Essentials Of Strategic Management, 5th Edition

ESSENTIALS OF STRATEGIC M ANAGEMENT Fifth Edition ESSENTIALS OF STRATEGIC M ANAGEMENT J. David Hunger Saint John’s University Iowa State University Thomas L. Wheelen Formerly with University of Virginia Trinity College, Dublin, Ireland Editorial Director: Sally Yagan Editor in Chief: Eric Svendsen Acquisitions Editor: Kim Norbuta Director of Editorial Services: Ashley Santora Editorial Project Manager: Claudia Fernandes Editorial Assistant: Meg O’Rourke Director of Marketing: Patrice Lumumba Jones Marketing Manager: Nikki Ayana Jones Marketing Assistant: Ian Gold Senior Managing Editor: Judy Leale Production Project Manager: Debbie Ryan Operations Specialist: Clara Bartunek Creative Art Director: Jayne Conte Cover Designer: Bruce Kenselaar Manager, Visual Research: Beth Brenzel Manager, Rights and Permissions: Shannon Barbe Image Permission Coordinator: Christie Barros Manager, Cover Visual Research & Permissions: Karen Sanatar Cover Art: Fotolia Full-Service Project Management: Sadagoban Balaji/Integra Software Services, Ltd. Composition: Integra Software Services, Ltd. Printer/Binder: R R Donnelley/Harrisonburg Cover Printer: R R Donnelley/Harrisonburg Text Font: 10/12 Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text. Copyright © 2011, 2007, 2003, 2001 by Pearson Education, Inc., publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458. Many of the designations by manufacturers and seller to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Hunger, J. David Essentials of strategic management / J. David Hunger, Thomas L. Wheelen.-5th ed. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-13-600669-5 (alk. paper) ISBN-10: 0-13-600669-8 (alk. paper) 1. Strategic planning. 2. CASE method. I. Wheelen, Thomas L. II. Title. HD30.28.H867 2010 658.4'012—dc22 2010007380 10 9 8 7 6 5 4 3 2 1 www.pearsonhighered.com ISBN 10: 0-13-600669-8 ISBN 13: 978-0-13-600669-5 Dedicated To Kathy, Richard, & Tom Betty, Kari & Jeff, Suzi & Nick, Lori & Dave, Merry & Dylan; Maddie & Meggie, Summer & Kacey; and Wolfie the dog BRIEF CONTENTS PART I Introduction to Strategic Management Chapter 1 Basic Concepts of Strategic Management Chapter 2 Corporate Governance and Social Responsibility PART II Scanning the Environment Chapter 3 Environmental Scanning and Industry Analysis Chapter 4 Internal Scanning: Organizational Analysis PART III Strategy Formulation Chapter 5 Strategy Formulation: Si