SlideShare a Scribd company logo
1 of 88
ISSC362
Course Summary
Course : ISSC362 Title : IT Security: Attack & Defense
Length of Course : 8 Faculty :
Prerequisites : N/A Credit Hours : 3
Description
Course Description:
This course examines the techniques and technologies for
penetration of networks, detection of attacks, and
prevention of attacks. This course addresses the techniques, the
technologies, and the methodologies used
by cyber intruders (hackers) to select a target and launch an
attack. Students will gain insight into the motives
and desired goals of hackers as well as effective tools and
techniques used as countermeasures ensuring
data assets remain secure. This course focuses on techniques
and technologies to detect such attacks even
while the attack is in progress; early detection enables the
administrator to track the movements of the
hacker and to discover the intent and goals of the hacker. This
course assesses the various
countermeasures to keep the system out of the “sights” of the
hacker and to keep the hacker out of the
perimeter of the target network. This course also explores the
laws and the legal considerations in
prosecuting computer crime.
Course Scope:
This course will allow students to see how attacks target
networks and the methodology they follow. Students
will also learn how to respond to hacking attacks and how to
fend them off. With the help of the experts in the
Information Systems Security and Assurance Series, the book
will provide examples of information security
concepts and procedures are presented throughout the course.
Page: 1 of 8 Date: 6/21/2020 3:01:15 AM
Objectives
After successfully completing this course, you will be able to:
1. Show how attackers map organizations
2. Describe common port scanning techniques
3. Identify some of the tools used to perform enumeration
4. Explain the significance of wireless security
5. List the issues facing Web servers
6. Describe the characteristics of malware
7. List the ways of detecting Trojans
8. Describe the process of DoS attacks
9. Describe the benefits of automated assessment tools
10. List the components of incident response
11. List the detective methods of IDS
Outline
Week 1: Course Overview Getting Started Introduction to
Ethical Hacking
Activities
Reading: Chapters 1, 2, 3 and 4
PPT Review: Lessons 1, 2 and 3 (Physical Security)
Week 1 Discussion
Lab
Week 2: Footprinting, Port Scanning and Enumeration
Activities
Reading: Chapters 5, 6, and 7
PPT Review: Lessons 3 (Footprinting) and 4
Week 2 Discussion
Lab
Week 3: Web and Database Attacks
Activities
Reading: Chapter 9
PPT Review: Lesson 6
Week 3 Discussion
Lab
Page: 2 of 8 Date: 6/21/2020 3:01:15 AM
Week 4: Malware, Worms, Viruses, Trojans and Backdoors
Activities
Reading: Chapters 10 and 11
PPT Review: Lesson 7
Week 4 Discussion
Lab
Week 5: Network Traffic Analysis
Activities
Reading: Chapters 12 and 13
PPT Review: Lesson 8
Week 5 Discussion
Midterm
Lab
Week 6: Wireless Vulnerabilities
Activities
Reading: Chapter 8
PPT Review: Lesson 5
Week 6 Discussion
Lab
Week 7: Incident Response
Activities
Reading: Chapter 14
PPT Review: Lesson 9 (Incident Response)
Week 7 Discussion
Week 7 Research Paper Due
Lab
Week 8: Defensive Technologies
Activities
Page: 3 of 8 Date: 6/21/2020 3:01:15 AM
Reading: Chapter 15
PPT Review: Lesson 9 (Defense Technologies)
Week 8 Discussion
Final Exam
Lab
Evaluation
Grading will be based on weekly assignments: discussions labs,
quizzes, an individual project paper
(topic selection, outline and paper) and a case study.
There will be eight discussions (3.13% each) counting a total of
25% of the final grade. Answers
should restate the question with supporting sentences using the
terms, concepts, and theories from
the required readings. The key requirement is to express your
idea and then support your position
to demonstrate that you understand the material.
In addition, you are to respond to at least two of your
classmates’ postings by critiquing, supporting or
supplementing the other students’ answers. All responses should
be courteous with sound supporting
sentences. You may respond multiple times within a continuous
discussion with points and counter
points. Duplicate responses will not receive credit.
There will be eight labs (2.5% for each) counting a total of 25%
of the final grade. You can access
labs by selection on Online Labs. Step-by-Step instructions for
each lab are available, and you can
access these files within Lessons. Submit deliverables through
the Assignments link within your
course.
There will be one final exam (25 questions worth 4 points per
question) and one Midterm exam
(25 questions worth 4 points per question) accounting for a total
of 25% of the final grade. Each exam
will consist of 25 multiple choice questions pulled from
chapters covered from week 1 through 5 for
the Midterm and Weeks 1 through 8 for the Final exam.
There will be three exercises during this term counting a total of
25% of the final grade, completed
as follows:
a. Week 2 Topic Selection – selection of topic for the Week 7
Research Paper.
b. Week 4 Outline – outline of topics and subtopics for the
Week 7 Research Paper.
c. Week 7 Research Paper – present research paper on your
chosen topic.
Below is a list of pre-approved topics for the Week 7 Research
Paper:
Protecting IT: A Roadmap for Securing the Enterprise
Best Practices for Network Security
Firewalls: Great Network Security Devices, but Not a "Silver
Bullet"
Solution
Modern Day Attacks Against Firewalls and VPNs
VPN Security Vulnerabilities Exposed
The key to the research assignment is to demonstrate your
understanding of the topics, not to re-word the
text or reference material.
The paper will follow a conventional report format
(introduction, body, conclusion, references). The paper
is to follow the APA style guide, Sixth Edition (available via
bookstores). Also refer to APA’s online
resources: and the APUS web site:
Page: 4 of 8 Date: 6/21/2020 3:01:15 AM
http://apastyle.apa.org/learn/tutorials/basics-tutorial.aspx
http://www.apus.edu/Online-Library/tutorials/apa.htm
Note: Review Announcements and Lessons for additional
instructions and course materials.
Each week you will also have chapter readings assigned, and
PowerPoint presentations to review.
All assignments, labs, discussion questions and quizzes are
required by 11:59 PM Eastern Standard
Time of the Sunday of the week assigned.
Grading:
Name Grade %
Discussions 25.00 %
3.13 %
3.13 %
3.13 %
3.13 %
3.13 %
3.13 %
3.13 %
3.13 %
Week 1 Discussion
Week 2 Discussion
Week 3 Discussion
Week 4 Discussion
Week 5 Discussion
Week 6 Discussion
Week 7 Discussion
Week 8 Discussion
Labs 25.00 %
Week 1 Lab 3.13 %
Week 2 Lab 3.13 %
Week 3 Lab 3.13 %
Week 4 Lab 3.13 %
Week 5 Lab 3.13 %
Week 6 Lab 3.13 %
Week 7 Lab 3.13 %
Week 8 Lab 3.13 %
Quizzes/Exams 25.00 %
ISSC362 Final Exam 12.50 %
ISSC362 Midterm Exam 12.50 %
Exercises 25.00 %
Week 2 Topic Selection 2.50 %
Week 4 Outline 7.50 %
Week 7 Research Paper 15.00 %
Page: 5 of 8 Date: 6/21/2020 3:01:15 AM
Materials
Book Title: Requires CITRIX CLIENT SOFTWARE
INSTALLATION FOR ONLINE VIRTUAL LABS
accessibility - instructions provided inside the classroom.
Author: No Author Specified
Publication Info:
ISBN: N/A
Book Title: Hacker Techniques, Tools, And Incident Handling,
2nd ed. - the VitalSource e-book is provided
inside the classroom
Author: Oriyano
Publication Info: VS-Jones & Bartlett
ISBN: 9781284031713
Book Title: ISSC362 virtual lab manual provided inside the
classroom
Author:
Publication Info: CLASS-Jones & Bartlett
ISBN: 9781284064100
Starting April 2016 this title & edition has moved to
VitalSource. The VitalSource e-book
is provided via the APUS Bookstore. Please visit for more
information.
Software Requirements
1. Microsoft Office (MS Word, MS Excel, MS PowerPoint)
2. Mozilla Firefox (recommended browser)
Course Guidelines
Citation and Reference Style
Attention Please: Students will follow the APA Format as the
sole citation and reference style used in
written work submitted as part of coursework to the University.
Assignments completed in a narrative
essay or composition format must follow the citation style cited
in the APA Format.
Tutoring
Tutor.com offers online homework help and learning resources
by connecting students to certified
tutors for one-on-one help. AMU and APU students are eligible
for 10 free hours* of tutoring provided
by APUS. Tutors are available 24/7 unless otherwise noted.
Tutor.com also has a SkillCenter
Resource Library offering educational resources, worksheets,
videos, websites and career help.
Accessing these resources does not count against tutoring hours
and is also available 24/7. Please
visit the APUS Library and search for 'Tutor' to create an
account.
Late Assignments
Students are expected to submit classroom assignments by the
posted due date and to complete the
course according to the published class schedule. The due date
for each assignment is listed under
Page: 6 of 8 Date: 6/21/2020 3:01:15 AM
http://www.tutor.com/colleges/landing/apus
http://apus.libguides.com/bookstore
each Assignment.
Generally speaking, late work may result in a deduction up to
15% of the grade for each day late, not to
exceed 5 days.
As a working adult I know your time is limited and often out of
your control. Faculty may be more flexible
if they know ahead of time of any potential late assignments.
Turn It In
Faculty may require assignments be submitted to Turnitin.com.
Turnitin.com will analyze a paper and
report instances of potential plagiarism for the student to edit
before submitting it for a grade. In some
cases professors may require students to use Turnitin.com. This
is automatically processed through the
Assignments area of the course.
Academic Dishonesty
Academic Dishonesty incorporates more than plagiarism, which
is using the work of others without
citation. Academic dishonesty includes any use of content
purchased or retrieved from web services
such as CourseHero.com. Additionally, allowing your work to
be placed on such web services is
academic dishonesty, as it is enabling the dishonesty of others.
The copy and pasting of content from
any web page, without citation as a direct quote, is academic
dishonesty. When in doubt, do not
copy/paste, and always cite.
Submission Guidelines
Some assignments may have very specific requirements for
formatting (such as font, margins, etc) and
submission file type (such as .docx, .pdf, etc) See the
assignment instructions for details. In general,
standard file types such as those associated with Microsoft
Office are preferred, unless otherwise
specified.
Disclaimer Statement
Course content may vary from the outline to meet the needs of
this particular group.
Communicating on the Discussion
Discussions are the heart of the interaction in this course. The
more engaged and lively the exchanges,
the more interesting and fun the course will be. Only
substantive comments will receive credit. Although
there is a final posting time after which the instructor will grade
comments, it is not sufficient to wait until
the last day to contribute your comments/questions on the
discussion. The purpose of the discussions is
to actively participate in an on-going discussion about the
assigned content.
“Substantive” means comments that contribute something new
and hopefully important to the
discussion. Thus a message that simply says “I agree” is not
substantive. A substantive comment
contributes a new idea or perspective, a good follow -up
question to a point made, offers a response to a
question, provides an example or illustration of a key point,
points out an inconsistency in an argument,
etc.
As a class, if we run into conflicting view points, we must
respect each individual's own opinion. Hateful
and hurtful comments towards other individuals, students,
groups, peoples, and/or societies will not be
tolerated.
Identity Verification & Live Proctoring
Faculty may require students to provide proof of identity when
submitting assignments or completing
assessments in this course. Verification may be in the form of a
photograph and/or video of the
student’s face together with a valid photo ID, depending on the
assignment format.
Faculty may require live proctoring when completing
assessments in this course. Proctoring may
include identity verification and continuous monitoring of the
student by webcam and microphone
during testing.
Page: 7 of 8 Date: 6/21/2020 3:01:15 AM
University Policies
Student Handbook
Drop/Withdrawal policy
Extension Requests
Academic Probation
Appeals
Disability Accommodations
The mission of American Public University System is to provide
high quality higher education with emphasis
on educating the nation’s military and public service
communities by offering respected, relevant, accessible,
affordable, and student-focused online programs that prepare
students for service and leadership in a
diverse, global society.
Page: 8 of 8 Date: 6/21/2020 3:01:15 AM
http://www.apus.edu/student-handbook/index.htm
http://www.apus.edu/student-handbook/withdrawal/
http://www.apus.edu/student-handbook/extension/
http://www.apus.edu/student-handbook/academic-
probation/index.htm
http://www.apus.edu/student-handbook/appeals-
matrix/index.htm
http://www.apus.edu/student-handbook/Disability-
Accommodations/index.htmCourse
SummaryDescriptionObjectivesOutlineWeek 1: Course
Overview Getting Started Introduction to Ethical HackingWeek
2: Footprinting, Port Scanning and EnumerationWeek 3: Web
and Database AttacksWeek 4: Malware, Worms, Viruses,
Trojans and BackdoorsWeek 5: Network Traffic AnalysisWeek
6: Wireless VulnerabilitiesWeek 7: Incident ResponseWeek 8:
Defensive TechnologiesEvaluationMaterialsCourse
GuidelinesUniversity Policies
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
‫ة‬ ‫عودي‬ ‫س‬ ‫ال‬ ‫ية‬ ‫عرب‬ ‫ال‬ ‫كة‬ ‫ل‬ ‫مم‬ ‫ال‬
‫يم‬ ‫ل‬ ‫ع‬ ‫ت‬ ‫ال‬ ‫وزارة‬
‫ية‬ ‫ترون‬ ‫ك‬ ‫اإلل‬ ‫ة‬ ‫عودي‬ ‫س‬ ‫ال‬ ‫عة‬ ‫جام‬ ‫ال‬
College of Administrative and Financial
Sciences
Assignment 2
Strategic Management (MGT 401)
Deadline: 20/11/2021 @ 23:59
Course Name: Strategic Management
Student’s Name:
Course Code: MGT401
Student’s ID Number:
Semester: First
CRN:
Academic Year:2021-22
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
Marks Obtained/Out of 5
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
· The Assignment must be submitted on Blackboard (WORD
format only) via allocated folder.
· Assignments submitted through email will not be accepted.
· Students are advised to make their work clear and well
presented, marks may be reduced for poor presentation. This
includes filling your information on the cover page.
· Students must mention question number clearly in their
answer.
· Late submission will NOT be accepted.
· Avoid plagiarism, the work should be in your own words,
copying from students or other resources without proper
referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12,
double-spaced) font. No pictures containing text will be
accepted and will be considered plagiarism).
· Submissions without this cover page will NOT be accepted.
Assignment No 2: Case study
· Submission Date by students: Before the end ofWeek- 11th
· Weight:5 Marks
· Place of Submission: Students Grade Centre
· Learning Outcomes:
1. Describe the different issues related to environmental
scanning, strategy formulation, and strategy implementation in
diversified organizations. (Lo2)
2. Explain the contribution of functional, business and
corporate strategies in the competitive advantage of the
organization. (Lo3)
3. Communicate issues, results and recommendations
coherently, and effectively regarding appropriate strategies for
different situations (Lo 6)
Read carefully the case study No 24 from your textbook (Best
Buy Co. Inc: Sustainable customer centricity Model?) and
answer the following questions:
1. Identify opportunities and threats as well as strengths and
weakness of the company 1pt
2. What is/are the strategy (ies) used by Best Buy? 1 pt
3. Explain the contribution of various functional areas of Best
Buy Company to its well-being. 1 pt
4. Determine the issues affecting to the strategic competitive
advantage of the company. 1pt
5. Recommend solutions for Best Buy to improve its
competitive advantage. 1pt
Notes:
· Copy/paste the phrases from the text is not acceptable. You
must use your own words.
· Using the terminology developed in the course of strategic
Management is highly valued.
Best Buy Co. InC., headquartered In rIChfIeld, MInnesota, was
a specialty retailer
of consumer electronics. It operated over 1100 stores in the
United States, accounting
for 19% of the market. With approximately 155,000 employees,
it also ran more than
2800 stores in Canada, Mexico, China, and Turkey. The
company’s subsidiaries
included Geek Squad, Magnolia Audio Video, and Pacific Sales.
In Canada, Best Buy
operated under both the Best Buy and Future Shop labels.
Best Buy’s mission was to make technology deliver on its
promises to customers. To
accomplish this, Best Buy helped customers realize the benefits
of technology and techno-
logical changes so they could enrich their lives in a variety of
ways through connectivity: “To
make life fun and easy,”1 as Best Buy put it. This was what
drove the company to continually
increase the tools to support customers in the hope of providing
end-to-end technology solutions.
As a public company, Best Buy’s top objectives were sustained
growth and earnings. This
was accomplished in part by constantly reviewing its business
model to ensure it was satisfying
customer needs and desires as effectively and completely as
possible. The company strived to have
not only extensive product offerings but also highly trained
employees with extensive product
625
C A S E 22
Best Buy Co. Inc. (2009):
Sustainable Customer-Centricity
Model?
Alan N. Hoffman
Bentley University
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 625
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
This case was prepared by Professor Alan N. Hoffman, Bentley
University and Erasmus University. Copyright ©
2015 by Alan N. Hoffman. The copyright holder is solely
responsible for case content. Reprint permission is solely
granted to the publisher, Prentice Hall, for Strategic
Management and Business Policy, 14th Edition (and the interna-
tional and electronic versions of this book) by the copyright
holder, Alan N. Hoffman. Any other publication of the
case (translation, any form of electronics or other media) or sale
(any form of partnership) to another publisher will
be in violation of copyright law, unless Alan N. Hoffman has
granted an additional written permission. Reprinted
by permission. The author would like to thank MBA students
Kevin Clark, Leonard D’Andrea, Amanda Genesky,
Geoff Merritt, Chris Mudarri, and Dan Fowler for their
research. No part of this publication may be copied, stored,
transmitted, reproduced, or distributed in any form or medium
whatsoever without the permission of the copyright
owner, Alan N. Hoffman.
Z22_WHEE0811_14_GE_CA22.indd 625 5/20/14 12:00 PM
626 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable
Customer-Centricity Model?
knowledge. The company encouraged its employees to go out of
their way to help customers un-
derstand what these products could do and how customers could
get the most out of the products
they purchased. Employees recognized that each customer was
unique and thus determined the
best method to help that customer achieve maximum enjoyment
from the product(s) purchased.
From a strategic standpoint, Best Buy moved from being a
discount retailer (a low-price
strategy) to a service-oriented firm that relied on a
differentiation strategy. In 1989, Best Buy
changed the compensation structure for sales associates from
commission-based to non-
commissioned-based, which resulted in consumers having more
control over the purchasing pro-
cess and in cost savings for the company (the number of sales
associates was reduced). In 2005,
Best Buy took customer service a step further by moving from
peddling gadgets to a customer-
centric operating model. It was now gearing up for another
change to focus on store design and
providing products and services in line with customers’ desire
for constant connectivity.
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 626
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
Company History2
From Sound of Music to Best Buy
Best Buy was originally known as Sound of Music. Incorporated
in 1966, the company started
as a retailer of audio components and expanded to retailing
video products in the early 1980s
with the introduction of the videocassette recorder to its product
line. In 1983, the company
changed its name to Best Buy Co. Inc. (Best Buy). Shortly
thereafter, Best Buy began operat-
ing its existing stores under a “superstore” concept by
expanding product offerings and using
mass marketing techniques to promote those products.
Best Buy dramatically altered the function of its sales staff in
1989. Previously, the sales
staff worked on a commission basis and was more proactive in
assisting customers coming
into the stores as a result. Since 1989, however, the commission
structure has been terminated
and sales associates have developed into educators that assist
customers in learning about the
products offered in the stores. The customer, to a large extent,
took charge of the purchasing
process. The sales staff’s mission was to answer customer
questions so that the customers
could decide which product(s) fit their needs. This differed
greatly from their former mission
of simply generating sales.
In 2000, the company launched its online retail store:
BestBuy.com. This allowed
customers a choice between visiting a physical store and
purchasing products online, thus
expanding Best Buy’s reach among consumers.
Expansion Through Acquisitions
In 2000, Best Buy began a series of acquisitions to expand its
offerings and enter international
