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Solution Manual for Strategic Management Text and Cases, 8th Edition, Gregory Dess Gerry McN

Solution Manual for Strategic Management Text and Cases,


8th Edition, Gregory Dess Gerry McNamara Alan Eisner
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Description
Strategic Management: Text and Cases, Eighth Edition, written by the highly
respected author team of Dess, McNamara, and Eisner, continues to provide
readers what they have come to expect of this title: solid treatment of traditional
strategic management topics, application of strategic management concepts to
real-world examples, and interwoven contemporary themes revolving around
globalization, technology, ethics, environmental sustainability and
entrepreneurship. The eighth edition’s case package has been thoroughly revised
to maximize freshness and engagement. It continues to emphasize relevancy and
currency and to offer up-to-date financial data and videos to match each case. All
cases focus on companies familiar to students. In this edition, five are new
(Campbell Soup, General Motors, Avon, Tata Starbucks, and Greenwood
Resources) and twenty-six have been thoroughly revised (Apple, eBay, JetBlue,
Johnson & Johnson, and Zynga to name just a few of the familiar favorites). The
case package continues to offer both full-length and short-form cases, giving
instructors and students unparalleled quality and variety.

About the Author


Alan B. Eisner is Professor of Management and Department Chair, Management
and Management Science Department, at the Lubin School of Business, Pace
University. He received his PhD in management from the Stern School of Business,
New York University. His primary research interests are in strategic management,
technology management, organizational learning, and managerial decision
making. He has published research articles and cases in journals such as Advances
in Strategic Management, International Journal of Electronic Commerce,
International Journal of Technology Management, American Business Review,
Journal of Behavioral and Applied Management, and Journal of the International
Academy for Case Studies. He is the former Associate Editor of the Case
Association’s peer reviewed journal, The CASE Journal.

Gerry McNamara is a Professor of Management at Michigan State University. He


received his PhD from the Carlson School of Management at the University of
Minnesota. His research focuses on strategic decision making, organizational risk
taking, and mergers and acquisitions. His research has been published in
numerous journals, including the Academy of Management Journal, Strategic
Management Journal, Organization Science, Organizational Behavior and Human
Decision Processes, Journal of Management, and Journal of International Business
Studies. His research on mergers and acquisitions has been abstracted in the New
York Times, Bloomberg Businessweek, The Economist, and Financial Week. He is
currently an Associate Editor for the Academy of Management Journal.

