Strategic Management Concepts And Cases, 15th Global Edition Solution Manual

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Chapter 1-Strategic Management EssentialsOverviewChapter 1 introduces the basic terms in strategic management. This chapterpresents the comprehensive model for strategic planning that appears in each subsequentchapter and provides aunifying, logical flow for the entire textbook. This chapterdescribes the benefits of doing strategic planning, the drawbacks of not doing strategicplanning, and the pitfalls of doing strategic planning incorrectly.Learning Objectives:1.Discuss the nature and role of a chief strategy officer (CSO).2.Describe the strategic-management process.3.Explain the need for integrating analysis and intuition in strategic management.4.Define and give examples of key terms in strategic management.5.Discuss the nature of strategy formulation, implementation, and evaluation activities.6.Describe the benefits of good strategic management.7.Discuss the relevance of Sun Tzu’sThe Art of Warto strategic management.8.Discuss how a firm mayachieve sustained competitive advantage.Teaching Tips1. Spend about 40 minutes going over the comprehensive strategic management model inFigure 1-1, highlighting each component part with examples. This is the best way tocover the terms introduced in the chapter. Pull upthe new and improved author websitefor this textbook, because it has great resources for students. The URL iswww.strategyclub.com2. The Edward Deming quote mentioned in Chapter 1 (In God We Trust, All OthersBringthe Data) is vitally important in this course, because students tend to use vagueterms throughout their case analysis. Vagueness is detrimental to development of anystrategic plan. Therefore, highlight and emphasize the relevance and importance of theDeming quote and tell students that vagueness is disastrous in this course. Strategiesmust be formulated to the extent possible on factual, specific, underlying key internal andexternal factors, rather than trying to formulate strategies based on general statements,opinion, or intuition.3. Highlight Figure 1-2 on “the benefits of doing strategic planning.” Use that exhibit toemphasize the many benefits of doing strategic planning, as well as the drawbacks of notdoing strategic planning.

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4. Ask students to raise their hand if they played football, basketball, or soccer for thecollege/university. Ask several of those athletes to “tell the class how important having agood game plan is to the success of an athletic team.” Associate their answers to theimportance of a business having a good game plan,i.e.,strategic plan.5. Regarding the “Comparing Business and Military Strategy” section, emphasize tostudents that there are countless examples in military history where a superior army wasdefeated by a smaller army that had a better strategic plan. The famous general,Alexander the Great, who never lost a battle, said(paraphrased):“I’d rather face an armyof lions led by a sheep, than an army of sheep led by a lion.” Thatquote emphasizes theimportance of strategic planning, and having an excellent strategist.6. All45end-of-chapter review questions are excellent to go over in class. Sometimes inclass, the authors will assign every student a question and give the class 10 minutes todevelop answers and then let each student give the class the answer, and then commenton the answer (answers to all questions are given later in this manual). This is a greatway to promote teacher/student interaction.7. Ask students to read theAdidas GroupCohesion Case presented after Chapter 1because a third of all the end-of-chapter exercises apply chapter concepts to theAdidasGroupcase–thus preparing students for developing a case analysis on their assignedcompany. Divide students into 3 or 4 person teams within the first two weeks of classand assign to them one of the26cases in the book, and schedule a day for the teams toeach give a 20 minute oral presentation revealing their recommended three-year strategicplan for the firm. The authors and most professors using this book use this approach.8. It is important to spend some class time also on Exercise 1B that applies the strategicmanagement process to theAdidas GroupCohesion Case. Make sure studentsunderstand the basic strategic planning process as applied toAdidas Groupand revealedin that exercise. Associated exercises at the end of other chapters utilize the informationobtained from Exercise 1B and collectively help prepare students for performing caseanalysis on their assigned company.9. Read the “Special Note to Students” at the end of this chapter and explain itsimportance to students.10. Skip over to the last three pages in book (before the cases start) and go through thatbasic timeline/outline for a strategic management case analysis–so students will knowwhat is expected of them in terms of preparing their case analysis/project for the course.Refer to these three pages often in the course.

