The Balanced Scorecard

Do a Google search using the keywords balanced scorecard images and you will see more than 100 currently used balanced scorecards. Note the wide variation in format evidenced through the images. Developed in the early 1990s by Harvard Business School professors Robert Kaplan and David Norton, and refined continually through today, the Balanced Scorecard

Published Sources of Strategy-Evaluation Information

Sydney Finkelstein, professor of management at the Tuck School of Business at Dartmouth, annually releases his list of the worst CEos each year.11 For the year 2014, Finkelstein reported that among the worst CEos were Dick Costolo, CEo of twitter; Eddie Lampert, CEo of Sears Holdings; Phillip Clarke, CEo of Tesco, a British supermarket

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Characteristics of an Effective Strategy Evaluation System

The strategy-evaluation process must exhibit several characteristics to be effective. First, strat­egy-evaluation activities must be economical; too much information can be just as bad as too little information, and too many controls can do more harm than good. Strategy-evaluation activ­ities also should be meaningful; they should specifically relate to a firm’s objectives. They should

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Contingency Planning

A basic premise of good strategic management is that firms strive to be proactive, planning ways to deal with unfavorable and favorable events before they occur. Too many organizations prepare contingency plans just for unfavorable events; this is a mistake, because both minimizing threats and capitalizing on opportunities can improve a firm’s competitive position.

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Auditing

A frequently used tool in strategy evaluation is the audit. Auditing is defined by the American Accounting Association (AAA) as “a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of cor­respondence between these assertions and established criteria, and communicating the results to interested

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Twenty-First-Century Challenges in Strategic Management

Three particular challenges or decisions that face all strategists today are (1) deciding whether the process should be more an art or a science, (2) deciding whether strategies should be visible or hidden from stakeholders, and (3) deciding whether the process should be more top-down or bottom-up in their firm.15 1. The Art or

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Guidelines for Effective Strategic Management

Failing to follow certain guidelines in conducting strategic management can foster criticisms of the process and create problems for the organization. Issues such as “Is strategic manage­ment in our firm a people process or a paper process?” should be addressed. Some organizations spend an inordinate amount of time developing a strategic plan, but then

MINI-CASE ON TJX COMPANIES, INC. (TJX) IS SECRET STRATEGIC PLANNING BEST FOR TJX?

Headquartered in Framingham, Massachusetts, TJX Companies is a discount apparel and home fash­ions retailer in the United States and abroad. The company owns T. J. Maxx, Marmaxx, Home Goods, TJX Canada, TJX Europe, and Sierra Trading Post. it operates about 1,100 T. J. Maxx stores, 950 Marshalls, 450 Home Goods, and 4 Sierra Trading

Why “Good Ethics Is Good Business”

The Institute of Business Ethics (IBE) recently did a study titled “Does Business Ethics Pay?” and concluded that companies displaying a “clear commitment to ethical conduct” consistently outperform companies that do not display ethical conduct. Philippa Foster Black of the IBE stated, “Not only is ethical behavior in business life the right thing to

Whistle-Blowing, Bribery, and Workplace Romance

As social media and technology have become commonplace globally, three business ethics topics—whistle-blowing, bribery, and workplace romance—have become important strategic issues facing companies. Missteps in any of these three areas can severely harm an organization. 1. Whistle-Blowing Whistle-blowing refers to employees reporting any unethical violations they discover or see in the firm. Employees should

Social Responsibility and Policy

Some strategists agree with Ralph Nader, who proclaims that organizations have tremendous social obligations. Nader points out, for example, that ExxonMobil has more assets than most countries, and because of this, such firms have an obligation to help society cure its many ills. Other people, however, agree with the economist Milton Friedman, who asserts

Environmental Sustainability

The ecological challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources and control pollution. Special natural environment issues include ozone depletion, global warming, depletion of rain forests, destruction of animal habitats, protecting endangered species, developing biodegradable products and packages, waste management, clean air, clean water, erosion, destruction of

Wildlife Welfare

Consumers globally are becoming increasingly intolerant of any business or nation that directly or indirectly destroys wildlife, especially endangered wildlife, such as tigers, elephants, whales, songbirds, and coral reefs. Affected businesses range from retailers that sell ivory chess pieces to restaurants that sell whale meat. The United States recently crushed over 6 tons of

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MINI-CASE ON AVON PRODUCTS, INC. (AVP) WOULD CLAIMS OF ETHICAL WRONGDOING BY A COMPANY IMPACT YOUR BUYING THE FIRM’S PRODUCTS?

Headquartered in New York City, Avon Products is the world’s largest direct-seller firm, and by far the largest direct seller of cosmetics and beauty-related items. Avon is the fifth-largest cosmetics and fra­grance firm in the world. The company receives sales from catalogs and online, but the vast majority of its sales come from about

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The Nature of Doing Business Globally

Exports of goods and services from the United States account for only 13.5 percent of U.S. gross domestic product, so the nation is still largely a domestic, continental economy. What happens inside the United States largely determines the strength of the economic recovery. In contrast, as a percent of gross domestic product (GDP), exports

Advantages and Disadvantages of Doing Business Globally

Firms have numerous reasons for formulating and implementing strategies that initiate, con­tinue, or expand involvement in business operations across national borders. Perhaps the greatest advantage is that firms can gain new customers for their products and services, thus increasing revenues. Growth in revenues and profits is a common organizational objective and often an expectation

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The Global Challenge

Few companies can afford to ignore the presence of international competition. Firms that seem insulated and comfortable today may be vulnerable tomorrow; for example, foreign banks do not yet compete or operate in most of the United States, but this too is changing. Thomson Reuters annually compiles a list of the world’s most innovative

Tax Rates and Tax Inversions

1. Tax Rates Tax rates in countries are important in strategic decisions regarding where to build manufactur­ing facilities or retail stores or even where to acquire other firms. High corporate tax rates deter investment in new factories and also provide strong incentives for corporations to avoid and evade taxes. Corporate tax rates vary considerably

American Versus Foreign Business Culture

To be successful in world markets, U.S. managers must obtain a better knowledge of historical, cul­tural, and religious forces that motivate and drive people in other countries. For multinational firms, knowledge of business culture variation across countries can be essential for gaining and sustaining competitive advantage. An excellent website to visit on this topic

Business Culture across Countries

Managers, marketers, salespersons, and virtually all businesspersons can be more effective in doing business with persons and companies in other countries if they have an understanding and appreciation of business culture variation across countries. Thus, let’s focus here on a few coun­tries to compare and contrast their business cultures with the U.S. business culture.