Gregory Dess
Gregory G. Dess is the Andrew R. Cecil Endowed Chair in Management at the
University of Texas at Dallas. His primary research interests are in strategic
management, organization–environment relationships, and knowledge
management. He has published numerous articles on these subjects in both
academic and practitioner-oriented journals. He also serves on the editorial
boards of a wide range of practitioner-oriented and academic journals. In August
2000, he was inducted into the Academy of Management Journal’s Hall of Fame
as one of its charter members. Professor Dess has conducted executive programs
in the United States, Europe, Africa, Hong Kong, and Australia. During 1994 he
was a Fulbright Scholar in Oporto, Portugal. In 2009, he received an honorary
doctorate from the University of Bern (Switzerland). He received his PhD in
Business Administration from the University of Washington (Seattle) and a BIE
degree from Georgia Tech.
Gerry McNamara
Gerry McNamara is a Professor of Management at Michigan State University. He
received his PhD from the Carlson School of Management at the University of
Minnesota. His research focuses on strategic decision making, organizational risk
taking, and mergers and acquisitions. His research has been published in
numerous journals, including the Academy of Management Journal, Strategic
Management Journal, Organization Science, Organizational Behavior and Human
Decision Processes, Journal of Management, and Journal of International Business
Studies. His research on mergers and acquisitions has been abstracted in the New
York Times, Bloomberg Businessweek, The Economist, and Financial Week. He is
currently an Associate Editor for the Academy of Management Journal.
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"Sir, a tiny man just fired an arrow at me."
"Really?"
"There's—there's a whole bunch of them, now."
"Are you out of your mind?"
"No!" Basset scrambled to his feet. A volley of arrows rose up, sticking into
his suit, glancing off his helmet. The shrill voices of the tiny men came to
his ears, an excited, penetrating sound. "General, please come back here!"
Groves and Siller appeared at the top of the ridge. "Basset, you must be out
of—"
They stopped, transfixed. Siller raised the Boris gun, but Groves pushed the
muzzle down. "Impossible." He advanced, staring down at the ground. An
arrow pinged against his helmet. "Little men. With bows and arrows."
Suddenly the little men turned and fled. They raced off, some on foot, some
on horseback, back through the weeds and out the other side.
"There they go," Siller said. "Should we follow them? See where they
live?"
"It isn't possible." Groves shook his head. "No planet has yielded tiny
human beings like this. So small!"
Commander Carmichel strode down the ridge to them. "Did I really see it?
You men saw it, too? Tiny figures, racing away?"
Groves pulled an arrow from his suit. "We saw. And felt." He held the
arrow close to the plate of his helmet, examining it. "Look—the tip glitters.
Metal tipped."
"Did you notice their costumes?" Basset said. "In a storybook I once read.
Robin Hood. Little caps, boots."
"A story...." Groves rubbed his jaw, a strange look suddenly glinting in his
eyes. "A book."
"What, sir?" Siller said.
"Nothing." Groves came suddenly to life, moving away. "Let's follow them.
I want to see their city."
He increased his pace, walking with great strides after the tiny men, who
had not got very far off, yet.
"Come on," Siller said. "Before they get away." He and Carmichel and
Basset followed behind Groves, catching up with him. The four of them
kept pace with the tiny men, who were hurrying away as fast as they could.
After a time one of the tiny men stopped, throwing himself down on the
ground. The others hesitated, looking back.
"He's tired out," Siller said. "He can't make it."
Shrill squeaks rose. He was being urged on.
"Give him a hand," Basset said. He bent down, picking the tiny figure up.
He held him carefully between his gloved fingers, turning him around and
around.
"Ouch!" He set him down quickly.
"What is it?" Groves came over.
"He stung me." Basset massaged his thumb.
"Stung you?"
"Stabbed, I mean. With his sword."
"You'll be all right." Groves went on, after the tiny figures.
"Sir," Siller said to Carmichel, "this certainly makes the Ganymede problem
seem remote."
"It's a long way off."
"I wonder what their city will be like," Groves said.
"I think I know," Basset said.
"You know? How?"
Basset did not answer. He seemed to be deep in thought, watching the
figures on the ground intently.
"Come on," he said. "Let's not lose them."
They stood together, none of them speaking. Ahead, down a long slope, lay
a miniature city. The tiny figures had fled into it, across a drawbridge. Now
the bridge was rising, lifted by almost invisible threads. Even as they
watched, the bridge snapped shut.
"Well, Doc?" Siller said. "This what you expected?"
Basset nodded. "Exactly."
The city was walled, built of gray stone. It was surrounded by a little moat.
Countless spires rose up, a conglomeration of peaks and gables, tops of
buildings. There was furious activity going on inside the city. A cacophony
of shrill sounds from countless throats drifted across the moat to the four
men, growing louder each moment. At the walls of the city figures
appeared, soldiers in armor, peering across the moat at them.
Suddenly the drawbridge quivered. It began to slide down, descending into
position. There was a pause. Then—
"Look!" Groves exclaimed. "Here they come."
Siller raised his gun. "My Lord! Look at them!"
A horde of armored men on horseback clattered across the drawbridge,
spilling out onto the ground beyond. They came straight toward the four
spacesuited men, the sun sparkling against their shields and spears. There
were hundreds of them, decked with streamers and banners and pennants of
all colors and sizes. An impressive sight, on a small scale.
"Get ready," Carmichel said. "They mean business. Watch your legs." He
tightened the bolts of his helmet.
The first wave of horsemen reached Groves, who was standing a little ahead
of the others. A ring of warriors surrounded him, little glittering armored
and plumed figures, hacking furiously at his ankles with miniature swords.
"Cut it out!" Groves howled, leaping back. "Stop!"
"They're going to give us trouble," Carmichel said.
Siller began to giggle nervously, as arrows flew around him. "Shall I give it
to them, sir? One blast from the Boris gun and—"
"No! Don't fire—that's an order." Groves moved back as a phalanx of
horses rushed toward him, spears lowered. He swung his leg, spilling them
over with his heavy boot. A frantic mass of men and horses struggled to
right themselves.
"Back." Basset said. "Those damn archers."
Countless men on foot were rushing from the city with long bows and
quivers strapped to their backs. A chaos of shrill sound filled the air.
"He's right," Carmichel said. His leggings had been hacked clean through
by determined knights who had dismounted and were swinging again and
again, trying to chop him down. "If we're not going to fire we better retreat.
They're tough."
Clouds of arrows rained down on them.
"They know how to shoot," Groves admitted. "These men are trained
soldiers."
"Watch out." Siller said. "They're trying to get between us. Pick us off one
by one." He moved toward Carmichel nervously. "Let's get out of here."
"Hear them?" Carmichel said. "They're mad. They don't like us."
The four men retreated, backing away. Gradually the tiny figures stopped
following, pausing to reorganize their lines.
"It's lucky for us we have our suits on," Groves said. "This isn't funny
anymore."
Siller bent down and pulled up a clump of weeds. He tossed the clump at
the line of knights. They scattered.
"Let's go," Basset said. "Let's leave."
"Leave?"
"Let's get out of here." Basset was pale. "I can't believe it. Must be some
kind of hypnosis. Some kind of control of our minds. It can't be real."
Siller caught his arm. "Are you all right? What's the matter?"
Basset's face was contorted strangely. "I can't accept it," he muttered
thickly. "Shakes the whole fabric of the universe. All basic beliefs."
"Why? What do you mean?"
Groves put his hand on Basset's shoulder. "Take it easy, Doctor."
"But General—"
"I know what you're thinking. But it can't be. There must be some rational
explanation. There has to be."
"A fairy tale," Basset muttered. "A story."
"Coincidence. The story was a social satire, nothing more. A social satire, a
work of fiction. It just seems like this place. The resemblance is only—"
"What are you two talking about?" Carmichel said.
"This place." Basset pulled away. "We've got to get out of here. We're
caught in a mind web of some sort."
"What's he talking about?" Carmichel looked from Basset to Groves. "Do
you know where we are?"
"We can't be there," Basset said.
"Where?"
"He made it up. A fairy tale. A child's tale."
"No, a social satire, to be exact," Groves said.
"What are they talking about, sir?" Siller said to Commander Carmichel.
"Do you know?"
Carmichel grunted. A slow light dawned in his face. "What?"
"Do you know where we are, sir?"
"Let's get back to the globe," Carmichel said.

