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business
strategic management

Questions and Answers of Strategic Management

=+1. Draw a diagram incorporating the environmental influences and stakeholders for any pub, discotheque or nightclub with which you are familiar.Do the same for London Zoo (Chapter 2).Zoological
=+2. Examine eBay in terms of scenario planning.What could possibly happen to affect eBay in the future?
=+1. Use the eBay web site to track the bidding for a product that interests you. You could, if you wished, sell something via eBay as an alternative. Why do you think this simple business concept
=+■ Do they lead to clearer understanding which informs future decisions and actions, while winning the commitment of everyone involved?
=+■ What has been left out? – in effect, the extent of the comprehensiveness and the absence of key omissions – and
=+■ Given the (changing) demands of our existing markets, what changes do we need to make to our products, processes and services?
=+■ What new markets and market segments might be suitable for our existing strengths and capabilities?
=+■ How can we best exploit our strengths in relation to our opportunities?
=+■ Similarly, can we neutralize critical threats or even build them into new opportunities?
=+■ How can we either neutralize critical weaknesses or convert them into strengths?
=+1. Tesco and Wal-Mart have been investing more aggressively and now enjoy a higher margin cushion. Is there a way back for Sainsbury’s?
=+3. Did the acquisitions make sense in relation to its competencies and capabilities?
=+2. What is the nature of its strategic position?
=+1. How does Flying Flowers add value?
=+3. In the end, who has been best served by the outcome – shareholders, employees, customers?
=+… do you support the actions of Morrison and Green?
=+2. Use the Internet to ascertain what did happen
=+1. If you were Sir Ken Morrison, what would your reaction to the ruling have been?
=+3. Would some regulation be more sensible than full deregulation?
=+2. Are governments too readily impressed by the seductive cost savings for passengers?
=+1. Why, then, deregulate?
=+What important external factors affect competition?
=+What exit barriers exist (if any)?
=+What experience/learning curve effects are important?
=+What economies of scale are present?
=+What entry barriers exist?
=+What are the prevailing competitive strategies?
=+What are the relative powers of suppliers? Buyers? Competitors?
=+Is the industry growing or contracting?
=+To what degree are products substitutes?
=+How concentrated is the industry?
=+How many firms are in the industry, and what size are they?
=+2. Using LVMH as a starting point, look into the barriers to entry in the perfumes industry.Other companies to track are Estée Lauder, L’Oréal and Unilever. How successful have these leading
=+1. Check the progress of Netflix and evaluate how this entrepreneurial business dealt with the threat from Wal-Mart.
=+2. How have your own musical tastes and listening habits been changing in recent years?
=+1. What future changes do you foresee – and will these have a predominantly positive or negative impact on (a) consumers and (b) the record companies?
=+ The public will benefit in terms of prices, but is the situation more complex?
=+3. Competition authorities in the UK have recommended that resale price maintenance(where manufacturers dictate retail prices) for over the counter non-prescription drugs should be abolished. If
=+2. What approach would you suggest any future British government should take?
=+1. How might the UK ensure it retains a leading position in this dynamic, turbulent but very important global industry?
=+■ construct an experience curve and explain its significance.
=+■ carry out scenario planning
=+■ conduct a SWOT analysis
=+■ appreciate the significance of effective strategic positioning and adding value
=+■ describe Porter’s five forces model for analysing the attractiveness of an industry
=+■ discuss the organization as an open system and (using a PEST analysis) assess the impact of a number of environmental forces
=+■ summarize the important aspects of government policy on competition and its regulation
=+■ identify how changes might be forecast
=+■ explain issues of complexity, dynamism and uncertainty in relation to the organization’s environment
=+■ understand that opportunity-driven strategy depends upon an ability to manage, and to manage in, the business environment
=+How difficult might it be to generate the potential synergy in question?
=+2. Is the ‘luxury brand’ logic offered by LVMH a genuine synergy opportunity?
=+Were there any downside risks that you can see?
=+1. In September 2004 Sony acquired the MGM film library. What exactly did Sony buy and what benefits did Sony executives believed would accrue?Would this strengthen synergy?
=+Questions on the environmental influences discussed are to be found in later chapters.
=+1. Synergy has been summarized as the ‘2 + 2 = 5’effect. Can you think of instances from your own experiences (maybe in a sporting context) where it has been in evidence?
