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Assignment 1 (Case Study)  ARMOUR TRUERENT, LLP. CASE SYNOPSIS  The case of Armour TrueRent, LLP. illustrates how a smaller firm can achieve market power and survive through horizontal integration. Growth, however is only the beginning of a successful strategic process. It does not ensure long-term success, as there are numerous strategic challenges for this and other firms in similar circumstances. The firm has reached a size that could attract the attention of larger competitors. This new level of competition would increase the hostility and complexity of the external environment. Due to the new larger size, the firm will also encounter internal problems in such areas as management and logistics. Armour TrueRent, LLP. THE COMPANY  Armour TrueRent, LLP. is a small and relatively new firm. It initially was located in the Central U.S., and was incorporated over ten years ago with more than one hundred retail rental stores. These stores appealed to the desire of consumers lacking cash or credit to rent products for a short time period. The firm struggled along, fighting problems that come from small size and inadequate cash flow. Being small meant paying high interest rates for a line of credit, and lacking clout when buying additional supplies and equipment for its stores. After nine years of slow growth, Armour TrueRent, LLP. decided to change strategies. The time appeared to be ripe for faster horizontal growth. Armour TrueRent, LLP. using financing from a friendly bank, bought out a similar-sized competitor located in its competitive area for $ 20 million in cash. In addition, it purchased 51 percent of the stock of a larger rental firm in the North-Central U.S. for $ 18 million. These actions meant that in one year it had more than tripled in size and in the market it served. It then organized itself geographically, with three layers of management below the president. Store managers reported to 55 regional managers, who in turn reported to 11 regional vice-presidents. Compensation for both regional and store managers was tied to store performance. Corporate headquarters has centralized purchasing, financial planning, personnel, training, individual store evaluations and site selection. THE INTERNAL ENVIRONMENT  STRENGTHS  The firm has an excellent MIS system that each unit of merchandise and each rental agreement. The computer at each store is connected to the main computer at corporate headquarters. Each day’s activity is compiled for stores by region. Management has access to daily, weekly and monthly data in order to make precise decisions about personnel, about merchandise, about stores, and about regions. Since all merchandise goes directly from vendors to stores, no warehouse or storage costs are incurred. Various vendors are used to help keep merchandise prices competitive. Growth rates in revenues per store have been increasing at 18 percent a year.  WEAKNESSES The biggest weakness facing Armour TrueRent, LLP. is the inefficiencies associated with absorbing the two chains it purchased. Regional managers and store managers must learn new methods and new information-gathering guidelines. Organizational cultures are slow to change.  THE EXTERNAL ENVIRONMENT OPPORTUNITIES  The rent-to-own industry has been consolidating for several years. The biggest problem facing the independent store or the small chain is a lack of adequate financing. Armour TrueRent, LLP. was fortunate that it found a bank to provide the cash needed for expansion. Current and future trends indicate that industry consolidation will continue. Armour TrueRent, LLP. should aggressively continue to seek acquisitions or merger partners to avoid being left out of the industry changes. If smaller firms will be squeezed out of the industry, Armour TrueRent, LLP. must pursue growth to insure survival. Current social trends appear to be growing. The U.S. continues to be an itinerant society. People move more, so they need to own less. People want to do more, but lack storage for ownership of things. Many people lack both cash and credit, so the purchase of furniture and appliances is difficult. Rentals and rent-to-own activities will continue to be a growth industry. Armour TrueRent, LLP. must take advantage of this trend to enhance per store sales and increase cash flow for repayment of bank loans.  