International Production Strategies Part 1: Chapter 15 MBA


Example of supply chain

Example of supply chain (Photo credit: Wikipedia)

English: Supply and demand market curves

English: Supply and demand market curves (Photo credit: Wikipedia)

Chart of NASDAQ closing values from 1994 to 2008

Chart of NASDAQ closing values from 1994 to 2008 (Photo credit: Wikipedia)

Some additional descriptions for the supply chain

Some additional descriptions for the supply chain (Photo credit: Wikipedia)

Schematic representation of vertical and horiz...

Schematic representation of vertical and horizontal integration in the automotive industry (Photo credit: Wikipedia)

English: Supply Chain of Indian Automobile Ind...

English: Supply Chain of Indian Automobile Industry (Photo credit: Wikipedia)

International production strategies and operations planning involves the acquisition of materials and physical resources. Vertical integration and outsourcing issues must be addressed.There are four key issues to analyze:

1. Production Capacity involves the amount of output required to satisfy market demand without overcapacity stalking the firm.

2. The location of the facilities involves the cost and availability of labor and benefits including worker productivity, raw materials, components, energy costs, etc. Political stability and regulation costs can impact location planning. Supply chain issues and the weight of shipping and transportation costs must be carefully analyzed.

3. Process Planning will be determined by an analysis of labor versus capital intensity; as well as standardization versus adaptation costs.

4. Facilities Layout and spatial arrangement of the production process is an important aspect of operations.

5. Quality issues like six sigma must be monitored and continuously improved.

6. Financing business operations and capital structure decisions are crucial. Funding business operations through debt, equity and internal funding must be carefully assessed. Think about venture capital and crowd-sourcing.

English: LBBW Venture Capital GmbH - Investmen...

English: LBBW Venture Capital GmbH – Investmentfocus Deutsch: LBBW Venture Capital GmbH – Investitionsfokus (Photo credit: Wikipedia)

English: Diagram of venture capital fund struc...

English: Diagram of venture capital fund structure for Venture capital (Photo credit: Wikipedia)


Conduct Company and Industry Research and Analysis Internationally




Swot analysis image

Swot analysis image (Photo credit: Wikipedia)

SWOT analysis diagram in English language. Fra...

SWOT analysis diagram in English language. Français : Matrice SWOT en anglais. (Photo credit: Wikipedia)

Your first assignment will involve industry and company research.
I will give you a table that you will complete and turn in on the second class meeting. This project will be completed using Google Drive.

Go to EBSCO and search PepsiCo in Company Profile. Then search “Global Food Products” in Industry Profile. Go to IBIS and search “Soft Drinks”.

Go to Lexis-Nexis search Company directories and Profiles to find Worldscope and Hoover’s. Then go to Proquest-modify the search and go to advanced search add “strategy and search recent 12 months..

Strategic direction requires insights in the form of market intelligence, market size, market growth rates, competitor analysis and other key variables. Industry reports are available for: Telecommunications, Healthcare, Energy and many other industries.

Your Research will be an organized effort to gather information about markets, customers and industries. It is a crucial component of our class. This exercise will offer important information that will allow you to identify and analyze the market and the competition.

You will systematically gather and interpret information about your organization. You will harness the power of research during the semester to support your decision-making and presentation efforts.

Watch these videos:

ProQuest search results
ProQuest search results (Photo credit: The Shifted Librarian)
Hoover's Logo

Hoover’s Logo (Photo credit: Wikipedia)

Your research will be conducted using the Library Databases. You will also create a stock portfolio on Yahoo Finance. At the end of the semester, you will submit your data in a “Market Study” Binder.

For example, go to the website “academics” and click on “library”. Then go to EBSCO and click on Business Searching Interface. Type in “Global Wine Industry” and you will find the MarketLine pdf report. It includes the following information that you need to know:

Executive summary, market overview, market data, market segmentation, market outlook, five forces analysis and leading companies.

Here’s an EBSCO list of some of the industries that we will cover in Class with industry participants:

Global Spirits: Diageo

Global Electronics: LG, Toshiba,

Global Hypermarkets and Supercenters and GLobal Food Retail: Metro, Carrefour and Tesco

Global Household Durables: IKEA

Global Consumer Electronics: Phillips, Sony

Global Automobile Manufacturers: Toyota, Hyundai, Honda, Volkswagon, Daimler

Global Food Retail:

Global New Cars

Global Semiconductors

Global Oil and Gas: Gazprom, Petrobras

Global Audio and Video Equipment: Samsung

Global Telecommunications: Telefonica

Global Pharma: Novartis

Global Metals and Mining: Rio Tinto



If you search “Global Air Transportation”, the link will look like:

Search “Global New Cars”:

If you search “Global Precious Metals and Mining”:

English: Figure 10: SWOT-Analysis of the organ...

English: Figure 10: SWOT-Analysis of the organic business idea. Belongs to The Organic Business Guide. (Photo credit: Wikipedia)

You can also search for a “company profile” that will provide the following information: company overview, key facts, business description, history, key employee biographies, major products and services, revenue analysis, SWOT analysis, top competitors, company view and locations and subsidiaries.

Swot analysis

Swot analysis (Photo credit: Wikipedia)

Then you will search the Lexis Nexis database for companies. Click on “Company Profile”. Enter the company name and put a check in the Worldscope box. Enter search and you will get a company description, key financials, income statement information, information regarding foreign assets and income margin. The “Ratio” section will provide three years of ratios for your company. At the end of the report, you will find a geographic sales breakdown and sales and operating income by business unit.

Use the snipping tool to enter some of the diagrams into your industry table. To find this tool, go to all programs, accessories and “snipping tool”.

If you were researching Apple, these are some of the resources that you would use to conduct an industry analysis:

Angel with mobile phone

Angel with mobile phone (Photo credit: Akbar Sim)

EuroMonitor Passport: Mobile Phones in the US

Various cellular phones from the last decade

Various cellular phones from the last decade (Photo credit: Wikipedia)

IBIS World: Computer Pheripheral Manufacturing #33411B; Computer Manufacturing #31141A; Operating Systems and Productivity Software #51121A; and Internet Publishing and Broadcasting in the US #51913B

In Lexis Nexis, under company profile search Hoover’s, Disclosure and Worldscope

In EBSCO, find Company Profiles:  look at the SWOT Analysis, Key Executives, and Company overview. Gather global information in the “Global Industry Reports” including: Global Computer and Electronics Retail; Global Mobile Phones and Global Computer Storage and Peripherals.

English: Yerba Buena Center for the Arts (YBCA...

English: Yerba Buena Center for the Arts (YBCA) one week before iPad 2 announcement. (Photo credit: Wikipedia)

Get the Company’s 10K and look for: Company background, business strategy, products, risk factors, stock performance and “Management” discussion of financial issues and segment operating performance. Pay attention to the Corporate Governance Issues.

Fo to Yahoo Finance and generate a Stock Portfolio. Include as many competitors as possible so that you can get a customized daily news bulletin. Buy 100 shares of stock in each company.

Go to the website and get the annual report under “Investor Relations

This plan was created for the Wikimedia Founda...

This plan was created for the Wikimedia Foundation’s strategic planning process and will be used during that process. (Photo credit: Wikipedia)

Use Proquest to find articles on strategic alliances, joint ventures, acquisitions and divestitures.

If you wanted to conduct research on a global food company like Sara Lee; look at some of the following reports:

IBIS Meat, Beef and Poultry Processing #31161

Baking Mix and Prepared Food Manufacturing #31181


file (Photo credit: Wikipedia)

Cookie, Cracker and Pasta Production in the US #31182

Coffee Production in the US #31192a

For Global information, use:

1. Packaged Foods and Meat;

2. Global Meat , Fish and Poultry

3. Global Hot Drinks

4. Global Frozen Food

5. Global Bread and Rolls

Here’s an excellent resource:

When you have gathered all of your data, you can complete your Team SWOT Analysis and start your TOWS Matrix.

Use these templates:

1. This worksheet will help you visually organize information about the external environment:

2. After completing a SWOT analysis, you will engage in a matching and converting process using a TOWS Matrix. Matching strengths to opportunities to leverage competitive advantages. Develope conversion strategies to convert or mitigate weaknesses or threats by dinding new markets, diversifying or developing new products. Generate a TOWS Matrix for your project using this format:

3. Generate a Porter’s Model Worksheet:

Here’s a Rudyard Kipling Quote to think about:

“I keep six honest serving , they taught me all I knew. Their names were What, Why, When, How , Where and Who.”

Figure 10: SWOT-Analysis of the organic busine...

Figure 10: SWOT-Analysis of the organic business idea. Belongs to The Organic Business Guide. (Photo credit: Wikipedia)

Dr. EveAnn Lovero teaches Strategic Management and International Business at Lewis University in Illinois.

You can research companies like:
Nestle Switzerland Food Producers 206,440 7.40

Novartis (REGD) Switzerland Pharmaceuticals & Biotechnology 188,471 6.76

Roche Hldgs (GENUS) Switzerland Pharmaceuticals & Biotechnology 176,552 6.33

HSBC Hldgs UK Banks 157,075 5.63

Bayer AG Germany Chemicals 103,823 3.72

Sanofi France Pharmaceuticals & Biotechnology 99,669 3.57

Royal Dutch Shell A UK Oil & Gas Producers 98,243 3.52

GlaxoSmithKline UK Pharmaceuticals & Biotechnology 90,773 3.25

Banco Santander Spain Banks 89,312 3.20

Vodafone Group UK Mobile Telecommunications 86,207 3.09

International Marketing Overview


Diversification (marketing strategy)

Diversification (marketing strategy) (Photo credit: Wikipedia)

English: Graphics depicting foreign direct inv...

English: Graphics depicting foreign direct investment in Germany in 2007 (Photo credit: Wikipedia)

English: Sustainability brand development stra...

English: Sustainability brand development strategies (Photo credit: Wikipedia)

English: Porter Generic Strategies

English: Porter Generic Strategies (Photo credit: Wikipedia)

Common Sense Branding

Common Sense Branding (Photo credit: Intersection Consulting)

English: Sustainability Marketing follows six ...

English: Sustainability Marketing follows six key elements: socio-ecological problems, consumer behavior, sustainability marketing values and objectives, sustainability marketing strategies, sustainability marketing mix and sustainability marketing transformation. This picture is giving an overview about the interconnections of the six key elements (Photo credit: Wikipedia)

Marketing Map

Marketing Map (Photo credit: miss_rogue)

English: Figure 22: Pricing strategies matrix ...

English: Figure 22: Pricing strategies matrix (Source: (Photo credit: Wikipedia)

English: Overview of green marketing activities

English: Overview of green marketing activities (Photo credit: Wikipedia)

International marketing involves: exporting, franchising, joint venture or full direct entry of a marketing organization into another country. This can be achieved by exporting a company’s product into another location, entry through a joint venture or strategic alliance with another firm in the target country, or foreign direct investment into the target country.

Deutsch: Zusammenhang zwischen Marketing-Mix, ...

Deutsch: Zusammenhang zwischen Marketing-Mix, 4 Ps, 4Cs und Marketing-Gleichung (Photo credit: Wikipedia)

The development of the marketing mix for that country must be determined. Some companies can use existing marketing strategies. This can be as easy as using existing marketing strategies and translating them into a foreign language. Conversely, marketing efforts may have to be tailored to suit the local market with customized product offerings, local production and pricing and customized distributions and packaging. Customized promotions, offers, websites, and social media strategies may have to be tailored to the specific market.

International marketing attempts to meet the needs of selected foreign countries that are considered attractive; to optimize firm learning and efficiency.

The firm does not need to export or enter all world markets to be considered an international marketer.Globalization and technology transform how products and services are marketed internationally. Cultural differences may require adaptation strategies over standardization strategies.

These are some of the concepts associated with international marketing:

1. Branding is central to the product’s perception. A strong brand name is a valuable asset in global markets. Brand names should not be offensive in foreign markets; they should be carefully researched.

2. Promotional strategies include: personal selling, advertising, public relations and direct marketing.

3. International Advertising across national boundaries is a sensitive issue. Companies can strive for consistency by standardizing the basic message and content.

4. Designing international distribution strategies is a trade-off between cost and the amount of required exposure. It can involve exclusive channels of intensive channels.

5. Pricing is influenced by production costs, purchasing power differences and fluctuating currency values.

New Marketing Strategy

New Marketing Strategy (Photo credit: Intersection Consulting)

6. Social Media builds social authority and helps a brand become more relevant. It may be used to disseminate information to a global audience instantaneously.

English: Individual Demand and Market Demand ف...

English: Individual Demand and Market Demand فارسی: تقاضای فردی و تقاضای بازار (Photo credit: Wikipedia)

A bond from the Dutch East India Company, dati...

A bond from the Dutch East India Company, dating from 7 November 1623, for the amount of 2,400 florins. (Photo credit: Wikipedia)

GDP real growth rate in Europe

GDP real growth rate in Europe (Photo credit: Wikipedia)

Quick St

Welcome to International Business MBA: Project Templates and Syllabus


Globalisation: Peugeot in Jakarta, Indonesia. ...

Globalisation: Peugeot in Jakarta, Indonesia. International trade coincides with the expansion of multinational corporations. (Photo credit: Wikipedia)


International Monetary Fund

International Monetary Fund (Photo credit: Wikipedia)




Moscow City site. 30/03/2008

Moscow City site. 30/03/2008 (Photo credit: Wikipedia)








This semester, you will increase your understanding of global markets and various regions of the world. This course will provide you with insights into the global context of business. You will become familiar with the logistics of international trade and cross-border investments. These skills are increasingly important to employers who are opening and integrating multiple markets around the world. Follow me on Twitter so I can send you digital hand-outs from my Pinterest Boards.





I want to officially welcome you to the International Business class where we will study different countries as well as multinational enterprises (MNE). An MNE hopes to grow by casting a worldwide net and seizing market and production opportunities outside the home-country market.

Here’s an interesting definition of globalization for you to consider throughout this course:

“Globalization”: …

This International Business course will help you understand the complexity of the global business environment by exploring international trade and finance, marketing and management issues. You will learn about the following concepts: differences in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations and trade agreements.

1. Here’s an interesting trade website for you to explore:

2. Globalization and Firms: Watch this video

The lowering of trade barriers has encouraged the globalization of markets and production. International Managers operate in an increasingly complex and competitive environment.

3. Watch this video about the Pros and Cons of Globalization

You will understand the importance of the following Organizations:

International Monetary Fund

We are using the International Business textbook by Wild,

It is imperative that you purchase the correct edition. You will receive the access card with a code to sign into MyManagementLab/myiblab

Now that you have a Twitter Account, you may want to start following News organizations like BBC that will provide information regarding international business. Once you select a company, you will follow them and their competitors on Twitter.

I will send you announcements with due dates. In your MYmanagementlab, you have an assignment schedule to adhere to. Exams and video exercises are only open for a limited time.

Here’s the basic syllabus. Prior to each class session students should read the assigned chapters, finish the corresponding comprehensive exams and complete chapter video exercises.