markets:
2000: Best Buy acquired Magnolia Hi-Fi Inc., a high-end
retailer of audio and video products
and services, which became Magnolia Audio Video in 2004.
This acquisition allowed
Best Buy access to a set of upscale customers.
2001: Best Buy entered the international market with the
acquisition of Future Shop Ltd, a
leading consumer electronics retailer in Canada. This helped
Best Buy increase revenues,
gain market share, and leverage operational expertise. The same
year, Best Buy also
opened its first Canadian store. In the same year, the company
purchased Musicland, a
mall-centered music retailer throughout the United States
(divested in 2003).
2002: Best Buy acquired Geek Squad, a computer repair service
provider, to help develop a
technological support system for customers. The retailer began
by incorporating in-store
Geek Squad centers in its 28 Minnesota stores, then expanding
nationally, and eventually
internationally in subsequent years.
Z22_WHEE0811_14_GE_CA22.indd 626 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 627
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer -
Centricity Model? 627
2005: Best Buy opened the first Magnolia Home Theater “store-
within-a-store” (located
within the Best Buy complex).
2006: Best Buy acquired Pacific Sales Kitchen and Bath Centers
Inc. to develop a new
customer base: builders and remodelers. The same year, Best
Buy also acquired a 75%
stake in Jiangsu Five Star Appliance Co., Ltd, a China-based
appliance and consumer
electronics retailer. This enabled the company to access the
Chinese retail market and led
to the opening of the first Best Buy China store on January 26,
2007.
2007: Best Buy acquired Speakeasy Inc., a provider of
broadband, voice, data, and informa-
tion technology services, to further its offering of technological
solutions for customers.
2008: Through a strategic alliance with the Carphone
Warehouse Group, a UK-based provider
of mobile phones, accessories, and related services, Best Buy
Mobile was developed.
After acquiring a 50% share in Best Buy Europe (with 2414
stores) from the Carphone
Warehouse, Best Buy intended to open small-store formats
across Europe in 2011.3 Best
Buy also acquired Napster, a digital download provider, through
a merger to counter the
falling sales of compact discs. The first Best Buy Mexico store
was opened.
2009: Best Buy acquired the remaining 25% of Jiangsu Five
Star. Best Buy Mobile moved
into Canada.
Industry Environment
Industry Overview
Despite the negative impact the financial crisis had on
economies worldwide, in 2008 the
consumer electronics industry managed to grow to a record high
of US$694 billion in sales—a
nearly 14% increase over 2007. In years immediately prior, the
growth rate was similar: 14%
in 2007 and 17% in 2006. This momentum, however, did not
last. Sales dropped 2% in 2009,
the first decline in 20 years for the electronics giant.
A few product segments, including televisions, gaming, mobile
phones, and Blu-ray players,
drove sales for the company. Television sales, specifically LCD
units, which accounted for 77%
of total television sales, were the main driver for Best Buy, as
this segment alone accounted for
15% of total industry revenues. The gaming segment continued
to be a bright spot for the indus-
try as well, as sales were expected to have tremendous room for
growth. Smartphones were an-
other electronics industry segment predicted to have a high
growth impact on the entire industry.
The consumer electronics industry had significant potential for
expansion into the global
marketplace. There were many untapped markets, especially
newly developing countries.
These markets were experiencing the fastest economic growth
while having the lowest own-
ership rate for gadgets.4 Despite the recent economic downturn,
the future for this industry
was optimistic. A consumer electronics analyst for the European
Market Research Institute
predicted that the largest growth will be seen in China (22%),
the Middle East (20%), Russia
(20%), and South America (17%).5
Barriers to Entry
As globalization spread and use of the Internet grew, barriers to
entering the consumer
electronics industry were diminished. When the industry was
dominated by brick-and-mortar
companies, obtaining the large capital resources needed for
entry into the market was a barrier
for those looking to gain any significant market share.
Expanding a business meant purchas-
ing or leasing large stores that incurred high initial and
overhead costs. However, the Internet
significantly reduced the capital requirements needed to enter
the industry. Companies like
Amazon.com and Dell utilized the Internet to their advantage
and gained valuable market share.
Z22_WHEE0811_14_GE_CA22.indd 627 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 628
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
628 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable
Customer-Centricity Model?
The shift toward Internet purchasing also negated another once
strong barrier to entry: cus-
tomer loyalty. The trend was that consumers would research
products online to determine which
one they intended to purchase and then shop around on the
Internet for the lowest possible price.
Even though overall barriers were diminished, there were still a
few left, which a company
like Best Buy used to its advantage. The first, and most
significant, was economies of scale. With
over 1000 locations, Best Buy used its scale to obtain cost
advantages from suppliers due to high
quantity orders. Another advantage was in advertising. Large
firms had the ability to increase
advertising budgets to deter new entrants into the market.
Smaller companies generally did not
have the marketing budgets for massive television campaigns,
which were still one of the most
effective marketing strategies available to retailers. Although
Internet sales were growing, the in-
dustry was still dominated by brick-and-mortar stores. Most
consumers looking for electronics—
especially major electronics—felt a need to actually see their
prospective purchases in person.
Having the ability to spend heavily on advertising helped
increase foot traffic to these stores.
$0
$5,000I
n
M
ill
io
n
s
$10,000
$15,000
$20,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
2005
2006
2007
2008
2009
2010
ExHIbIt 1
Quarterly Sales, Best
Buy Co., Inc.
SOURCE: Best Buy Co., Inc.
Internal Environment
Finance
While Best Buy’s increase in revenue was encouraging (see
Exhibit 1), recent growth had
been fueled largely by acquisition, especially Best Buy’s fiscal
year 2009 revenue growth. At
the same time, net income and operating margins had been
declining (see Exhibits 2 and 3).
Although this could be a function of increased costs, it was
more likely due to pricing pres-
sure. Given the current adverse economic conditions, prices of
many consumer electronic
products had been forced down by economic and competitive
pressures. These lower prices
caused margins to decline, negatively affecting net income and
operating margins.
Best Buy’s long-term debt increased substantially from fiscal
2008 to 2009 (see Exhibit 4),
which was primarily due to the acquisition of Napster and Best
Buy Europe. The trend in
available cash has been a mirror image of long-term debt.
Available cash increased from fiscal
2005 to 2008 and then was substantially lower in 2009 for the
same reason.
$0
$200
$400
In
M
ill
io
n
s
$600
$800
$1,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
2005
2006
2007
2008
2009
2010
ExHIbIt 2
Quarterly Net
Income, Best
Buy Co., Inc.
SOURCE: Best Buy Co., Inc.
Z22_WHEE0811_14_GE_CA22.indd 628 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 629
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-
Centricity Model? 629
While the change in available cash and long-term debt were not
desirable, the bright side
was that this situation was due to the acquisition of assets,
which led to a significant increase
in revenue for the company. Ultimately, the decreased
availability of cash would seem to
be temporary due to the circumstances. The more troubling
concern was the decline in net
income and operating margins, which Best Buy needed to find a
way to turn around. If the
problems with net income and operating margins were fixed, the
trends in cash and long-term
debt would also begin to turn around.
At first blush, the increase in accounts receivable and inventory
was not necessarily alarm-
ing since revenues were increasing during this same time period
(see Exhibit 5). However,
closer inspection revealed a 1% increase in inventory from
fiscal 2008 to 2009 and a 12.5% in-
crease in revenue accompanied by a 240% increase in accounts
receivable. This created a poten-
tial risk for losses due to bad debts. (For complete financial
statements, see Exhibits 6 and 7.)
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
2005
2006
2007
2008
2009
2010
ExHIbIt 3
Operating Margin,
Best Buy Co., Inc.
SOURCE: Best Buy Co., Inc.
$0
$500
$1,000
In
M
ill
io
n
s
$1,500
$2,000
2005 2006 2007 2008 2009
Long term Debit
Cash
ExHIbIt 4
Long-Term Debt
and Cash, Best
Buy Co., Inc.
SOURCE: Best Buy Co., Inc.
$0
$1,000
$2,000
$3,000
$4,000
$5,000
2005 2006 2007 2008 2009
Inventory
Accounts receivable
ExHIbIt 5
Accounts Receivable
and Inventory, Best
Buy Co., Inc.
SOURCE: Best Buy Co., Inc.
Z22_WHEE0811_14_GE_CA22.indd 629 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 630
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
630 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable
Customer-Centricity Model?
ExHIbIt 6 Consolidated Balance Sheets, Best Buy Co., Inc. ($ in
millions, except per share and share amounts)
February 28, 2009 March 1, 2008
Assets
Current assets:
Cash and cash equivalents $498 $1,438
Short-term investments 11 64
Receivables 1,868 549
Merchandise inventories 4,753 4,708
Other current assets 1,062 583
Total current assets 8,192 7,342
Property and equipment:
Land and buildings 755 732
Leasehold improvements 2,013 1,752
Fixtures and equipment 4,060 3,057
Property under capital lease 112 67
6,940 5,608
Less accumulated depreciation 2,766 2,302
Net property and equipment 4,174 3,306
Goodwill 2,203 1,088
Tradenames 173 97
Customer relationships 322 5
Equity and other investments 395 605
Other assets 367 315
Total assets $15,826 $12,758
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable $4,997 $4,297
Unredeemed gift card liabilities 479 531
Accrued compensation and related expenses 459 373
Accrued liabilities 1,382 975
Accrued income taxes 281 404
Short-term debt 783 156
Current portion of long-term debt 54 33
Total current liabilities 8,435 6,769
Long-term liabilities 1,109 838
Long-term debt 1,126 627
Minority interests 513 40
Shareholders’ equity:
Preferred stock, $1.00 par value: Authorized — 400,000 shares;
Issued
and outstanding — none — —
Common stock, $0.10 par value: Authorized — 1.0 billion
shares; Issued and
outstanding — 413,684,000 and 410,578,000 shares,
respectively 41 41
Additional paid-in capital 205 8
Retained earnings 4,714 3,933
Accumulated other comprehensive (loss) income (317) 502
Total shareholders’ equity 4,643 4,484
Total liabilities and shareholders’ equity $15,826 $12,758
SOURCE: Best Buy Co., Inc. 2009 Form 10-K, p. 56.
Z22_WHEE0811_14_GE_CA22.indd 630 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 631
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer -
Centricity Model? 631
Best Buy’s marketing goals were four-fold: (1) to market
various products based on the
customer-centricity operating model, (2) to address the needs of
customer lifestyle groups,
(3) to be at the forefront of technological advances, and (4) to
meet customer needs with end-
to-end solutions.
Best Buy prided itself on customer centricity that catered to
specific customer needs and
behaviors. Over the years, the retailer created a portfolio of
products and services that comple-
mented one another and added to the success of the business.
These products included seven
distinct brands domestically, as well as other brands and stores
internationally:
Best Buy: This brand offered a wide variety of consumer
electronics, home office products,
entertainment software, appliances, and related services.
Best Buy Mobile: These stand-alone stores offered a wide
selection of mobile phones, acces-
sories, and related e-services in small-format stores.
Geek Squad: This brand provided residential and commercial
product repair, support, and
installation services both in-store and onsite.
Fiscal Years Ended
February 28,
2009
March 1,
2008
March 3,
2007
Revenue $45,015 $40,023 $35,934
Cost of goods sold 34,017 30,477 27,165
Gross profit 10,998 9,546 8,769
Selling, general and administrative expenses 8,984 7,385 6,770
Restructuring charges 78 — —
Goodwill and tradename impairment 66 — —
Operating income
Other income (expense)
Investment income and other 35 129 162
Investment impairment (111) — —
Interest expense (94) (62) (31)
Earnings before income tax expense, minority
interests and equity in income (loss) of affiliates
Income tax expense 674 815 752
Minority interests in earnings (30) (3) (1)
Equity in income (loss) of affiliates 7 (3) —
Net earnings $1,003 $1,407 $1,377
Earnings per share
Basic $2.43 $3.20 $2.86
Diluted $2.39 $3.12 $2.79
Weighted-average common shares outstanding
(in millions)
Basic 412.5 439.9 482.1
Diluted 422.9 452.9 496.2
1,870 2,161 1,999
1,700 2,228 2,130
ExHIbIt 7
Consolidated
Statements of
Earnings, Best
Buy Co., Inc. ($ in
millions, except per
share amounts)
SOURCE: Best Buy Co., Inc. 2009 Form 10-K, p. 57.
Marketing
Z22_WHEE0811_14_GE_CA22.indd 631 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 632
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
632 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable
Customer-Centricity Model?
Magnolia Audio Video: This brand offered high-end audio and
video products and related
services.
Napster: This brand was an online provider of digital music.
Pacific Sales: This brand offered high-end home improvement
products, primarily including
appliances, consumer electronics, and related services.
Speakeasy: This brand provided broadband, voice, data, and
information technology services
to small businesses.
Starting in 2005, Best Buy initiated a strategic transition to a
customer-centric operating
model, which was completed in 2007. Prior to 2005, the
company focused on customer groups
such as affluent professional males, young entertainment
enthusiasts, upscale suburban moth-
ers, and technologically advanced families.6 After the
transition, Best Buy focused more on
customer lifestyle groups such as affluent suburban families,
trendsetting urban dwellers, and
the closely knit families of Middle America.7 To target these
various segments, Best Buy
acquired firms with aligned strategies, which were used as a
competitive advantage against its
strongest competition, such as Circuit City and Wal-Mart. The
acquisitions of Pacific Sales,
Speakeasy, and Napster, along with the development of Best
Buy Mobile, created more prod-
uct offerings, which led to more profits.
Marketing these different types of products and services was a
difficult task. That was
why Best Buy’s employees had more training than competitors.
This knowledge service was
a value-added competitive advantage. Since the sales employees
no longer operated on a
commission-based pay structure, consumers could obtain
knowledge from salespeople
without being subjected to high-pressure sales techniques. This
was generally seen to enhance
customer shopping satisfaction.
Operations
Best Buy’s operating goals included increasing revenues by
growing its customer base, gain-
ing more market share internationally, successfully
implementing marketing and sales strate-
gies in Europe, and having multiple brands for different
customer lifestyles through M&A
(Merger and Acquisition).
Domestic Best Buy store operations were organized into eight
territories, with each ter-
ritory divided into districts. A retail field officer oversaw store
performance through district
managers, who met with store employees on a regular basis to
discuss operations strategies
such as loyalty programs, sales promotion, and new product
introductions.8 Along with do-
mestic operations, Best Buy had an international operation
segment, originally established in
connection with the acquisition of Canada-based Future Shop.9
In fiscal 2009, Best Buy opened up 285 new stores in addition
to the European acquisition
of 2414 Best Buy Europe stores. It relocated 34 stores and
closed 67 stores.
Human Resources
The objectives of Best Buy’s human resources department were
to provide consumers with the
right knowledge of products and services, to portray the
company’s vision and strategy on an
everyday basis, and to educate employees on the ins and outs of
new products and services.
Best Buy employees were required to be ethical and
knowledgeable. This principle started
within the top management structure and filtered down from the
retail field officer through
district managers, and through store managers to the employees
on the floor. Every employee
had to have the company’s vision embedded in their service and
attitude.
Z22_WHEE0811_14_GE_CA22.indd 632 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 633
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer -
Centricity Model? 633
Despite Best Buy’s efforts to train an ethical and knowledgeable
employee force, there
were some allegations and controversy over Best Buy
employees, which gave the company
a black eye in the public mind. One lawsuit claimed that Best
Buy employees had misrepre-
sented the manufacturer’s warranty in order to sell its own
product service and replacement
plan. The lawsuit accused Best Buy of “entering into a
corporate-wide scheme to institute
high-pressure sales techniques involving the extended
warranties” and “using artificial barri-
ers to discourage consumers who purchased the ‘complete
extended warranties’ from making
legitimate claims.”10
In a more recent case (March 2009), the U.S. District Court
granted Class Action
certification to allow plaintiffs to sue Best Buy for violating its
“Price Match” policy.
According to the ruling, the plaintiffs alleged that Best Buy
employees would aggressively
deny consumers the ability to apply the company’s “price match
guarantee.”11 The suit also
alleged that Best Buy had an undisclosed “Anti-Price Matching
Policy,” where the company
told its employees not to allow price matches and gave financial
bonuses to employees who
complied.
Competition
Brick-and-Mortar Competitors
Wal-Mart Stores Inc., the world’s largest retailer, with revenues
over US$405 billion, operated
worldwide and offered a diverse product mix with a focus on
being a low-cost provider. In
recent years, Wal-Mart increased its focus on grabbing market
share in the consumer electron-
ics industry. In the wake of Circuit City’s liquidation,12 Wal -
Mart was stepping up efforts by
striking deals with Nintendo and Apple that would allow each
company to have their own
in-store displays. Wal-Mart also considered using Smartphones
and laptop computers to drive
growth.13 It was refreshing 3500 of its electronics departments
and was beginning to offer a
wider and higher range of electronic products. These efforts
should help Wal-Mart appeal to
the customer segment looking for high quality at the lowest
possible price.14
GameStop Corp. was the leading video game retailer with sales
of almost US$9 billion as
of January 2009, in a forecasted US$22 billion industry.
GameStop operated over 6000 stores
throughout the United States, Canada, Australia, and Europe, as
a retailer of both new and
used video game products including hardware, software, and
gaming accessories.15
The advantage GameStop had over Best Buy was the number of
locations: 6207 GameStop
locations compared to 1023 Best Buy locations. However, Best
Buy seemed to have what it took
to overcome this advantage—deep pockets. With significantly
higher net income, Best Buy
could afford to take a hit to its margins and undercut GameStop
prices.16
RadioShack Corp. was a retailer of consumer electronics goods
and services, including
flat panel televisions, telephones, computers, and consumer
electronics accessories. Although
the company grossed revenues of over US$4 billion from 4453
locations, RadioShack consis-
tently lost market share to Best Buy. Consumers had a
preference for RadioShack for audio
and video components, yet preferred Best Buy for their big box
purchases.17
Second tier competitors were rapidly increasing. Wholesale
shopping units were becom-
ing more popular, and companies such as Costco and BJ’s had
increased their piece of the
consumer electronics pie over the past few years. After Circuit
City’s bankruptcy, mid-level
electronics retailers like HH Gregg and Ultimate Electronics
were scrambling to grab Circuit
City’s lost market share. Ultimate Electronics, owned by Mark
Wattles, who was a major
investor in Circuit City, had a leg up on his competitors.
Wattles was on Circuit City’s board
of executives and had firsthand access to profitable Circuit City
stores. Ultimate Electronics
planned to expand its operations by at least 20 stores in the near
future.
Z22_WHEE0811_14_GE_CA22.indd 633 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 634
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
634 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable
Customer-Centricity Model?
Amazon.com Inc., since 1994, had grown into the United States’
largest online retailer with
revenues of over US$19 billion in 2008 by providing just about
any product imaginable
through its popular website. Created as an online bookstore,
Amazon soon ventured into vari-
ous consumer electronics product categories including
computers, televisions, software, video
games, and much more.18