THREATS The rent-to-own industry is highly competitive. In 1994, the ten largest firms accounted for 37 percent of the total industry sales. The rental industry must also compete with discount and department stores for customers. Another serious threat is the growth of the credit industry. Credit cards are available to almost anyone, giving people more choices when considering a major purchase. Rent-to-own stores may lose potential customers to big discount and department stores that offer easy credit or access to their credit cards. The rent-to-own industry is heavily regulated and further legislation at the national level is being considered. Restrictions on interest rates and fees, on contract language and disclosure, and on lending in general would increase costs and further limit the profit potential of the industry. Other near term costs that are expected to increase are shipping rates, taxes, fuel/energy, and paper costs. Investors will shy away from an industry where profits are falling and firms are consolidating. QUESTIONS Q1. What different strategies are available to this firm Armour TrueRent, LLP.? (Hint: More horizontal growth, Increase store sizes/activities etc. etc.) Give at least three other strategies. (2 Marks) Q2. What are the problems and benefits associated with each strategy? (2 Marks) Q3. What would be the best choice of action? Why? (1Mark) Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University المملكة العربية السعودية وزارة التعليم الجامعة السعودية الإلكترونية College of Administrative and Financial Sciences Assignment 1 MGT101 (1st Term 2021-2022) Deadline: 23/10/2021 @ 23:59 (To be posted/released to students on BB anytime in Week 4) Course Name: Principles of Management Student’s Name: Course Code: MGT101 Student’s ID Number: Semester: 1st CRN: Academic Year: 1442/1443 H, 1st Term For Instructor’s Use only Instructor’s Name: Students’ Grade: /5 Level of Marks: High/Middle/Low Instructions – PLEASE READ THEM CAREFULLY · This assignment is an individual assignment. · Due date for Assignment 1 is by the end of Week 7 (23/10/2021) · The Assignment must be submitted only in WORD format via allocated folder. · Assignments submitted through email will not be accepted. · Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. · Students must mention question number clearly in their answer. · Late submission will NOT be accepted. · Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. · All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be accepted. Assignment Purposes/Learning Outcomes: After completion of Assignment-1 students will able to understand the LO 1.1 State the concept of management functions, roles, skills of a manager and the different theories of management. LO 2.2: Employ knowledge and techniques of strategic planning, problem solving, decision making and change management. Assignment 1 (Case Study) ARMOUR TRUERENT, LLP. CASE SYNOPSIS The case of Armour TrueRent, LLP. illustrates how a smaller firm can achieve market power and survive through horizontal integration. Growth, however is only the beginning of a successful strategic process. It does not ensure long-term success, as there are numerous strategic challenges for this and other firms in similar circumstances. The firm has reached a size that could attract the attention of larger competitors. This new level of competition would increase the hostility and complexity of the external environment. Due to the new larger size, the firm will also encounter internal problems in such areas as management and logistics. Armour TrueRent, LLP. THE COMPANY Armour TrueRent, LLP. is a small and relatively new firm. It initially was located in the Central U.S., and was incorporated over ten years ago with more than one hundred retail rental stores. These stores appealed to the desire of consumers lacking cash or credit to rent products for a short time period. The firm struggled along, fighting problems that come from small size and inadequate cash flow. Being small meant paying high interest rates for a line of credit, and lacking clout when buying additional supplies and equipment for its stores. After nine years of slow growth, Armour TrueRent, LLP. decided to change strategies. The time appeared to be ripe for faster horizontal growth. Armour TrueRent, LLP. using financing from a friendly bank, bought out a similar-sized competitor located in its competitive area for $ 20 million in cash. In addition, it purchased 51 percent of the stock of a larger rental firm in the North-Central U.S. for $ 18 million. These actions meant that in one year it had more than tripled in size and in the market it served. It then organized itself geographically, with three layers of management below the president. Store managers reported to 55 regional managers, who in turn reported to 11 regional vice-presidents. Compensation for both regional and store managers was tied to store performance. Corporate headquarters has centralized purchasing, financial planning, personnel, training, individual store evaluations and site selection. THE INTERNAL ENVIRONMENT STRENGTHS The firm has an excellent MIS system that each unit of merchandise and each rental agreement. The computer at each store is connected to the main computer at corporate headquarters. Each day’s activity is compiled for stores by region. Management has access to daily, weekly and monthly data in order to make precise decisions about personnel, about merchandise, about stores, and about regions. Since all merchandise