Strategic Management Case Studies Marketing Essay

Strategic Management Case Studies Marketing Essay 1.1 What are the key differences between the two accounts of Hondas entry into the US market? 1The first case is narrated by The Harvard Business School based on the Boston consulting (BCG) Report whereas the second case, An Insiders Account of Hondas Entry into the US Market is a direct narration recorded by Richard Pascale. The BCG report explains on the Honda Company as a matured business and a mix of its competitors in the US. As affirmed in the case; Hondas competitors were Harley-Davidson, BSA, Triumph, Norton, and Moto-Guzzi. Whereas, the second case enlightens how the company initiated from scratch and its journey through the difficult times. Richard Pascales article explains the challenges that the company went through during its commencement, such as difficulty in getting funds; treatment of the motorcycle dealers was discourteous, while in the BCG article no challenges were mentioned. The BCG report emphasizes more on the Hondas in-depth research and development department for instance having more staff; as said in the article, the RD was staffed with 700 designers/engineers, increase in the production level as a result more investment in the RD department. While the second case doesnt explain anything with regard to the research and development since it is taking the business at an initiative level. The BCG report highlights target market in general whereas the second article explains target market in details as said in the case, the company chose Los Angeles as the location whereby their target market consisted of second and third generation of Japanese community. Richard Pascales article clearly identified the companys products offered to the market as stated in the article; the products were 50cc, 125cc, 250cc and 350cc machines while in the first essay explains the general overview of the companys products. 1.2 REFERENCE AND BIBLIOGRAPHY: Reference: Number Reference list Reference type 1 Herbert Rotters former Goldwing page former Yamaha Virago 1100 page, Personal Homepage, Honda Motorcycle 350 CB [Image] http://www.porzellanpuppen.at/hpbikes/bikeenglish.htm Electronic Source Cover Page Image 2 Greenwich University; Course Work: The Honda Effect, Case Study Scenario. Article Bibliography: http://www.google.com CASE STUDY 2- LAURA ASHLEY 2 2.1 Map Laura Ashleys stakeholders using a power/interest matrix. 3Stakeholders are individuals, groups or organizations who are affected directly or indirectly by organizations goals, objectives, actions and policies. 4Stakeholder Analysis is a tool used to recognize the stakeholders and investigate their needs as they are the ones who are concerned with the actions taking place within the organization. The aim of this analysis is to identify the stakeholders interests, concerns and manage relationships with them. The method used to access stakeholders is Mendelows Stakeholder Matrix which has two dimensions; Power and Interest with four quadrants.  [5]  Interest talks about the stakeholders concern towards a project whereas power talks about the control over the project. Power A Minimal Effort B Keep Informed C Keep Satisfied D Key Players Low High Figure 1 Low High Interest Minimal Effort people who need to be observed without boring them with unnecessary communication. Keep Informed people who need to be informed sufficiently, talked and make sure that no major issues take place. They can help with the developing the project details. Keep Satisfied people who need to be well satisfied with nothing much that would bore them whilst comprehending of the assignment. Key Player- people who must be associated and satisfied with the efforts made. 6Laura Ashleys stakeholders are Analysts, London Stock Exchange Market, Malayan United Industries (MUI) shareholder Dr. Khoo, Customers, Government and Suppliers. It is essential that the stakeholder management should be conducted so as to know each stakeholders level of power and interest along with their impact on the company. However it is sometimes difficult to locate all companys stakeholders in one frame as in the case of Laura Ashley. Beneath is the table, of the Stakeholder Map showing the strategies that are applied for Laura Ashley. Stakeholders Power Interest Strategy Analysts London Stock Exchange Market Dr. Khoo High High Key Players Customers High High Key players Government High High Key players Suppliers High High Key players