  Assigned   Reading Video   Exercises Comprehensive   Exams


Chapter 1 Globalization

Chapter 2 Cross-Cultural Business

Globalization and RIMImpact of Culture on Business: Spotlight on   China Chapter 1 & Chapter 2


Chapter 3 Politics, Law and Business Ethics

Chapter 4 Economics and Emerging Markets

Anthony Shadid: Unrest in the Middle East and North AfricaEmerging Markets: Spotlight on India and Mexico Chapter 3 & Chapter 4


Chapter 5 International Trade Chapter

6 Business–Government Trade Relations

The New Global ChallengersGovernment Intervention:   Spotlight on China and Germany Chapter 5 & Chapter 6


Chapter 7 Foreign Direct Investment

Chapter 8 Regional Economic Integration

Wal-Mart in China and MexicoRegional Economic Integration: Outlook for the European Union Chapter 7 & Chapter 8


Chapter 9 International Financial Markets

Chapter 10 International Monetary System

The G20 and the Global Monetary and Financial SystemsYongshua USA, LLC: Value of Yuan in China Chapter 9 & Chapter 10


Chapter 11 International Strategy and Organization

Chapter 12 Analyzing International Opportunities

Acer Vs. HP: Can Acer Surpass HP?Comparative and Competitive Advantages in Global Competition Chapter 11 & Chapter 12


Chapter 13 Selecting and Managing Entry Modes

Chapter 14 Developing and Marketing Products

MyGym (Mexico): Entry Strategy and Strategic AlliancesInternational Marketing and Unilever’s BOP Strategy Chapter 13 & Chapter 14


Chapter 15 Managing International Operations

Chapter 16 Hiring and Managing Employees

Toyota: Outsourcing and LogisticsJoby: Global HR Management Chapter 15 & Chapter 16

Follow these “MyLab / Mastering Student Registration” Instructions:

To register for your 59-615 International Business Class:

1. Go to

2. Under Register, click Student.

3. Enter your instructor’s course ID:

4. Sign in with an existing Pearson account or create an account:

            · If you have used a Pearson website (for example, MyITLab, Mastering, MyMathLab, or MyPsychLab), enter your Pearson username and password.Click Sign In.

            · If you do not have a Pearson account, click Create. Write down your new Pearson username and password to help you remember them.

5. Select an option to access your instructor’s online course:

           · Use the access code that came with your textbook or that you purchased separately from the bookstore.

            · Buy access using a credit card or PayPal.

            · If available, get 17 days of temporary access. (Look for a link near the bottom of the page.)

6. Click Go To Your Course on the Confirmation page. Under MyLab / Mastering New Design on the left, click 59-615

To sign in later:

1. Go to

2. Click Sign In.

3. Enter your Pearson account username and password. Click Sign In.

4. Under MyLab / Mastering New Design on the left, click 59-615-

Additional Information

See Students > Get Started on the website for detailed instructions on

registering with an access code, credit card, PayPal, or temporary access.

Here are your Project Templates:


A.        Mission statement/objectives/specific strategies.

B.        SIC number — industry involvement (describe what #’s mean).

C.        History — what they do, sell, or manufacture – How did they begin?

D.        Sales and Profits – Three year comparative charts

E.       Who owns and/or runs the company – (Executives and Board Members)

F.         Organization chart showing operating units

G.       Stock Performance (52 week high/low) and 5 year trends vs. competitors.

H.      Consumer Brands

I.         Update/Current Events (see journal report)

J.          Global Competitors

Written paper should be 7-10 typewritten pages plus computer generated graphs and bibliography.


Copy  and Paste the following templates into a Google Drive Document:

II. Contents of Written Report for Google Drive

I.          History:

A.        When did the company begin?

B.      Who was the founding father?

C.     What do they do, sell, or manufacture?    

II. Strategic Management Process

A.      Mission Statement

B.        Specific Strategies

III.       SIC numbers/ NAICS numbers

Describe what each number means and classify using common prefixes.

IV. International Competitive Arena – Market Share Pie Graph


V. Operations:  List domestic and foreign sites.

VI. Sales and Profits:  Three year comparative charts

VII.   Organization Chart

A.        Operating units with revenue numbers

B.     Executives: names and short bio

VII. Stock Performance:

Trend analysis begins the first week of class and ends the day of your oral presentation and written report.

52 week high/low to 5 year spread or “Max” Spread with global competitors. You can generate this graph on Yahoo Finance.



Use Journal format to describe a recent article published in a business periodical.  A summary of the article and full bibliographical information is mandatory.
























XI.       Bibliography:  All inclusive with specific page references.  List all references used in compiling the above report












F. Generic Industry Type Template












Industry   definition
Market   size and growth rate
Key   rivals & market share
Scope of   competitive rivalry
Concentration   vs. fragmentation
Number of   buyers
Demand   determinants
Degree of   product differentiation
Product   innovation
Key   success factors
Supply/demand   conditions
Analysis   of stage in life cycle
Pace of   technological change
Vertical   integration
Economies   of scale
Learning/experience   curve effects
Barriers   to entry




Porter’s Five Forces Model




































































































































You should be following me on Twitter and reading the pins that I send you from my Pinterest Boards; these are virtual handouts.












You should be following me on Twitter and reading the pins that I send you from my Pinterest Boards; these are virtual handouts.









































Brand You: Enhance Your Digital Reputation with Social Media and Create a Website-Lesson #2


Social Media Landscape

Social Media Landscape (Photo credit: fredcavazza)

Image representing Social Media Networks as de...

Apple Dashboard Widget Icon
Image via Wikipedia

I love the World of Social Media; I find it intellectually stimulating. This semester, I will teach you how to enhance your digital reputation with a series of social media strategy lessons. I will show you how to create a website that will enhance “Brand You”.

These personal strategies will enhance your social media reputation and allow you to create a “Brand You.” Hopefully, this should help you get a better job.

The term Social Media refers to the use of web-based and mobile technologies to turn communication into an interactive dialogue. Social Media allows your customers to know you on a personal level. Here’s an interesting video for you to watch

Social Media gives you an opportunity to share engaging content and enhance your digital reputation. Social media, blogs and Twitter allows you to share your knowledge with a vast audience of savvy, inter-connected people. Build your digital reputation with online activities and high-quality content that you post.

Social Media activities can enhance your job opportunities. My students are getting job offers from LinkedIn because they are blogging and delivering credible, relevant, high-quality business content.

Eventually, you will join a passionate community of like-minded people with common interests. Sometimes, you will meet them in the real world at a networking event.

Infographic on how Social Media are being used...

Infographic on how Social Media are being used, and how everything is changed by them. (Photo credit: Wikipedia)

This semester, you will obtain an ISBN number and become published authors on This activity will build brand awareness for your name.

We will continuously integrate Social Media strategies into this class throughout the semester. Eventually, you will build your own “Personal Brand” to promote your books and enhance your “Digital Reputation.

There are various platforms, applications and features that you will need to deploy to accomplish your social media goals. This process will optimize searches for your name using your “Vanity” URL. Mine is

The website and all of your Social Media activities will become your professional “Window to the World.” Since your Facebook activities fall within the realm of Social Media, it is important for you to adjust your “Privacy Controls” on your Facebook Page so that only your friends have access to your personal activities. Furthermore, it is essential for you to post content that enhances your persona in the digital world.

Image representing Google as depicted in Crunc...

Image via CrunchBase

When you engage in Social Media activities and integrate social outreach activities into your Web SIte, these references generally show up with your “name” page on a Google Search. You want to control as many links to your name on the Internet as possible. You want all links to your name to represent your character in the most favorable light; think of this process as “Reputation Management.” You will use these Social Media Tools to enhance your digital reputation: #xmind #SocialMedia

Your LinkedIn Profile is a good example of managing your digital reputation. When I type my name “Eveann Lovero” into Google’s Search Box, these are some of the items in the results:

You will create a similar “Digital Profile” when you start engaging in Social Media Strategies. Here’s how it works:

  1. The first step involves claiming your personal web domain. Your personal domain name is your identification label. When you claim your own name it is called a “Vanity” URL; mine is It defines your realm of administrative autonomy, authority and control in the Internet. Go to to register your personal domain name and then create an email account. I created I also have a Travel Website
  2. The second step involves setting up a website at Using my WordPress Dashboard, I selected the “Twenty Eleven” Theme. Here is a link to a Bluehost Video instructional video that will help you get started : Follow the directions and use the “Help” Center Button on the BlueHost web page and put in “set up WordPress”. Look at the Theme Options and select the one that you like best. You do not have to use “Twenty Eleven.” Use the WordPress “Support” button for clarification; it is very helpful.
  3. The third step involves creating an informative blog that your audience wants to read and share. Fill your blog with photos, videos and in-text links. Eventually, you can move data from Google Docs into your blog. Check out the interesting Google Docs Templates that are available to you, including the “Resume Template” and the “Project Management Template.”  Using templates will save time and dramatically enhance your blog posts.
  4. The fourth step involves signing up for a account so that you can micro blog your blog posts and re-tweet other blog posts that you think are worthwhile to your followers. You want to target a specific audience with your posts, so I will show you how to optimize your Twitter Profile for SEO. I selected the Twitter user name “Social Media Evie” to enhance SEO. It is a good idea to use a Dashboard Widget to show your Tweets on your webpage. These issues will be addressed in more detail in a later posts.

Let’s begin our adventure by entering the wonderful world of WordPress. This is my first demonstration post for my students. I will blog every step of the process so that my students will not get frustrated or lose pertinent data. My students should print this checklist:

  1. Give your Website an interesting or provocative title. All of your blog posts will become SEO opportunities for you. The text in your posts will be analyzed by a program that you will install on your computer called Zemanta. Zemanta will also allow you to select from a designated list tags, categories and stock photos. I selected the Search Engine pie graph for my first post and then I changed it to the Apple Inc. Dashboard. This is very easy to do with Zemanta.
  2. Watch this video to download zemanta as a Plug-in on your WordPress Site.
  3. Add a photo to your post through the Zemanta Feature and/or click on the photo icon button next to “Upload/Insert” to post a photo from your computer, gallery or media file.
  4. Select a photo from your computer and insert it into your post. Select the appropriate area using your cursor. You can add many photos to your post later.
  5. Add tags to the photo for SEO (Search Engine Optimization) purposes.
  6. Add a caption and click on “Update”.
  7. Look at the bottom of your post and add any “In-Text Links” that you like from the Zemanta text analysis. I inserted “SEO” and all the other highlighted terms in this post. This process allows me to turn my post into a mini-lesson; college professors love opportunities like this.
  8. Then add any relevant “Categories” and “Tags” that will enhance your SEO (Search Engine Optimization). This will improve the performance of your website in search engines like Google. Your goal is to optimize your place, prominence or rank within the search results. Hopefully, your Social Media efforts will allow you to be found on the first page of the “search engine’s results” page. Your SEO activities will allow you to target different types of searches, including image search, local search and video search. I like to incorporate images and embed videos into my blog posts when possible.
  9. Allow all tags that are relevant from the Zemanta search box by clicking on “Apply All” or select specific terms. I generally add a few extra terms for long tail searches.
  10. I will add “How to Create a WordPress Blog” in both categories.
  11. View your post and carefully “Edit” the text and then Publish your Post. Edit your spelling and grammar from the toolbar “ABC”. Correct errors before you publish your post.
  12. Monitor your “Dashboard” statistics to see if your Social Media Strategy is working.
  13. Go to your Dashboard and load “Widgets” under the “Appearance” Tab. I loaded the following widgets to my website:
  14. Custom Menu
  15. Pages
  16. RSS Feeds
  17. Jetpack
  18. Add RSS feeds to your site using widgets in the “Appearance” tab:

I added CNN Money: and The Wall Street Journal:

GO to “Settings” and add a site title and a tagline.

Under “appearance” enable sharing bottons like Twitter and Facebook.

Go to Pages and add sub-categories like “Pinterest Boards” or “Travel Videos”


Graph of social media activities

Graph of social media activities (Photo credit: Wikipedia)

Dr. EveAnn Lovero teaches Strategic Management and International Business at Lewis University in Illinois. She writes a Travel Blog @ and she writes books about Italy @




The Wonderful World of Global Strategic Management


Statue of Ralph Waldo Emerson, full-length, se...

Statue of Ralph Waldo Emerson, full-length, seated, facing front (Photo credit: Wikipedia)

English: Engraving of American philosopher and...

English: Engraving of American philosopher and poet Ralph Waldo Emerson as seen in his later years. Scanned from Ralph Waldo Emerson by Oliver Wendell Holmes and Charles Dudley Warner. Published by Houghton Mifflin, 1885. (Photo credit: Wikipedia)

Strategic Aligment Cycle

Strategic Alignment Cycle (Photo credit: Wikipedia)

Strategic Management involves  the “Art of Winning.” If you want to win, you must embrace change with entrepreneurial passion to create a sustained competitive advantage. You are the master of your destiny! Your diligence will enhance your success in all of your future endeavors.

What is your end game? Ralph Waldo Emerson said “Commerce is a game of skill which many people play but which few play well.”

Watch this video:

English: Ralph_Waldo_Emerson_1940_Issue-3c.jpg...

English: Ralph_Waldo_Emerson_1940_Issue-3c.jpg Category:Famous Americans Issues Category:Ralph Waldo Emerson (Photo credit: Wikipedia)




Look at my Pinterest Board for Strategic Management Concepts and infographics:

In my class, you will build an arsenal of Global Strategic Management skills that will help you win in life! You will optimize your personal value chain!

Components of the Value Chain


The over-riding intent of topic is to help you become a more savvy participant in the game of commerce. This will prepare you for a successful management career. This is a big picture course; it cuts across the whole spectrum of business functions that you have studied in your previous coursework. You will synthesize what you have learned in prior classes to make fact-based decisions.

You must focus on the total enterprise: (1) the industry and the competitive environment (2) long run direction and strategy (3) resources and competitive capabilities and (4) prospects for success. You will seek strategic harmony; a blend of sound strategy formulation and effective strategy execution!


Marine Institute Ireland, Strategic_Planning_S...

Marine Institute Ireland, Strategic_Planning_Symbol (Photo credit: Wikipedia)

The skills that you build in class, will ultimately maximize the value of your personal and professional assets with a strategic plan that you will deploy.

Change Management

Change Management (Photo credit: larry_odebrecht)

First, you must analyze the Drivers of Change in the External Environment by conducting research using the following model:

Drivers of Change in the External Environment Mindmap: #xmind

Michael Porter’s Five-Forces:

What is business level strategy?

Position yourself in the industry

There are many topics that you need to master. Your Strategic Management Toolkit will be brimming with intellectual assets.

Here’s an overview of these Strategic Management Tools:

Strategy Toolkit Mindmap: #xmind

Using XMind for Mind Mapping

Using XMind for Mind Mapping (Photo credit: Wesley Fryer)

In order to win, you must maintain a positive digital reputation. You will build this with another toolkit. Here are the components of your Social Media toolkit:

Social MediaToolkit Mindmap: #xmind

Click on the “Follow me on Pinterest” You will find “Business Boards” that highlight some of the concepts that we cover in class:

When you click on a pin, they generally take you to more in-depth information about the concept.

Here’s an outstanding Introduction to Strategy Video for you to watch:

Conduct a SWOT Analysis

Create a Boston Consulting Group Matrix:

Start with a Mission:

Try this exercise:


Use this easy and humorous class-opener to craft a vision statement for any organization.  The point here is that its easy to come up with some blather of a vision statement, but it is meaningless if it not backed up by executives actions and widely shared and understood by all members the organization and its external stakeholders.