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Answersto End-of-Chapter ReviewQuestions1.Singapore Airlines has done very well in 2013. Briefly explain whether this strategy willbe just as effective going forward.Answer:Singapore Airlines has achieved competitive advantage through the formulation andimplementation of effective strategies. The company has effectively pursued diversificationthrough the combination of its long-haul airlines (Singapore Airlines) and short-haul regionalbusinesses (Silk Air). With its extensive reach, its reputation for service excellence, and fleet oftechnologically advanced aircraft it also beats its competitors by offering a unique valueproposition to its customers. Its competitive advantage is indicated in its having been ranked asthe 31st most admired company in the world (outside of the United States) as well as across-the-board improvements in load factors in a fiercely competitive industry. However, havingachieved competitive advantage today is no guarantee of sustaining competitive advantagetomorrow. The effectiveness of its current strategies will depend on the top management team’scapacity to adapt the organization to emerging trends in the external environment better thanwill its rivals!2.Does Singapore Airlines have its strategic plan posted on its website? Should thecompany do so? Why or why not?Answer:The Singapore Airlines strategic plan is not found on the company’s website.Effectively formulated and implemented strategic plans are critical components of a company’scompetitive advantage. Sustaining that advantage requires the use barriers to imitation in orderto prevent rivals from identifying and imitating the underlying drivers of such competitiveadvantage. One such barrier is the use of ambiguity by ensuring that strategic plans remainsecret.3.Compare and contrast the activities involved in strategy formulation versus strategyimplementation.Answer:Strategy formulation includes developing a vision and mission, identifying anorganization’s external opportunities and threats, determining internal strengths andweaknesses, establishing long-term objectives, generating alternative strategies, and choosingparticular strategies to pursue. This is in great contrast with strategy implementations whichincludes developing a strategy-supportive culture, creating an effective organizational structure,redirecting marketing efforts, preparing budgets, developing and utilizing information systems,and linking employee compensation to organizational performance.4.Given the political and economic collapse of various Middle Eastern and Europeancountries, identify a list of companies for which gaining and sustaining competitiveadvantage has permanently changed.Answer:The Middle East and North Africa (MENA) region has experienced a significantamount of political and economic upheaval in recent years. That upheaval has led to the

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emergence of both opportunities and threats in the external environment. The region hasexperienced political upheaval in Egypt, a protracted internal conflict in Syria, and anadversarial between Western nations. And new opportunities have emerged in vibrant emergingeconomies in the United Arab Emirates and Qatar. Given these potentially disruptive changeswhat it takes to gain and sustain competitive advantage has changed irrevocably. The followingis a list of companies in which strategists find themselves diligently working to navigate thechanging political-economic landscape:Company NameCountrySectorSaudi AramcoSaudi ArabiaPetrochemicalsAl-Rajhi Bank &Investment CompanySaudi ArabiaFinancial servicesIndustries QatarQatarIndustryQatar National BankQatarFinancial servicesEtisalatUnited Arab EmiratesTelecomsSaudi Telecom CompanySaudi ArabiaTelecomsKingdom Holding CompanySaudiArabiaFinancial servicesNational Bank of KuwaitKuwaitFinancial servicesEtihad Etisalat Company (Mobily)Saudi ArabiaTelecomsSaudi Electricity CompanySaudi ArabiaUtilities5. There is a dramatic shift in mass retailing to become smaller. Give four reasons for thisphenomena. Give four corporate examples of this.Answer: Four reasons for this phenomenon are:•The increasing use of the internet–on line socialnetworking sites such as Facebook,Myspace•Change of consumer habits–consumers today are flocking to blogs, short-postforums such as Twitter, YouTube•On line sales can boost in-store sales in the use of on line to promote in-storepromotion•On a political map, the boundaries between countries have largely disappeared.6.Avoid being merely descriptive in your written or oral case analysis; rather, beprescriptive, insightful, andforward-looking throughout your project. Discuss themeaningof this sentence.Answer: Do not just describe the project you will be writing but analyze the points andexamine the factors affecting the rapidly changing environment.7.Explain what Dale McConkey means when he says “plans are less importantthan planning” in the opening-chapter quotes.Answer: Plans are the result of planning, hence if there is no planning, plans will not bedeveloped.8.In terms of developing a strategic plan, what does Edward Deming mean whenhe says “In God we trust. All others bring data.”

