Strategic Mgmt & Bus Policy by Thomas l. Wheelen (10th edition)

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1- 1 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 1 Basic Concepts of Strategic Management

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1- 2 Basic Concepts of Strategic Management Globalization Internationalization of markets and corporations Global (worldwide) markets rather than national markets Electronic Commerce Use of the Internet to conduct business transactions Basis for competition on a more strategic level rather than traditional focus on product features and costs

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1- 3 Basic Concepts of Strategic Management Electronic Commerce -- Trends Forcing company transformation Market access & branding changing – disintermediation of traditional distribution channels Balance of power shift to consumer Competition changing

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1- 4 Basic Concepts of Strategic Management Electronic Commerce -- Trends Pace of business increasing Internet purchasing beyond traditional boundaries Knowledge key asset – source of competitive advantage

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1- 5 Strategic Management Defined Set of managerial decisions and actions that determines the long-run performance of a firm.

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1- 6 Basic Concepts of Strategic Management 4 Phases of Strategic Management Basic financial planning Forecast-based planning Externally-oriented planning Strategic management

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1- 7 Basic Concepts of Strategic Management Highly Rated Benefits Clearer sense of strategic vision Sharper focus on strategic importance Improved understanding of changing environment

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1- 8 Basic Concepts of Strategic Management Not Always a Formal Process Where is the organization now? (not where do we hope it is) If no changes are made, where will the organization be in 1,2,5 or 10 years? What specific actions should management undertake? What are the risks and payoffs?

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1- 9 Basic Concepts of Strategic Management Basic Elements of the Strategic Management Process

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1- 10 Environmental Scanning Defined Monitoring, evaluation, and disseminating information from external and internal environments –to key people in the firm

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1- 11 Basic Concepts of Strategic Management Environmental Variables

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1- 12 Environmental Scanning SWOT Analysis Strengths – Weaknesses Opportunities - Threats

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1- 13 Strategy Formulation Development of long-range plans for effective management of opportunities and threats in light of corporate strengths and weaknesses

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1- 14 Strategy Formulation Mission Statement Purpose/reason for organization Promotes shared expectations Communicates public image Who we are; what we do; what we aspire to

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1- 15 Organizational Adaptation Organization “fit” with environment Theory of population ecology Institution theory Strategic choice perspective Organizational learning theory

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1- 16 Organizational Adaptation Strategic flexibility Demands long-term commitment to development of critical resources Demands firm become a learning organization

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1- 17 Learning Organizations An organization skilled at creating, acquiring, and transferring knowledge and at modifying its behavior to reflect new knowledge and insights

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1- 18 Learning Organizations 4 Chief Activities Systematic problem solving New approach experimentation Learning from experiences Intra-organization knowledge transfer

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1- 19 Basic Concepts of Strategic Management Hierarchy of Strategy

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1- 20 Goals & Objectives Corporate Goals/Objectives Profitability (net profit) Growth Resource utilization (ROE, ROI) Market leadership

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1- 21 Basic Concepts of Strategic Management 3 Types of Strategy Corporate strategy Business strategy Functional strategy

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1- 22 Basic Concepts of Strategic Management Corporate Strategy Stability Growth Retrenchment

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1- 23 Basic Concepts of Strategic Management Business Strategy Competitive strategies Cooperative strategies

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1- 24 Basic Concepts of Strategic Management Functional Strategy Technological leadership Technological followership

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1- 25 Basic Concepts of Strategic Management Strategic Decision-Making Process

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1- 26 Strategic Decision Making Strategic Decisions Rare Consequential Directive

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1- 27 Strategic Decision Making Mintzberg’s Modes Entrepreneurial mode Adaptive mode Planning mode Logical incrementalism

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1- 28 Hambrick and Fredrickson – Good Strategy 5 Elements of Good Strategy Arenas Vehicles Differentiators Staging Economic logic

CHAPTER 2 Corporate Governance :

