Question
Using thesix-stepanalysisof evaluating the strategies of diversified companies found in Chapter 8 on pages 162-173 in the textbook:ESSENTIALS OF STRATEGIC MANAGEMENT: THE QUEST FOR COMPETITIVE
Using thesix-stepanalysisof evaluating the strategies of diversified companies found in Chapter 8 on pages 162-173in the textbook:ESSENTIALS OF STRATEGIC MANAGEMENT: THE QUEST FOR COMPETITIVE ADVANTAGE7e)
For thefirststep, evaluate the attractiveness of the Apple industry. For example, Disney might ask whether it is a good idea to get into the cruise line business. You are to pick5-8 measures that you will use to analyze your company (half of your measures may come from the book, the other half must come from you). Then you will need toshow the importance/weight of each measure (be sure that the summation of your weights adds up to 100%). Finally for each measure, you will have togive a rating (1-10) on each industry. Please base information off my example below.
Industry Attractiveness Measure | Importance/Weight | Computer & Electronics Rating/Score | Cell Phone & Production Rating/Score | Streaming Services Rating/Score |
Market Size and Project Growth Rate | 30 | 9 (9 * 0.30 = 2.70) | 8 (8 * 0.30 = 2.40) | 6 (6 * 0.30 = 1.80) |
Market Share and Profitability | 20 | 8 (8*0.20 = 1.60) | 8 (8 * 0.20 = 1.60) | 6 (6 * 0.20 = 1.20) |
Technological Advancement and Innovation | 15 | 9 (9*0.15 = 1.35) | 9 (9 * 0.15 = 1.35) | 5 (5 * 0.15 = 0.75) |
Regulatory and Legal Environment | 10 | 7 (7*0.10 = 0.70) | 8 (8 * 0.10 = .80) | 7 (7 * 0.10 = 0.70) |
Customer Bargaining Power | 10 | 6 (6*0.10 = 0.60) | 6 (6 * 0.10 = 0.60) | 6 (6 * 0.10 = 0.60) |
Supplier Bargaining Power | 15 | 7 (7*0.15 = 1.05) | 7 (7 * 0.15 = 1.05) | 5 (5 * 0.15 = 0.75) |
Total | 100% | 8 | 7.8 | 5.8 |
For thesecondstep, evaluate the business-unit competitive strength. Here Disney would be determining how good of a job it is doing in the Cruise Line business. Again, you are to pick5-8 measures that you will use to analyze your company (half of your measures may come from the book, the other half must come from you). Then you will need toshow the importance/weight of each measure (be sure that the summation of your weights adds up to 100%). Finally for each measure, give a rating (1-10) on each business unit. Please base information offmy example below.
Industry Attractiveness Measure | Importance/Weight | iPhone Rating/Score | iPad Rating/Score | Mac Rating/Score | App Store Rating Score | iCloud Rating/Score |
Product Quality | 40 | 8 (8*0.40 = 3.20) | 9 | 7 | 10 | 6 |
Price/Value Proposition | 30 | 9 (9*0.30 = 2.70) | 8 | 8 | 10 | 7 |
Distribution Channel Access | 15 | 8 (8*0.15 = 1.20) | 8 | 7 | 9 | 6 |
Technology Leadership | 10 | 10 (10*0.10 = 1.00) | 8 | 9 | 8 | 8 |
Marketing Reach | 5 | 9 (9*0.05 = 0.45) | 8 | 6 | 9 | 7 |
Total | 100% | 3.20 + 2.70 + 1.20 + 1.00 + 0.45 = 8.55 | 8.40 | 7.45 | 9.60 | 6.55 |
Next using a "Nine-Cell Industry Attractiveness-Competitive Strength Matrix" as seen in Figure 8-3.
For thethirdstep, determine the Competitive Value of Strategic Fit for the Apple company.
For thefourthstep, Evaluate the Resource Fit for the Apple company. In other words, is it feasible for the company to continue on its path? Do the individual businesses adequately contribute to achieving companywide performance targets? Does the corporation have adequate strength to fund its different businesses and maintain a healthy credit rating? Please show how you have reached your conclusions.
For thefifthstep, rank the business units and set a priority for resource allocation. For example, Disney might place a priority on maintaining the theme parks over the Cruise Lines if they have constricting budgetary constraints.
Finally for thesixthstep, craft a strategy that suggest moves to improve the overall corporate performance.
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