goes directly from vendors to stores, no warehouse or storage costs are incurred. Various vendors are used to help keep merchandise prices competitive. Growth rates in revenues per store have been increasing at 18 percent a year. WEAKNESSES The biggest weakness facing Armour TrueRent, LLP. is the inefficiencies associated with absorbing the two chains it purchased. Regional managers and store managers must learn new methods and new information-gathering guidelines. Organizational cultures are slow to change. THE EXTERNAL ENVIRONMENT OPPORTUNITIES The rent-to-own industry has been consolidating for several years. The biggest problem facing the independent store or the small chain is a lack of adequate financing. Armour TrueRent, LLP. was fortunate that it found a bank to provide the cash needed for expansion. Current and future trends indicate that industry consolidation will continue. Armour TrueRent, LLP. should aggressively continue to seek acquisitions or merger partners to avoid being left out of the industry changes. If smaller firms will be squeezed out of the industry, Armour TrueRent, LLP. must pursue growth to insure survival. Current social trends appear to be growing. The U.S. continues to be an itinerant society. People move more, so they need to own less. People want to do more, but lack storage for ownership of things. Many people lack both cash and credit, so the purchase of furniture and appliances is difficult. Rentals and rent-to-own activities will continue to be a growth industry. Armour TrueRent, LLP. must take advantage of this trend to enhance per store sales and increase cash flow for repayment of bank loans. THREATS The rent-to-own industry is highly competitive. In 1994, the ten largest firms accounted for 37 percent of the total industry sales. The rental industry must also compete with discount and department stores for customers. Another serious threat is the growth of the credit industry. Credit cards are available to almost anyone, giving people more choices when considering a major purchase. Rent-to-own stores may lose potential customers to big discount and department stores that offer easy credit or access to their credit cards. The rent-to-own industry is heavily regulated and further legislation at the national level is being considered. Restrictions on interest rates and fees, on contract language and disclosure, and on lending in general would increase costs and further limit the profit potential of the industry. Other near term costs that are expected to increase are shipping rates, taxes, fuel/energy, and paper costs. Investors will shy away from an industry where profits are falling and firms are consolidating. QUESTIONS Q1. What different strategies are available to this firm Armour TrueRent, LLP.? (Hint: More horizontal growth, Increase store sizes/activities etc. etc.) Give at least three other strategies. (2 Marks) Q2. What are the problems and benefits associated with each strategy? (2 Marks) Q3. What would be the best choice of action? Why? (1Mark) ANGELO KINICKI BRIAN K. WILLIAMS management9e A Practical Introduction management N I N T H E D I T I O N Angelo Kinicki Arizona State University Kent State University Brian K. Williams MANAGEMENT: NINTH EDITION Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2020 by McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous editions © 2018, 2016, and 2013. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 LWI 21 20 19 ISBN 978-1-260-07511-3 MHID 1-260-07511-7 Editorial Director: Michael Ablassmeir Product Developer: Anne Ehrenworth Executive Marketing Manager: Debbie Clare Content Project Managers: Harvey Yep (Core)/Keri Johnson (Assessment) Buyer: Susan K. Culbertson Design: Jessica Cuevas Content Licensing Specialists: Carrie Burger Cover Image: ©Olivier Renck/Aurora/Getty Images Compositor: Aptara®, Inc. All credits appearing on page or at the end of the book are considered to be an extension of the copyright page. Library of Congress Cataloging-in-Publication Data Names: Kinicki, Angelo, author. | Williams, Brian K., 1938- author. Title: Management : a practical introduction / Angelo Kinicki, Arizona State  University, Brian K. Williams. Description: Ninth edition. | New York, NY : McGraw-Hill Education, [2020] Identifiers: LCCN 2018047636| ISBN 9781260075113 (alk. paper) | ISBN  1260075117 (alk. paper) Subjects: LCSH: Management. Classification: LCC HD31 .K474 2020 | DDC 658—dc23 LC record available at https://lccn.loc.gov/2018047636 The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee the accuracy of the information presented at these sites. mheducation.com/highered iii Walkthrough Preface of 9e xv PA R T 1 Introduction 1 The Exceptional Manager: What You Do, How You Do It 2 2 Management Theory: Essential Background for the Successful Manager 42 PA R T 2 The Environment of Management 3 The Manager’s Changing Work Environment and Ethical Responsibilities: Doing the Right