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Management A Faith Based Perspective 1st Edition Cafferky Solutions Manual
Management A Faith Based Perspective 1st Edition Cafferky Solutions Manual
Management A Faith Based Perspective 1st Edition Cafferky Solutions Manual
Proverbs 11:24 There is one who scatters, yet increases all the more, And there is one
who withholds what is justly due, but it results only in want. 25 The generous man will be
prosperous, And he who waters will himself be watered. 26 He who withholds grain, the
people will curse him, But blessing will be on the head of him who sells it.
Proverbs 14:8 The wisdom of the prudent is to understand his way, But the folly of fools
is deceit.
Proverbs 21:5 The plans of the diligent lead surely to advantage, But everyone who is
hasty comes surely to poverty.
Ecclesiastes 7:19 Wisdom strengthens a wise man more than ten rulers who are in a city.
Front-loading Activity
Consider using one of the In-class Exercises at the end of the chapter as a means to introduce
the essential question that follows.
As you conclude the lectures and class discussions of the material in the chapter, return to the
essential question. Divide the class into small groups and ask the groups to propose possible
answers to the essential question. Then ask students to put in their own words an essential
question which embraces the major learning point from this chapter from their perspective.
Alternatively, in follow up to the class period emphasis on the material, engage in an online
threaded discussion or blog exploring the essential question ideas of the students.
LEARNING OBJECTIVES
• Understand how personal values directly influence strategic decisions.
• Describe how a faith perspective can guide the strategic decision maker.
• Understand the strategic thinking process and content that are used to analyze a given
situation to make strategic decisions.
• Describe the common patterns of strategic decision making across industries.
• Understand selected tension points that strategic managers face during the strategic thinking
process.
At first students may not see the connection 4. Faith Perspective on Strategic Thinking.
between faith and strategic planning. Certainly a. It is in the creation account where we see
wise environmental stewardship is partly the
the first suggestions related to strategic
outgrowth of faith. However, challenge students thinking. The original Strategic Thinker is
to consider other possible connections. For God himself.
instance:
• Being conscious of the future as
b. The Bible highlights several persons as
celebration of being made in God’s having the gift of strategic thinking to
image guide organizations. These include notable
• Planning is embraced in both the Old strategic thinkers such as Abraham, Jacob,
and New Testaments Moses, Joseph, David, Solomon, Daniel,
Nehemiah, Jesus, and Paul.
Also, the connection between our faith and our
planning activities could raise some interesting c. Members of the tribe of Issachar were
questions: known as having the ability to see the big
picture. When he needed to consolidate the
Ask: Would you expect, all other national defensive force, David turned to
things being equal, for Christians to the men of Issachar for strategic advice.
be better at planning than non-
Christians?
4. Strategic Thinking.
Due to the recent death of Steve Jobs at Apple, a. For an organization to succeed in achieving
much has been made about how his values its goals, it must follow a pattern of
influenced the strategic posture of Apple – and
how his successor’s values might or might not
integrated commitments and actions across
track his values. Have students examine some the firm that help everyone stay focused.
recent discussions of Apple’s future and how b. Strategic thinking begins by attempting to
values of Apple’s leaders might influence that make sense of the internal and external
future. environment of the organization. From this
sense-making process, one or more issues
Encourage students to carefully consider some or problems emerge. Exhibit 7-4 shows it
of the key ideas here: as a linear, sequential process. In reality
• Linking the present and the future any of the steps in the process can occur at
• linking competencies to competition any time the situation requires.
• linking the parts of the organization to c. Strategic Thinking and Values. Strategic
the whole
• linking continuity to change
decisions, those that make a difference for
the whole of a company, cannot be made in
isolation from all the other decisions the
company is making.
i. These decisions also cannot be made in
Ask: What are the advantages and isolation from the personal values of the
disadvantages of (a) formal, decision makers.
sequential strategic thinking vs. (b) ii. In this way strategic thinking is
emergent, informal and, even, chaotic consistent with the intent of the
strategic thinking? Management Pyramid model presented
in this book: Strategic thinking begins
with who you are.
iii. Personal values heavily influence what
Ask: What might be some of the strategic decision makers want to do in
challenges of strategy formulation (for spite of what the organization might do.
instance, time, information, quantity Although we like to think of strategic
and quality of resources)? decision making as purely a logical,
rational process, values bias logic and
Ask: Do you think strategy judgment.
