Strategic Management and Business Policy: Concepts and Cases / Edition 11

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This comprehensive book offers an engaging look into new and traditional strategic management topics. Its thorough coverage helps readers develop an understanding of the wide range of theories and research available in this field—from competitive strategy and industry analysis to environmental trends and ethics. Integration of international issues throughout provides an essential understanding of global economics and its impact on business activities in any location.

This book contains the latest research and examples of well-known and not-so-well known companies dealing with complicated strategic issues. .

For directors of strategic planning, competitive intelligence analysts, and strategic planners.

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Editorial Reviews

New edition of a text on traditional and new strategic management topics. Wheelen (Trinity College) and Hunger (Iowa State U.) present 14 chapters and 32 case studies that focus on developing an understanding of strategic management concepts, research, and theories; a framework of analysis for identifying central issues and courses of action in complex cases; conceptual skills; the emerging global economy and its potential impact on business activities; the role of corporate governance in strategic management; application of previously learned concepts; research capabilities for gathering key data; present and future environments in which corporations must function; and analytical and decision-making skills for dealing with complex problems in an ethical manner. Annotation c. Book News, Inc., Portland, OR (
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Product Details

  • ISBN-13: 9780132323468
  • Publisher: Prentice Hall
  • Publication date: 7/31/2007
  • Edition description: Older Edition
  • Edition number: 11
  • Pages: 1064
  • Product dimensions: 8.28 (w) x 10.02 (h) x 1.76 (d)

Meet the Author

Thomas L. Wheelen, D.B.A., M.B.A., B.S. Cum Laude (George Washington University, Babson College, and Boston College, respectively), College, M.B.A. (1961); Boston College, B.S. cum laude (1957).  Teaching Experience:Visiting Professor - Trinity College - University of Dublin (Fall 1999); University of South Florida - Professor of Strategic Management (1983-present); University of Virginia - McIntire School of Commerce;  Ralph A. Beeton Professor of Free Enterprise (1985-1981);  Professor (1981-1974); Associate Professor (1974-1971); and Assistant Professor (1971-1968); Visiting Professor - University of Arizona (1980-1979) and Northeastern University (Summer 1979, 1977, and 1975).  Academic, Industry and Military Experience: University of Virginia College of Continuing Education: (1) Coordinator for Business Education (1983-1978, 1976-1971) - approve all undergraduate courses offered at 7 Regional Centers and approved faculty; (2) Liaison Faculty and Consultant to the National Academy of the FBI Academy (1983-1972) and; (3) developed, sold, and conducted over 200 seminars for local, state, and national governments, and companies for McIntire School of Commerce and Continuing Education. General Electric Company - various management positions (1965 - 1961); U.S. Navy Supply Corps (SC) - Lt. (SC) USNR - assistant supply officer aboard nuclear support tender (1960-1957).  Publications: (1) Monograph, AnAssessment of Undergraduate Business Education in the United States (with J.D. Hunger), 1980; (2) Books -60 books published; 14 books translated into 8 languages (Arabic, Bahasa, Indonesia, Chinese, Chinese Simplified, Greek, Italian, Japanese, Portuguese and Thai)  (3) Books - co-author with J.D. Hunger - 5 active books:  Strategic Management and Business Policy, 10th Edition (2006);  Cases in Strategic Management and Business Policy, 10th Edition (2006); Concepts in Strategic Management and Business Policy , 10th Edition (2006); Strategic Management and Business Policy, 10th Edition; International Edition (2006); and Essentials of Strategic Management, 3rd Edition (2003). (3)Co-editor - Developments in Information Systems (1974) and Collective Bargaining in the Public Sector (1977) and (4) Co-developer of software - STrategic Financial ANalyzer (ST. FAN) (1993, 1990, 1989 - different versions.);  (5) Articles - authored over 40 articles that have appeared in such journals as the Journal of Management, Business Quarterly, Personnel Journal, SAM Advanced Management Journal, Journal of Retailing, International Journal of Management, and the Handbook of Business Strategy. (6)Cases - have about 280 cases appearing in over 83 text and case books, as well as the Business Case Journal, Journal of Management Case Studies, International Journal of Case Studies and Research and Case Research Journal Awards: (1) Fellow elected the Society for Advancement of Management in 2002 (2) Fellow elected by North American Case Research Association in 2000; (3) Fellow elected by Text and Academic Authors Association in 2000;(4) 1999 Phil Carroll Advancement of Management Award in Strategic Management from the Society for Advancement of Management; (5) 1999 McGuffey Award for Excellence and Longevity for Strategic Management and Business Policy - 6th Edition from the Text and Academic Authors Association; (6) 1996/97 Teaching Incentive Program Award for teaching undergraduate strategic management; (7) Fulbright, 1996-97, to Ireland but I had to turn it down; (8) Endowed Chair, Ralph A. Beeton Professor, at University of Virginia (1981-1985); (9) Sesquicentennial Associateship research grant from the Center for Advanced Studies at the University of Virginia, 1979-80; (10) Small Business Administration (Small Business Institute) supervised undergraduate team that won District, Regional III, and Honorable Mention Awards; and (11) awards for two articles.  Associations:  Dr. Wheelen currently serves on the Board of Directors of Adhia Mutual Fund, Society for Advancement of Management, and on the Editorial Board and the Associate Editor of SAM Advanced Management Journal.  He served on the Board of Directors of Lazer Surgical Software, Inc, and Southern Management Association and on the Editorial Boards of the Journal of Management and Journal of Management Case Studies, Journal of Retail Banking, Case Research Journal, and Business Case Journal.  He was Vice President of Strategic Management for the Society for the Advancement of Management, and President of the North American Case Research Association.  Dr. Wheelen is a member of the Academy of Management, Beta Gamma Sigma, Southern Management Association, North American Case Research Association, Society for Advancement of Management, Society for Case Research, Strategic Management Association, and World Association for Case Method Research and Application.  He has been listed in Who’s Who in Finance and Industry, Who’s Who in the South and Southwest, and Who’s Who in American Education.