1- 29 CHAPTER 2 Corporate Governance

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1- 30 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 2 Corporate Governance

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1- 31 Corporate Governance

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1- 32 Corporate Governance The relationship among the board of directors, top management, and shareholders – determining the direction and performance of the corporation

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1- 33 Corporate Governance Role of Board Monitor Evaluate and influence Initiate and determine

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1- 34 Board of Directors Continuum

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1- 35 Board of Directors Members -- Inside directors “management directors” Officers or execs employed by the firm Outside directors “non-management directors” Execs of other firms not employed by the board’s corporation

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1- 36 Agency Theory Agency Problem – Objectives of owners & agents in conflict Difficult for owners to verify agent performance Risk Sharing Problem – Owners & agents risk assessment in conflict

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1- 37 Stewardship Theory Executives more motivated to act in best interest of the corporation than their own self-interests. Theory that over time, senior executives tend to view corporation as extension of selves.

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1- 38 Board of Directors When Outsiders can be considered Insiders Affiliated Directors Retired Directors Family Directors

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1- 39 Board of Directors Codetermination The inclusion of a corporation’s employees on its board of directors

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1- 40 Board of Directors Interlocking Directorates Direct Interlocking Indirect Interlocking

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1- 41 Board of Directors Nominations & Elections Traditional Approach CEO invitation to membership Shareholders approval in annual proxy statement All nominees usually elected

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1- 42 Board of Directors Nominations & Elections Staggered Board Approach Staggered terms of service/election

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1- 43 Board of Directors Sarbanes-Oxley Code of Ethics Audit, Nominating, and Compensation Committees all outside directors

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1- 44 Board of Directors Organization of the Board Size Charter & Bylaws Determination

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1- 45 Board of Directors Corporate Governance Review & shaping of strategy Pressure for corporate performance Demand for executive stock ownership Outside directors increasing Impact of Sarbanes-Oxley

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1- 46 Board of Directors Transformational leaders Change agents through vision for change

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1- 47 Board of Directors Successful CEO’s Strategic vision Passion for the company Strong communication charisma

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1- 48 Board of Directors Executive Leadership Strategic vision Role model

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1- 49 Board of Directors Executive Leadership Communication of performance standards Demonstrates confidence in abilities of followers

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1- 50 Strategic Management Process Strategic Planning Staff Supports top management & business units in the strategic planning process

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1- 51 Strategic Management Process Strategic Planning Staff Identify & analyze company-wide strategic issues Generate strategic alternatives

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1- 52 Strategic Management Process Strategic Planning Staff Facilitate business units in coordinating activities related to strategic planning process

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1- 53 CHAPTER 3 Ethics & Social Responsibility

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1- 54 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 3 Ethics & Social Responsibility

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1- 55 Ethics & Social Responsibility

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1- 56 Corporate Governance Broader responsibility -- Private corporations have responsibility to society that extend beyond making a profit

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1- 57 Social Responsibility There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud . Milton Friedman

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1- 58 Corporate Governance Carroll’s 4 Responsibilities Economic Legal Ethical Discretionary

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1- 59 Carroll’s 4 Responsibilities

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1- 60 Corporate Stakeholders Affect or are affected by the achievement of the corporation’s objectives

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1- 61 Corporate Stakeholders Stakeholder Analysis – Primary stakeholder Sufficient bargaining power to affect outcomes Secondary stakeholder Indirect stake but are affected by corporation’s actions Stakeholder Input Determine whether input is necessary

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1- 62 Ethical Behavior “business ethics” Argument that there is no such thing … it is an oxymoron

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1- 63 Ethical Decision Making Corporate practices -- Massive write-downs and restatements of profit Misclassification of expenses as capital expenditures Pirating corporate assets for personal gain

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1- 64 Ethical Decision Making Recent Survey Results -- 70% distrust business executives Enron WorldCom

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1- 65 Reasons for Unethical Behavior Provocative Question -- Why are businesspeople perceived to be acting unethically?

