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Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-1
CHAPTER 7
Strategy and Strategic Management
Insights and hard work deliver results
Chapter 7 Overview
Each Chapter contains several inset features designed to assist the student reader in applying
the concepts to relevant examples. Management Live illustrates how popular movies
demonstrate management concepts in the chapter. Role Models features a management
professional that illustrates key chapter concepts in a novel, visionary or inspirational way.
Explore Yourself refers students to self assessment activities relevant to concepts in the
chapter. Ethics Check profiles examples of ethical issues in management. Manager's Library
features books that illustrate current events or trends relevant to chapter concepts. Facts to
Consider introduces research or trends that may be used for class discussion in the classroom
or online for distance learning.
Chapter Seven provides a definition of strategy and a review of strategic management and
insights. The chapter explores various levels of strategies, including those for growth, in use
at most organizations. Considerable attention is then devoted to both corporate-level and
business-level strategy formulation. Divestiture and restructuring strategies, used primarily
when an organization runs into difficulties, are reviewed. A brief discussion of firms
pursuing global strategies, cooperative and partnership strategies, and e-business strategies
follows.
This chapter focuses on strategic management and the role that strategy plays in achieving
competitive advantage and maximum organizational performance. The chapter begins by
defining the key terms and concepts in strategic management and describing the strategic
management process. Emphasis is placed on strategy formulation and strategy
implementation. The importance of strategic management for gaining a competitive
advantage is also discussed. This is followed by a discussion of the different levels of
strategies used by an organization. Considerable attention is then devoted to both corporate-
level and business-level strategy formulation. The chapter’s focus then shifts to the process of
strategy implementation, with emphasis being placed on common strategic planning failures
that hinder strategy implementation and the importance and role of strategic leadership.
Next is a review of how managers formulate and implement strategies to accomplish long-
term goals and competitive advantage. The steps of the strategic management process are
defined, along with an explanation of strategy formulation as the basis of organization’s
mission and objectives. A SWOT analysis, tool to analyze company and industry strategy and
competitiveness, details an organization’s internal strengths and weaknesses and external
opportunities and threats is explored further.
Porter’s competitive strategies model and tools to understand the competition position of a
company and challenges within its industry are reviewed. Last is a discussion of strategic
leadership to ensure strategy implementation and control.
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-2
Chapter 7 Takeaway Questions
• Takeaway 7.1 What Types of Strategies Are Used by Organizations?
• Takeaway 7.2 How Do Managers Formulate and Implement Strategies?
Chapter 7 Objectives
• To define and explain strategy as a comprehensive plan to achieve competitive
advantage.
• To categorize and explain corporate, business, and functional strategies used within
organizations.
• To understand how organizations expand and the types of growth strategies utilized.
• To explain strategies organizations employ when they run into performance
difficulties.
• To explain the importance of global growth opportunities and ways organizations can
pursue globalization strategies for further growth.
• To explain how cooperative strategies and further cooperation among organizations
create new areas of mutual interest.
• To explain how companies use the internet or e-business strategies for competitive
advantage.
• To decipher between web-based business models.
• To explain how an organization’s mission and objectives becomes a basis for its
strategy formulation.
• To define and explore how a SWOT analysis is used to examine an organization’s
strengths and weaknesses as a basis for developing strategies.
• To review Michael Porter’s models as useful tools in understanding the competitive
position of a company and the challenges within an industry.
• To explain Porter’s competitive strategies model.
• To understand how companies operating multiple businesses selling many different
products utilize a portfolio planning strategic approach.
• To explain the Boston Consulting Group or BCG Matrix.
• To explain the importance of strategic leadership and how to implement strategies.
• To list the responsibilities of a strategic leader.
Chapter 7 Lecture Outline:
• Takeaway 7.1 What Types of Strategies Are Used By Organizations?
o Strategy is a comprehensive plan for achieving competitive advantage
o Organizations use corporate, business, and functional strategies
o Growth strategies focus on expansion.
o Restructuring and divestiture strategies focus on consolidation
o Global strategies focus on international business initiatives
o Cooperative strategies focus on alliances and partnerships
o E-business strategies focus on using the Internet for business success.
• Takeaway 7.2 How Do Managers Formulate and Implement Strategies?
o The strategic management process formulates and implements strategies
o Strategy formulation begins with the organization’s mission and objectives
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-3
o SWOT analysis identifies strengths, weaknesses, opportunities, and threats
o Porter’s five forces model examines industry attractiveness
o Porter’s competitive strategies model identifies business or product strategies.
o Portfolio planning examines strategies across multiple businesses or products
o Strategic leadership ensures strategy implementation and control
Chapter 7 Supporting Materials
Figures
• Figure 7.1: What Are the Steps in the Strategic Management Process?
• Figure 7.2: What Does SWOT Analysis Try to Discover?
• Figure 7.3: What Is Porter’s Five Forces Model of Industry Attractiveness?
• Figure 7.4: What are Strategic Options in Porter’s Competitive Strategies Model?
• Figure 7.5: Why is the BCG Matrix Useful in Strategic Planning?
Thematic Boxes and More
• Management Live: Critical Thinking and Tron: Legacy
• Role Models: Wendy Kopp Tackles the Culture of Low Achievement
• Ethics Check: Life and Death at an Outsourcing Factory
• Facts to Consider: Disposable Workers Are Indispensible to Business Profits
• Manager’s Library: Rebooting Work Transform How Your Work in the Age of
Entrepreneurship by Maynard Webb
• Explore Yourself: Critical Thinking
• Tips to Remember: Key Operating Objectives of Organizations
• Find Inspiration: Climbing High With Patagonia, Inc.
• Table 7.1 Web-Based Business Models
Applications
• TestPrep 7 Multiple-Choice Questions
• Skill Building Portfolio
o Self-Assessment 7: Handling Facts and Inferences
o Class Exercise 7: Strategic Scenarios
o Team Project 7: Contrasting Strategies
o Hot Topic: Pro and Con Debate: How about a “double Irish” with a “Dutch
sandwich”?
• Case Snapshot: Dunkin’ Donuts – Growth Feeds a Sweet Tooth
• Sidebar case: Jamba Juice Blends for Fruitful Growth
Chapter Outline:
Takeaway 7.1: What Types of Strategies Are Used by Organizations?
• Strategy is a comprehensive plan for achieving competitive advantage
✓ A strategy is a comprehensive action plan that identifies long-term direction for
an organization and guides resource utilization to accomplish its goals
✓ “Best guess” about what to do to be successful in the face of rivalry and changing
conditions
✓ Strategic intent is a unifying target or goal
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-4
✓ Competitive advantage is an “edge” or method of operations that allows an
organization to outperform rivals
➢ Sustainable Competitive Advantage is a way of operating that is difficult to
imitate
• Organizations use corporate, business and functional strategies
✓ Corporate strategy provides direction and guides resource allocations as a whole
✓ Business strategy provides direction and guides resource allocations for an
individual unit or division within a larger enterprise
✓ Functional strategy guides activities to implement strategies at a detail or
specific operations level
➢ Such as Marketing, Finance, Manufacturing, Marketing, and Human
Resources
• Growth strategies focus on expansion
✓ Growth strategies are those designed to increase the size of current operations
➢ Concentration strategies focus on an existing business area
➢ Diversification strategies focus on entering new business areas
o Related – similar or complementary business areas
o Unrelated – entirely new business areas
o Vertical integration - acquire suppliers (backward) or customers
(forward)
• Role Models: Wendy KoppTackles the Culture of Low Achievement
In an undergraduate thesis at Princeton University, Wendy Kopp, founder of Teach for
America, proposed the creation of her nonprofit. Her strategy included “eliminating
education inequities,” by providing excellent education for kids in low-income
communities. Her goal: to help children growing up in poverty beat the culture of low
achievement. In “What’s the Lesson Here,” students can discuss Kopp’s vision for social
change and the lessons for organizations on the link between vision and strategy. Lastly,
the question of how a leader of a business can gain high levels of employee commitment
to a strategy.
• Restructuring and divestiture strategies focus on consolidation
✓ A retrenchment strategy seeks to correct weaknesses by making radical changes
to current ways of operating
➢ Liquidation – when a business closes and sells is assets to pay creditors
✓ A restructuring strategy seeks to correct weaknesses by reducing the scale or
mix of operations
➢ Chapter 11 bankruptcy - protects an organization from creditors as it re-
organizes in an attempt to restore solvency.
✓ Downsizing seeks to decrease the size of operations
✓ Divestiture sells off parts of the organization to refocus attention on core business
areas
• Explore Yourself: Critical Thinking
Critical thinking is a “must-have” for success in strategic management. It enables you to
perceive problems, hone in on their more essential aspects, gather and interpret useful
information, and make good decisions in complex conditions. Unfortunately, critical
thinking can become blurred without the luxury of full information for analysis,
common in today’s work environment with its many uncertainties.
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-5
Encourage students to take the self-assessment on “Handling Facts and Interferences” in
the Skill Building Portfolio. Consider asking students about whether they are able to
distinguish “facts” from “interferences” when answering questions.
• Global strategies focus on international business initiatives
✓ Globalization strategy adopts standardized products and advertising for
worldwide use
➢ Gillette razors
✓ Multidomestic strategy customizes products and advertising to meet local
cultural needs
➢ Proctor & Gamble consumer products
✓ Transnational strategy seeks efficiencies of global operations with attention to
local markets
➢ Ford, Sony
• Ethics Check: Life and Death at an Outsourcing Factory
➢ The sight of netting outside the dormitories of Foxconn factories is sobering when
you learn that it was installed to prevent suicides of workers who lose hope and
jump off the dormitory roof. What responsibility do employers have to make sure
workers not only have safe working conditions, but work that has meaning with a
sense of accomplishment and hope of a better future? What responsibility do U.S
companies such as Apple, Dell and HP have to make sure Foxconn remedies
conditions that lead workers to suicide? How about us as consumers? Do we have
a responsibility? Would you alter your consumption habits?
• Cooperation Strategies focus on alliances and partnerships
✓ Strategic alliances - two or more organizations create a partnership to pursue an
area of mutual interest or strengthen competitive advantage.
➢ Airlines often create strategic alliances with foreign airlines to facilitate
easier foreign travel ticketing for travelers and create a competitive
advantage for the airlines.
➢ Supplier alliances - suppliers have preferred relationships with others in
the supply chain to facilitate smooth flow of supplies.
➢ Distribution alliances - firms cooperate for product/service sales and
distribution.
✓ Co-opetition - competitors share information or technology with the intent of
creating a larger market for both
✓ IBM and Red Hat cooperate on some aspects of Linux development
• E-business strategies focus on using the internet to gain competitive advantage
➢ B2B – business to business; uses web portals and IT to link organizations
vertically in supply chains
✓ B2C – business to customers; uses web portals and IT to link
organizations with customers
✓ Social media strategy -social media is used to engage customers and
other external groups
✓ Crowdsourcing - social media strategy that becomes an interactive idea
exchange with customers.
Table 7.1 summarizes the types of web-based business models
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-6
✓ Advertising model
✓ Brokerage model
✓ Community model
✓ Freemium model
✓ Infomediary model
✓ Merchant model
✓ Referral model
✓ Subscription model
• Manager’s Library: Rebooting Work: Transform How You Work in the Age of
Entrepreneurship by Maynard Webb
The book is a practical guide to navigating the new era of what many call
the “entrepreneurial workplace.” Described is the decline of age-old face-
to-face workplace mentoring relationships between senior managers and
their juniors. Reasons include technology, shorter, more temporary work
contracts, flatter organizations resulting in fewer middle-level managers.
Although mentoring has gone by the wayside, the author’s message is to
find and access mentors on your own.
The “Reflect and React: questions ask: Does the notion of entrepreneurial
workplace seem to describe the career settings ahead for you? How about
the mentoring strategy? If you don’t have a mentor, and your employer
isn’t helpful in finding you one, how can you get yourself one? Can
mentoring work as well online as face-to-face?
7.1 Questions for discussion Suggested Answers
1) With things changing so fast today, is it really possible for a business to achieve
“sustainable” competitive advantage?
It is much more difficult to sustain an advantage today, with the speed of change
and technology. However, companies can create a sustainable culture than allows a
sustainable advantage through ongoing commitments to innovation and continuous
improvement. Examples are Apple, 3M, Proctor and Gamble, Toyota, and many
other companies.
2) Why is growth such a popular business strategy?
Growth is popular because so many owners and investors desire growth in their
returns on capital. Additionally, American culture in particular is growth-oriented
compared to other cultures.
3) Is it good news or bad news for investors when a business announces that it is
restructuring?
Usually restructuring plans are treated as “good news” for investors. The reason
for this is that such plans are usually developed when a company is experiencing
financial difficulties or sales are slowing, etc. The restructuring plan sends a signal
to the market and investors that management is addressing issues and has a plan in
place for improving results.
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-7
Takeaway 7.2 How Do Managers Formulate and Implement Strategies?
• The strategic management process formulates and implements strategies
✓ Strategic management is the process of formulating and implementing strategies
to accomplish long-term goals and sustain competitive advantage
✓ Strategy formulation is the process of creating strategies
✓ Strategy implementation is the process of putting strategies into action
• See Figure 7.1 for a description of the steps in the management process
✓ Review current situation
✓ Analyze organization and external environment
✓ Develop new strategies
✓ Implement strategies
✓ Evaluate results
• Strategy formulation begins with the organization's mission and objectives
✓ Mission is the organization’s reason for existence or purpose
✓ Operating objectives are specific short-term results that organizations try to
achieve
• SWOT analysis examines strengths, weaknesses, opportunities, and threats
✓ SWOT analysis is a tool used in strategic planning to determine the current status
of the organization
➢ Internal assessment of the organizational strengths and weaknesses
➢ External assessment of environmental opportunities and threats
✓ See Figure 7.2 for a depiction of SWOT analysis
➢ Internal Assessment of the Organization includes its: strengths and
weaknesses
➢ External assessment of the organization includes its: weaknesses,
opportunities, and threats
✓ Core competency is a special strength that gives and organization a competitive
advantage
DISCUSSION TOPIC
To prompt a lively discussion, engage the students in a SWOT analysis of your college or
university. They will typically have a lot of opinions ⎯ some quite insightful ⎯ about the
strengths and weakness of the institution. They are likely to be less well informed about the
opportunities and threats that exist in your institution’s external environment.
This activity provides students with a real-life application of SWOT analysis that will help
them to better understand how to use this analytical tool.
• Tips to Remember : Key Operating Objectives of Organizations
• Profits
• Cost efficiency
• Market share
• Product quality
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-8
• Talented workforce
• Innovation
• Social responsibility
• Sustainability
• Porter’s five forces model examines industry attractiveness
✓ Figure 7.3 illustrates the five forces model which include competitors, new
entrants, suppliers, customers and substitutes
➢ Bargaining power of suppliers
➢ Bargaining power of customers
➢ Threat of new entrants to industry
➢ Threat of substitute products
✓ Unattractive industry – intense rivalry, easy entry, substitute products, powerful
suppliers and customers
✓ Attractive industry – low rivalry, barriers to entry, few or no substitute products,
weak supplier and customer power
• Porter’s competitive strategies model examines business or product strategies
✓ A differentiation strategy seeks competitive advantage seeks competitive
advantage through uniqueness
✓ A cost leadership strategy seeks competitive advantage through operating with
lower costs than competitors
✓ A focused differentiation strategy seeks competitive advantage through
concentration on one special market segment and offering a unique product to that
segment’s customers
✓ A focused cost leadership strategy seeks competitive advantage through
concentration on one special market segment and being the low cost provider to
that market segment’s customers
✓ See Figure 7.4 for a depiction of competitive strategies model in the soft drink
industry
✓ What is the market scope – broad or narrow?
✓ What is the expected source of competitive advantage – lower price or
product uniqueness?
✓ The four combinations of answers result in:
➢ Differentiation
➢ Cost leadership
➢ Focused differentiation
➢ Focused cost leadership strategies
DISCUSSION TOPIC
If you used the Discussion Topic regarding a SWOT analysis of your college or university,
you can continue with that scenario in this Discussion Topic. Have the students discuss which
of Porter’s generic strategies that your college or university uses. Make sure that the students
fully explain their reasoning.
• Portfolio planning examines strategies across multiple businesses or products
✓ Useful for companies that operates a variety of businesses
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-9
✓ BCG matrix analysis is a planning tool for such companies
✓ See Figure 7.5 for a depiction of the BCG matrix approach
➢ Stars - high market share in high growth markets
➢ Cash cows - high market share in low growth markets
➢ Question marks - low market share in high growth markets
➢ Dogs - low market share in low growth markets
• Find Inspiration: Climbing High with Patagonia, Inc.
✓ Patagonia is a strategic success story anchored to its mission of: “building the
best product, cause no unnecessary harm, use business to inspire and implement
solutions to the environmental crisis.” Patagonia is one of the first companies to
file papers to become a benefit corporation, which means that its policies will
always “create a material positive impact on society and the environment.”
• Strategic leadership ensures strategy implementation and control
✓ Requires good organization structures and cultures, and the right staffing
✓ Strategic leadership - the capability to inspire people to successfully engage in a
process of continuous change, performance enhancement, and implementation of
organizational strategies
✓ Strategic control - responsibility of top managers to keep in touch with strategy,
how well it is being implemented and if it needs to be changed to be more
effective in accomplishing the mission
✓ A strategic leader has to:
➢ Be a guardian of trade-offs
➢ Create a sense of urgency
➢ Make sure that everyone understands the strategy
➢ Be a teacher
➢ Be a great communicator
DISCUSSION TOPIC
Ask students to pick an industry and find examples of companies that seem to be using
strategic control as opposed to those who are not. Discuss these in light of the corporate
bailouts being sought by corporations vs. those who are not.
✓ Facts to Consider: Disposable Workers Are Indispensible to Business
Profits
➢ Northwestern University economist, Robert Gordon, proclaims that we are
now in the era of disposable workers. Businesses seem enamored with the idea
of hiring less full-timers and more part-time or temporary workers that can be
added and let go according to demand, or on a “pay-as-needed approach.” The
“Your Thoughts” section poses questions about whether the switch to more
disposable workers is a good long-term strategy for businesses and other
organizations and the downsides to remaining employees. Discuss with
students how this trend may impact them and whether it is something they
have factored into their career plan.
✓ Strategic Leadership Responsibilities:
➢ A strategic leader has to be the guardian of trade-offs
➢ A strategic leader needs to create a sense of urgency
➢ A strategic leader must make sure that everyone understands the strategy
➢ A strategic leader must be a teacher
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-10
7.2 Questions for discussion Suggested Answers
1) Can an organization have a good strategy but a poor sense of mission?
Yes, a strategy answers the question “how” we will succeed; the mission says
“what” the purpose of the organization is. If a company has a poorly written
mission statement that allows for a “jack of all trades” business definition, the
company may attempt to become a conglomerate and fail, or perform with
mediocrity, even though the strategies in each separate business/ market may be
sound. On the other hand, a company may see its mission as very narrowly defined
and miss out on opportunities for growth or adaptation.
2) Would a monopoly receive a perfect score for industry attractiveness in Porter’s five
forces model?
Monopolies would be very close and may receive a perfect score. The only area
where this may be less than perfect is the power of suppliers. Even a monopoly must
rely on suppliers. Unless the monopoly happens to also be the sole customer for the
supplier’s products (unlikely for most resources), then that aspect would make the
“score” less than perfect.
3) Does the BCG Matrix oversimplify a complex strategic management problem?
Yes, the BCG matrix oversimplifies strategic positions and strategic planning. It
offers a “formula” approach and may lead to abandoning a business that may yield
very high returns if management attention is focused on the business in question.