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Answer: The strategic management process attempts to organize qualitative andquantitative information in a way that allows effective decisions to be made underuncertainty conditions which come from other people. In such uncertainty data we haveto trust God that we make a correct decision.9.Strategy formulation, implementation, and evaluation activities occur at whatthree hierarchical levels in a large organization?Answer:Strategic management process consists of three stages:Corporate, divisional orstrategic business unit and functional.10.What was Einstein’s rationale for saying “Imagination is more important thanknowledge”?Do you agree with Einstein? Whyor why not?Answer: Yes, I agree with Einstein because to be a market leader one must havecompetitive advantages which are derived from imagination while knowledge is commonto all people and hence do not have any competitive advantages.11. What does Drucker mean when he says “I believe in intuition only if youdiscipline it”?Do you agree with Drucker? Whyor why not?Answer: Yes I agree with Drucker because the fast rate of change today is producing abusiness world in which customary managerial habits are not adequate. In the past, wherechanges were not rapid andsmall changes, experience alone was an adequate guide.However, when there are strategic decisions which affect major irrevocableconsequences, intuitive and experience-based management philosophies; withourdiscipline, are greatly inadequate.12.Strategic management is all about gaining and maintaining competitiveadvantage. Explain and give three examples.Answer:Strategic management focuses on integrating management, marketing,finance/accounting, production/operations, research and development, and informationsystems to achieve success.Three examples are:•Strategy formulation•Strategy implementation•Strategy evaluation13. Based on the definition of strategists in Chapter 1, identify the top five strategiststhat you have ever personally spoken to and interacted with.Answer:Students’ answers will vary, depending on their contacts.

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14. For your college or university, would collapse of the euro currency be a majorthreat or opportunity? Why? What is the probability in your view of such acollapse?Answer: Students’ answers will vary.15. Strategic management is not a panacea for success. It can be dysfunctional ifconducted haphazardly. Give five examples of potential “haphazard” aspects of theplanning process.Answer: The five examples are:•Failure to involve key employees in all phases of planning•Failing to create a collaborative climate supportive of change•Becoming too engrossed in current problems resulting in insufficient or no planning•Being too formal in planning so that flexibility and creativity are stifled•Doing strategic planning only to meet accreditation or regulatory requirements16. Explain why an important guideline for effective strategic management is open-mindedness.Answer: Open mindedness create a corporate culture which promotes collaborativeclimate supportive of change. This climate prompts employees to give their ideas etc anddoes not stifled creativity.17. Explain how and why firms are today using social networking sites to gaincompetitive advantage.Answer:The internet has changed the way people organize our lives; inhabit our homes,and relate to and interact with family, friends,neighbors, and even ourselves. Consumerstoday are flocking to blogs, short-post forums such as Twitter, YouTube and socialnetworking sites such as Facebook, Myspace instead of traditional communication meanssuch as television, radio, newspapers and magazines.18. Compare and contrast vision versus mission statements.Answer:A vision statement identifies what the company aims to be and acts as a sourceof inspiration. This will help in decision-making for the future. Mission statements arestatements of purpose that distinguish one business from other similar firms byidentifying the scope of a firm’s operations in product and market terms.19. In your opinion, identify the top 10 external factors affecting your university.Rank your top 10 with one being most important.Answer:Student answers may vary.