Thing 76 4 Global Management: Managing across Borders 116 PA R T 3 Planning 5 Planning: The Foundation of Successful Management 156 6 Strategic Management: How Exceptional Managers Realize a Grand Design 188 Learning Module 1: Entrepreneurship 220 7 Individual and Group Decision Making: How Managers Make Things Happen 238 PA R T 4 Organizing 8 Organizational Culture, Structure, and Design: Building Blocks of the Organization 280 9 Human Resource Management: Getting the Right People for Managerial Success 322 10 Organizational Change and Innovation: Lifelong Challenges for the Exceptional Manager 374 PA R T 5 Leading 11 Managing Individual Differences and Behavior: Supervising People as People 408 12 Motivating Employees: Achieving Superior Performance in the Workplace 456 13 Groups and Teams: Increasing Cooperation, Reducing Conflict 502 14 Power, Influence, and Leadership: From Becoming a Manager to Becoming a Leader 534 15 Interpersonal and Organizational Communication: Mastering the Exchange of Information 580 PA R T 6 Controlling 16 Control Systems and Quality Management: Techniques for Enhancing Organizational Effectiveness 630 Learning Module 2: The Project Planner’s Toolkit: Flowcharts, Gantt Charts, and Break-Even Analysis 681 brief contents Chapter Notes CN-1 Name Index IND-1 Organization Index IND-5 Glossary/Subject Index IND-11 iv dedication To Joyce Kinicki, the love of my life, best friend, and the wind beneath my wings. —Angelo about the author Angelo Kinicki is an emeritus professor of management and held the Weatherup/Overby Chair in Leadership from 2005 to 2015 at the W.P. Carey School of Business at Arizona State University. He joined the faculty in 1982, the year he received his doctorate in business administration from Kent State University. He was inducted into the W.P. Carey Faculty Hall of Fame in 2016. Angelo currently is the Deans Scholar in Residence at Kent State University. He is teaching in the MBA program and serves on the Deans National Advisory Board. Angelo is the recipient of six teaching awards from Arizona State University, where he taught in its nationally ranked MBA and PhD programs. He also received several research awards and was selected to serve on the editorial review boards for four scholarly journals. His current research interests focus on the dynamic relationships among leadership; organizational culture; organizational change; and individual, group, and organizational performance. Angelo has published over 95 articles in a variety of academic journals and proceedings and is co-author of eight textbooks (32 including revisions) that are used by hundreds of universities around the world. Several of his books have been translated into multiple languages, and two of his books were awarded revisions of the year by McGraw-Hill. Angelo was identified as being among the top 100 most influential (top .6\%) Organizational Behavioral authors in 2018 out of a total of 16,289 academics. Angelo is a busy international consultant and is a principal at Kinicki and Associates, Inc., a management consulting firm that works with top management teams to create organizational change aimed at increasing organizational effectiveness and profitability. He has worked with many Fortune 500 firms as well as numerous entrepreneurial organizations in diverse industries. His expertise includes facilitating strategic/operational planning sessions, diagnosing the causes of organizational and work-unit problems, conducting organizational culture interventions, implementing performance management systems, designing and implementing performance appraisal systems, developing and administering surveys to assess employee attitudes, and leading management/executive education programs. He developed a 360° leadership feedback instrument called the Performance Management Leadership Survey (PMLS) that is used by companies throughout the world. Angelo and his wife of 37 years, Joyce, have enjoyed living in the beautiful Arizona desert for 36 years. They are both natives of Cleveland, Ohio. They enjoy traveling, hiking, and spending time in the White Mountains with Gracie, their adorable golden retriever. Angelo also has a passion for golfing. Courtesy of Angelo Kinicki v new to the ninth edition We are pleased to share these exciting updates and new additions! Two major changes were implemented in the ninth edition. The first involved a new strategic career readiness theme throughout the product to address employers’ concerns about students graduating without being career ready. The second was to extend our emphasis on the practical application of management. Below is a review of these substantive changes. Career Readiness Theme Promotes Employable Skills Global surveys of CEOs and recruiters reveal that college graduates do not possess the knowl- edge, skills, and attributes desired by employers, resulting in a lack of career readiness. We want to promote the development of your