A) growing; leading; worldclass; premier; benchmark; first-mover


B) dynamic; innovative; creative; breathtaking; cost-effective; diverse; high-quality

C) products; services; people; products and services; people and services


D) thrill our shareholders; delight our customers; enrich our stakeholders’ lives


E) hyper-competitive; emerging; growing; attractive; thriving

F) business-solutions; health-solutions; consumer-solutions; financial-solutions; environmental-solutions


Set your objectives:




Market share


on-line presence/social media

favorable financial performance

manage debt appropriately

Enhance liquidity

more favorable brand image

maximize shareholder wealth

enhance customer satisfaction

behave in a socially responsible/ethical manner

Identify your strategies: Using the Ansoff Matrix

Select your entry mode:

Establish an organizational structure:

Apple $156,508,000,000 comes from: Macs, iPod, iPhone, Music Related, Peripherals, Software and Services

Steve Jobs talks about how Apple is structured:

Richard Rumelt talks about business strategy:

Hard Rock Cafe strategy:

[1] Adapted from Stewart, T. 1996. A refreshing change: Vision statements that make sense.  Fortune, 134: 6: 195-197.






Dr. EveAnn Lovero teaches Strategic Management and International Business at Lewis University. She writes Travel Guides at

It's a Wonderful World (1939 film)

It’s a Wonderful World (1939 film) (Photo credit: Wikipedia)

Six Sigma



Six Sigma

Baldrige Award Criteria for Performance Excellence


Advocate Good Samaritan Hospital

Advocate Good Samaritan Hospital (Photo credit: Wikipedia)

English: Credit: National Oceanic and Atmosphe...

English: Credit: National Oceanic and Atmospheric Administration/Department of Commerce Malcolm Baldrige, Secretary of Commerce Source (Photo credit: Wikipedia)

Malcolm Baldrige Great Hall, named for former ...

Malcolm Baldrige Great Hall, named for former Commerce Secretary Howard M. Baldrige, Jr. (Photo credit: Wikipedia)

Seal of the United States Department of Commerce

Seal of the United States Department of Commerce (Photo credit: Wikipedia)

Howard Malcolm Baldrige

Howard Malcolm Baldrige (Photo credit: Wikipedia)

Malcolm Baldrige with Imelda Marcos

Malcolm Baldrige with Imelda Marcos (Photo credit: Wikipedia)

Former President Ronald Reagan and First Lady ...

Former President Ronald Reagan and First Lady Nancy Reagan in Los Angeles, California (Photo credit: Wikipedia)

“Baldrige was nominated to be Secretary of Commerce by President-elect Ronald Reagan on December 11, 1980, and confirmed by the United States Senate on January 22, 1981. During his tenure, Baldrige played a major role in developing and carrying out Administration trade policy. He took the lead in resolving difficulties in technology transfers with China and India. Baldrige held the first Cabinet-level talks with the Soviet Union in seven years which paved the way for increased access for U.S. firms to the Soviet market. He was highly regarded by the world’s most preeminent leaders.”

Ronald Reagan wearing cowboy hat at Rancho del...

Ronald Reagan wearing cowboy hat at Rancho del Cielo. (Photo credit: Wikipedia)

The Baldrige Award Criteria will help your organization act strategically. You will focus on results, while you align your processes and resources to achieve competitive advantage. Through self-assessment, you will enhance your engagement levels with your customers and your workforce. Strive to have an effective, systematic management approach that is fact-based and systematic.

Improve organizational performance and work toward a “visible, unequivocal, unyielding commitment to continuous improvement.” Follow this link for the Performance Criteria:

Follow this link to your Organizational Profile:

Baldrige Award Recipients[edit]

Year Award Recipient Sector
2013 Pewaukee School District, Pewaukee, WI education
Sutter Davis Hospital, Davis, CA health care
2012 Lockheed Martin Missiles and Fire Control, Grand Prairie, TX manufacturing
MESA Products Inc., Tulsa, OK small business
North Mississippi Health Services, Tupelo, MS health care
City of Irving, Irving, TX nonprofit
2011 Concordia Publishing House, St. Louis, MO nonprofit
Henry Ford Health System, Detroit, MI health care
Schneck Medical Center, Seymour, IN health care
Southcentral Foundation, Anchorage, AK health care
2010 MEDRAD, Warrendale, PA manufacturing
Nestlé Purina PetCare Co., St. Louis, MO manufacturing
Freese and Nichols Inc., Fort Worth, TX small business
K&N Management, Austin, TX small business
Studer Group, Gulf Breeze, FL small business
Advocate Good Samaritan Hospital, Downers Grove, IL health care
Montgomery County Public Schools, Rockville, MD education
2009 Honeywell Federal Manufacturing & Technologies, Kansas City, MO manufacturing
MidwayUSA, Columbia, MO small business
AtlantiCare, Egg Harbor Township, NJ health care
Heartland Health, St. Joseph, MO health care
VA Cooperative Studies Program Clinical Research Pharmacy Coordinating Center, Albuquerque, NM nonprofit
2008 Cargill Corn Milling North America, Wayzata, MN manufacturing
Poudre Valley Health System, Fort Collins, CO health care
Iredell-Statesville Schools, Statesville, NC education
2007 PRO-TEC Coating Co., Leipsic, OH small business
Mercy Health System, Janesville, WI health care
Sharp Healthcare, San Diego, CA health care
City of Coral Springs, Coral Springs, FL nonprofit
U.S. Army Armament Research, Development and Engineering Center (ARDEC), Picatinny Arsenal, NJ nonprofit
2006 MESA Products, Inc., Tulsa, OK small business
Premier Inc., San Diego, CA service 
North Mississippi Medical Center, Tupelo, MS health care
2005 Sunny Fresh Foods, Inc., Monticello, MN manufacturing
DynMcDermott Petroleum Operations, New Orleans, LA service
Park Place Lexus, Plano, TX small business
Richland College, Dallas, TX education
Jenks Public Schools, Jenks, OK education
Bronson Methodist Hospital, Kalamazoo, MI health care
2004 The Bama Companies, Tulsa, OK manufacturing
Texas Nameplate Company, Inc., Dallas, TX small business
Kenneth W. Monfort College of Business, Greeley, CO education
Robert Wood Johnson University Hospital Hamilton, Hamilton, NJ health care
2003 Medrad, Inc., Indianola, PA manufacturing
Boeing Aerospace Support, St. Louis, MO service
Caterpillar Financial Services Corp., Nashville, TN service
Stoner Inc., Quarryville, PA small business
Community Consolidated School District 15, Palatine, IL education
Baptist Hospital, Inc., Pensacola, FL health care
Saint Luke’s Hospital of Kansas City, Kansas City, MO health care
2002 Motorola Inc. Commercial, Government and Industrial Solutions Sector, Schaumburg, IL manufacturing
Branch-Smith Printing Division, Fort Worth, TX small business
SSM Health Care, St. Louis, MO health care
2001 Clarke American Checks, Incorporated, San Antonio, TX manufacturing
Pal’s Sudden Service, Kingsport, TN small business
Chugach School District, Anchorage, AK education
Pearl River School District, Pearl River, NY education
University of Wisconsin–Stout, Menomonie, WI education
2000 Dana Corp.-Spicer Driveshaft Division, Toledo, OH manufacturing
KARLEE Company, Inc., Garland, TX manufacturing
Operations Management International, Inc., Greenwood Village, CO service
Los Alamos National Bank, Los Alamos, NM small business
1999 STMicroelectronics, Inc.-Region Americas, Carrollton, TX manufacturing
BI Performance Services, Minneapolis, MN [3] service
The Ritz-Carlton Hotel Company, L.L.C., Atlanta, GA service
Sunny Fresh Foods, Monticello, MN small business
1998 Boeing Airlift and Tanker Programs, Long Beach, CA manufacturing
Solar Turbines Inc., San Diego, CA manufacturing
Texas Nameplate Company, Inc., Dallas, TX small business
1997 3M Dental Products Division, St. Paul, MN manufacturing
Solectron Corp., Milpitas, CA manufacturing
Merrill Lynch Credit Corp., Jacksonville, FL service
Xerox Business Services, Rochester, NY service
1996 ADAC Laboratories, Milpitas, CA manufacturing
Dana Commercial Credit Corp., Toledo, OH service
Custom Research Inc., Minneapolis, MN small business
Trident Precision Manufacturing Inc., Webster, NY small business
1995 Armstrong World Industries’ Building Products Operation, Lancaster, PA manufacturing
Corning Telecommunications Products Division, Corning, NY manufacturing
1994 AT&T Consumer Communications Services, Basking Ridge, NJ service
GTE Directories Corp., Dallas/Ft. Worth, TX service
Wainwright Industries Inc., St. Peters, MO small business
1993 Eastman Chemical Co., Kingsport, TN manufacturing
Ames Rubber Corp., Hamburg, NJ small business
1992 AT&T Network Systems Group/Transmission Systems Business Unit, Morristown, NJ manufacturing
Texas Instruments Inc. Defense Systems & Electronics Group, Dallas, TX manufacturing
AT&T Universal Card Services, Jacksonville, FL service
The Ritz-Carlton Hotel Co., Atlanta, GA service
Granite Rock Co., Watsonville, CA small business
1991 Solectron Corp., Milpitas, CA manufacturing
Zytec Corp., Eden Prairie, MN manufacturing
Marlow Industries, Dallas, TX small business
1990 Cadillac Motor Car Division, Detroit, MI manufacturing
IBM Rochester, Rochester, MN manufacturing
Federal Express Corp., Memphis, TN service
Wallace Co. Inc., Houston, TX small business
1989 Milliken & Co., Spartanburg, SC manufacturing
Xerox Corp. Business Products and Systems, Rochester, NY manufacturing
1988 Motorola Inc., Schaumburg, IL manufacturing
Commercial Nuclear Fuel Division of Westinghouse Electric Corp., Pittsburgh, PA manufacturing
Globe Metallurgical Inc., Beverly, OH small business




Ratio Analysis: DuPont Decomposition Computation


1917 photograph of the board of the Federal Re...

1917 photograph of the board of the Federal Reserve of the United States. (Photo credit: Wikipedia)

Description: Newspaper clipping USA, Woodrow W...

Description: Newspaper clipping USA, Woodrow Wilson signs creation of the Federal Reserve. Source: Date: 24 December 1913 (Photo credit: Wikipedia)

English: Diagram of DuPont analysis of return ...

English: Diagram of DuPont analysis of return on equity. ‪Norsk (bokmål)‬: Diagram over DuPont-analyse av kapitalrentabilitet. (Photo credit: Wikipedia)

Componenets of the asset side of the Federal R...

Componenets of the asset side of the Federal Reserve System balance sheet from January 4, 2007 to September 25, 2008. This is the assets of all 12 Federal Reserve Banks combined as reported by the Federal Reserve. (Photo credit: Wikipedia)

English: Components of the liability side of t...

English: Components of the liability side of the Federal Reserve System balance sheet using statistical release dates from January 4, 2007 to Arpil 2, 2009. This is the liabilities of all 12 Federal Reserve Banks combined as reported by the Federal Reserve. This image was created using Calc spreadsheet program. See table below for source data. The data was obtained from: (Photo credit: Wikipedia)

DuPont analysis (also known as the DuPont equation, DuPont Model or the DuPont method) is an expression which breaks ROE (Return On Equity) into three parts.

ROE = (Profit margin)*(Asset turnover)*(Equity multiplier) = (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)= (Net Profit/Equity)

The name comes from the DuPont Corporation that started using this formula in the 1920s.

English: A graph showing the economic data fro...

English: A graph showing the economic data from Portugal, Italy, Ireland, Greece, Spain (PIIGS), the United Kingdom, Germany, the EU and the Eurozone for 2009. Data is taken from Eurostat: Most data: GDP growth: Ireland growth (preliminary): (Photo credit: Wikipedia)

Follow this link to conduct a  DuPont Analysis

Watch this investopedia video about ROE

Understand how the Balance Sheet works:

Compute your Tobin’s Q Ratio


Web Browser Market Share 2004-2008

Web Browser Market Share 2004-2008 (Photo credit: Wikipedia)

English: World DRAM market share by salesout 2...

English: World DRAM market share by salesout 2009/Q3 (Photo credit: Wikipedia)

OS market share - Janurary 2010

OS market share – Janurary 2010 (Photo credit: Wikipedia)

English: World DRAM market share 2008-Q1

English: World DRAM market share 2008-Q1 (Photo credit: Wikipedia)

North American Valve Train Market Share

North American Valve Train Market Share (Photo credit: Wikipedia)

Journal of Human Capital

Journal of Human Capital (Photo credit: Wikipedia)

English: Market share of domain name registrars

English: Market share of domain name registrars (Photo credit: Wikipedia)

Graph of the TNS Market Share for the top 4 UK...

Graph of the TNS Market Share for the top 4 UK Supermarkets (Photo credit: Wikipedia)

Market share of mobile os s 2008

Market share of mobile os s 2008 (Photo credit: Wikipedia)

The company’s book value is derived through an analysis of their Balance Sheet. Add up all of the Tangible Assets (including real estate, inventory, etc) and then subtract the all of the liabilities (including corporate debt, money owed to vendors, etc). Whatever is left over is the Book Value. Divide this Book Value by the number of shares outstanding and you know the value each share would have if the company were to go out of business. If the market value of the firm is trading for less than the book value, the stock might be a good target for an acquisition.

The Book Value does not reveal  the value of the intangible assets like patents and intellectual property. When a company is acquired, the difference between the book value and the market value good-will; including value associated with brand recognition, market share and human capital.

“Tobin’s q is the ratio between a physical asset’s market value and its replacement value. It was introduced in 1968 by James Tobin and William Brainard, although the use of the letter “q” did not appear until Tobin’s 1969 article “A general equilibrium approach to monetary theory”. Tobin (1969) writes

One, the numerator, is the market valuation: the going price in the market for exchanging existing assets. The other, the denominator, is the replacement or reproduction cost: the price in the market for the newly produced commodities. We believe that this ratio has considerable macroeconomic significance and usefulness, as the nexus between financial markets and markets for goods and services.

Market value per share/Book Value per share = Tobin’s Q

Calculate Your Altman Z Score


Altman Z-Score calculator

Altman Z-Score calculator (Photo credit: Wikipedia)

Factors contributing to someone's credit score...

Factors contributing to someone’s credit score, for Credit score (United States). (Photo credit: Wikipedia)

Check your  Z-Score: How’s your Fiscal Fitness?

The Z-score formula for predicting bankruptcy was published in 1968 by Edward I. Altman, a Professor of Finance at New York University. The formula may be used to predict the probability that a firm will go into bankruptcy within two years.

Z-scores are used to predict corporate defaults and an easy-to-calculate control measure for the financial distress status of companies in academic studies. The Z-score uses multiple corporate income and balance sheet values to measure the financial health of a company.

Compares the various grading methods in a norm...

Compares the various grading methods in a normal distribution. Includes: Standard deviations, cumulative percentages, percentile equivalents, Z-scores, T-scores, standard nine, percent in stanine (Photo credit: Wikipedia)


From Your Financial Statements in Worldscope you will need the following values:        

  • Earnings before taxes
  • Total assets
  • Net Sales
  • Market Value of Equity
  • Total Liabilities
  • Working Capital (Current Assets minus Current Liabilities)
  • Retained Earnings 


The Altman z-Score was developed by Professor Edward Altman as part of his dissertation research. He analyzed 66 manufacturing firms; 33 were bankrupt manufacturing firms. He wanted to determine if he could have predicted the bankruptcy using ratio analysis.