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1- 66 Reasons for Unethical Behavior Perceptions caused by -- Not aware of impropriety Cultural norms and values vary Governance systems based on rule or relationships Differences in values between businesspeople and key stakeholders

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1- 67 Reasons for Unethical Behavior Allport-Vernon-Lindzey Study of Values -- Aesthetic Economic Political Religious Social Theoretical

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1- 68 Reasons for Unethical Behavior Most common reasons for bending rules -- Organizational performance required it Ambiguous or out of date rules Pressure from others – everyone else does it

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1- 69 Moral Relativism Morality is relative to some personal, social, or cultural standard and there is no method for deciding whether one decision is better than another.

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1- 70 Kohlberg’s Levels of Moral Development 1. Preconventional level Characterized by a concern for self Personal interest Avoidance of punishment

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1- 71 Kohlberg’s Levels of Moral Development 2. Conventional level Characterized consideration of society’s values External code of conduct

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1- 72 Kohlberg’s Levels of Moral Development 3. Principled level Characterized by adherence to internal moral code Universal values or principles

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1- 73 Encouraging Ethical Behavior Codes of Ethics Specifies how an organization expects its employees to behave on the job.

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1- 74 Encouraging Ethical Behavior Guidelines for Ethical Behavior Ethics Morality Law

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1- 75 Encouraging Ethical Behavior Approaches to Ethical Behavior Utilitarian Judged by consequences Individual Rights Fundamental rights in all decisions Justice Distribution in equitable fashion

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1- 76 Encouraging Ethical Behavior Approaches to Ethical Behavior Categorical imperative “golden rule” Means - Ends

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1- 77 Strategy Bits 192 U.S. companies surveyed -- 92% monitored employees use of e-mail/Internet 26% monitored employees electronic activities all the time Almost none had checks in place to protect employees privacy

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1- 78 CHAPTER 4 Environmental Scanning and Industry Analysis

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1- 79 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 4 Environmental Scanning and Industry Analysis

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1- 80 Environmental Scanning Societal environment -- Economic forces Technological forces Political-legal forces Sociocultural forces

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1- 81 Societal Environment Economic Forces -- Regulate exchange of materials, money, energy and information

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1- 82 Societal Environment Technological Forces -- Generate problem-solving inventions

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1- 83 Societal Environment Political-legal Forces -- Allocate power; provide laws and regulations

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1- 84 Societal Environment Sociocultural Forces -- Regulate values, mores, and customs of society

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1- 85 Task Environment Task environment -- Elements or groups that directly affect a corporation and are affected by it

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1- 86 Task Environment Industry Analysis -- In-depth examination of key factors within a corporation’s task environment

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1- 87 Variables in Societal Environment

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1- 88 Demographic Trends

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1- 89 Transformational Sociocultural Trends 8 Current Trends – Increasing environmental awareness Growing health consciousness Expanding seniors market Impact of the Generation Y boomlet Declining mass market Changing pace and location of life Changing household composition Increasing diversity of workforce & market

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1- 90 International Societal Environments

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1- 91 Scanning the Task Environment

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1- 92 Ethical Behavior “business ethics” Argument that there is no such thing … it is an oxymoron

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1- 93 Ethical Decision Making Corporate practices -- Massive write-downs and restatements of profit Misclassification of expenses as capital expenditures Pirating corporate assets for personal gain

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1- 94 External Strategic Factors Strategic myopia -- Willingness to reject unfamiliar as well as negative information

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1- 95 Issues Priority Matrix

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1- 96 Analyzing the Task Environment

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1- 97 Porter’s Approach to Industry Analysis Threat of New Entrants – Economies of scale Product differentiation Capital requirements Switching costs Access to distribution channels Cost disadvantages Government policy

