Week 16: case Britvic bar Berger

1. In your own words and using referenced quotes describe the difference between organic growth, merger & acquisition and strategic alliance.

Organic growth

Organic growth is a growth strategy where it supports and assists in making a firm strong by using its own energy sources and the resources needed. As compared to any other approach, this is very slow yet contains lower up-front costs. For small businesses lacking huge amount of capital but willing to enhance themselves, it is a very much appropriate approach. This is more like a “Do It Yourself” type of strategy where most of the firms fabricate their capabilities.

Merger and Acquisition

Merger and Acquisition is a growth strategy that makes an involvement of two different firms in order to create a new firm where they acquire corporations. Here, acquisition means the process of controlling a firm completely by any means.

Strategic Alliance

Strategic Alliance is an approach where a set of predetermined goals is pursued by more than two companies conjointly sharing resources for the same project for a temporary cause.

2. Give an example of a company that has grown through a) organic growth, b) merger or acquisition and c) strategic alliance

The examples of companies that have grown through the following are listed below:

Organic growth: Lego Toy Brand made from its creative and innovative ides developed to become successful.

 Merger or Acquisition: Sony Ericsson is the best example for merger and acquisition as Sony Corporation merged along Ericsson in 2001 which then emerged to an acquisition of shares of Ericsson by Sony Corporations hence developed as a Sony Mobile Communications in 2012.

Strategic Alliance: Nokia and Microsoft would be the best example of a recent alliance.

  

3. Briefly discuss the merger between Britvic and AG Barr. What advice would you give to the new Board?

Case Study answers

Positives:

·                     A newly formed company after merger experienced 37% and 63% shares of AG Barr and Britvic respectively with a loyal customer base for each product. Since they are combined, the loyal customer base is also combined to have a larger market.

·                     The risk is expanded and the large amount of cash flows is very helpful to cover the debts.

·                     They are able to compete in a very intense market since they are combined.

·                     Both companies can benefit from the scale production.

Negatives:

·                     It might result in unemployment of people because of redundancy occurred by merger.

·                     Top management might face problems related to authorization.

·                     Barr individually will experience less profitability as it has to share the £600 debt of Britvic.

·                     Both might face the loss of customer due to any negative experience of a customer of either brand before merger.

·                     One firm will directly be affected by the bankruptcy in another firm.

·                     In some cases it might be very tricky to shift from one product to another.

The suggestions to the new board are as follows:

·                      They should minimize the unwanted expenses.

·                     In order to gain market share, there must be more cash inflows.

·                     In order to increase comfort level and trust, there must more participative goal set.

·                     Good/ meaningful communication should be encouraged more within the combined firm as well with customers.

·                     Respond positively towards the customer’s feedback on product to improvise work.

·                     To show an actual emotional bond between the companies, appropriate advertising should be encouraged so that they will be able to lure loyal customers.

References:

http://www.businessdictionary.com/definition/organic-growth.html, accessed on November, 2013

http://financial-dictionary.thefreedictionary.com/Organic+Growth, accessed on November, 2013

http://smallbusiness.chron.com/organic-growth-strategy-57130.html, accessed on November, 2013

Johnson, Whittington and Scholes (2011) Exploring Strategy, 9th Edition, Pearson Education, Chapter 10

Johnson, Whittington and Scholes (2011) Exploring Strategy, 9th Edition, Pearson Education, Chapter 6

Presentation on Bangladesh

 
 

 

 

 

 

Week 15: Case study - Madonna

1. Why has this artist been so successful? What are her key sources of sustainable competitive advantage?

— think about her unique resources and core competencies, think about how she has responded to changes in the external environment, why is she difficult to imitate?

> Madonna, the diva and a rock star who has ruled the music world for past few decades and is still rocking it is the highest ever paid female singer in the world. She has always been on the top list and has set a benchmark in the music world. I think she has been so successful because as the case mentioned her as a chameleon, she had the guts and courage to reshape herself up in every new album. She was always able to shock and surprise her huge fan following with every comeback she made which would display a new image of her. With this going she had her strategy well planned and implemented correctly. She used her sexuality and her attitude in every change she brought up which eventually was loved and adored by the public.

“I'm tough, I'm ambitious, and I know exactly what I want. If that makes me a bitch, okay.” 

― Madonna (goodreads.com,2013). Like this quote written by her explains how ambitious she is and it doesn't matter to her if others don't like her for doing what she wants to do. She has this attitude that people love and yet again Madonna pioneers and endures as one of the most influential celebrity women in the planet.

Madonna and her ever changing images has always been able to wow the crowd. From her very first album till now she has maintained the popularity meter by adopting into several genres of songs and her involvement in shocking activities. She was often called as 'the queen of controversy', she had a book featuring her sexual pictures,the music video for her legendary hit single 'like a prayer' was outrageous and universally banned, she adopted a Malawi child all this kind of shocking news she created rather was interesting for the public.