Very few companies use the BCG matrix; it was popular in the 1970’s when
conglomerates were in vogue.
Teaching Notes
In this section, ideas, exercises, and assignments are provided to assist you in integrating the
concepts in Exploring Management for your students, especially the special features of the
text.
Management Live: Critical Thinking and Tron: Legacy
Tron: Legacy creates a virtual world within a video game with few instructions. You don't
have to wander very far off that premise to draw a strong parallel between a lawless
cyberworld and the global environment managers operate in today. Managers need strong
strategic skills to compete in a confusing global economy with the goal of survival.
Critical thinking is mentioned as the most important skill, allowing us to accumulate relevant
information, prioritize goals, and develop strategies for success. Students can gain critical
thinking skills through case studies provided in the book, but only if they go beyond finding
the right vocabulary. They need to thoroughly apply the concepts and develop a winning
strategy.
Facts to Consider:
Disposable Workers Are Becoming Indispensible to Business Profits
Northwestern University economist, Robert Gordon, proclaims that we are now in the era of
disposable workers. Businesses seem enamored with the idea of hiring less full-timers and
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-11
more part-time or temporary workers that can be added and let go according to demand, or on
a “pay-as-needed approach.” The “Your Thoughts” section poses questions about whether the
switch to more disposable workers is a good long-term strategy for businesses and other
organizations and the downsides to remaining employees. Discuss with students how this
trend may impact them and whether it is something they have factored into their career plan.
Role Models: Wendy Kopp Tackles the Culture of Low Achievement
In an undergraduate thesis at Princeton University, Wendy Kopp, founder of Teach for
America, proposed the creation of her nonprofit. Her strategy included “eliminating
education inequities,” by providing excellent education for kids in low-income communities.
Her goal: to help children growing up in poverty beat the culture of low achievement.
In “What’s the Lesson Here,” students can discuss Kopp’s vision for social change and the
lessons for organizations on the link between vision and strategy. Lastly, the question of how
a leader of a business can gain high levels of employee commitment to a strategy.
Find Inspiration: Climbing High with Patagonia
Patagonia is a strategic success story anchored to its mission of: “building the best product,
cause no unnecessary harm, use business to inspire and implement solutions to the
environmental crisis.” Patagonia is one of the first companies to file papers to become a
benefit corporation, which means that its policies will always “create a material positive
impact on society and the environment.”
Manager's Library: Rebooting Work: Transform How You Work in the Age
of Entrepreneurship by Maynard Webb
The book is a practical guide to navigating the new era of what many call the “entrepreneurial
workplace.” Described is the decline of age-old face-to-face workplace mentoring
relationships between senior managers and their juniors. Reasons include technology, shorter,
more temporary work contracts, flatter organizations resulting in fewer middle-level
managers. Although mentoring has gone by the wayside, the author’s message is to find and
access mentors on your own.
The “Reflect and React: questions ask: Does the notion of entrepreneurial workplace seem to
describe the career settings ahead for you? How about the mentoring strategy? If you don’t
have a mentor, and your employer isn’t helpful in finding you
Ethics Check: Life and Death at an Outsourcing Factory
The sight of netting outside the dormitories of Foxconn factories is sobering when you learn
that it was installed to prevent suicides of workers who lose hope and jump off the dormitory
roof. What responsibility do employers have to make sure workers not only have safe
working conditions, but work that has meaning with a sense of accomplishment and hope of a
better future? What responsibility do U.S companies such as Apple, Dell and HP have to
make sure Foxconn remedies conditions that lead workers to suicide? How about us as
consumers? Do we have a responsibility? Would you alter your consumption habits?
Schermerhorn Exploring Management 4th edition Instructor’s Manual
Copyright © 2014 John Wiley & Sons, Inc. 7-12
one, how can you get yourself one? Can mentoring work as well online as face-to-face?
Explore Yourself: Critical Thinking
Critical thinking is a “must-have” for success in strategic management. It enables you to
perceive problems, hone in on their more essential aspects, gather and interpret useful
information, and make good decisions in complex conditions. Unfortunately, critical thinking
can become blurred without the luxury of full information for analysis, common in today’s
work environment with its many uncertainties.
The assessment for this Chapter is entitled “Facts and inferences”. The assessment tool is
intended to help students assess their ability to distinguish facts from inferences, an important
trait for a manager participating in the planning process.
For extended learning, students may discuss how perception of facts and inferences influence
strategic management. For example, what role does personal perception of facts influence the
establishment of mission or a SWOT analysis?
Hot Topic: Pro and Con Debate: How about a “double Irish” with a
“Dutch sandwich”?
No, it’s not a drink and a sandwich we’re talking about. It’s a global business strategy used to
reduce corporate income taxes in America. Ireland offers corporations that put offices and
plants there a 12.5% corporate tax rate. That compares with the standards 40% rate due at
home. If you set up two Irish companies and arrange to funnel foreign earnings through them
– the double Irish move – you pay the lesser tax bill. When it comes to managing a global
business, it requires crucial knowledge of tax laws, which vary widely from country to
country. Ask students if they would be able to execute a double Irish with a Dutch sandwich.
Career Situation: What Would You Do?
A neighborhood business association has this set of members: coffee shop, bookstore,
drugstore, dress shop, hardware store, and bicycle shop. The owners of these businesses are
interested in how they might “cooperate” for better success. As a business consultant to the
association, what would you propose as possible strategic alliances that would join sets of
these businesses together for mutual gain?
For some years now, you’ve owned a small specialty bookshop in a college town. You sell
some textbooks but mainly cater to a broader customer base. The store always stocks the
latest fiction, nonfiction, and children’s books. Recent numbers show a steep decline in sales,
including books that would normally be considered best sellers. You suspect this is because
of the growing popularity of e-books and e-readers such as the Amazon Kindle and Barnes &
Noble Nook. Some of your friends say it’s time to close up because your market is dying. Is it
hopeless or is there a business strategy that might save you?
Skill Building Portfolio
Terms to Define:
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B2B business strategy
B2C business strategy
BCG Matrix
Business strategy
Chapter 11 bankruptcy
Competitive advantage
Concentration
Co-opetition
Core competencies
Corporate strategy
Cost leadership strategy
Crowdsourcing
Differentiation strategy
Diversification
Divestiture
Downsizing
E-business strategy
Focused cost leadership strategy
Focused differentiation strategy
Functional strategy
Globalization strategy
Growth strategy
Liquidation
Mission
Operating objectives
Restructuring
Retrenchment strategy
Social media strategy
Strategic alliance
Strategic control
Strategic intent
Strategic leadership
Strategic management
Strategy
Strategy formulation
Strategy implementation
Sustainable competitive advantage
SWOT analysis
Transnational firm
Vertical integration
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TestPrep 7: Multiple-Choice Questions
1. Which is the best question to ask when starting the strategic management process?
(a)“What is our mission?”
(b)“How well are we currently doing?”
(c)“How can we get where we want to be?”
(d)“Why aren’t we doing better?”
2. The ability of a firm to consistently outperform its rivals is called ___________
(a)vertical integration
(b)competitive advantage
(c)strategic intent
(d)core competency
3. General Electric is a complex conglomerate that owns many firms operating in very
different industries. The strategies pursued for each of these units within GE would best
be called __________level strategies.
(a)corporate
(b)business
(c)functional
(d)transnational
4. An organization that is downsizing by cutting staff to reduce costs can be described as
pursuing a _________strategy.
(a)liquidation
(b)divestiture
(c)retrenchment
(d)stability
5. When you buy music downloads online, the firm selling them to you is engaging in which
type of e-business strategy?
(a)B2C
(b)B2B
(c)infomediary
(d)crowdsourcing
6. The alliances that link together firms in supply chain management relationships are examples
of how businesses try to use ____________strategies.
(a)B2C
(b)growth
(c)cooperation
(d)concentration
7. Among the global strategies that international businesses might pursue, the
_________strategy most directly tries to tailor products to fit local needs and cultures in
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different countries.
(a)concentration
(b)globalization
(c)transnational
(d)multidomestic
8. If Google’s top management were to announce that the firm was going to buy Federal
Express, this would indicate a growth strategy of .____________
(a)diversification
(b)concentration
(c)horizontal integration
(d)vertical integration
9. ___________are special strengths that an organization has or does exceptionally well and
that help it outperform competitors.
(a)Core competencies
(b)Strategies
(c)Alliances
(d)Operating objectives
10. A ________in the BCG Matrix would have a high market share in a low-growth market.
(a)dog
(b)cash cow
(c)question mark
(d)star
11. In Porter’s five forces model, which of the following conditions is most favorable from the
standpoint of industry attractiveness?
(a)many competitive rivals
(b)many substitute products
(c)low bargaining power of suppliers
(d)few barriers to entry
12. The two questions asked by Porter to identify the correct competitive strategy for a business
or product line are: 1—What is the market scope?
2—What is the __________ ?
(a)market share
(b)source of competitive advantage
(c)core competency
(d)industry attractiveness
13. When Coke and Pepsi spend millions on ads trying to convince customers that their products
are unique, they are pursuing a ______________strategy.
(a)transnational
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(b)concentration
(c)diversification
(d)differentiation
14. A firm that wants to compete with rivals by selling a very-low priced product in a broad
market would need to successfully implement a ________________ strategy.
(a) retrenchment
(b) differentiation
(c) cost leadership
(d) diversification
15. In addition to focusing on strategy implementation and strategic control, the responsibility
for strategic leadership of an organization involves success with _________________.
(a)motivating a disposable workforce
(b)the process of continuous change
(c)Chapter 11 bankruptcy
(d)growth by liquidation
Short-Response Questions:
16. What is the difference between corporate strategy and functional strategy?
A corporate strategy sets long-term direction for an enterprise as a whole. Functional
strategies set directions so that business functions such as marketing and manufacturing
support the overall corporate strategy. A corporate strategy sets long-term direction for an
enterprise as a whole. Functional strategies set directions so that business functions such
as marketing and manufacturing support the overall corporate strategy.
17. Why is a cost leadership strategy so important when one wants to sell products at lower prices
than competitors?
If you want to sell at lower prices than competitors and still make a profit, you have to
have lower operating costs (profit 3 revenues 5 costs). Also, you have to be able to operate
at lower costs in ways that are hard for your competitors to copy. This is the point of a cost
leadership strategy—always seeking ways to lower costs and operate with greater
efficiency than anyone else.
18. What strategy should be pursued for a “question mark” in the BCG Matrix, and why?
A question mark in the BCG matrix has a low market share in a high growth industry.
This means that there is a lot of upside potential, but for now it is uncertain whether or not
you will be able to capitalize on it. Thus, hard thinking is required. If you are confident,
the recommended strategy is growth; if you aren’t, it would be retrenchment, to allow
resources to be deployed into more promising opportunities.
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19. What is strategic leadership?
Strategic leadership is the ability to enthuse people to participate in continuous change,
performance enhancement, and the implementation of organizational strategies. The
special qualities of the successful strategic leader include the ability to make tradeoffs,
create a sense of urgency, communicate the strategy, and engage others in continuous
learning about the strategy and its performance responsibilities.
Integration and Application Questions:
Integration and Application Question
20. Kim Harris owns and operates a small retail store, selling the outdoor clothing of an
American manufacturer to a predominantly college-student market. Lately, a large
department store outside of town has started selling similar but lower-priced clothing
manufactured in China, Thailand, and Bangladesh. Kim is starting to lose business to this
store. She has asked your instructor to have a student team analyze the situation and propose
some strategic alternatives to best deal with this threat. You are on the team.
Questions: Why would a SWOT analysis be helpful in addressing Kim’s strategic management
problem? How could Porter’s competitive strategies model be helpful as well?
A SWOT analysis is useful during strategic planning. It involves the analysis of
organizational strengths and weaknesses, and of environmental opportunities and threats.
Such a SWOT analysis in this case would help frame Kim’s thinking about the current
and future positioning of her store, particularly in respect to possible core competencies
and competitive opportunities and threats. Then she can use Porter’s competitive strategy
model for further strategic refinements. This involves the possible use of three alternative
strategies: differentiation, cost leadership, and focus. In this situation, the larger
department store seems better positioned to follow the cost leadership strategy. This means
that Kim may want to consider the other two alternatives. A differentiation strategy would
involve trying to distinguish Kim’s products from those of the larger store. This might
involve a “made in America” theme or an emphasis on leather or canvas or some other
type of clothing material. A focus strategy might specifically target college students and try
to respond to their tastes and needs rather than those of the larger community population.
This might involve special orders and other types of individualized service for the college
student market.
Self-Assessment 7: Handling Facts and Inferences
Instructions
1. Read the following report.
A well-liked college instructor had just completed making up the final examination and
had turned off the lights in the office. Just then a tall, broad figure with dark glasses
appeared and demanded the examination. The professor opened the drawer.
Everything in the drawer was picked up, and the individual ran down the corridor. The
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president was notified immediately.
2. Indicate whether you think the following observations are true (T), false (F), or doubtful in
that it may be either true or false (?). Judge each observation in order. Do not reread the
observations after you have indicated your judgment, and do not change any of your answers.
1. The thief was tall, broad, and wore dark glasses.
2. The professor turned off the lights.
3. A tall figure demanded the examination.
4. The examination was picked up by someone.
5. The examination was picked up by the professor.
6. A tall, broad figure appeared after the professor turned off the lights in the office.
7. The man who opened the drawer was the professor.
8. The professor ran down the corridor.
9. The drawer was never actually opened.
10. Three persons are referred to in this report.
Scoring
The correct answers in reverse order (starting with 10) are: ?, F, ?, ?, T, ?, ?, T, T, ?.
Interpretation
To begin, ask yourself if there was a difference between your answers and the correct ones. If
so, why? Why do you think people, individually or in groups, may answer these questions
incorrectly? Good planning depends on good decision making by the people doing the
planning. Being able to distinguish “facts” and understand one’s “inferences” are important
steps toward improving the planning process. Involving others to help do the same can
frequently assist in this process.
Class Exercise 7: Strategic Scenarios
Preparation
In today’s turbulent economic climate, it is no longer safe to assume that an organization that
was highly successful yesterday will continue to be so tomorrow—or that it will even be in
existence. Changing times exact the best from strategic planners. Think about the situations
currently facing the following well-known organizations. Think, too, about the futures they may
face.
McDonald’s Ford Sony
Apple Computer Nordstrom United Airlines
Yahoo! National Public Radio AT&T
Ann Taylor The New York Times Federal Express
Instructions
Form into groups as assigned by your instructor. Choose one or more organizations from the
prior list (or as assigned) and answer the following questions for the organization:
1. What in the future might seriously threaten the success, perhaps the very existence, of this
organization? As a group, develop at least three such future scenarios.
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2. Estimate the probability (0 to 100%) of each future scenario occurring.
3. Develop a strategy for each scenario that will enable the organization to successfully deal
with it.
4. Thoroughly discuss these questions within the group and arrive at your best possible
consensus answers. Be prepared to share and defend your answers in general class discussion.
Team Project 7: Contrasting Strategies
Starbucks is the dominant name among coffee kiosks—how does Dunkin Donuts compete?
Google has become the world’s search engine of choice—can Bing ever catch up? Does it make
a difference to you whether you shop for books at Amazon or Barnes & Noble, or buy gasoline
from BP, Shell, or the local convenience store?
Question
How do organizations in the same industry fare when they pursue somewhat or very different
strategies?
Instructions
1. Look up recent news reports and analyst summaries for each of the following organizations:
Coach and Kate Spade . . . Southwest Airlines and Delta Airlines . . . New York Times and
USA Today . . . UnderArmour and Lululemon . . . National Public Radio and Sirius Satellite
Radio. . . Coca-Cola and PepsiCo
2. Use this information to write a short description of the strategies that each seems to be
following in the quest for performance success.
3. Compare the strategies for each organizational pair, with the goal of identifying whether or not
one organization has a strategic advantage in the industry.
4. Try to identify other pairs of organizations and do similar strategic comparisons for them.
5. Prepare a summary report highlighting (a) the strategy comparisons and (b) those
organizations whose strategies seem best positioned for competitive advantage.
Cases for Critical Thinking
Dunkin Donuts – Growth Feeds a Sweet Tooth
Sidebar: Jamba Juice Blends for Fruitful Growth
Long before Starbucks was even a glimmer in anyone’s entrepreneurial mind, Dunkin’ Donuts
was a well-known chain of coffee shops in the Northeast. Today, Dunkin’ Donuts is a global
player quickly expanding its food and coffee menus to ride the wave of fresh trends appealing to
a generation of more health-conscious customers. It’s a highly competitive industry and change
is constantly on its menu. With Starbucks rethinking its positioning strategy and McDonald’s
offering a great tasting coffee at a reasonable price, Dunkin’ Donuts is hoping that careful
strategic planning will keep its customers “Runnin on Dunkin.”
Case discussion questions and suggested answers:
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1. DISCUSSION
What does a Porter’s Five Forces analysis reveal about the industry in which Dunkin’
Donuts and Starbucks compete? What are the strategic implications for Dunkin’ Donuts?
Porter's Five Forces model analyzes factors that influence a specific industry to help
managers understand its competitive factors. An analysis of the factors would seem to
indicate that the industry is very competitive and competitive advantages can be very
quickly copied. The Five Factors as they apply to Dunkin’ Donuts and Starbucks might
include:
• New entrants - Dunkin’ and Starbucks sell breakfast beverages and pastries in an
effort to expand its breakfast menu. Competition includes expansion by similar
regional companies like Caribou Coffee and McDonald’s whose offerings include
premium coffee.
• Customers - the bargaining power of buyers is very influential to the industry. The
current recession has resulted in the closing of hundreds of Starbucks locations,
while relatively few of the franchised Dunkin’ Donuts have closed.
• Substitute products - the large number of substitute beverages and breakfast
alternatives makes this a huge factor in the industry.
• Suppliers - occasionally the supply of coffee beans is limited, driving up the cost of
the beverage.
• Industry competition - Starbucks and other regional coffee shops; convenience
stores like 7-Eleven and Circle K; fast food restaurants like McDonald’s and
Burger King.
2. DISCUSSION:
Discuss the pros and cons of Jamba Juice’s expansion strategy and how it compares to that of
Dunkin’ Donuts. What similarities are there between the two companies in terms of their
growth strategies? Discuss.
Pros of Jamba’s expansion strategy:
• The company has expanded beyond just a maker of smoothies to a active/healthy
lifestyle brand.
• It has refocused on franchising, consumer packaged goods (CPG), and Jamba GO
stations at various venues, to facilitate further expansion.
• Expanded menu items: Its product variety includes whole fruit smoothies, squeezed
juices, hot oatmeal, breakfast wraps, bistro sandwiches, mini-wraps, California
Flatbreads, frozen yogurt, and various baked goods and snacks. The company has also
expanded its menu to include vegan and vegetarian options.
• Jamba’s presence in various venues: JambaGo Express is a smoothie concept created
to facilitate the company’s brand presence into venues where healthier, quick serve
options are part of the menu offering. This includes K-12 schools, universities, college
campuses, convenience stores and delis.
• Franchise business model (an asset light business model) was a clever way to raise
cash. It was far less capital intensive. It also improved the company’s balance sheet.
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Although the revenue from franchising is far lower, it represents pure profit. Jamba
has executed a remarkable transformation from many ailing company-owned stores to
a successful franchise business model.
• Jamba has licensed its Jamba brand name to sell consumer packaged goods (CPG)
online and through retail channels such as grocery, mass, club, and convenience
stores.
• Expansion of product offering with Talbott’s Teas
• Tennis pro Venus Williams is currently a company spokesperson (and franchisor) –
she advocates for active and healthy lifestyles.
Cons of Jamba’s expansion strategy:
• Jamba’s profitability is still volatile.