We use the Z-Score to analyze the firm’s financial viability over time compared to their primary rivals. The link to this worksheet will calculate the Z-Score for your company; to evaluate the firm’s fiscal health.

Follow this link to compute the Z-Score:

Ratio Analysis 101 from


Asset/Liability Ratio

Asset/Liability Ratio (Photo credit: Wikipedia)

Stock market of Brussels

Stock market of Brussels (Photo credit: Wikipedia)

Asset/Liability Ratio

Asset/Liability Ratio (Photo credit: Wikipedia)

Understanding Financial Leverage

Understanding Financial Leverage (Photo credit: Wikipedia)

English: Diagram of DuPont analysis of return ...

English: Diagram of DuPont analysis of return on equity. ‪Norsk (bokmål)‬: Diagram over DuPont-analyse av kapitalrentabilitet. (Photo credit: Wikipedia)

ROI Treiberbaum Du Pont

ROI Treiberbaum Du Pont (Photo credit: Wikipedia)

Understanding Financial Leverage

Understanding Financial Leverage (Photo credit: Wikipedia)


Click on this pin from Investopedia:

This pin will lead you to my “Financial Ratio” Pinterest Board

Where you will find this tutorial:

It explains every ratio that we have discussed in this class.

“A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise’s financial statements. Often used in accounting, there are many ratios that are used to evaluate the overall financial condition of a corporation or other organization.”

Many stakeholders are interested in financial ratios: managers, shareholders (owners)  and a firm’s creditors.

Watch this video for review:

Here is the Financial Report that Investopedia is using for the calculations in the Tutorial:

Fundamental analysis has a very broad scope. One aspect looks at the general (qualitative) factors of a company. The other side considers tangible and measurable factors (quantitative). This means crunching and analyzing numbers from the financial statements. If used in conjunction with other methods, quantitative analysis can produce excellent results.

Ratio analysis isn’t just comparing different numbers from the balance sheet, income statement and cash flow statement. It’s comparing the number against previous years, other companies, the industry or even the economy in general. Ratios look at the relationships between individual values and relate them to how a company has performed in the past, and how it might perform in the future.

For example, current assets alone don’t tell us a whole lot, but when we divide them by current liabilities we are able to determine whether the company has enough money to cover short-term debts.
Comparing these ratios against numbers from previous years, other companies, industry averages and the economy in general can tell you a lot about where a company might be headed. Valuing a company is no easy task. This tutorial will shed some light on how it can be done and, ultimately, help you to make more informed choices as an investor.

There is a lot to be said for valuing a company, it is no easy task. If you have yet to discover this goldmine, the satisfaction one gets from tearing apart a companies financial statements and analyzing it on a whole different level is great – especially if you make or save yourself money for your efforts.
Here is a list of 19 basic fundamental analysis ratios to help you get started. You have these formulas in your textbook.

The basic ratio categories include:


The Ratios:

Performance Activity
Book Value Per Common Share Asset Turnover
Cash Return On Assets Average Collection Period
Vertical Analysis Inventory Turnover
Dividend Payout Ratio Financing
Earnings Per Share Debt Ratio
Gross Profit Margin Debt / Equity Ratio
Price/Earnings Ratio Liquidity Warnings
Profit Margin Acid-Test Ratio
Return on Assets Interest Coverage
Return on Equity Working Capital

Taken directly from the website


Profitability Ratios


1. Gross profit margin

Sales – Cost of goods sold/Sales

Shows the percentage of revenues available to cover

operating expenses and yield a profit. Higher is better

and the trend should be upward.

2. Operating profit margin (or return on sales)

Sales – Operating expenses/Sales


Operating income/Sales

Shows the profitability of current operations without

regard to interest charges and income taxes. Higher is

better and the trend should be upward.

3. Net profit margin (or net return on sales)

Profits after taxes/Sales

Shows after-tax profi ts per dollar of sales. Higher is

better and the trend should be upward.

4. Total return on assets

Profits after taxes + Interest/Total assets

A measure of the return on total monetary investment

in the enterprise. Interest is added to after-tax profits to

form the numerator since total assets are financed by

creditors as well as by stockholders. Higher is better and

the trend should be upward.

5. Net return on total assets (ROA)

Profits after taxes/Total assets

A measure of the return earned by stockholders on the

fi rm’s total assets. Higher is better, and the trend should

be upward.

6. Return on stockholder’s equity (ROE)

Profits after taxes/Total stockholders’ equity

Shows the return stockholders are earning on their

capital investment in the enterprise. A return in the

12–15% range is “average,” and the trend should be


7. Return on invested capital (ROIC)—

sometimes referred to as return on capital employed (ROCE)

Profits after taxes/Long-term debt plus total stockholders’ equity


A measure of the return shareholders are earning

on the long-term monetary capital invested in the

enterprise. A higher return refl ects greater bottom-line

effectiveness in the use of long-term capital, and the

trend should be upward.

8. Earnings per share (EPS)

Profits after taxes/Number of shares of common stock outstanding

Shows the earnings for each share of common stock

outstanding. The trend should be upward, and the

bigger the annual percentage gains, the better.


Liquidity Ratios


1. Current ratio

Current assets/Current liabilities

Shows a firm’s ability to pay current liabilities using

assets that can be converted to cash in the near term.

Ratio should definitely be higher than 1.0; ratios of 2 or

higher are better still.

2. Working capital

Current assets minus Current Liabilities


Bigger amounts are better because the company hasmore internal funds available to

(1) pay its current liabilities on a timely basis and

(2) finance inventory expansion, additional accounts receivable, and a larger

base of operations without resorting to borrowing or

raising more equity capital.


Leverage Ratios


1. Total debt-to-assets ratio

Total debt/Total assets

Measures the extent to which borrowed funds have

been used to finance the firm’s operations. Low

fractions or ratios are better—high fractions indicate

overuse of debt and greater risk of bankruptcy.

2. Long-term debt-to-capital Ratio

Long-term debt/Long-term debt plus Total stockholders’ equity

An important measure of creditworthiness and balance

sheet strength. Indicates the percentage of capital

investment which has been fi nanced by creditors and

bondholders. Fractions or ratios below .25 or 25% are

usually quite satisfactory since monies invested by stockholders

account for 75% or more of the company’s total capital.

The lower the ratio, the greater the capacity to borrow additional funds.

Debt-to-capital ratios above 50% and certainly above 75% indicate a heavy and

perhaps excessive reliance on debt, lower creditworthiness, and weak balance sheet


3. Debt-to-equity ratio

Total debt/Total stockholders’ equity

Should usually be less than 1.0. High ratios

(especially above 1.0) signal excessive debt, lower

creditworthiness, and weaker balance sheet strength.

4. Long-term debt-to-equity


Long-term debt/Total stockholders’ equity

Shows the balance between debt and equity in the

firm’s long term capital structure. Low ratios indicate

greater capacity to borrow additional funds if needed.

4. Times-interest-earned

(or coverage) ratio

Operating income/Interest expenses

Measures the ability to pay annual interest charges.

Lenders usually insist on a minimum ratio of 2.0, but

ratios above 3.0 signal better creditworthiness.

Activity Ratios

1. Days of inventory

Inventory/Cost of goods sold divided by 365


Measures inventory management efficiency. Fewer days

of inventory are usually better.

2. Inventory turnover

Cost of goods sold/Inventory

Measures the number of inventory turns per year.

Higher is better.

3. Average Collection Period

Accounts receivable/Total sales revenues ÷ 365


Accounts receivable/Average daily sales

Indicates the average length of time the fi rm must wait

after making a sale to receive cash payment. A shorter

collection time is better.

Other Important Measures of Financial Performance

1. Dividend yield on

common stock

Annual dividends per share/Current market price per share

A measure of the return that shareholders receive in

the form of dividends. A “typical” dividend yield is 2–3%.

The dividend yield for fast-growth companies is often

below 1% (maybe even 0); the dividend yield for slowgrowth

companies can run 4–5%.

2. Price-earnings ratio

Current market price per share/Earnings per share

P-E ratios above 20 indicate strong investor confi dence

in a fi rm’s outlook and earnings growth; fi rms whose

future earnings are at risk or likely to grow slowly

typically have ratios below 12.

3. Dividend payout ratio

Annual dividends per share/Earnings per share

Indicates the percentage of after-tax profits paid cut as


4. Internal cash flow

After tax profits plus depreciation


A quick and rough estimate of the cash the business is generating after payment of operating expenses, interest, and taxes.

Such amounts can be used for dividend payments or funding capital expenditures.

5. Free cash flow

After tax profits plus depreciation minus capital expenditures minus dividends


A quick and rough estimate of the cash a company’s

business is generating after payment of operating

expenses, interest, taxes, dividends, and desirable

reinvestments in the business. The larger a company’s

free cash fl ow, the greater is its ability to internally

fund new strategic initiatives, repay debt, make new

acquisitions, repurchase shares of stock, or increase

dividend payments.



MBA Project Template for Strategic Management


Swot analysis image

Swot analysis image (Photo credit: Wikipedia)

SWOT analysis diagram in English language. Fra...

SWOT analysis diagram in English language. Français : Matrice SWOT en anglais. (Photo credit: Wikipedia)

GUIDELINES FOR CASE ANALYSIS: Project Template. You must complete the entire document to get full credit.

These Documents are in Your Syllabus



I.    DIAGNOSIS – Current situation: summary of factors that have contributed to the present status: Check the Company Profile for an Overview in the Library Databases


A.   Mission


B.   Objectives: Remember these are SMART!


C.   Corporate Strategy including: Backward and Forward Integration, Market and Product Development, Aquisitions and Joint Ventures…


D.   Policies (Look on Company Website)

1.  Diversity

2.  Ethical Standards/code of Conduct

3.  Suppliers

4.  HR


E.    Strategic Managers and Board (lOOK ON EBSCO AND GET PICTURES FROM THE WEBSITE)


1.  Sr. Level Executives

2.  Corporate governance

a.  Responsibilities

b.  Board Committees

c.  Director Compensation


F.    Generic Industry Type:

1.  Fragmented, Maturing, Energizing, Declining



F. Generic Industry Type Template: USE THE LIBRARY DATABASES FOR THIS TABLE: IBIS for the domestic industry and EBSCO for the Global Industry


Industry    definition
Market    size and growth rate
Key    rivals & market share
Scope of    competitive rivalry
Concentration    vs. fragmentation
Number of    buyers
Demand    determinants
Degree of    product differentiation
Product    innovation
Key    success factors
Supply/demand    conditions



Analysis    of stage in life cycle
Pace of    technological change
Vertical    integration
Economies    of scale
Learning/experience    curve effects
Barriers    to entry






G.   Organization Structure:


1.     Type—functional, divisional, matrix, SBU


2.      Advantages and Disadvantages of the specific structure


H.   Financial Analysis / Altman &  DuPont & Tobin’s Q

1.  Graphs for liquitiy, profitability, activity and leverage ratios discussed in class and listed on the Worldscope database. Three years for your company and your two key competitiors.

2.  Altman Z Score

3.  Tobin’s Q

4.  DuPont Analysis


I.     Stock Analysis: one year and Max Graph from Yahoo Finance including major competitors. Discuss your results.


J.     SWOT Analysis (See Handout) and Convert to a TOWS Matrix


1.               Internal (strengths, weaknesses)


2.               External (Opportunities, Threats)




II.        FOCAL POINTS FOR ACTION: Identify problems & issues that need to be resolved. Look at the Risk Factors in the 10K for Guidance.


A.              Short Range


B.              Long Range




III.       DEVELOP ALTERNATIVES:  Equate to strategy types corporate/business.


A.   Consider Generic Industry Type & Industry Characteristics


B.    Boston Consulting Group Matrix-Build/hold/harvest/ divest


C.    Competitive Position-Leader/Challenger/ Follower/Nicher


D.    Competitive Strategy Options-Overall low cost leader-ship/differentiation/ focus


E.     Appraise each alternative/overall org. impact using Rumelt’s criteria-consistency/ consonance/advantage/ feasibility




Choose the best strategic alternative for each level: Use the Baldrige Criteria for Ideas. Format should be: Goals, Participants and Steps


A.              Corporate


B.              Business


C.              Functional




V.        IMPLEMENTATION: Goals/Participants/Steps (10K Management Discussion)

A.              Who will implement strategy?


B.              How will the strategy achieve organization wide commitment?


C.              Are structuring mechanism properly aligned?


D.              Are functional area conflicts reconciled to strategy requirements?


E.               Does leadership inspire commitment to strategy?


F.               Do reward systems reinforce appropriate behavior?


G.              Are functional issues addressed and resolved in implementation?


H.              Is the strategy communicated properly?


Foreign Currency 101: The FOREX Market


English: Exchange rates for Malawi Kwacha post...

English: Exchange rates for Malawi Kwacha posted by a currency trader in Lilongwe on October 7, 2008. (Photo credit: Wikipedia)

Exchange Money Conversion to Foreign Currency

Exchange Money Conversion to Foreign Currency (Photo credit:

English: United States dollar in Japanese yen ...

English: United States dollar in Japanese yen currency exchange rates for the interval 2008/10/03 – 2008/10/24. Magyar: Amerikai Dollár – Japán Yen valutaárfolyamok a 2008/10/03 – 2008/10/24 időszakra. (Photo credit: Wikipedia)


Forex-sm (Photo credit: Wikipedia)

International Currency Money for Forex Trading

International Currency Money for Forex Trading (Photo credit:

English: Diagram of uncovered interest arbitra...

English: Diagram of uncovered interest arbitrage in the foreign exchange market. (Photo credit: Wikipedia)

English: Foreign Exchange Rate (1981/1-1990/12...

English: Foreign Exchange Rate (1981/1-1990/12), DEM/USD, FRF/USD, GBP/USD, JPY/USD (Photo credit: Wikipedia)

Self Portrait / Exchange Rates

Self Portrait / Exchange Rates (Photo credit: Dominic’s pics)

The foreign exchange market (forex, FX) is a global decentralized market for the trading of currencies.

Some of the key components of international financial markets include: the international bond, equity, and Eurocurrency markets. Managers must understand the fundamentals of exchange rates and how the foreign exchange market is structured. They must understand the roles of government and international institutions in managing movements in exchange rates.


1. The main participants in this market are the larger international banks.

2. Financial centers around the world function as anchors of trading between buyers and sellers.

3. The foreign exchange market determines the relative values of different currencies around the world.

Here’s my Foreign Currency Pinterest Board

The forex market is essentially governed by the laws of supply and demand In terms of foreign currency, the terms strengthening and weakening; rising and falling are relative terms in the world of Forex. Changes in currency values can have a dramatic impact on trade flows.

Exchange rates display, seen at Suvarnabhumi I...

Exchange rates display, seen at Suvarnabhumi International Airport, Thailand (Photo credit: Wikipedia)

1. A stronger dollar will buy more units of foreign currency which may make a foreign vacation more attractive or the foreign stocks and bonds more affordable.

2. Although US consumers will benefit from a stronger dollar, US exporters will be hurt because US goods and services become more expensive to foreigners.

