Feng shui, 337 Advantages and disadvantages, 332 (IFRS), 300
Finance/Accounting, 106–113, 261, 275 Globalization, 334 International firms, 331
Audit checklist, 113 Goals. See objectives. 133–136 International Issues (Chapter 11),
Financial Accounting Standards Board Governance, 198–200 (See Global Issues), 328–344
(FASB), 272 Governmental forces, 68–69 International operations, 328–340