MGMT 475 Diagnosing and Formulating Strategic Change

The table on the next page summarizes the variables for an alignment analysis of Nice Spice, a company that packages spices and spice blends for spice marketing companies and retailers who want to offer their own brand of spices. Nice Spice does not market their own brand; they are what's called a co-packer. Other firms hire Nice Spice to blend and package the products the client firm sells.

In line with step 1 of the process described in this lesson's reading, the table provides the main conclusions about the firm's strengths (sources of real or potential competitive advantage) and their intended competitive strategy. It also gives the conclusions about the demands of the competitive environment in which Nice Spice competes (i.e. Key Success Factors (KSF) and Drivers of Change (DOC)).

Your task is to apply the diagnosis process detailed in the lesson to the data from this table and answer the questions/address the tasks on the following page.

Write/copy each numbered question and write your answer underneath.

Sources of Competitive Advantage	Competitive Strategy Choices	Key Success Factors and Drivers of Change
Resource: Strong relationships with regional grocery chains	Product focus: Co-packing services for sellers of spices and spice blends	(Note: Rivalry and Buyer Power are determined to be the two strongest forces and they lead to the KSFs below)
Resource: New facility with open capacity for production	Target customers: Spice marketers; grocery stores; food service; food processors	KSF - Create switching costs for buyers
Capability: Ability to consult with clients to develop custom blends of spices	Geographic scope: National, with emphasis on Northeast and Mid Atlantic region	KSF - Differentiate service from rivals
Capability: Ability to design and produce custom branded labeling	Value Proposition: Offer a wide range of spices and types of packaging; can service any range of order volume; can help smaller clients with developing custom blends and custom labeling/branding materials.	KSF - Lock in large buyers; build loyalty and close relationships with major customers
Capability: Ability to perform packaging runs across a variety of sizes and types of packages	Business Model: B2B co-packing; full-service blending, packaging, labeling, shipping to retailers. Order-by-order transactions handled with one-on-one processing (phone).	DOC - increasing interest in/use of exotic and organic spices
		DOC - increasing consumer purchases of food/grocery items via the internet.

1. (Evaluating S-E alignment). Do you identify any problems with the alignment between the firm's competitive strategy and the demands of the external environment? That is, is there anything wrong or missing from the firm's competitive strategy that will inhibit their ability to be successful in their industry?

IF YES,

Specify what aspect(s) of their competitive strategy is(are) out of alignment with what aspect(s) of the external environment. Study the examples from the reading to effectively state your conclusions.

IF NO,

Argue/explain why you conclude their competitive strategy is well aligned to the demands of their competitive environment.

1. (Evaluating R/C-S alignment). Do you identify any problems with the alignment between their resource and capability strengths (sources of competitive advantage and their intended competitive strategy? That is, are there weak or missing critical resources or capabilities necessary to be successful with their competitive strategy?

IF YES,

Specify what resource(s) or capability(ies) is(are) weak or missing and which aspect(s) of their competitive strategy those strategic assets are needed for effective execution. Study the examples from the reading to effectively state your conclusions.

IF NO,

What resources and capabilities should the firm focus on either defending or enhancing to enhance the results they achieve through their competitive strategy? Explain how improvement in each resource or capability identified will increase or create new competitive advantages.

1. (Prioritize and select ONE misalignment to be addressed).

Evaluate the identified strategic alignment issues you identified in 1 and 2 above.

1. Prioritize and describe the ONE strategic alignment issue from the steps above that you believe, if addressed, will do the most to improve the firm's competitive advantage and produce the greatest improvement in their long-term performance.

1. (Recommend HOW that change should be executed):
   1. Describe three different alternatives available to the firm to remedy the alignment issue you selected in #3.
   2. Using the criteria from the lesson reading, evaluate the three alternatives and select the one alternative the firm should pursue to remedy the alignment issue. Show (via a table or chart) or argue how the criteria were applied to justify your recommendation.
   3. State your final recommendation. Look at the example in the reading for more help in how to best present your recommendation.