3. A weaker dollar means prices for US products and services will fall in foreign markets so they will buy more from the US and more foreign tourists and afford to visit.




Image used to convey the idea of currency conv...

Image used to convey the idea of currency conversion (originally from en.wikipedia). The signs are (clockwise from top-left): dollar, euro, pound, shekel, đồng, yen. (Photo credit: Wikipedia)

These factors may contribute to a stronger currency:

*Higher interest rates in the home country than abroad

*Lower inflation rates

*A domestic trade surplus

*Political or Military unrest outside the home country

Watch this Forex Video

Click on this infographic

Visit this currency conversion site:

Investors use the FOREX market for four primary reasons:

1. Currency conversion

2. Currency hedging

3. Currency arbitrage

4. Currency speculation

There are spot rates and forward rates.

Watch this short Currency video:

Here’s a FOREX Tutorial:


In the FOREIGN EXCHANGE MARKET, currencies are bought and sold. Currency prices are determined. Exchange rates are the rate at which one currency will be exchanged for another currency; it is a reflection of the size of the transaction, the trader, general economic conditions, and sometimes government intervention.

English: Graph showing JPY's Real Effective Ex...

English: Graph showing JPY’s Real Effective Exchange Rates (REER) from January, 1970. 2005 = 100. 日本語: 1970年1月からの実質実効為替レート。2005年=100。数字が大きいほど円高。 (Photo credit: Wikipedia)

“For example, an interbank exchange rate of 91 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥91 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥91.”

1. The spot exchange rate refers to the current exchange rate; an exchange rate that requires delivery of a traded currency within two business days. The spot market helps companies to:

  • Convert income from sales abroad into the home-country currency.
  • Convert funds into the currency of an international supplier.
  • Convert funds into the currency of a country in which it will invest.
Best Money Exchange Rate for Cash

Best Money Exchange Rate for Cash (Photo credit:


2. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.Forward Rates are exchange rates whereby two parties agree to exchange currencies on a specified future date. Represent traders’ and bankers’ expectations of a currency’s future spot rate. Used to insure against unfavorable changes in exchange rates. Forward Contracts requires the exchange of an agreed-upon amount of a currency on an agreed-upon date at a specific exchange rate. They belong to a family of financial instruments known as derivatives. Forward contracts are commonly signed for 30, 90, and 180 days into the future, but customized contracts are also possible.

There are 2 components to every quoted exchange rate: the quoted currency and the base currency. In (¥/$), the yen is the quoted currency, the dollar is the base currency. The quoted currency is always the numerator, and the base currency is always the denominator.

For example, if the British pound is quoted in U.S. dollars at $1.5054, the bank may bid $1.5052 to buy British pounds and offer to sell them at $1.5056. The difference is the bid-ask spread; banks buy low and sell high, earning profits from the bid-ask spread.

Companies use the foreign exchange market to convert currencies. They engage in Currency Hedging which attempts to insure against potential losses that result from adverse changes in exchange rates. Companies use it to: (1) lessen the risk of international transfers; and (2) reduce exposure in transactions where a time lag exists between billing and receipt of payment.

Currency Arbitrage involves the instantaneous purchase and sale of a currency in different markets for profit. Common among experienced foreign exchange traders, large investors, and firms in arbitrage business.

Currency Speculation is the purchase or sale of a currency with the expectation that its value will change and generate a profit. It is much riskier than arbitrage because the value, or price, of currencies is quite volatile.

Cross Rates are used to access to the exchange rate between two nation’s currencies. Cross rates can be calculated using either currency’s indirect or direct exchange rates with another currency.

Swaps, Options, and Futures are also used in the forward market. A Currency Swap is the simultaneous purchase and sale of foreign exchange for two different dates. It is frequently used to reduce exchange-rate risk and lock in a future exchange rate.

A Currency Option is the Right, or option, to exchange a specific amount of a currency on a specific date at a specific rate. It is used to hedge against exchange-rate risk or obtain foreign currency at a favorable rate.

A Currency Futures Contract requires the exchange of a specific amount of currency on a specific date at a specific exchange rate, with all conditions fixed and not adjustable.

Company Database Research: Week One Overview


English: Sample Company Profile

English: Sample Company Profile (Photo credit: Wikipedia)

Seal of the U.S. Securities and Exchange Commi...

Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)


LexisNexis (Photo credit: Wikipedia)

Go to Lewis Library database Lexis Nexis

Go to “Company Profile”

Type in Company name

Find Company Profile

Then search in Worldscope database for your company

Go to Financial Section of the Worldscope Database to locate company financial information.

Use this information or your Financial Analysis

Create financial graphs for your project

Go to Ebsco Database: Company Profile and search table of contents for Financial Performance

Enter info into your project

Securities and Exchange Commission EDGAR

Database (contains company 10-Ks, 10-Qs, etc.)

Always explore the “Investor Relations” section of the company’s website. There will be plenty of helpful information.


Google Finance

CNN Money

Hoover’s Online

The Wall Street Journal Interactive Edition

Bloomberg Businessweek and


Country Report Template for International Business Homework



Here’s my Pinterest Board on Country Reports:


You have studied the Globalization of Markets. Globalization affects international business activities, industries, and products differently. Some companies market an identical product worldwide, whereas others must adjust marketing strategies across national markets. Globalization has some common characteristics:

  1. Convergence in buyer preferences in markets around the world
    1. Reduces marketing costs by standardizing activities
    2. Creates market opportunities abroad if home is small or saturated
    3. Levels uneven income streams for global seasonal products
    4. Yet companies must not overlook buyers’ needs
    5. Need for global sustainability—development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

2. The world’s 7 billion people live in three types of markets, yet all require companies to act in a sustainable manner:

a.   Developed markets are solidly middle class and people can consume almost any product desired. A firm may use the latest technologies to develop sustainable products in a sustainable manner.

b.  Emerging markets are racing to catch up to rich nations and are overloading infrastructures. Resource constraints can force companies to develop sustainable production methods.

c.  Traditional markets have mostly rural populations for whom poverty and corruption prevail. Here, sustainability means teaching safe farming practices, environmental stewardship, and disease awareness.

3.         Globalization of Production: Dispersal of production activities to locations that help a company to minimize costs or maximize quality

  1. Access lower-cost workers to cut overall production costs
  2. Access technical expertise
  3. Access production inputs unavailable or more costly at home

Conduct Country Research by completing this table:

1. Size and Society



population growth

2. Living Standards

life expectancy

infant mortality

education spending

health spending

3. The Economy


economic growth

major imports

major export

inflation rates

unemployment rates

4. Arms, Energy and Tourism

defense spending

tourism receipts

energy use

5. Largest Multinational Corporations and Key Global Competitors in the respective Industries

6. Government

system and main political parties


Use these websites:

and using the WORLD FACTBOOK




International Human Resource Staffing


Management of Complexity

Management of Complexity (Photo credit: michael.heiss)

English: Newly industrialized countries

English: Newly industrialized countries (Photo credit: Wikipedia)

English: Information_Resource_Management_Strategy

English: Information_Resource_Management_Strategy (Photo credit: Wikipedia)

Human resource management (HRM) is the process of staffing a company designed to maximize employee performance and productivity. Managers must engage in many activities including: recruiting, selecting, training, developing, evaluating, and compensating employees.

International HRM managers must consider differences in national business environments.

Expatriates are citizens of one country who are living and working in another country.

Culture is central to the discussion of how international companies manage their employees. Training and development programs and recruitment and selection practices must often be tailored to local practices.

English: Nr. of employees within the Swedish s...

English: Nr. of employees within the Swedish staffing agency business. Svenska: Antalet årsanställda inom bemanningsbranschen i Sverige. (Photo credit: Wikipedia)

There are three basic issues or approaches to consider when making decisions about international human resource staffing. Each approach has advantages as well as disadvantages.

Ethnocentric Staffing involves individuals from the home country managing operations abroad. This is attractive to companies that want control over decision making in foreign offices. Firms generally pursue this policy for top managerial posts in their international operations.

There are many advantages associated with Ethnocentric Staffing. There may be a shortage of locally qualified people. Companies frequently use ethnocentric staffing to re-create operations in the image of home-country operations. Expatriate managers infuse branch offices with the corporate culture. Companies that operate in highly nationalistic who are worried about industrial espionage prefer an ethnocentric approach.

There are also disadvantages of Ethnocentric Staffing.The Human Resource

Relocating managers from the home country is expensive; bonuses for relocating, plus relocation expenses for families, increase the cost of a manager. Home-country managers in the host country encourage a “foreign” image of the business; lower-level employees feel that managers do not understand their needs. Expatriate managers may not overcome cultural barriers.

Polycentric Staffing deploys individuals from the host country to manage operations abroad. This staffing policy is well-suited to companies that want to offer more autonomy in decision making to host-country managers. Large international companies conduct extensive training programs for host-country managers. They visit home offices for extended periods of time and are exposed to the company’s culture and business practices.

There are many advantages associated with Polycentric Staffing: managerial responsibility in the hands of people familiar with the local business environment who have a deep cultural understanding of the local market. This approach eliminates the high cost of relocating expatriate managers and families. This may not be the best approach for a firm pursuing a global strategy. There may be a lack of integration, knowledge sharing, and these factors could negatively affect performance.

Geocentric Staffing involves placing the best-qualified individuals, regardless of nationality, in charge of operations abroad. The local manager is from the host country, from the home country, or from a third country, depending on specific needs. Reserved for top-level managers. This approach develops global managers who have the ability to excel in any business environment. The main drawback is cost because there is high demand for people with these specialized skills and their short supply allows them to command huge salaries.


Knowledge Management Cafe

Knowledge Management Cafe (Photo credit: Emilie Ogez)



In conclusion, these are the basic forms of staffing international operations.

1. Ethnocentric Staffing: people from the home country manage operations abroad.

2. Polycentric Staffing: people from the host country manage operations abroad.

3. Geocentric Staffing: the best qualified individuals regardless of their origin, manage operations abroad.

Recruiting, selecting employees, training and compensation issues must be carefully considered internationally.


Widgets and Plug-ins Drive Traffic to Your Site and Enhance your Social Media Reputation and Prominence: Lesson #13


English: The logo of the blogging software Wor...

English: The logo of the blogging software WordPress. Deutsch: WordPress Logo 中文: WordPress Logo (Photo credit: Wikipedia)


Twitter (Photo credit: Wikipedia)

A widget provides a visual interaction point for manipulation of data. Adding widgets to your site will drive traffic to your site and enhance your Social Media efforts and Digital Reputation. “Sharing” widgets that I have added to my posts include: Twitter, Digg, Facebook, Google Plus, LinkedIn and StumbleUpon. This activity allows readers to share my posts with their digital network. This is a great way to engage learners, promote a business and enhance your digital reputation.

Image representing delicious as depicted in Cr...

Image via CrunchBase


Here are some widgets. You can find the code for specific widgets by doing a Goole Search: For example type in “Follow Friday Widget

Here’s a FollowFriday widget:

Here’s a Twitter Badge:

Twitter Badge A Twitter Badge will help you get more followers.

Add these features to the side bar of your blog’s main column. This content will allow your readers to get your latest Twitter updates or your RSS Feed from other websites. I like to send followers to my Pinterest Boards.

Groupon uses widgets to help merchants design customized online offers. Payscale provides a library of widgets that help website builders add salary calculators and cost of living indexes.

Follow these directions from WordPress to enhance your WordPress site with widgets:

1. To activate a widget, go to Appearance > Widgets in your dashboard. Drag the desired widget over to the Sidebar module on the right. Be sure to hit save and close when you’re done editing a widget’s settings.

2. First, write a title for the post in the space at the top. Think of your post title as a headline for a news article — the more detailed and captivating it is, the more readers it’s going to attract. Since this is just a test post, keep it short and sweet.

3. Add Facebook send and like buttons so people can easily share your content to their Facebook page

4. Optimize your business-related “LinkedIn” Contacts by adding the LinkedIn button to your WordPress sidebar.

5. Generate a Pinterest Widget on your page by “Building It” from your Pinterest Profile. Then copy and paste the code into Your Textbox on WordPress.

6. Here are some of the extra widgets that you can drop and drag into your dashboard and add to your posts:







Add the Zemanta Plug-in to your site for pictures and related articles. Go to Plug-ins in your dashboard.

Create a Barcode For Your Resume: Lesson #12


English: Line art drawing of a barcode. França...

English: Line art drawing of a barcode. Français : Dessin d’un code-barres. Suomi: Viivakoodi. (Photo credit: Wikipedia)

Barcode Of Me

Barcode Of Me (Photo credit: Purple_Mecha)

You can create a bar code that takes you to any website you want when you scan it using your smart phone or tablet. Here is a website link that you could use to create the bar code, You will have to chose Mobile Tagging bar code from the selections.

Before you create a barcode, you actually need a resume and cover letter. You may want to consider some of the Google templates:


Here’s an example of a creative resume:

custom barcodes

custom barcodes (Photo credit: vaXzine)


In point-of-sale management, barcode systems can provide detailed up-to-date information on the business, accelerating decisions and with more confidence. For example:

  • Fast-selling items can be identified quickly and automatically reordered.
  • Slow-selling items can be identified, preventing inventory build-up.
  • The effects of merchandising changes can be monitored, allowing fast-moving, more profitable items to occupy the best space,
  • Historical data can be used to predict seasonal fluctuations very accurately.
  • Items may be repriced on the shelf to reflect both sale prices and price increases.
  • This technology also enables the profiling of individual consumers, typically through a voluntary registration of discount cards. While pitched as a benefit to the consumer, this practice is considered to be potentially dangerous by privacy advocates.

    A bar code encoding the word "Wikipedia&q...

    A bar code encoding the word “Wikipedia” in Code 128 (Photo credit: Wikipedia)

Besides sales and inventory tracking, barcodes are very useful in logistics.

  • When a manufacturer packs a box for shipment, a Unique Identifying Number (UID) can be assigned to the box.
  • A database can link the UID to relevant information about the box; such as order number, items packed, qty packed, destination, etc.
  • The information can be transmitted through a communication system such as Electronic Data Interchange (EDI) so the retailer has the information about a shipment before it arrives.
  • Shipments that are sent to a Distribution Center (DC) are tracked before forwarding. When the shipment reaches its final destination, the UID gets scanned, so the store knows the shipment’s source, contents, and cost.

Barcode scanners are relatively low cost and extremely accurate compared to key-entry, with only about 1 substitution error in 15,000 to 36 trillion characters entered. The exact error rate depends on the type of barcode.


Optimize SEO with YouTube Videos: Social Media Lesson #11


English: A graph to show the increse in subsci...

English: A graph to show the increse in subscibers on YouTube to Anonymous’ videos. All dates indicated on the graph are 2008 (Photo credit: Wikipedia)

English: The three biggest web search engines

English: The three biggest web search engines (Photo credit: Wikipedia)

SEO stands for Search Engine Optimization. Effective SEO strategies will help your site rank higher and more accurately in search engines, like Google. If I write about travel in Italy, I want my posts to rank high in the search results. When someone searches for Italy Travel Guides, I want my blog to rank on the first page of the search engine site.

The ultimate goal of SEO is to increase your website’s SERP (Search Engine Results Page) ranking.You can optimize SEO with YouTube videos. Creating and publishing videos will help enhance your social media reputation. You will enhance SEO efforts, reach more people with videos and drive traffic to your website when you create and upload videos into your posts.