• In 2012, the company marked its first year of profitability after going public in 2006.
• Despite its comeback, there are still far more cash-rich formidable competitors.
• The consumer packaged goods industry is intensely competitive.
• Threats from cash-flushed competitors like McDonald’s, Wendy’s or YUM have
targeted the smoothie industry and can easily take sales away.
• As the company continues to sell more food items, it becomes more susceptible to
swings in commodity prices.
How Jamba’s expansion strategy compares to that of Dunkin’ Donuts:
• The use of other people’s money (franchisors) to expand and grow means less of a
capital investment, expanded menu items, retail presence.
3. PROBLEM SOLVING:
Gather information to build an up-to-date SWOT analysis for Dunkin’ Donuts. If you were the
CEO of the firm, what would you consider to be the strategic management implications of this
SWOT analysis, and why?
Strengths Weaknesses Opportunities Threats
Brand Recognition Conflict with franchise
owners
Low calorie menu items Competition from others
Customer Loyalty DD is nowhere near the
level of penetration in
developing countries as
compared to others
Healthier choices on
menu
Healthier lifestyles and
eating patterns (avoidance
of high calorie/sugary
foods)
Large variety of flavors of
donuts and baked items
Low barrier to entry for
competitors
Online marketing to
increase customer basis
Increased awareness of
healthy food choices
Known for its coffee Perception of nonexistent
healthy choices
Social media to increase
customer base
Childhood diseases on the
rise (diabetes and obesity)
Number of locations Expansion outside the
United States (emerging
markets)
Competition from local
pastry and coffee shops
Loyalty program Product expansion Competition from
McDonald’s and
Starbucks (coffee and
donuts)
Years of Coffee consumption on Price of coffee beans
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experience/longevity the rise in Asia, along
with income levels
Major sports team
association (Red Sox)
Recessionary spending on
“comfort foods” and less
expensive snacks
compared to other store-
bought items
Awareness of Fair Trade
policies for coffee bean
purchases.
Advertising and
marketing programs and
strategies
Growth through
franchising
Increased raw material
costs and coffee costs
Reputation for high
quality, superior grade of
coffee
Continued store growth
Largest seller of coffee by
the cup
The strategic management implications of this SWOT analysis Review current situation
would include developing and implementing new strategies and evaluate results.
4. FURTHER RESEARCH
Research the latest moves by Starbucks and other Dunkin’ Donuts’ competitors. What is
each doing that seems similar to and different from the approach of the other? Can you
say that Dunkin’ is on the right track? Is it carving out new market share? Or, is it going
to be more of a copycat player in the industry?
Latest news for:
Starbucks:
• Starbucks recently introduced several new sandwiches and salads on its menu to
increase sales in the U.S. in the slower afternoon and evening hours.
• With McDonald’s and Burger King offering specialty coffees, one way for Starbucks to
increase its revenue is by offering food items.
• Starbucks announced that it will include calorie information on menu boards at all
company-operated and licensed U.S. Starbucks.
• Opened first store in New Delhi, India and entered Vietnamese market.
• Expansion of company’s loyalty and rewards program
• Industry-first innovation that will enable customers to earn rewards for grocery
channel purchases that can be redeemed in Stabucks retail stores.
• Expansion of mobile payment platform
• Launch of new nonprofit corporation with a $1 million seed grant to introduce job
skills, leadership and apprenticeship programs to young people across the company’s
• Expansion of mobile payments platform, which is generating over three million U.S.
mobile payments per week.
• Schultz’s recognition of Starbucks 15-year business partnership with Mohammed
Alshaya, Executive Chairman, M.H. Alshaya Co., including comments about how
bringing specialty coffee to the Middle East serves as a model for the company’s future
expansion initiatives.
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Dunkin’ Donuts:
In summary, Dunkin’ Donuts is expanding its menu to include a few new “better-for-you”
breakfast items and a few new “all-day menu items.” Also new is a frozen version of hot
chocolate. In addition, the company is interested in expanding into non-traditional venues
such as schools and universities. Its DDSmart menu has healthy items for those interested in a
healthier lifestyle. The company recently shifted to eggs from cage-free hens in an effort to
eliminate gestation crates from its supply chain.
• The introduction of two new chicken sandwiches (barbeque chicken and bacon-ranch
chicken) on its menu is a step in the brand’s commitment to all-day menu items. is a
significant step in the brand’s commitment to all-day menu items.
• Dunkin’ Donuts recently unveiled the Hot Chocolate Coolatta®, the newest addition to
its lineup of Coolatta frozen beverages.
• Adds turkey sausage breakfast sandwich to its item to permanent menu
• Chicken salad and tuna salad wraps are added to Dunkin’ Donuts menu
• New angus steak and egg sandwich and wake-up wrap added to menu
• Dunkin’ Donuts is interested in expanding into non-traditional venues including
colleges and universities, casinos, military bases, supermarkets, airports and travel
centers.
• The company uses Social Media (Twitter Sweepstakes and Instagram) to introduce new
products and promotions. They also have an app that provides coupons to loyal
customers.
• DDSmart with better-for-you breakfast option menu is for healthy items such as
oatmeal.
• Dunkin' Donuts Announces Shift to Eggs from Cage-Free Hens and Commitment to
Eliminate Gestation Crates from its Supply Chain.
What is similar?
• Focus on new and all-day menu items
• Healthy menu choices (calorie counts on Starbucks menus)
• Commitment to social responsibility and sustainable business practices
What is different?
Starbucks is a more hip and trendy place to get a cup of coffee, while Dunkin’ Donuts fancies
itself as a welcome place for any ordinary-Joe or Josephine. Dunkin’ Donuts is a place to grab
a reasonably priced quick or to go reasonably price cup or coffee while Starbucks is a more
expensive product with a higher quality reputation. In other words, Dunkin’ is more the
layman’s coffee and the feel of a fast food restaurant, while Starbucks, with its comfortable
atmosphere and seating, appeals to a higher socioeconomic demographic.
Is Dunkin’ on the right track?
Is it carving out new market share?
Yes, from some of its recent news items noted above, it appears to be targeting, in addition to
its morning coffee and donut eaters, those interested in healthy food choices along and all-day
menu items.
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Will it be a copycat player?
It depends. Dunkin’ Donuts has carved out a different target customer than Starbucks -- one
more focused on convenience and price.
Suggested Team Exercise for Chapter 7
Break the class into pairs or small (no more than four students) teams.
Assign each team an industry (pick industries that students can relate to such as chocolate candy;
automobiles; clothing; shoes; fast food; beer; cell phones; computers, etc.)
Have each pair or team identify (and explain if needed):
The company or product using a cost leadership strategy (example Chery from China)
The company or product using a differentiation strategy (example Scion)
The company or product using a focused cost leadership strategy (example Focus)
The company or product using a focused differentiation strategy (example Porsche)
Other documents randomly have
different content
Second Day. The Heart of Jesus My Friend.
Oh, what folly, what delusion can be worse than to set one's heart
on anything save Thee [pg 239] alone, O God! How poor is he who
seeks not his whole good in Thy sweet friendship alone! Heart of my
Jesus, wounded for love of me, permit me to draw nigh to Thy open
side, and confess to Thee a thousand times over that I love Thee. O
Heart of Jesus, forgive my past foolishness! O beloved and adorable
Redeemer, who will give water to my head, and a fountain of tears
to my eyes, that I may weep day and night for the contempt shown
to Thy love, and the ingratitude with which Thy benefits are repaid!
O ye angels, who crowd the sanctuaries in which dwells the divine
Spouse of our souls, cease not to pour forth at the foot of His altars
the most profound homage. One of the usual duties shown by
people towards those whom they respect are visits. Jesus Christ is
our Friend, our Father. He is in our midst: we know it, and yet He is
the only One Whom we forget. Whoever thinks of visiting Jesus
Christ? We frequent the church and fulfil our other religious duties,
but do we always go through motives of love or gratitude, and with
the expected intention of rendering homage to Our Lord? O Jesus,
could a more cruel wound be inflicted on this loving Heart? O Sacred
Heart of my Jesus, forgive me, and vouchsafe me the blessing of
remaining forever Thy child.
Prayer.
Prostrate before Thee, O Sacred Heart of Jesus, I humbly pay Thee
all my homage, and my profound adoration. I adore Thee, O Sacred
Heart, destined from all eternity to be God's masterpiece and the
prodigy of His power, wisdom and goodness. Amen.
[pg 240]
Third Day. The Heart of My Jesus the Heart of My
Father.
Heart of Jesus, Thou art my Father! All I have is from Thee; at every
step I meet with proofs of Thy infinite love. Even when I strayed
away from Thee, Thou didst entreat me to return, assuring me of
pardon and love. If I shed tears of sorrow, Thy love wiped them
away, and Thy sweet voice gave courage to my sinking soul. O my
sweet Jesus, be forever a Father to me! What an amount of
gratitude do I not owe to my Lord, when after so much love and
care, He reappears among us in the Sacrament of the Altar? In thus
dwelling among us, He willed to unite Himself with us, in a way as
intimate as it is incomprehensible; shutting Himself up under the
appearance of bread, He enters into our hearts and makes His own
flesh our nourishment. What a source of happiness for me, O my
sweet Jesus! My eyes do not see Thy divine face, but my heart feels
Thy comforting presence. When I receive Thee, O Father, into my
breast, I feel my soul gladdened with the wine of heaven, “which
maketh virgins.” And since love causes lovers to resemble each
other, if we love let us form our life on the model of Jesus. Let us
therefore, belong forever to the Beloved of our souls. Let us give
Him our whole heart, our love, our affections, inclinations, and
desires.
Prayer.
Allow me, O my Saviour, to offer Thee my heart, and grant that I
seek only to please Thee in all things. From this moment I
consecrate [pg 241] my heart to Thee; take possession of it, destroy
its indifference, purify its affections, and give a new life to its
inclinations. O sweet Jesus, take possession of me and consume me
in the flames of Thy love. Amen.
Fourth Day. In Thy Heart I Shall Find Peace.
Thee, Thee alone, O Heart of my God, will I love! Heart most pure,
Heart most holy, never tiring of my insults, ever forgiving and
forgetting, and, if I do but love Thee sincerely, admitting me as a
chosen friend to Thy sweet company. “Come unto Me, all you that
labor, and are heavily burdened, and I will give you rest.” Seek not
elsewhere for relief in sorrow: come to the Heart of One Who loves
you. Never will you meet with a more generous giver, never will you
meet a kinder friend, never will you meet one who will bear with you
more patiently in your trials and temptations. Be comforted, then,
my heart, in having this God of love, Who will not abandon you;
Who has no sweeter choice than to hearken to your prayers. Well,
dear Lord, behold how my poor soul is chained down, what billows
of sorrow buffet it and all but wreck it. Come then, O Heart of my
Jesus, come to me or I perish. In Thee alone do I find relief. Be
Thou a thousand times blessed, O sweetest Heart, for all Thy mercy!
O admirable Heart, forgive my guilty wretchedness. Henceforth Thee
alone will I seek, Thee alone will I love. I shall serve Thee and Thee
only till my dying gasp, in hope of praising and loving Thee forever
more in heaven.
[pg 242]
Prayer.
O Sacred Heart of Jesus, be Thou praised and blessed forever as the
source of supernatural life, the nourishment of the soul, and the
sustenance of the spirit! From Thy fulness all good is poured out
upon us. Fill my heart, I beseech Thee, with the sentiments that
inspired Thy adorable Heart. Amen.
Fifth Day. The Sacred Heart of Jesus Teaching
Charity.
Thy Heart, O my Jesus, is a mystery of charity; mine is a mystery of
malice. I am ashamed and confounded when I consider attentively
Thy Heart, O my Jesus! Thou, the Creator and Master of all things—
Thou art meek and lowly of heart, and I, a poor outcast, am full of
pride and presumption. How often have I not outraged Thy love and
despised Thy law, and still Thou art silent and forgivest me! Thou art
ever ready to welcome back Thy lost sheep, no matter how far they
have strayed, nor how deeply they have wounded and insulted Thy
loving Heart! And can it be that after that I would dare violate the
charity I owe my neighbor? That I would, for a slight offence, allow
proud and revengeful feelings to take possession of my heart? Oh,
what a contrast to Thy gentleness and patience! I cannot forget the
least insult received, whilst Thou, O my God, at the first sincere
prayer for pardon wilt forget all the injuries that I have offered Thee.
Could I then fail to choose Thy Heart as a model for my own? But
how can this cold heart of mine ever resemble that kindest Heart [pg
243] of Thine? Thou alone possessest the remedy. Behold me then,
O sweet Jesus, and mercifully regard a misery so profound. “My
heart is ready, O God, my heart is ready.” I will extol Thee, O God
my King, and I will bless Thy name forever and ever.
Prayer.
Be Thou praised and blessed forever, O Sacred Heart of Jesus, Who
in the fervor of Thy charity, hast devised a miraculous means of
filling hearts with the holy flame of Thy divine love. Impress my
heart so deeply with this divine seal, that nothing may ever enter
into it, or proceed from it, that is not in conformity with Thy Sacred
Heart. Amen.
Sixth Day. The Heart of Jesus My Comforter.
To whom can I more confidently tell my many needs and frailties
than to Him Who knows them more clearly than I do myself? Thy
voice, O Jesus, alone has the power to console and comfort the
heart that loves Thee. They are blind indeed who go in search of
consolation and happiness from creatures. Why did I not fly to Thee
when I felt the first onset of this world? I turned hither and thither,
seeking on all sides for aid and comfort, but I turned not my glance
to Thee, Who alone canst rescue the soul from sin. Heart of Jesus,
oh, what manner of love is Thine! Forgive my past foolishness, and
now that I return again to Thee, give me grace never to leave Thee.
Let my soul, like Magdalen, rest at Thy sacred feet. Stay with me, O
Jesus, stay with me forever. Teach me what I must [pg 244] needs
do to live with Thee, and I shall trample under foot all the joy and
gain this world can offer me. I shall embrace with gladness for Thy
sake all afflictions and all sorrows. But, O my God, shelter beneath
the wings of Thy love every instant of my life, and encourage and
strengthen my poor weak heart.
Prayer.
O Sacred Heart of Jesus, I adore the admirable impulse which made
Thee all Thy life a victim of love, and led Thee to consummate it by
a death of perfect love. Grant that by Thy holy grace, my heart may
become a living sacrifice, desiring only to be offered up and to offer
up all things for Thy greater glory. Amen.
Seventh Day. The Heart of Jesus My Helper in Trials.
How few are there who love God alone for His own sake, and bless
Him alike in sorrow and in joy! Why, O my God, do I fear to travel on
the royal road of the cross—the only road that Thou hast travelled,
and the shortest and surest way to heaven? Do I forget that Thy
cross sanctified and redeemed the world, and formed the bliss of
Thy elect in heaven? Why, then, do I shrink from carrying it with
courage? Let us remember that our union with Jesus crucified will be
the measure of our union with Him in glory. That in suffering for
Jesus we show our true love for Him. Oh, a thousand times blessed
are all who clasp the cross to their hearts and follow Jesus. Be not
sad, my soul, when thou art in pain: the Heart of Jesus was [pg 245]
crushed far more than thine. That sweet Heart of my Jesus was
overwhelmed with sadness at the sight of our sins, pierced with a
thousand deadly shafts, humiliated, abandoned by His Father: finally
cruelly wounded on the cross, shedding His blood, even to the last
drop. Compare such sorrow with thine, and yet thou darest
complain! Jesus, forgive me, forgive such a vile wretch, and crown
Thy mercy and love.
Prayer.
O almighty and eternal God, look upon the Heart of Thy well-beloved
Son, and the praise and satisfaction He offers Thee in the name of
poor sinners. Have mercy upon them, since they ask it through this
same Jesus Christ, Thy Son, Who liveth and reigneth with Thee in
the unity of the Holy Ghost, one God forever and ever. Amen.
Eighth Day. In the Heart of Jesus I Shall Find Rest.
O Heart of my Jesus, I will cast myself with sweetest confidence into
Thy bosom, and I will rest on Him Who is the everlasting rest of the
elect in heaven. I will draw nigh unto Him Who can sweeten all the
bitterness of my weary pilgrimage here. I will rest, as John the
beloved disciple did, on the Heart of Jesus, and tell Him a hundred
times over that peace and comfort cannot be found elsewhere but in
that sweet Heart. The Heart of Jesus is the city of refuge, in which
we are safe from the pursuit of the enemy. It is the city of refuge,
which defends us from the wrath of an angry Judge. Give thy heart
to Him, for He has opened His [pg 246] Heart to thee. Give not thy
heart to the world, but to Christ thy Lord. O Heart of Jesus! Thou
givest to the heart that loves Thee perfect peace, great joy of spirit,
and a foretaste of heaven's delight. My God, make me love Thee,
not coldly but with a passionate love. All for Thee, O my God, all for
Thee alone—let this be my watchword, and then only will I find true
rest and peace. May heaven and earth praise and bless Thee forever.
Prayer.
O Sacred Heart of Jesus, I unite my heart to the spirits of the
blessed, that with them it may sing to Thy glory before the throne of
God. The Lamb that was slain is worthy to receive power, and
divinity, and wisdom, and strength, and glory, and benediction. By
Thy virtue guard my heart, and preserve it from the stains of its own
sinful desires. Amen.
Ninth Day. The Heart of Jesus an Ocean of Love.
O Heart of Jesus! Thou hast, in the greatness of Thy love, come
down to put on the garb of humanity, and to take into Thy breast
man's heart—to make him a source of Thy delights: to soothe the
pain that sin inflicts on his wretched soul. O God of love, what then
shall I do for Thee Who hast loved me with such an excess of love?
What return can I make for such great graces? Ah, yes! I will
address Thee with the sweet name of “Father,” a God so generous
and so great, and how easy will it be for me to love Thee, O Jesus,
my best Friend. In thus dwelling among us He willed to unite Himself
[pg 247] with us in a way as intimate as it is incomprehensible. And
to bring about this, He instituted the Sacrament of the Altar, and
shutting Himself up under the appearance of bread, He enters into
our hearts and makes His own flesh our nourishment. This gift of the
Eucharist, O my God, is of all Thy wonders the very crown. In this
banquet of love, Thou hearest all our sighs and complaints, and
Thou forgivest all our sad errors and foolishness. O happy Christians,
what a source of happiness we possess! Let us then give Him all the
love and gratitude He has a right to expect from us. Let our love be
as unlimited as the love Our God has shown unto us. O Jesus, how
sweet it would be to live for Thee and Thee only!
Prayer.
O my good Jesus, within Thy Heart, with sweetness overflowing, I
place myself; hide me deep therein that I may never stray away. In
life my joy, in death my guide, be Thou unto me my bliss in heaven.
This I ask for every one, and I ask it by Thy tears, Thy sweat, Thy
sacred blood. Amen.
Tenth Day. The Ingratitude of Men to the Heart of
Jesus.
Wherever we cast our eyes we meet with sad proofs of the
ingratitude of men to the Heart of Jesus. A large portion of the
Christian world is plunged in heresy, denying Christ's presence in the
mystery of the Altar, and not satisfied with refusing to recognize this
great benefit they have lifted their sacrilegious hand against the
sacred Host. But, O [pg 248] divine Jesus, behold a still more
grievous source of sorrow to Thy Heart! It is not from Jews or
heretics that Thou receivest these insults, but from Thine own
chosen people, the people who profess to believe in Thy real
presence. Jesus is in our midst, we know it, and yet He is the only
One Whom we forget, the only One Whom we treat with careless
indifference. It is thus that Christians respond to the love of Our
Lord; it is thus they repay all His benefits. O sweet Jesus, pardon my
base ingratitude! Angels of heaven, you who know so much better
than I the full extent of the love of Jesus' Heart towards me, praise
Him for me, and bless Him. O my God, grant that I may live poor,
unknown, and hidden in the Sacred Heart of Jesus, my divine
Master, forgotten and despised by creatures, so that Thou mayest
establish Thy reign of love upon my nothingness. I hope that Thou
wilt mercifully hear my request, and grant it.