Amazon.com gained an advantage over its supercenter
competitors because it was able to
maintain a lower cost structure compared to brick-and-mortar
companies like Best Buy. Amazon
was able to push those savings through to its product pricing
and selection/diversification. With
an increasing trend in the consumer electronics industry to shop
online, Amazon.com was posi-
tioned perfectly to maintain strong market growth and
potentially steal some market share away
from Best Buy.
Netflix Inc. was an online video rental service, offering
selections of DVDs and Blu-ray
discs. Since its establishment in 1997, Netflix had grown into a
US$1.4 billion company.
With over 100,000 titles in its collection, the company shipped
for free to approximately
10 million subscribers. Netflix began offering streaming
downloads through its website,
which eliminated the need to wait for a DVD to arrive.
Netflix was quickly changing the DVD market, which had
dramatically impacted brick-
and-mortar stores such as Blockbuster and Hollywood Video
and retailers who offered DVDs
for sale. In a responsive move, Best Buy partnered with
CinemaNow to enter the digital movie
distribution market and counter Netflix and other video rental
providers.19
Online Competitors
Core Competencies
Customer-Centricity Model
Most players in the consumer electronics industry focused on
delivering products at the lowest
cost (Wal-Mart—brick-and-mortar; Amazon—web-based). Best
Buy, however, took a differ-
ent approach by providing customers with highly trained sales
associates who were available
to educate customers regarding product features. This allowed
customers to make informed
buying decisions on big-ticket items. In addition, with the Geek
Squad, Best Buy was able to
offer and provide installation services, product repair, and
ongoing support. In short, Best Buy
provided an end-to-end solution for its customers.
Best Buy used its customer-centricity model, which was built
around a significant data-
base of customer information, to construct a diversified
portfolio of product offerings. This
let the company offer different products in different stores in a
manner that matched customer
needs. This in turn helped keep costs lower by shipping the
correct inventory to the correct
locations. Since Best Buy’s costs were increased by the high
level of training needed for sales
associates and service professionals, it had been important that
the company remain vigilant
in keeping costs down wherever it could without sacrificing
customer experience.
The tremendous breadth of products and services Best Buy was
able to provide allowed
customers to purchase all components for a particular need
within the Best Buy family.
For example, if a customer wanted to set up a first-rate audio-
visual room at home, he or
she could go to the Magnolia Home Theater store-within-a-store
at any Best Buy location
and use the knowledge of the Magnolia or Best Buy associate in
the television and audio
areas to determine which television and surround sound theater
system best fit their needs.
The customer could then employ a Geek Squad employee to
install and set up the televi-
sion and home theater system. None of Best Buy’s competitors
offered this extensive level
of service.
Z22_WHEE0811_14_GE_CA22.indd 634 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 635
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-
Centricity Model? 635
Through its series of acquisitions, Best Buy had gained valuable
experience in the process of
integrating companies under the Best Buy family. The ability to
effectively determine where
to expand was important to the company’s ability to
differentiate itself in the marketplace.
Additionally, Best Buy was also successfully integrating
employees from acquired compa-
nies. Best Buy had a significant global presence, which was
important because of the maturing
domestic market. This global presence provided the company
with insights into worldwide
trends in the consumer electronics industry and afforded access
to newly developing markets.
Best Buy used this insight to test products in different markets
in its constant effort to meet
and anticipate customer needs.
Successful Acquisitions
Retaining Talent
Analyzing Circuit City’s demise, many experts concluded one
of the major reasons for the
company’s downfall was that Circuit City let go of their most
senior and well-trained sales
staff in order to cut costs. Best Buy, on the other hand, had a
reputation for retaining talent and
was widely recognized for its superior service. Highly trained
sales professionals had become
a unique resource in the consumer electronics industry, where
technology was changing at an
unprecedented rate, and was a significant source of competitive
advantage.
Challenges Ahead
Economic Downturn
Electronics retailers like Best Buy sold products that could be
described as “discretionary
items, rather than necessities.”20 During economic recessions,
however, consumers had less
disposable income to spend. While there was optimism about a
possible economic turnaround
in 2010 or 2011, if the economy continued to stumble, this
could present a real threat to sellers
of discretionary products.
In order to increase sales revenues, many retailers, including
Best Buy, offered customers
low-interest financing through their private-label credit cards.
These promotions were tremen-
dously successful for Best Buy. From 2007 to 2009, these
private-label credit card purchases
accounted for 16%–18% of Best Buy’s domestic revenue. Due
to the credit crisis, however,
the Federal Reserve issued new regulations that could restrict
companies from offering de-
ferred interest financing to customers. If Best Buy and other
retailers were unable to extend
these credit lines, it could have a tremendous negative impact
on future revenues.21
Pricing and Debt Management
The current depressed economic conditions, technological
advances, and increased competi-
tion put a tremendous amount of pricing pressure on many
consumer electronics products.
This was a concern for all companies in this industry. The fact
that Best Buy did not compete
strictly on price structure alone made this an even bigger
concern. Given the higher costs that
Best Buy incurred training employees, any pricing pressure that
decreased margins put stress
on Best Buy’s financial strength. In addition, the recent
acquisition of Napster and the 50%
stake in Best Buy Europe significantly increased Best Buy’s
debt and reduced available cash.
Even in prosperous times, debt management was a key factor in
any company’s success, and
it became even more important during the economic downturn.
(See Exhibits 6 and 7 for Best
Buy’s financial statements.)
Z22_WHEE0811_14_GE_CA22.indd 635 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 636
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
636 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable
Customer-Centricity Model?
As technology improved, product life cycles, as well as prices,
decreased. As a result, margins
decreased. Under Best Buy’s service model, shorter product life
cycles increased training
costs. Employees were forced to learn new products with higher
frequency. This was not only
costly but also increased the likelihood that employees would
make mistakes, thereby tarnish-
ing Best Buy’s service record and potentially damaging one of
its most important, if not its
most important, differentiators. In addition, more resources
would be directed at research of
new products to make sure Best Buy continued to offer the
products consumers desire.
One social threat to the retail industry was the growing
popularity of the online market-
place. Internet shoppers could browse sites searching for the
best deals on specific products.
This technology allowed consumers to become more educated
about their purchases, while
creating increased downward price pressure. Ambitious
consumers could play the role of a
Best Buy associate themselves by doing product comparisons
and information gathering with-
out a trip to the store. This emerging trend created a direct
threat to companies like Best Buy,
which had 1023 stores in its domestic market alone. One way
Best Buy tried to continue the
demand for brick-and-mortar locations and counter the threat of
Internet-based competition
was by providing value-added services in stores. Customer
service, repairs, and interactive
product displays were just a few examples of these services.22
Products and Service
Leadership
The two former CEOs of Best Buy, Richard Shultze and Brad
Anderson, were extremely suc-
cessful at making the correct strategic moves at the appropriate
times. With Brad Anderson
stepping aside in June 2009, Brian Dunn replaced him as the
new CEO. Although Dunn
worked for the company for 24 years and held the key positions
of COO and President during
his tenure, the position of CEO brought him to a whole new
level and presented new chal-
lenges, especially during the economic downturn. He was
charged with leading Best Buy into
the world of increased connectivity. This required a revamping
of products and store setups to
serve customers in realizing their connectivity needs. This was
a daunting task for an experi-
enced CEO, let alone a new CEO who had never held the
position.
Wal-Mart
Best Buy saw its largest rival, Circuit City, go bankrupt.
However, a new archrival,
Wal-Mart, was expanding into consumer electronics and
stepping up competition in a price
war Wal-Mart hoped to win. Best Buy needed to face the
competition not by lowering prices,
but by coming up with something really different. Best Buy had
to determine the correct path
to improve its ability to differentiate itself from competitors,
which was increasingly difficult
given an adverse economic climate and the company’s financial
stress. How Best Buy could
maintain innovative products, top-notch employees, and
superior customer service while
facing increased competition and operational costs was an open
question.
N o t e s
1. Best Buy Co. Inc., Form 10-K. Securities and Exchange
Commission, February 28, 2009.
2. Ibid.
3. Ibid.
4. Greg Keller, “Threat Grows by iPod and Laptop,” The
Colum-
bus Dispatch, May 18, 2009, http://www.dispatch.com/live/
content/business/stories/2009/05/18/greener_gadgets.ART_
ART_05-18-09_A9_TMDSJR8.html (July 10, 2009).
5. Larry Magid, “Consumer Electronics: Future Looks Bright,”
CBSNews.com, May 2, 2008, http://www.cbsnews.com/stories/
2008/05/02/scitech/pcanswer/main4067008.shtml (July 10,
2009).
6. Best Buy Co. Inc., Form 10-K, 2009.
Z22_WHEE0811_14_GE_CA22.indd 636 5/20/14 12:00 PM
# 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 637
Title: Strategic Management and Business Policy Server:
Jobs4
C/M/Y/K
Short / Normal
DESIGN SERVICES OF
S4CARlISlE
Publishing Services
C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-
Centricity Model? 637
7. Ibid.
8. Ibid.
9. Ibid.
10. Manhattan Institute for Policy Research, “They’re Making a
Federal Case Out of It . . . in State Court,” Civil Justice Report
3,
2001, http://www.manhattan-institute.org/html/cjr_3_part2.htm.
11. “Best Buy Bombshell!” HD Guru, March 21, 2009, http://
hdguru.com/best-buy-bombshell/.
12. Circuit City Stores Inc. was an American retailer in brand-
name
consumer electronics, personal computers, entertainment soft-
ware, and (until 2000) large appliances. The company opened
its
first store in 1949 and liquidated its final American retail stores
in 2009 following a bankruptcy filing and subsequent failure to
find a buyer. At the time of liquidation, Circuit City was the
second-largest U.S. electronics retailer, after Best Buy.
13. Z. Bissonnette, “Wal-Mart Looks to Expand Electronics
Business,”
Bloggingstocks.com, May 18, 2009, http://www.bloggingstocks
.com/2009/05/18/wal-mart-looks-to-expand-electronics-
business/.
14. N. Maestrie, “Wal-Mart Steps Up Consumer Electronics
Push,” Reuters, May 19, 2009, http://www.reuters.com/article/
technologyNews/idUSTRE54I4TR20090519.
15. Capital IQ, “GameStop Corp. Corporate Tearsheet,” Capital
IQ,
2009.
16. E. Sherman, “GameStop Faces Pain from Best Buy, Down-
loading,” BNET Technology, June 24, 2009, http://industry
.bne t .com /tec h nol ogy/ 1000232 9 /g a mestop-faces-pain-
from-best-buy-downloading/.
17. T. Van Riper, “RadioShack Gets Slammed,” Forbes.com,
February 17, 2006,
http://www.forbes.com/2006/02/17/radioshack-
edmondson-retail_cx_tr_0217radioshack.html.
18. Capital IQ, “Amazon.com Corporate Tearsheet,” Capital
IQ,
2009.
19. T. Kee, “Netflix Beware: Best Buy Adds Digital Dow nloads
with CinemaNow Deal,” paidContent.org, June 5, 2009, http://
paidcontent.org/article/419-best-buy-adds-digital-movie-
downloads-with-cinemanow-deal/.
20. Best Buy Co., Inc., Form 10-K, 2009.
21. Ibid.
22. Ibid.
Z22_WHEE0811_14_GE_CA22.indd 637 5/20/14 12:00 PM
Cover
Brief ContentsContentsPrefaceAbout the AuthorsPart One:
Introduction to Strategic Management and Business Policy
Chapter 1: Basic Concepts of Strategic Management
The Study of Strategic Management
Phases of Strategic Management
Benefits of Strategic ManagementGlobalization, Innovation, and
Sustainability: Challenges to Strategic Management
Impact of GlobalizationImpact of InnovationGlobal Issue:
Regional Trade Associations Replace National Trade Barriers
Impact of SustainabilityTheories of Organizational
AdaptationCreating a Learning OrganizationBasic Model of
Strategic ManagementEnvironmental ScanningStrategy
FormulationStrategy ImplementationEvaluation and
ControlFeedback/Learning ProcessInitiation of Strategy:
Triggering EventsStrategic Decision MakingWhat Makes a
Decision StrategicMintzberg's Modes of Strategic Decision
Making
Strategic Decision-Making Process: Aid to Better Decisions
The Strategic Audit: Aid to Strategic Decision MakingEnd of
Chapter Summary
Appendix 1.A: Strategic Audit of a Corporation
Chapter 2: Corporate Governance
Role of the Board of DirectorsResponsibilities of the Board
Members of a Board of DirectorsInnovation Issue: JCPenney
and Innovation
Strategy Highlight: Agency Theory Versus Stewardship Theory
in Corporate Governance
Nomination and Election of Board MembersOrganization of the
BoardImpact of the Sarbanes-Oxley Act on U.S. Corporate
Governance
Global Issue: Global Business Board Activism At Yahoo!
Trends in Corporate GovernanceThe Role of Top
ManagementResponsibilities of Top ManagementSustainability
Issue: CEO Pay and Corporate Performance
End of Chapter Summary
Chapter 3: Social Responsibility and Ethics in Strategic
Management
Social Responsibilities of Strategic Decision
MakersResponsibilities of a Business
FirmSustainabilityCorporate StakeholdersSustainability Issue:
Marks & Spencer Leads the Way
Strategy Highlight: Johnson & Johnson Credo
Ethical Decision MakingSome Reasons for Unethical
BehaviorGlobal Issue: How Rule-Based and Relationship-Based
Governance Systems Affect Ethical Behavior
Innovation Issue: Turning a Need into a Business to Solve the
Need
Encouraging Ethical BehaviorEnd of Chapter Summary
Part Two: Scanning the Environment
Chapter 4: Environmental Scanning and Industry Analysis
Environmental ScanningIdentifying External Environmental
VariablesSustainability Issue: Green Supercars
Global Issue: SUVs Power on in China
Identifying External Strategic FactorsIndustry Analysis:
Analyzing the Task EnvironmentPorter's Approach to Industry
Analysis
Industry EvolutionInnovation Issue: Taking Stock of an
Obsession
Categorizing International IndustriesInternational Risk
AssessmentStrategic GroupsStrategic
TypesHypercompetitionUsing Key Success Factors to Create an
Industry MatrixCompetitive IntelligenceSources of Competitive
IntelligenceStrategy Highlight: Evaluating Competitive
Intelligence
Monitoring Competitors for Strategic
PlanningForecastingDanger of AssumptionsUseful Forecasting
TechniquesThe Strategic Audit: A Checklist for Environmental
ScanningSynthesis of External Factors—EFASEnd of Chapter
Summary
Chapter 5: Internal Scanning: Organizational Analysis
A Resource-Based Approach to Organizational AnalysisCore
and Distinctive CompetenciesUsing Resources to Gain
Competitive Advantage
Determining the Sustainability of an Advantage
Business ModelsValue-Chain AnalysisIndustry Value-Chain
AnalysisCorporate Value-Chain AnalysisScanning Functional
Resources and CapabilitiesBasic Organizational Structures
Corporate Culture: The Company Way
Global Issue: Managing Corporate Culture for Global
Competitive Advantage: ABB vs. Panasonic
Strategic Marketing Issues
Innovation Issue: DoCoMo Moves against the Grain
Strategic Financial Issues
Strategic Research and Development (R&D) Issues
Strategic Operations Issues
Strategic Human Resource (HRM) Issues
Sustainability Issue: The Olympic Games-Sochi 2014 and Rio
2016
Strategic Information Systems/Technology Issues
The Strategic Audit: A Checklist for Organizational Analysis
Synthesis of Internal FactorsEnd of Chapter Summary
Part Three: Strategy Formulation
Chapter 6: Strategy Formulation: Situation Analysis and
Business Strategy
Situational Analysis: SWOT ApproachGenerating a Strategic
Factors Analysis Summary (SFAS) Matrix
Finding a Propitious NicheReview of Mission and
ObjectivesBusiness StrategiesPorter's Competitive Strategies
Global Issue: The Nike Shoe Strategy vs. The New Balance
Shoe Strategy
Innovation Issue: CHEGG and College Textbooks
Cooperative StrategiesSustainability Issue: Strategic
Sustainability-Espn
End of Chapter Summary
Chapter 7: Strategy Formulation: Corporate Strategy
Corporate StrategyDirectional StrategyGrowth
StrategiesStrategy Highlight: Transaction Cost Economics
Analyzes Vertical Growth Strategy
International Entry Options for Horizontal GrowthGlobal Issue:
Global Expansion is not Always A Path to Expansion
Controversies in Directional Growth StrategiesStability
StrategiesRetrenchment StrategiesPortfolio AnalysisBCG
Growth-Share MatrixSustainability Issue: General Motors and
The Electric Car
Advantages and Limitations of Portfolio AnalysisManaging a
Strategic Alliance PortfolioCorporate ParentingInnovation
Issue: To Red Hat or Not?
Developing a Corporate Parenting StrategyHorizontal Strategy
and Multipoint CompetitionEnd of Chapter Summary
Chapter 8: Strategy Formulation: Functional Strategy and
Strategic Choice
Functional StrategyMarketing StrategyFinancial Strategy
Research and Development (R&D) Strategy
Operations Strategy
Global Issue: Why doesn't Starbucks want to Expand to Italy?
Purchasing Strategy
Sustainability Issue: How Hot is Hot?
Logistics Strategy
Innovation Issue: When an Innovation Fails to Live Up to
Expectations
Human Resource Management (HRM) Strategy
Information Technology Strategy
The Sourcing Decision: Location of FunctionsStrategies to
AvoidStrategic Choice: Selecting the Best StrategyConstructing
Corporate Scenarios
The Process of Strategic Choice
Developing PoliciesEnd of Chapter Summary
Part Four: Strategy Implementation and Control
Chapter 9: Strategy Implementation: Organizing for Action
Strategy ImplementationWho Implements Strategy?What Must
Be Done?Developing Programs, Budgets, and
ProceduresSustainability Issue: A Better Bottle-Ecologic Brands
Achieving SynergyHow is Strategy to Be Implemented?
Organizing for Action
Structure Follows Strategy
Stages of Corporate Development
Innovation Issues: The P&G Innovation Machine Stumbles
Organizational Life CycleAdvanced Types of Organizational
StructuresReengineering and Strategy ImplementationSix
SigmaDesigning Jobs to Implement Strategy
International Issues in Strategy ImplementationInternational
Strategic Alliances
Stages of International Development
Global Issue: Outsourcing Comes Full Circle
Centralization Versus Decentralization
End of Chapter Summary
Chapter 10: Strategy Implementation: Staffing and Directing
StaffingStaffing Follows Strategy
Selection and Management Development
Innovation Issue: How to Keep Apple "Cool"
Problems in Retrenchment
International Issues in Staffing
LeadingSustainability Issue: Panera and The "Panera Cares
Community Cafe"
Managing Corporate Culture
Action Planning
Management by Objectives
Total Quality Management
International Considerations in Leading
Global Issue: Cultural Differences Create Implementation
Problems in Merger
End of Chapter Summary
Chapter 11: Evaluation and Control
Evaluation and Control in Strategic ManagementMeasuring
PerformanceAppropriate Measures
Types of Controls
Innovation Issue: Reuse of Electric Vehicle Batteries
Activity-Based Costing
Enterprise Risk Management
Primary Measures of Corporate Performance
Balanced Scorecard Approach: Using Key Performance
Measures
Sustainability Issue: E-Receipts
Primary Measures of Divisional and Functional Performance
Responsibility Centers
Using Benchmarking to Evaluate Performance
International Measurement Issues
Global Issue: Counterfeit Goods and Pirated Software: A Global
Problem
Strategic Information SystemsEnterprise Resource Planning
(ERP)
Radio Frequency Identification (RFID)
Divisional and Functional is Support
Problems in Measuring Performance
Short-Term Orientation
Goal Displacement
Guidelines for Proper ControlStrategic Incentive
ManagementEnd of Chapter Summary
Part Five: Introduction to Case Analysis
Chapter 12: Suggestions for Case Analysis
The Case MethodResearching the Case SituationFinancial
Analysis: A Place to BeginAnalyzing Financial Statements
Common-Size Statements
Z-Value and the Index of Sustainable Growth
Useful Economic Measures
Format for Case Analysis: The Strategic AuditEnd of Chapter
Summary
Appendix 12.A: Resources for Case Research
Appendix 12.B: Suggested Case Analysis Methodology Using
the Strategic Audit
Appendix 12.C: Example of Student-Written Strategic Audit
Part Six: Cases in Strategic Management
Section A: Corporate Governance: Executive Leadership
Case 1: The Recalcitrant Director at Byte Products, Inc.:
Corporate Legality versus Corporate Responsibility
Several
IT Security Attack & Defense Course Overview

