Balancing theory with practice, this fully updated fourth edition of John A. Parnell's acclaimed text continues to provide detailed, accessible coverage of the strategic management field. Concise, easy to understand chapters address concepts sequentially, from external and internal analysis to strategy formulation, strategy execution, and strategic control. To help readers build their analytic skills as they master course concepts, Parnell aligns each chapter's key concepts with 25 case analysis steps, rather than relegating case analysis to a chapter at the end of the book. Current examples and high interest real-time cases, largely drawn from The Wall Street Journal and Financial Times, illustrate the key role of strategic management in the United States and around the world. Ideal for the capstone strategic management course, Strategic Management is appropriate for a range of undergraduate and graduate courses.

Strategy Formulation

Strategy formulation

Chapter Outline

  • Strengths and Weaknesses
  • Human Resources
    • Board of Directors
    • Top Management
    • Middle Management, Supervisors, and Employees
  • Organizational Resources
  • Physical Resources
  • Opportunities and Threats
  • The SW/OT Matrix
  • Issues in Strategy Formulation
    • Evaluating Strategic Change
    • Strategy, Corporate Social Responsibility, and Managerial Ethics
    • Effects on Organizational Resources
    • Anticipated Responses From Competitors and Customers
  • Summary
  • Key Terms
  • Review Questions and Exercises
  • Practice Quiz
  • Student Study Site
  • Notes

This chapter marks a shift from analysis toward recommendations. Reconsidering the firm's current strategic initiatives is the first step in evaluating its activities and thinking about what the firm should be doing.

After the firm's mission and ongoing strategic directions are well understood, the organization can begin to craft a strategy. The first step in this process, a SWOT (strengths, weaknesses, opportunities, and threats) analysis, enables top managers to position the firm to take advantage of ...

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