J. David Hunger, Ph.D. (Ohio State University), is Professor of Strategic Management at Iowa State University. He previously taught at George Mason University, the University of Virginia, and Baldwin-Wallace College. His research interests lie in strategic management, corporate governance, and entrepreneurship. He served as Academic Director of the Pappajohn Center for Entrepreneurship at Iowa State University. He worked in brand management at Procter & Gamble Company, as a selling supervisor at Lazarus Department Store, and served as a Captain in U.S. Army Military Intelligence. He has been active as consultant and trainer to business corporations, as well as to state and federal government agencies. He has written numerous articles and cases that have appeared in the Academy of Management Journal, International Journal of Management, Human Resource Management, Journal of Business Strategies, Case Research Journal, Business Case Journal, Handbook of Business Strategy, Journal of Management Case Studies, Annual Advances in Business Cases, Journal of Retail Banking, SAM Advanced Management Journal, and Journal of Management, among others. Dr. Hunger is a member of the Academy of Management, North American Case Research Association, Society for Case Research, North American Management Society, Textbook and Academic Authors Association, and the Strategic Management Society. He is past-President of the North American Case Research Association, Society for Case Research and the Iowa State University Board of Directors. He also served as Vice President of the U.S. Association for Small Business and Entrepreneurship (USASBE). He has served on the editorial review boards of SAM Advanced Management Journal, Journal of Business Strategies, and Journal of Business Research. He is also a member of the Board of Directors of the North American Case Research Association, the Society for Case Research, and the North American Management Society. He is coauthor with Thomas L. Wheelen of Strategic Management and Business Policy and Essentials of Strategic Management plus Concepts in Strategic Management and Business Policy and Cases in Strategic Management and Business Policy, as well as Strategic Management Cases (PIC: Preferred Individualized Cases), and a monograph assessing undergraduate business education in the United States.  The 8th edition of Strategic Management and Business Policy received the McGuffey Award for Excellence and Longevity in 1999 from the Text and Academic Authors Association. Dr. Hunger received the Best Case Award given by the McGraw-Hill Publishing Company and the Society for Case Research in 1991 for outstanding case development. He is listed in various versions of Who’s Who, including Who’s Who in the United Statesand Who’s Who in the World. He was also recognized in 1999 by the Iowa State University College of Business with its Innovation in Teaching Award and was elected a Fellow of the Teaching and Academic Authors Association in 2001.