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1- 98 Porter’s Approach to Industry Analysis Rivalry Among Existing Firms – Number of competitors Rate of industry growth Product or service characteristics Amount of fixed costs Capacity Height of exit barriers Diversity of rivals

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1- 99 Porter’s Approach to Industry Analysis Threat of Substitute Products or Services Bargaining Power of Buyers Bargaining Power of Suppliers Relative Power of Other Stakeholders

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1- 100 Industry Evolution Fragmented Industry – No dominant industry

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1- 101 Industry Evolution Consolidated Industry – Dominated by a few large firms

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1- 102 International Risk Assessment Continuum of International Industries

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1- 103 Strategic Groups

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1- 104 Strategic Types Defenders Prospectors Analyzers Reactors General Types –

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1- 105 Competitive Intelligence Called business intelligence Gathering information on a company’s competitors

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1- 106 Forecasting Forecasting Techniques -- Extrapolation Brainstorming Expert opinion Delphi technique Statistical modeling Scenario writing

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1- 107 Synthesis of External Factors -- EFAS

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1- 108 CHAPTER 5 Internal Scanning: Organizational Analysis

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1- 109 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 5 Internal Scanning: Organizational Analysis

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1- 110 Resource-Based Approach to Organizational Analysis Internal strategic factors -- Critical strengths and weaknesses that are likely to determine if the firm will be able to take advantage of opportunities while avoiding threats

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1- 111 Resource-Based Approach to Organizational Analysis Resources Capabilities Competency Core competency Distinctive competency

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1- 112 Core and Distinctive Competencies VRIO Framework -- Value Rareness Imitability Organization

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1- 113 Resource-Based Approach to Organizational Analysis 5-Step Approach Strategy Analysis -- Identify and classify resources Combine strengths into capabilities Appraise profit potential of capabilities Select strategy that best exploits Identify resource gaps invest in weaknesses

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1- 114 Continuum of Sustainability

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1- 115 Sustainability of Advantage Durability -- Rate at which a firm’s underlying resources and capabilities depreciate or become obsolete

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1- 116 Sustainability of Advantage Imitability -- Rate at which a firm’s underlying resources and capabilities can be duplicated by others

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1- 117 Sustainability of Advantage Core Competency can be imitated -- Transparency Transferability Replicability

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1- 118 Business Models Company’s method for making money in the current business environment.

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1- 119 Business Models Types of Models -- Customer Solutions Model Profit Pyramid Model Multi-Component System/Installed Base Model Advertising Model Switchboard Model

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1- 120 Business Models Types of Models -- Time Model Efficiency Model Blockbuster Model Profit Multiplier Model Entrepreneurial Model De Facto Standard Model

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1- 121 Value-Chain Analysis Linked set of value-creating activities beginning with basic raw material and ending with distributors getting final goods into hands of customers

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1- 122 Value-Chain Analysis Typical Value Chain for a Manufactured Product

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1- 123 Corporate Value-Chain Analysis Primary activities Support activities

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1- 124 Corporation’s Value Chain

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1- 125 Scanning Functional Resources & Capabilities Basic Organizational Structures -- Simple structure Functional structure Divisional structure Strategic business units (SBU’s) Conglomerate structure

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1- 126 Basic Organizational Structures

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1- 127 Corporate Culture Collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted from one generation of employees to another

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1- 128 Strategic Marketing Issues Market Position & Segmentation Marketing Mix Product Life Cycle Brand & Corporate Reputation

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1- 129 Product Life Cycle

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1- 130 Strategic Financial Issues Financial leverage Capital budgeting

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1- 131 Strategic Research & Development Issues R&D Intensity Technological Competence Technology Transfer

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1- 132 Technological Discontinuity

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1- 133 Strategic Human Resource Management Issues HRM – Increasing use of teams Union relations Temporary workers Quality of work life Human diversity

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1- 134 Internal Factor Analysis Summary Table

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1- 135 CHAPTER 6 Strategy Formulation: Situation Analysis & Business Strategy