=+3. Do they appear robust enough to compensate for any long-term decline in the breakfast cereal market?
=+2. What are the non-cereal products?
=+Do they all have directly competing brand alternatives? To what extent are they aimed at different market segments?
=+1. Visit a supermarket and look for the various Kellogg products. How many different breakfast cereal products can you spot?
=+■ define synergy and explain its significance in both competitive and corporate strategy
=+■ explain why thinking is vital in strategy creation and implementation
=+■ explain the difference between the market- or opportunity-driven, resource-based and competitor-influenced views of strategy, appreciate the three views are frequently integrated in strategy
=+■ Does the organization have the requisite financial resources?
=+■ Does the organization have the necessary competencies and capabilities?
=+Is there a market opportunity?
=+■ Do the potential benefits from S and T justify the inherent risks and uncertainties?
=+■ Are O and S – the important ends and means – internally consistent? Do they make the most effective use of resources and capabilities?
=+■ Are M, O and S externally consistent and do they fit environmental and stakeholder needs?
=+■ Are M and O explicit, widely appreciated and shared?
=+Membership now exceeds 3 million but costs are rising faster than revenue. In 2003/4 profits amounted to £4 million from a turnover of £300 million. To maintain its E-V-R, what should the
=+■ be aware of the existence of a number of useful strategic analysis frameworks.
=+■ explain why the strategic challenge for organizations concerns decisions about content and process within the context of a set of important issues and dilemmas
=+■ explain what is meant by E–V–R congruency
=+■ appreciate the significance of adding value, core competencies, strategic capabilities and strategic architecture
=+■ explain the term competitive advantage
=+■ define key success factors and give examples of these
=+■ understand the importance of strategic positioning and how two important approaches to strategy – market-driven and resource-based – impact upon it
=+■ appreciate how leadership, culture and values are at the heart of strategic decisionmaking
=+5. In view of the findings after the Herald of Free Enterprise disaster at Zeebrugge in March 1987 and the Estonia disaster in 1994, how does a company such as P&O (the owners of the Herald)
=+4. Have the objectives (in particular the order of priorities) of the Natural History Museum changed since the introduction (and later abandonment) of compulsory admission charges in April 1987?
=+how do you view the fact that football clubs generally invest far more money in players (wages and transfer fees) than they do in their grounds (amenities and safety)?
=+(c) In view of the comments about social responsibility,
=+(b) Which other clubs have followed Tottenham? Have they chosen similar or different strategies? How have they performed as businesses?
=+(a) Research the strategies followed by Tottenham Hotspur plc since 1983. Do you believe that the interests of a plc and a professional football club are compatible or inevitably conflicting?
=+3. When Tottenham Hotspur became the first English Football League club with a stock exchange listing(in 1983) the issue prospectus said: ‘The Directors intend to ensure that the Club remains one
=+2. From the FT Fast Track web site, pick a rapidly growing business of your choice from within the top ten businesses listed. In 400 words or less can you describe the business model of that
=+Then find out what happened to the business. Did the company get its priorities wrong and was this why the business was sold to Scottish and Newcastle. Note: Prior to the acquisition, members of
=+1. First consider how the objectives of HP Bulmer Holdings, detailed in Box 2.1, might be ranked in order of priority. Is there a difference between an ideal ranking and the likely ranking in
=+3. What key issues do you believe should be incorporated in a company statement on ethics?
=+2. Think of any organization with which you have personal experience. Do you believe that profit (or cash in the case of a non-profit organization) is seen as a means or an end by the key
=+1. Using the Ben and Jerry’s case (or another case from Chapter 1 if you prefer) clarify what you think the business model is.
=+2. If not, what else do you think it should do?
=+1. Do you think Nike is sufficiently responsible and ethical?
=+2. Do you know whether the strategy is still in place?
=+1. Did it make sense for the Co-operative Bank to trade off corporate clients for new personal accounts in this way?
=+3. If you were in charge (and remembering the constraints) what strategies would you recommend?
=+2. Who are the major stakeholders, and how important are they?
=+1. What should the objectives of London Zoo be?
=+3. Has the National Theatre adopted a policy of putting on more commercial productions in recent years?

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