Prayer.
O Sacred Heart of Jesus, my Lord! O noblest, greatest, and most
generous of all hearts! I adore the divine impulses which led Thee,
from the moment of Thy conception, to love me who was nothing,
who would offend Thee in so many ways, and so often misuse Thy
graces. O holy Friend of hearts, change my heart, and make it
choose Thee for its only Friend. Amen.
Eleventh Day. The Gratitude Due to the Heart of
Jesus.
If it were in my power, I would return Thee unceasing acts of
thanksgiving, and they would [pg 249] still be too little to praise
Thee for Thy boundless love. I thank Thee and bless Thee for having
poured out Thy most precious blood to wash away my sins. Thou
didst reserve nothing for Thyself, Thou didst become dry and barren
as a grape trodden in the wine-press. O ardent love, that is never
extinguished! would that I burned with this fire Thou hast sent on
the earth, and which Thou dost so fervently desire to see kindled in
souls! O most sweet Jesus, open to me, I humbly beseech Thee, the
door of Thy Heart, the door of love and mercy. There only will my
troubled soul find sure refuge, my crimes pity and forgiveness. To
Thee alone, O Heart of Jesus, I have recourse; assist Thou me. Thou
hast sought for me so painfully and so long, O my God, when I
strayed from Thy loving care. Behold me here now; I give myself to
Thee. With the help of Thy grace I will be faithful to Thee, and will
keep my soul in spotless purity and deepest humility. O Heart of my
God, prevent me from ever abandoning Thee again! May my heart
be always open and ready to admit Jesus, my well beloved. Let me
cling to Thy feet, like Magdalen, and give Thee love for love.
Prayer.
O Sacred Heart of Jesus, my Saviour, I adore Thee, shedding tears
over my sins. Would that I had a fountain of tears in my heart, that I
might weep as I ought for the sorrows I have caused Thee! Give me
grace to bring forth worthy fruits of penance. I adore Thee, O King
of hearts, Who art the delight of heaven and earth! Amen.
[pg 250]
Twelfth Day. In the Heart of Jesus is Found the Way,
the Truth, and the Life.
O my Jesus, I have never found truth save in Thee, and aside from
Thy paths I have never met but vanity and wrong. If Thou dost not
guide me in all things, I shall stray about forever, and will quickly
perish through fatigue and want. Speak, then, O Lord, speak to Thy
servant, and grant him to comprehend Thy wonderful love. Heart of
my God, give me to see that Thou art the only way in which I must
walk, if I wish to walk aright. What would ever become of me if
Thou wert not my life, principally in the Adorable Sacrament of the
Altar, where Thou dwellest actually, corporally, and perpetually,
waiting to receive my homage and ever ready to give me all graces
and blessings. Oh, how boundless is my need of Thee, my God;
draw me unto Thee and dispel the darkness which surrounds me.
Deign to accept, O Heart divine, this poor desire. My God, Thou art
my Father; have pity on me according to the greatness of Thy
mercy. I abandon myself to Thee: do not reject me; make me love
Thee and nevermore separate Thyself from me.
Prayer.
O sacred Heart of Jesus, Thou art the heavenly light! Thou dispellest
the darkness of the soul, and fillest it with sweetness. Thou art the
Heart of hearts, and worthy of the greatest love. Thou art the source
of that heavenly fire that enlightens and burns. Inflame my heart
with Thy divine ardor, that it may burn with love of Thee to all
eternity. Amen.
[pg 251]
Thirteenth Day. To the Heart of Jesus Alone I Turn.
We are made for God alone, nor can we find peace elsewhere save
in God alone. But who can kindle in us Thy love, if not Thou Thyself,
O Lord? Oh, then, sweet Heart of Jesus, I will not cease to knock at
the portal of Thy Heart, with tears and true contrition! Let others
seek the perishable goods of this world. For my part I ask but Thee
alone. Forgive my past unfaithfulness, and unite me so closely to
Thee that I may never be able to forsake Thee. Yes, my Saviour, I
will leave creatures and all earthly pleasures to run after Thee in the
Sacrament of Thy love. But I am ashamed to appear before Thee, O
my Jesus, I, who am so naked and so devoid of all virtues. What
then am I to do? Am I to appear no more before Thee? Ah, no! this
would not please Thee. Thou dwellest in the Sacrament, not only to
reward Thy lovers, but also to provide for the poor out of Thy riches.
I adore Thee, then, King of my heart! O Shepherd, loving Thy sheep
beyond all bounds, to this throne of love I now approach, and
having nothing else to give I offer Thee my poor heart. Mercy, O
Heart of God, I implore Thee a thousand, thousand times, and
pardon for all my sins; grant that this may be the day of my entire
conversion, so that I may nevermore cease to love Thee.
Prayer.
Heart of my Jesus, Thou knowest what is wanting in me: Thou
knowest that without Thee I can do nothing. Thou knowest my
weakness: have [pg 252] pity on me, give me humility, purity of
heart, love, and conformity to Thy holy will, strength against my bad
habits, remission of my sins, and grace nevermore to commit them.
Amen.
Fourteenth Day. The Heart of Jesus Asks for Our
Hearts.
“My child, give Me thy heart.” Oh, let me print on my memory such a
phrase of love! “My child!” Oh, how sweet it sounds when uttered by
the lips of a God! He wishes to dwell in our hearts, not for a certain
time, but forever; not as a guest only, but as its Master and its Lord.
Jesus says the heart He asks of me is mine: “Give Me thy heart,”
instead of claiming it as His right, as a matter of strictest obligation,
since all that I am and have comes from Him. Oh, why should it be
so difficult for me to yield up my heart to that sweet Lord Who so
endearingly says, “My child, give Me thy heart”? The name of friend
being insufficient to tell all Thy love, O dear Jesus, Thou dost employ
the loving name of child to sweetly compel me to grant Thy fond
request. Why is it, my Jesus, that Thou wishest my love? Why dost
Thou, by every means, try to gain, by permission, that love which is
Thine by every right and title? Oh, how many years Thou hast
followed me, and I ever fled away from Thee! How hardened my
heart was! It is true I have often returned to Thee for a little while,
and Thou didst welcome me, and gave me Thy very self as my food.
But too soon I fled away from Thee again. O my dearest Jesus, what
favors and benefits I have abused! Pardon me, sweet Jesus: behold
me at last here at Thy feet, never to leave Thee more. Take my
heart, [pg 253] sweet Lord, and clasp it tightly to Thy Sacred Heart
even to the hour of my death; never let me stray from Thee again.
Prayer.
O Sacred Heart of Jesus, with my whole soul I adore Thy impulses of
goodness and mercy towards sinners, the effects of which I have
most singularly experienced! Thy loving kindness is so desirous of
mercy, that it threatens to show no mercy to him who is not
merciful. And what mercy can I exercise towards my neighbor? What
can be compared to those mercies I have received, and every day
receive from Thee? O Heart of Jesus, loving fountain of mercy, teach
me to know and worthily imitate Thy mercy. Amen.
Fifteenth Day. The Heart of Jesus at the Hour of
Death.
The life of man passes away as a shadow. Time passes by as a swift
flowing river, bearing on its bosom, onward to the grave, old and
young, rich and poor, without any distinction. Oh, how happy is he
who has laid up treasures in heaven, who has gathered for himself a
hoard of merit before God. Happy, a thousand times happy, is he
who in that dread hour can turn to God with all confidence, and feel
God present in his heart. O my sweet Jesus, I will cling to the hope
that Thou wilt forget all my past iniquities, and remember only Thy
love. O merciful Jesus, who would not hope from Thee a mercy
without end? It is true Thou art a God of justice and purity, and
Thou seest in me sins beyond [pg 254] compare. But yet can it be
that the same God, Who every instant of my life yearns to be near
me, Who begs so pleadingly for my heart: can it be that He will
condemn me to hell? Oh, no, tender Heart of my Jesus! it will never
be so if I am truly sorry. My sweet Jesus will never abandon me, if
with a truly repentant heart, I have recourse to Him. Why should I
fear death when I look upon my God agonizing in the throes of
death? His death was to help me in my dying hour, so that seeing
the pain that I have inflicted I might bear mine without complaint. O
sweet Heart of Jesus, I offer Thee my death. I am willing to suffer
all the pains Thou wishest to send me. Let me suffer as much as
Thou pleasest, only let me die clasped close to Thy loving Heart.
Prayer.
O Sacred Heart of Jesus, I adore the admirable impulses which made
Thee all Thy life a victim of love, and led Thee to consummate it by
a death of perfect love. Grant that, by Thy holy grace, my heart may
become a living sacrifice, desiring only to be offered up and to offer
up all things for Thy greater glory. Amen.
Sixteenth Day. The Heart of Jesus for all Eternity.
Eternity is Thine, O my God, and Thou givest it to Thy elect, that
they may love Thee without any doubt or fear. Life is short: the last
hour may toll for me when I least expect it. O thou city of God,
when shall I behold thy beauty? Oh, the grace and blessing of dying
at peace with Thee, great [pg 255] God; of closing our eyes in a
holy death, to open them amid the splendors of eternal joy!
Meanwhile Thou givest me a pledge of this bliss in the admirable
Sacrament of the Altar. Where can love like Thine be found? Thou
givest me Thy body and blood, Thy soul and divinity, as a pledge of
eternal happiness. If then, Thou art wholly mine, can I be otherwise
than wholly Thine? A thousand thanks to Thee, O my sweet Jesus,
Who art so loving to me. Thou didst call me to Thy service, but I
have responded weakly. I often disappointed and displeased Thee,
yet, O Heart of my God, Thou art all mercy, and Thou wilt not turn
away Thy face from Thy poor child, who casts herself down before
Thee in contrition and shame. I will clasp Thy feet and remain there
until Thou wilt once more say “thou art forgiven: go in peace.” Thou
art just, O Lord; nevertheless be moved to pity me. I promise that I
will always serve and love Thee, and avoid anything that could in
any way separate me from Thee.
Prayer.
O Sacred Heart of Jesus, I adore Thy death of complete charity that
placed Thee in the grave. Let me enter into the wound of Thy Heart,
made by the lance, and may I die there for love of Thee. O heart of
Mary, Mother of the Heart of Jesus, I have recourse to thee, that
thou mayest speak to me in its stead. The Heart of Jesus and thine
are but one, and what thou dost for me He will approve.
[pg 256]
Seventeenth Day. The Heart of Jesus Sorrowful unto
Death.
No one can be a true follower of Thee, O sweet Jesus, who travels
by any road save that of Thy cross. For what trouble, what trial or
affliction can we meet with, which has not been suffered by Thee?
What were the agonies and pains Thy Heart bore for me! I am poor,
but am I poorer than Thou, Who hadst not whereon to lay Thy
head? I may be reviled and persecuted, but what are my
persecutions in comparison to Thine, O my Jesus? Thou wast
abandoned in Thy hour of agony even by Thy apostles, and betrayed
into the hands of Thy enemies by one whom Thou hadst made Thy
friend and companion. Thy whole life, O my Jesus, was one
unbroken series of crosses, borne sweetly and patiently through love
of me. Take courage, then, my soul, from the example of our dear
Lord, and bear with noble strength all the trials and afflictions that
may be sent to thee. I will keep my eyes fixed on Thee, cursed and
buffeted, insulted and spat upon, scourged and crowned with
thorns, a heavy cross laid upon Thy poor, mangled shoulders, and
Thy dreadful crucifixion—all for love of me. Surely then, my God, the
desire will grow in my heart to be ready and willing to make some
return to Thee. Yet without Thy help, dear Jesus, I am utterly
helpless to bear the little trials Thou so lovingly dost send me. Thou
hast said clearly, “If any man will come after Me, let him deny
himself, and take up his cross and follow Me.” And again,
“Whosoever doth not carry his cross and come after Me, cannot be
My disciple.” I understand then, dear Jesus, [pg 257] that if I wish to
claim the name of follower of Thee, I must imitate Thee in carrying
the cross. I throw myself into Thy loving arms, my sweet Jesus; do
with me as Thou choosest, only give me strength and courage to
abide with Thee forever.
Prayer.
O Sacred Heart of Jesus, I adore Thy impulses of charity, which
made Thee wish to fill my heart and my soul with Thine, my spirit
with Thy spirit, and to feed my body with Thy sacred flesh. I adore
Thy divinity, concealed from my sight under the symbols of Thy
mystery of love, and I beseech Thee, of Thy mercy, to use my soul,
my mind, my heart, and my body as a temple consecrated to Thy
honor. O Sacred Heart, I adore Thee as a victim sacrificed by the
ascendancy and power of its own pure love. Amen.
Eighteenth Day. O Heart of Jesus, Thou Art All Mine
and I Am All Thine.
Heart of my God, Thou art for me light, hope, heaven, eternity, all. I
thank Thee, sweetest Jesus, for all Thy generosity towards Thy
unworthy creature. I scarcely know myself when I feel Thee so near
my heart in holy communion. Oh, let that love of Thine fill my heart;
do not leave me till Thou grantest me the comfort I hope and claim
of Thee. Lord, were I to ask of Thee temporal things, Thou mightest
well refuse them, but I ask that which thou Thyself art pleased with
—Thy holy love. I cannot love Thee unless Thou grantest me power
to do so. Heart of my Jesus, where shall I find Thee if [pg 258] not
where Thou art really present—in the Adorable Eucharist? Be Thou
blessed a thousand times, my Jesus, Who hast provided so sweet a
source of comfort for us poor exiles in this vale of tears. I behold
Magdalen approach Thee, her heart full of shame, and I behold her
leaving Thee, her heart full of peace and love. I see Augustine filled
with the malice of sin, and all at once he becomes one of Thy
brightest saints. Is, then, Thy power shortened? No, no, Thou never
failest in coming to those who in lowliness of heart cry to Thee for
help. Let me, then, O my sweet Jesus, show Thee all my sorrow and
reveal to Thee all my need. If I had loved Thee as warmly as I have
loved myself and my sins, I would have been a saint long ago. Now
once more I return to Thee; let my hope never be confounded.
Prayer.
Be Thou blessed and praised forever, O Sacred Heart of Jesus,
hidden under the mystical veil of the consecrated Host! Grant that I
may worthily praise Thy ardent love. Thou art all in all to the saints
in heaven. Give me Thy grace, that to me also Thy Sacred Heart
may become all things, and that I may love and adore Thee in spirit
and in truth. Amen.
Nineteenth Day. God is Charity and He Who Lives in
Charity Lives in God.
The Heart of Jesus, a great saint has said, is the abode of every
virtue, the source of every blessing; always filled with love for us, it
is ever ready to receive, to shelter, and to comfort us. O [pg 259]
you who are bending under the burden of sorrow or want, or who
are forever struggling against temptation, fly to this sweet Heart;
there you shall find that God is love, that He is ever attentive, and
ever prepared to hear our slightest prayer. Oh, then, merciful Heart
of my Jesus, be with me everywhere, even when I do not ask Thee,
because then the peril is much greater. Stretch out Thy hand to me
and draw me unto Thee. Thou hast told Magdalen that much was
forgiven her because she had loved much; but was it not Thyself,
sweet Jesus, that gave her such love? Give me the same love, my
Jesus, and I shall love Thee as much. Ah, my Jesus, my heart is no
longer mine—I give it to Thee without reserve. Let it live for Thee
and Thee only; keep it, O Lord, and guard it as Thine own. If the
angels rejoice over the returning of the repentant prodigal, wilt Thou
not find greater delight in that prodigal's sincere desire of thanking
Thee and loving Thee more and more? I resolve that my heart will
henceforward bear Thee company by visiting Thee in Thy
tabernacles, and by fidelity to prayer.
Prayer.
O Sacred Heart of Jesus, Who in a wonderful Sacrament hast left us
a memorial of Thy Passion and a pledge of Thy love, grant us, I
beseech Thee, grace so to venerate the mysteries of Thy body and
blood, that we may ever feel within us the fruits of Thy redemption,
Who livest and reignest with the Father, in the unity of the Holy
Ghost, God forever and ever. Amen.
[pg 260]
Twentieth Day. The Sacred Heart is a Most Patient
Rewarder.
Thou, O sweet Jesus, possessest all wealth and bounty; we know
that Thy riches are inexhaustible, and that Thy desire to impart them
in Thy generosity is without limit and immeasurable. Thy rewards
are always far greater than our merits. For a very slight service,
Thou givest so amply that the greatness and depth of Thy rewards
will be equal to their duration. Jesus, light of my life, shine on my
poor, wretched soul, and plant in it the precious fruits of hatred of
sin, deep contrition, and a firm, lasting resolution of amendment.
Make this poor heart of mine gladly embrace and bear all the crosses
that Thou mayest send me as aids to the attainment of my only end
—that of abiding safe in Thy bright home forever, sweet Jesus, with
Thee. However great the sufferings of this life may be, we can all
have recourse to God, and obtain strength and courage in the
thought that Thou, dear Lord, hast been the first of all great
sufferers, and that Thou wilt never permit our troubles to exceed our
limited strength. Oh, how sweetly and lovingly dost Thou receive the
soul who, notwithstanding temptation and trials, hast always served
Thee faithfully, and hast persevered to the end in Thy service! O my
sweet Love, aid me by Thy grace to bear all afflictions with loving
patience, so that I may one day receive my everlasting reward.
Prayer.
O Sacred Heart of Jesus, which from all time wast inflamed with love
for the glory of Thy [pg 261] heavenly Father, and for our salvation,
be Thou praised and blessed forever! Kindle in our hearts that divine
fire Thou hast brought upon the earth, and grant that we may never,
on our side, oppose it, but that by Thy holy grace it may ever burn
there. Amen.
Twenty-first Day. The Heart of Jesus will Glorify us in
Heaven.
My Jesus, when will that moment come, when having followed
faithfully the path of crosses and tribulations, I shall hear Thee say,
“Well done, good and faithful servant; because thou hast been
faithful over a few things, I shall place thee over many. Enter thou
into the joy of thy Lord.” Oh, the joy the soul will feel when, on
reaching heaven, she shall find herself in the company of the angels
and saints; of Mary, her good Mother, and shall recognize all her
friends and relatives! What joy will it not be to find one's self safe in
port, free from all danger, safe forever in the arms of God! The
happiness of heaven once insured is ours forever more; it cannot be
lost. There will be no more sorrow nor trouble. Thou, O my sweet
Jesus, wilt wipe away all tears from our eyes, and with Thy sweet
voice, Thou wilt gladden our hearts. My soul, enter into thyself, and
reflect that thou wert made for this glory if thou wilt only struggle to
the end. How foolish then is he, who for a brief passing moment of
pleasure, would fling away all claim to that glory, which as St. Paul
says, “Eye hath not seen nor ear heard, neither hath it entered into
the heart of man what things God hath prepared for them that love
Him.” Take courage, my soul, and [pg 262] do not murmur against
those trifling tribulations, which God in His mercy sends for our own
true weal. Most loving Jesus, give me grace to welcome them, to
embrace them eagerly, and to bear them according to Thy good
pleasure, and with sincere resignation to Thy holy will. O my sweet
Jesus, grant that I may one day reach that joyful kingdom, there to
unite my voice to those of the ever blest ones who, with ceaseless
transports of joy, cry out before Thy throne, Holy, holy, holy, Lord
God of hosts; heaven and earth are full of the glory of Thy majesty.
Prayer.