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Table of Contents

Ch. 1 Basic concepts in strategic management 1
Ch. 2 Corporate governance 34
Ch. 3 Ethics and social responsibility in strategic management 55
Ch. 4 Environmental scanning and industry analysis 71
Ch. 5 Internal scanning : organizational analysis 104
Ch. 6 Strategy formulation : situation analysis and business strategy 137
Ch. 7 Strategy formulation : corporate strategy 163
Ch. 8 Strategy formulation : functional strategy and strategic choice 188
Ch. 9 Strategy implementation : organizing for action 213
Ch. 10 Strategy implementation : staffing and directing 238
Ch. 11 Evaluation and control 261
Ch. 12 Strategic issues in managing technology and innovation 291
Ch. 13 Strategic issues in entrepreneurial ventures and small businesses 316
Ch. 14 Strategic issues in not-for-profit organizations 338
Ch. 15 Suggestions for case analysis 353
Cases in strategic management
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We wrote Strategic Management and Business Policy to introduce you to strategic management—afield of inquiry that focuses on the organization as a whole and its interactions with its environment. The corporate world is in the process of transformation driven by information technology (in particular the Internet) and globalization. Strategic management takes a panoramic view of this changing corporate terrain and attempts to show how large and small firms can be more effective and efficient not only in today's world, but in tomorrow's as well.

This text contains the latest theory and research currently available in strategic management. We sifted through the past 5 years' worth of articles from the following academic and business publications: Academy of Management Journal, Strategic Management Journal, Academy of Management Review, Administrative Science Quarterly, Journal of Management, Long Range Planning, Organization Science, Academy of Management Executive, Organizational Dynamics, Journal of Business Strategy, SAM Advanced Management Journal, Journal of Business Strategies, Strategy and Leadership (previously Planning Review), Strategy and Business, Competitive Intelligence, Journal of Business Venturing, Entrepreneurship Theory and Practice, Harvard Business Review, Business Week, and The Economist.

Both the concepts and the cases have been class-tested in strategy courses and revised based on feedback from students and instructors. The first 10 chapters are organized around a strategic management model that prefaces each chapter and provides a structure for both content and case analysis. We emphasize those concepts thathave proven to be most useful in understanding strategic decision-making and in conducting case analysis. Our goal was to make the text as comprehensive as possible without getting bogged down in any t area. Endnote references are provided for those who wish to learn more about any particular topic. All cases in the combined text and the case text are about actual organizations. The firms range in size from large, established multinationals to small, entrepreneurial ventures, and cover a broad variety of issues. As an aid to case analysis, we propose the strategic audit as an analytical technique.


This book focuses on the following objectives, typically found in most strategic management and business policy courses:

  • To develop an understanding of strategic management concepts, research, and theories.
  • To develop a framework of analysis to enable a student to identify central issues and problems in complex, comprehensive cases; to suggest alternative courses of action; and to present well-supported recommendations for future action.
  • To develop conceptual skills so that a student is able to integrate previously learned aspects of corporations.
  • To develop an understanding of the global economy and the Internet and their current and potential impact on business activities in any location.
  • To develop an understanding of the role of corporate governance in strategic management.
  • To develop the ability to analyze and evaluate, both quantitatively and qualitatively, the performance of the people responsible for strategic decisions.
  • To bridge the gap between theory and practice by developing an understanding of when and how to apply concepts and techniques learned in earlier courses on marketing, accounting, finance, management, production, and information systems.
  • To improve research capabilities necessary to gather and interpret key environmental data.
  • To develop a better understanding of the present and future environments in which corporations must function.
  • To develop analytical and decision-making skills for dealing with complex conceptual problems in an ethical manner.

