Case

Case 11: 4c) What should Nintendo do to break out of its #3 position?

"resource partitioning", needs to clearly recognize the customer segments where its principal strengths lie, and to develop games (and other offerings too) that appeal to this segment.

Case 8: 4. How far did the further organizational changes of 1997-2000 resolve the remaining problems of Shell's 1995-6 reorganization?

* During the final three years of the decade, the initial reorganization was extended in several important ways: * Strengthening the business organizations. The committees that headed up the businesses were replaced by chief executives. Hopefully this would increase the effectiveness of their strategic and financial control and improve entrepreneurial vigor. * Shell Oil of the US was incorporated into Shell's worldwide organization. Chemicals was the first of Shell's truly global business divisions. * Executive authority and accountability was increased. Shell moved increasingly from collective responsibility to individual responsibility. At the business level the new business CEOs had clear strategic and financial responsibility; at the corporate level, Moody-Stuart redefined the position of chairman of the CMD to be less of "first-among-equals" and more of a corporate chief executive.

18: ... about where to compete?

Immelt's quest to find growth that can match the one from GE's financial branch has been to look at New businesses: try to launch new businesses that match the changes of the industries International expansion: Follow Welch's efforts to extend GE's reach to more international markets.

10. Raisio Group and the Benecol Launch What is Raisio's strategy for commercializing its innovation regarding stanol ester and its cholesterol-reducing properties?

Two tier strategy 1 → Commercializing Benecol (Margarine) through a strategic alliance with Johnson & Johnson. Exclusive licensing 2 → Stanol Ester through several international joint venture plants in different locations.

15.3: .. Theme park industry in Europe?

Underdeveloped market compared to the US Not clear if this is an opportunity or if it's because Europeans have different tastes. For example, maybe they don't need "magical castles" in a theme park since they have real castles to visit.

1. Madonna

madonna

7.1 1. What is Kodak's strategy for developing its digital imaging business?

• Fisher established Kodak's strategic focus as " pictures" i.e. kodak was in business to provide images and should not be tied to any specific imaging technology. • Numbers of projects and products was substantially reduced under Whitmore, Kodak spreads its R& D across many disparate projects but with limited market impact. • Separate strategies were developed for the professional/commercial and consumer segments. Important : the dual strategy. Professional new technologies higher prices to cover development costs. Consumer hybrid approach - offering selective digitization of particular functions reflects desire to utilize existing strengths in the retail market notably its brand and its retail distribution. Kodak ability to build presence in the consumer market depends on a gradual transition from traditional to digital photography. If the transition is fast- kodak has limited opportunity i.e. download their pictures to computer, but if they still use film then their retail presence becomes critical in offering digitization, editing et. • Recognized that they needed to select products and activities when allocating investments. Many stages of digital imaging value chain are already dominated by powerful incumbents. Recognized that they could not hope to be a leader across the digital imaging value chain from image capture through to image transmission and printing. ( FOCUSED ON THE PARTS OF THE VALUE CHAIN WHERE THEIR R&C GAVE IT RELATIVE STRENGTH AND FORGED ALLIANCES WITH COMPANIES ENGAGED IN COMMENTARY ACTIVITIES, PRODUCTS AND TECHNOLOGIES. OTHER AREAS MADE ACQUISITIONS. • Focus on positioning itself within certain parts of value chain, retained desired to be full service provider. Kodak uses its brand and its distribution presence (both online and retail) as an umbrella for suppling. Kodak offered an integrated standalone system.term-8

Case 11: 2. In what sense and for what reasons is this a "winner-take-all" industry?

1. Economies of scale 2. Network externalities (C2C, HD2SW)

Case 6: 2. What determines organizational capability in football (soccer)?

1. Players 2. Coaches 3. Finance to acquire the first two. A) That some teams achieve great success with comparatively few star players (Bayern Munich, Porto, Piraeus, Ajax, Deportivo). b) Some clubs spend large amounts of money without achieving outstanding success. Classic examples are Inter Milan during the 1990s and Chelsea during the decade before 2004. This is the resource view. In order to reap the benefits of resources (mostly money), they need to utilise capabilities.

Case 11: 1. What are the key success factors in the video games hardware industry?

1. Technological progressiveness in hardware. 2. Quality and availability of software (Game dilemma) 3. Marketing 4. Timing 5. Coordinated Launch (Många aktörer)

10. Raisio Group and the Benecol Launch

10. Raisio Group and the Benecol Launch

Case 6: 3. What can Glaser do to help Manchester United regain its position as England's best football team? Should Glaser retain Alex Ferguson as head coach/team manager?

3. Alex Fergusson is the coach, or the manager (CEO etc.) How can he turn resources into capabilities? Some key points: 1. More resources: Chief executives, commercial managers, fans etc. 2. Relation ships between Coach and top management. One runs the team, one the financials. 3. Trade off between buying players and "growing your own talent" 4. Building team capabilities is a medium- to long-term endeavor 5. Flexible coordination and the ability to reconfigure teams with varying player combinations gives tactical versatility 6. Motivation is a critical role of the coach. Recommendations: 1. Build relationship with the fans 2. Manage for improved financial returns 3. The future for Fergusson (manager), uncertain. Is previous success indicator of future success?