O Sacred Heart of Jesus, Victim of love, consecrated Altar where all
sacrifices are completed, Thou art the glory of the Holy Trinity, the
joy of the angels and all the blessed, and the unfailing hope of
mortals. Be Thou the sole Master of the desires and affections of my
heart. O Heart of Jesus, that lovest me so tenderly, make me love
Thee fervently in this world, so that I may love Thee eternally in
heaven. Amen.
Twenty-second Day. The Heart of Jesus Opened.
Jesus, even after His death, allowed His sacred side to be opened by
a spear-thrust, in order that we might see with what good-will He
had suffered, and how ardently He was inflamed with love of us, and
with desire for our salvation. This opening of the side of Jesus, and
the wonderful shedding of blood and water, should fill us with a
sweet gladness, tempered with tears of sorrow for our [pg 263] evil.
The only time in which we wounded not His Heart was that time in
which we had not yet been furnished by nature with that dangerous
weapon, our natural liberty, the origin of all our offences against
God. He could have deprived us of that free will which has been the
instrument by which we have offended Him so often; but no, He
comes unto us with all love, disclosing to us all the sweetness of His
kind Heart. O my Saviour, Thou never ceasest to renew Thy loving
assaults! Thou didst wait on me, yearning to enfold me in Thy divine
embrace. O peerless mercy of my Jesus' Heart, how can I ever repay
Thee? Heart of my Jesus, I shall endeavor to prove my love for Thee
by atoning as far as is in my power for the many insults offered
Thee. I shall adore and love Thee to the utmost of my power, I shall
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Exploring Management 4th Edition Schermerhorn Solutions Manual

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  • 5. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-1 CHAPTER 7 Strategy and Strategic Management Insights and hard work deliver results Chapter 7 Overview Each Chapter contains several inset features designed to assist the student reader in applying the concepts to relevant examples. Management Live illustrates how popular movies demonstrate management concepts in the chapter. Role Models features a management professional that illustrates key chapter concepts in a novel, visionary or inspirational way. Explore Yourself refers students to self assessment activities relevant to concepts in the chapter. Ethics Check profiles examples of ethical issues in management. Manager's Library features books that illustrate current events or trends relevant to chapter concepts. Facts to Consider introduces research or trends that may be used for class discussion in the classroom or online for distance learning. Chapter Seven provides a definition of strategy and a review of strategic management and insights. The chapter explores various levels of strategies, including those for growth, in use at most organizations. Considerable attention is then devoted to both corporate-level and business-level strategy formulation. Divestiture and restructuring strategies, used primarily when an organization runs into difficulties, are reviewed. A brief discussion of firms pursuing global strategies, cooperative and partnership strategies, and e-business strategies follows. This chapter focuses on strategic management and the role that strategy plays in achieving competitive advantage and maximum organizational performance. The chapter begins by defining the key terms and concepts in strategic management and describing the strategic management process. Emphasis is placed on strategy formulation and strategy implementation. The importance of strategic management for gaining a competitive advantage is also discussed. This is followed by a discussion of the different levels of strategies used by an organization. Considerable attention is then devoted to both corporate- level and business-level strategy formulation. The chapter’s focus then shifts to the process of strategy implementation, with emphasis being placed on common strategic planning failures that hinder strategy implementation and the importance and role of strategic leadership. Next is a review of how managers formulate and implement strategies to accomplish long- term goals and competitive advantage. The steps of the strategic management process are defined, along with an explanation of strategy formulation as the basis of organization’s mission and objectives. A SWOT analysis, tool to analyze company and industry strategy and competitiveness, details an organization’s internal strengths and weaknesses and external opportunities and threats is explored further. Porter’s competitive strategies model and tools to understand the competition position of a company and challenges within its industry are reviewed. Last is a discussion of strategic leadership to ensure strategy implementation and control.
  • 6. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-2 Chapter 7 Takeaway Questions • Takeaway 7.1 What Types of Strategies Are Used by Organizations? • Takeaway 7.2 How Do Managers Formulate and Implement Strategies? Chapter 7 Objectives • To define and explain strategy as a comprehensive plan to achieve competitive advantage. • To categorize and explain corporate, business, and functional strategies used within organizations. • To understand how organizations expand and the types of growth strategies utilized. • To explain strategies organizations employ when they run into performance difficulties. • To explain the importance of global growth opportunities and ways organizations can pursue globalization strategies for further growth. • To explain how cooperative strategies and further cooperation among organizations create new areas of mutual interest. • To explain how companies use the internet or e-business strategies for competitive advantage. • To decipher between web-based business models. • To explain how an organization’s mission and objectives becomes a basis for its strategy formulation. • To define and explore how a SWOT analysis is used to examine an organization’s strengths and weaknesses as a basis for developing strategies. • To review Michael Porter’s models as useful tools in understanding the competitive position of a company and the challenges within an industry. • To explain Porter’s competitive strategies model. • To understand how companies operating multiple businesses selling many different products utilize a portfolio planning strategic approach. • To explain the Boston Consulting Group or BCG Matrix. • To explain the importance of strategic leadership and how to implement strategies. • To list the responsibilities of a strategic leader. Chapter 7 Lecture Outline: • Takeaway 7.1 What Types of Strategies Are Used By Organizations? o Strategy is a comprehensive plan for achieving competitive advantage o Organizations use corporate, business, and functional strategies o Growth strategies focus on expansion. o Restructuring and divestiture strategies focus on consolidation o Global strategies focus on international business initiatives o Cooperative strategies focus on alliances and partnerships o E-business strategies focus on using the Internet for business success. • Takeaway 7.2 How Do Managers Formulate and Implement Strategies? o The strategic management process formulates and implements strategies o Strategy formulation begins with the organization’s mission and objectives
  • 7. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-3 o SWOT analysis identifies strengths, weaknesses, opportunities, and threats o Porter’s five forces model examines industry attractiveness o Porter’s competitive strategies model identifies business or product strategies. o Portfolio planning examines strategies across multiple businesses or products o Strategic leadership ensures strategy implementation and control Chapter 7 Supporting Materials Figures • Figure 7.1: What Are the Steps in the Strategic Management Process? • Figure 7.2: What Does SWOT Analysis Try to Discover? • Figure 7.3: What Is Porter’s Five Forces Model of Industry Attractiveness? • Figure 7.4: What are Strategic Options in Porter’s Competitive Strategies Model? • Figure 7.5: Why is the BCG Matrix Useful in Strategic Planning? Thematic Boxes and More • Management Live: Critical Thinking and Tron: Legacy • Role Models: Wendy Kopp Tackles the Culture of Low Achievement • Ethics Check: Life and Death at an Outsourcing Factory • Facts to Consider: Disposable Workers Are Indispensible to Business Profits • Manager’s Library: Rebooting Work Transform How Your Work in the Age of Entrepreneurship by Maynard Webb • Explore Yourself: Critical Thinking • Tips to Remember: Key Operating Objectives of Organizations • Find Inspiration: Climbing High With Patagonia, Inc. • Table 7.1 Web-Based Business Models Applications • TestPrep 7 Multiple-Choice Questions • Skill Building Portfolio o Self-Assessment 7: Handling Facts and Inferences o Class Exercise 7: Strategic Scenarios o Team Project 7: Contrasting Strategies o Hot Topic: Pro and Con Debate: How about a “double Irish” with a “Dutch sandwich”? • Case Snapshot: Dunkin’ Donuts – Growth Feeds a Sweet Tooth • Sidebar case: Jamba Juice Blends for Fruitful Growth Chapter Outline: Takeaway 7.1: What Types of Strategies Are Used by Organizations? • Strategy is a comprehensive plan for achieving competitive advantage ✓ A strategy is a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish its goals ✓ “Best guess” about what to do to be successful in the face of rivalry and changing conditions ✓ Strategic intent is a unifying target or goal
  • 8. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-4 ✓ Competitive advantage is an “edge” or method of operations that allows an organization to outperform rivals ➢ Sustainable Competitive Advantage is a way of operating that is difficult to imitate • Organizations use corporate, business and functional strategies ✓ Corporate strategy provides direction and guides resource allocations as a whole ✓ Business strategy provides direction and guides resource allocations for an individual unit or division within a larger enterprise ✓ Functional strategy guides activities to implement strategies at a detail or specific operations level ➢ Such as Marketing, Finance, Manufacturing, Marketing, and Human Resources • Growth strategies focus on expansion ✓ Growth strategies are those designed to increase the size of current operations ➢ Concentration strategies focus on an existing business area ➢ Diversification strategies focus on entering new business areas o Related – similar or complementary business areas o Unrelated – entirely new business areas o Vertical integration - acquire suppliers (backward) or customers (forward) • Role Models: Wendy KoppTackles the Culture of Low Achievement In an undergraduate thesis at Princeton University, Wendy Kopp, founder of Teach for America, proposed the creation of her nonprofit. Her strategy included “eliminating education inequities,” by providing excellent education for kids in low-income communities. Her goal: to help children growing up in poverty beat the culture of low achievement. In “What’s the Lesson Here,” students can discuss Kopp’s vision for social change and the lessons for organizations on the link between vision and strategy. Lastly, the question of how a leader of a business can gain high levels of employee commitment to a strategy. • Restructuring and divestiture strategies focus on consolidation ✓ A retrenchment strategy seeks to correct weaknesses by making radical changes to current ways of operating ➢ Liquidation – when a business closes and sells is assets to pay creditors ✓ A restructuring strategy seeks to correct weaknesses by reducing the scale or mix of operations ➢ Chapter 11 bankruptcy - protects an organization from creditors as it re- organizes in an attempt to restore solvency. ✓ Downsizing seeks to decrease the size of operations ✓ Divestiture sells off parts of the organization to refocus attention on core business areas • Explore Yourself: Critical Thinking Critical thinking is a “must-have” for success in strategic management. It enables you to perceive problems, hone in on their more essential aspects, gather and interpret useful information, and make good decisions in complex conditions. Unfortunately, critical thinking can become blurred without the luxury of full information for analysis, common in today’s work environment with its many uncertainties.
  • 9. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-5 Encourage students to take the self-assessment on “Handling Facts and Interferences” in the Skill Building Portfolio. Consider asking students about whether they are able to distinguish “facts” from “interferences” when answering questions. • Global strategies focus on international business initiatives ✓ Globalization strategy adopts standardized products and advertising for worldwide use ➢ Gillette razors ✓ Multidomestic strategy customizes products and advertising to meet local cultural needs ➢ Proctor & Gamble consumer products ✓ Transnational strategy seeks efficiencies of global operations with attention to local markets ➢ Ford, Sony • Ethics Check: Life and Death at an Outsourcing Factory ➢ The sight of netting outside the dormitories of Foxconn factories is sobering when you learn that it was installed to prevent suicides of workers who lose hope and jump off the dormitory roof. What responsibility do employers have to make sure workers not only have safe working conditions, but work that has meaning with a sense of accomplishment and hope of a better future? What responsibility do U.S companies such as Apple, Dell and HP have to make sure Foxconn remedies conditions that lead workers to suicide? How about us as consumers? Do we have a responsibility? Would you alter your consumption habits? • Cooperation Strategies focus on alliances and partnerships ✓ Strategic alliances - two or more organizations create a partnership to pursue an area of mutual interest or strengthen competitive advantage. ➢ Airlines often create strategic alliances with foreign airlines to facilitate easier foreign travel ticketing for travelers and create a competitive advantage for the airlines. ➢ Supplier alliances - suppliers have preferred relationships with others in the supply chain to facilitate smooth flow of supplies. ➢ Distribution alliances - firms cooperate for product/service sales and distribution. ✓ Co-opetition - competitors share information or technology with the intent of creating a larger market for both ✓ IBM and Red Hat cooperate on some aspects of Linux development • E-business strategies focus on using the internet to gain competitive advantage ➢ B2B – business to business; uses web portals and IT to link organizations vertically in supply chains ✓ B2C – business to customers; uses web portals and IT to link organizations with customers ✓ Social media strategy -social media is used to engage customers and other external groups ✓ Crowdsourcing - social media strategy that becomes an interactive idea exchange with customers. Table 7.1 summarizes the types of web-based business models
  • 10. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-6 ✓ Advertising model ✓ Brokerage model ✓ Community model ✓ Freemium model ✓ Infomediary model ✓ Merchant model ✓ Referral model ✓ Subscription model • Manager’s Library: Rebooting Work: Transform How You Work in the Age of Entrepreneurship by Maynard Webb The book is a practical guide to navigating the new era of what many call the “entrepreneurial workplace.” Described is the decline of age-old face- to-face workplace mentoring relationships between senior managers and their juniors. Reasons include technology, shorter, more temporary work contracts, flatter organizations resulting in fewer middle-level managers. Although mentoring has gone by the wayside, the author’s message is to find and access mentors on your own. The “Reflect and React: questions ask: Does the notion of entrepreneurial workplace seem to describe the career settings ahead for you? How about the mentoring strategy? If you don’t have a mentor, and your employer isn’t helpful in finding you one, how can you get yourself one? Can mentoring work as well online as face-to-face? 7.1 Questions for discussion Suggested Answers 1) With things changing so fast today, is it really possible for a business to achieve “sustainable” competitive advantage? It is much more difficult to sustain an advantage today, with the speed of change and technology. However, companies can create a sustainable culture than allows a sustainable advantage through ongoing commitments to innovation and continuous improvement. Examples are Apple, 3M, Proctor and Gamble, Toyota, and many other companies. 2) Why is growth such a popular business strategy? Growth is popular because so many owners and investors desire growth in their returns on capital. Additionally, American culture in particular is growth-oriented compared to other cultures. 3) Is it good news or bad news for investors when a business announces that it is restructuring? Usually restructuring plans are treated as “good news” for investors. The reason for this is that such plans are usually developed when a company is experiencing financial difficulties or sales are slowing, etc. The restructuring plan sends a signal to the market and investors that management is addressing issues and has a plan in place for improving results.
  • 11. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-7 Takeaway 7.2 How Do Managers Formulate and Implement Strategies? • The strategic management process formulates and implements strategies ✓ Strategic management is the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage ✓ Strategy formulation is the process of creating strategies ✓ Strategy implementation is the process of putting strategies into action • See Figure 7.1 for a description of the steps in the management process ✓ Review current situation ✓ Analyze organization and external environment ✓ Develop new strategies ✓ Implement strategies ✓ Evaluate results • Strategy formulation begins with the organization's mission and objectives ✓ Mission is the organization’s reason for existence or purpose ✓ Operating objectives are specific short-term results that organizations try to achieve • SWOT analysis examines strengths, weaknesses, opportunities, and threats ✓ SWOT analysis is a tool used in strategic planning to determine the current status of the organization ➢ Internal assessment of the organizational strengths and weaknesses ➢ External assessment of environmental opportunities and threats ✓ See Figure 7.2 for a depiction of SWOT analysis ➢ Internal Assessment of the Organization includes its: strengths and weaknesses ➢ External assessment of the organization includes its: weaknesses, opportunities, and threats ✓ Core competency is a special strength that gives and organization a competitive advantage DISCUSSION TOPIC To prompt a lively discussion, engage the students in a SWOT analysis of your college or university. They will typically have a lot of opinions ⎯ some quite insightful ⎯ about the strengths and weakness of the institution. They are likely to be less well informed about the opportunities and threats that exist in your institution’s external environment. This activity provides students with a real-life application of SWOT analysis that will help them to better understand how to use this analytical tool. • Tips to Remember : Key Operating Objectives of Organizations • Profits • Cost efficiency • Market share • Product quality
  • 12. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-8 • Talented workforce • Innovation • Social responsibility • Sustainability • Porter’s five forces model examines industry attractiveness ✓ Figure 7.3 illustrates the five forces model which include competitors, new entrants, suppliers, customers and substitutes ➢ Bargaining power of suppliers ➢ Bargaining power of customers ➢ Threat of new entrants to industry ➢ Threat of substitute products ✓ Unattractive industry – intense rivalry, easy entry, substitute products, powerful suppliers and customers ✓ Attractive industry – low rivalry, barriers to entry, few or no substitute products, weak supplier and customer power • Porter’s competitive strategies model examines business or product strategies ✓ A differentiation strategy seeks competitive advantage seeks competitive advantage through uniqueness ✓ A cost leadership strategy seeks competitive advantage through operating with lower costs than competitors ✓ A focused differentiation strategy seeks competitive advantage through concentration on one special market segment and offering a unique product to that segment’s customers ✓ A focused cost leadership strategy seeks competitive advantage through concentration on one special market segment and being the low cost provider to that market segment’s customers ✓ See Figure 7.4 for a depiction of competitive strategies model in the soft drink industry ✓ What is the market scope – broad or narrow? ✓ What is the expected source of competitive advantage – lower price or product uniqueness? ✓ The four combinations of answers result in: ➢ Differentiation ➢ Cost leadership ➢ Focused differentiation ➢ Focused cost leadership strategies DISCUSSION TOPIC If you used the Discussion Topic regarding a SWOT analysis of your college or university, you can continue with that scenario in this Discussion Topic. Have the students discuss which of Porter’s generic strategies that your college or university uses. Make sure that the students fully explain their reasoning. • Portfolio planning examines strategies across multiple businesses or products ✓ Useful for companies that operates a variety of businesses
  • 13. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-9 ✓ BCG matrix analysis is a planning tool for such companies ✓ See Figure 7.5 for a depiction of the BCG matrix approach ➢ Stars - high market share in high growth markets ➢ Cash cows - high market share in low growth markets ➢ Question marks - low market share in high growth markets ➢ Dogs - low market share in low growth markets • Find Inspiration: Climbing High with Patagonia, Inc. ✓ Patagonia is a strategic success story anchored to its mission of: “building the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Patagonia is one of the first companies to file papers to become a benefit corporation, which means that its policies will always “create a material positive impact on society and the environment.” • Strategic leadership ensures strategy implementation and control ✓ Requires good organization structures and cultures, and the right staffing ✓ Strategic leadership - the capability to inspire people to successfully engage in a process of continuous change, performance enhancement, and implementation of organizational strategies ✓ Strategic control - responsibility of top managers to keep in touch with strategy, how well it is being implemented and if it needs to be changed to be more effective in accomplishing the mission ✓ A strategic leader has to: ➢ Be a guardian of trade-offs ➢ Create a sense of urgency ➢ Make sure that everyone understands the strategy ➢ Be a teacher ➢ Be a great communicator DISCUSSION TOPIC Ask students to pick an industry and find examples of companies that seem to be using strategic control as opposed to those who are not. Discuss these in light of the corporate bailouts being sought by corporations vs. those who are not. ✓ Facts to Consider: Disposable Workers Are Indispensible to Business Profits ➢ Northwestern University economist, Robert Gordon, proclaims that we are now in the era of disposable workers. Businesses seem enamored with the idea of hiring less full-timers and more part-time or temporary workers that can be added and let go according to demand, or on a “pay-as-needed approach.” The “Your Thoughts” section poses questions about whether the switch to more disposable workers is a good long-term strategy for businesses and other organizations and the downsides to remaining employees. Discuss with students how this trend may impact them and whether it is something they have factored into their career plan. ✓ Strategic Leadership Responsibilities: ➢ A strategic leader has to be the guardian of trade-offs ➢ A strategic leader needs to create a sense of urgency ➢ A strategic leader must make sure that everyone understands the strategy ➢ A strategic leader must be a teacher
  • 14. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-10 7.2 Questions for discussion Suggested Answers 1) Can an organization have a good strategy but a poor sense of mission? Yes, a strategy answers the question “how” we will succeed; the mission says “what” the purpose of the organization is. If a company has a poorly written mission statement that allows for a “jack of all trades” business definition, the company may attempt to become a conglomerate and fail, or perform with mediocrity, even though the strategies in each separate business/ market may be sound. On the other hand, a company may see its mission as very narrowly defined and miss out on opportunities for growth or adaptation. 2) Would a monopoly receive a perfect score for industry attractiveness in Porter’s five forces model? Monopolies would be very close and may receive a perfect score. The only area where this may be less than perfect is the power of suppliers. Even a monopoly must rely on suppliers. Unless the monopoly happens to also be the sole customer for the supplier’s products (unlikely for most resources), then that aspect would make the “score” less than perfect. 3) Does the BCG Matrix oversimplify a complex strategic management problem? Yes, the BCG matrix oversimplifies strategic positions and strategic planning. It offers a “formula” approach and may lead to abandoning a business that may yield very high returns if management attention is focused on the business in question. Very few companies use the BCG matrix; it was popular in the 1970’s when conglomerates were in vogue. Teaching Notes In this section, ideas, exercises, and assignments are provided to assist you in integrating the concepts in Exploring Management for your students, especially the special features of the text. Management Live: Critical Thinking and Tron: Legacy Tron: Legacy creates a virtual world within a video game with few instructions. You don't have to wander very far off that premise to draw a strong parallel between a lawless cyberworld and the global environment managers operate in today. Managers need strong strategic skills to compete in a confusing global economy with the goal of survival. Critical thinking is mentioned as the most important skill, allowing us to accumulate relevant information, prioritize goals, and develop strategies for success. Students can gain critical thinking skills through case studies provided in the book, but only if they go beyond finding the right vocabulary. They need to thoroughly apply the concepts and develop a winning strategy. Facts to Consider: Disposable Workers Are Becoming Indispensible to Business Profits Northwestern University economist, Robert Gordon, proclaims that we are now in the era of disposable workers. Businesses seem enamored with the idea of hiring less full-timers and
  • 15. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-11 more part-time or temporary workers that can be added and let go according to demand, or on a “pay-as-needed approach.” The “Your Thoughts” section poses questions about whether the switch to more disposable workers is a good long-term strategy for businesses and other organizations and the downsides to remaining employees. Discuss with students how this trend may impact them and whether it is something they have factored into their career plan. Role Models: Wendy Kopp Tackles the Culture of Low Achievement In an undergraduate thesis at Princeton University, Wendy Kopp, founder of Teach for America, proposed the creation of her nonprofit. Her strategy included “eliminating education inequities,” by providing excellent education for kids in low-income communities. Her goal: to help children growing up in poverty beat the culture of low achievement. In “What’s the Lesson Here,” students can discuss Kopp’s vision for social change and the lessons for organizations on the link between vision and strategy. Lastly, the question of how a leader of a business can gain high levels of employee commitment to a strategy. Find Inspiration: Climbing High with Patagonia Patagonia is a strategic success story anchored to its mission of: “building the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Patagonia is one of the first companies to file papers to become a benefit corporation, which means that its policies will always “create a material positive impact on society and the environment.” Manager's Library: Rebooting Work: Transform How You Work in the Age of Entrepreneurship by Maynard Webb The book is a practical guide to navigating the new era of what many call the “entrepreneurial workplace.” Described is the decline of age-old face-to-face workplace mentoring relationships between senior managers and their juniors. Reasons include technology, shorter, more temporary work contracts, flatter organizations resulting in fewer middle-level managers. Although mentoring has gone by the wayside, the author’s message is to find and access mentors on your own. The “Reflect and React: questions ask: Does the notion of entrepreneurial workplace seem to describe the career settings ahead for you? How about the mentoring strategy? If you don’t have a mentor, and your employer isn’t helpful in finding you Ethics Check: Life and Death at an Outsourcing Factory The sight of netting outside the dormitories of Foxconn factories is sobering when you learn that it was installed to prevent suicides of workers who lose hope and jump off the dormitory roof. What responsibility do employers have to make sure workers not only have safe working conditions, but work that has meaning with a sense of accomplishment and hope of a better future? What responsibility do U.S companies such as Apple, Dell and HP have to make sure Foxconn remedies conditions that lead workers to suicide? How about us as consumers? Do we have a responsibility? Would you alter your consumption habits?