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1- 136 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 6 Strategy Formulation: Situation Analysis & Business Strategy

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1- 137 Situational Analysis Strategy formulation -- Strategic planning or long-range planning Develops mission, objectives, strategies, policies

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1- 138 Situational Analysis -- process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses

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1- 139 IFAS – Maytag as Example

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1- 140 EFAS – Maytag as Example

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1- 141 SFAS Matrix

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1- 142 Situational Analysis Niche -- Need in the marketplace that is currently unsatisfied

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1- 143 Situational Analysis Corporate Goal -- Find propitious niche Strategic window

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1- 144 Situational Analysis SWOT -- Internal Strengths/Weaknesses External Opportunities/Threats

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1- 145 TOWS Matrix

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1- 146 Business Strategy Focuses on improving competitive position of company’s products or services within the specific industry or market segment

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1- 147 Porter’s Competitive Strategies Competitive Strategy -- Low cost Differentiation Direct competition Focus on niche

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1- 148 Porter’s Competitive Strategies Generic Competitive Strategies -- Lower Cost strategy Greater efficiencies than competitors Differentiation strategy Unique/superior value, quality, features, service

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1- 149 Porter’s Competitive Strategies Competitive Advantage -- Determined by Competitive Scope Breadth of the target market

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1- 150 Porter’s Competitive Strategies

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1- 151 Porter’s Competitive Strategies Cost Leadership -- Low-cost competitive strategy Broad mass market Efficient-scale facilities Cost reductions Cost minimization

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1- 152 Porter’s Competitive Strategies Differentiation – Broad mass market Unique product/service Premiums charged Less price sensitivity

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1- 153 Porter’s Competitive Strategies Cost-Focus – Low-cost competitive strategy Focus on market segment Niche focused Cost advantage in market segment

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1- 154 Porter’s Competitive Strategies Differentiation Focus – Specific group or geographic market focus Differentiation in target market Special needs of narrow target market

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1- 155 Porter’s Competitive Strategies Stuck in the middle – No competitive advantage Below-average performance

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1- 156 Risks of Generic Strategies Risks of Cost Leadership Cost leadership is not sustained: • Competitors imitate. • Technology changes. • Other bases for cost leadership erode. Proximity in differentiation is lost. Cost focusers achieve even lower cost in segments. Risks of Differentiation Differentiation is not sustained: • Competitors imitate. • Bases for differentiation become less important to buyers. Cost proximity is lost. Differentiation focusers achieve even greater differentiation in segments. Risks of Focus The focus strategy is imitated: The target segment becomes structurally unattractive: • Structure erodes. • Demand disappears. Broadly targeted competitors overwhelm the segment: • The segment’s differences from other segments narrow. • The advantages of a broad line increase. New focusers subsegment the industry. Risks of Cost Leadership Cost leadership is not sustained: • Competitors imitate. • Technology changes. • Other bases for cost leadership erode. Proximity in differentiation is lost. Cost focusers achieve even lower cost in segments. Risks of Differentiation Differentiation is not sustained: • Competitors imitate. • Bases for differentiation become less important to buyers. Cost proximity is lost. Differentiation focusers achieve even greater differentiation in segments. Risks of Focus The focus strategy is imitated: The target segment becomes structurally unattractive: • Structure erodes. • Demand disappears. Broadly targeted competitors overwhelm the segment: • The segment’s differences from other segments narrow. • The advantages of a broad line increase. New focusers subsegment the industry.