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20. In order of importance, rank the top six benefits of a firm engaging in strategicmanagement.Answer: Student answers may vary and should draw from the section entitled “Benefitsto a Firm That Does Strategic Planning”.1.Financial benefit–it generates more revenue for the firm.2.It allows major decisions to better support established objectives.3.It allowsidentification, prioritization, and exploitation of opportunities.4.It provides an objective view of management problems.5.It represents a framework for improved coordination and control of activities.6.Itminimizes the effects of adverse conditions and changes.21. In order of importance, rank the top six reasons that many firms do no strategicplanning.Answer:The top 6 reasons are:•Lack of knowledge or experience in strategic planning•Poor reward structure•Firefighting•Waste of time•Too expensive•Laziness22. In order of importance, rank the top six guidelines to follow in conductingstrategic management activities.Answer:The top 6 guide lines are:•Should be a people process more than a paper process•Should be learning process for all managers and employees•Should be words supported by numbers and not numbers supported by words•Should be simple and non routine•Should vary assignments, team memberships, meeting formats, and planning calendar•Should challenge assumptions underlying currentcorporate strategy23. Discuss how relevant you think Sun Tzu’sArt of Warwritings are for firmstoday in developing and carrying out a strategic plan.Answer: SunTzu’s Art of Warwritings are still relevant in the following areas:•Speedy victory–similar in a war situation; launching a marketing plan should be fastso that competitors would have little time and readiness to respond.•Know your enemy and yourself–in a strategic plan, SWOT analysis is extremelyimportant, so that we know what are our competitive advantages are as well as theweaknesses of our competitors.•Be the first is imperative in today’s strategic plan–a market leader.

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•Lastly like Sun Tzu’s Art of War writings, creativity is extremely relevant indeveloping and carrying out a strategic plan.24. Determine the ways and means that your college or university does strategicplanning and report on these efforts to your class.Answer: Student answers will vary.•The college looks at their position in the market–missionstatement.•Then they look at where they want to go and in which direction i.e. the short, mediumand long term objectives.•Finally, how are they achieving where they want to go–strategies25. Go to the www.strategyclub.com website and describe the strategic planningproducts offered.Answer: The SMCO website provides links to websites with information useful for caseanalysis such as corporate websites, business analysis services, news sites, magazines,governmental sites, and financial ratio analyses. It also provides links to job searchwebsites, graduate school websites, and websites related to strategic planning. Severalsoftware packages are available for purchase on the site including a template forgenerating the matrices required for case analyses.26. Compare and contrast the extent that strategic-planning concepts are used bycompanies in your country versus companies in the United States?Answer: Student answers will vary.For example, companies in Singapore generally fallinto twogroups: subsidiary of multinational companies or domestic companies. Theformer follows strategies set by their parent company while the latter practice some formsof strategic planning although perhaps not as much as their counterparts. Domesticcompanies are looking at stabilizing their business, generating enough profits before theyembark on overseas expansions. Furthermore, domestic companies do take a morereactive rather than a proactive approach.27. Would strategy formulation or strategy implementation concepts differ moreacross countries? Why?Answer: These concepts differ across countries. The internal and external factors differ–such as company resources, government / political regulations; different cultural factors;technological advances. These factors impact upon strategy formulation or strategyimplementation.28. Compare strategic planning with long range planning.Answer: Long-range planning is used to optimize for tomorrow the trends of today, whereasstrategic planning is used to exploit and create new and different opportunities for tomorrow.