  • 16. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-12 one, how can you get yourself one? Can mentoring work as well online as face-to-face? Explore Yourself: Critical Thinking Critical thinking is a “must-have” for success in strategic management. It enables you to perceive problems, hone in on their more essential aspects, gather and interpret useful information, and make good decisions in complex conditions. Unfortunately, critical thinking can become blurred without the luxury of full information for analysis, common in today’s work environment with its many uncertainties. The assessment for this Chapter is entitled “Facts and inferences”. The assessment tool is intended to help students assess their ability to distinguish facts from inferences, an important trait for a manager participating in the planning process. For extended learning, students may discuss how perception of facts and inferences influence strategic management. For example, what role does personal perception of facts influence the establishment of mission or a SWOT analysis? Hot Topic: Pro and Con Debate: How about a “double Irish” with a “Dutch sandwich”? No, it’s not a drink and a sandwich we’re talking about. It’s a global business strategy used to reduce corporate income taxes in America. Ireland offers corporations that put offices and plants there a 12.5% corporate tax rate. That compares with the standards 40% rate due at home. If you set up two Irish companies and arrange to funnel foreign earnings through them – the double Irish move – you pay the lesser tax bill. When it comes to managing a global business, it requires crucial knowledge of tax laws, which vary widely from country to country. Ask students if they would be able to execute a double Irish with a Dutch sandwich. Career Situation: What Would You Do? A neighborhood business association has this set of members: coffee shop, bookstore, drugstore, dress shop, hardware store, and bicycle shop. The owners of these businesses are interested in how they might “cooperate” for better success. As a business consultant to the association, what would you propose as possible strategic alliances that would join sets of these businesses together for mutual gain? For some years now, you’ve owned a small specialty bookshop in a college town. You sell some textbooks but mainly cater to a broader customer base. The store always stocks the latest fiction, nonfiction, and children’s books. Recent numbers show a steep decline in sales, including books that would normally be considered best sellers. You suspect this is because of the growing popularity of e-books and e-readers such as the Amazon Kindle and Barnes & Noble Nook. Some of your friends say it’s time to close up because your market is dying. Is it hopeless or is there a business strategy that might save you? Skill Building Portfolio Terms to Define:
  • 17. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-13 B2B business strategy B2C business strategy BCG Matrix Business strategy Chapter 11 bankruptcy Competitive advantage Concentration Co-opetition Core competencies Corporate strategy Cost leadership strategy Crowdsourcing Differentiation strategy Diversification Divestiture Downsizing E-business strategy Focused cost leadership strategy Focused differentiation strategy Functional strategy Globalization strategy Growth strategy Liquidation Mission Operating objectives Restructuring Retrenchment strategy Social media strategy Strategic alliance Strategic control Strategic intent Strategic leadership Strategic management Strategy Strategy formulation Strategy implementation Sustainable competitive advantage SWOT analysis Transnational firm Vertical integration
  • 18. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-14 TestPrep 7: Multiple-Choice Questions 1. Which is the best question to ask when starting the strategic management process? (a)“What is our mission?” (b)“How well are we currently doing?” (c)“How can we get where we want to be?” (d)“Why aren’t we doing better?” 2. The ability of a firm to consistently outperform its rivals is called ___________ (a)vertical integration (b)competitive advantage (c)strategic intent (d)core competency 3. General Electric is a complex conglomerate that owns many firms operating in very different industries. The strategies pursued for each of these units within GE would best be called __________level strategies. (a)corporate (b)business (c)functional (d)transnational 4. An organization that is downsizing by cutting staff to reduce costs can be described as pursuing a _________strategy. (a)liquidation (b)divestiture (c)retrenchment (d)stability 5. When you buy music downloads online, the firm selling them to you is engaging in which type of e-business strategy? (a)B2C (b)B2B (c)infomediary (d)crowdsourcing 6. The alliances that link together firms in supply chain management relationships are examples of how businesses try to use ____________strategies. (a)B2C (b)growth (c)cooperation (d)concentration 7. Among the global strategies that international businesses might pursue, the _________strategy most directly tries to tailor products to fit local needs and cultures in
  • 19. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-15 different countries. (a)concentration (b)globalization (c)transnational (d)multidomestic 8. If Google’s top management were to announce that the firm was going to buy Federal Express, this would indicate a growth strategy of .____________ (a)diversification (b)concentration (c)horizontal integration (d)vertical integration 9. ___________are special strengths that an organization has or does exceptionally well and that help it outperform competitors. (a)Core competencies (b)Strategies (c)Alliances (d)Operating objectives 10. A ________in the BCG Matrix would have a high market share in a low-growth market. (a)dog (b)cash cow (c)question mark (d)star 11. In Porter’s five forces model, which of the following conditions is most favorable from the standpoint of industry attractiveness? (a)many competitive rivals (b)many substitute products (c)low bargaining power of suppliers (d)few barriers to entry 12. The two questions asked by Porter to identify the correct competitive strategy for a business or product line are: 1—What is the market scope? 2—What is the __________ ? (a)market share (b)source of competitive advantage (c)core competency (d)industry attractiveness 13. When Coke and Pepsi spend millions on ads trying to convince customers that their products are unique, they are pursuing a ______________strategy. (a)transnational
  • 20. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-16 (b)concentration (c)diversification (d)differentiation 14. A firm that wants to compete with rivals by selling a very-low priced product in a broad market would need to successfully implement a ________________ strategy. (a) retrenchment (b) differentiation (c) cost leadership (d) diversification 15. In addition to focusing on strategy implementation and strategic control, the responsibility for strategic leadership of an organization involves success with _________________. (a)motivating a disposable workforce (b)the process of continuous change (c)Chapter 11 bankruptcy (d)growth by liquidation Short-Response Questions: 16. What is the difference between corporate strategy and functional strategy? A corporate strategy sets long-term direction for an enterprise as a whole. Functional strategies set directions so that business functions such as marketing and manufacturing support the overall corporate strategy. A corporate strategy sets long-term direction for an enterprise as a whole. Functional strategies set directions so that business functions such as marketing and manufacturing support the overall corporate strategy. 17. Why is a cost leadership strategy so important when one wants to sell products at lower prices than competitors? If you want to sell at lower prices than competitors and still make a profit, you have to have lower operating costs (profit 3 revenues 5 costs). Also, you have to be able to operate at lower costs in ways that are hard for your competitors to copy. This is the point of a cost leadership strategy—always seeking ways to lower costs and operate with greater efficiency than anyone else. 18. What strategy should be pursued for a “question mark” in the BCG Matrix, and why? A question mark in the BCG matrix has a low market share in a high growth industry. This means that there is a lot of upside potential, but for now it is uncertain whether or not you will be able to capitalize on it. Thus, hard thinking is required. If you are confident, the recommended strategy is growth; if you aren’t, it would be retrenchment, to allow resources to be deployed into more promising opportunities.
  • 21. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-17 19. What is strategic leadership? Strategic leadership is the ability to enthuse people to participate in continuous change, performance enhancement, and the implementation of organizational strategies. The special qualities of the successful strategic leader include the ability to make tradeoffs, create a sense of urgency, communicate the strategy, and engage others in continuous learning about the strategy and its performance responsibilities. Integration and Application Questions: Integration and Application Question 20. Kim Harris owns and operates a small retail store, selling the outdoor clothing of an American manufacturer to a predominantly college-student market. Lately, a large department store outside of town has started selling similar but lower-priced clothing manufactured in China, Thailand, and Bangladesh. Kim is starting to lose business to this store. She has asked your instructor to have a student team analyze the situation and propose some strategic alternatives to best deal with this threat. You are on the team. Questions: Why would a SWOT analysis be helpful in addressing Kim’s strategic management problem? How could Porter’s competitive strategies model be helpful as well? A SWOT analysis is useful during strategic planning. It involves the analysis of organizational strengths and weaknesses, and of environmental opportunities and threats. Such a SWOT analysis in this case would help frame Kim’s thinking about the current and future positioning of her store, particularly in respect to possible core competencies and competitive opportunities and threats. Then she can use Porter’s competitive strategy model for further strategic refinements. This involves the possible use of three alternative strategies: differentiation, cost leadership, and focus. In this situation, the larger department store seems better positioned to follow the cost leadership strategy. This means that Kim may want to consider the other two alternatives. A differentiation strategy would involve trying to distinguish Kim’s products from those of the larger store. This might involve a “made in America” theme or an emphasis on leather or canvas or some other type of clothing material. A focus strategy might specifically target college students and try to respond to their tastes and needs rather than those of the larger community population. This might involve special orders and other types of individualized service for the college student market. Self-Assessment 7: Handling Facts and Inferences Instructions 1. Read the following report. A well-liked college instructor had just completed making up the final examination and had turned off the lights in the office. Just then a tall, broad figure with dark glasses appeared and demanded the examination. The professor opened the drawer. Everything in the drawer was picked up, and the individual ran down the corridor. The
  • 22. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-18 president was notified immediately. 2. Indicate whether you think the following observations are true (T), false (F), or doubtful in that it may be either true or false (?). Judge each observation in order. Do not reread the observations after you have indicated your judgment, and do not change any of your answers. 1. The thief was tall, broad, and wore dark glasses. 2. The professor turned off the lights. 3. A tall figure demanded the examination. 4. The examination was picked up by someone. 5. The examination was picked up by the professor. 6. A tall, broad figure appeared after the professor turned off the lights in the office. 7. The man who opened the drawer was the professor. 8. The professor ran down the corridor. 9. The drawer was never actually opened. 10. Three persons are referred to in this report. Scoring The correct answers in reverse order (starting with 10) are: ?, F, ?, ?, T, ?, ?, T, T, ?. Interpretation To begin, ask yourself if there was a difference between your answers and the correct ones. If so, why? Why do you think people, individually or in groups, may answer these questions incorrectly? Good planning depends on good decision making by the people doing the planning. Being able to distinguish “facts” and understand one’s “inferences” are important steps toward improving the planning process. Involving others to help do the same can frequently assist in this process. Class Exercise 7: Strategic Scenarios Preparation In today’s turbulent economic climate, it is no longer safe to assume that an organization that was highly successful yesterday will continue to be so tomorrow—or that it will even be in existence. Changing times exact the best from strategic planners. Think about the situations currently facing the following well-known organizations. Think, too, about the futures they may face. McDonald’s Ford Sony Apple Computer Nordstrom United Airlines Yahoo! National Public Radio AT&T Ann Taylor The New York Times Federal Express Instructions Form into groups as assigned by your instructor. Choose one or more organizations from the prior list (or as assigned) and answer the following questions for the organization: 1. What in the future might seriously threaten the success, perhaps the very existence, of this organization? As a group, develop at least three such future scenarios.
  • 23. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-19 2. Estimate the probability (0 to 100%) of each future scenario occurring. 3. Develop a strategy for each scenario that will enable the organization to successfully deal with it. 4. Thoroughly discuss these questions within the group and arrive at your best possible consensus answers. Be prepared to share and defend your answers in general class discussion. Team Project 7: Contrasting Strategies Starbucks is the dominant name among coffee kiosks—how does Dunkin Donuts compete? Google has become the world’s search engine of choice—can Bing ever catch up? Does it make a difference to you whether you shop for books at Amazon or Barnes & Noble, or buy gasoline from BP, Shell, or the local convenience store? Question How do organizations in the same industry fare when they pursue somewhat or very different strategies? Instructions 1. Look up recent news reports and analyst summaries for each of the following organizations: Coach and Kate Spade . . . Southwest Airlines and Delta Airlines . . . New York Times and USA Today . . . UnderArmour and Lululemon . . . National Public Radio and Sirius Satellite Radio. . . Coca-Cola and PepsiCo 2. Use this information to write a short description of the strategies that each seems to be following in the quest for performance success. 3. Compare the strategies for each organizational pair, with the goal of identifying whether or not one organization has a strategic advantage in the industry. 4. Try to identify other pairs of organizations and do similar strategic comparisons for them. 5. Prepare a summary report highlighting (a) the strategy comparisons and (b) those organizations whose strategies seem best positioned for competitive advantage. Cases for Critical Thinking Dunkin Donuts – Growth Feeds a Sweet Tooth Sidebar: Jamba Juice Blends for Fruitful Growth Long before Starbucks was even a glimmer in anyone’s entrepreneurial mind, Dunkin’ Donuts was a well-known chain of coffee shops in the Northeast. Today, Dunkin’ Donuts is a global player quickly expanding its food and coffee menus to ride the wave of fresh trends appealing to a generation of more health-conscious customers. It’s a highly competitive industry and change is constantly on its menu. With Starbucks rethinking its positioning strategy and McDonald’s offering a great tasting coffee at a reasonable price, Dunkin’ Donuts is hoping that careful strategic planning will keep its customers “Runnin on Dunkin.” Case discussion questions and suggested answers:
  • 24. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-20 1. DISCUSSION What does a Porter’s Five Forces analysis reveal about the industry in which Dunkin’ Donuts and Starbucks compete? What are the strategic implications for Dunkin’ Donuts? Porter's Five Forces model analyzes factors that influence a specific industry to help managers understand its competitive factors. An analysis of the factors would seem to indicate that the industry is very competitive and competitive advantages can be very quickly copied. The Five Factors as they apply to Dunkin’ Donuts and Starbucks might include: • New entrants - Dunkin’ and Starbucks sell breakfast beverages and pastries in an effort to expand its breakfast menu. Competition includes expansion by similar regional companies like Caribou Coffee and McDonald’s whose offerings include premium coffee. • Customers - the bargaining power of buyers is very influential to the industry. The current recession has resulted in the closing of hundreds of Starbucks locations, while relatively few of the franchised Dunkin’ Donuts have closed. • Substitute products - the large number of substitute beverages and breakfast alternatives makes this a huge factor in the industry. • Suppliers - occasionally the supply of coffee beans is limited, driving up the cost of the beverage. • Industry competition - Starbucks and other regional coffee shops; convenience stores like 7-Eleven and Circle K; fast food restaurants like McDonald’s and Burger King. 2. DISCUSSION: Discuss the pros and cons of Jamba Juice’s expansion strategy and how it compares to that of Dunkin’ Donuts. What similarities are there between the two companies in terms of their growth strategies? Discuss. Pros of Jamba’s expansion strategy: • The company has expanded beyond just a maker of smoothies to a active/healthy lifestyle brand. • It has refocused on franchising, consumer packaged goods (CPG), and Jamba GO stations at various venues, to facilitate further expansion. • Expanded menu items: Its product variety includes whole fruit smoothies, squeezed juices, hot oatmeal, breakfast wraps, bistro sandwiches, mini-wraps, California Flatbreads, frozen yogurt, and various baked goods and snacks. The company has also expanded its menu to include vegan and vegetarian options. • Jamba’s presence in various venues: JambaGo Express is a smoothie concept created to facilitate the company’s brand presence into venues where healthier, quick serve options are part of the menu offering. This includes K-12 schools, universities, college campuses, convenience stores and delis. • Franchise business model (an asset light business model) was a clever way to raise cash. It was far less capital intensive. It also improved the company’s balance sheet.
