Strategic Management and Business Policy
I
TWELFTH EDITION
Business Policy
Thomas L. Wheelen
Formerly with University of Virginia Trinity College, Dublin Ireland
J. David Hunger
Iowa State University St. John's University
Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
Preface 29 PART ONE CHAPTER 1 Introduction to Strategic Management and Business Policy Basic Concepts of Strategic Management 50
1.1 The Study of Strategic Management Phases of Strategic Management Benefits of Strategic Management 53 54 53
49
1.2 Globalization and Environmental Sustainability: Challenges to Strategic Management 55 Impact of Globalization 56 56
57 60
Impact of Environmental Sustainability
Global Issue: REGIONAL TRADE ASSOCIATIONS REPLACE NATIONAL TRADE BARRIERS Environmental Sustainability Issue: PROJECTED EFFECTS OF CLIMATE CHANGE
1.3 Theories of Organizational Adaptation 1.4 Creating a Learning Organization 61
60
1.5 Basic Model of Strategic Management Environmental Scanning Strategy Formulation 65 64
62
Strategy Highlight 1.1: DO YOU HAVE A GOOD MISSION STATEMENT?
66
Strategy Implementation Evaluation and Control
69 70 71 71
72
Feedback/Learning Process
1.6 Initiation of Strategy: Triggering Events 1.7 Strategic Decision Making 73 73
Strategy Highlight 1.2: TRIGGERING EVENT AT UNILEVER
What Makes a Decision Strategic
Mintzberg's Modes of Strategic Decision Making
73 75 76
Strategic Decision-Making Process: Aid to Better Decisions 1.8 The Strategic Audit: Aid to Strategic Decision-Making 1.9 End of Chapter Summary 77 82
APPENDIX 1.A Strategic Audit of a Corporation
CONTENTS CHAPTER 2 Corporate Governance 90 93 93 96
2.1 Role of the Board of Directors Responsibilities of the Board
Members of a Board of Directors
Strategy Highlight 2.1: AGENCY
TWELFTH EDITION
Business Policy
Thomas L. Wheelen
Formerly with University of Virginia Trinity College, Dublin Ireland
J. David Hunger
Iowa State University St. John's University
Prentice Hall Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
Preface 29 PART ONE CHAPTER 1 Introduction to Strategic Management and Business Policy Basic Concepts of Strategic Management 50
1.1 The Study of Strategic Management Phases of Strategic Management Benefits of Strategic Management 53 54 53
49
1.2 Globalization and Environmental Sustainability: Challenges to Strategic Management 55 Impact of Globalization 56 56
57 60
Impact of Environmental Sustainability
Global Issue: REGIONAL TRADE ASSOCIATIONS REPLACE NATIONAL TRADE BARRIERS Environmental Sustainability Issue: PROJECTED EFFECTS OF CLIMATE CHANGE
1.3 Theories of Organizational Adaptation 1.4 Creating a Learning Organization 61
60
1.5 Basic Model of Strategic Management Environmental Scanning Strategy Formulation 65 64
62
Strategy Highlight 1.1: DO YOU HAVE A GOOD MISSION STATEMENT?
66
Strategy Implementation Evaluation and Control
69 70 71 71
72
Feedback/Learning Process
1.6 Initiation of Strategy: Triggering Events 1.7 Strategic Decision Making 73 73
Strategy Highlight 1.2: TRIGGERING EVENT AT UNILEVER
What Makes a Decision Strategic
Mintzberg's Modes of Strategic Decision Making
73 75 76
Strategic Decision-Making Process: Aid to Better Decisions 1.8 The Strategic Audit: Aid to Strategic Decision-Making 1.9 End of Chapter Summary 77 82
APPENDIX 1.A Strategic Audit of a Corporation
CONTENTS CHAPTER 2 Corporate Governance 90 93 93 96
2.1 Role of the Board of Directors Responsibilities of the Board
Members of a Board of Directors
Strategy Highlight 2.1: AGENCY