She has always changed and adopted herself with the change in time and era. Music industry is full of one hit wonders and brief careers but Madonna was one celebrity that remained at the top for decades. 

Her key sources of sustainable competitive advantage are:

• She is a chameleon as mentioned in the case. She changes and improves herself up with the time and era.
•  No one can imitate her because no one knows what surprise she is going to bring in her next come back.
• She eventually has a huge and loyal fan following, who has been supporting her for decades.
• She has her strategy well planned and uses it correctly.
• Her changing genres of songs, reshaping herself up time and again has build up respect for her talent among the people.

2.What strategy directions could the artist pursue over the next ten years to continue her commercial success?

— Consider each of the four boxes from the Ansoff matrix. What new products or markets could she enter? How might she diversify or continue to penetrate her existing market? Try to think logically but also creatively and innovatively.

> Over the next ten years the artist can pursue following strategy directions to continue her commercial success:

The Ansoff matrix for Madonna to continue her commercial success:

Market Penetration She being a brand in herself can easily join in new labels and sign deals. She can continue and give more focus on working as a director.	New Products and services She can endorse her own clothing line, makeup, accessories e.t.c. She can sign up some television shows so as to keep impressing her   fans.
Market Development She should think of giving a concert tour in Asian countries as well so as to add up to her fan following numbers.	Diversification She can write a book on herself and her success story. She can establish a Music school.

References:

http://www.goodreads.com/author/quotes/104438.Madonna accessed on october, 2013

http://www.studymode.com/course-notes/Keys-To-Madonna's-Success-856935.html, accessed on october, 2013

Week 14: Case Study: Virgin Group

1.Difference between 'business unit level' strategy and 'corporate level' strategy.

Business unit level strategy:

Business level strategies are essentially positioning strategies whereby businesses tend to secure for themselves an identity and position in the market(gaebler.com,2013). It refers to the kind of strategy that basically focuses on an organisation's competitive advantage. Business unit level strategy is often practiced in the organisation which have several strategic business units (SBU). It concerns with one's position in the industry as compared to it's competitors. 

Corporate level strategy:

The overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals (businessdictionary.com, 2013). This kind of strategy involves in the determination of a firm's goals and objectives and also the range of businesses they want to pursue as a whole. Unlike business unit level strategy, it is basically the main strategy of a firm that defines it's main purpose and scope.   

corporate level strategy	Business unit level strategy
It refers to the strategy that is used to define a firms's ultimate purpose and goal as a whole.	It refers to the strategy that helps a firm define it's competitive advantage as compared to it's competitors.
Decisions are made by the Top level management.	Decisions are made by the Middle level management.
It is the strategy that relates to firms overall purpose and scope.	It is the strategy only for a single strategic business unit (SBU) of a firm.
Allocation of resources takes place.	Best Utilization of resources takes place so as to gain competitive advantage.
It only involves one strategy so as to function the organization as a whole.	It involves different sets of strategies for different product line.

2. Discuss the corporate parenting style of Virgin group.

>Virgin group is a British multinational branded project capital corporation company. the primary business zones of the company are travel, entertainment and lifestyle and it has more than 400 companies globally.

Virgin Group was founded by Sir Richard Branson on 1970.  This group operates several lines of product and services.  Ranging from mobile telephony, travel, financial service, lecture music, holding and health and wellness. Virgin group are a part of a one big family rather than a hierarchy, thus operates with a decentralized power. Parenting style support and practice some management style in every business sector they control and operates under same brand name. it also includes partnership with other industries. Overall, the brand name, joint ventures and investors has lead virgin group toward success. 

References:

EHOW ARTICLE (2013), Wendel Clark [Online] Available fromhttp://www.ehow.com/info_7904252_difference-corporate-strategy-business-strategy.html (Accessed on 9 Oct, 2013)

Virgin Group. (2012). “Virgin Corporate History.” London: Virgin Management Ltd. [Online] Available from http://www.virgin.com [Accessed on 9 Oct, 2013]

A Company Profile: Virgin, [Online] Available from http://www.examiner.com/article/a-company-profile-virgin, [Accessed on 9 Oct, 2013]

htwtp://ww.gaebler.com/Three-Levels-of-Strategy.htm (Accessed on 9 oct 2013)

http://www.businessdictionary.com/definition/corporate-strategy.html (Accessed on 9 oct 2013)

WEEK 11: Group Video

The URL of our Group Video
http://www.youtube.com/watch?v=CIHqanDmhiY
Our video is based on NESTLE
Group members:
Amrita Gurung
Ashmita Gurung
Sunita Gurung
Dhurba Godar
Sandup Tsering Sherpa

WEEK: 10

1) In your own words and using referenced quotes describe what is meant in strategy by 'Organizational Purpose‘ and describe what is meant by 'Corporate Social Responsibility‘.