  • 25. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-21 Although the revenue from franchising is far lower, it represents pure profit. Jamba has executed a remarkable transformation from many ailing company-owned stores to a successful franchise business model. • Jamba has licensed its Jamba brand name to sell consumer packaged goods (CPG) online and through retail channels such as grocery, mass, club, and convenience stores. • Expansion of product offering with Talbott’s Teas • Tennis pro Venus Williams is currently a company spokesperson (and franchisor) – she advocates for active and healthy lifestyles. Cons of Jamba’s expansion strategy: • Jamba’s profitability is still volatile. • In 2012, the company marked its first year of profitability after going public in 2006. • Despite its comeback, there are still far more cash-rich formidable competitors. • The consumer packaged goods industry is intensely competitive. • Threats from cash-flushed competitors like McDonald’s, Wendy’s or YUM have targeted the smoothie industry and can easily take sales away. • As the company continues to sell more food items, it becomes more susceptible to swings in commodity prices. How Jamba’s expansion strategy compares to that of Dunkin’ Donuts: • The use of other people’s money (franchisors) to expand and grow means less of a capital investment, expanded menu items, retail presence. 3. PROBLEM SOLVING: Gather information to build an up-to-date SWOT analysis for Dunkin’ Donuts. If you were the CEO of the firm, what would you consider to be the strategic management implications of this SWOT analysis, and why? Strengths Weaknesses Opportunities Threats Brand Recognition Conflict with franchise owners Low calorie menu items Competition from others Customer Loyalty DD is nowhere near the level of penetration in developing countries as compared to others Healthier choices on menu Healthier lifestyles and eating patterns (avoidance of high calorie/sugary foods) Large variety of flavors of donuts and baked items Low barrier to entry for competitors Online marketing to increase customer basis Increased awareness of healthy food choices Known for its coffee Perception of nonexistent healthy choices Social media to increase customer base Childhood diseases on the rise (diabetes and obesity) Number of locations Expansion outside the United States (emerging markets) Competition from local pastry and coffee shops Loyalty program Product expansion Competition from McDonald’s and Starbucks (coffee and donuts) Years of Coffee consumption on Price of coffee beans
  • 26. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-22 experience/longevity the rise in Asia, along with income levels Major sports team association (Red Sox) Recessionary spending on “comfort foods” and less expensive snacks compared to other store- bought items Awareness of Fair Trade policies for coffee bean purchases. Advertising and marketing programs and strategies Growth through franchising Increased raw material costs and coffee costs Reputation for high quality, superior grade of coffee Continued store growth Largest seller of coffee by the cup The strategic management implications of this SWOT analysis Review current situation would include developing and implementing new strategies and evaluate results. 4. FURTHER RESEARCH Research the latest moves by Starbucks and other Dunkin’ Donuts’ competitors. What is each doing that seems similar to and different from the approach of the other? Can you say that Dunkin’ is on the right track? Is it carving out new market share? Or, is it going to be more of a copycat player in the industry? Latest news for: Starbucks: • Starbucks recently introduced several new sandwiches and salads on its menu to increase sales in the U.S. in the slower afternoon and evening hours. • With McDonald’s and Burger King offering specialty coffees, one way for Starbucks to increase its revenue is by offering food items. • Starbucks announced that it will include calorie information on menu boards at all company-operated and licensed U.S. Starbucks. • Opened first store in New Delhi, India and entered Vietnamese market. • Expansion of company’s loyalty and rewards program • Industry-first innovation that will enable customers to earn rewards for grocery channel purchases that can be redeemed in Stabucks retail stores. • Expansion of mobile payment platform • Launch of new nonprofit corporation with a $1 million seed grant to introduce job skills, leadership and apprenticeship programs to young people across the company’s • Expansion of mobile payments platform, which is generating over three million U.S. mobile payments per week. • Schultz’s recognition of Starbucks 15-year business partnership with Mohammed Alshaya, Executive Chairman, M.H. Alshaya Co., including comments about how bringing specialty coffee to the Middle East serves as a model for the company’s future expansion initiatives.
  • 27. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-23 Dunkin’ Donuts: In summary, Dunkin’ Donuts is expanding its menu to include a few new “better-for-you” breakfast items and a few new “all-day menu items.” Also new is a frozen version of hot chocolate. In addition, the company is interested in expanding into non-traditional venues such as schools and universities. Its DDSmart menu has healthy items for those interested in a healthier lifestyle. The company recently shifted to eggs from cage-free hens in an effort to eliminate gestation crates from its supply chain. • The introduction of two new chicken sandwiches (barbeque chicken and bacon-ranch chicken) on its menu is a step in the brand’s commitment to all-day menu items. is a significant step in the brand’s commitment to all-day menu items. • Dunkin’ Donuts recently unveiled the Hot Chocolate Coolatta®, the newest addition to its lineup of Coolatta frozen beverages. • Adds turkey sausage breakfast sandwich to its item to permanent menu • Chicken salad and tuna salad wraps are added to Dunkin’ Donuts menu • New angus steak and egg sandwich and wake-up wrap added to menu • Dunkin’ Donuts is interested in expanding into non-traditional venues including colleges and universities, casinos, military bases, supermarkets, airports and travel centers. • The company uses Social Media (Twitter Sweepstakes and Instagram) to introduce new products and promotions. They also have an app that provides coupons to loyal customers. • DDSmart with better-for-you breakfast option menu is for healthy items such as oatmeal. • Dunkin' Donuts Announces Shift to Eggs from Cage-Free Hens and Commitment to Eliminate Gestation Crates from its Supply Chain. What is similar? • Focus on new and all-day menu items • Healthy menu choices (calorie counts on Starbucks menus) • Commitment to social responsibility and sustainable business practices What is different? Starbucks is a more hip and trendy place to get a cup of coffee, while Dunkin’ Donuts fancies itself as a welcome place for any ordinary-Joe or Josephine. Dunkin’ Donuts is a place to grab a reasonably priced quick or to go reasonably price cup or coffee while Starbucks is a more expensive product with a higher quality reputation. In other words, Dunkin’ is more the layman’s coffee and the feel of a fast food restaurant, while Starbucks, with its comfortable atmosphere and seating, appeals to a higher socioeconomic demographic. Is Dunkin’ on the right track? Is it carving out new market share? Yes, from some of its recent news items noted above, it appears to be targeting, in addition to its morning coffee and donut eaters, those interested in healthy food choices along and all-day menu items.
  • 28. Schermerhorn Exploring Management 4th edition Instructor’s Manual Copyright © 2014 John Wiley & Sons, Inc. 7-24 Will it be a copycat player? It depends. Dunkin’ Donuts has carved out a different target customer than Starbucks -- one more focused on convenience and price. Suggested Team Exercise for Chapter 7 Break the class into pairs or small (no more than four students) teams. Assign each team an industry (pick industries that students can relate to such as chocolate candy; automobiles; clothing; shoes; fast food; beer; cell phones; computers, etc.) Have each pair or team identify (and explain if needed): The company or product using a cost leadership strategy (example Chery from China) The company or product using a differentiation strategy (example Scion) The company or product using a focused cost leadership strategy (example Focus) The company or product using a focused differentiation strategy (example Porsche)
  • 29. Other documents randomly have different content
  • 30. Second Day. The Heart of Jesus My Friend. Oh, what folly, what delusion can be worse than to set one's heart on anything save Thee [pg 239] alone, O God! How poor is he who seeks not his whole good in Thy sweet friendship alone! Heart of my Jesus, wounded for love of me, permit me to draw nigh to Thy open side, and confess to Thee a thousand times over that I love Thee. O Heart of Jesus, forgive my past foolishness! O beloved and adorable Redeemer, who will give water to my head, and a fountain of tears to my eyes, that I may weep day and night for the contempt shown to Thy love, and the ingratitude with which Thy benefits are repaid! O ye angels, who crowd the sanctuaries in which dwells the divine Spouse of our souls, cease not to pour forth at the foot of His altars the most profound homage. One of the usual duties shown by people towards those whom they respect are visits. Jesus Christ is our Friend, our Father. He is in our midst: we know it, and yet He is the only One Whom we forget. Whoever thinks of visiting Jesus Christ? We frequent the church and fulfil our other religious duties, but do we always go through motives of love or gratitude, and with the expected intention of rendering homage to Our Lord? O Jesus, could a more cruel wound be inflicted on this loving Heart? O Sacred Heart of my Jesus, forgive me, and vouchsafe me the blessing of remaining forever Thy child. Prayer. Prostrate before Thee, O Sacred Heart of Jesus, I humbly pay Thee all my homage, and my profound adoration. I adore Thee, O Sacred Heart, destined from all eternity to be God's masterpiece and the prodigy of His power, wisdom and goodness. Amen. [pg 240]
  • 31. Third Day. The Heart of My Jesus the Heart of My Father. Heart of Jesus, Thou art my Father! All I have is from Thee; at every step I meet with proofs of Thy infinite love. Even when I strayed away from Thee, Thou didst entreat me to return, assuring me of pardon and love. If I shed tears of sorrow, Thy love wiped them away, and Thy sweet voice gave courage to my sinking soul. O my sweet Jesus, be forever a Father to me! What an amount of gratitude do I not owe to my Lord, when after so much love and care, He reappears among us in the Sacrament of the Altar? In thus dwelling among us, He willed to unite Himself with us, in a way as intimate as it is incomprehensible; shutting Himself up under the appearance of bread, He enters into our hearts and makes His own flesh our nourishment. What a source of happiness for me, O my sweet Jesus! My eyes do not see Thy divine face, but my heart feels Thy comforting presence. When I receive Thee, O Father, into my breast, I feel my soul gladdened with the wine of heaven, “which maketh virgins.” And since love causes lovers to resemble each other, if we love let us form our life on the model of Jesus. Let us therefore, belong forever to the Beloved of our souls. Let us give Him our whole heart, our love, our affections, inclinations, and desires. Prayer. Allow me, O my Saviour, to offer Thee my heart, and grant that I seek only to please Thee in all things. From this moment I consecrate [pg 241] my heart to Thee; take possession of it, destroy its indifference, purify its affections, and give a new life to its inclinations. O sweet Jesus, take possession of me and consume me in the flames of Thy love. Amen.
  • 32. Fourth Day. In Thy Heart I Shall Find Peace. Thee, Thee alone, O Heart of my God, will I love! Heart most pure, Heart most holy, never tiring of my insults, ever forgiving and forgetting, and, if I do but love Thee sincerely, admitting me as a chosen friend to Thy sweet company. “Come unto Me, all you that labor, and are heavily burdened, and I will give you rest.” Seek not elsewhere for relief in sorrow: come to the Heart of One Who loves you. Never will you meet with a more generous giver, never will you meet a kinder friend, never will you meet one who will bear with you more patiently in your trials and temptations. Be comforted, then, my heart, in having this God of love, Who will not abandon you; Who has no sweeter choice than to hearken to your prayers. Well, dear Lord, behold how my poor soul is chained down, what billows of sorrow buffet it and all but wreck it. Come then, O Heart of my Jesus, come to me or I perish. In Thee alone do I find relief. Be Thou a thousand times blessed, O sweetest Heart, for all Thy mercy! O admirable Heart, forgive my guilty wretchedness. Henceforth Thee alone will I seek, Thee alone will I love. I shall serve Thee and Thee only till my dying gasp, in hope of praising and loving Thee forever more in heaven. [pg 242] Prayer. O Sacred Heart of Jesus, be Thou praised and blessed forever as the source of supernatural life, the nourishment of the soul, and the sustenance of the spirit! From Thy fulness all good is poured out upon us. Fill my heart, I beseech Thee, with the sentiments that inspired Thy adorable Heart. Amen.
  • 33. Fifth Day. The Sacred Heart of Jesus Teaching Charity. Thy Heart, O my Jesus, is a mystery of charity; mine is a mystery of malice. I am ashamed and confounded when I consider attentively Thy Heart, O my Jesus! Thou, the Creator and Master of all things— Thou art meek and lowly of heart, and I, a poor outcast, am full of pride and presumption. How often have I not outraged Thy love and despised Thy law, and still Thou art silent and forgivest me! Thou art ever ready to welcome back Thy lost sheep, no matter how far they have strayed, nor how deeply they have wounded and insulted Thy loving Heart! And can it be that after that I would dare violate the charity I owe my neighbor? That I would, for a slight offence, allow proud and revengeful feelings to take possession of my heart? Oh, what a contrast to Thy gentleness and patience! I cannot forget the least insult received, whilst Thou, O my God, at the first sincere prayer for pardon wilt forget all the injuries that I have offered Thee. Could I then fail to choose Thy Heart as a model for my own? But how can this cold heart of mine ever resemble that kindest Heart [pg 243] of Thine? Thou alone possessest the remedy. Behold me then, O sweet Jesus, and mercifully regard a misery so profound. “My heart is ready, O God, my heart is ready.” I will extol Thee, O God my King, and I will bless Thy name forever and ever. Prayer. Be Thou praised and blessed forever, O Sacred Heart of Jesus, Who in the fervor of Thy charity, hast devised a miraculous means of filling hearts with the holy flame of Thy divine love. Impress my heart so deeply with this divine seal, that nothing may ever enter into it, or proceed from it, that is not in conformity with Thy Sacred Heart. Amen.
  • 34. Sixth Day. The Heart of Jesus My Comforter. To whom can I more confidently tell my many needs and frailties than to Him Who knows them more clearly than I do myself? Thy voice, O Jesus, alone has the power to console and comfort the heart that loves Thee. They are blind indeed who go in search of consolation and happiness from creatures. Why did I not fly to Thee when I felt the first onset of this world? I turned hither and thither, seeking on all sides for aid and comfort, but I turned not my glance to Thee, Who alone canst rescue the soul from sin. Heart of Jesus, oh, what manner of love is Thine! Forgive my past foolishness, and now that I return again to Thee, give me grace never to leave Thee. Let my soul, like Magdalen, rest at Thy sacred feet. Stay with me, O Jesus, stay with me forever. Teach me what I must [pg 244] needs do to live with Thee, and I shall trample under foot all the joy and gain this world can offer me. I shall embrace with gladness for Thy sake all afflictions and all sorrows. But, O my God, shelter beneath the wings of Thy love every instant of my life, and encourage and strengthen my poor weak heart. Prayer. O Sacred Heart of Jesus, I adore the admirable impulse which made Thee all Thy life a victim of love, and led Thee to consummate it by a death of perfect love. Grant that by Thy holy grace, my heart may become a living sacrifice, desiring only to be offered up and to offer up all things for Thy greater glory. Amen. Seventh Day. The Heart of Jesus My Helper in Trials. How few are there who love God alone for His own sake, and bless Him alike in sorrow and in joy! Why, O my God, do I fear to travel on
  • 35. the royal road of the cross—the only road that Thou hast travelled, and the shortest and surest way to heaven? Do I forget that Thy cross sanctified and redeemed the world, and formed the bliss of Thy elect in heaven? Why, then, do I shrink from carrying it with courage? Let us remember that our union with Jesus crucified will be the measure of our union with Him in glory. That in suffering for Jesus we show our true love for Him. Oh, a thousand times blessed are all who clasp the cross to their hearts and follow Jesus. Be not sad, my soul, when thou art in pain: the Heart of Jesus was [pg 245] crushed far more than thine. That sweet Heart of my Jesus was overwhelmed with sadness at the sight of our sins, pierced with a thousand deadly shafts, humiliated, abandoned by His Father: finally cruelly wounded on the cross, shedding His blood, even to the last drop. Compare such sorrow with thine, and yet thou darest complain! Jesus, forgive me, forgive such a vile wretch, and crown Thy mercy and love. Prayer. O almighty and eternal God, look upon the Heart of Thy well-beloved Son, and the praise and satisfaction He offers Thee in the name of poor sinners. Have mercy upon them, since they ask it through this same Jesus Christ, Thy Son, Who liveth and reigneth with Thee in the unity of the Holy Ghost, one God forever and ever. Amen. Eighth Day. In the Heart of Jesus I Shall Find Rest. O Heart of my Jesus, I will cast myself with sweetest confidence into Thy bosom, and I will rest on Him Who is the everlasting rest of the elect in heaven. I will draw nigh unto Him Who can sweeten all the bitterness of my weary pilgrimage here. I will rest, as John the beloved disciple did, on the Heart of Jesus, and tell Him a hundred times over that peace and comfort cannot be found elsewhere but in
  • 36. that sweet Heart. The Heart of Jesus is the city of refuge, in which we are safe from the pursuit of the enemy. It is the city of refuge, which defends us from the wrath of an angry Judge. Give thy heart to Him, for He has opened His [pg 246] Heart to thee. Give not thy heart to the world, but to Christ thy Lord. O Heart of Jesus! Thou givest to the heart that loves Thee perfect peace, great joy of spirit, and a foretaste of heaven's delight. My God, make me love Thee, not coldly but with a passionate love. All for Thee, O my God, all for Thee alone—let this be my watchword, and then only will I find true rest and peace. May heaven and earth praise and bless Thee forever. Prayer. O Sacred Heart of Jesus, I unite my heart to the spirits of the blessed, that with them it may sing to Thy glory before the throne of God. The Lamb that was slain is worthy to receive power, and divinity, and wisdom, and strength, and glory, and benediction. By Thy virtue guard my heart, and preserve it from the stains of its own sinful desires. Amen. Ninth Day. The Heart of Jesus an Ocean of Love. O Heart of Jesus! Thou hast, in the greatness of Thy love, come down to put on the garb of humanity, and to take into Thy breast man's heart—to make him a source of Thy delights: to soothe the pain that sin inflicts on his wretched soul. O God of love, what then shall I do for Thee Who hast loved me with such an excess of love? What return can I make for such great graces? Ah, yes! I will address Thee with the sweet name of “Father,” a God so generous and so great, and how easy will it be for me to love Thee, O Jesus, my best Friend. In thus dwelling among us He willed to unite Himself [pg 247] with us in a way as intimate as it is incomprehensible. And to bring about this, He instituted the Sacrament of the Altar, and
  • 37. shutting Himself up under the appearance of bread, He enters into our hearts and makes His own flesh our nourishment. This gift of the Eucharist, O my God, is of all Thy wonders the very crown. In this banquet of love, Thou hearest all our sighs and complaints, and Thou forgivest all our sad errors and foolishness. O happy Christians, what a source of happiness we possess! Let us then give Him all the love and gratitude He has a right to expect from us. Let our love be as unlimited as the love Our God has shown unto us. O Jesus, how sweet it would be to live for Thee and Thee only! Prayer. O my good Jesus, within Thy Heart, with sweetness overflowing, I place myself; hide me deep therein that I may never stray away. In life my joy, in death my guide, be Thou unto me my bliss in heaven. This I ask for every one, and I ask it by Thy tears, Thy sweat, Thy sacred blood. Amen. Tenth Day. The Ingratitude of Men to the Heart of Jesus. Wherever we cast our eyes we meet with sad proofs of the ingratitude of men to the Heart of Jesus. A large portion of the Christian world is plunged in heresy, denying Christ's presence in the mystery of the Altar, and not satisfied with refusing to recognize this great benefit they have lifted their sacrilegious hand against the sacred Host. But, O [pg 248] divine Jesus, behold a still more grievous source of sorrow to Thy Heart! It is not from Jews or heretics that Thou receivest these insults, but from Thine own chosen people, the people who profess to believe in Thy real presence. Jesus is in our midst, we know it, and yet He is the only One Whom we forget, the only One Whom we treat with careless indifference. It is thus that Christians respond to the love of Our
