Question 1:

The purpose of this exercise is to get you familiar with strategy terms introduced and defined in this chapter. Let's apply these terms to PepsiCo, Inc. (stock symbol = PEP).

Instructions

Step 1 Go to www.pepsico.com (PepsiCo's website). Along the top of the site, click on Relatiom. Then click on 2012 Annual Report and print that document. The Form 10K Or Annual Report document contains excellent information for developing a list of PepsiCo's internal strengths and weaknesses.

Step 2 Go to your college library and make a copy of Standard & Poor's Industry Surveys for the snacks/beverages industry. This document will contain excellent information for developing a list of external opportunities and threats facing PEP.

Step 3 Go to the www.finance.yahoo.com website. Enter PEP. Note the wealth of information on PepsiCo that may be obtained by clicking any item along the left column. Click on Competitors down the left column. Then print out the resultant tables and information. Note that PepsiCo's major competitors are Coca-Cola Company, Kraft Foods, and Dr Pepper Snapple.

Step 4 Using the Cohesion Case, the www.finance.yahoo.com information, the Annual Report, and the Industry Survey document, on a separate sheet of paper list what you consider to be PepsiCo's ten major strengths, ten major weaknesses, ten major opportunities, and ten major threats. Each factor listed for this exercise must include a percent, number, dollar, or ratio to reveal some quantified fact or trend. These factors provide the underlying basis for a strategic plan because a firm strives to take advantage of strengths, improve weaknesses, avoid threats, and capitalize on opportunities.

Step 5 Through class discussion, compare your lists of external and internal factors to those developed by other students and add to your lists of factors. Keep this information for use in later exercises at the end of other chapters.

Step 6 Whatever case company is assigned to you this semester, update the information On your company by following the steps listed in this Exerise I B.

Question 2:

External and internal factors are the underlying bases of strategies formulated and implemented by organizations. Your college or university faces numerous external opportunities and threats and has many internal strengths and weaknesses. The purpose of this exercise is to illustrate the process of identifying critical external and internal factors.

External influences include trends in the following areas: economic, social, cultural, demo-graphic, environmental, technological, political, legal, governmental, and competitive. External factors could include declining numbers of high school graduates; population shifts; community rela¬tions; increased competitiveness among colleges and universities; rising numbers of adults returning to college; decreased support from local, state, and federal agencies; increasing numbers of foreign students attending U.S. colleges; and a rising number of Internet courses.

Internal factors of a college or university include faculty, students, staff, alumni, athletic programs, physical plant, grounds and maintenance, student housing, administration, fund-raising, academic programs, food services, parking, placement, clubs, fraternities, sororities, and public relations.

Instructions

Step 1 On a separate sheet of paper, write four headings: External Opportunities, External Threats, Internal Strengths, and Internal Weaknesses.

Step 2 As related to your college or university, list five factors under each of the four headings.

Step 3 Discuss the factors as a class. Write the factors on the board.

Step 4 What new things did you learn about your university from the class discussion? How could this type of discussion benefit an organization?

Question 3:

You may use for free all the resources provided at the author website, www.strategyclub.com, includ¬ing the downloadable Excel student template. Thousands of students have found this template to be immensely useful in preparing a strategic management case analysis.

Instructions

Step 1 Go to the www.strategyclub.com website. Review the following free resources:
1. Excel student template
2. sample case analysis PowerPoints
3. live case analysis presentations
4. chapter updates
Step 2 Prepare to give your class an overview of your impression of the website.

Question 4:

This exercise gives you an opportunity to discuss in class ethical and legal issues related to methods being, used by many companies to spy on competing firms. Gathering and using information about competitors is an area of strategic management that Japanese firms do more proficiently than C.S. firms.

Instructions

On a separate sheet of paper, number from 1 to 18. For the 18 spying activities listed as follows, indicate whether or not you believe the activity is ethical or unethical and legal or illegal. Place either an E for ethical or U for unethical, and either an L for legal or an / for illegal for each activity. Compare your answers to those of your classmates and discuss any differences.