Organizational Purpose:

The fundamental reason for the organizational existence is defined by the organizational purpose. Every other decisions is guided by the organizational purpose.it helps to use the time, attention and resources in order to serve the niched market better than anyone else.It has no intention of earning immediate financial benefits but instead it promotes positive social and environmental change.

Corporate Social Responsibility
Corporate Social Responsibility is a business outlook that shows responsibilities to suppliers, stakeholders, customers and along with employees. Moreover looks at the locals and international communities as well in which it operates. It is also refereed to as "corporate citizenship"..It has no intention of earning immediate financial benefits but instead it promotes positive social and environmental change.

2.Should organizations focus more on profit and shareholder satisfaction or responsibility and stakeholder satisfaction? Discuss your own thoughts but try to support your ideas with theory or examples.

In my opinion, companies should focus on CSR, since its main aim is to earn profit. To do so company must take responsibilities toward its customers, employees and suppliers.if they are able to fulfill their needs, then the work it self will be efficient and effective and will be able to achieve the goal that is required and earn profit.There are lots of evidence that proves that a good social responsibility has resulted in increase of profits.

For example: If a company is able to be socially responsible  to the customer along with the employees will be happy and eventually the satisfaction of all the parties will lead to maximum profit.

3) Write about your experience with today's case study. What answers did you give to the questions? What did you think of the CEO?

The case study was very interesting and beneficial. It talked about the Pepsico's strategic objectives and organizational purpose along with the social responsibilities.

 The CEO had an impressive strategy which had improved financial performance with enhanced bran image and reputation. IT even had increased sales and customer loyalty.They have easier access to capital and ability to attract the customers and retain customers as well.

PEPSICO CASE STUDY:

1. What are Pepsico's Strategic objectives? Why does this firm exist?

• Pepsi is also pinning its hope on the launch across America on March 26th of Pepsi Next, a new soda sweetened with both high-fructose syrup and artificial sweeteners which has 60% less sugar than classic Pepsi.

• Angelique Krembs of Pepsi says the new drink is aimed at consumers who are keen to imbibe less sugar with their cola but dislike the taste of diet drinks. She splits this mostly male group in two: "dualists", who switch between regular and diet (and sometimes mix the two), and "resistants", who never touch either.

This firm exist because it provides a knowledge about what it desired and what is Possible.Since it focuses most on the customers satisfaction their product has been love by the customer and due to which this firm has been existing till date.

2. What are the possible strengths and benefits of the strategy.

The strengths and benefits of this kind of strategies are;

• improved financial performance
• enhanced brand image and reputation
• increased sales and customer loyalty
• increased ability to attract and retain customers
• easier access to capital
• comply with regulatory environment

The weakness and disadvantage of this strategy:

• it is an expense to the company, the main reasons any company would object to participating in CSR  is the associated costs.
• shareholder expectation: when considering CSR is the possible negative perception of shareholders.
• loss of focus.

Reference:

Baker, M. (2004, June 8). Retrieved may 1, 2013, from mallenbaker: http://www.mallenbaker.net/csr/definition.php

 Retrieved may 1, 2013, from worldacademyonline: http://worldacademyonline.com/article/34/475/defining_the_organization___s_purpose.html

WEEK : 9

1. In your own words and using referenced quotes describe what is meant in strategy by the ‘Resource-Based View’?

It is the process by which a firm is viewed and the strategy is approached. A management device used to assess the available amount of a business strategic assets. The Resource-based view is based on the idea that the effective and efficient application of all useful resources that the company can muster helps determine its competitive advantage.This theory formulates the firm to be a bundle of resources.


2. How might you undertake 'Internal Strategic Analysis' ? What models would you apply and why/ Where would you go to find the information you need?

Internal Strategic Analysis plays an important role in an organization since its focus is on the strengths and weakness of the Internal factors that give them certain merits and demerits to meet the needs of its targeted market. 
Different methods can be used to access the internal analysis of an organization, that are :

• Resource-Based View
• Value Chain Analysis
• SWOT Analysis
• TOWS Analysis
• McKinsey 7 S model, etc

If I were to analyse the internal environment of an organization. i would apply SWOT analysis because it is simple and effective for strategy development. It reliable with less cost and consumes less time as well. It is a useful technique to understand the strengths and weakness along with the opportunities and threats that an organization faces. It eventually helps in finding out the advantages and disadvantages of a company. It even finds out the need in which company can perform profitably.

3) Talk about your group video work. How is it going so far ? do you have a plan? What are you most worried about at the moment ? what is going well?

So, far all the research that needs to be done is completed and we are working on combining all the group members research together and make one project that can be presented. The research process went smoothly, since all the members of my group were cooperative and helpful. Moreover, everyone is working hard and is determined in presenting the project successfully. 

Reference:

Retrieved may 1, 2013, from Business dictionary: http://www.businessdictionary.com/definition/resource-based-view.html

Johnson, Whittington and Scholes (2011) Exploring Strategy, 9th Edition, Pearson Education, Chapter 3