Groves paced nervously. He stopped by the port, looking out intently,


peering into the distance.
"More coming?" Basset said.
"Lots more."
"What are they doing out there now?"
"Still working on their tower."
The little people were erecting a tower, a scaffolding up the side of the
globe. Hundreds of them were working together, knights, workmen,
archers, even women and boys. Horses and oxen pulling tiny carts were
drawing supplies from the city. A shrill hubbub penetrated the rexenoid hull
of the globe, filtering to the four men inside.
"Well?" Carmichel said. "What'll we do? Go back?"
"I've had enough," Groves said. "All I want now is to go back to Terra."
"Where are we?" Siller demanded, for the tenth time. "Doc, you know. Tell
me, damn it! All three of you know. Why won't you say?"
"Because we want to keep our sanity," Basset said, his teeth clenched.
"That's why."
"I'd sure like to know," Siller murmured. "If we went over in the corner
would you tell me?"
Basset shook his head. "Don't bother me, Major."
"It just can't be," Groves said. "How could it be?"
"And if we leave, we'll never know. We'll never be sure. It'll haunt us all our
lives. Were we really—here? Does this place really exist? And is this place
really—"
"There was a second place," Carmichel said abruptly.
"A second place?"
"In the story. A place where the people were big."
Basset nodded. "Yes. It was called—What?"
"Brobdingnag."
"Brobdingnag. Maybe it exists, too."
"Then you really think this is—"
"Doesn't it fit his description?" Basset waved toward the port. "Isn't that
what he described? Everything small, tiny soldiers, little walled cities, oxen,
horses, knights, kings, pennants. Draw-bridge. Moat. And their damn
towers. Always building towers—and shooting arrows."
"Doc," Siller said. "Whose description?"
No answer.
"Could—could you whisper it to me?"
"I don't see how it can be," Carmichel said flatly. "I remember the book, of
course. I read it when I was a child, as we all did. Later on I realized it was
a satire of the manners of the times. But good Lord, it's either one or the
other! Not a real place!"
"Maybe he had a sixth sense. Maybe he really was there. Here. In a vision.
Maybe he had a vision. They say that he was supposed to have been
psychotic, toward the end."
"Brobdingnag. The other place." Carmichel pondered. "If this exists, maybe
that exists. It might tell us.... We might know, for sure. Some sort of
verification."
"Yes, our theory. Hypothesis. We predict that it should exist, too. Its
existence would be a kind of proof."
"The L theory, which predicts the existence of B."
"We've got to be sure," Basset said. "If we go back without being sure, we'll
always wonder. When we're fighting the Ganymedeans we'll stop suddenly
and wonder—was I really there? Does it really exist? All these years we
thought it was just a story. But now—"
Groves walked over to the control board and sat down. He studied the dials
intently. Carmichel sat down beside him.
"See this," Groves said, touching the big central meter with his finger. "The
reading is up to liw, 100. Remember where it was when we started?"
"Of course. At nesi. At zero. Why?"
"Nesi is neutral position. Our starting position, back on Terra. We've gone
the limit one way. Carmichel, Basset is right. We've got to find out. We can't
go back to Terra without knowing if this really is.... You know."
"You want to throw it back all the way? Not stop at zero? Go on to the other
end? To the other liw?"
Groves nodded.
"All right." The Commander let his breath out slowly. "I agree with you. I
want to know, too. I have to know."
"Doctor Basset." Groves brought the Doctor over to the board. "We're not
going back to Terra, not yet. The two of us want to go on."
"On?" Basset's face twitched. "You mean on beyond? To the other side?"
They nodded. There was silence. Outside the globe the pounding and
ringing had ceased. The tower had almost reached the level of the port.
"We must know," Groves said.
"I'm for it," Basset said.
"Good," Carmichel said.
"I wish one of you would tell me what it is you're talking about," Siller said
plaintively. "Can't you tell me?"
"Then here goes." Groves took hold of the switch. He held it for a moment,
sitting silently. "Are we ready?"
"Ready," Basset said.
Groves threw the switch, all the way down.