More Related Content

Similar to IT Security Attack & Defense Course Overview

Running Header LEARNING RESOURCE1 NETFLIX4LEARNING RESO.docx
Running Header LEARNING RESOURCE1 NETFLIX4LEARNING RESO.docxRunning Header LEARNING RESOURCE1 NETFLIX4LEARNING RESO.docx
Running Header LEARNING RESOURCE1 NETFLIX4LEARNING RESO.docxanhlodge
 
B sc (hons)(arch) computer applications csc60503 mar 2015
B sc (hons)(arch)  computer applications csc60503 mar 2015B sc (hons)(arch)  computer applications csc60503 mar 2015
B sc (hons)(arch) computer applications csc60503 mar 2015Anthony Chew
 
Sociology  SOCI332Statistics for Social ScienceCredit Ho.docx
Sociology  SOCI332Statistics for Social ScienceCredit Ho.docxSociology  SOCI332Statistics for Social ScienceCredit Ho.docx
Sociology  SOCI332Statistics for Social ScienceCredit Ho.docxbryanwest16882
 
Social Web: (Big) Data Mining | summer 2014/2015 course syllabus
Social Web: (Big) Data Mining | summer 2014/2015 course syllabusSocial Web: (Big) Data Mining | summer 2014/2015 course syllabus
Social Web: (Big) Data Mining | summer 2014/2015 course syllabusJakub Ruzicka
 
Qualitative Analysis Syllabus Final
Qualitative Analysis Syllabus FinalQualitative Analysis Syllabus Final
Qualitative Analysis Syllabus Finalemphemory
 
ECI519_Syllabus_Spring_2016-6
ECI519_Syllabus_Spring_2016-6ECI519_Syllabus_Spring_2016-6
ECI519_Syllabus_Spring_2016-6Shaun Kellogg
 
Introductory Statistics On LineMath140Summer 2013Instructor.docx
Introductory Statistics On LineMath140Summer 2013Instructor.docxIntroductory Statistics On LineMath140Summer 2013Instructor.docx
Introductory Statistics On LineMath140Summer 2013Instructor.docxmariuse18nolet
 
Assignment Title Conducting Primary ResearchDeveloping the ab.docx
Assignment Title Conducting Primary ResearchDeveloping the ab.docxAssignment Title Conducting Primary ResearchDeveloping the ab.docx
Assignment Title Conducting Primary ResearchDeveloping the ab.docxssuser562afc1
 
Network Security LabNetwork Security Lab
Network Security LabNetwork Security LabNetwork Security LabNetwork Security Lab
Network Security LabNetwork Security LabKezialElizabeth
 
Introduction and administrative information (MS Word 97 format)
Introduction and administrative information (MS Word 97 format)Introduction and administrative information (MS Word 97 format)
Introduction and administrative information (MS Word 97 format)butest
 
Introduction to Qualitative Research - Syllabus Spring 2014
Introduction to Qualitative Research - Syllabus Spring 2014Introduction to Qualitative Research - Syllabus Spring 2014
Introduction to Qualitative Research - Syllabus Spring 2014Joan E. Hughes, Ph.D.
 
BA 632 INFORMATION SYSTEMS SECURITY Instructor Informat.docx
BA 632 INFORMATION SYSTEMS SECURITY  Instructor Informat.docxBA 632 INFORMATION SYSTEMS SECURITY  Instructor Informat.docx
BA 632 INFORMATION SYSTEMS SECURITY Instructor Informat.docxwilcockiris
 
School of Science, Technology, Engineering and MathDep.docx
School of Science, Technology, Engineering and MathDep.docxSchool of Science, Technology, Engineering and MathDep.docx
School of Science, Technology, Engineering and MathDep.docxanhlodge
 
MIS213 Syllabus [Draft]
MIS213 Syllabus [Draft]MIS213 Syllabus [Draft]
MIS213 Syllabus [Draft]Maurice Dawson
 
Assignments .30%
Assignments .30%Assignments .30%
Assignments .30%butest
 

Similar to IT Security Attack & Defense Course Overview (20)

Running Header LEARNING RESOURCE1 NETFLIX4LEARNING RESO.docx
Running Header LEARNING RESOURCE1 NETFLIX4LEARNING RESO.docxRunning Header LEARNING RESOURCE1 NETFLIX4LEARNING RESO.docx
Running Header LEARNING RESOURCE1 NETFLIX4LEARNING RESO.docx
 
B sc (hons)(arch) computer applications csc60503 mar 2015
B sc (hons)(arch)  computer applications csc60503 mar 2015B sc (hons)(arch)  computer applications csc60503 mar 2015
B sc (hons)(arch) computer applications csc60503 mar 2015
 
Sociology  SOCI332Statistics for Social ScienceCredit Ho.docx
Sociology  SOCI332Statistics for Social ScienceCredit Ho.docxSociology  SOCI332Statistics for Social ScienceCredit Ho.docx
Sociology  SOCI332Statistics for Social ScienceCredit Ho.docx
 
INFS 401 Spring 2016
INFS 401 Spring 2016INFS 401 Spring 2016
INFS 401 Spring 2016
 
Deep reinforcement learning
Deep reinforcement learningDeep reinforcement learning
Deep reinforcement learning
 
Social Web: (Big) Data Mining | summer 2014/2015 course syllabus
Social Web: (Big) Data Mining | summer 2014/2015 course syllabusSocial Web: (Big) Data Mining | summer 2014/2015 course syllabus
Social Web: (Big) Data Mining | summer 2014/2015 course syllabus
 
Qualitative Analysis Syllabus Final
Qualitative Analysis Syllabus FinalQualitative Analysis Syllabus Final
Qualitative Analysis Syllabus Final
 
ECI519_Syllabus_Spring_2016-6
ECI519_Syllabus_Spring_2016-6ECI519_Syllabus_Spring_2016-6
ECI519_Syllabus_Spring_2016-6
 
Introductory Statistics On LineMath140Summer 2013Instructor.docx
Introductory Statistics On LineMath140Summer 2013Instructor.docxIntroductory Statistics On LineMath140Summer 2013Instructor.docx
Introductory Statistics On LineMath140Summer 2013Instructor.docx
 
Assignment Title Conducting Primary ResearchDeveloping the ab.docx
Assignment Title Conducting Primary ResearchDeveloping the ab.docxAssignment Title Conducting Primary ResearchDeveloping the ab.docx
Assignment Title Conducting Primary ResearchDeveloping the ab.docx
 
Network Security LabNetwork Security Lab
Network Security LabNetwork Security LabNetwork Security LabNetwork Security Lab
Network Security LabNetwork Security Lab
 
Introduction and administrative information (MS Word 97 format)
Introduction and administrative information (MS Word 97 format)Introduction and administrative information (MS Word 97 format)
Introduction and administrative information (MS Word 97 format)
 
Ict3612 102 1_2018
Ict3612 102 1_2018Ict3612 102 1_2018
Ict3612 102 1_2018
 
Ethical Hacking
Ethical HackingEthical Hacking
Ethical Hacking
 
Introduction to Qualitative Research - Syllabus Spring 2014
Introduction to Qualitative Research - Syllabus Spring 2014Introduction to Qualitative Research - Syllabus Spring 2014
Introduction to Qualitative Research - Syllabus Spring 2014
 
BA 632 INFORMATION SYSTEMS SECURITY Instructor Informat.docx
BA 632 INFORMATION SYSTEMS SECURITY  Instructor Informat.docxBA 632 INFORMATION SYSTEMS SECURITY  Instructor Informat.docx
BA 632 INFORMATION SYSTEMS SECURITY Instructor Informat.docx
 
School of Science, Technology, Engineering and MathDep.docx
School of Science, Technology, Engineering and MathDep.docxSchool of Science, Technology, Engineering and MathDep.docx
School of Science, Technology, Engineering and MathDep.docx
 
Table of contents
Table of contentsTable of contents
Table of contents
 
MIS213 Syllabus [Draft]
MIS213 Syllabus [Draft]MIS213 Syllabus [Draft]
MIS213 Syllabus [Draft]
 
Assignments .30%
Assignments .30%Assignments .30%
Assignments .30%
 

More from TatianaMajor22

Please readRobert Geraci, Russia Minorities and Empire,” in .docx
Please readRobert Geraci, Russia Minorities and Empire,” in .docxPlease readRobert Geraci, Russia Minorities and Empire,” in .docx
Please readRobert Geraci, Russia Minorities and Empire,” in .docxTatianaMajor22
 
Ford VS ChevroletThere are many reasons that make the Chevy.docx
Ford VS ChevroletThere are many reasons that make the Chevy.docxFord VS ChevroletThere are many reasons that make the Chevy.docx
Ford VS ChevroletThere are many reasons that make the Chevy.docxTatianaMajor22
 
Fairness and Discipline     Weve all been disciplined at one.docx
Fairness and Discipline     Weve all been disciplined at one.docxFairness and Discipline     Weve all been disciplined at one.docx
Fairness and Discipline     Weve all been disciplined at one.docxTatianaMajor22
 
Appendix 12A Statement of Cash Flows—Direct MethodLEARNING .docx
Appendix 12A Statement of Cash Flows—Direct MethodLEARNING .docxAppendix 12A Statement of Cash Flows—Direct MethodLEARNING .docx
Appendix 12A Statement of Cash Flows—Direct MethodLEARNING .docxTatianaMajor22
 
Effects of StressProvide a 1-page description of a stressful .docx
Effects of StressProvide a 1-page description of a stressful .docxEffects of StressProvide a 1-page description of a stressful .docx
Effects of StressProvide a 1-page description of a stressful .docxTatianaMajor22
 
Design Factors NotesCIO’s Office 5 People IT Chief’s Offi.docx
Design Factors NotesCIO’s Office 5 People IT Chief’s Offi.docxDesign Factors NotesCIO’s Office 5 People IT Chief’s Offi.docx
Design Factors NotesCIO’s Office 5 People IT Chief’s Offi.docxTatianaMajor22
 
Question 12.5 pointsSaveThe OSU studies concluded that le.docx
Question 12.5 pointsSaveThe OSU studies concluded that le.docxQuestion 12.5 pointsSaveThe OSU studies concluded that le.docx
Question 12.5 pointsSaveThe OSU studies concluded that le.docxTatianaMajor22
 
Case Study 1 Questions1.     What is the allocated budget .docx
Case Study 1 Questions1.     What is the allocated budget  .docxCase Study 1 Questions1.     What is the allocated budget  .docx
Case Study 1 Questions1.     What is the allocated budget .docxTatianaMajor22
 
Behavior in OrganizationsIntercultural Communications Exercise .docx
Behavior in OrganizationsIntercultural Communications Exercise .docxBehavior in OrganizationsIntercultural Communications Exercise .docx
Behavior in OrganizationsIntercultural Communications Exercise .docxTatianaMajor22
 
Discussion Question Comparison of Theories on Anxiety Disord.docx
Discussion Question Comparison of Theories on Anxiety Disord.docxDiscussion Question Comparison of Theories on Anxiety Disord.docx
Discussion Question Comparison of Theories on Anxiety Disord.docxTatianaMajor22
 
I have always liked Dustin Hoffmans style of acting, in this mov.docx
I have always liked Dustin Hoffmans style of acting, in this mov.docxI have always liked Dustin Hoffmans style of acting, in this mov.docx
I have always liked Dustin Hoffmans style of acting, in this mov.docxTatianaMajor22
 
Is obedience to the law sufficient to ensure ethical behavior Wh.docx
Is obedience to the law sufficient to ensure ethical behavior Wh.docxIs obedience to the law sufficient to ensure ethical behavior Wh.docx
Is obedience to the law sufficient to ensure ethical behavior Wh.docxTatianaMajor22
 
