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business
strategy in practice
Fundamentals Of Strategy 3rd Edition Gerry Johnson, Richard Whittington, Kevan Scholes, Patrick Regnér, Duncan Angwin - Solutions
1 What are the advantages and disadvantages of Rovio’s business model?
2 Are there any unmet needs in your community, at college or elsewhere, that could be turned into a business opportunity?
1 What do you learn from the experience of Goldberg and Ting which could be useful to launching a new enterprise?
2 What are the advantages of a visual roadmap of this kind? What are the limitations to this visual approach?
1 Why might some groups be apprehensive about the Cloud Computing Era?
2 What potential competitive advantages did Blockbuster have as a company as the new business models emerged in the last decade or so?
1 Compare the pros and cons of the various business models for movie consumption.
2 Could a large company such as Procter &Gamble imitate this strategy?
1 Identify the various features of Muruganantham’s approach that make his sanitary towel business a typical or not so typical ‘frugal innovation’.
Anticipate both key issues facing entrepreneurs as they go through the stages of growth, from start-up to exit, and the choices involved in entrepreneurial strategies .
Decide when being a first-mover or a follower is most appropriate in innovation, and how an incumbent organisation should respond to innovative challengers.
Anticipate and to some extent influence the diffusion (or spread) of innovations.
Identify key sources of innovation, such as technologies or markets, product or process innovations, open versus closed innovation, and the underlying business model.
3 In the light of the CAGE framework, what challenges may Wanda meet as it enters the US market?
2 What national sources of competitive advantage might Wanda draw from its Chinese base? What disadvantages derive from its Chinese base?
1 Considering Yip’s globalisation framework( Figure 7.2 ), what drivers of internationalisation do you think were most important when Wanda entered the US market through its AMC acquisition?
2 Is there anything that Western companies might learn from base of the pyramid strategies in emerging markets that might be valuable in their home markets?
1 Can you imagine any risks or dangers that Western companies might face in pursuing base of the pyramid strategies?
2 What can Vale do to mitigate the problems the company encounters when expanding globally?
1 Suggest three reasons for Vale’s different reception in Canada and Mozambique.
3 To what extent is JEE key to Blue Skies’international strategy and competitive advantage or rather a social entrepreneurship effort?
2 How does Blue Skies’ strategy fit into a broader international value system including suppliers, channels and customers (see also Figure 3.5 )?
1 What internationalisation drivers ( Figure 7.2 )do you think were most important for Blue Skies’ decision to enter its specific markets?
2 What might be the dangers for a large Western retailer in staying out of the Chinese market?
1 What are the pros and cons of the different China strategies pursued by Carrefour and Walmart?
Understand the difference between global integration and local responsiveness and four main types of international strategy.
Identify sources of competitive advantage in international strategy, through both exploitation of local factors and global sourcing.
Assess the internationalisation potential of different markets.
4 What should the future corporate strategy be?
3 How does the Virgin Group as a corporate parent add value to its businesses? To what extent are these parenting skills relevant to the various businesses in the group?
2 What is the corporate rationale for Virgin as a group of companies?
1 What directions of strategic development have been followed by Virgin over the period of the case (use Figure 6.2as a guide)?
2 Identify and evaluate the various synergies in ITC’s business.
1 How well does ITC’s portfolio fit in terms of the BCG matrix?
2 With $20 bn to invest, suggest industries and businesses Warren Buffett is likely never to invest in.
1 In what ways does Berkshire Hathaway fit the archetypal portfolio manager (see section 6.5.2 )?
2 What might be the risks of ‘insourcing’?
1 In terms of transaction and capability costs, why might outsourcing be attractive to companies?
2 Referring to the Ansoff matrix, how would you classify these diversifications?
1 What were the motivation(s) for Greyston Bakery’s diversifications?
Assess the relative benefits of vertical integration and outsourcing .
Distinguish between different diversification strategies ( related and conglomerate diversification) and evaluate diversification drivers .
Identify alternative strategy options, including market penetration, product development, market development and diversification .
4 What are the lessons from China about IKEA’s approach?
3 Explain how IKEA tries to ensure that its ‘Hybrid’strategy remains sustainable and does not become ‘stuck-in-the-middle’.
2 Identify how IKEA has achieved differentiation from its competitors.
1 Identify where and how IKEA has achieved cost leadership.
2 What options are available now to the excluded Three?
1 In terms of Figure 5.8 , what are the benefits to the Project Oscar partners of collaboration?
2 What should be done by a company with a similar original position to Starbucks, but operating in a market where McCafé has not yet arrived (e.g. Costa Coffee in the United Kingdom)?