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1- 157 8 Dimensions of Quality

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1- 158 Competitive Strategy Industry Structure -- Fragmented Industry Consolidated Industry

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1- 159 Competitive Tactics Timing Tactics -- First mover Late movers

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1- 160 Competitive Tactics Market Location Tactics -- Frontal Assault Flanking Maneuver Bypass Attack Encirclement Guerrilla Warfare

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1- 161 Competitive Tactics Defensive Tactics -- Raise structural barriers Increase expected retaliation Lower the inducement for attack

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1- 162 Cooperative Strategies Collusion Strategic Alliances Mutual service consortia Joint ventures Licensing arrangements Value-chain partnerships

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1- 163 CHAPTER 7 Strategy Formulation: Corporate Strategy

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1- 164 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 7 Strategy Formulation: Corporate Strategy

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1- 165 Corporate Strategy 3 Key Issues – Firm’s directional strategy Firm’s portfolio strategy Firm’s parenting strategy

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1- 166 Corporate Directional Strategies

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1- 167 Corporate Strategy Directional Strategy – Orientation toward growth Expansion, contraction, status quo Concentration or diversification Internal development or acquisitions, mergers, or alliances

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1- 168 Corporate Strategy Directional Strategy – 3 Grand Strategies Growth strategies Stability strategies Retrenchment strategies

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1- 169 Corporate Strategy Growth Strategies -- External mechanisms Mergers Acquisitions Strategic alliances

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1- 170 Corporate Strategy Growth Strategies -- 2 Basic forms Concentration Diversification

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1- 171 Corporate Strategy Basic Concentration Strategies -- Vertical growth Horizontal growth

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1- 172 Corporate Strategy Vertical Growth -- Vertical integration Full integration Taper integration Quasi-integration Long-term contract

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1- 173 Corporate Strategy Vertical Growth -- Backward integration Forward integration

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1- 174 Corporate Strategy Concentration -- Horizontal Growth Horizontal integration

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1- 175 Corporate Strategy Basic Diversification Strategies -- Concentric Diversification Conglomerate Diversification

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1- 176 Corporate Strategy Concentric Diversification -- Growth into related industry Search for synergies

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1- 177 Corporate Strategy Conglomerate diversification -- Growth into unrelated industry Concern with financial considerations

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1- 178 Corporate Strategy International Entry Options -- Exporting Licensing Franchising Joint Ventures Acquisitions Green-Field Development

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1- 179 Corporate Strategy International Entry Options -- Production Sharing Turnkey Operation BOT Concept (Build, Operate, Transfer) Management Contracts

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1- 180 Corporate Strategy Stability Strategies -- Pause/proceed with caution No change Profit strategies

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1- 181 Corporate Strategy Retrenchment Strategies -- Turnaround Captive Company Strategy Selling out Bankruptcy Liquidation

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1- 182 Corporate Strategy Portfolio Analysis -- Resource commitment on best products to ensure continued success Resource commitment on new costly products high risk

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1- 183 BCG Matrix (Portfolio Analysis)

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1- 184 GE Business Screen (Portfolio Analysis) A Winners Winners B C Question Marks D F Average Businesses E Winners Losers G Losers H Losers Profit Producers Strong Average Weak Low Medium High Business Strength/Competitive Position Industry Attractiveness

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1- 185 Corporate Strategy Corporate Parenting Strategy -- Strategic factors performance improvement Analyze fit

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1- 186 CHAPTER 8 Strategy Formulation: Functional Strategy & Strategic Choice

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1- 187 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 8 Strategy Formulation: Functional Strategy & Strategic Choice

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1- 188 Functional Strategy The approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity

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1- 189 Functional Strategy Marketing Strategy – Pricing Selling Distribution

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1- 190 Functional Strategy Marketing Strategy – Product development Line extension

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1- 191 Functional Strategy Marketing Strategy – Advertising and promotion Push strategy Pull strategy

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1- 192 Functional Strategy Marketing Strategy – Pricing Skim pricing Penetration pricing Dynamic pricing

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1- 193 Functional Strategy Financial Strategy – Leveraged buyout Reversed stock split Tracking stock

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1- 194 Functional Strategy R&D Strategy – Technological leader Technological follower Open innovation