Table 1 Below is the Power/ Interest matrix showing Laura Ashleys Stakeholders. Power A Minimal Effort B Keep Informed C Keep Satisfied D Key Players Dr. Khoo Customers Government Suppliers Low High Low High Figure 2 Interest 2.2 REFERENCE AND BIBLIOGRAPHY: Reference: Number Reference list Reference type 3 Vintage Verity Adoring all things vintage, retro and downright quirky Laura Ashley logo [Image] http://vintageverity.wordpress.com/2008/02/27/cath-kidson-v-laura-ashley/ Electronic Source Cover Page Image 4 Business Dictionary, An Ask.com Service, Definition of Stakeholder http://www.businessdictionary.com/definition/stakeholder.html Johnson et al, 2009, Fundamentals of Strategy: Definition of Stakeholder, 1st edn, page 90. Electronic Dictionary Book 5 Wikipedia, October 16, 2008, Stakeholder Analysis, Wikipedia Encyclopedia, http://en.wikipedia.org/wiki/Stakeholder_analysis BaBou, March 9th, 2008, Leadership Champions, What is Stakeholder Analysis? Part 1: Definition and aim of Stakeholder Analysis, http://leadershipchamps.wordpress.com/2008/03/09/what-is-stakeholder-analysis Electronic Encyclopedia Electronic Source 6 Mind Tools Essential Skills for an excellent career, Winning Support for your Projects, Stakeholder Analysis: Mendelows Stakeholder Matrix, http://www.mindtools.com/pages/article/newPPM_07.htm BaBou, March 10th, 2008, Leadership Champions, What is Stakeholder Analysis? Part 2: Mendelows Stakeholder Matrix, http://leadershipchamps.wordpress.com/2008/03/09/what-is-stakeholder-analysis/ Electronic Source Electronic Source 7 Greenwich University; Course Work: Laura Ashley, Case Study Scenario Article Bibliography: http://www.google.com CASE STUDY 3- APPLYING A BALANCED SCORECARD 7 3.1 What arguments would you use to persuade an organization to adopt the Balanced Scorecard approach? 8A Balanced Scorecard (BSC) is a tool that is used to measure a companys business activities in relation to its vision along with its strategies. It provides managers a complete knowledge of the business performance. 9Figure 1 Usually when organizations measure performance, it is the financial area that is given more attention while the rest of the aspects are not taken much into consideration. It is therefore important that organizations should pursue in using the balanced scorecard.  [10]  Below are some of the benefits which the organizations will gain. One of them being a source of direction since it guides the management as well as helps identify what needs to be measured in order to accomplish organizational goals which will in return act as a competitive advantage for the firm. With Balanced Scorecard, firms are able to determine both financial as well as non-financial measures. As said in the case study, the balance scorecard was to combine three new sets of measures with the customary financial ones, embracing the customer, learning and growth, and internal issues such as quality improvement and cost control. Balanced scorecard allows firms to develop as well as expand so as to align new organizational strategies, as said by Mr. Hofmeister in the case study, it gives us better and better alignment (between all operating units) and focuses attention on whats important and on results. Through the balanced scorecard, organizations are able to the compare past experience in order to improve its performance which will help predict what will happen in the future. Although the growth of practicing balanced scorecard is slow, however many organizations have already accepted and are applying it. 3.2 REFERENCE AND BIBLIOGRAPHY: Number Reference list Reference type 8 Businessballs.com, Balanced Scorecard; Kaplan and Nortons organizational performance management tool Balance Scorecard [Image] http://www.businessballs.com/balanced_scorecard.htm Electronic Source 9 Papaers4You, Guide on How to write University Essays, Coursework, Assignments and Dissertations: Definition of Balanced Scorecard, 2002-2007, http://university-essays.tripod.com/balanced_scorecard.html Business Knowledge Source, What is a Balanced Scorecard, and what does it have to do with manufacturing? Definition of Balanced Scorecard, http://www.businessknowledgesource.com/manufacturing/what_is_a_balanced_scorecard_and_what_does_it_have_to_do_with_manufacturing_023647.html Ali, Md. Mohobbot, The Balanced Scorecard (BSC) A Critical Analysis, http://eprints.lib.okayama-u.ac.jp/1391/1/18_0219_0232.pdf Electronic Source Article Electronic Source Electronic Source PDF DOC 10 Queensland