formulation would be easier or more iv. Members of an executive team likely
challenging … will have differences of opinion
… for a nonprofit vs. a for-profit regarding which information to analyze
organization? and the types of strategic actions to
… for a service business a consider. At times these discussions can
manufacturing business? become “heated” as the decision
… for a small organizations vs. a large makers attempt to help each other
organization? clarify their thinking.
v. Ironically, strategic planning
Ask: discussions and debates rarely are
• If “Most of the time strategic directly about values that are at the root
decisions involve making only of the discussions. Even so, values
minor adjustments to previous always drive the discussions.
strategic choices,” why might this
be the case? d. Strategic Thinking Process. Strategic
• What factors might lead an thinking is a constant process of thinking
organization to make major about the present and the future, the
changes? internal capabilities and the external
situation, the specific products and the core
competencies that are embedded in the
Ask students to consider these questions ability to make and sell these products,
related to Exhibit 7-5: specific issues that require decisions, and
• What different skills might the organization as a whole.
formulation vs. implementation i. Ultimately, the thinking process
activities call for? involves either affirming previous
• What is the difference between decisions made by organizational
divergent vs. convergent thinking? leaders or making decisions that alter
• Which is more important – the the future of the organization.
big picture or the details? ii. In some organizations strategic thinking
• Are there different tradeoffs in is sequential and planned. Top-level
the formulation vs. executives use formal data analysis and
implementation phases? formal planning meetings. First, data is
analyzed. Next decisions are made, and
Ask: How might a leader think then implementation is carried out.
through the following tradeoffs: iii. The reality for many leaders is that in
• Increasing dividend payouts vs. some organizations strategic thinking is
emergent, less formal, and at times even
increasing employee pay?
• Moving jobs overseas vs. keeping chaotic.
jobs in the U.S.? iv. Strategy formulation is the continual
• Spending more for “green process of analyzing the marketplace
energy” vs. spending more on and the organization and then making
marketing programs? one or more decisions that affect the
company as a whole.
While it is true that there is no “single right v. Strategy implementation is the process
way” to manage the strategic planning process, of carrying out the strategic decisions
urge students to identify some characteristics that are made. In practice, strategic
that would be true for ANY effective planning
process (for instance, the frank exchange of formulation is sometimes difficult to
ideas among a strategic planning team, firm data distinguish from strategy
whenever possible, etc.). implementation. See Exhibit 7-5.
vi. Strategic leaders find that planning for
the organization as a whole once a year
is not how strategic decisions actually
are made in practice throughout the
year.
vii. Strategic issues emerge from the
implementation of strategic plans, from
the actions of suppliers, lawmakers, and
regulators, and from the actions of
competitors trying to gain an advantage
in the market.
viii. Strategic planning processes differ from
company to company and situation to
situation.
ix. Regardless of where in the process it
occurs, strategic thinking always leads
to decisions. This involves wrestling
with tensions and trade-offs.
x. Companies cannot do it all and expect
to have an advantage over competitors.
This principle of making trade-offs
affects nonprofit organizations just as
Ask: What are possible sweet spots the much as it does for-profit companies.
following kinds of organizations might
develop:
• An ice cream shop? e. Strategic Thinking Content. The
• A Christian university? traditional way to think about the big issues
• A convenience store? that an organization faces is to think in
terms of two key influences: (a) what is
Students should be encouraged to apply the happening outside the organization in the
hedgehog concept to their academic lives. Have marketplace and industry, and (b) what is
them discuss their answers to the following
questions: happening inside the organization in terms
• How deeply passionate are you of its key personnel and resources needed
about your choice of major? Is to accomplish the organization’s mission.
there any other major you i. Using the insights gained from this
could be more passionate analysis executives attempt to refine
about? their thinking so that they can help their
• Do you desire to, and believe organization find the “sweet spot”
you can be, the “best in the where what the company does best and
world” in your present major? what the company can make money
• Will working in the field of doing meets what the company’s
your present major provide managers are passionate about. This is
your required economic sometimes called the hedgehog
success? concept. See Exhibit 7-6.
ii. People often confuse the two terms
Ask the following questions related to strategy and tactics. Strategy is what
Exhibit 7-6: orients the entire organization toward
• What happens if the arena of the pursuit of its mission or a big goal;
our deep passion is not where strategy guides tactical day-to-day
we can be best in the world”? decision making and action. Tactics are
• What if what we are best at has the visible day-to-day activities, tasks,
a low expected economic and maneuvers that need to get done to
return? accomplish the mission or achieve the
• If my passions point to a field goal in a changing market. See Exhibit
where we can only be 7-7.