  • 38. Lord; it is thus they repay all His benefits. O sweet Jesus, pardon my base ingratitude! Angels of heaven, you who know so much better than I the full extent of the love of Jesus' Heart towards me, praise Him for me, and bless Him. O my God, grant that I may live poor, unknown, and hidden in the Sacred Heart of Jesus, my divine Master, forgotten and despised by creatures, so that Thou mayest establish Thy reign of love upon my nothingness. I hope that Thou wilt mercifully hear my request, and grant it. Prayer. O Sacred Heart of Jesus, my Lord! O noblest, greatest, and most generous of all hearts! I adore the divine impulses which led Thee, from the moment of Thy conception, to love me who was nothing, who would offend Thee in so many ways, and so often misuse Thy graces. O holy Friend of hearts, change my heart, and make it choose Thee for its only Friend. Amen. Eleventh Day. The Gratitude Due to the Heart of Jesus. If it were in my power, I would return Thee unceasing acts of thanksgiving, and they would [pg 249] still be too little to praise Thee for Thy boundless love. I thank Thee and bless Thee for having poured out Thy most precious blood to wash away my sins. Thou didst reserve nothing for Thyself, Thou didst become dry and barren as a grape trodden in the wine-press. O ardent love, that is never extinguished! would that I burned with this fire Thou hast sent on the earth, and which Thou dost so fervently desire to see kindled in souls! O most sweet Jesus, open to me, I humbly beseech Thee, the door of Thy Heart, the door of love and mercy. There only will my troubled soul find sure refuge, my crimes pity and forgiveness. To Thee alone, O Heart of Jesus, I have recourse; assist Thou me. Thou
  • 39. hast sought for me so painfully and so long, O my God, when I strayed from Thy loving care. Behold me here now; I give myself to Thee. With the help of Thy grace I will be faithful to Thee, and will keep my soul in spotless purity and deepest humility. O Heart of my God, prevent me from ever abandoning Thee again! May my heart be always open and ready to admit Jesus, my well beloved. Let me cling to Thy feet, like Magdalen, and give Thee love for love. Prayer. O Sacred Heart of Jesus, my Saviour, I adore Thee, shedding tears over my sins. Would that I had a fountain of tears in my heart, that I might weep as I ought for the sorrows I have caused Thee! Give me grace to bring forth worthy fruits of penance. I adore Thee, O King of hearts, Who art the delight of heaven and earth! Amen. [pg 250] Twelfth Day. In the Heart of Jesus is Found the Way, the Truth, and the Life. O my Jesus, I have never found truth save in Thee, and aside from Thy paths I have never met but vanity and wrong. If Thou dost not guide me in all things, I shall stray about forever, and will quickly perish through fatigue and want. Speak, then, O Lord, speak to Thy servant, and grant him to comprehend Thy wonderful love. Heart of my God, give me to see that Thou art the only way in which I must walk, if I wish to walk aright. What would ever become of me if Thou wert not my life, principally in the Adorable Sacrament of the Altar, where Thou dwellest actually, corporally, and perpetually, waiting to receive my homage and ever ready to give me all graces
  • 40. and blessings. Oh, how boundless is my need of Thee, my God; draw me unto Thee and dispel the darkness which surrounds me. Deign to accept, O Heart divine, this poor desire. My God, Thou art my Father; have pity on me according to the greatness of Thy mercy. I abandon myself to Thee: do not reject me; make me love Thee and nevermore separate Thyself from me. Prayer. O sacred Heart of Jesus, Thou art the heavenly light! Thou dispellest the darkness of the soul, and fillest it with sweetness. Thou art the Heart of hearts, and worthy of the greatest love. Thou art the source of that heavenly fire that enlightens and burns. Inflame my heart with Thy divine ardor, that it may burn with love of Thee to all eternity. Amen. [pg 251] Thirteenth Day. To the Heart of Jesus Alone I Turn. We are made for God alone, nor can we find peace elsewhere save in God alone. But who can kindle in us Thy love, if not Thou Thyself, O Lord? Oh, then, sweet Heart of Jesus, I will not cease to knock at the portal of Thy Heart, with tears and true contrition! Let others seek the perishable goods of this world. For my part I ask but Thee alone. Forgive my past unfaithfulness, and unite me so closely to Thee that I may never be able to forsake Thee. Yes, my Saviour, I will leave creatures and all earthly pleasures to run after Thee in the Sacrament of Thy love. But I am ashamed to appear before Thee, O my Jesus, I, who am so naked and so devoid of all virtues. What then am I to do? Am I to appear no more before Thee? Ah, no! this would not please Thee. Thou dwellest in the Sacrament, not only to
  • 41. reward Thy lovers, but also to provide for the poor out of Thy riches. I adore Thee, then, King of my heart! O Shepherd, loving Thy sheep beyond all bounds, to this throne of love I now approach, and having nothing else to give I offer Thee my poor heart. Mercy, O Heart of God, I implore Thee a thousand, thousand times, and pardon for all my sins; grant that this may be the day of my entire conversion, so that I may nevermore cease to love Thee. Prayer. Heart of my Jesus, Thou knowest what is wanting in me: Thou knowest that without Thee I can do nothing. Thou knowest my weakness: have [pg 252] pity on me, give me humility, purity of heart, love, and conformity to Thy holy will, strength against my bad habits, remission of my sins, and grace nevermore to commit them. Amen. Fourteenth Day. The Heart of Jesus Asks for Our Hearts. “My child, give Me thy heart.” Oh, let me print on my memory such a phrase of love! “My child!” Oh, how sweet it sounds when uttered by the lips of a God! He wishes to dwell in our hearts, not for a certain time, but forever; not as a guest only, but as its Master and its Lord. Jesus says the heart He asks of me is mine: “Give Me thy heart,” instead of claiming it as His right, as a matter of strictest obligation, since all that I am and have comes from Him. Oh, why should it be so difficult for me to yield up my heart to that sweet Lord Who so endearingly says, “My child, give Me thy heart”? The name of friend being insufficient to tell all Thy love, O dear Jesus, Thou dost employ the loving name of child to sweetly compel me to grant Thy fond request. Why is it, my Jesus, that Thou wishest my love? Why dost Thou, by every means, try to gain, by permission, that love which is
  • 42. Thine by every right and title? Oh, how many years Thou hast followed me, and I ever fled away from Thee! How hardened my heart was! It is true I have often returned to Thee for a little while, and Thou didst welcome me, and gave me Thy very self as my food. But too soon I fled away from Thee again. O my dearest Jesus, what favors and benefits I have abused! Pardon me, sweet Jesus: behold me at last here at Thy feet, never to leave Thee more. Take my heart, [pg 253] sweet Lord, and clasp it tightly to Thy Sacred Heart even to the hour of my death; never let me stray from Thee again. Prayer. O Sacred Heart of Jesus, with my whole soul I adore Thy impulses of goodness and mercy towards sinners, the effects of which I have most singularly experienced! Thy loving kindness is so desirous of mercy, that it threatens to show no mercy to him who is not merciful. And what mercy can I exercise towards my neighbor? What can be compared to those mercies I have received, and every day receive from Thee? O Heart of Jesus, loving fountain of mercy, teach me to know and worthily imitate Thy mercy. Amen. Fifteenth Day. The Heart of Jesus at the Hour of Death. The life of man passes away as a shadow. Time passes by as a swift flowing river, bearing on its bosom, onward to the grave, old and young, rich and poor, without any distinction. Oh, how happy is he who has laid up treasures in heaven, who has gathered for himself a hoard of merit before God. Happy, a thousand times happy, is he who in that dread hour can turn to God with all confidence, and feel God present in his heart. O my sweet Jesus, I will cling to the hope that Thou wilt forget all my past iniquities, and remember only Thy love. O merciful Jesus, who would not hope from Thee a mercy
  • 43. without end? It is true Thou art a God of justice and purity, and Thou seest in me sins beyond [pg 254] compare. But yet can it be that the same God, Who every instant of my life yearns to be near me, Who begs so pleadingly for my heart: can it be that He will condemn me to hell? Oh, no, tender Heart of my Jesus! it will never be so if I am truly sorry. My sweet Jesus will never abandon me, if with a truly repentant heart, I have recourse to Him. Why should I fear death when I look upon my God agonizing in the throes of death? His death was to help me in my dying hour, so that seeing the pain that I have inflicted I might bear mine without complaint. O sweet Heart of Jesus, I offer Thee my death. I am willing to suffer all the pains Thou wishest to send me. Let me suffer as much as Thou pleasest, only let me die clasped close to Thy loving Heart. Prayer. O Sacred Heart of Jesus, I adore the admirable impulses which made Thee all Thy life a victim of love, and led Thee to consummate it by a death of perfect love. Grant that, by Thy holy grace, my heart may become a living sacrifice, desiring only to be offered up and to offer up all things for Thy greater glory. Amen. Sixteenth Day. The Heart of Jesus for all Eternity. Eternity is Thine, O my God, and Thou givest it to Thy elect, that they may love Thee without any doubt or fear. Life is short: the last hour may toll for me when I least expect it. O thou city of God, when shall I behold thy beauty? Oh, the grace and blessing of dying at peace with Thee, great [pg 255] God; of closing our eyes in a holy death, to open them amid the splendors of eternal joy! Meanwhile Thou givest me a pledge of this bliss in the admirable Sacrament of the Altar. Where can love like Thine be found? Thou givest me Thy body and blood, Thy soul and divinity, as a pledge of
  • 44. eternal happiness. If then, Thou art wholly mine, can I be otherwise than wholly Thine? A thousand thanks to Thee, O my sweet Jesus, Who art so loving to me. Thou didst call me to Thy service, but I have responded weakly. I often disappointed and displeased Thee, yet, O Heart of my God, Thou art all mercy, and Thou wilt not turn away Thy face from Thy poor child, who casts herself down before Thee in contrition and shame. I will clasp Thy feet and remain there until Thou wilt once more say “thou art forgiven: go in peace.” Thou art just, O Lord; nevertheless be moved to pity me. I promise that I will always serve and love Thee, and avoid anything that could in any way separate me from Thee. Prayer. O Sacred Heart of Jesus, I adore Thy death of complete charity that placed Thee in the grave. Let me enter into the wound of Thy Heart, made by the lance, and may I die there for love of Thee. O heart of Mary, Mother of the Heart of Jesus, I have recourse to thee, that thou mayest speak to me in its stead. The Heart of Jesus and thine are but one, and what thou dost for me He will approve. [pg 256] Seventeenth Day. The Heart of Jesus Sorrowful unto Death. No one can be a true follower of Thee, O sweet Jesus, who travels by any road save that of Thy cross. For what trouble, what trial or affliction can we meet with, which has not been suffered by Thee? What were the agonies and pains Thy Heart bore for me! I am poor, but am I poorer than Thou, Who hadst not whereon to lay Thy
  • 45. head? I may be reviled and persecuted, but what are my persecutions in comparison to Thine, O my Jesus? Thou wast abandoned in Thy hour of agony even by Thy apostles, and betrayed into the hands of Thy enemies by one whom Thou hadst made Thy friend and companion. Thy whole life, O my Jesus, was one unbroken series of crosses, borne sweetly and patiently through love of me. Take courage, then, my soul, from the example of our dear Lord, and bear with noble strength all the trials and afflictions that may be sent to thee. I will keep my eyes fixed on Thee, cursed and buffeted, insulted and spat upon, scourged and crowned with thorns, a heavy cross laid upon Thy poor, mangled shoulders, and Thy dreadful crucifixion—all for love of me. Surely then, my God, the desire will grow in my heart to be ready and willing to make some return to Thee. Yet without Thy help, dear Jesus, I am utterly helpless to bear the little trials Thou so lovingly dost send me. Thou hast said clearly, “If any man will come after Me, let him deny himself, and take up his cross and follow Me.” And again, “Whosoever doth not carry his cross and come after Me, cannot be My disciple.” I understand then, dear Jesus, [pg 257] that if I wish to claim the name of follower of Thee, I must imitate Thee in carrying the cross. I throw myself into Thy loving arms, my sweet Jesus; do with me as Thou choosest, only give me strength and courage to abide with Thee forever. Prayer. O Sacred Heart of Jesus, I adore Thy impulses of charity, which made Thee wish to fill my heart and my soul with Thine, my spirit with Thy spirit, and to feed my body with Thy sacred flesh. I adore Thy divinity, concealed from my sight under the symbols of Thy mystery of love, and I beseech Thee, of Thy mercy, to use my soul, my mind, my heart, and my body as a temple consecrated to Thy honor. O Sacred Heart, I adore Thee as a victim sacrificed by the ascendancy and power of its own pure love. Amen.
  • 46. Eighteenth Day. O Heart of Jesus, Thou Art All Mine and I Am All Thine. Heart of my God, Thou art for me light, hope, heaven, eternity, all. I thank Thee, sweetest Jesus, for all Thy generosity towards Thy unworthy creature. I scarcely know myself when I feel Thee so near my heart in holy communion. Oh, let that love of Thine fill my heart; do not leave me till Thou grantest me the comfort I hope and claim of Thee. Lord, were I to ask of Thee temporal things, Thou mightest well refuse them, but I ask that which thou Thyself art pleased with —Thy holy love. I cannot love Thee unless Thou grantest me power to do so. Heart of my Jesus, where shall I find Thee if [pg 258] not where Thou art really present—in the Adorable Eucharist? Be Thou blessed a thousand times, my Jesus, Who hast provided so sweet a source of comfort for us poor exiles in this vale of tears. I behold Magdalen approach Thee, her heart full of shame, and I behold her leaving Thee, her heart full of peace and love. I see Augustine filled with the malice of sin, and all at once he becomes one of Thy brightest saints. Is, then, Thy power shortened? No, no, Thou never failest in coming to those who in lowliness of heart cry to Thee for help. Let me, then, O my sweet Jesus, show Thee all my sorrow and reveal to Thee all my need. If I had loved Thee as warmly as I have loved myself and my sins, I would have been a saint long ago. Now once more I return to Thee; let my hope never be confounded. Prayer. Be Thou blessed and praised forever, O Sacred Heart of Jesus, hidden under the mystical veil of the consecrated Host! Grant that I may worthily praise Thy ardent love. Thou art all in all to the saints in heaven. Give me Thy grace, that to me also Thy Sacred Heart may become all things, and that I may love and adore Thee in spirit and in truth. Amen.
  • 47. Nineteenth Day. God is Charity and He Who Lives in Charity Lives in God. The Heart of Jesus, a great saint has said, is the abode of every virtue, the source of every blessing; always filled with love for us, it is ever ready to receive, to shelter, and to comfort us. O [pg 259] you who are bending under the burden of sorrow or want, or who are forever struggling against temptation, fly to this sweet Heart; there you shall find that God is love, that He is ever attentive, and ever prepared to hear our slightest prayer. Oh, then, merciful Heart of my Jesus, be with me everywhere, even when I do not ask Thee, because then the peril is much greater. Stretch out Thy hand to me and draw me unto Thee. Thou hast told Magdalen that much was forgiven her because she had loved much; but was it not Thyself, sweet Jesus, that gave her such love? Give me the same love, my Jesus, and I shall love Thee as much. Ah, my Jesus, my heart is no longer mine—I give it to Thee without reserve. Let it live for Thee and Thee only; keep it, O Lord, and guard it as Thine own. If the angels rejoice over the returning of the repentant prodigal, wilt Thou not find greater delight in that prodigal's sincere desire of thanking Thee and loving Thee more and more? I resolve that my heart will henceforward bear Thee company by visiting Thee in Thy tabernacles, and by fidelity to prayer. Prayer. O Sacred Heart of Jesus, Who in a wonderful Sacrament hast left us a memorial of Thy Passion and a pledge of Thy love, grant us, I beseech Thee, grace so to venerate the mysteries of Thy body and blood, that we may ever feel within us the fruits of Thy redemption, Who livest and reignest with the Father, in the unity of the Holy Ghost, God forever and ever. Amen.
  • 48. [pg 260] Twentieth Day. The Sacred Heart is a Most Patient Rewarder. Thou, O sweet Jesus, possessest all wealth and bounty; we know that Thy riches are inexhaustible, and that Thy desire to impart them in Thy generosity is without limit and immeasurable. Thy rewards are always far greater than our merits. For a very slight service, Thou givest so amply that the greatness and depth of Thy rewards will be equal to their duration. Jesus, light of my life, shine on my poor, wretched soul, and plant in it the precious fruits of hatred of sin, deep contrition, and a firm, lasting resolution of amendment. Make this poor heart of mine gladly embrace and bear all the crosses that Thou mayest send me as aids to the attainment of my only end —that of abiding safe in Thy bright home forever, sweet Jesus, with Thee. However great the sufferings of this life may be, we can all have recourse to God, and obtain strength and courage in the thought that Thou, dear Lord, hast been the first of all great sufferers, and that Thou wilt never permit our troubles to exceed our limited strength. Oh, how sweetly and lovingly dost Thou receive the soul who, notwithstanding temptation and trials, hast always served Thee faithfully, and hast persevered to the end in Thy service! O my sweet Love, aid me by Thy grace to bear all afflictions with loving patience, so that I may one day receive my everlasting reward. Prayer. O Sacred Heart of Jesus, which from all time wast inflamed with love for the glory of Thy [pg 261] heavenly Father, and for our salvation, be Thou praised and blessed forever! Kindle in our hearts that divine fire Thou hast brought upon the earth, and grant that we may never,
  • 49. on our side, oppose it, but that by Thy holy grace it may ever burn there. Amen. Twenty-first Day. The Heart of Jesus will Glorify us in Heaven. My Jesus, when will that moment come, when having followed faithfully the path of crosses and tribulations, I shall hear Thee say, “Well done, good and faithful servant; because thou hast been faithful over a few things, I shall place thee over many. Enter thou into the joy of thy Lord.” Oh, the joy the soul will feel when, on reaching heaven, she shall find herself in the company of the angels and saints; of Mary, her good Mother, and shall recognize all her friends and relatives! What joy will it not be to find one's self safe in port, free from all danger, safe forever in the arms of God! The happiness of heaven once insured is ours forever more; it cannot be lost. There will be no more sorrow nor trouble. Thou, O my sweet Jesus, wilt wipe away all tears from our eyes, and with Thy sweet voice, Thou wilt gladden our hearts. My soul, enter into thyself, and reflect that thou wert made for this glory if thou wilt only struggle to the end. How foolish then is he, who for a brief passing moment of pleasure, would fling away all claim to that glory, which as St. Paul says, “Eye hath not seen nor ear heard, neither hath it entered into the heart of man what things God hath prepared for them that love Him.” Take courage, my soul, and [pg 262] do not murmur against those trifling tribulations, which God in His mercy sends for our own true weal. Most loving Jesus, give me grace to welcome them, to embrace them eagerly, and to bear them according to Thy good pleasure, and with sincere resignation to Thy holy will. O my sweet Jesus, grant that I may one day reach that joyful kingdom, there to unite my voice to those of the ever blest ones who, with ceaseless
  • 50. transports of joy, cry out before Thy throne, Holy, holy, holy, Lord God of hosts; heaven and earth are full of the glory of Thy majesty. Prayer. O Sacred Heart of Jesus, Victim of love, consecrated Altar where all sacrifices are completed, Thou art the glory of the Holy Trinity, the joy of the angels and all the blessed, and the unfailing hope of mortals. Be Thou the sole Master of the desires and affections of my heart. O Heart of Jesus, that lovest me so tenderly, make me love Thee fervently in this world, so that I may love Thee eternally in heaven. Amen. Twenty-second Day. The Heart of Jesus Opened. Jesus, even after His death, allowed His sacred side to be opened by a spear-thrust, in order that we might see with what good-will He had suffered, and how ardently He was inflamed with love of us, and with desire for our salvation. This opening of the side of Jesus, and the wonderful shedding of blood and water, should fill us with a sweet gladness, tempered with tears of sorrow for our [pg 263] evil. The only time in which we wounded not His Heart was that time in which we had not yet been furnished by nature with that dangerous weapon, our natural liberty, the origin of all our offences against God. He could have deprived us of that free will which has been the instrument by which we have offended Him so often; but no, He comes unto us with all love, disclosing to us all the sweetness of His kind Heart. O my Saviour, Thou never ceasest to renew Thy loving assaults! Thou didst wait on me, yearning to enfold me in Thy divine embrace. O peerless mercy of my Jesus' Heart, how can I ever repay Thee? Heart of my Jesus, I shall endeavor to prove my love for Thee by atoning as far as is in my power for the many insults offered Thee. I shall adore and love Thee to the utmost of my power, I shall
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