Government, Southbank Institute of Technology, Strategic goals: Balanced Scorecard Framework [Image] http://www.southbank.edu.au/site/about/corporate/mission.asp Electronic Source 11 Balboa, Jun 26, 2005. ECheat; Porters Five Forces, Value chain, Balanced: Critically evaluation of Porters five forces, Value Chain Analysis, Balanced Scorecard Benefits of Balanced Scorecard. http://www.echeat.com/essay.php?t=27147 Business Knowledge Source, What is a Balanced Scorecard, and what does it have to do with manufacturing? Benefits of Balanced Scorecard, http://www.businessknowledgesource.com/manufacturing/what_is_a_balanced_scorecard_and_what_does_it_have_to_do_with_manufacturing_023647.html Partnering to Success, The Balanced Scorecard: Benefits from using the Balanced Scorecard, http://www.thebalancedscorecard.com/benefits_bsc.htm Ali, Md. Mohobbot, The Balanced Scorecard (BSC) A Critical Analysis: Benefits of Balanced Scorecard http://eprints.lib.okayama-u.ac.jp/1391/1/18_0219_0232.pdf Beverly Dianne Calhoun, Oct 19, 2004, Using the Balanced Scorecard to Determine Corporate Information Needs: Benefits of Balanced Scorecard http://www.designbydi.com/documents/BalScrCrd.pdf Greenwich University; Course Work: Appling a Balanced Scorecard, Case Study Scenario Electronic Source Article Electronic Source Article Electronic Source Article Electronic Source PDF DOC Electronic Source PDF DOC ArticleReference: CASE STUDY 4- FIAT: REBIRTH OF A CARMAKER 11 4.1 Using the information in the case study undertake a SWOT analysis of Fiat at the time of Sergio Marchionnes appointment and suggest how a SWOT analysis in 2008 may differ. 12SWOT analysis is used for scanning an organization (internal factors) as well as its environment (external factors). The internal factors include strengths(S) and weaknesses (W) while the external factors include opportunity (O) and threats (T). 13SWOT ANALYSIS FOR FIAT GROUP AUTOMOBILES: Below is a table showing SWOT Analysis before the year 2004. Strengths weaknesses Fiat offered differentiated products. That is; it provides the market with a variety of cars. The companys hierarchy line was long making it more bureaucratic. Fiat cars were viewed as a quality brand. It lacked well developed core competence lending to ugly and unstylish cars. The company was well reputed. It needed to maintain its debts. Ability of manufacturing small cars. Licensing agreement with Bosch for financial support in exchange with the diesel technology that Fiat had. opportunities Threats Fiat had a chance of wining the market share from rivals. Competition with existing automobile firms. The market is ready to accept the new and stylish cars. Partnership agreement with General Motors for giving it them the right to sell its cars. Risk of employing new members to the Fiat family. Table 1 Below is a table showing SWOT Analysis after the year 2004. Strengths weaknesses Distinctive competence of designing low cost equivalent four-cylinder engine. Limited resources. Using technology by means of computer for simulation. Lack of knowledge with regard to entering new markets. For example the Chinese market. Producing new and stylish car designs. Drop in the market share. Competitive advantage of cutting down time to reach the market. Declined performance of the company since Fiat only sold 2000 cars in china, India and Russia. Fiats cars are exploited to have relative fuel efficiency. It is the first carmaker to put forward diesel engines that met the so-called Euro 5 fuel standards. opportunities Threats Winning the market share. Rivalry of potential new competitors. Expanding product line with new and innovative stylish cars. Rivalry with existing competitors such as VW and PSA Peugeot Citroen. Entering into joint venture for instance, with companies like SAIC (China) and TATA (India). Adverse demographic. For insistence Russian market; is it ready to accept the cars offered to them? Entering new geographic markets such as Brazilian, China, India and Russia. Challenge in controlling quality of the car brand. Fiat cars expect to have lower average emissions than any other competitor due to its fuel efficiency. Risk of employing new members to the Fiat family. Table 2 Comparing SWOT analysis before and after 2004: The company is able to increase its growth by entering new and emergent markets. As said, Fiat is expecting to have its sales from different areas such as outside Western Europe, China, India, Russia and soon overtake Germany. Fiat will also be able to increase sales along with its market share whereas before 2004, its sales were dropped; market share had declined and a lot of debt was to be paid. With introduction of technology, new stylish cars were offered to the market with reducing time at development area so as to start the production as soon as possible. The firm was able to rectify mistakes that it made earlier. For example the licensing agreement with Bosch in exchange with the diesel technology that Fiat had. Below is a table showing a comparison between the two SWOT Analyses. 