Here’s a San Diego Video that I created using Google Picassa: I can check my “Insights” to monitor the traffic

YouTube is a very popular search engine. I like to integrate videos or photo slide sharing into my blog posts. Go to for information

or to set up a free account.

Image representing Stupeflix as depicted in Cr...

Image via CrunchBase

When you log into YouTube you will see many options for creating videos. Pick an option and click on the “Create Video” button. I like to use the Stupeflix option or the “One Media” option for my photo slide shows. If you have an iPad 2, it’s easy to video and send it to YouTube immediately.


youtube (Photo credit: Sean MacEntee)

After you load your photos, you will select some music from the music menu. Make sure that the song is long enough in duration to match the video.

Videos serve as effective linkbait; they will generate more links and more traffic for your site. They will bolster your ranking with search engines.  Check out YouTube’s most popular videos to see what makes them so popular. Oftentimes, the video is funny or teaches a meaningful lesson like our WordPress Tutorials. Watch this very helpful SEO video so you can effectively tag your videos.

Here’s an interesting video about page rank:

To optimize the video, follow these rules initially:

1. Create a sexy title

2. Keep it short

3. Tag the video to enhance SEO

4. Use the word “Video” in the Title.

5. Optimize the introduction, description and comments.

6. When you embed the video in your blog, make sure it has words (text) around it so the search engines can find the tags.

7. You can do an “audio swap” on YouTube if you don’t like the music.

8. Publish your video on YouTube. Then follow the WordPress instructions for embedding your video in your blog. Make sure that you create your own YouTube Channel. Monitor the “Insight” stats on YouTube to find out how your channel is doing.

9. You will need the URL of your video to embed it on your blog. Copy the complete YouTube URL from the address bar and follow the WordPress instructions. It is also helpful to use to create a free press release about your new video feature.

You can subscribe to other YouTube Channels via RSS Feed and add it to your reader. For example

You can embed the video in YouTube by following these steps:

1. Go to and click on your video.

2. When your video starts to play click on the “Share” button under the video.

3. Click on the “Embed” button and Copy the “code”.

4. Click on the Facebook Share Logo or the Twitter Logo and add the video to your Facebook “Home” tab and to your Twitter Followers.



Twitter Tips for Beginners: Social Media Lesson #6



Twitter (Photo credit: Wikipedia)

English: A pie chart created in Excel 2007 sho...

English: A pie chart created in Excel 2007 showing the content of tweets on Twitter, based on the data gathered by Pear Analytics in 2009. (Photo credit: Wikipedia)

Free twitter badge

Free twitter badge (Photo credit: Wikipedia)

The growth of the Internet has catapulted our society into a digital global village.Twitter allows us to follow our passions and communicate in a very efficient and effective way through microblogging. If you are an “information junkie” like me, you will be very fond of Twitter.

Here are some Twitter Tips:

We generate sub-cultures and niches in the Twitter-sphere. Twitter is the most popular microblogging platform.  If you create a tiny URL for your blog post, it is easy to send it to Twitter so your followers can read it and hopefully retweet it.  Twitter only allows 140 characters so use your words carefully. Remember to use hashtags with your tweets. You can easily set up an automated Tweet to your Facebook page. You will also have an opportunity to Retweet your favorite blog posts. You can check my Twitter stream @vino_con_vista to see a history of my blog posts and tweets.


English: The content of tweets on Twitter, bas...

English: The content of tweets on Twitter, based on the data gathered by Pear Analytics in 2009. (Photo credit: Wikipedia)

1. Pick a user name that includes the keyword that you want to use to identify yourself in the Twitter Sphere; I picked @SocialMediaEvie. Your Twitter “Handle” could just be your name if you prefer.

twitter logo map 09

twitter logo map 09 (Photo credit: The Next Web)

2. Add your website “vanity” URL ( to your profile on Twitter. You can grab a Twitter Follower Widget while you are filling out your profile on Twitter.

3. Tag your Twitter. Profile photo for SEO using Picasa. Rename the photo before you upload it. Click on “Settings” and the “Picture”.

4. Use an RSS feed for Twitter so your followers can subscribe to our Tweets. I have the Twitter widget installed on this web page. Use RSS feeds with your blog to increase your popularity with Search engines. Go to Feedburner and sign up with your Google account. I have an RSS feed on my computer using Twitter #Hashtags: #SEO and #SocialMedia.

English: Twitter headquarters at 795 Folsom St...

English: Twitter headquarters at 795 Folsom Street, San Francisco (Photo credit: Wikipedia)

5. Find some quality people and companies to follow on Twitter. Think about Twitter as a digital cocktail party. Who do you want to meet? Who do you want to work for? Who do you want to learn from? These are the groups/people who will send you timely information; hopefully, they will follow you back. Google has a handy tutorial on how to use Google search commands to find Twitter users here.

  • this works well for finding your friends, celebrities, or organizations. Search for specific topics you’re interested in. In the search box, I like to do a #Hashtag search by #SocialMedia or #Chicago or #Rome or #Italy; those are my favorites. Try it and see the results for yourself.

6.  Make sure that your tweets contains keywords and phrases that you want search engines to pick up. Also, make sure to use #hashtags in your tweets but do not use more than 3. When you send a tiny URL to Twitter, give your post a compelling headline with a #hashtag included.

7.  Twitter Favorites with Keywords: Make sure that some of your favorite tweets contain keywords, key phrases and relevant links. Your Favorites will serve as a receptacle for things you want to save.

8. your links from your blog post. By Using a shortener like Tinyurl, search engines will recognize the link and rank them.

9.  Become a Twitter Evangelist! Make sure that you are submitting your Twitter profile and RSS feeds to directories to enhance your SEO efforts. Also, be sure to add your Twitter user name in blog posts and forums to bolster your brand recognition. Put you Twitter @user name on your business card.

10. Generate a Bio using your keywords. I used “Social Media” in my Bio. You only have 160 characters to describe yourself. Use words that maximize search value.

11. Compile a list of Twitter users that you want to follow. Hopefully, some of them will follow you back. Look at the people your followers are following. Use to search a variety of criteria or Check the Twitter suggestions on “Who to Follow” on a regular basis. “Tweetdeck Directory” and “Listorious” for directories of Twitter users.

12. Promote your blog posts through your Twitter account.

13. Communicate the nature of the post using social media hashtags. This is your Headline!

14. Build reputation and brand with interesting and engaging Tweets. Use Infographics to capture your audience. Use pictures and graphics above the fold of your blog post. When you Tweet them, they will grab your followers attention.

15. Be courteous and remember to promote other social networking sites with interesting content  by re-Tweeting. Maybe someone will offer you an incoming link. This is a technical relationship that is created from the WordPress toolbar. I will discuss this in more detail in class.

16. Interact and network at local events, conferences and Meetups. Bring plenty of business cards with your vanity URL, vanity email address, LinkedIn and Twitter addresses.

17. Monitor your followers and delete spammers. Check your twitter statistics to measure your influence. You can install the same widget on your site that I have added in my sidebar.

18. Check your Klout score.

19. Check your “Mentions” and “Retweet” stats and thank followers for mentions and retweets.

21. Create a Twitter Newpaper @ I created the Social Media Daily and the Social Media Weekly.

20. I found this “Cheat Sheet” for Twitter RSS feeds:

  • Academic librarian Valerie Forrestal has documented a simple way to score RSS feeds for any Twitter search result, i.e. for hashtags. Following her cheat sheet, we see that it’s simple matter of plugging in the search keyword into this formula:
  • Replace the bold “hashtag” with your own keyword, drop this URL into an RSS reader, and you’ve got yourself a continuous RSS feed of that hashtag. For example, to follow the #SocialMedia stream, this is the URL you need:
  • The “%23″ takes care of the actual hash (pound sign), so you don’t need to include an “#” in the URL.
  • Despite Twitter seemingly eliminating RSS feeds for hashtags, it’s that easy!

Look up :Twitter Blackbird Pie and see if you want to use it. Now you can all become my official “Tweety Sweeties”!

Dr. EveAnn Lovero has a Travel Website @




Market Classification MindMap for International Business



MindMap for Market Classification for International Business

Oral Presentation Tips from Steve Jobs



Watch this video to learn about engaging Oral Presentations from Steve Jobs, former CEO of Apple.

Mind Maps and Infographics Convey Information Visually: Social Media Lesson #5


Mind map of the mind map guidlines.

Mind map of the mind map guidlines. (Photo credit: Wikipedia)

Mind maps can be used to convey information visually.  A mind map is a diagram used to represent words, ideas, tasks, or other items linked to and arranged around a central key word or idea.They can generate, visualize, structure, and classify ideas, and as an aid to studying and organizing information, solving problems, making decisions, and writing.

In my “Wonderful World of Strategic Management” Post, I inserted links to some of my mindmaps.

Check out my “MindMap” Pinterest board for examples of Mindmaps. Use a Mindmap to understand how informations flow. It can be used for brainstorming and summarizing information.

Mind-map showing a wide range of nonhierarchic...

Mind-map showing a wide range of nonhierarchical relationships (Photo credit: Wikipedia)

The elements of a given mind map are arranged intuitively according to the importance of the concepts. They are classified into groupings, branches, or areas; that are similar to an organization chart. The ultimate goal is to represent connections between ideas or information. Mind maps may enhance your ability to remember important concepts like the mind map that I distributed related to the elements of the “External Environment.” My mind maps have been uploaded into the site and will help build my digital reputation. Be sure to upload your mind maps after your create an account on this website.

Here’s are 2 interesting video tutorials from XMIND site that you should watch:

1. Go to to see the mind map that I created to analyze the relationship between different types of “Social Media Assets” :

  • Social Networking includes Internet sites Facebook, MySpace, Pinterest and LinkedIn.
  • Social Content sites include YouTube, Wikipedia and FlickR.
  • Social Recommendation sites include StumbleUpon and Digg. This allows users to recommend Internet content to others and vote on the content.
  • Social Bookmarking sites like Delicious, Digg, Reddit, Technorati, and Google Bookmarks provide users with opportunities to share their bookmarks.

2. Go to the website and install the Mind Mapping software on your computer. This will allow you to create a mind map.

I have copied some of the code from my WordPress Mind Map here:

<iframe id=’xmindshare_embedviewer’ src=’

3. The site will generate code for your Mind Map. Insert this code into your site to share your mind map with your audience. If you save your Mind Map in Picassa you can modify the boundaries of the image and insert it into your blog post.

4. Create a mind map of your industry’s External Environment using the IBIS database assignment. You can insert the maps into your blog posts. Creating a Mind Map of the industry “External Environment” and describe the important variables.This activity should generate some traffic for you.

This worksheet will help you visually organize information about the external environment:

5. Here are a list of other templates that you will use during the semester for blog posts. Then you can incorporate your finished posts into your book.

*Here’s an interesting link for generating your TOWS Matrix for your project.


Generate a Porter’s Model Worksheet:

Generate a Boston Consulting Group Matrix

6. If you want to sell an Android app an the Google Store, you can create one at The number of Adroid Mind Mapping Apps is growing exponentially.

7. Some of the other Mind Mapping tools that you can use include:

MindGenius, iMindMap and Mindjet.



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LinkedIn Resume Builder: The Ultimate Social Media Lesson #10


This UML diagram describes the domain of Linke...

This UML diagram describes the domain of LinkedIn social networking system. (Photo credit: Wikipedia)

Nederlands: Linked In icon

Nederlands: Linked In icon (Photo credit: Wikipedia)


During this semester, you have learned that social media is dramatically transforming how we communicate. High value content allows you to build a relevant audience so that you can connect and share. Add as many sharing buttons as you can to your website including Pinterest. Now it’s time to build a LinkedIn Resume.

You now know that you must link your business-related social media activities into a mosaic by linking your blog posts to your LinkedIn Account, your YouTube Account and also to your Twitter Account. The social network that you create, will ultimately build your digital brand and drive traffic to your site. Your Dashboard statistics allows you to monitor where your referrals are coming from.

In LinkedIn, you should spruce up your profile for recruiters. Then check out the new “Resume Builder” feature with a step-by-step guide. It will save you time in updating your Resume! Click here for instructions:

Here’s a sample resume

Watch this CBS News video “Trapped in Unemployment “- 60 Minutes

You may want to consider a visual resume that you can create using for time-line graphics or You can also create a Pinterest board with your resume and pin your work accomplishments to the board.

You are the creator of your destiny. Gook luck-I hope you find your dream career!!!

Learn About Michael Porter’s 5 Forces Model


English: Porter Generic Strategies

English: Porter Generic Strategies (Photo credit: Wikipedia)

Michael Porter's Diamond of Advantage

Michael Porter’s Diamond of Advantage (Photo credit: Wikipedia)

Illustration of Porters 5 Forces. Illustrates ...

Illustration of Porters 5 Forces. Illustrates article Porter 5 forces analysis (currently available in 11 languages). (Photo credit: Wikipedia)

Català: Michael Porter. Česky: Michael Porter....

Català: Michael Porter. Česky: Michael Porter. Dansk: Michael Porter. Deutsch: Michael Porter. Español: Michael Porter. Suomi: Michael Porter. Bahasa Indonesia: Michael Porter. Nederlands: Michael Porter. ‪Norsk (bokmål)‬: Michael Porter. Polski: Michael E. Porter. Português: Michael Porter. Српски / Srpski: Majkl Porter. Svenska: Michael Porter. Українська: Майкл Портер. 16 лютого 2009. (Photo credit: Wikipedia)

In the EBSCO Library Database:

Type in the name of your Industry.

Fill in the table that you have created with 2 columns and 6 rows.

Label it: Porter’s Five-Forces Model Table

Insert 5 forces into table on the left and the graphics on the right using your snipping tool.

Watch these Porter’s Model Videos:

1.  Michael Porter Interview

2. Michael Porter “You Need a Strategy for your Organization”

3. Generic Strategy Mini Lecture:

Watch this video:

4. Michael Porter Ties it all together at UNC Chapel Hill: “What is Strategy”

Five forces

Threat of new entrants

Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents (which in business refers to the largest company in a certain industry, for instance, in telecommunications, the traditional phone company, typically called the “incumbent operator”), the abnormal profit rate will trend towards zero (perfect competition).

The following factors can have an effect on how much of a threat new entrants may pose:

  • The existence of barriers to entry (patents, rights, etc.). The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily.
  • Government policy
  • Capital requirements
  • Absolute cost
  • Cost disadvantages independent of size
  • Economies of scale
  • Economies of product differences
  • Product differentiation
  • Brand equity
  • Switching costs or sunk costs
  • Expected retaliation
  • Access to distribution
  • Customer loyalty to established brands
  • Industry profitability (the more profitable the industry the more attractive it will be to new competitors)

Threat of substitute products or services

The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives. For example, tap water might be considered a substitute for Coke, whereas Pepsi is a competitor’s similar product. Increased marketing for drinking tap water might “shrink the pie” for both Coke and Pepsi, whereas increased Pepsi advertising would likely “grow the pie” (increase consumption of all soft drinks), albeit while giving Pepsi a larger slice at Coke’s expense. Another example is the substitute of traditional phone with a smart phone.

