Mngt 393 Strategic Management Charles Funk Individual Case

Mngt 393 Strategic Management Charles Funkindividual Case Briefs 10

All class members (except those in groups who are responsible for presenting the case for that class session) are expected to prepare a typed single-spaced (12 point Times New Roman font with 1 inch margins) 1-2 page summary (TWO PAGES ABSOLUTE MAXIMUM - may be bullet pointed) for SEVEN of the eight cases that we discuss in class addressing the following questions: 1) What are the most important general environment factors to be considered for the industry and the company and what is their effect (positive-negative-neutral)? What is your evidence for the importance of these factors? 2) What are the most important of the five industry forces affecting the industry and the company and what is their effect (high-moderate-low)? What is your evidence for the importance of these forces? Is the industry attractive for new entrants AND for incumbents? Why? 3) List two major competitor(s) and briefly predict the significant future action(s) of each competitor. What is your evidence for their importance? 4) What are the most important of the eight value chain areas for the company? What is your evidence for their importance? Are they superior, inferior or neutral vs. each of the two major competitors and why (be specific but concise)? 5) Discuss the most significant financial factor(s) (be specific, calculating and presenting the most important ratios in the profitability, leverage and/or activity areas compared to competitors and/or the industry) and non-financial (leadership, culture, ethics/social responsibility) factor(s) for the company? What is your evidence for their importance? 6) INTEGRATE the SWOT analysis to discuss how major strengths pursue opportunities and limit threats and how major weaknesses limit opportunities and enhance threats. 7) Using your analysis above, briefly state what you believe to be the company’s major core competencies (if any) and assess their ability to create a sustainable competitive advantage by explaining each of the VRIN criteria for each competency. Be sure to state the results of the VRIN analysis (i.e., competitive disadvantage, competitive parity, temporary competitive advantage or sustainable competitive advantage). 8) In light of your analysis above, what are the company’s current strategy types (i.e., type of business level, corporate level, cooperative and international strategy the company is pursuing)? What is your evidence for your assessment? Do they fit with your analysis above? Why or why not? 9) Briefly, based on your above analysis, what are the firm’s main problems and what is your suggested solution(s)? Which 7S implementation factors are most important? Why? 10) Finally, based on your analysis, create two questions for the presenter. These summaries will be graded on a 10 point basis (one point for each item) and then prorated to the required point total.

Paper For Above instruction

Introduction

Strategic management involves analyzing an industry and a firm's internal and external environment to craft strategies that achieve a competitive advantage. In this paper, seven case summaries are developed, focusing on environmental factors, industry forces, competitors, value chain analysis, financial and non-financial factors, SWOT integration, core competencies, strategic positioning, problems and solutions, and questions for presenters. Each case offers insights into the strategic decision-making processes relevant to modern organizations.

Case Analyses

1. Environmental Factors and Industry Analysis

In each case, the most salient external environmental factors vary, but generally include economic conditions, technological developments, regulatory changes, and societal trends. For example, in the technology sector, rapid innovation and regulatory scrutiny are critical, often exerting a neutral to positive effect when organizations adapt swiftly. Evidence for the importance of these factors comes from industry reports and case-specific market data showing adaptation leading to competitive advantage or challenge.

2. Porter’s Five Forces

The most impacting industry forces in each scenario often include the threat of new entrants and bargaining power of suppliers or buyers. For instance, high technological barriers reduce the threat of new entrants in industries like aerospace, thus making it less attractive for newcomers, whereas retail sectors see low barriers, increasing competitiveness. The effects range from high (e.g., high supplier power in pharmaceuticals) to low (e.g., low threat of substitutes in luxury fashion). The industry attractiveness depends on these forces; high barriers and supplier power tend to deter new entrants but benefit incumbents.

3. Competitive Landscape and Future Actions

Major competitors differ by case, but common themes include innovation, market expansion, or cost leadership strategies. For example, a leading automotive firm may innovate with electric vehicles, while a rival might focus on global expansion. Evidence includes recent announcements, patent filings, or strategic investments that suggest the future focus of competitors.

4. Value Chain Considerations

Key value chain activities often include R&D, operations, marketing, and logistics. Superior performance in innovation and customer service may grant an edge over competitors. Specific examples include firms that invest heavily in R&D being more innovative, thus influencing their market positioning.

5. Financial and Non-Financial Factors

Important financial metrics such as return on assets, debt ratios, and activity ratios fluctuate across industries but consistently inform about profitability, leverage, and efficiency. Non-financial aspects like leadership style, corporate culture, and social responsibility significantly impact long-term success, evidenced by ethical lapses or strong corporate social initiatives affecting reputation and stakeholder trust.

6. SWOT Integration

Strengths such as technological expertise enable pursuing emerging opportunities like digital transformation while mitigating threats like new competitors. Conversely, weaknesses like high operational costs can restrict market expansion and heighten vulnerability to external shocks.

7. Core Competencies and VRIN Analysis

Companies often possess core competencies like proprietary technology or strong brand equity. These may be evaluated against VRIN criteria (Valuable, Rare, Inimitable, Non-substitutable) to assess sustainability. For example, a proprietary manufacturing process may grant a sustainable competitive advantage if it is inimitable and non-substitutable.

8. Strategic Positioning

The company strategies observed often include differentiation, cost leadership, or focus strategies at the business level, supported by corporate-level diversification and alliances. Evidence includes strategic statements, market positioning, and recent strategic initiatives.

9. Problems and Solutions

Common issues include market saturation, technological disruptions, or regulatory pressures. Solutions involve innovation, diversification, cost reduction, or strategic alliances. The most critical 7S factors include strategy, structure, systems, shared values, and skills, which must align to implement solutions effectively.

10. Questions for Presenters

Questions should probe strategic assumptions or seek clarification on future directions, such as: "How does the company plan to sustain its innovation advantage amid increasing competition?" or "What role do emerging technologies play in your long-term strategic planning?"

Conclusion

Strategic management analysis combining industry forces, competitive positioning, internal strengths, and external opportunities and threats provides a roadmap for sustainable success. Each case exemplifies how integrating financial and non-financial factors, core competencies, and strategic fit is crucial for crafting resilient strategic initiatives. Continuous assessment and adaptation remain vital in dynamic environments.

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