2004 2008 Sales were dropped, Market share declined and a lot of debt was pending to be paid. Sales along with its market share increased. Fiats core competence had ceased. Developed new competences such as designing low cost equivalent four-cylinder engine, usage of technology, cutting down time to reach the market, relative fuel efficiency, put forward diesel engines. Mistake of licensing with other companies in order to support their finances in exchange with their ability. The firm will not repeat the same mistake of licensing; hence it will protect its competitive advantages. The companys hierarchy line was long making it more bureaucratic. The hierarchy line had become shorter making it less bureaucratic allowing the process to be smooth. Table 3 By 2008, most of the weaknesses had been reduced due to the rearrangement of the organizational system however, at the same time; a lot of improvement has been made. Therefore in order to develop, it is essential that the company takes many risks, as done by the Fiat Group Automobiles, since it is through this, the company has reached where it is now. 4.2 REFERENCE AND BIBLIOGRAPHY: Reference: Number Reference list Reference type 12 Legendarydevils, Thread: 140 Fiat Cars Wallpapers, Fiat Cars Image http://www.legendarydevils.com/english/2173933-140-fiat-cars-wallpapers.html Electronic Source Cover Page Image 13 Quick MBA Knowledge to Power your Business, Strategic Management: Defining SWOT Analysis. http://www.quickmba.com/strategy/swot/ Marketing Teacher Est 2000, Lesson: SWOT Analysis, Definition of SWOT analysis. http://www.marketingteacher.com/Lessons/lesson_swot.htm Electronic Source Electronic Source 14 Greenwich University; Course Work: Fiat: Rebirth of a carmaker, Case Study Scenario. Tutors notes on SWOT Analysis Article Bibliography: http://www.google.com CASE STUDY 5- THE PROFITABILITY OF UK RETAILERS 14 5.1 Use the industry analysis framework to explain the profitability of the main supermarket chains in the UK. Analyzing profitability of any Industry is done through The Five Forces Model that was put forward by Michael Porter. Beneath is a figure of the model. 15Figure 1 16Below is an industrial analysis showing the profitability of the main UK supermarket chains. SUPPLIERS Bargaining power of the suppliers is Low since British firms have command over their suppliers. As said in the case; British firms are more experienced and more skillful in their buying power to extract better terms from suppliers. BUYERS Customers bargaining power is also Low since the supermarket groups have control over them. As said in the case; The UK groups exert massive buying power by utilizing the oligopoly power to impose a higher-than-normal price on their customers. RIVALRY The competition between existing supermarkets is extremely high, due to the fact that there are many groups within this industry which have similar products / services. SUBSTITUTES Threat of substitutes is high as customers can switch to other shops instead of going to the supermarkets since they might be charged with a higher price as compared to other shops providing similar products at a lower price. Secondly, the suppliers could also switch to other firms rather than the British supermarkets due to the buying power exerted by the supermarkets. THREATS OF NEW ENTRANTS With lots of competition, threat of new entrants is relatively high, since the industry is more profitable in UK. At the same time, UK groups have barriers that cause difficulty for new competitors to enter the industry. Some of them being: Application of IT in their logistics, Lower Labor costs and High own-label penetration. Number Reference list Reference type 15 Carpenter, M, Bauer, T, Erdogan, B, Flatworld Knowledge, Principles of Management; Developing Strategy through External Analysis Porters Five Forces Analysis of Market Structure. [Image] http://www.flatworldknowledge.com/pub/1.0/principles-management/29047#web-29047 