“average,” what should we do? iii. Exhibit 7-8 gives additional examples
of how these two ideas of strategy and
tactics are different and yet
Ask: interdependent.
• Which is more important:
▪ Process?
▪ Content?
• What part of the process do you
find most attractive? Why?
Remind students that these tensions are not 6. Paradoxes of Strategic Thinking. The whole
necessarily emotional tension but rather process of strategy can be thought of as the
cognitive tensions where decision makers must
keep in their minds competing goals and
process of mentally embracing many tensions:
interests. intuition versus logical analysis, ambiguity versus
precision, focusing on specifics versus being
Ask: flexible, and the big picture versus the little
Which of these tensions have you felt details.
as a student, and how have you a. Formulate strategic decisions—
handled these (encourage students to implement decisions. This is perhaps the
talk about their successes and fundamental tension that all strategic
failures)? managers face. Mentally they must
continually be thinking about and refining
Which of these tensions do you feel their understanding of what the company
best prepared to handle today – and must do and what the company is now
which do you feel less able to handle – doing.
and why? b. Risk taking—constancy. Many top-level
leaders find that their company’s situation
What can you be doing as a student to calls for risk taking. At the same time, these
prepare yourself to deal with these leaders must maintain some level of
managerial tensions? constancy.
c. Top-down—bottom-up. Senior leaders
must assimilate all the information coming
from all directions and then communicate
top-down the strategic decisions that are
made. Top-down visioning, however,
works against the bottom-up
communication by the frontline workers
who know the day-to-day difficulties of
implementing strategy.
d. Concentrate—diversify. If a company
concentrates its resources on just a few
products and services, it can become
exceptional at producing. But this limits its
ability to spread its risks. If a company
attempts to diversify too broadly, it will
become more difficult to become very good
at any particular product.
Some of these questions do not have a “right” answer.” These questions are not meant to have
students just parrot back what the textbook says. Remind students that the questions are meant to
be catalysts for them to think deeply and creatively about the textbook material, and then to
encourage them to respond thoughtfully and creatively to the issues the question is addressing.
Remind that simple “yes” or “no” answers are not what you are looking for and that it is as
important WHY a student believes something as it is WHAT they believe.
This being said, we are able to discern between effective and ineffective responses by the
following criteria:
Does the response reflect and accurate understanding of what the textbook said (definition of
terms especially)?
(For written answers) Is the response well written (spelling, grammar)?
Does the response reflect an understanding of the primary intent of the question?
Does the response properly address workplace concerns versus being too vague and/or
unapplied?
Does the response clearly discuss both WHAT the student believes and WHY they believe
that?
1. Can a Christian be faithful to principles of Scripture and at the same time attempt
to create a monopoly in which consumers are more vulnerable? Under what
conditions would a Christian attempt to increase the company’s pricing power over
consumers, for example, moving toward a monopoly position in the market?
At first glance students may feel an impulse to argue against “monopolistic” moves that “make consumers
more vulnerable.” Thus, encourage students to make a case for BOTH sides of the argument. For instance,
students should recognize that consumers are not the only stakeholders involved – Christian managers must
also look out for the welfare of investors. In addition, they might think about the fact that “trying” for a
monopoly is not illegal nor inevitable. Assuming no government intervention, a monopoly occurs when
customers find a company’s offerings superior to any others available. At any rate, have students argue
both FOR and AGAINST the proposition in this question.
2. Are there some industries that a Christian business owner would choose not to
invest in because of the nature of the products being sold or because of the
commonly accepted practices that require the believer to compromise religious
beliefs?
Student answers must begin with what standards they would apply to investment choices. It may not be
obvious to some students that Christians should invest in differently than non-Christians – so, encourage
them to think about what goals Christians might have in investing. They might be encouraged to conduct
some on-line research here using such topics as Christian investments or “Christian financial planning.”
In this case, students might think of both the ends and the means. Certainly seeking competitive advantages
is not wrong as an end – in fact, making a company competitive is part of any manager’s responsibilities.