If you are using the Blackboard Mobile Learn IOS App, please clic.docx
If you are using the Blackboard Mobile Learn IOS App, please clic.docxIf you are using the Blackboard Mobile Learn IOS App, please clic.docx
If you are using the Blackboard Mobile Learn IOS App, please clic.docxTatianaMajor22
 
Is the proliferation of social media and communication devices a .docx
Is the proliferation of social media and communication devices a .docxIs the proliferation of social media and communication devices a .docx
Is the proliferation of social media and communication devices a .docxTatianaMajor22
 
MATH 107 FINAL EXAMINATIONMULTIPLE CHOICE1. Deter.docx
MATH 107 FINAL EXAMINATIONMULTIPLE CHOICE1. Deter.docxMATH 107 FINAL EXAMINATIONMULTIPLE CHOICE1. Deter.docx
MATH 107 FINAL EXAMINATIONMULTIPLE CHOICE1. Deter.docxTatianaMajor22
 
If the CIO is to be valued as a strategic actor, how can he bring.docx
If the CIO is to be valued as a strategic actor, how can he bring.docxIf the CIO is to be valued as a strategic actor, how can he bring.docx
If the CIO is to be valued as a strategic actor, how can he bring.docxTatianaMajor22
 
I am showing below the proof of breakeven, which is fixed costs .docx
I am showing below the proof of breakeven, which is fixed costs .docxI am showing below the proof of breakeven, which is fixed costs .docx
I am showing below the proof of breakeven, which is fixed costs .docxTatianaMajor22
 
Examine the way in which death and dying are viewed at different .docx
Examine the way in which death and dying are viewed at different .docxExamine the way in which death and dying are viewed at different .docx
Examine the way in which death and dying are viewed at different .docxTatianaMajor22
 
Karimi 1 Big Picture Blog Post ​ First Draft College .docx
Karimi 1 Big Picture Blog Post ​ First Draft College .docxKarimi 1 Big Picture Blog Post ​ First Draft College .docx
Karimi 1 Big Picture Blog Post ​ First Draft College .docxTatianaMajor22
 
Please try not to use hard words Thank youWeek 3Individual.docx
Please try not to use hard words Thank youWeek 3Individual.docxPlease try not to use hard words Thank youWeek 3Individual.docx
Please try not to use hard words Thank youWeek 3Individual.docxTatianaMajor22
 

More from TatianaMajor22 (20)

Please readRobert Geraci, Russia Minorities and Empire,” in .docx
Please readRobert Geraci, Russia Minorities and Empire,” in .docxPlease readRobert Geraci, Russia Minorities and Empire,” in .docx
Please readRobert Geraci, Russia Minorities and Empire,” in .docx
 
Ford VS ChevroletThere are many reasons that make the Chevy.docx
Ford VS ChevroletThere are many reasons that make the Chevy.docxFord VS ChevroletThere are many reasons that make the Chevy.docx
Ford VS ChevroletThere are many reasons that make the Chevy.docx
 
Fairness and Discipline     Weve all been disciplined at one.docx
Fairness and Discipline     Weve all been disciplined at one.docxFairness and Discipline     Weve all been disciplined at one.docx
Fairness and Discipline     Weve all been disciplined at one.docx
 
Appendix 12A Statement of Cash Flows—Direct MethodLEARNING .docx
Appendix 12A Statement of Cash Flows—Direct MethodLEARNING .docxAppendix 12A Statement of Cash Flows—Direct MethodLEARNING .docx
Appendix 12A Statement of Cash Flows—Direct MethodLEARNING .docx
 
Effects of StressProvide a 1-page description of a stressful .docx
Effects of StressProvide a 1-page description of a stressful .docxEffects of StressProvide a 1-page description of a stressful .docx
Effects of StressProvide a 1-page description of a stressful .docx
 
Design Factors NotesCIO’s Office 5 People IT Chief’s Offi.docx
Design Factors NotesCIO’s Office 5 People IT Chief’s Offi.docxDesign Factors NotesCIO’s Office 5 People IT Chief’s Offi.docx
Design Factors NotesCIO’s Office 5 People IT Chief’s Offi.docx
 
Question 12.5 pointsSaveThe OSU studies concluded that le.docx
Question 12.5 pointsSaveThe OSU studies concluded that le.docxQuestion 12.5 pointsSaveThe OSU studies concluded that le.docx
Question 12.5 pointsSaveThe OSU studies concluded that le.docx
 
Case Study 1 Questions1.     What is the allocated budget .docx
Case Study 1 Questions1.     What is the allocated budget  .docxCase Study 1 Questions1.     What is the allocated budget  .docx
Case Study 1 Questions1.     What is the allocated budget .docx
 
Behavior in OrganizationsIntercultural Communications Exercise .docx
Behavior in OrganizationsIntercultural Communications Exercise .docxBehavior in OrganizationsIntercultural Communications Exercise .docx
Behavior in OrganizationsIntercultural Communications Exercise .docx
 
Discussion Question Comparison of Theories on Anxiety Disord.docx
Discussion Question Comparison of Theories on Anxiety Disord.docxDiscussion Question Comparison of Theories on Anxiety Disord.docx
Discussion Question Comparison of Theories on Anxiety Disord.docx
 
I have always liked Dustin Hoffmans style of acting, in this mov.docx
I have always liked Dustin Hoffmans style of acting, in this mov.docxI have always liked Dustin Hoffmans style of acting, in this mov.docx
I have always liked Dustin Hoffmans style of acting, in this mov.docx
 
Is obedience to the law sufficient to ensure ethical behavior Wh.docx
Is obedience to the law sufficient to ensure ethical behavior Wh.docxIs obedience to the law sufficient to ensure ethical behavior Wh.docx
Is obedience to the law sufficient to ensure ethical behavior Wh.docx
 
If you are using the Blackboard Mobile Learn IOS App, please clic.docx
If you are using the Blackboard Mobile Learn IOS App, please clic.docxIf you are using the Blackboard Mobile Learn IOS App, please clic.docx
If you are using the Blackboard Mobile Learn IOS App, please clic.docx
 
Is the proliferation of social media and communication devices a .docx
Is the proliferation of social media and communication devices a .docxIs the proliferation of social media and communication devices a .docx
Is the proliferation of social media and communication devices a .docx
 
MATH 107 FINAL EXAMINATIONMULTIPLE CHOICE1. Deter.docx
MATH 107 FINAL EXAMINATIONMULTIPLE CHOICE1. Deter.docxMATH 107 FINAL EXAMINATIONMULTIPLE CHOICE1. Deter.docx
MATH 107 FINAL EXAMINATIONMULTIPLE CHOICE1. Deter.docx
 
If the CIO is to be valued as a strategic actor, how can he bring.docx
If the CIO is to be valued as a strategic actor, how can he bring.docxIf the CIO is to be valued as a strategic actor, how can he bring.docx
If the CIO is to be valued as a strategic actor, how can he bring.docx
 
I am showing below the proof of breakeven, which is fixed costs .docx
I am showing below the proof of breakeven, which is fixed costs .docxI am showing below the proof of breakeven, which is fixed costs .docx
I am showing below the proof of breakeven, which is fixed costs .docx
 
Examine the way in which death and dying are viewed at different .docx
Examine the way in which death and dying are viewed at different .docxExamine the way in which death and dying are viewed at different .docx
Examine the way in which death and dying are viewed at different .docx
 
Karimi 1 Big Picture Blog Post ​ First Draft College .docx
Karimi 1 Big Picture Blog Post ​ First Draft College .docxKarimi 1 Big Picture Blog Post ​ First Draft College .docx
Karimi 1 Big Picture Blog Post ​ First Draft College .docx
 
Please try not to use hard words Thank youWeek 3Individual.docx
Please try not to use hard words Thank youWeek 3Individual.docxPlease try not to use hard words Thank youWeek 3Individual.docx
Please try not to use hard words Thank youWeek 3Individual.docx
 

Recently uploaded

Biting mechanism of poisonous snakes.pdf
Biting mechanism of poisonous snakes.pdfBiting mechanism of poisonous snakes.pdf
Biting mechanism of poisonous snakes.pdfadityarao40181
 
call girls in Kamla Market (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
call girls in Kamla Market (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️call girls in Kamla Market (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
call girls in Kamla Market (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️9953056974 Low Rate Call Girls In Saket, Delhi NCR
 
Final demo Grade 9 for demo Plan dessert.pptx
Final demo Grade 9 for demo Plan dessert.pptxFinal demo Grade 9 for demo Plan dessert.pptx
Final demo Grade 9 for demo Plan dessert.pptxAvyJaneVismanos
 
Alper Gobel In Media Res Media Component
Alper Gobel In Media Res Media ComponentAlper Gobel In Media Res Media Component
Alper Gobel In Media Res Media ComponentInMediaRes1
 
भारत-रोम व्यापार.pptx, Indo-Roman Trade,
भारत-रोम व्यापार.pptx, Indo-Roman Trade,भारत-रोम व्यापार.pptx, Indo-Roman Trade,
भारत-रोम व्यापार.pptx, Indo-Roman Trade,Virag Sontakke
 
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxiammrhaywood
 
MARGINALIZATION (Different learners in Marginalized Group
MARGINALIZATION (Different learners in Marginalized GroupMARGINALIZATION (Different learners in Marginalized Group
MARGINALIZATION (Different learners in Marginalized GroupJonathanParaisoCruz
 
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17Celine George
 
Interactive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationInteractive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationnomboosow
 
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions  for the students and aspirants of Chemistry12th.pptxOrganic Name Reactions  for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptxVS Mahajan Coaching Centre
 
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdfssuser54595a
 
Full Stack Web Development Course for Beginners
Full Stack Web Development Course  for BeginnersFull Stack Web Development Course  for Beginners
Full Stack Web Development Course for BeginnersSabitha Banu
 
Employee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptxEmployee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptxNirmalaLoungPoorunde1
 
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...Marc Dusseiller Dusjagr
 
Meghan Sutherland In Media Res Media Component
Meghan Sutherland In Media Res Media ComponentMeghan Sutherland In Media Res Media Component
Meghan Sutherland In Media Res Media ComponentInMediaRes1
 
Solving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxSolving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxOH TEIK BIN
 
Painted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of IndiaPainted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of IndiaVirag Sontakke
 
Historical philosophical, theoretical, and legal foundations of special and i...
Historical philosophical, theoretical, and legal foundations of special and i...Historical philosophical, theoretical, and legal foundations of special and i...
Historical philosophical, theoretical, and legal foundations of special and i...jaredbarbolino94
 

Recently uploaded (20)

Biting mechanism of poisonous snakes.pdf
Biting mechanism of poisonous snakes.pdfBiting mechanism of poisonous snakes.pdf
Biting mechanism of poisonous snakes.pdf
 
call girls in Kamla Market (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
call girls in Kamla Market (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️call girls in Kamla Market (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
call girls in Kamla Market (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
 
Final demo Grade 9 for demo Plan dessert.pptx
Final demo Grade 9 for demo Plan dessert.pptxFinal demo Grade 9 for demo Plan dessert.pptx
Final demo Grade 9 for demo Plan dessert.pptx
 
Alper Gobel In Media Res Media Component
Alper Gobel In Media Res Media ComponentAlper Gobel In Media Res Media Component
Alper Gobel In Media Res Media Component
 
भारत-रोम व्यापार.pptx, Indo-Roman Trade,
भारत-रोम व्यापार.pptx, Indo-Roman Trade,भारत-रोम व्यापार.pptx, Indo-Roman Trade,
भारत-रोम व्यापार.pptx, Indo-Roman Trade,
 
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptxECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
ECONOMIC CONTEXT - PAPER 1 Q3: NEWSPAPERS.pptx
 
MARGINALIZATION (Different learners in Marginalized Group
MARGINALIZATION (Different learners in Marginalized GroupMARGINALIZATION (Different learners in Marginalized Group
MARGINALIZATION (Different learners in Marginalized Group
 
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
 
Interactive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communicationInteractive Powerpoint_How to Master effective communication
Interactive Powerpoint_How to Master effective communication
 
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions  for the students and aspirants of Chemistry12th.pptxOrganic Name Reactions  for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
 
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
18-04-UA_REPORT_MEDIALITERAСY_INDEX-DM_23-1-final-eng.pdf
 
Full Stack Web Development Course for Beginners
Full Stack Web Development Course  for BeginnersFull Stack Web Development Course  for Beginners
Full Stack Web Development Course for Beginners
 
Employee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptxEmployee wellbeing at the workplace.pptx
Employee wellbeing at the workplace.pptx
 
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
“Oh GOSH! Reflecting on Hackteria's Collaborative Practices in a Global Do-It...
 
Meghan Sutherland In Media Res Media Component
Meghan Sutherland In Media Res Media ComponentMeghan Sutherland In Media Res Media Component
Meghan Sutherland In Media Res Media Component
 
Solving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptxSolving Puzzles Benefits Everyone (English).pptx
Solving Puzzles Benefits Everyone (English).pptx
 
ESSENTIAL of (CS/IT/IS) class 06 (database)
ESSENTIAL of (CS/IT/IS) class 06 (database)ESSENTIAL of (CS/IT/IS) class 06 (database)
ESSENTIAL of (CS/IT/IS) class 06 (database)
 
Painted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of IndiaPainted Grey Ware.pptx, PGW Culture of India
Painted Grey Ware.pptx, PGW Culture of India
 
Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝
Model Call Girl in Tilak Nagar Delhi reach out to us at 🔝9953056974🔝
 
Historical philosophical, theoretical, and legal foundations of special and i...
Historical philosophical, theoretical, and legal foundations of special and i...Historical philosophical, theoretical, and legal foundations of special and i...
Historical philosophical, theoretical, and legal foundations of special and i...
 