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29. What are the three activities that comprise strategy evaluation? Why is strategyevaluation important even for successful firms?Answer:Strategy evaluation consists of: Suitability, Feasibility and Acceptability.Suitability deals with the overall idea of strategy and how it addresses the organization’sstrategic position. Feasibility is concerned with whether the company has sufficientresources to carry out the strategy. Acceptability is concerned with the major stakeholdersof the company. Strategy evaluation is always important (even for successful firms) sothey can check that the company is on the right track in terms of strategic management aswell as fully maximizing the use of the resources they have invested in. Also, strategyevaluation will assure major stakeholders of the company that the various businessstrategies are for more future successes for the company.30. Explain how a firm can achieve sustained competitive advantage.Answer:A firm can achieve sustained competitive advantage by constantly analyzing itscompetitors’ business strategies as well as updating PEST (Political, Economical, Social,and Technological) analysis. The firm should continue studying the evolving trendswithin as well as out of the country. The firm should also constantly conduct a SWOT(Strengths, Weaknesses, Opportunities,and Threats) analysis to be able to come up withbetter strategies.31. Identify and give an overview of three social networking sites that firms areusing to gain competitive advantage.Answer:In Singapore, the three most popular social networking sites used are:Friendster, Facebook and MySpace. These networking sites allow users to upload theirprofiles,interests, photos and videos and share them with other contacts and friends. Thewebsites are also used for dating, and discovering new bands, events and hobbies.Forexample, Starbucks Singapore has a fan-page on Facebook with a total of 60,000members. They constantly update the page with new events, promotions and products.These updates are then reflected on the “status feeds” of those who subscribed to the fanpage.32.List four strategists whom you know personally. Rank them on theireffectiveness as a leader in theirOrganization.Answer:Mr. Khalid A. Al-Falih is the President and Chief Executive Officer of Saudi Aramco, theworld’s largest energy company.Sir Tim Clark is the President of Emirates Airlines. Mr. Clark joined emirates in 1985and has been instrumental in transforming the airline from a one-route carrier to theworld’s largest airline in terms of passenger miles flown.

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Mr. James Hogan is President and CEO of Etihad Airways, the national airline of theUnited Arab Emirates. Mr. Hogan joined Etihad in 2006 and has overseen the company’sexplosive growth and internationalization.Mr. Mohammed Sharaf is the Chief Executive Officer of Dubai Ports (DP) World. Mr.Sharaf has overseen the growth of DP World into a highly competitive business withoperations in over 30 countries.33.List six characteristics of objectives and give an example of each.Answer:•State direction: Example: Our sales target for year 2011 is to achieve $4 million ofnew business•Aid in evaluation: Example: We must build this new home in 2 years•Create Synergy: Example: In order to achieve $4 million of new business, we needProduction to increase production capacity, Sales to look for new markets;Procurement to source for low priced but good quality raw materials. Everyone has towork together to make it a success.•Reveal Priorities: Example: There are two objectives: to increase Sales by 10% thisyear or to reduce number of staffs?•Motivating: Example: If we achieve our $10 million sales, everyone will get 10%salary increase.•Controlling activities: Example: We shall meet every Monday to know the progressof our Sales and to take corrective actions.34. Conduct Internet research to determine what percentage of persons in yourcountry smoke. What is the implication of this for firms in your country?Answer: The basic principles of research methodology must be utilized: researchobjectives, principles of questionnaires being asked, sample size, population size, dataanalysis and interpretation etc.If your country has a high population of smokers, consider the following: smoking can bequite sociable and many people often smoke when they go out to bars and restaurants.This will then have an impact on the food and beverage industry. Another example is thatsmokers often buy mints or gum and this will have an impact on the confectionaryindustry.35. List four financial and four nonfinancial benefits of a firmengaging in strategicplanning.Answer: Businesses engaging in strategic planning experience the following financialbenefits. They show significant improvement in sales, profitability, and productivitycompared to firms without strategic planning activities. Firms using strategic planninggenerally exhibit superior long-term financial performance relative to their industry andseem to make more informed decisions with good anticipation of both short and long-

