CASE ANALYSIS Jim Barker is the VP Planning

Please read the following case and:

1. Briefly identify all the statements that are true in each paragraph

2. Briefly identify all the statements that are not true in each paragraph

3. Where a statement is not true, briefly explain why or say what the correct statement should be

For example: In paragraph one it says ABC was a diversified company. Not true. It is a single enterprise company because its 3 business units contribute 95%, 2% and 3% to the bottom line. By definition this is a single enterprise company.

Paragraph # 1

ABC was a diversified consumer goods company because it had three LOB/SBUs with the following contributions to the bottom line:

LOB/SBU 1 95%

LOB/SBU 2 2%

LOB/SBU 3 3%

Paragraph # 2

Since it was a diversified company he knew he had to have three levels of strategy: corporate, LOB/SBU and functional. Personally, he felt the strategies should be both legal and ethical. It was the best way to operate and there were no issues the company would have to be concerned about.

Paragraph # 3

This position was relatively easy since as a consumer goods company the only laws they would have to contend with were the Consumer Protection Laws. Socially responsible behavior by the company was fine since they were in the second stage of socially acceptable behavior and as such it was good business to be socially responsible.

Paragraph # 4

The new CEO of ABC said she wanted to change the company culture and that she could make it happen quickly. She had a reputation for doing so in other companies she worked in. Jims concern was that the CEO never worked for a consumer package goods company before. She didnt know the product lines. Her first memo to the management team said any strategies must improve corporate performance. Specifically, she ordered Jim to cut costs. He expected to do so by giving every operating VP in each LOB/SBU a 12% objective to cut costs in 2021.

Paragraph # 5

Jim was going to do a strategic competitive analysis and knew Porters Four Forces Model was the way to do it. Porter said competition was anybody who can hurt you financially so he needed to consider how to protect the company. Vertical integration forward might be one way to address potential higher supplier costs.

Paragraph # 6

He felt the competitive envoronment in LOB/SBU 1 was not getting any worse but he did notice, using a SWOT, that the industry growth was slowing down and all the competitors were about the same size and capability. Business as usual. He liked to use the SWOT because it required the VPs to be objective in their analysis.

Paragraph # 7

He also liked doing a strategic group map and decided to do one every 18 months or so. Good idea to stay on top of the industry.

EDIT: The case analysis is the paragraphs.