Electronic Source Cover Page Image 16 BUS 2700 Business Driven Information Technology, chapter 2: Identifying Competitive Advantages; The Five Forces Model Evaluating Business Segments. The Five Forces Model. [Image] http://bus2700-spring08.blogspot.com/2008/01/chapter-two-identifying-competitive.html Electronic Source Image 17 Greenwich University; Course Work: The Profitability of UK Retailers Case Study Scenario. Tutors notes on Industrial Analysis: Five Forces Model Article 5.2 REFERENCE AND BIBLIOGRAPHY: Reference: Bibliography: http://www.google.com CASE STUDY 6- THE NOVOTEL VALUE CHAIN 17 6.1 Use the VRIO framework to evaluate Novotels capabilities. 18In order to have a sustained competitive advantage the firm needs to evaluate its resources and capabilities done through the VRIO framework. Below is a VRIO framework for the Novotel hotel. CAPABILITIES V R I O Implications for Competitiveness Customer service delivery; such as hospitality, greetings, warmth. Yes No No No Competitive parity Marketing techniques through distribution systems. Yes Yes/ No No No Temporary competitive advantage Firm infrastructure and Procurement through good relationships with suppliers. Yes Yes Yes No Sustainable competitive advantage Retention of Staff through staff exchange. Yes Yes No No Temporary competitive advantage Standardized system throughout the locations worldwide. Yes Yes No No Temporary competitive advantage Multi-skilled Staff. Yes Yes Yes Yes Sustainable competitive advantage Table 1 Service design is one of the key resources that Novotel has, making it valuable. It includes the layout of the hotel allowing the customers to easily access the public spaces such as bars and restaurants. Distribution systems are attained by good relationships with distributors. Novotel has achieved to operate in both individual and corporate business as well as leisure markets. Firm infrastructure and Procurement Novotels relationships with partners develop a strong bond creating a valuable asset to the organization. Its efficiency allows delivering both economies of scale and scope making it rare and difficult to imitate. Staff retention is the most essential resource required in this industry. To retain and motivate, is a challenge Novotel was competent to do, thus reducing staff turnover through staff exchanges resulting to value creation. Standardization in all the locations worldwide is another benefit that Novotel has; allowing the staff to understand basic functions. This technique is valued and rare. Novotels Multi-skilled staff creates an exceptional resource and is most valued. The skills given to them during the training makes them capable of doing multiple tasks. Most of the capabilities conclude to be temporary competitive, since the industry is such that many competitors can imitate most of the capabilities and resources that the Novotel hotel has, directly or indirectly. Hence Novotels most sustainable competitive advantages are obtaining and retaining its multi-skilled staff that can work flexibly as well as having good relationships with suppliers. Number Reference list Reference type 18 tophotelsphuket.com, Top Hotels in Phuket, Thailand, Novotel Hotels and Resorts Novotel logo [Image] http://www.tophotelsphuket.com/hotels/novotel-hotels-phuket.htm Electronic Source Cover Page Image 19 Applying the VRIO Framework: An Overview; VRIO Analysis. http://academic.udayton.edu/DianeSullivan/Other%20Helpful%20Files/Applying%20the%20VRIO%20Framework.doc Abraham Z. et al, Pacific Lutheran University School of Business, Vodafone Strategic Evaluation; VRIO Analysis, 2007. http://www.plu.edu/~vennataj/doc/vodafone.doc Scott Gallagher, 2004; Why do firm performance differ? Internal Analysis VRIO Analysis; Updated on 1st Nov 2007, http://falcon.jmu.edu/~gallagsr/WDFPD-Internal.pdf Greenwich University; Course Work: The Novotel Value Chain Case Study Scenario Tutors notes on: VRIO Analysis Electronic Source Word Doc. Electronic Source Word Doc. Electronic Source PDF Doc Article 6.2 REFERENCE AND BIBLIOGRAPHY: Reference: Bibliography: http://www.google.com CASE STUDY 7- THE LEVISS PERSONAL PAIR PROPOSAL 19 7.1 What position in the market does Levis occupy (use the strategy clock to characterize its position)? 20Bowman derived the strategic clock into four quadrants, having eight dimensions namely; No fill, Low price strategy, Hybrid, Differentiation, Focused differentiation, Increased price / Standard value, Increased price / Low value, Standard price/ Low value. The clock is compared in terms of Perceived Price and Perceived Benefit or Added Value as shown below. 