IT Security Attack & Defense Course Overview

  • 1. ISSC362 Course Summary Course : ISSC362 Title : IT Security: Attack & Defense Length of Course : 8 Faculty : Prerequisites : N/A Credit Hours : 3 Description Course Description: This course examines the techniques and technologies for penetration of networks, detection of attacks, and prevention of attacks. This course addresses the techniques, the technologies, and the methodologies used by cyber intruders (hackers) to select a target and launch an attack. Students will gain insight into the motives and desired goals of hackers as well as effective tools and techniques used as countermeasures ensuring data assets remain secure. This course focuses on techniques and technologies to detect such attacks even while the attack is in progress; early detection enables the administrator to track the movements of the hacker and to discover the intent and goals of the hacker. This course assesses the various countermeasures to keep the system out of the “sights” of the hacker and to keep the hacker out of the perimeter of the target network. This course also explores the laws and the legal considerations in prosecuting computer crime. Course Scope:
  • 2. This course will allow students to see how attacks target networks and the methodology they follow. Students will also learn how to respond to hacking attacks and how to fend them off. With the help of the experts in the Information Systems Security and Assurance Series, the book will provide examples of information security concepts and procedures are presented throughout the course. Page: 1 of 8 Date: 6/21/2020 3:01:15 AM Objectives After successfully completing this course, you will be able to: 1. Show how attackers map organizations 2. Describe common port scanning techniques 3. Identify some of the tools used to perform enumeration 4. Explain the significance of wireless security 5. List the issues facing Web servers 6. Describe the characteristics of malware 7. List the ways of detecting Trojans 8. Describe the process of DoS attacks 9. Describe the benefits of automated assessment tools 10. List the components of incident response 11. List the detective methods of IDS Outline Week 1: Course Overview Getting Started Introduction to Ethical Hacking Activities Reading: Chapters 1, 2, 3 and 4
  • 3. PPT Review: Lessons 1, 2 and 3 (Physical Security) Week 1 Discussion Lab Week 2: Footprinting, Port Scanning and Enumeration Activities Reading: Chapters 5, 6, and 7 PPT Review: Lessons 3 (Footprinting) and 4 Week 2 Discussion Lab Week 3: Web and Database Attacks Activities Reading: Chapter 9 PPT Review: Lesson 6 Week 3 Discussion Lab Page: 2 of 8 Date: 6/21/2020 3:01:15 AM Week 4: Malware, Worms, Viruses, Trojans and Backdoors
  • 4. Activities Reading: Chapters 10 and 11 PPT Review: Lesson 7 Week 4 Discussion Lab Week 5: Network Traffic Analysis Activities Reading: Chapters 12 and 13 PPT Review: Lesson 8 Week 5 Discussion Midterm Lab Week 6: Wireless Vulnerabilities Activities Reading: Chapter 8 PPT Review: Lesson 5 Week 6 Discussion Lab
  • 5. Week 7: Incident Response Activities Reading: Chapter 14 PPT Review: Lesson 9 (Incident Response) Week 7 Discussion Week 7 Research Paper Due Lab Week 8: Defensive Technologies Activities Page: 3 of 8 Date: 6/21/2020 3:01:15 AM Reading: Chapter 15 PPT Review: Lesson 9 (Defense Technologies) Week 8 Discussion Final Exam Lab Evaluation Grading will be based on weekly assignments: discussions labs, quizzes, an individual project paper (topic selection, outline and paper) and a case study.
  • 6. There will be eight discussions (3.13% each) counting a total of 25% of the final grade. Answers should restate the question with supporting sentences using the terms, concepts, and theories from the required readings. The key requirement is to express your idea and then support your position to demonstrate that you understand the material. In addition, you are to respond to at least two of your classmates’ postings by critiquing, supporting or supplementing the other students’ answers. All responses should be courteous with sound supporting sentences. You may respond multiple times within a continuous discussion with points and counter points. Duplicate responses will not receive credit. There will be eight labs (2.5% for each) counting a total of 25% of the final grade. You can access labs by selection on Online Labs. Step-by-Step instructions for each lab are available, and you can access these files within Lessons. Submit deliverables through the Assignments link within your course. There will be one final exam (25 questions worth 4 points per question) and one Midterm exam (25 questions worth 4 points per question) accounting for a total of 25% of the final grade. Each exam will consist of 25 multiple choice questions pulled from chapters covered from week 1 through 5 for the Midterm and Weeks 1 through 8 for the Final exam. There will be three exercises during this term counting a total of 25% of the final grade, completed as follows:
  • 7. a. Week 2 Topic Selection – selection of topic for the Week 7 Research Paper. b. Week 4 Outline – outline of topics and subtopics for the Week 7 Research Paper. c. Week 7 Research Paper – present research paper on your chosen topic. Below is a list of pre-approved topics for the Week 7 Research Paper: Protecting IT: A Roadmap for Securing the Enterprise Best Practices for Network Security Firewalls: Great Network Security Devices, but Not a "Silver Bullet" Solution Modern Day Attacks Against Firewalls and VPNs VPN Security Vulnerabilities Exposed The key to the research assignment is to demonstrate your understanding of the topics, not to re-word the text or reference material. The paper will follow a conventional report format (introduction, body, conclusion, references). The paper is to follow the APA style guide, Sixth Edition (available via
  • 8. bookstores). Also refer to APA’s online resources: and the APUS web site: Page: 4 of 8 Date: 6/21/2020 3:01:15 AM http://apastyle.apa.org/learn/tutorials/basics-tutorial.aspx http://www.apus.edu/Online-Library/tutorials/apa.htm Note: Review Announcements and Lessons for additional instructions and course materials. Each week you will also have chapter readings assigned, and PowerPoint presentations to review. All assignments, labs, discussion questions and quizzes are required by 11:59 PM Eastern Standard Time of the Sunday of the week assigned. Grading: Name Grade % Discussions 25.00 % 3.13 % 3.13 %
  • 9. 3.13 % 3.13 % 3.13 % 3.13 % 3.13 % 3.13 % Week 1 Discussion Week 2 Discussion Week 3 Discussion Week 4 Discussion Week 5 Discussion Week 6 Discussion Week 7 Discussion Week 8 Discussion Labs 25.00 % Week 1 Lab 3.13 % Week 2 Lab 3.13 % Week 3 Lab 3.13 % Week 4 Lab 3.13 % Week 5 Lab 3.13 % Week 6 Lab 3.13 % Week 7 Lab 3.13 % Week 8 Lab 3.13 % Quizzes/Exams 25.00 %
  • 10. ISSC362 Final Exam 12.50 % ISSC362 Midterm Exam 12.50 % Exercises 25.00 % Week 2 Topic Selection 2.50 % Week 4 Outline 7.50 % Week 7 Research Paper 15.00 % Page: 5 of 8 Date: 6/21/2020 3:01:15 AM Materials Book Title: Requires CITRIX CLIENT SOFTWARE INSTALLATION FOR ONLINE VIRTUAL LABS accessibility - instructions provided inside the classroom. Author: No Author Specified Publication Info: ISBN: N/A Book Title: Hacker Techniques, Tools, And Incident Handling, 2nd ed. - the VitalSource e-book is provided inside the classroom Author: Oriyano Publication Info: VS-Jones & Bartlett
  • 11. ISBN: 9781284031713 Book Title: ISSC362 virtual lab manual provided inside the classroom Author: Publication Info: CLASS-Jones & Bartlett ISBN: 9781284064100 Starting April 2016 this title & edition has moved to VitalSource. The VitalSource e-book is provided via the APUS Bookstore. Please visit for more information. Software Requirements 1. Microsoft Office (MS Word, MS Excel, MS PowerPoint) 2. Mozilla Firefox (recommended browser) Course Guidelines Citation and Reference Style Attention Please: Students will follow the APA Format as the sole citation and reference style used in written work submitted as part of coursework to the University. Assignments completed in a narrative essay or composition format must follow the citation style cited
  • 12. in the APA Format. Tutoring Tutor.com offers online homework help and learning resources by connecting students to certified tutors for one-on-one help. AMU and APU students are eligible for 10 free hours* of tutoring provided by APUS. Tutors are available 24/7 unless otherwise noted. Tutor.com also has a SkillCenter Resource Library offering educational resources, worksheets, videos, websites and career help. Accessing these resources does not count against tutoring hours and is also available 24/7. Please visit the APUS Library and search for 'Tutor' to create an account. Late Assignments Students are expected to submit classroom assignments by the posted due date and to complete the course according to the published class schedule. The due date for each assignment is listed under Page: 6 of 8 Date: 6/21/2020 3:01:15 AM
  • 13. http://www.tutor.com/colleges/landing/apus http://apus.libguides.com/bookstore each Assignment. Generally speaking, late work may result in a deduction up to 15% of the grade for each day late, not to exceed 5 days. As a working adult I know your time is limited and often out of your control. Faculty may be more flexible if they know ahead of time of any potential late assignments. Turn It In Faculty may require assignments be submitted to Turnitin.com. Turnitin.com will analyze a paper and report instances of potential plagiarism for the student to edit before submitting it for a grade. In some cases professors may require students to use Turnitin.com. This is automatically processed through the Assignments area of the course. Academic Dishonesty
  • 14. Academic Dishonesty incorporates more than plagiarism, which is using the work of others without citation. Academic dishonesty includes any use of content purchased or retrieved from web services such as CourseHero.com. Additionally, allowing your work to be placed on such web services is academic dishonesty, as it is enabling the dishonesty of others. The copy and pasting of content from any web page, without citation as a direct quote, is academic dishonesty. When in doubt, do not copy/paste, and always cite. Submission Guidelines Some assignments may have very specific requirements for formatting (such as font, margins, etc) and submission file type (such as .docx, .pdf, etc) See the assignment instructions for details. In general, standard file types such as those associated with Microsoft Office are preferred, unless otherwise specified. Disclaimer Statement Course content may vary from the outline to meet the needs of
  • 15. this particular group. Communicating on the Discussion Discussions are the heart of the interaction in this course. The more engaged and lively the exchanges, the more interesting and fun the course will be. Only substantive comments will receive credit. Although there is a final posting time after which the instructor will grade comments, it is not sufficient to wait until the last day to contribute your comments/questions on the discussion. The purpose of the discussions is to actively participate in an on-going discussion about the assigned content. “Substantive” means comments that contribute something new and hopefully important to the discussion. Thus a message that simply says “I agree” is not substantive. A substantive comment contributes a new idea or perspective, a good follow -up question to a point made, offers a response to a question, provides an example or illustration of a key point, points out an inconsistency in an argument, etc. As a class, if we run into conflicting view points, we must respect each individual's own opinion. Hateful
  • 16. and hurtful comments towards other individuals, students, groups, peoples, and/or societies will not be tolerated. Identity Verification & Live Proctoring Faculty may require students to provide proof of identity when submitting assignments or completing assessments in this course. Verification may be in the form of a photograph and/or video of the student’s face together with a valid photo ID, depending on the assignment format. Faculty may require live proctoring when completing assessments in this course. Proctoring may include identity verification and continuous monitoring of the student by webcam and microphone during testing. Page: 7 of 8 Date: 6/21/2020 3:01:15 AM University Policies Student Handbook
  • 17. Drop/Withdrawal policy Extension Requests Academic Probation Appeals Disability Accommodations The mission of American Public University System is to provide high quality higher education with emphasis on educating the nation’s military and public service communities by offering respected, relevant, accessible, affordable, and student-focused online programs that prepare students for service and leadership in a diverse, global society. Page: 8 of 8 Date: 6/21/2020 3:01:15 AM http://www.apus.edu/student-handbook/index.htm http://www.apus.edu/student-handbook/withdrawal/ http://www.apus.edu/student-handbook/extension/ http://www.apus.edu/student-handbook/academic- probation/index.htm
  • 18. http://www.apus.edu/student-handbook/appeals- matrix/index.htm http://www.apus.edu/student-handbook/Disability- Accommodations/index.htmCourse SummaryDescriptionObjectivesOutlineWeek 1: Course Overview Getting Started Introduction to Ethical HackingWeek 2: Footprinting, Port Scanning and EnumerationWeek 3: Web and Database AttacksWeek 4: Malware, Worms, Viruses, Trojans and BackdoorsWeek 5: Network Traffic AnalysisWeek 6: Wireless VulnerabilitiesWeek 7: Incident ResponseWeek 8: Defensive TechnologiesEvaluationMaterialsCourse GuidelinesUniversity Policies Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University ‫ة‬ ‫عودي‬ ‫س‬ ‫ال‬ ‫ية‬ ‫عرب‬ ‫ال‬ ‫كة‬ ‫ل‬ ‫مم‬ ‫ال‬ ‫يم‬ ‫ل‬ ‫ع‬ ‫ت‬ ‫ال‬ ‫وزارة‬ ‫ية‬ ‫ترون‬ ‫ك‬ ‫اإلل‬ ‫ة‬ ‫عودي‬ ‫س‬ ‫ال‬ ‫عة‬ ‫جام‬ ‫ال‬ College of Administrative and Financial Sciences
  • 19. Assignment 2 Strategic Management (MGT 401) Deadline: 20/11/2021 @ 23:59 Course Name: Strategic Management Student’s Name: Course Code: MGT401 Student’s ID Number: Semester: First CRN: Academic Year:2021-22 For Instructor’s Use only Instructor’s Name: Students’ Grade: Marks Obtained/Out of 5 Level of Marks: High/Middle/Low Instructions – PLEASE READ THEM CAREFULLY · The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. · Assignments submitted through email will not be accepted. · Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • 20. · Students must mention question number clearly in their answer. · Late submission will NOT be accepted. · Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. · All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). · Submissions without this cover page will NOT be accepted. Assignment No 2: Case study · Submission Date by students: Before the end ofWeek- 11th · Weight:5 Marks · Place of Submission: Students Grade Centre · Learning Outcomes: 1. Describe the different issues related to environmental scanning, strategy formulation, and strategy implementation in diversified organizations. (Lo2) 2. Explain the contribution of functional, business and corporate strategies in the competitive advantage of the organization. (Lo3) 3. Communicate issues, results and recommendations
  • 21. coherently, and effectively regarding appropriate strategies for different situations (Lo 6) Read carefully the case study No 24 from your textbook (Best Buy Co. Inc: Sustainable customer centricity Model?) and answer the following questions: 1. Identify opportunities and threats as well as strengths and weakness of the company 1pt 2. What is/are the strategy (ies) used by Best Buy? 1 pt 3. Explain the contribution of various functional areas of Best Buy Company to its well-being. 1 pt 4. Determine the issues affecting to the strategic competitive advantage of the company. 1pt 5. Recommend solutions for Best Buy to improve its competitive advantage. 1pt Notes: · Copy/paste the phrases from the text is not acceptable. You
  • 22. must use your own words. · Using the terminology developed in the course of strategic Management is highly valued. Best Buy Co. InC., headquartered In rIChfIeld, MInnesota, was a specialty retailer of consumer electronics. It operated over 1100 stores in the United States, accounting for 19% of the market. With approximately 155,000 employees, it also ran more than 2800 stores in Canada, Mexico, China, and Turkey. The company’s subsidiaries included Geek Squad, Magnolia Audio Video, and Pacific Sales. In Canada, Best Buy operated under both the Best Buy and Future Shop labels. Best Buy’s mission was to make technology deliver on its promises to customers. To accomplish this, Best Buy helped customers realize the benefits of technology and techno-
  • 23. logical changes so they could enrich their lives in a variety of ways through connectivity: “To make life fun and easy,”1 as Best Buy put it. This was what drove the company to continually increase the tools to support customers in the hope of providing end-to-end technology solutions. As a public company, Best Buy’s top objectives were sustained growth and earnings. This was accomplished in part by constantly reviewing its business model to ensure it was satisfying customer needs and desires as effectively and completely as possible. The company strived to have not only extensive product offerings but also highly trained employees with extensive product 625 C A S E 22 Best Buy Co. Inc. (2009): Sustainable Customer-Centricity Model? Alan N. Hoffman Bentley University
  • 24. # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 625 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services This case was prepared by Professor Alan N. Hoffman, Bentley University and Erasmus University. Copyright © 2015 by Alan N. Hoffman. The copyright holder is solely responsible for case content. Reprint permission is solely granted to the publisher, Prentice Hall, for Strategic Management and Business Policy, 14th Edition (and the interna- tional and electronic versions of this book) by the copyright holder, Alan N. Hoffman. Any other publication of the case (translation, any form of electronics or other media) or sale (any form of partnership) to another publisher will be in violation of copyright law, unless Alan N. Hoffman has granted an additional written permission. Reprinted
  • 25. by permission. The author would like to thank MBA students Kevin Clark, Leonard D’Andrea, Amanda Genesky, Geoff Merritt, Chris Mudarri, and Dan Fowler for their research. No part of this publication may be copied, stored, transmitted, reproduced, or distributed in any form or medium whatsoever without the permission of the copyright owner, Alan N. Hoffman. Z22_WHEE0811_14_GE_CA22.indd 625 5/20/14 12:00 PM 626 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-Centricity Model? knowledge. The company encouraged its employees to go out of their way to help customers un- derstand what these products could do and how customers could get the most out of the products they purchased. Employees recognized that each customer was unique and thus determined the best method to help that customer achieve maximum enjoyment from the product(s) purchased. From a strategic standpoint, Best Buy moved from being a
  • 26. discount retailer (a low-price strategy) to a service-oriented firm that relied on a differentiation strategy. In 1989, Best Buy changed the compensation structure for sales associates from commission-based to non- commissioned-based, which resulted in consumers having more control over the purchasing pro- cess and in cost savings for the company (the number of sales associates was reduced). In 2005, Best Buy took customer service a step further by moving from peddling gadgets to a customer- centric operating model. It was now gearing up for another change to focus on store design and providing products and services in line with customers’ desire for constant connectivity. # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 626 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF
  • 27. S4CARlISlE Publishing Services Company History2 From Sound of Music to Best Buy Best Buy was originally known as Sound of Music. Incorporated in 1966, the company started as a retailer of audio components and expanded to retailing video products in the early 1980s with the introduction of the videocassette recorder to its product line. In 1983, the company changed its name to Best Buy Co. Inc. (Best Buy). Shortly thereafter, Best Buy began operat- ing its existing stores under a “superstore” concept by expanding product offerings and using mass marketing techniques to promote those products. Best Buy dramatically altered the function of its sales staff in 1989. Previously, the sales staff worked on a commission basis and was more proactive in assisting customers coming into the stores as a result. Since 1989, however, the commission structure has been terminated and sales associates have developed into educators that assist
  • 28. customers in learning about the products offered in the stores. The customer, to a large extent, took charge of the purchasing process. The sales staff’s mission was to answer customer questions so that the customers could decide which product(s) fit their needs. This differed greatly from their former mission of simply generating sales. In 2000, the company launched its online retail store: BestBuy.com. This allowed customers a choice between visiting a physical store and purchasing products online, thus expanding Best Buy’s reach among consumers. Expansion Through Acquisitions In 2000, Best Buy began a series of acquisitions to expand its offerings and enter international markets: 2000: Best Buy acquired Magnolia Hi-Fi Inc., a high-end retailer of audio and video products and services, which became Magnolia Audio Video in 2004. This acquisition allowed Best Buy access to a set of upscale customers.