The means employed could well be a problem. Lying, manipulating, price fixing, collusion and other such
means would be outside the Christian boundaries.
4. How can Christian strategic managers manage the balance in their life (being
present for family and for worship), particularly when complex strategic decisions
must be made?
“Balance” is an elusive concept. In addition, what does it mean to achieve such balance at any given time
and over time? Students may suggest a variety of thoughts about achieving a life balance, but here are a
few principles to consider:
• Discipline – balance requires the discipline to establish plans and priorities in our personal life and
to stick to them
• Flexibility – there are times when responding to particular demands may require us to adjust plans
and priorities to accommodate the realities of working
• Self-time – we all face demands from a variety of people with a variety of needs and expectations.
We must learn to take time out for ourselves also – resting, reading and hobbies. While some
would call it “down time” it really is the time that helps us “keep up” with the demands we face.
This discussion is rooted the text discussion in the section “Strategic Thinking and Values.” Encourage
students to be specific both in citing values and in citing how those values might impact strategic thinking.
6. How can the Christian strategic decision maker fully live the eternal principles of
love, justice, and redemption while engaging fully in a competitive market where the
struggle for economic success is never-ending?
This question asks students to focus attention on Exhibit 7-3. The key is not just WHAT the student
believes, but WHY they believe that.
This question relates to the discussion in the text regarding how to integrate Christian faith in the work of
business. Christian executives working in publically traded corporations face both personal and fiduciary
responsibilities. Their faith might be acted out in more private and interpersonal ways. A private company
owned by a Christian would be able to act more broadly and directly.
8. What are the influences that cause a change in the core values on which company
strategy is made?
This focuses student attention on the discussion about “Strategic Thinking and Values.”. In a sense students
are asked to reflect on this section of text “in reverse.” That is, the text discusses how core values are
established – changes in any of these influences might change the core values. Among the influences that
students might suggest are:
• Changes in external conditions (competitors, financial pressures)
• Changes in company ownership
• Changes in top executives
• Changes in industry conditions
9. How influential are the personal values of a company’s founders 10 years after the
company is established? 25 years later? 50 years later?
This question is designed to encourage students to think about how those values might be preserved over
time. Time tends to dilute the commitment to the founding principles. To preserve those values founders
can:
• Keep the company private rather than going public. This allows more control over succeeding
executives and corporate Boards.
• Hire family members into the business – this may strengthen company values by intertwining
them with family values.
• Be careful in all hiring practices – look for those who share a commitment to the original company
values.
• Train all employees to recognize and abide by company values
10. If a company founder dies or retires, how long will the core values that guided the
company strategy continue to have a strong influence?
11. When a company goes public, does this increase the risk that core values will be
changed? Why?
The answer would have to be yes – public companies face pressures to provide adequate returns to
shareholders and often operate in very competitive industry environments.
12. Will the Christian strategic decision maker place more or less emphasis on values
than a non-Christian?
The student responses will vary depending on their views of Christians and non-Christians. Some will
contend that we should expect no difference – that non-Christians do have values, and that Christians
cannot always be depended on to be value-centered, Others will contend that real Christian faith is
transformative and changes a person from the inside (heart of values) out.
13. Should a Christian be willing to become unequally linked with individuals who do
not support fundamental Christian values through a merger or acquisition?
Some students might say that no person, Christian or non-Christian, should become linked with another
person who does not share their values.
Others may cite 2 Corinthians 6:14, Be ye not unequally yoked together with unbelievers: for what
fellowship hath righteousness with unrighteousness? And what communion hath light with darkness?”
Whether this verse necessarily refers to business alliances is a matter of some dispute in the Christian
media.
14. How great are the risks that a company such as Tata Motors will reduce its costs so
much that the product fails to meet minimum customer expectations for
performance and safety?
Low costs do not HAVE to mean low quality. Strategic designing can simplify product design. Careful
deployment of supply chains can reduce costs. There is, of course, always the chance that cars can be made
unsafely, or that performance standards can be unmet. A “free market” will generally take care of many
customer concerns by providing buying options.
15. If a merger requires downsizing of one or both of the firms, should the Christian
manager engage in restraint because these actions have a direct negative economic
effect on the lives of workers who are let go?