21Figure 1 By using the strategic clock, Levis business environment is positioned to be in the fourth category which is the Differentiation. This is because; Levis offers a variety of products that have added value as well as a premium price slightly higher than the normal in order to satisfy the consumers needs. Levis products have Quality, Brand Image and Product Design and as a result creates Price premium, Customer Loyalty, giving the company a competitive advantage against its competitors. Due to Levis brand recognition and loyalty, its price offered is also slightly higher than its rivals therefore prevents itself from entering the price-based competition. As said in the case; Due to brand recognition and loyalty they did not enter into price based competition thus controlling reasonable price premium Levis also provides a wide range of products such as pants, shorts, skirts, jackets, and outwear. As said in the case; while blue jeans remain the companys mainstay, the San Francisco based company also sells pants made of corduroy, twill and various other fabrics as well as shorts, skirts, jackets, and outwear. With a premium price, along with its strong brand name, Levis has been able to position itself in the differentiation category, resulting into value-added products, hence gaining higher profit margins. 7.2 REFERENCE AND BIBLIOGRAPHY: Reference: Number Reference list Reference type 20 Feed the Interns A Daily Bite, Thursday, August 12th, 2010, Levis arent just for dads anymore?; Levis Logo [Image] http://feedtheinternsblog.blogspot.com/ Electronic Source Cover Page Image 21 Dagmar Recklies, April 2001, Literature by: David Faulkner and Cliff Bowman, The Management.de The Essence of Competitive Strategy, The Strategic Clock Strategies on the basis of price and value: Differentiation strategy. http://www.themanagement.de/ressources/Strategy%20Clock.htm Strategy Explorers, Bases of Competitive Advantage: The Strategy Clock http://www.strategyexplorers.com/whitepapers/Do-you-have-a-competitive-strategy.pdf Zanthus Corp. 2007; Business Strategy Bowman, C. and Faulkner, D.; Competitive and Corporate Strategy; Irwin; 1996 Bowman Strategy Clock http://www.zanthus.com/databank/strategy/business_strategy.php?aspr Greenwich University; Course Work: The Levis Personal Pair Proposal Case Study Scenario. Tutors notes on: VRIO Analysis Electronic Source- Article Electronic Source- PDF Doc Electronic Source- Article Article 22 Zanthus Corp. 2007; Business Strategy Bowman, C. and Faulkner, D.; Competitive and Corporate Strategy; Irwin; 1996 -Bowman Strategy Clock:[Image] http://www.zanthus.com/databank/strategy/business_strategy.php?aspr Electronic Source- Article Bibliography: http://www.google.com CASE STUDY 8- THE VIRGIN GROUP 22 8.1 Does the virgin Group, as a corporate parent, add value to its businesses? If so how? 23According to Johnson et al, Corporate parenting is the level of management above that of the business units, and therefore without direct interaction with buyers and competitors. (Johnson et al, 2009, p.172). Below are some of the areas through which the Virgin Group corporate parent adds value to its businesses. First the corporate parent has added value in establishing a strong brand name such as being a consumers champion through which barriers to entry could be overcome. Virgin is a reputed and well known brand in the market, thus enabling it to expand itself in static markets. In addition, the Virgin Group has a good resource management team. Branson together with his expertise and experienced team, review business proposals every week, out of which, appropriate prospects that match with the Virgin brand are then discussed. This enables Virgin to identify industries as well as institutionalized markets in which to enter. Moreover, the corporate parent assists in reducing organizational risks by entering into many joint ventures. Through these ventures Virgin, is able to penetrate new or untapped feasible markets allowing it attain low costs as well as expansion. Furthermore, Virgin Groups management style and leadership system is decentralized providing its managers with flexibility in decision making. Branson is mostly involved when it comes to marketing and promotion. In terms of innovation, the brand name itself tends to invite like minded partners to venture new m