This book achieves these objectives by presenting and explaining concepts and theories useful in understanding the strategic management process. It critically analyzes studies in the field of strategy to acquaint the student with the literature of this area and to help develop the student's research capabilities. It also suggests a model of strategic management. It recommends the strategic audit as 1 approach to the systematic analysis of complex organization-wide issues. Through a series of special issue and comprehensive cases (available in the combined text and the cases text), it provides the student with an opportunity to apply concepts, skills, and techniques to real-world corporate problems. The book focuses on the business corporation because of its crucial position in the economic system of the world and in the material development of any society.

Time-Tested Features

This edition contains many of the same features and content that helped make previous editions successful. Some of the features are the following:

  • A strategic management model runs throughout the first 10 chapters as a unifying concept. (Explained in Chapter 1)
  • Corporate governance is examined in terms of the roles, responsibilities, and interactions of top management and the board of directors. (Chapter 2)
  • Social responsibility and managerial ethics are examined in detail in terms of how they affect strategic decision making. (Chapter 2)
  • Equal emphasis is placed on environmental scanning of the societal environment as well as on the task environment. Topics include forecasting and Miles and Snow's typology in addition to Porter's industry analysis. (Chapter 3)
  • Core and distinctive competencies are examined within the framework of the resource-based view of the firm.(Chapter 4)
  • Internal and external strategic factors are emphasized through the use of specially-designed EFAS, IFAS, and SFAS tables. (Chapters 3, 4, and 5)
  • Two chapters deal with issues in strategy implementation, such as organizational and job design plus strategy-manager fit, action planning, and corporate culture. (Chapters 8 and 9)
  • A separate chapter on evaluation and control explains the importance of measurement and incentives to organizational performance. (Chapter 10)
  • The strategic audit, a way to operationalize the strategic decision-making process, provides a tested methodology in case analysis. (Chapter 10)
  • Special chapters deal with strategic issues in managing technology and innovation, entrepreneurial ventures and small businesses, and not-for-profit organizations. (Chapters 11, 12, and 13, respectively) These issues are often ignored by other strategy textbooks.
  • Suggestions for in-depth case analysis provide a complete listing of financial ratios, recommendations for oral and written analysis, and ideas for further research. (Chapter 14)
  • The Strategic Audit Worksheet is based on the time-tested strategic audit and is designed to help students organize and structure daily case preparation in a brief period of time. The worksheet works exceedingly well for checking the level of daily student case preparation-especially for open class discussions of cases. (Chapter 14)
  • Key Theory As It Applies Capsules in various chapters explain key theories underlying strategic management. This feature adds emphasis to the theories, but does not interrupt the flow of the text material.
  • Projections for the 21st Century end each chapter by forecasting what the world will be like in 2010.
  • An experiential exercise focusing on the material covered in each chapter helps the reader to apply strategic concepts to an actual situation.
  • A list of key terms and the pages in which they are discussed enable the reader to keep track of important concepts as they are introduced in each chapter.
  • Timely, well-researched, and class-tested cases (available in the combined text and the cases text) deal with interesting companies and industries. Many of the cases are about well-known, publicly held corporations—ideal subjects for further research by students wishing to "update" the cases.
  • An Industry Note for use in industry analysis of the major home appliance industry is included for use by itself or with the Maytag case (available in the combined text and the cases text).