  • 29. 2001: Best Buy entered the international market with the acquisition of Future Shop Ltd, a leading consumer electronics retailer in Canada. This helped Best Buy increase revenues, gain market share, and leverage operational expertise. The same year, Best Buy also opened its first Canadian store. In the same year, the company purchased Musicland, a mall-centered music retailer throughout the United States (divested in 2003). 2002: Best Buy acquired Geek Squad, a computer repair service provider, to help develop a technological support system for customers. The retailer began by incorporating in-store Geek Squad centers in its 28 Minnesota stores, then expanding nationally, and eventually internationally in subsequent years. Z22_WHEE0811_14_GE_CA22.indd 626 5/20/14 12:00 PM # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 627
  • 30. Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer - Centricity Model? 627 2005: Best Buy opened the first Magnolia Home Theater “store- within-a-store” (located within the Best Buy complex). 2006: Best Buy acquired Pacific Sales Kitchen and Bath Centers Inc. to develop a new customer base: builders and remodelers. The same year, Best Buy also acquired a 75% stake in Jiangsu Five Star Appliance Co., Ltd, a China-based appliance and consumer electronics retailer. This enabled the company to access the
  • 31. Chinese retail market and led to the opening of the first Best Buy China store on January 26, 2007. 2007: Best Buy acquired Speakeasy Inc., a provider of broadband, voice, data, and informa- tion technology services, to further its offering of technological solutions for customers. 2008: Through a strategic alliance with the Carphone Warehouse Group, a UK-based provider of mobile phones, accessories, and related services, Best Buy Mobile was developed. After acquiring a 50% share in Best Buy Europe (with 2414 stores) from the Carphone Warehouse, Best Buy intended to open small-store formats across Europe in 2011.3 Best Buy also acquired Napster, a digital download provider, through a merger to counter the falling sales of compact discs. The first Best Buy Mexico store was opened. 2009: Best Buy acquired the remaining 25% of Jiangsu Five Star. Best Buy Mobile moved into Canada.
  • 32. Industry Environment Industry Overview Despite the negative impact the financial crisis had on economies worldwide, in 2008 the consumer electronics industry managed to grow to a record high of US$694 billion in sales—a nearly 14% increase over 2007. In years immediately prior, the growth rate was similar: 14% in 2007 and 17% in 2006. This momentum, however, did not last. Sales dropped 2% in 2009, the first decline in 20 years for the electronics giant. A few product segments, including televisions, gaming, mobile phones, and Blu-ray players, drove sales for the company. Television sales, specifically LCD units, which accounted for 77% of total television sales, were the main driver for Best Buy, as this segment alone accounted for 15% of total industry revenues. The gaming segment continued to be a bright spot for the indus- try as well, as sales were expected to have tremendous room for growth. Smartphones were an- other electronics industry segment predicted to have a high
  • 33. growth impact on the entire industry. The consumer electronics industry had significant potential for expansion into the global marketplace. There were many untapped markets, especially newly developing countries. These markets were experiencing the fastest economic growth while having the lowest own- ership rate for gadgets.4 Despite the recent economic downturn, the future for this industry was optimistic. A consumer electronics analyst for the European Market Research Institute predicted that the largest growth will be seen in China (22%), the Middle East (20%), Russia (20%), and South America (17%).5 Barriers to Entry As globalization spread and use of the Internet grew, barriers to entering the consumer electronics industry were diminished. When the industry was dominated by brick-and-mortar companies, obtaining the large capital resources needed for entry into the market was a barrier for those looking to gain any significant market share. Expanding a business meant purchas-
  • 34. ing or leasing large stores that incurred high initial and overhead costs. However, the Internet significantly reduced the capital requirements needed to enter the industry. Companies like Amazon.com and Dell utilized the Internet to their advantage and gained valuable market share. Z22_WHEE0811_14_GE_CA22.indd 627 5/20/14 12:00 PM # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 628 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services 628 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-Centricity Model?
  • 35. The shift toward Internet purchasing also negated another once strong barrier to entry: cus- tomer loyalty. The trend was that consumers would research products online to determine which one they intended to purchase and then shop around on the Internet for the lowest possible price. Even though overall barriers were diminished, there were still a few left, which a company like Best Buy used to its advantage. The first, and most significant, was economies of scale. With over 1000 locations, Best Buy used its scale to obtain cost advantages from suppliers due to high quantity orders. Another advantage was in advertising. Large firms had the ability to increase advertising budgets to deter new entrants into the market. Smaller companies generally did not have the marketing budgets for massive television campaigns, which were still one of the most effective marketing strategies available to retailers. Although Internet sales were growing, the in- dustry was still dominated by brick-and-mortar stores. Most consumers looking for electronics— especially major electronics—felt a need to actually see their
  • 36. prospective purchases in person. Having the ability to spend heavily on advertising helped increase foot traffic to these stores. $0 $5,000I n M ill io n s $10,000 $15,000 $20,000 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2005
  • 37. 2006 2007 2008 2009 2010 ExHIbIt 1 Quarterly Sales, Best Buy Co., Inc. SOURCE: Best Buy Co., Inc. Internal Environment Finance While Best Buy’s increase in revenue was encouraging (see Exhibit 1), recent growth had been fueled largely by acquisition, especially Best Buy’s fiscal year 2009 revenue growth. At
  • 38. the same time, net income and operating margins had been declining (see Exhibits 2 and 3). Although this could be a function of increased costs, it was more likely due to pricing pres- sure. Given the current adverse economic conditions, prices of many consumer electronic products had been forced down by economic and competitive pressures. These lower prices caused margins to decline, negatively affecting net income and operating margins. Best Buy’s long-term debt increased substantially from fiscal 2008 to 2009 (see Exhibit 4), which was primarily due to the acquisition of Napster and Best Buy Europe. The trend in available cash has been a mirror image of long-term debt. Available cash increased from fiscal 2005 to 2008 and then was substantially lower in 2009 for the same reason. $0 $200 $400
  • 39. In M ill io n s $600 $800 $1,000 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2005 2006 2007 2008
  • 40. 2009 2010 ExHIbIt 2 Quarterly Net Income, Best Buy Co., Inc. SOURCE: Best Buy Co., Inc. Z22_WHEE0811_14_GE_CA22.indd 628 5/20/14 12:00 PM # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 629 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF
  • 41. S4CARlISlE Publishing Services C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer- Centricity Model? 629 While the change in available cash and long-term debt were not desirable, the bright side was that this situation was due to the acquisition of assets, which led to a significant increase in revenue for the company. Ultimately, the decreased availability of cash would seem to be temporary due to the circumstances. The more troubling concern was the decline in net income and operating margins, which Best Buy needed to find a way to turn around. If the problems with net income and operating margins were fixed, the trends in cash and long-term debt would also begin to turn around. At first blush, the increase in accounts receivable and inventory was not necessarily alarm- ing since revenues were increasing during this same time period (see Exhibit 5). However, closer inspection revealed a 1% increase in inventory from
  • 42. fiscal 2008 to 2009 and a 12.5% in- crease in revenue accompanied by a 240% increase in accounts receivable. This created a poten- tial risk for losses due to bad debts. (For complete financial statements, see Exhibits 6 and 7.) 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2005 2006 2007
  • 43. 2008 2009 2010 ExHIbIt 3 Operating Margin, Best Buy Co., Inc. SOURCE: Best Buy Co., Inc. $0 $500 $1,000 In M ill io
  • 44. n s $1,500 $2,000 2005 2006 2007 2008 2009 Long term Debit Cash ExHIbIt 4 Long-Term Debt and Cash, Best Buy Co., Inc. SOURCE: Best Buy Co., Inc. $0 $1,000
  • 45. $2,000 $3,000 $4,000 $5,000 2005 2006 2007 2008 2009 Inventory Accounts receivable ExHIbIt 5 Accounts Receivable and Inventory, Best Buy Co., Inc. SOURCE: Best Buy Co., Inc. Z22_WHEE0811_14_GE_CA22.indd 629 5/20/14 12:00 PM
  • 46. # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 630 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services 630 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-Centricity Model? ExHIbIt 6 Consolidated Balance Sheets, Best Buy Co., Inc. ($ in millions, except per share and share amounts) February 28, 2009 March 1, 2008 Assets Current assets: Cash and cash equivalents $498 $1,438 Short-term investments 11 64
  • 47. Receivables 1,868 549 Merchandise inventories 4,753 4,708 Other current assets 1,062 583 Total current assets 8,192 7,342 Property and equipment: Land and buildings 755 732 Leasehold improvements 2,013 1,752 Fixtures and equipment 4,060 3,057 Property under capital lease 112 67 6,940 5,608 Less accumulated depreciation 2,766 2,302 Net property and equipment 4,174 3,306 Goodwill 2,203 1,088 Tradenames 173 97 Customer relationships 322 5 Equity and other investments 395 605 Other assets 367 315 Total assets $15,826 $12,758 Liabilities and shareholders’ equity
  • 48. Current liabilities: Accounts payable $4,997 $4,297 Unredeemed gift card liabilities 479 531 Accrued compensation and related expenses 459 373 Accrued liabilities 1,382 975 Accrued income taxes 281 404 Short-term debt 783 156 Current portion of long-term debt 54 33 Total current liabilities 8,435 6,769 Long-term liabilities 1,109 838 Long-term debt 1,126 627 Minority interests 513 40 Shareholders’ equity: Preferred stock, $1.00 par value: Authorized — 400,000 shares; Issued and outstanding — none — — Common stock, $0.10 par value: Authorized — 1.0 billion shares; Issued and outstanding — 413,684,000 and 410,578,000 shares, respectively 41 41
  • 49. Additional paid-in capital 205 8 Retained earnings 4,714 3,933 Accumulated other comprehensive (loss) income (317) 502 Total shareholders’ equity 4,643 4,484 Total liabilities and shareholders’ equity $15,826 $12,758 SOURCE: Best Buy Co., Inc. 2009 Form 10-K, p. 56. Z22_WHEE0811_14_GE_CA22.indd 630 5/20/14 12:00 PM # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 631 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services
  • 50. C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer - Centricity Model? 631 Best Buy’s marketing goals were four-fold: (1) to market various products based on the customer-centricity operating model, (2) to address the needs of customer lifestyle groups, (3) to be at the forefront of technological advances, and (4) to meet customer needs with end- to-end solutions. Best Buy prided itself on customer centricity that catered to specific customer needs and behaviors. Over the years, the retailer created a portfolio of products and services that comple- mented one another and added to the success of the business. These products included seven distinct brands domestically, as well as other brands and stores internationally: Best Buy: This brand offered a wide variety of consumer electronics, home office products, entertainment software, appliances, and related services.
  • 51. Best Buy Mobile: These stand-alone stores offered a wide selection of mobile phones, acces- sories, and related e-services in small-format stores. Geek Squad: This brand provided residential and commercial product repair, support, and installation services both in-store and onsite. Fiscal Years Ended February 28, 2009 March 1, 2008 March 3, 2007 Revenue $45,015 $40,023 $35,934 Cost of goods sold 34,017 30,477 27,165 Gross profit 10,998 9,546 8,769 Selling, general and administrative expenses 8,984 7,385 6,770 Restructuring charges 78 — —
  • 52. Goodwill and tradename impairment 66 — — Operating income Other income (expense) Investment income and other 35 129 162 Investment impairment (111) — — Interest expense (94) (62) (31) Earnings before income tax expense, minority interests and equity in income (loss) of affiliates Income tax expense 674 815 752 Minority interests in earnings (30) (3) (1) Equity in income (loss) of affiliates 7 (3) — Net earnings $1,003 $1,407 $1,377 Earnings per share Basic $2.43 $3.20 $2.86 Diluted $2.39 $3.12 $2.79 Weighted-average common shares outstanding (in millions)
  • 53. Basic 412.5 439.9 482.1 Diluted 422.9 452.9 496.2 1,870 2,161 1,999 1,700 2,228 2,130 ExHIbIt 7 Consolidated Statements of Earnings, Best Buy Co., Inc. ($ in millions, except per share amounts) SOURCE: Best Buy Co., Inc. 2009 Form 10-K, p. 57. Marketing Z22_WHEE0811_14_GE_CA22.indd 631 5/20/14 12:00 PM
  • 54. # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 632 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services 632 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-Centricity Model? Magnolia Audio Video: This brand offered high-end audio and video products and related services. Napster: This brand was an online provider of digital music. Pacific Sales: This brand offered high-end home improvement products, primarily including appliances, consumer electronics, and related services.
  • 55. Speakeasy: This brand provided broadband, voice, data, and information technology services to small businesses. Starting in 2005, Best Buy initiated a strategic transition to a customer-centric operating model, which was completed in 2007. Prior to 2005, the company focused on customer groups such as affluent professional males, young entertainment enthusiasts, upscale suburban moth- ers, and technologically advanced families.6 After the transition, Best Buy focused more on customer lifestyle groups such as affluent suburban families, trendsetting urban dwellers, and the closely knit families of Middle America.7 To target these various segments, Best Buy acquired firms with aligned strategies, which were used as a competitive advantage against its strongest competition, such as Circuit City and Wal-Mart. The acquisitions of Pacific Sales, Speakeasy, and Napster, along with the development of Best Buy Mobile, created more prod- uct offerings, which led to more profits.
  • 56. Marketing these different types of products and services was a difficult task. That was why Best Buy’s employees had more training than competitors. This knowledge service was a value-added competitive advantage. Since the sales employees no longer operated on a commission-based pay structure, consumers could obtain knowledge from salespeople without being subjected to high-pressure sales techniques. This was generally seen to enhance customer shopping satisfaction. Operations Best Buy’s operating goals included increasing revenues by growing its customer base, gain- ing more market share internationally, successfully implementing marketing and sales strate- gies in Europe, and having multiple brands for different customer lifestyles through M&A (Merger and Acquisition). Domestic Best Buy store operations were organized into eight territories, with each ter- ritory divided into districts. A retail field officer oversaw store performance through district
  • 57. managers, who met with store employees on a regular basis to discuss operations strategies such as loyalty programs, sales promotion, and new product introductions.8 Along with do- mestic operations, Best Buy had an international operation segment, originally established in connection with the acquisition of Canada-based Future Shop.9 In fiscal 2009, Best Buy opened up 285 new stores in addition to the European acquisition of 2414 Best Buy Europe stores. It relocated 34 stores and closed 67 stores. Human Resources The objectives of Best Buy’s human resources department were to provide consumers with the right knowledge of products and services, to portray the company’s vision and strategy on an everyday basis, and to educate employees on the ins and outs of new products and services. Best Buy employees were required to be ethical and knowledgeable. This principle started within the top management structure and filtered down from the retail field officer through district managers, and through store managers to the employees
  • 58. on the floor. Every employee had to have the company’s vision embedded in their service and attitude. Z22_WHEE0811_14_GE_CA22.indd 632 5/20/14 12:00 PM # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 633 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer - Centricity Model? 633 Despite Best Buy’s efforts to train an ethical and knowledgeable employee force, there
  • 59. were some allegations and controversy over Best Buy employees, which gave the company a black eye in the public mind. One lawsuit claimed that Best Buy employees had misrepre- sented the manufacturer’s warranty in order to sell its own product service and replacement plan. The lawsuit accused Best Buy of “entering into a corporate-wide scheme to institute high-pressure sales techniques involving the extended warranties” and “using artificial barri- ers to discourage consumers who purchased the ‘complete extended warranties’ from making legitimate claims.”10 In a more recent case (March 2009), the U.S. District Court granted Class Action certification to allow plaintiffs to sue Best Buy for violating its “Price Match” policy. According to the ruling, the plaintiffs alleged that Best Buy employees would aggressively deny consumers the ability to apply the company’s “price match guarantee.”11 The suit also alleged that Best Buy had an undisclosed “Anti-Price Matching Policy,” where the company told its employees not to allow price matches and gave financial
  • 60. bonuses to employees who complied. Competition Brick-and-Mortar Competitors Wal-Mart Stores Inc., the world’s largest retailer, with revenues over US$405 billion, operated worldwide and offered a diverse product mix with a focus on being a low-cost provider. In recent years, Wal-Mart increased its focus on grabbing market share in the consumer electron- ics industry. In the wake of Circuit City’s liquidation,12 Wal - Mart was stepping up efforts by striking deals with Nintendo and Apple that would allow each company to have their own in-store displays. Wal-Mart also considered using Smartphones and laptop computers to drive growth.13 It was refreshing 3500 of its electronics departments and was beginning to offer a wider and higher range of electronic products. These efforts should help Wal-Mart appeal to the customer segment looking for high quality at the lowest possible price.14
  • 61. GameStop Corp. was the leading video game retailer with sales of almost US$9 billion as of January 2009, in a forecasted US$22 billion industry. GameStop operated over 6000 stores throughout the United States, Canada, Australia, and Europe, as a retailer of both new and used video game products including hardware, software, and gaming accessories.15 The advantage GameStop had over Best Buy was the number of locations: 6207 GameStop locations compared to 1023 Best Buy locations. However, Best Buy seemed to have what it took to overcome this advantage—deep pockets. With significantly higher net income, Best Buy could afford to take a hit to its margins and undercut GameStop prices.16 RadioShack Corp. was a retailer of consumer electronics goods and services, including flat panel televisions, telephones, computers, and consumer electronics accessories. Although the company grossed revenues of over US$4 billion from 4453 locations, RadioShack consis- tently lost market share to Best Buy. Consumers had a
  • 62. preference for RadioShack for audio and video components, yet preferred Best Buy for their big box purchases.17 Second tier competitors were rapidly increasing. Wholesale shopping units were becom- ing more popular, and companies such as Costco and BJ’s had increased their piece of the consumer electronics pie over the past few years. After Circuit City’s bankruptcy, mid-level electronics retailers like HH Gregg and Ultimate Electronics were scrambling to grab Circuit City’s lost market share. Ultimate Electronics, owned by Mark Wattles, who was a major investor in Circuit City, had a leg up on his competitors. Wattles was on Circuit City’s board of executives and had firsthand access to profitable Circuit City stores. Ultimate Electronics planned to expand its operations by at least 20 stores in the near future. Z22_WHEE0811_14_GE_CA22.indd 633 5/20/14 12:00 PM
  • 63. # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 634 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services 634 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-Centricity Model? Amazon.com Inc., since 1994, had grown into the United States’ largest online retailer with revenues of over US$19 billion in 2008 by providing just about any product imaginable through its popular website. Created as an online bookstore, Amazon soon ventured into vari- ous consumer electronics product categories including computers, televisions, software, video games, and much more.18