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term consequences. They are also prepared for fluctuations in their external and internalenvironments. In addition to the financial benefits, firms using strategic planning alsoexperience nonfinancial benefits. These include an enhanced awareness of externalthreats, an improved understanding of competitors’ strategies, increased employeeproductivity, reduced resistance to change, and a clearer understanding of performance-reward relationships.36. Compare business strategy and military strategy.Answer:Business and military strategy are similar in many respects. Many of the ideasdeveloped in business strategy were first formulated as military strategy. Both militaryand business organizations have competitors. A fundamental difference between militaryand business strategy is that business strategy is formulated, implemented, and evaluatedwith the assumption of competition, while military strategy is based on an assumption ofconflict.37. Strategic planning should be more a people process than a paper process.Explain.Answer:Strategic planning requires people to give inputs and for them to manage theprocess, it is not just paperwork.38. Strategic planning should not be controlled by technicians. Explain.Answer:Strategic planning should not be controlled by technicians because they are soformal in planning that flexibility and creativity are stifled.39. According to Sun Tzu, warfare is based on deception. Should strategic planningbe based on deception? Explain.Answer:Strategic planning should not be based on deception because companies look atlong term growth not just short term goal. In addition, companies have to be answerableto its stakeholders, as well as its shareholders.40. Sun Tzu says “Generally, in war the best policy is to take a state intact; to ruin itis inferior to this.” Explain. Is this true in corporate strategic planning? Explain.Answer:It means that if we could conquer the enemies without much warfare, both sideswill not suffer many casualties, and not overly used of resources as no organization hasunlimited resources etc.This is true in corporate planning because no organization hasunlimitedresources, strategists must decide which alternative strategies will benefit thefirm most.41.What is Singapore Airlines’ competitive advantage? How can this advantage besustained?

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Answer:Singapore’s competitive advantage lies in its capacity to executive on a valueproposition that results in a reputation for excellence in the consistent delivery of high qualityservice to customers in need of access to frequent, efficient, and reliable international/long-haultransport. Competitive advantage may be sustained by ensuring that competitive strategiescontinue to reflect the emerging reality of evolving needs of customers and the changingdimensions of competition (e.g. price competition, the incorporation of technologicallyadvanced aircraft,and arange of differentiated in-flight services).42.Are there any compelling reasons why the external audit and internal auditshould not be conducted simultaneously?Answer: There are no compelling reasons why the external audit and internal audit shouldnot be conducted simultaneously.43. Which stage of strategic management do you feel is most important? Why?Answer: Strategic management process consists of 3 stages:•Strategy formulation•Strategy implementation•Strategy evaluationEach state is equally important as they are interdependent of each other.44.Should strategic planning be more open or closed, (i.e.hidden or transparent)?Why?Answer:Strategic planning process should be more open because of the pitfalls instrategic planning is failing to communicate the plan to employee, who continuesworking in the dark.45.Discuss the extent to which strategic planning concepts would be applicable toindividuals managing their own lives.Answer:Strategic planning concepts to a large extent is applicable to individualsmanaging their own lives for example, as managers amass experience, they may rely lesson formalized planning, a result of overconfidence; or when a person hasachieved status,privilege, or self-esteem, he/she often sees a new plan as a threat.

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Answerstothe End-of-Chapter Assurance ofLearning ExercisesASSURANCE OF LEARNING EXERCISE 1A:ASSESS SINGAPORE AIRLINE’S MOST RECENT QUARTERLYPERFORMANCE DATAPurposeThis exercise gives you practice examining the progress afirm is making in executing itsstrategicplan. Singapore Airlines utilizes excellent strategic management as showcased at thebeginning ofChapter 1.InstructionsStep 1:Go to Singapore Airlines’ website. Click on About Us and then Investor Relations.Step 2:Review Singapore Airlines’ most recent quarterly report.Step 3:Examine the change in performance variables for that most recent quarter versus theprioryear-over-year quarter.Step 4:What strategic changes were made during that quarter? What additional changes inyourview are still needed? How is the company doing? What are key problem areas?ASSURANCE OF LEARNING EXERCISE 1B:GATHERING STRATEGY INFORMATION ON ADIDAS AGPurposeThe purpose of this exercise is to get you familiar with strategy terms introduced anddefined inChapter 1. Let’s apply these terms to the Cohesion Case on adidas AG.InstructionsStep 1:Go to the adidas corporate website. Click on Investors and then Financial Reports.Downloadthe most recentAnnual Report. This document may be quite long, so you maywant to copythe document electronically. TheAnnual Reportcontains excellentinformation for developinga list of internal strengths and weaknesses for adidas.Step 2:Go to your college library and make a copy ofStandard & Poor’sIndustrySurveys for theathletic footwear and apparel industry. This document will containexcellent information fordeveloping a list of external opportunities and threats facingadidas.Step 3:Go on the Internet and find and print information about adidas’s three majorcompetitors: Nike,Puma, and Callaway Golf.Step 4:Using the information gathered above, on a separate sheet of paper, list what youconsiderto be adidas’s three major strengths, three major weaknesses, three majoropportunities, andthree major threats. Eachfactor listed for this exercise must include a%, #, $, or ratio toreveal some quantified fact or trend. These factors provide the