1 Plot the moves of McDonald’s and Starbucks on the axes of price and perceived quality, as in Figure 5.7 .
2 How sustainable is Volvo’s luxury bus strategy?
1 Rank the elements of Passey’s strategy for Volvo in order of importance. Could any have been dispensed with?
2 In what sense do borough councils ‘compete’?
1 What are the advantages and disadvantages of this approach to low-cost council services?
Assess the benefits of cooperation in business strategy.
Identify business strategies suited to hypercompetitive conditions.
Assess business strategy in terms of the generic strategies of cost leadership, differentiation and focus .
Identify strategic business units (SBUs) in organisations.
3 Undertake a cultural web analysis of Barclays Bank’s investment arm.
2 Who were the major stakeholders influencing the strategy of Barclays’ investment banking?In your view, who should they have been?
1 How might issues of corporate governance explain the problems that arose at Barclays?
2 How does corporate social responsibility relate to stakeholder expectations and governance in determining the purpose of an organisation? Use the companies featured in the video as examples.
1 Using the video interviews and section 4.5 of the text, discuss the importance of corporate social responsibility to the companies featured in the video.
3 Draw up a cultural web for an organisation of your choice.
2 How do the various elements of the web interrelate?
1 How might the web help those seeking to address the problems of ‘the banking culture’?
2 What are the kinds of triple-bottom-line measures that would be appropriate for a sustainable strategy in clothing retail?
1 Where would you place H&M in terms of the four stances on social responsibility?
2 Given the ownership structure, is CEO Gallois right to assert the primacy of company interests and reject German ministerial ‘interference’?
1 With reference to the power/interest matrix( Figure 4.5 ), how would powerful stakeholders’level of interest vary with regard to the location of the EADS headquarters and internationalisation?
2 Given that News Corporation’s share price was outperforming competitors’, why would shareholders vote against the Murdochs’management at News Corporation? What else could they do?\
1 With reference to Figure 4.3 , at what levels did the governance chain at News Corporation seem to fail?
2 How do Mozilla’s mission and principles influence its approach to new initiatives?Is there any danger in its apparent priorities?
1 Mozilla does not produce a formal vision statement. Based on the materials here, what do you think Mozilla’s vision would be?
Understand how organisational culture can influence purpose and strategy.
Identify differences in the corporate responsibility stances taken by organisations.
Undertake stakeholder analysis as a means of identifying the influence of different stakeholder groups in terms of their power and interest.
Understand the governance issues of an organisation.
Identify the influences of different ownership structures on strategic purpose.
3 What is the importance of the Samwer brothers?What would happen if they left or sold the company?
2 Based on your initial analysis and answers to question 1, carry out a VRIO analysis for Rocket Internet. What do you conclude? To what extent does Rocket Internet have strategic capabilities with sustained competitive advantage?
1 Based on the data from the case (and any other sources available) use the frameworks from the chapter and analyse the strategic capabilities of Rocket Internet:a What are its resources and competences?b What are its threshold, distinctive and dynamic capabilities?
1 What does the SWOT analysis tell us about the competitive position of Pharmcare with the industry as a whole?
2 If disaggregation (see section 3.4.3 ) is important, suggest what even more specific activities underpinning those in the activity map might be important.
1 Assuming Geelmuyden.Kiese managers are correct that they have capabilities that provide competitive advantage:a What would competitors find difficult to imitate and why?b Are there any activities that could be done away with without threatening that advantage?
3 What are the strategic implications of your analysis?
2 Estimate the relative costs and/or assets associated with these activities.
1 Draw up a value chain or value system for another business in terms of the activities within its component parts.
3 Which is the most important strategic capability that provides, or could provide, Groupon with sustainable competitive advantage?
2 Assess the bases of Groupon’s strategic capabilities using the VRIO criteria ( Figure 3.2 and Table 3.2 ).
1 Andrew Mason admits that Groupon has thousands of copycats, yet his assessment is that imitating Groupon is difficult. Do you agree?
2 a What are the possible future opportunities in mobile telephones?b How could they be sensed and seized?c What type of ordinary capabilities could possibly address them?
1 What type of dynamic capabilities could help companies avoid becoming stuck in their old capabilities?
Diagnose strategic capability by means of VRIO analysis, benchmarking, value chain analysis, activity mapping and SWOT analysis?
Analyse how strategic capabilities might provide sustainable competitive advantage on the basis of their Value, Rarity, Inimitability and Organisational support (VRIO).
Identify strategic capabilities in terms of organisational resources and competences and how these relate to the strategies of organisations.
2 Carry out a Five Forces analysis of the advertising industry in 2012. Which forces are becoming more negative or positive for the major advertising agencies?
1 Carry out a PESTEL analysis of the advertising industry in 2012, with particular attention to megatrends, inflexion points and weak signals.
2 In terms of the industry life cycle, what stage is the charity industry and what type of structure does that imply?
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