Chapter 4:

1. List the six steps in the formal planning process. Suppose you manage a local business and you want to launch a new website. What activities would you carry out during each step to create the site?

2. How do strategic, operational, and tactical planning differ? How might the three levels complement one another in an organization?

3. What accounts for the shift from strategic planning to strategic management? In which industries is this essential? Why?

Chapter 5 (Case Study):

Ma Earth Skin Care Tries to Stay Natural

Case Summary:

Going to work for Ma Earth Skin Care was a dream come true for Heather Franklin. She was proud to promote quality beauty products that were produced with a concern for the planets well-being.

As she and her team prepared a promotion campaign for a new product line, Ore Essentials, she was interested to learn that the dye came from a plant extract called orellana. The company was harvesting this fruit with the assistance of a tribe in the Amazon rainforest. During a review of photos, one of the photographers commented that the tribe had gathered the fruit just for the photo shoot. It turns out that the tribe was not interested in farming or growing the fruit. After a little research, Heather discovered that the dye was actually an inexpensive dye purchased from a mainstream supplier.

The next day, Heather asked her boss why the company pretended to care about a remote village if it was actually just a front to brand a product. Heathers boss, Megan McDonough responded, But we do care! We send them tens of thousands of dollars every year. She went on to explain that the company would be glad to purchase all of the fruit from the village to produce the dye if only the tribe members were interested in growing and harvesting it. Megan stated, Our aid has provided a school and a health clinic, not to mention food and clothing. Weve helped the tribe members stay healthy and preserve their language and culture.

Heather tried to reconcile what she was hearing by asking, So, does this mean we are using their culture to build an image for our brand, and in exchange, they get money from us to keep that culture alive? Megan confirmed this was correct. Now Heather had a new challenge could her initial idealism and enthusiasm withstand the disturbing knowledge that she had gained about how Ma Earths pursued its mission?

Questions:

4. What ethical issues is Heather facing in this situation? What possible marketing claims about the companys relationship with the Amazonian tribe would cross a line into unethical territory? What claims could it make ethically?

5. How could Ma Earth create an ethical climate that would help managers such as Heather ensure that they are behaving ethically?

6. How effectively do you think Ma Earth is practicing corporate social responsibility in this situation? Explain the reason behind your evaluation.

Chapter 6:

7. Why is the world economy becoming more integrated? What are the implications of this integration for international managers?

8. Why have franchises been so popular as a method of international expansion in the fast-food industry? Contrast this with high-tech manufacturing where joint ventures and partnerships have been more popular. What accounts for the differences across industries?

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