Features New to This 8th Edition


  • Each chapter contains a major section dealing with the impact of the Internet upon the content in that chapter as well as a boxed insert providing an illustration of how the Internet is affecting strategic management.
  • A new section on theories of organizational adaptation has been added to Chapter 1.
  • The corporate governance theory capsule in Chapter 2 compares agency theory with stewardship theory.
  • Chapter 3 contains a new section on using key success factors to create an industry matrix.
  • Chapter 6 contains an expanded section on horizontal corporate strategy and multipoint competition.
  • Real options are discussed in Chapter 7 as a way of evaluating strategic alternatives in a turbulent environment.
  • Strategy implementation in Chapter 8 now includes a section on the cellular organization, a new type of structure, which goes beyond the network structure.
  • Chapter 10 includes a new section dealing with enterprise resource planning as a part of strategic information systems.
  • New sections on the impact of stakeholders on innovation and on developing an entrepreneurial climate within an existing organization have been added to Chapter 11 on managing technology and innovation.
  • Chapter 12 now includes a section dealing with issues in corporate governance in small businesses and entrepreneurial ventures.

THIRTY-FIVE CASES (available in the combined text and the cases text)

  • 35 cases—21 new or revised & updated
    • Sixteen new cases (Singapore Telecom, Hewlett-Packard in Vietnam, Waterford Crystal, Oracle, Sun Microsystems,,, Hewlett-Packard, Gardner Distribution, Amy's Bread, Guajilote Cooperativo Forestal, Carey Plant, Redhook Ale Brewery, Boeing, Mercedes-Benz, and A.WA.R.E.)
    • Five revised and updated cases (Apple Computer, Kmart, Wal-Mart, Home Depot, and Vermont Teddy Bear).
  • Five special issue cases dealing with Corporate Governance (Reluctant Director at Byte Products and Wallace Group), Environment (The Audit and Brookstone Hospice), and Not-for-profit Organizations (A.WA.R.E.).
  • Twenty-six comprehensive strategy cases. These cases are excellent to use in team analyses and presentations. These cases are grouped into 10 industries:
    • Information Systems/Software (3 cases)
    • 4 Internet (2 cases)
    • Computer (2 cases)
    • Recreation & Leisure (3 cases)
    • Major Home Appliances (1 industry note and 1 case)
    • Mass Merchandising/Distribution (3 cases)
    • Specialty Retailing (2 cases)
    • Small/Medium Entrepreneurial Dentures (4 cases)
    • Beverage/Food (3 cases)
    • Aviation/Automobiles (2 cases)
  • Eighteen cases containing international issues
    • Six cases are of companies operating primarily outside North America (Singapore Telecom, Hewlett-Packard in Vietnam, Body Shop, Waterford Crystal, Guajilote Cooperativo Forestal, and Mercedes Benz and Swatch).
    • Twelve cases are of North American-based companies with significant international operations and issues (Oracle, Apple Computer, Cisco Systems, Sun Microsystems, Hewlett-Packard, Carnival, Harley-Davidson, Reebok, Major Home Appliance Industry, Maytag, Boeing, and WalMart).
  • Seven cases contain Internet-related issues
    • Two cases are of dot-com companies whose business model is the Internet ( and WingspanBank).
    • Five cases are of companies whose mission is tied to the Internet either directly (Oracle, Cisco Systems, and Sun Microsystems) or indirectly (Apple Computer and Hewlett-Packard).
  • Cases of companies at all stages of corporate development
    • I. Entrepreneurial Companies with Founder as CEO (17)
      A. Small / Medium Companies (10)
      • Redhook Ale Brewery
      • Inner-City Paint
      • Brookstone Hospice
      • Recalcitrant Director at Byte
      • Wallace Group
      • Amy's Bread
      • Guajilote Cooperativo Forestal
      • A.WA.R.E.
      B. Large / Very Large (7)
      • Apple Computer
      • Cisco Systems
      • Sun Microsystems
      • Oracle
      • Reebok
      • Home Depot
      • Body Shop
    • II. Established Companies Managed by Professional Managers (14)
      • Tasty Baking
      • Hewlett-Packard
      • Vermont Teddy Bear
      • Singapore Telecom
      • Carnival
      • Mercedes Benz and Swatch
      • Harley-Davidson
      • Major Home Appliance Industry
      • Maytag
      • Kmart
      • Gardner Distribution
      • Wal-Mart
      • Arm & Hammer (Church & Dwight)
      • Waterford Crystal
      III. Business Units / Joint Ventures (3)
      • Boeing Commercial Group
      • Hewlett-Packard in Vietnam
      • The Carey Plant