Potential factors:

  • Buyer propensity to substitute
  • Relative price performance of substitute
  • Buyer switching costs
  • Perceived level of product differentiation
  • Number of substitute products available in the market
  • Ease of substitution
  • Substandard product
  • Quality depreciation

Bargaining power of customers (buyers)

The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer’s sensitivity to price changes. Firms can take measures to reduce buyer power, such as implementing a loyalty program. The buyer power is high if the buyer has many alternatives.

Potential factors:

  • Buyer concentration to firm concentration ratio
  • Degree of dependency upon existing channels of distribution
  • Bargaining leverage, particularly in industries with high fixed costs
  • Buyer switching costs relative to firm switching costs
  • Buyer information availability
  • Force down prices
  • Availability of existing substitute products
  • Buyer price sensitivity
  • Differential advantage (uniqueness) of industry products
  • RFM (customer value) Analysis
  • The total amount of trading

Bargaining power of suppliers

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes. If you are making biscuits and there is only one person who sells flour, you have no alternative but to buy it from them. Suppliers may refuse to work with the firm or charge excessively high prices for unique resources.

Potential factors:

  • Supplier switching costs relative to firm switching costs
  • Degree of differentiation of inputs
  • Impact of inputs on cost or differentiation
  • Presence of substitute inputs
  • Strength of distribution channel
  • Supplier concentration to firm concentration ratio
  • Employee solidarity (e.g. labor unions)
  • Supplier competition: the ability to forward vertically integrate and cut out the buyer.

Intensity of competitive rivalry

For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.

Potential factors:

Infographics and Pinterest: Social Media Lesson #4


Vitruvian Man by Leonardo da Vinci, Galleria d...

Vitruvian Man by Leonardo da Vinci, Galleria dell’ Accademia, Venice (1485-90) (Photo credit: Wikipedia)

Information graphics or infographics are graphic visual representations of information, data or knowledge.

It is easy to create an infographic by generating a pie chart for your industry. Explain the industry revenue and the key participants. Explain the impact of the market share on the HHI and industry concentration Then post your blog to Twitter and LinkedIn.

These graphics present complex information quickly and clearly. These “Visual Representations” include: time-lines, a matrix or a Venn Diagram. They are well-suited to blog posts.

Infographics are a useful way to convey meaningful information. Leonardo da Vinci‘s Vitruvian Man is an outstanding representation of an Infographic. The drawing, which is in pen and ink on paper, depicts a male figure in two superimposed positions with his arms and legs apart and simultaneously inscribed in a circle and square. The drawing and text visually depict the concept of the Canon of Proportions or, less often, Proportions of Man.

Self-portrait of Leonardo da Vinci. Red chalk....

Self-portrait of Leonardo da Vinci. Red chalk. 33 × 21 cm. Turin, Royal Library ( 15571). NOTE This image is in red chalk. Do not revert to the black and white image. Deutsch: Kopf eines bärtigen Mannes, sog. Selbstbildnis. (Photo credit: Wikipedia)

Leonardo da Vinci  (April 15, 1452 – May 2, 1519) was an “Italian Renaissance  painter, sculptor, architect, musician, scientist, mathematician, engineer, inventor, anatomist, geologist, cartographer, botanist, and writer whose genius, perhaps more than that of any other figure, epitomized the Renaissance humanist ideal. Leonardo has often been described as the archetype of the Renaissance Man, a man of “unquenchable curiosity” and “feverishly inventive imagination.”


Leonardo (Photo credit: Arenamontanus)

Leonardo’s drawing represents the correlations of ideal human proportions with geometry described by the ancient Roman architect Vitruvius in De Architectura. Leonardo’s drawing is named in honor of the architect.

We are in a visual content revolution vortex! The  infographic craze and Pinterest, Facebook and Google+ are growing exponentially.

“By visualizing information, we turn it into a landscape that you can explore with your eyes, a sort of information map. And when you’re lost in information, an information map is kind of useful.” (David McCandless)

Check out his video about visual information:

Read these tips on how to optimize your images:

In business we use pie charts, bar graphs and stock charts to convey trends. Videos, Pinterest, Flickr, Slidesharing and Podcasts can all be useful infographics. We want to disseminate our information to the collective knowledge of our “digital cocktail” party crowd.

Great headlines and engaging content coupled with outstanding Infographics can help us with our efforts. In addition, insert some eye-catching pictures or graphics above the “Fold”. Timing the release of your post is also critical. I find that lunchtime posts are effective.

Here’s a list of useful infographics for you to incorporate into your Social Media Arsenal:

1. Slideshare is a great way to share high-quality content. Think about how we use BlackBoard in our course shells. You can use an embedded video Zipcast tool.

2. Short Videos like “The Fountains in Rome” series on my YouTube Channel provide an example of a powerful infographic tool that can drive traffic to your site.

3. Embed a YouTube video or “Food Truck” photo slide show into your post. This is a fun way to tell an interesting story or convey information.

4. Don’t forget the mind mapping concept we discussed in class. Download the software. Incorporate a mind map into your post. You can search my mindmaps at “SocialMediaEvie” on the site.

Red Pinterest logo

Red Pinterest logo (Photo credit: Wikipedia)

5. Check out my Pinterest Boards by clicking on the button on my websites. Create your boards at Give your boards an interesting title and place them in the proper category.

Pinterest is a social catalog service or virtual pinboard where you can categorize and share the things that you love. You can create a collection of pins for your board. I have added the widget to this site bar of this site with a link to the travel “Boards” that I have created. As a blogger, create pins or boards with a theme that is relevant to your content. Add a Pinterest share button to your site. I have created lessons for my students on Pinterest that link back to my website.

Watch this video to learn how to add Pinterest to your toolbar

More Pinterest info:

Pinterest widgets

Check out this mindjet manager software:

6. Add a “TinyMCE” button to your toolbar in your dashboard settings. This will allow you to enter tables into your posts.

7. You should consider installing and activating a plug-in called “Google Doc Embedder”.

Here’s the checklist that I distributed to the class. I have embedding the code using Google Docs and I am publishing this link to the Web. Anyone with the link, can use the document.

I changed the privacy settings under the “Share” button and I copied and pasted the “iframe” code into the blog post.

If I change the Privacy settings to Public this happens:

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Week One Homework: Create your Strategic Management Project Template


English: Figure 10: SWOT-Analysis of the organ...

English: Figure 10: SWOT-Analysis of the organic business idea. Belongs to The Organic Business Guide. (Photo credit: Wikipedia)

Swot analysis

Swot analysis (Photo credit: Wikipedia)

SWOT analysis diagram in English language. Fra...

SWOT analysis diagram in English language. Français : Matrice SWOT en anglais. (Photo credit: Wikipedia)

English: Diagram of DuPont analysis of return ...

English: Diagram of DuPont analysis of return on equity. ‪Norsk (bokmål)‬: Diagram over DuPont-analyse av kapitalrentabilitet. (Photo credit: Wikipedia)

1. Create Google Drive Doc using table of contents page.



I.    DIAGNOSIS – Current situation: summary of factors which contribute to present status

  1. Mission
  2. Objectives
  3. Corporate Strategy
  4. Policies
    1.  Diversity
    2.  Ethical Standards/code of Conduct
    3.  Suppliers
    4.  HR


5. Strategic Managers and Board
1.  Sr. Level Executives
2.  Corporate governance
a.  Responsibilities
b.  Board Committees
c.  Director Compensation


6. Generic Industry Type:
1.  Fragmented, Maturing, Energizing, Declining
2.  Industry Economic Characteristics (p.53)

3. Generic Industry Type

Industry definition
Market size and growth rate
Key rivals & market share
Scope of competitive rivalry
Concentration vs. fragmentation
Number of buyers
Demand determinants
Degree of product differentiation
Product innovation
Key success factors
Supply/demand conditions
Analysis of stage in life cycle
Pace of technological change
Vertical integration
Economies of scale
Learning/experience curve effects
Barriers to entry













7. Organization Structure:

  1. type—functional, divisional, matrix, SBU
  2. advantages and disadvantages discussed in class


8. Financial Analysis / Altman & DuPont
1.  Graphs
2.  Altman
3.  Tobin’s Q
4.  DuPont Analysis

5. Stock Analysis

Compare your performance over time using the “Max Graph” from Yahoo Finance,


9. SWOT Analysis (See Handout)

  1. Internal (strengths, weaknesses)
  2. External (Opportunities, Threats)


10. Market Share Data Graphs



II.                      FOCAL POINTS FOR ACTION: Identify problems & issues which need to be resolved.  Analyze the company’s 10K before performing this step.

  1. Short Range
  2. Long Range


III.  DEVELOP ALTERNATIVES:  Equate to strategy types corporate/business.

  1. Consider Generic Industry Type & Industry Characteristics
  2. Boston Consulting Group Matrix-Build/hold/harvest/divest
  3. Competitive Position-Leader/Challenger/Follower/Nicher
  4. Competitive Strategy Options-Overall low cost leader-ship/differentiation/focus
  5. Appraise each alternative/overall org. impact using Rumelt’s criteria-consistency/consonance/advantage/feasibility


  1. Choose the best strategic alternative for each level:
    1. Corporate
      1. Business
      2. Functional


V.       IMPLEMENTATION: Identify the Goals/Participants/Steps

  1. Who will implement strategy?
  2. How will the strategy achieve organization wide commitment?
  3. Are structuring mechanism properly aligned?
  4. Are functional area conflicts reconciled to strategy requirements?
  5. Does leadership inspire commitment to strategy?
  6. Do reward systems reinforce appropriate behavior?
  7. Are functional issues addressed and resolved in implementation?
  8. Is the strategy communicated properly?





Go to click on Academic, then Library, then On-line Databases

Go to Databases and type in your Company’s name and Industry to find helpful information.





Strategy Tools MindMap: The Roadmap for this Semester



This is what you will learn in Strategic Management this semester:

Print this for your records. What strategies has your company pursued?

Strategic Drivers of Change in the External Environment


Cover of "The Strategy Paradox: Why commi...

Cover via Amazon

The Lords of Strategy

The Lords of Strategy (Photo credit: Wikipedia)

English: Strategy_Map.jpg

English: Strategy_Map.jpg (Photo credit: Wikipedia)

The Strategy Paradox

The Strategy Paradox (Photo credit: Wikipedia)

Fig7 Strategy archetypes

Fig7 Strategy archetypes (Photo credit: Wikipedia)

Review the “Drivers of Change in the External Environment”:

PEST Analysis Video

Watch this video

How does this impact your company?

I Love Pinterest: Social Media Lesson #7



I love Pinterest because it is an effective means of communicating Visual Information. I have replaced my 1000 page Syllabus with Pinterest Boards. Imagine all the trees that will be saved in this conversion process!

The “percentage of social media-driven revenue that comes from Pinterest has grown from 1 percent in the second quarter of 2011 to 17 percent in the second quarter of 2012.” Check out my Pinterest Boards by clicking on the “Pinterest” button on my websites.

Create your boards at It is a good idea to create a board with all of the blog posts that you have written this semester. Use a picture for your cover. Just add a pin it button to your posts and send them to your board.

Pinterest a social catalog service or virtual pinboard where you can categorize and share the things that you love. You can create a collection of pins for your board. I have added a widget to this side bar of this site with a link to the  “Boards” that I have created. I also added a plug-in to the website so that I can pin lessons to my boards.

As a blogger, create pins or boards with a theme that is relevant to your content. Add a Pinterest share button to your site for each post.

Red Pinterest logo

Red Pinterest logo (Photo credit: Wikipedia)

Watch this video to learn how to add Pinterest to your toolbar

More Pinterest info:

You will need to add a Pinterest Plugin to your site so watch this video

Here are over 50 useful Strategy Concepts that I have posted to my Pinterest Board.

If you have a problem with the link, look for the Strategic Management Board on my EveAnn Lovero Pinterest Page. Now you will never lose a handout.

Happy Pinning!!


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MBA Business Ethics


PepsiCo (Photo credit: Wikipedia)

According to your text, unethical managerial behavior tends to be driven by factors such as “overzealous or obsessive pursuit of personal gain, wealth, and other selfish interests; a company culture that puts the profitability and good business performance ahead of ethical behavior; and heavy pressures on company managers to meet or beat performance targets.” Pursuing unethical strategies not only damages a company’s reputation; it can have costly consequences.

The Journal of Ethics

The Journal of Ethics (Photo credit: Wikipedia)

Read this: The PepsiCo Code of Conduct/Ethics statement:

Ethical issues include:

  • The search for universal values as a basis for international commercial behavior.
  • Comparison of business ethical traditions in different countries. Also on the basis of their respective GDP
  • Comparison of business ethical traditions from various religious perspectives.
  • Ethical issues arising out of international business transactions; fair trade movement; transfer pricing.
  • Issues such as globalization and cultural imperialism.
  • Varying global standards regarding the use of child labor.
  • The way in which multinationals take advantage of international differences, such as outsourcing production  and services like call centrers to low-wage countries.

Foreign countries often use dumping as a competitive threat, selling products at prices lower than their normal value. This can lead to problems in domestic markets. It becomes difficult for these markets to compete with the pricing set by foreign markets.  Dumping is often seen as an ethical issue, as larger companies are taking advantage of other less economically advanced companies.

1. Why is Good Ethics, Good Business?

2. Describe your firm’s “Code of Business Ethics.”

3. Why should a company encourage Whistle Blowing?

4. What is corporate stewardship of the natural environment?

Social responsibility involves the company’s duty to operate in “an honorable manner, provide good working conditions for employees, be a good steward of the environment, and actively work to better the quality of life in the local communities where it operates and in society at large.

The company should pursue an environmental sustainability strategy that “meets the current needs of customers, suppliers, shareholders, employees and other stakeholders in a manner that protects the natural environment, provides for the longevity of natural resources, maintains ecological support for future generations and guards against the ultimate endangerment of the planet.”

MBA Economic Systems and Emerging Markets Internationally: Chapter 4

Map showing regional variation in European GDP...

Map showing regional variation in European GDP (PPP) per capita in 2006. Figures from International Monetary Fund (Photo credit: Wikipedia)

File-Average GDP PPP per capita

File-Average GDP PPP per capita (Photo credit: Wikipedia)

Peru's economic activity in the 1970s

Peru’s economic activity in the 1970s (Photo credit: Wikipedia)

English: en:Purchasing power parity. Similar t...

English: en:Purchasing power parity. Similar to Image:PPP2003-World-Borders.png, but uses a different data set. CSS for country coloring generated by en:User:Doodle77/PPP2003-php. (Photo credit: Wikipedia)

World map showing 2007 estimates about GDP (PP...

World map showing 2007 estimates about GDP (PPP) per capita (international dollars) {| style=”width: 100%;” |- style=”vertical-align: top;” | style=”width: 100%;” | |} —- (Photo credit: Wikipedia)


English: (Photo credit: Wikipedia)

Under Atatürk economy advanced from state base...

Under Atatürk economy advanced from state based polices to mixed economy aligned with the increase in the capital in the society (Photo credit: Wikipedia)

GDP (PPP) Per Capita based on 2008 estimates h...

GDP (PPP) Per Capita based on 2008 estimates (Photo credit: Wikipedia)

English: GDP PPP per capita of Argentina, Braz...

English: GDP PPP per capita of Argentina, Brazil, Chile and Mexico (source), as a percentage of the average GDP PPP per capita for Latin America (source) in a given year. (Photo credit: Wikipedia)

Country Resources are allocated using an Economic systems.