students’ career readiness competencies so that they are more employable. Therefore, we’ve introduced a new strategic theme of career readiness to cre- ate a link between the principles of management and the objective of providing students with the tools they need to flourish on their chosen employment path. This integration takes five forms: • The career readiness theme is thoroughly introduced in Chapter 1. We introduce a major section, 1.7, entitled “Building Your Career Readiness,” and present a model of career readiness along with a table of competencies desired by employers. • Over 40 of the product’s 66 Self-Assessments pertain directly to a career readiness competency. Feedback from these self-assessment can be used to assist students in creating a development plan focused on being career ready. • Each chapter concludes with a new section entitled “Career Corner: Managing Your Career Readiness.” This section serves two purposes. First, it assists students in linking chapter content with the competencies of career readiness, which provides a powerful association between the principles of management and the skills desired by employers. Second, this material provides students with practical tips for developing targeted career readiness competencies. We believe students can become more career ready by following the advice in these Career Corner sections. • We developed a targeted set of exercises in Connect, our online teaching and learning platform, that give students hands-on experience working with the career readiness competencies desired by employers. • We created a set of experiential exercises for each chapter in our unique Teaching Resource Manual that are targeted to develop students’ career readiness competencies. Extending the Practical Application of Management Concepts Practical application has always been a major feature of this product. We want students to understand how to use what they are learning in both their personal and professional lives. We extend our emphasis on practicality by: • Every chapter begins with a new feature entitled “Manage U.” It replaces the Manager’s Toolbox and provides students with actionable tips for applying the material in each chapter. • Each chapter includes two new boxes that provide testimonials from millennials about their experiences with effective and ineffective management. “I wish I . . .” boxes illustrate real-world examples in which students recall an instance when they or their boss could have better applied certain management concepts. “I’m glad I . . .” boxes discuss positive applications of management concepts. • To promote mastery of management concepts, we developed a continuing case on Uber for each chapter. Application learning can be assessed in Connect. • To promote critical thinking and problem solving, a key career readiness competency, we revamped our Management in Action Cases. They now focus on higher levels of vi learning by asking students to solve real organizational problems using relevant management concepts. Fully revised Teaching Resource Manual (TRM) provides complete guidance for instructors The TRM was new to the eighth edition and was developed to provide instructors with a turnkey solution to fostering a discussion-based and experiential learning experience. It amounts to a traditional instructor’s manual on steroids by providing suggestions for creatively teaching topics, suggested videos outside of the McGraw Hill arsenal (e.g., YouTube, The Wall Street Journal, etc.), group exercises, lecture enhancers, and supplemental exercises that correspond with cases and Self-Assessments. The TRM has been praised by instructors around the world for its depth, navigation, and experiential-based content. We improved this resource based on feedback from faculty. Our first change acknowledges that many of us teach online or in larger, in-person classes (sometimes both!). The ninth edition TRM not only includes revised activities for the traditional classroom, but also includes new online and large, in-person class activities for every chapter. The next set of changes involve providing follow-up activities for the new career readiness–based exercises in Connect because we believe students need these developmental activities to increase their career readiness. We also provide in-depth teaching notes for new Manager’s Hot Seat videos and Application-Based Activities in the form of simulations. Finally, we provide new web video links for each chapter. These free, short videos allow instructors to illustrate the practical applications of management principles. We also include new current online article links instructors can use to discuss material that supplements the text. CH APTER 1 • New Manage U feature: Using Management Skills for College Success. • Section 1.1—New Example box on efficiency versus effectiveness discusses how Delta Airlines handled an emergency at Atlanta’s Hartsfield-Jackson Airport. Updated