Supplemental materials are available to the instructor from the publisher. These include both Text and Case Instructor Manuals; an Instructor's Resource CD-ROM containing the Concepts IM, Computerized Test Manager, and PowerPoint Electronic Transparencies; New Part-Ending Video; and myPHLIP Web site. Also available are the following Standard Online Courses-Blackboard, Course Compass, and WebCT.


Two comprehensive Instructor's Manuals have been carefully constructed to accompany this book. The first one accompanies the text chapters; the second one accompanies the cases.

Text Instructor's Manual

To aid in discussing the 14 chapters dealing with strategic management concepts, the Text Instructor's Manual includes:

  1. Suggestions for Teaching Strategic Management—discusses various teaching methods and includes suggested course syllabi.
  2. Chapter Notes—includes summaries of each chapter, suggested answers to discussion questions, suggestions for using end of chapter cases/exercises, plus additional discussion questions (with answers) and lecture modules.
  3. Multiple choice test questions—contains approximately 50 questions for each of the 14 chapters summing to over 700 questions from which to choose.

Case Instructor's Manual

To aid in case method teaching, the Case Instructor's Manual includes detailed suggestions for use, teaching objectives, and examples of student analyses for each of the 35 cases. This is the most comprehensive instructor's manual available in strategic management. A standardized format is provided for each case:

  1. Case Abstract
  2. Case Issues and Subjects
  3. Steps Covered in the Strategic Decision-Making Process
  4. Case Objectives
  5. Suggested Classroom Approaches
  6. Discussion Questions
  7. Case Author's Teaching Note
  8. Student-written Strategic Audit or Paper
  9. EFAS, IFAS, SIAS Exhibits
  10. Financial Analysis-ratios and common-size income statements
  11. Student Strategic Audit Worksheet


The Instructor's Resource CD-ROM includes the electronic Instructor's Manual, Win/PH Test Manager, and PowerPoint Electronic Transparencies. Containing all of the questions in the printed Test Item File, Test Manager allows educators to create and distribute tests for their courses easily, either by printing and distributing through traditional methods or by online delivery via a Local Area Network (LAN) server.


New! The 8/e now offers all new part-ending footage shot at Newbury Comics, an exciting and current popular culture retail chain. Segments address key issues such as the company's basic model, mission and vision; and decision-making models. Accompanying case information can be found at the end of the parts in the text.


The PowerPoint transparencies, a comprehensive package of text outlines and figures corresponding to the text and cases, are designed to aid the educator and supplement in-class lectures.


Courses are available in Blackboard, Course Compass and WebCT. These courses feature Companion Web Site and Test Item File Content in an easy-to-use system. Developed by educators for educators and their students, this online content and tools feature the most advanced educational technology and instructional design available today. The rich set of materials, communication tools, and course management resources can be easily customized to either enhance a traditional course or create the entire course line.


Mastering Strategy is the first product in the Mastering Business series. It offers students an interactive, multimedia experience as they follow the people and issues of Canto, Inc., a small Internet startup. The text, video, and interactive exercises provide students an opportunity to simulate the strategic planning experience and chart the future activities for Canto.


Free with any PH text, this guide introduces students to many aspects of e-business and the Internet, providing tips on searching out information, looking for jobs, continuing education, and using the Internet in Management courses.


Participating students qualify for a $10.00, 15-week subscription to the Financial Times. How It Works: Wheelen/Hunger text + subscription package will contain a 16-page full-color Financial Times student guide shrink-wrapped to the text. Bound inside the student guide will be a postcard which entitles the student to claim a pre-paid 15-week subscription to the Financial Times. Free subscription for professors who choose to use this package! Contact your local Prentice Hall representative for more information.

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