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1- 195 Functional Strategy Operations Strategy – Job shop Connected line batch flow Flexible manufacturing systems Dedicated transfer lines Mass production Continuous improvement system Modular manufacturing

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1- 196 Functional Strategy Purchasing Strategy – Multiple sourcing Sole sourcing Just-in-time (JIT) Parallel sourcing

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1- 197 Functional Strategy Logistics Strategy – Centralization Outsourcing Internet

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1- 198 Functional Strategy HRM Strategy – 360 degree appraisal

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1- 199 Functional Strategy Outsourcing errors – Activities that should not be outsourced Wrong vendor selection Writing poor contract Overlooking personnel issues Hidden costs of outsourcing Failing to plan exit strategy

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1- 200 Proposed Outsourcing Matrix

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1- 201 Functional Strategy Strategies to Avoid – 3 Follow the leader Hit another home run Arms race Do everything Losing hand

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1- 202 Corporate Strategy Growth Strategies -- External mechanisms Mergers Acquisitions Strategic alliances

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1- 203 Constructing Corporate Scenarios

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1- 204 Functional Strategy Subjective Factors Affecting Decisions -- Management’s attitude toward risk Pressures from stakeholders Pressures from corporate culture Needs and desires of key managers

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1- 205 Stakeholder Priority Matrix

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1- 206 Strategic Choice Avoiding the Consensus Trap -- Devil’s Advocate Dialectical Inquiry

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1- 207 Strategic Choice Evaluation of Strategic Alternatives -- Mutual exclusivity Success Completeness Internal consistency

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1- 208 CHAPTER 9 Strategy Implementation: Organizing for Action

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1- 209 STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER CHAPTER 9 Strategy Implementation: Organizing for Action

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1- 210 Strategy Implementation --Sum total of activities & choices required for strategic plan execution --Strategy implementation through programs, budgets, and procedures

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1- 211 Strategy Implementation Key Implementation Questions – Who carries out strategic plan? What needs doing for alignment w/ strategy? How is work coordinated?

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1- 212 Strategy Implementation Programs – Action oriented Matrix of change Feasibility Sequence of execution Location Pace & nature of change Stakeholder evaluations

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1- 213 The Matrix of Change

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1- 214 Strategy Implementation Achieving Synergy – Shared know-how Coordinated strategies Shared tangible resources

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1- 215 Strategy Implementation Achieving Synergy – Economies of scale or scope Pooled negotiating power New business creation

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1- 216 Strategy Implementation Structure follows strategy – New strategy is created New administrative problems emerge Economic performance declines New appropriate structure is invented Profit returns to previous level

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1- 217 Strategy Implementation Stages of Corporate Development – Stage I: Simple structure Stage II: Functional structure Stage III: Divisional structure Stage IV: Beyond SBU’s

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1- 218 Strategy Implementation Blocks to Changing Stages – Loyalty to comrades Task oriented Single-mindedness Working in isolation

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1- 219 Organizational Life Cycle

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1- 220 Changing Structural Characteristics of Modern Organizations

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1- 221 Strategy Implementation Advanced Types of Organizational Structures – Matrix Temporary cross-functional task forces Product/brand management Mature matrix

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1- 222 Strategy Implementation Advanced Types of Organizational Structures – Network structure (virtual organization) Cellular organization

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1- 223 Network Structure

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1- 224 Strategy Implementation Six Sigma – Define Measure Analyze Improve Establish

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1- 225 Strategy Implementation Job design to implement strategy – Job enlargement Job rotation Job enrichment Job characteristics model

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1- 226 Strategy Implementation International Issues – MNC’s International Strategic Alliances

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1- 227 Strategy Implementation International Development Stages– Domestic company Domestic company w/export division Domestic company w/int’l division MNC w/multidomestic emphasis MNC w/global emphasis

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1- 228 Strategy Implementation Centralization vs. Decentralization– Product-group structure Geographic-area structure

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1- 229 Geographic Area Structure

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1- 230

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