CEO pay and labor statistics. New example of museum curator in discussion of rewards of management. • Section 1.2—New boxed feature “I wish my manager was more of a leader than a manager.” • Section 1.3—This section was moved to section 1.7 and section 1.4 was moved here. Introduces new key term “nonmanagerial employees.” Updated salary information for first-line managers. New examples for “for-profit” and “nonprofit” organizations. New data in “Managers for Three Types of Organizations.” • Section 1.4—Section 1.6 became section 1.4, “Roles Managers Must Play Successfully.” New example of Mary Bara, CEO of GM, to illustrate managerial work activities. New Practical Action box on mindfulness. New example of Google CEO Sundar Pichai in discussion of informational roles. viiNew to the ninth edition ” The TRM is top of the line. —Todd Korol, Monroe Community College The TRM is by far the most comprehensive and useful on the market. It is very user friendly for both faculty and students. —Gerald Schoenfeld, Florida Gulf Coast University “ “ ” Completely revamped, revised, and updated chapters In each chapter, we refreshed examples, research, figures, tables, statistics, and photos, as well as modified the design to accommodate new changes to this ninth edition. We have also largely replaced topics in such popular features as Example boxes, Practical Action boxes, Management in Action cases, and Legal/Ethical Challenges cases. While the following list does not encompass all the updates and revisions, it does high- light some of the more notable changes. • Section 1.5—New running example of Mary Bara used to explain the skills needed to manage. New boxed interview feature “I’m glad I have conceptual skills.” New Practical Action box on developing soft skills. • Section 1.6—Updated Example box about Airbnb. Introduces new key terms “information technology application skills” and “meaningfulness.” New discussion of the Fourth Industrial Revolution. Updated statistics regarding workforce diversity. New discussion of Volkswagen and ethical standards. Updated Practical Action box on cheating. New reference to sexual harassment in discussion of ethical standards. New suggestions for building meaning into your life. • Section 1.7—Entire new section on building career readiness. Introduces new key terms “attitude,” “career readiness,” “proactive learning orientation,” and “resilience.” Includes Figure 1.3 regarding gaps in college graduates and employers’ assessment of students’ career readiness; Table 1.2 description of KSAOs needed for career readiness; Figure 1.4, Model of Career Readiness; and discussion of developing career readiness. New Self-Assessment 1.2, To What Extent Do You Accept Responsibility for Your Actions? • Section 1.8—New section titled “Career Corner: Managing Your Career Readiness.” Includes Figure 1.5, Process for Managing Career Readiness, and review of its application. • New Management in Action case: Did Major League Baseball Value Money over Bob Bowman’s Behavior? • New continuing case on Uber. CHAPTER 2 • New Manage U feature: What Type of Work Do I Prefer? • Section 2.1—New Example box explores the successes and failures of Zappos’ management experiment called “holacracy.” • Section 2.2—New coverage of Charles Clinton Spaulding’s role in administrative management. • Section 2.3—New Example boxes including the new boxed feature “I’m glad I work in an organization with a Theory Y culture” and an update to the Example box studying open-plan offices as an application of the behavioral science approach. • Section 2.4—New Example box discussing operations management at Intel. • Section 2.5—New Example box applying systems thinking. • Section 2.6—New Example box applying the contingency viewpoint with manufacturers “pitching” jobs to parents of college students hoping they’ll influence their children to consider open positions after high school graduation. A new Practical Action box exploring Big Data. • Section 2.7—New boxed feature “I wish my manager believed in a quality-management viewpoint,” as well as expanded content to include a deeper discussion of Six Sigma and ISO 9000, including definitions of both as well as practical examples of companies using each approach. • Section 2.8—Expanded and updated in-content examples to showcase the three parts of a learning organization as well as expanded content examples on the three roles managers play in building learning organizations. Updated company examples for learning organizations, including a discussion of Google Buzz, American Express, and Apple. • New Career Corner feature on Managing Your Career Readiness. • New Management in Action case: The Decline of Sears. • New continuing case on Uber. CHAPTER 3 • New Manage U feature: Increase Ethical Behavior by Fostering an Ethical Climate. • Section 3.1—Updated content regarding Millennials and their search for meaning. • Section 3.2—Updated content and company applications