  • 64. Amazon.com gained an advantage over its supercenter competitors because it was able to maintain a lower cost structure compared to brick-and-mortar companies like Best Buy. Amazon was able to push those savings through to its product pricing and selection/diversification. With an increasing trend in the consumer electronics industry to shop online, Amazon.com was posi- tioned perfectly to maintain strong market growth and potentially steal some market share away from Best Buy. Netflix Inc. was an online video rental service, offering selections of DVDs and Blu-ray discs. Since its establishment in 1997, Netflix had grown into a US$1.4 billion company. With over 100,000 titles in its collection, the company shipped for free to approximately 10 million subscribers. Netflix began offering streaming downloads through its website, which eliminated the need to wait for a DVD to arrive. Netflix was quickly changing the DVD market, which had dramatically impacted brick- and-mortar stores such as Blockbuster and Hollywood Video
  • 65. and retailers who offered DVDs for sale. In a responsive move, Best Buy partnered with CinemaNow to enter the digital movie distribution market and counter Netflix and other video rental providers.19 Online Competitors Core Competencies Customer-Centricity Model Most players in the consumer electronics industry focused on delivering products at the lowest cost (Wal-Mart—brick-and-mortar; Amazon—web-based). Best Buy, however, took a differ- ent approach by providing customers with highly trained sales associates who were available to educate customers regarding product features. This allowed customers to make informed buying decisions on big-ticket items. In addition, with the Geek Squad, Best Buy was able to offer and provide installation services, product repair, and ongoing support. In short, Best Buy provided an end-to-end solution for its customers.
  • 66. Best Buy used its customer-centricity model, which was built around a significant data- base of customer information, to construct a diversified portfolio of product offerings. This let the company offer different products in different stores in a manner that matched customer needs. This in turn helped keep costs lower by shipping the correct inventory to the correct locations. Since Best Buy’s costs were increased by the high level of training needed for sales associates and service professionals, it had been important that the company remain vigilant in keeping costs down wherever it could without sacrificing customer experience. The tremendous breadth of products and services Best Buy was able to provide allowed customers to purchase all components for a particular need within the Best Buy family. For example, if a customer wanted to set up a first-rate audio- visual room at home, he or she could go to the Magnolia Home Theater store-within-a-store at any Best Buy location and use the knowledge of the Magnolia or Best Buy associate in the television and audio
  • 67. areas to determine which television and surround sound theater system best fit their needs. The customer could then employ a Geek Squad employee to install and set up the televi- sion and home theater system. None of Best Buy’s competitors offered this extensive level of service. Z22_WHEE0811_14_GE_CA22.indd 634 5/20/14 12:00 PM # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 635 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-
  • 68. Centricity Model? 635 Through its series of acquisitions, Best Buy had gained valuable experience in the process of integrating companies under the Best Buy family. The ability to effectively determine where to expand was important to the company’s ability to differentiate itself in the marketplace. Additionally, Best Buy was also successfully integrating employees from acquired compa- nies. Best Buy had a significant global presence, which was important because of the maturing domestic market. This global presence provided the company with insights into worldwide trends in the consumer electronics industry and afforded access to newly developing markets. Best Buy used this insight to test products in different markets in its constant effort to meet and anticipate customer needs. Successful Acquisitions Retaining Talent Analyzing Circuit City’s demise, many experts concluded one of the major reasons for the
  • 69. company’s downfall was that Circuit City let go of their most senior and well-trained sales staff in order to cut costs. Best Buy, on the other hand, had a reputation for retaining talent and was widely recognized for its superior service. Highly trained sales professionals had become a unique resource in the consumer electronics industry, where technology was changing at an unprecedented rate, and was a significant source of competitive advantage. Challenges Ahead Economic Downturn Electronics retailers like Best Buy sold products that could be described as “discretionary items, rather than necessities.”20 During economic recessions, however, consumers had less disposable income to spend. While there was optimism about a possible economic turnaround in 2010 or 2011, if the economy continued to stumble, this could present a real threat to sellers of discretionary products. In order to increase sales revenues, many retailers, including
  • 70. Best Buy, offered customers low-interest financing through their private-label credit cards. These promotions were tremen- dously successful for Best Buy. From 2007 to 2009, these private-label credit card purchases accounted for 16%–18% of Best Buy’s domestic revenue. Due to the credit crisis, however, the Federal Reserve issued new regulations that could restrict companies from offering de- ferred interest financing to customers. If Best Buy and other retailers were unable to extend these credit lines, it could have a tremendous negative impact on future revenues.21 Pricing and Debt Management The current depressed economic conditions, technological advances, and increased competi- tion put a tremendous amount of pricing pressure on many consumer electronics products. This was a concern for all companies in this industry. The fact that Best Buy did not compete strictly on price structure alone made this an even bigger concern. Given the higher costs that Best Buy incurred training employees, any pricing pressure that decreased margins put stress
  • 71. on Best Buy’s financial strength. In addition, the recent acquisition of Napster and the 50% stake in Best Buy Europe significantly increased Best Buy’s debt and reduced available cash. Even in prosperous times, debt management was a key factor in any company’s success, and it became even more important during the economic downturn. (See Exhibits 6 and 7 for Best Buy’s financial statements.) Z22_WHEE0811_14_GE_CA22.indd 635 5/20/14 12:00 PM # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 636 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services
  • 72. 636 C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer-Centricity Model? As technology improved, product life cycles, as well as prices, decreased. As a result, margins decreased. Under Best Buy’s service model, shorter product life cycles increased training costs. Employees were forced to learn new products with higher frequency. This was not only costly but also increased the likelihood that employees would make mistakes, thereby tarnish- ing Best Buy’s service record and potentially damaging one of its most important, if not its most important, differentiators. In addition, more resources would be directed at research of new products to make sure Best Buy continued to offer the products consumers desire. One social threat to the retail industry was the growing popularity of the online market- place. Internet shoppers could browse sites searching for the best deals on specific products. This technology allowed consumers to become more educated about their purchases, while
  • 73. creating increased downward price pressure. Ambitious consumers could play the role of a Best Buy associate themselves by doing product comparisons and information gathering with- out a trip to the store. This emerging trend created a direct threat to companies like Best Buy, which had 1023 stores in its domestic market alone. One way Best Buy tried to continue the demand for brick-and-mortar locations and counter the threat of Internet-based competition was by providing value-added services in stores. Customer service, repairs, and interactive product displays were just a few examples of these services.22 Products and Service Leadership The two former CEOs of Best Buy, Richard Shultze and Brad Anderson, were extremely suc- cessful at making the correct strategic moves at the appropriate times. With Brad Anderson stepping aside in June 2009, Brian Dunn replaced him as the new CEO. Although Dunn worked for the company for 24 years and held the key positions of COO and President during
  • 74. his tenure, the position of CEO brought him to a whole new level and presented new chal- lenges, especially during the economic downturn. He was charged with leading Best Buy into the world of increased connectivity. This required a revamping of products and store setups to serve customers in realizing their connectivity needs. This was a daunting task for an experi- enced CEO, let alone a new CEO who had never held the position. Wal-Mart Best Buy saw its largest rival, Circuit City, go bankrupt. However, a new archrival, Wal-Mart, was expanding into consumer electronics and stepping up competition in a price war Wal-Mart hoped to win. Best Buy needed to face the competition not by lowering prices, but by coming up with something really different. Best Buy had to determine the correct path to improve its ability to differentiate itself from competitors, which was increasingly difficult given an adverse economic climate and the company’s financial stress. How Best Buy could maintain innovative products, top-notch employees, and
  • 75. superior customer service while facing increased competition and operational costs was an open question. N o t e s 1. Best Buy Co. Inc., Form 10-K. Securities and Exchange Commission, February 28, 2009. 2. Ibid. 3. Ibid. 4. Greg Keller, “Threat Grows by iPod and Laptop,” The Colum- bus Dispatch, May 18, 2009, http://www.dispatch.com/live/ content/business/stories/2009/05/18/greener_gadgets.ART_ ART_05-18-09_A9_TMDSJR8.html (July 10, 2009). 5. Larry Magid, “Consumer Electronics: Future Looks Bright,” CBSNews.com, May 2, 2008, http://www.cbsnews.com/stories/ 2008/05/02/scitech/pcanswer/main4067008.shtml (July 10, 2009). 6. Best Buy Co. Inc., Form 10-K, 2009.
  • 76. Z22_WHEE0811_14_GE_CA22.indd 636 5/20/14 12:00 PM # 111708 Cust: PE/NJ/B&E Au: Wheelen Pg. No. 637 Title: Strategic Management and Business Policy Server: Jobs4 C/M/Y/K Short / Normal DESIGN SERVICES OF S4CARlISlE Publishing Services C A S E 2 2 Best Buy Co. Inc. (2009): Sustainable Customer- Centricity Model? 637 7. Ibid. 8. Ibid. 9. Ibid. 10. Manhattan Institute for Policy Research, “They’re Making a Federal Case Out of It . . . in State Court,” Civil Justice Report
  • 77. 3, 2001, http://www.manhattan-institute.org/html/cjr_3_part2.htm. 11. “Best Buy Bombshell!” HD Guru, March 21, 2009, http:// hdguru.com/best-buy-bombshell/. 12. Circuit City Stores Inc. was an American retailer in brand- name consumer electronics, personal computers, entertainment soft- ware, and (until 2000) large appliances. The company opened its first store in 1949 and liquidated its final American retail stores in 2009 following a bankruptcy filing and subsequent failure to find a buyer. At the time of liquidation, Circuit City was the second-largest U.S. electronics retailer, after Best Buy. 13. Z. Bissonnette, “Wal-Mart Looks to Expand Electronics Business,” Bloggingstocks.com, May 18, 2009, http://www.bloggingstocks .com/2009/05/18/wal-mart-looks-to-expand-electronics- business/. 14. N. Maestrie, “Wal-Mart Steps Up Consumer Electronics Push,” Reuters, May 19, 2009, http://www.reuters.com/article/ technologyNews/idUSTRE54I4TR20090519.
  • 78. 15. Capital IQ, “GameStop Corp. Corporate Tearsheet,” Capital IQ, 2009. 16. E. Sherman, “GameStop Faces Pain from Best Buy, Down- loading,” BNET Technology, June 24, 2009, http://industry .bne t .com /tec h nol ogy/ 1000232 9 /g a mestop-faces-pain- from-best-buy-downloading/. 17. T. Van Riper, “RadioShack Gets Slammed,” Forbes.com, February 17, 2006, http://www.forbes.com/2006/02/17/radioshack- edmondson-retail_cx_tr_0217radioshack.html. 18. Capital IQ, “Amazon.com Corporate Tearsheet,” Capital IQ, 2009. 19. T. Kee, “Netflix Beware: Best Buy Adds Digital Dow nloads with CinemaNow Deal,” paidContent.org, June 5, 2009, http:// paidcontent.org/article/419-best-buy-adds-digital-movie- downloads-with-cinemanow-deal/. 20. Best Buy Co., Inc., Form 10-K, 2009.
  • 79. 21. Ibid. 22. Ibid. Z22_WHEE0811_14_GE_CA22.indd 637 5/20/14 12:00 PM Cover Brief ContentsContentsPrefaceAbout the AuthorsPart One: Introduction to Strategic Management and Business Policy Chapter 1: Basic Concepts of Strategic Management The Study of Strategic Management Phases of Strategic Management Benefits of Strategic ManagementGlobalization, Innovation, and Sustainability: Challenges to Strategic Management Impact of GlobalizationImpact of InnovationGlobal Issue: Regional Trade Associations Replace National Trade Barriers Impact of SustainabilityTheories of Organizational AdaptationCreating a Learning OrganizationBasic Model of Strategic ManagementEnvironmental ScanningStrategy FormulationStrategy ImplementationEvaluation and ControlFeedback/Learning ProcessInitiation of Strategy: Triggering EventsStrategic Decision MakingWhat Makes a Decision StrategicMintzberg's Modes of Strategic Decision Making Strategic Decision-Making Process: Aid to Better Decisions The Strategic Audit: Aid to Strategic Decision MakingEnd of Chapter Summary
  • 80. Appendix 1.A: Strategic Audit of a Corporation Chapter 2: Corporate Governance Role of the Board of DirectorsResponsibilities of the Board Members of a Board of DirectorsInnovation Issue: JCPenney and Innovation Strategy Highlight: Agency Theory Versus Stewardship Theory in Corporate Governance Nomination and Election of Board MembersOrganization of the BoardImpact of the Sarbanes-Oxley Act on U.S. Corporate Governance Global Issue: Global Business Board Activism At Yahoo! Trends in Corporate GovernanceThe Role of Top ManagementResponsibilities of Top ManagementSustainability Issue: CEO Pay and Corporate Performance End of Chapter Summary Chapter 3: Social Responsibility and Ethics in Strategic Management Social Responsibilities of Strategic Decision MakersResponsibilities of a Business FirmSustainabilityCorporate StakeholdersSustainability Issue: Marks & Spencer Leads the Way Strategy Highlight: Johnson & Johnson Credo Ethical Decision MakingSome Reasons for Unethical BehaviorGlobal Issue: How Rule-Based and Relationship-Based Governance Systems Affect Ethical Behavior
  • 81. Innovation Issue: Turning a Need into a Business to Solve the Need Encouraging Ethical BehaviorEnd of Chapter Summary Part Two: Scanning the Environment Chapter 4: Environmental Scanning and Industry Analysis Environmental ScanningIdentifying External Environmental VariablesSustainability Issue: Green Supercars Global Issue: SUVs Power on in China Identifying External Strategic FactorsIndustry Analysis: Analyzing the Task EnvironmentPorter's Approach to Industry Analysis Industry EvolutionInnovation Issue: Taking Stock of an Obsession Categorizing International IndustriesInternational Risk AssessmentStrategic GroupsStrategic TypesHypercompetitionUsing Key Success Factors to Create an Industry MatrixCompetitive IntelligenceSources of Competitive IntelligenceStrategy Highlight: Evaluating Competitive Intelligence Monitoring Competitors for Strategic PlanningForecastingDanger of AssumptionsUseful Forecasting TechniquesThe Strategic Audit: A Checklist for Environmental ScanningSynthesis of External Factors—EFASEnd of Chapter Summary Chapter 5: Internal Scanning: Organizational Analysis
  • 82. A Resource-Based Approach to Organizational AnalysisCore and Distinctive CompetenciesUsing Resources to Gain Competitive Advantage Determining the Sustainability of an Advantage Business ModelsValue-Chain AnalysisIndustry Value-Chain AnalysisCorporate Value-Chain AnalysisScanning Functional Resources and CapabilitiesBasic Organizational Structures Corporate Culture: The Company Way Global Issue: Managing Corporate Culture for Global Competitive Advantage: ABB vs. Panasonic Strategic Marketing Issues Innovation Issue: DoCoMo Moves against the Grain Strategic Financial Issues Strategic Research and Development (R&D) Issues Strategic Operations Issues Strategic Human Resource (HRM) Issues Sustainability Issue: The Olympic Games-Sochi 2014 and Rio 2016 Strategic Information Systems/Technology Issues The Strategic Audit: A Checklist for Organizational Analysis Synthesis of Internal FactorsEnd of Chapter Summary Part Three: Strategy Formulation Chapter 6: Strategy Formulation: Situation Analysis and Business Strategy Situational Analysis: SWOT ApproachGenerating a Strategic
  • 83. Factors Analysis Summary (SFAS) Matrix Finding a Propitious NicheReview of Mission and ObjectivesBusiness StrategiesPorter's Competitive Strategies Global Issue: The Nike Shoe Strategy vs. The New Balance Shoe Strategy Innovation Issue: CHEGG and College Textbooks Cooperative StrategiesSustainability Issue: Strategic Sustainability-Espn End of Chapter Summary Chapter 7: Strategy Formulation: Corporate Strategy Corporate StrategyDirectional StrategyGrowth StrategiesStrategy Highlight: Transaction Cost Economics Analyzes Vertical Growth Strategy International Entry Options for Horizontal GrowthGlobal Issue: Global Expansion is not Always A Path to Expansion Controversies in Directional Growth StrategiesStability StrategiesRetrenchment StrategiesPortfolio AnalysisBCG Growth-Share MatrixSustainability Issue: General Motors and The Electric Car Advantages and Limitations of Portfolio AnalysisManaging a Strategic Alliance PortfolioCorporate ParentingInnovation Issue: To Red Hat or Not? Developing a Corporate Parenting StrategyHorizontal Strategy and Multipoint CompetitionEnd of Chapter Summary Chapter 8: Strategy Formulation: Functional Strategy and
  • 84. Strategic Choice Functional StrategyMarketing StrategyFinancial Strategy Research and Development (R&D) Strategy Operations Strategy Global Issue: Why doesn't Starbucks want to Expand to Italy? Purchasing Strategy Sustainability Issue: How Hot is Hot? Logistics Strategy Innovation Issue: When an Innovation Fails to Live Up to Expectations Human Resource Management (HRM) Strategy Information Technology Strategy The Sourcing Decision: Location of FunctionsStrategies to AvoidStrategic Choice: Selecting the Best StrategyConstructing Corporate Scenarios The Process of Strategic Choice Developing PoliciesEnd of Chapter Summary Part Four: Strategy Implementation and Control Chapter 9: Strategy Implementation: Organizing for Action Strategy ImplementationWho Implements Strategy?What Must Be Done?Developing Programs, Budgets, and ProceduresSustainability Issue: A Better Bottle-Ecologic Brands Achieving SynergyHow is Strategy to Be Implemented? Organizing for Action Structure Follows Strategy
  • 85. Stages of Corporate Development Innovation Issues: The P&G Innovation Machine Stumbles Organizational Life CycleAdvanced Types of Organizational StructuresReengineering and Strategy ImplementationSix SigmaDesigning Jobs to Implement Strategy International Issues in Strategy ImplementationInternational Strategic Alliances Stages of International Development Global Issue: Outsourcing Comes Full Circle Centralization Versus Decentralization End of Chapter Summary Chapter 10: Strategy Implementation: Staffing and Directing StaffingStaffing Follows Strategy Selection and Management Development Innovation Issue: How to Keep Apple "Cool" Problems in Retrenchment International Issues in Staffing LeadingSustainability Issue: Panera and The "Panera Cares Community Cafe" Managing Corporate Culture Action Planning Management by Objectives Total Quality Management International Considerations in Leading Global Issue: Cultural Differences Create Implementation
  • 86. Problems in Merger End of Chapter Summary Chapter 11: Evaluation and Control Evaluation and Control in Strategic ManagementMeasuring PerformanceAppropriate Measures Types of Controls Innovation Issue: Reuse of Electric Vehicle Batteries Activity-Based Costing Enterprise Risk Management Primary Measures of Corporate Performance Balanced Scorecard Approach: Using Key Performance Measures Sustainability Issue: E-Receipts Primary Measures of Divisional and Functional Performance Responsibility Centers Using Benchmarking to Evaluate Performance International Measurement Issues Global Issue: Counterfeit Goods and Pirated Software: A Global Problem Strategic Information SystemsEnterprise Resource Planning (ERP) Radio Frequency Identification (RFID) Divisional and Functional is Support Problems in Measuring Performance Short-Term Orientation
  • 87. Goal Displacement Guidelines for Proper ControlStrategic Incentive ManagementEnd of Chapter Summary Part Five: Introduction to Case Analysis Chapter 12: Suggestions for Case Analysis The Case MethodResearching the Case SituationFinancial Analysis: A Place to BeginAnalyzing Financial Statements Common-Size Statements Z-Value and the Index of Sustainable Growth Useful Economic Measures Format for Case Analysis: The Strategic AuditEnd of Chapter Summary Appendix 12.A: Resources for Case Research Appendix 12.B: Suggested Case Analysis Methodology Using the Strategic Audit Appendix 12.C: Example of Student-Written Strategic Audit Part Six: Cases in Strategic Management Section A: Corporate Governance: Executive Leadership Case 1: The Recalcitrant Director at Byte Products, Inc.: Corporate Legality versus Corporate Responsibility Several