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underlying basis for a strategicplan, because a firm strives to take advantage of strengths,improve weaknesses, avoidthreats, and capitalize on opportunities. Estimate the #’s asneeded.Step 5:Through class discussion, compare your lists of external and internal factors tothose developedby other students and add to your lists of factors. Keep this informationfor use in laterexercises at the end of other chapters.Step 6:Be mindful that whatever case company is assigned to you and/or your team ofstudents thissemester, you can start to update the information on your company byfollowing the stepslisted for any publicly held firm.Teaching NotesStudents should show their understanding of SWOT analysis-the key aspect of strategicmanagement.In SWOT analysis students are expected to analyze the Strengths, Weaknesses,Opportunities and Threats for internal andexternal factors.The company’s financial resources, human resources and technological resources, andphysical infrastructure comprise of the internal factors.External factors consist of Political, Economic, Social, Technology, Legal, and theEnvironment (competitors, suppliers)–“PESTLE”.ASSURANCE OF LEARNING EXERCISE 1C:GETTING FAMILIAR WITH THE FREE EXCEL STUDENT TEMPLATEPurposeThis exercise is designed to help strategic management students become familiar with thefree Excelstudent template for the case analysis offered by the authors.InstructionsStep 1:Go to the Strategy Club’s website. Download the free Excel student template.Step 2:Write a one-page summary summarizing the template and explaining why howthe templatewill benefit you the most in this course.ASSURANCE OF LEARNING EXERCISE 1D:EVALUATING AN ORAL STUDENT PRESENTATIONPurposeQuite often in a strategicmanagement course, a team of students is required to give a 15to 25 minutecase analysis oral presentation. This exercise gives you insight on some do’sand don’ts regarding oralpresentations.

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InstructionsStep 1 Go to Strategy Club’s website and watch the student case analysis presentationgiven there.Critique the presentation. What are four aspects that you liked most and fouraspects thatyou liked least?ASSURANCE OF LEARNING EXERCISE 1E:STRATEGIC PLANNING AT NESTLÉPurposeThe purpose ofthis exercise is to give you experience investigating the strategic plan oflarge, publiclyheld firms such as Nestlé SA. An important aspect of formulating astrategic plan is to assess thestrategic plans of rival firms. For this exercise, you are onthe top management team of M&M Mars, alarge chocolate company that competes withNestlé in the confectionery business worldwide.InstructionsStep 1:Go to Nestlé’s website and review the company’s recentAnnual Report. List asclearly asyou can the five major strategies that Nestlé is pursuing worldwide.Step 2:Go to M&M Mars’s website and determine as best you can what the privatelyheld firm isdoing worldwide to compete with Nestlé.Step 3:Write a one-page paper that summarizes your assessment of Nestlé’s strategicplan ascompared to M&M Mars’s strategic plan. Include whether you feel beingprivately held, asM&M Mars is, enables a firm to conceal its strategic plan from rivalfirms. Do you feel it isadvantageous to keep strategies secret from shareholders,employees, creditors, suppliers,and other stakeholders? What would be the advantages ofbeing publicly held?Teaching NotesRefer to page52, Table 1-2“Seventeen Guidelines for the Strategic Planning Process tobe Effective,” provides the students with the following points:•People process more than paper process•Learning process for all managers and employees•Words supported by numbers rather thannumbers supported by words•Simple and nonroutine•Vary assignments, team memberships, meeting formats, planning calendar•Challenge the assumptions underlying current corporate strategy•Welcome bad news•Open-mindedness and spirit of inquiry and learning•Not be a bureaucratic mechanism•Not become ritualistic, stilted or orchestrated•Not to be too formal, predictable or rigid

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