for internal stakeholders at SAS and the board of directors at Facebook. • Section 3.3—New Example box discussing United Airlines and its responsibilities to its stakeholders versus customers. New boxed feature “I wish I kept a closer eye on trends affecting our suppliers.” Updated statistics regarding unions. New Example box discussing Amazon’s new headquarters and whether it will benefit the city chosen. New boxed feature “I’m glad I kept current on my industry’s general environment.” Updated Example discussing the Internet of Things. Introduces new key term “LGBTQ.” New figure showcasing the states in which marijuana is legal. Various content updates, including company examples for the task environment (including an updated list of “America’s Most Hated Companies”) and special interest groups with a discussion of the #MeToo movement and international forces such as Brexit. Updated examples for sociocultural forces to include seismic changes. Updated statistics for demographic forces of change. • Section 3.4—New Example box featuring Volkswagen and ethics. Introduces new key term “abusive supervision.” Updated statistics on workplace cheating. New Example box discussing “whistleblowing” photographer Simon Edelman’s photos of the Trump administration and the fallout. Updated content examples for recent Sarbox cases and the most common ethics violations at work. • Section 3.5—New content example of Tom’s Shoes as a company showcasing social responsibility. New example of the benefits to Coca-Cola for going green and new table showing how being ethical and socially responsible pays off. • Section 3.6—New Example box discussing HD Supply Holdings and Fox News and the good and bad of corporate governance. • New Career Corner feature on Managing Your Career Readiness. • New Management in Action case: Who’s to Blame for College Basketball’s Dark Underbelly? viii New to the ninth edition • Updated Legal/Ethical Challenge: Should You Apply to Have Your Student Loans Forgiven? • New continuing case on Uber. CHAPTER 4 • New Manage U feature: Working Successfully Abroad: Developing Cultural Awareness. • Section 4.1—Updated section opener with new statistics regarding United States imports in 2016. Updated Table 4.1 and corresponding content with competitiveness rankings for 2016–2017. New Example box featuring international e-commerce company Alibaba. Updated content on the positive and negative effects of globalization. New content examples featuring recent megamergers including CVS/ Dignity Health, Amazon/Wholefoods. • Section 4.2—New Example box discussing how to get an edge in the global job market. Introduces new key term “cross- cultural awareness.” The career readiness competency of cross-cultural awareness is defined and leads into the corresponding Practical Action box. Features an updated discussion of U.S. brands that are foreign owned. New boxed feature “I wish I considered the impact of ethnocentrism.” • Section 4.3—Updated discussion on the foreign manufacturing of Apple products. An updated discussion of why companies expand internationally, including Netflix, Amazon, and Ford Motor Company and expanded discussion of foreign subsidiaries. Updated examples for how companies expand internationally, including Under Armour. Updated examples of global outsourced jobs, including an updated Table 4.2 with top exporting countries through 2016. Updated list of U.S. companies opening franchises overseas, including Chick-fil-A and Cold Stone. • Section 4.4—Updated Table 4.3 with the U.S.’s top ten trading partners. Updated content regarding tariffs with a discussion of the Trump administration as well as updated content pertaining to import quotas, dumping, and embargoes and sanctions. New table featuring organizations promoting international trade. Updated discussion on NAFTA, the EU, and other trading blocs complete with a new Example box discussing Brexit’s impact on Britain and the EU. Updated Example box to showcase the exchange rates on various common products like rent, Starbucks, and designer jeans. Updated statistics for major economies, including China, India and Brazil. • Section 4.5—Changed the section title to “The Value of Understanding International Differences” and expanded the opening with a discussion on international differences. An updated discussion on language and personal space with a discussion on learning foreign language online and through apps and a new Example box discussing the differences in personal space in various countries. Updated content on differences in communication. New Practical Action box discussing how to run an international meeting. New Figure 4.2 discussing current followers of world religions. Current examples of expropriation, corruption, and labor abuses. An updated discussion on expatriates and why U.S. managers often fail. New boxed feature “I’m glad I understood the GLOBE Project’s cultural dimensions.” • New Career Corner feature: Managing Your Career Readiness: Working Overseas. New key term “context.” • New Management in Action case: The Growth and Stall of Didi Chuxing. • New Legal/Ethical Challenge: Should Qatar Be Hosting the 2022 World Cup? • New continuing case on Uber. CHAPTER 5 • New Manage U feature: Making an Effective Plan for Starting Your Career. • Section 5.1—New Example box on how to write a business plan. The previous discussion of VRIO was moved from this section to Chapter 6. New research on the benefits of planning. • Section 5.2—Opens with a new Table 5.1 discussing and summarizing mission, vision, and values statements. New example box on Coca-Cola includes the company’s mission, vision, and values statements. A new Example box discusses Coca-Cola’s six long-term strategies. New boxed feature “I wish my manager put more effort into operational planning.” • Section 5.3—New boxed feature “I’m glad I developed an action plan.” Updated Example box pertaining to long and short-term goals at Southwest Airlines. • Section 5.4—New Example box on setting clear goals at Snapchat. Included new research on goal setting programs. Revised the three types of goals used in MBO: performance- based, behavioral-based, and learning-based. New Self- Assessment determining whether students have a proactive learning orientation. Added Tornier as an example of an Action Plan. New Practical Action box for small businesses and goal setting. • Section 5.5—New Example box applying the planning/control cycle through Tesla’s Model 3. • New Career Corner feature: Managing Your Career Readiness. • New Management in Action case: Fender Rebrands to Stay in Tune with the Times. • New Legal/Ethical Challenge: Is Pfizer Putting Profits above Alzheimer’s Patients? • New continuing case on Uber. New Learning Module: Entrepreneurship • New Manage U feature: So You Want to Start a Business? • Section LM 1.1—Introduces entrepreneurship and its foundation, including a discussion of Elon Musk. Introduces ixNew to the ninth edition the concept of intrapreneurship, leading to a new Example box discussing Intel’s Genevieve Bell. Discusses how entrepreneurship is different from self-employment. A new figure LM 1.1 lists the characteristics of entrepreneurs. New Self-Assessment to determine if students have an “entrepreneurial spirit.” A discussion of entrepreneurship across the globe. New Table LM 1.1 with facts about small business. • Section LM 1.2—Begins by discussing how entrepreneurs come up with ideas to start a business. Discusses how to write a business plan. Reviews the options for creating a legal structure for a business and how to obtain financing. The importance of creating the right organizational culture and design is explored. New Example box featuring the start and growth of a small business. CHAPTER 6 • New Manage U feature: Building Your Personal Brand. • Section 6.1—New coverage regarding levels of strategy. New Figure 6.1 shows three levels of strategy. Introduces the new key term “functional level strategy.” Updated research on strategic planning at small and large firms. New Example box illustrates strategic planning at Evernote and Groove HQ. • Section 6.2—The five steps of the strategic management process were changed to reflect current thinking. New boxed feature “I wish my company would have evaluated its current reality before opening the doors for business.” New Self- Assessment on strategic thinking. • Section 6.3—Begins with new key term “sustainable competitive advantage.” Updated Example box of SWOT analysis for Toyota; VRIO discussion from Chapter 5 now featured in this section with updated content and a new Figure 6.3. New Example box on developing competitive advantage in the Internet economy. Updated Example box with contingency planning in the wake of Hurricane Harvey with a discussion on CVS, Walgreens, and Fed Ex. • Section 6.4—Renamed “Establishing Corporate Level Strategy.” Section now opens with Three Overall Types of Corporate Strategy and includes a new table showcasing how a company can implement overall corporate level strategies. New discussion of the BCG Matrix and different diversification strategies. Introduces new key term “unrelated diversification.” Discussion on Porter’s five competitive forces and four competitive strategies moved to Section 6.5. • Section 6.5—Renamed “Establishing Business Level Strategy.” The discussion on Porter’s competitive forces and strategies moved to this section. New examples used to illustrate these concepts. • Section 6.6—Renamed “Executing and Controlling Strategy.” New boxed feature “I’m glad my company adjusts its strategy as we go.” • New Career Corner feature: Managing Your Career Readiness. • New Management in Action case: General Electric’s Evolving Strategy. • New Legal/Ethical Challenge: Is Your School Selling Your Bank Accounts? • New continuing case on Uber. CHAPTER 7 • New Manage U feature: How to Make Good Decisions. • Section 7.1—Updated …