Every corporate action has a real impact on real people. “Downsizing” is never easy, and every manager
should be encouraged to act with restraint and seek to make the transition out of the company as humane
and compassionate as possible. Where possible, employees should be provided with as much financial help
as is reasonable.
Several In-class Exercises are designed to engage students in debate and discussion of important
issues.
SUPPLEMENTAL PARADOXES
Strategy tension points are similar in nature to many tensions in management. This is
because strategic issues are inseparable from operational management issues. For example, one
of the tensions in managerial decision making is between watching out for the short-term as well
as the long-run.
Being quick but be thorough. The rapid changes taking place in most industries
requires that strategic managers (and the subordinates who help them) need to be quick when
they analyze their marketplace and their organizations. But they also must be thorough. The
problem is that quickness fights against thoroughness. Younger managers will find this tension
especially troubling. This tension might be less of a problem for seasoned executives who hold
years of wisdom about the marketplace in their minds. But seasoned managers face a different
problem. The strategic thinker needs to develop specific assumptions (theories) about the
marketplace such as what customers and competitors will do. At the same time, the wise
strategic thinker will not hold to these assumptions too tightly. Assumptions should be both
believed and doubted given the fact that managers do not have perfect information or the ability
to assimilate all the details of the market perfectly.
The Paradox of the Internet. As a setting in which to transact business or in other ways
interact with customers the Internet has promised a lot. We believe that information can be made
more widely available through this medium. Purchasing products can be accomplished more
efficiently. However, because the Internet is available to all competitors world-wide, achieving
these and other benefits is more difficult than is first expected. See: Porter, M. E. (2001). Strategy and
the Internet. Harvard Business Review. 79(3), 63 – 78.
Gresham’s law of planning. If left uncontrolled the day-to-day activities will so
consume the mental energy of managers that they are effectively paralyzed to spending time with
the strategic questions. It’s like one manager said, “It’s hard to drain the swamp (the strategic
issue) when you are busy killing alligators (the operational issues). See: Ansoff, H. I. (1987). The
Emerging Paradigm of Strategic Behavior. Strategic Management Journal. 8(6), 501 – 515; March, J. G. & Simon,
H. A. (1993). Organizations. (2nd Ed.). Cambridge, MA: Blackwell. P. 206 – 208; Chandler, A. (1962). Strategy and
Structure. Cambridge, MA: MIT Press; Simon, H. A. (1993). Strategy and Organizational Evolution. Strategic
Management Journal. 14, 131 – 142.
What we want to do – What we should do. The strategic managers not only must walk
the balance between what the company might be able to do and what it reasonably can do. They
also must weigh the strategic alternatives and what they want to do while considering what the
company should do. This requires a keen awareness of clear values. See: Andrews, K. R. (1971). The
Concept of Corporate Strategy, Homewood, IL: Dow Jones – Irwin, Inc.; Vancil, R. F. (1976). Strategy Formulation
in Complex Organizations. Sloan Management Review. 17(2), 1 – 18.
Exploitation – Exploration. Exploring new opportunities slows the process of
exploiting current opportunities. But spending resources on improving current activities makes
exploration less attractive. The skill sets required for effective exploration and innovation can
easily submerge the drives to efficiency. But to be successful leaders, in many situations, must
lead the organization down both pathways. See: Benner, M. J. & Tushman, M. I. (2003). Exploitation,
Exploration, and Process Management: The productivity dilemma revisited. Academy of Management Review.
28(2), 238 – 256; Teece, D. J., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic management.
Strategic Management Journal. 18, 509 – 533; March, J. G. (1991). Exploration and Exploitation in Organizational
Learning, Organizational Science. 2, 71 – 87; Markides, C. C. (1999). A Dynamic View of Strategy. Sloan
Management Review. 40(3), 55 – 63; Clegg, S., da Cunha, J. V., & e Cunha, M. P. (2002). Management Paradoxes:
A relational view. Human Relations. 55(5), 483 – 503.
Attractive industries have entry barriers. Attractive industries are attractive because
the ability to make an economic profit is more or less protected by such things as scale and scope
economies, patents, or government regulations. Thus, firms who want to enjoy profits in these
industries will usually face high entry barriers that make it difficult to get in and successfully
achieve that which is attractive. See: Hamel, G. & Prahalad, C.K. (1994). Competing for the Future. Boston,
MA: Harvard Business School Press.