Let’s review Globalization:

Here are some of the basic paradigms associated with the basic types of economic systems that a country can use to allocate resources and conduct commercial activities: 

A.  Centrally Planned Economy is an economic system where decisions about resource allocation and commercial activity are made by central planners. It aims to improve productivity and to achieve political, social, and economic objectives by controlling the production and distribution of resources.Group welfare is considered more important than individual well-being and the system strives for economic and social equality.

B.   A  Mixed Economy  is an economic system where the government works with the private sector to allocate resources and make decisions about commercial activity. This system has some of the characteristics of a market economy with more regulatory oversight in some sectors, including state-run enterprises. The government frequently controls economic sectors that they consider to be important to national security and stability.


Chart of economic growth; from spreadsheet

Chart of economic growth; from spreadsheet (Photo credit: Wikipedia)

Economic resources like land and factories are more equally split between private and government ownership with generous welfare systems and access to health care.  This economic system strives for:  low unemployment and the reduction of poverty with more of an equitable distribution of income. Historically, government ownership has often led to less efficiency and innovation. This has generated a gradual move toward Privatization: selling government-owned economic resources to private companies and individuals.

Here’s a video to watch:

In a market economy, the government enforces Antitrust Laws to encourage competition and prevent monopolies that constrain commerce.

Another important concept is Economic Development; measuring the economic well-being of one nation’s people relative to the residents of another nations.

It reflects the following measures:

1. economic output (agricultural and industrial);

2. infrastructure (power and transportation facilities);

3. physical health

4. level of education.

Countries are often compared based upon gross national product per capita. To effectively compare gross product per capita, each currency must be translated into a single currency. Official exchange rates do not show what the local currency can buy in the home country.

politics - Clint's Nolan Chart - 20020718 - sl...

politics – Clint’s Nolan Chart – 20020718 – slightly inaccurate but good (Photo credit: Rev. Xanatos Satanicos Bombasticos (ClintJCL))

“Purchasing power parity is the relative ability of two countries’ currencies to buy the same “basket” of goods in those two countries.” Pearson IB Text

The 10 countries with the highest military exp...

The 10 countries with the highest military expenditure in 2007 in market exchange rate terms and purchasing power parity terms (Photo credit: Wikipedia)

The Human development index (HDI) measures “extent to which a people’s needs are satisfied and the degree to which these needs are addressed equally across a nation’s entire population along three key dimensions: a long and healthy life, an education, and a decent standard of living.” Pearson IB Text

The United Nations Human Development Index (HD...

The United Nations Human Development Index (HDI) rankings for 2011. For full details, see List of countries by Human Development Index (en.wikipedia) Very High High Medium Low Data unavailable (Photo credit: Wikipedia)

Moving to a market economy generally involves painful reforms including: state-owned enterprises must be privatized. Barriers to trade and investment must be minimized and currency convertibility issues must be resolved.


Singapore (Photo credit: Christopher Chan)

Transition is expensive because infrastructure investment is imperative and financial institutions must be created.

Another interesting video:


Chapter 1: MBA Globalization Lesson for International Business

English: WTO founder members (1 January 1995) ...

English: WTO founder members (1 January 1995) WTO subsequent members (Photo credit: Wikipedia)

Jakarta WTO protest2

Jakarta WTO protest2 (Photo credit: Wikipedia)

Globalization is the trend toward greater economic, cultural, political, and technological interdependence among national institutions and economies.

Check out my Globalization Pinterest board.


A.        Globalization of Markets

  1. Convergence in buyer preferences in markets around the world
    1. Reduces marketing costs by standardizing activities
    2. Creates market opportunities abroad if home is small or saturated
    3. Levels uneven income streams for global seasonal products
    4. Yet companies must not overlook buyers’ needs
    5. Need for global sustainability—development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

2.         The world’s 7 billion people live in three types of markets, yet all require companies to act in a sustainable manner:

a.         Developed markets are solidly middle class and people can consume almost any product desired. A firm may use the latest technologies to develop sustainable products in a sustainable manner.

b.         Emerging markets are racing to catch up to rich nations and are overloading infrastructures. Resource constraints can force companies to develop sustainable production methods.

c.         Traditional markets have mostly rural populations for whom poverty and corruption prevail. Here, sustainability means teaching safe farming practices, environmental stewardship, and disease awareness.

B.         Globalization of Production

  1. Dispersal of production activities to locations that help a company to minimize costs or maximize quality
    1. Access lower-cost workers to cut overall production costs
    2. Access technical expertise
    3. Access production inputs unavailable or more costly at home



Forces increase competition among nations by leveling the global business playing field.


A.        Falling Barriers to Trade and Investment

1947 General Agreement on Tariffs and Trade (GATT) was designed to promote free trade by reducing tariffs and nontariff barriers. 1994 GATT revision (1) reduced tariffs and lowered subsidies for agricultural products; (2) defined and protected intellectual property rights; and (3) created the WTO.

1.         World Trade Organization

a.         World Trade Organization (WTO) is the international organization that enforces the rules of international trade.

b.         WTO goals: (1) to help the free flow of trade, (2) help negotiate the further opening of markets, and (3) settle trade disputes.

c.         WTO agreements are contracts committing members to fair and open trade policies. WTO dispute settlement system is the spine of the global trading system.

2.         Regional Trade Agreements

a.         Smaller groups of nations also are integrating their economies (e.g., NAFTA, European Union).

3.         Trade and National Output

a.         Effect of the WTO and regional trade pacts is greater global trade and cross-border investing (Map 1.1).

  1. Trade growth has been faster than world output.
  2. Gross Domestic Product (GDP) is the value of all goods and services produced by a domestic economy over a one-year period. Gross national product (GNP) adds income from international activities.


B.         Technological Innovation

Technology accelerates globalization by making it easier, faster, and less costly to move data, goods, and equipment around the world.

  1. E-mail and Videoconferencing

a.         Speed information flows and ease the tasks of coordination and control, which are complicated by operating across borders.

b.         Driving growth in videoconferencing are lower-cost bandwidth and equipment, and decreased travel for cost or safety reasons.

  1. The Internet

a.         Helps firms sharpen forecasting, lower inventories, improve communication with suppliers, and communicate quickly and cheaply with distant managers

b.         Reduces the cost of reaching an international customer base, which is essential for the competitiveness of small firms

  1. Company Intranets and Extranets

a.         Intranets are private networks of company Web sites and other information sources that allow employee access to information from distant locations.

b.         Extranets are computer networks that give distributors and suppliers access to a company’s database so they can place orders or restock inventories electronically and automatically.

  1. Advancements in Transportation Technologies

a.         Make global shipping more efficient and dependable (e.g., GPS)


  1. Measuring Globalization


1.         The KOF Swiss Economic Institute’s Globalization Index ranks nations on their economic, social, and political engagement.

2.         Richest nations are the most global, with many in Europe. The United States ranked 35th (see Table 1.1).

3.         The least global nations are found in Africa, East Asia, South Asia, Latin America, and the Middle East. Low technological connectivity slows global integration.



People can view globalization from vastly different perspectives.


A.        Today’s Globalization in Context

1.         First age of globalization extended from the mid-1800s to the 1920s. Migration levels reached record highs, domestic workers faced competition from cheaper labor abroad, and trade and capital flowed more freely than ever before.

2.         Drivers of that first age of globalization were the steamship, telegraph, railroad, telephone, and airplane.

3.         World War I, the Russian Revolution, and the Great Depression abruptly ended that first age of globalization. A globalization backlash led to high tariffs and other barriers.

4.         Geographic divide between East and West became an ideological divide between communism and capitalism. International capital flows regained their prior pace but not until the 1990s.

5.         Drivers of this second age of globalization are communication satellites, fiber optics, microchips, and the Internet.


B.         Introduction to the Debate

1.         The World Bank is an agency created to provide financing for national economic development efforts.

2.         The International Monetary Fund (IMF) is an agency created to regulate fixed exchange rates and enforce the rules of the international monetary system.


C.         Globalization’s Impact on Jobs and Wages

  1. Against Globalization

a.         Eliminates jobs in developed nations as good-paying manufacturing jobs go abroad to developing countries. Low-priced goods are not worth lost jobs.

  1. Lowers wages in developed nations by causing worker dislocation that gradually lowers wages. New jobs that replace lost manufacturing jobs often pay less.
  2. Exploits workers in developing nations who work cheaply servicing western consumers.
  3. Summary: Although globalization eliminates jobs in some economic sectors, it creates jobs in other sectors.
  4. For Globalization

a.         Increases wealth and efficiency in all nations because trade openness raises output. Firms grow more efficient and pass savings on to consumers.

b.         Generates labor market flexibility in developed nations that allows an economy to rapidly deploy labor where demand is relatively great.

c.         Advances the economies of developing nations by injecting capital that creates higher-paying jobs, which expands the middle class and raises standards of living.

d.         Summary: Gains to national economies are worth lost livelihoods that individuals may suffer.


D.        Globalization’s Impact on Labor, the Environment, and Markets

1.         Labor Standards

a.         Trade unions claim that firms continually move to nations with low labor standards, which reduces labor’s bargaining power and forces overall labor standards lower.

b.         But studies of developing nations’ export processing zones instead find evidence that contradicts such claims.

2.         Environmental Protection

a.         Globalization opponents say it creates a “race to the bottom” in environmental conditions and regulations: countries compete in reducing environmental protection laws.

b.         But evidence shows pollution-intensive U.S. firms tend to invest in countries with stricter environmental standards. Also, closed economies historically are the worst polluters.

3.         Future Markets

a.         Protesters claim international firms pay locals the lowest possible wage and export their goods back to the home country.

b.         Today, firms want to build local markets in developing nations, not simply exploit workers and foment local animosity.


E.         Globalization and Income Inequality

1.         Inequality within Nations

a.         Globalization critics claim that income disparity in rich nations is increasing as firms move factory jobs to poor nations.

b.         Evidence is mixed, but poor people in developing nations seem to benefit from an open economy.

2.         Inequality between Nations

a.         Globalization opponents say it is widening the gap in average incomes between rich and poor nations.

b.         Looking closely at the evidence, we see that open nations are benefiting from trade whereas closed ones are not.

3.         Global Inequality

a.         Opponents of globalization say it is widening income inequality among all people of the world.

b.         Studies tend to agree that global inequality has fallen in recent decades, though they disagree on the extent of the decline.


F.         Globalization’s Influence on Cultures


1.         Critics say globalization homogenizes our world and lets MNCs destroy cultural diversity and wipe out small local businesses.

2.         Yet globalization allows nations to: (1) specialize and trade for goods they do not produce, (2) import other peoples’ cultural goods, and (3) still protect deeper moral and cultural norms.


G.        Globalization and National Sovereignty

1.         Globalization: Menace to Democracy?

a.         Supranational institutions with international goals and appointed officials undermine national sovereignty and democracy.

b.         Elected officials undercut democracy and local and regional authority with “international” agreements on citizens’ behalf.

2.         Globalization: Guardian of Democracy?

a.         Globalization has helped spread democracy worldwide (e.g., more democratic nations than ever).

b.         Some losses of sovereignty have had positive social impacts, as in human rights, workers’ rights, and discrimination.



What makes international business special is that it occurs within a dynamic, integrated system that weaves together four distinct elements.


A.        The Global Business Environment

1.         Globalization is transforming our societies and commercial activities. It also increases competition everywhere, forcing companies to be vigilant.

2.         Each national business environment consists of unique cultural, political, legal, and economic characteristics. Companies must be attentive to nuances and adapt products and practices as needed.

3.         The international business environment influences how business is conducted so firms must closely monitor events.

4.         Context of international business management is defined by the characteristics of the national and international business environments. Managers must abide by the prevailing rules in each market in which it operates.


B.         The Road Ahead for International Business

Part 1 (Chapter 1): Globalization

Part 2 (Chapters 2–4): National Business Environments

Parts 3 and 4 (Chapters 5–8 and 9–10): International Business Environment

Part 5 (Chapters 11–16): International Business Management




A.        Harnessing Globalization’s Benefits

1.         The most global nations tend to have the greatest equality, robust environmental protection, inclusive political systems, lowest levels of corruption, healthiest lifestyles, and be where women have achieved the most social, educational, and economic progress.

2.         The debate has opened a dialogue on how globalization can be harnessed to make its benefits exceed its costs.


B.         Intensified Competition

1.         Continued globalization is taking companies into previously isolated markets and increasing competitive pressures worldwide.

2.         As it gets easier and less costly to manage widely dispersed marketing and production activities, new opportunities and threats emerge.


C.         Wages and Jobs

1.         Low wages are not all that draws investment by multinationals. A location must offer low-cost, adequately skilled workers in an environment with acceptable levels of social, political, and economic stability.

2.         Labor mobility is increasing with globalization—depressing wages in some job categories but developing new job opportunities in others.


D.        The Policy Agenda

1.         Rich nations could open their markets, slash agricultural subsidies, and increase development aid. Poor nations could improve their investment climates and improve social protection for the poor.

2.         Rich nations could offer workers their wage insurance, subsidized health insurance if out of work, and improve education. Rich nations could help enforce labor standards, help clarify environmental agreements, and research the environmental implications of trade agreements.


Value Chain Analysis


English: Porter's Value Chain

“A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market. The concept comes from business management and was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Value”.

Integrative Strategies


Schematic representation of vertical and horiz...

There are basic guidelines for when various strategy options have historically been most effective.

Diversification (marketing strategy)

These are the basic 11 types of strategies for a manufacturer of steel office desks:

  • Forward integration:  opens retail stores to sell its desks.
  • Backward integration:  purchases a steel mill to control its supply of steel at a reasonable price.
  • Horizontal integration:  purchases a competing desk manufacturer.
  • Market Penetration:  launches a loyalty program to reward a company that buys a large number of desks for their many global subsidiaries.
  • Market Development: begins to offer desks in India, a new geographic market area for the company.
  • Product Development:  develops a special desk with a steel cabinet for electronics.
  • Related Diversification:  the company will now manufacture and sell steel chairs.
  • Unrelated Diversification:  the company will offer a credit card for its customers.
  • Retrenchment: the company is cutting jobs in 20 markets in the west.
  • Divestiture:  the company is selling off its plastics division.
  • Liquidation:  the company is selling off the equipment previously used in its now defunct plastics division.



Create an Organizational Structure Chart for an Organization

Organizational architecture isthe totality of a firm’s:

  • Organizational structure or organizational space: .
  • Organizational architecture or organization design: involves the creation of roles, processes, and formal reporting relationships in an organization.
1.Organizational structure is
the formal division of the organization into subunits;
the location of decision-making responsibilities within that structure
centralized versus decentralized
2. The establishment of integrating mechanisms to coordinate the activities of subunits including cross-functional teams or pan-regional committees

3. Explain how an organization can be matched to strategy to improve the performance of an international business.

The strategy and architecture of the firm must be consistent with competitive conditions prevailing in the market place.

Organizational structure of UPP.

Organizational structure of UPP. (Photo credit: Wikipedia)


Multinational giant Philips NV’s organizational arcitecture has evolved over time.  The Dutch company, which was internationally oriented almost from the start, moved to a national organization approach during World War II.  This allowed the company to tailor its product line and marketing to each national market.

By the 1970s, Philips shifted toward a product division structure that esta