Shapes, enormous and confused.


The globe floundered trying to right itself. Again they were falling, sliding
about. The globe was lost in a sea of vague, misty forms, immense dim
figures that moved on all sides of them, beyond the port.
Basset stared out, his jaws slack. "What—"
Faster and faster the globe fell. Everything was diffused, unformed. Shapes
like shadows drifted and flowed outside, shapes so huge that their outlines
were lost.
"Sir!" Siller muttered. "Commander! Hurry! Look!"
Carmichel made his way to the port.
They were in a world of giants. A towering figure walked past them, a torso
so large that they could see only a portion of it. There were other shapes,
but so vast and dim they could not be identified. All around the globe was a
roaring, a deep undercurrent of sound like the waves of a monstrous ocean.
An echoing sound, a booming that tossed and bounced the globe around and
around.
Groves looked up at Basset and Carmichel.
"Then it's true," Basset said.
"This confirms it."
"I can't believe it," Carmichel said. "But this is the proof we asked for. Here
it is—out there."
Outside the globe something was coming closer, coming ponderously
toward them. Siller gave a sudden shout, moving back from the port. He
grabbed up the Boris gun, his face ashen.
"Groves!" Basset cried. "Throw it to neutral! Quick! We've got to get
away."
Carmichel pushed Siller's gun down. He grinned fixedly at him. "Sorry.
This time it's too small."
A hand was reached toward them, a hand so large that it blotted out the
light. Fingers, skin with gaping pores, nails, great tufts of hair. The globe
shuddered as the hand closed around them from all sides.
"General! Quick!"
Then it was gone. The pressure ceased, winking out. Beyond the port was—
nothing. The dials were in motion again, the pointer rising up toward nesi.
Toward neutral. Toward Terra.
Basset breathed a sigh of relief. He removed his helmet and mopped his
forehead.
"We got away," Groves said. "Just in time."
"A hand," Siller said. "Reaching for us. A big hand. Where were we? Tell
me!"
Carmichel sat down beside Groves. They looked silently at each other.
Carmichel grunted. "We mustn't tell anyone. No one. They wouldn't believe
us, and anyhow, it would be very damaging if they did. A society can't learn
something like this. Too much would totter."
"He must have seen it in a vision. Then he wrote it up as a children's story.
He knew he could never put it down as fact."
"Something like that. So it really exists. Both exist. And perhaps others.
Wonderland, Oz, Pellucidar, Erewhon, all the fantasies, dreams—"
Groves put his hand on the Commander's arm. "Take it easy. We'll simply
tell them the ship didn't work. As far as they're concerned we didn't go
anywhere. Right?"
"Right." Already, the vidscreen was sputtering, coming to life. An image
was forming. "Right. We won't say anything. Just the four of us will know."
He glanced at Siller. "Just the three of us, I mean."
On the vidscreen the image of the Senate Leader was fully formed.
"Commander Carmichel! Are you safe? Were you able to land? Mars sent
us no report. Is your crew all right?"
Basset peered out the port. "We're hanging about a mile up from the city.
Terra City. Dropping slowly down. The sky is full of ships. We don't need
help, do we?"
"No," Carmichel said. He began to fire the brake rockets slowly, easing the
ship down.
"Someday, when the war is over," Basset said, "I want to ask the
Ganymedeans about this. I'd like to find out the whole story."
"Maybe you'll get your chance," Groves said, suddenly sobered. "That's
right. Ganymede! Our chance to win the war certainly fizzled."
"The Senate Leader is going to be disappointed," Carmichel said grimly.
"You may get your wish very soon, Doctor. The war will probably be over
shortly, now that we're back—empty-handed."

The slender yellow Ganymedean moved slowly into the room, his robes
slithering across the floor after him. He stopped, bowing.
Commander Carmichel nodded stiffly.
"I was told to come here," the Ganymedean lisped softly. "They tell me that
some of our property is in this laboratory."
"That's right."
"If there are no objections, we would like to—"
"Go ahead and take it."
"Good. I am glad to see there is no animosity on your part. Now that we are
all friends again, I hope that we can work together in harmony, on an equal
basis of—"
Carmichel turned abruptly away, walking toward the door. "Your property is
this way. Come along."
The Ganymedean followed him into the central lab building. There, resting
silently in the center of the vast room, was the globe.
Groves came over. "I see they've come for it."
"Here it is," Carmichel said to the Ganymedean. "Your spaceship. Take it."
"Our time ship, you mean."
Groves and Carmichel jerked. "Your what?"
The Ganymedean smiled quietly. "Our time ship." He indicated the globe.
"There it is. May I begin moving it onto our transport?"
"Get Basset," Carmichel said. "Quick!"
Groves hurried from the room. A moment later he returned with Doctor
Basset.
"Doctor, this Gany is after his property." Carmichel took a deep breath. "His
—his time machine."
Basset leaped. "His what? His time machine?" His face twitched. Suddenly
he backed away. "This? A time machine? Not what we—Not—"
Groves calmed himself with an effort. He addressed the Ganymedean as
casually as he could, standing to one side, a little dismayed. "May we ask
you a couple of questions before you take your—your time ship?"
"Of course. I will answer as best I can."
"This globe. It—it goes through time? Not space? It's a time machine? Goes
into the past? Into the future?"
"That is correct."
"I see. And nesi on the dial, that's the present."
"Yes."
"The upward reading is the past?"
"Yes."
"The downward reading is the future, then. One more thing. Just one more.
A person going back into the past would find that because of the expansion
of the universe—"
The Ganymedean reacted. A smile crossed his face, a subtle, knowing
smile. "Then you have tried out the ship?"
Groves nodded.
"You went into the past and found everything much smaller? Reduced in
size?"
"That's right—because the universe is expanding! And the future.
Everything increased in size. Expanded."
"Yes." The Ganymedean's smile broadened. "It is a shock, is it not? You are
astonished to find your world reduced in size, populated by minute beings.
But size, of course, is relative. As you discover when you go into the
future."
"So that's it." Groves let out his breath. "Well, that's all. You can have your
ship."
"Time travel," the Ganymedean said regretfully, "is not a successful
undertaking. The past is too small, the future too expanded. We considered
this ship a failure."
The Gany touched the globe with his feeler.
"We could not imagine why you wanted it. It was even suggested that you
stole the ship to use—" the Gany smiled—"to use to reach your colonies in
deep-space. But that would have been too amusing. We could not really
believe that."
No one said anything.
The Gany made a whistling signal. A work crew came filing in and began
to load the globe onto an enormous flat truck.
"So that's it," Groves muttered. "It was Terra all the time. And those people,
they were our ancestors."
"About fifteenth century," Basset said. "Or so I'd say by their costumes.
Middle Ages."
They looked at each other.
Suddenly Carmichel laughed. "And we thought it was—We thought we
were at—"
"I knew it was only a child's story," Basset said.
"A social satire," Groves corrected him.
Silently they watched the Ganymedeans trundle their globe out of the
building, onto the waiting cargo ship.
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