Case 8: 5. What additional changes to Shell's organizational structure and management systems would you recommend to the current chairman of the Committee of Managing Directors (CMD), Mark Moody-Stuart?

* Merging the two parent companies to transform Shell from a joint venture into a unitary corporation. This might reinforce top-level decision making and permit the appointment of a conventional CEO. * Investing greater executive responsibility and leadership potential within the position of chairman of the CMD. This would probably require abandoning the fixed four-year term for chairpersons. * Breaking the huge global business organizations into more narrowly defined global businesses and allowing these businesses to report directly to the corporate HQ (similar to BP's structure).

Case 8: 3. To what extent did the 1995-6 reorganization remedy the deficiencies of Shell's structure and systems?

* The downgrading of the regional organizations in favor of the new business sector organizations is conducive to a more global focus and increased emphasis on the elimination of duplications between countries. * The business sector organizations are run by committee - reaffirming Shell's traditional propensity to manage by committee rather than through individual executives. * The operating companies are largely untouched. Yet these are defined primarily by country, and many span different business sectors. It appears that the new business organizations will not be able to operate either strategically or financially as global business enterprises. The establishment of operating units within and across the operating companies did little to resolve the lack of clarity between the responsibilities of the business organizations and those of the operating companies. * The top management structures (the CMD) and the role of the chairman remained unchanged. * The new structure still lacked the simplicity and logic of many of Shell's leading competitors. * Despite the downsizing of the corporate-level staffs, Shell retained three headquarters: London, The Hague and Houston (Texas). * It was not apparent that the new structure supported stronger financial controls or the imposition of a more profit-oriented management approach.

Case 8: 2. How well suited was Shell's structure to the competitive conditions and key success factors in the world oil, gas, and chemicals industry?

* The key features of the industry environment are: * It is a highly competitive, commodity business, subject to excess capacity in many activities and strong downward price pressures. Cost efficiency is critical to profitability. Cost efficiency is achieved through exploiting scale economies, avoiding duplication, keeping overheads low, and deploying latest technologies. * It is fast moving: decision making needs to be decentralized, lines of communication short. * It has become increasingly global: almost all products are internationally traded, and companies exploit opportunities throughout the world, while being geographically selective in their deployment of assets.

2.1 Assess L A recent performance. How serious is the company's present predicament?

- - ROE, ROS; ROCE go fast to cash flow (the key). CF = negative and no more finance offered from banks. - Unless operating CF drain can be eliminated, or new sources of equity finance can be found, LA goes to bankruptcy. - Overall performance has been dire indicated by net income, net cash flow, ROE and ROCE - NOTE: o Useful to look at multiple profitability measures to see consistency, also cash flow data is revealing. I.e. profits of the year to Jan 1997 don't good in operating cash flow or new cash flow maybe they were artificially boosted by earlier write offs and exceptional items. o When accounting losses are being earned no benefit to find EVA. Observe that in "good" years LA was failing to cover its costs of capital, in 1997 was a small positive EVA. o Look at the lack of revenue growth. (not unusal that firms make persistent losses i.e. bio tech firms) the difference is that LA is not a growth business. sales have declined sharply. o Don't only look at recent performance but over a longer term. Crummy profitability and low revenue growth have existed the whole of 1990's. LA no quick fix. Five CEO and several strategies indicate hard to tract problems. Given poor profitability, how close to bankruptcy look at: o Solvency o Liquidity Last financial year, debt almost eliminated as a result of the equity injection from MUI. Not a sign of health i.e. bak unwilling to extend further credit. Current ratio 1.7 (apparently healthy) but current assets are mainly high inventories whose actual market value may be much lower than their balance sheet value. KEY PROBLEM CASH FLOW. Before financing LA suffered a negative cash flow of 5,6 . it has cash and short term investments of 8,6 to cover these outgoings. Either more finance from MUI or bankruptcy.

1.1 Why has Madonna been so successful over such a long period of time?

- Capabilities (marketing, self promotion, work etich and leadership) - Goal commitment (ambition) - Alliance partners - Continual renewal and reinvention (different phases) - Sex - conventions of modesty and decency - but never trap any fans - attract attentions?

1.2. Does Madonna have a strategy?, if so, what are the main elements of that strategy?

- Corporate and business strategy - Corporate: multiple markets concerts, music videos , tv . books etc Closely linked ( related diversification) Definition: entertainment is the narrowest - Diversification a strength or weakness? Trend focus on core. To work synergies between the markets she competes in which seems to be present in madonnas multimedia strategy. 1. Allows her to exploit her artistic creations across multi media ventures 2. Madonna highly consistent image across her different media ventures. 3. multimedia presence - higher status than her competitiors in individual markets superstart not only singer or actress. Advantage in the field she enter ie.e. music, movie acting, producer etc. Business strategy: - identifies key trends and incoprtating this into her own image and products. - maximum use of controversy (sex) catch interest - renewal of product life cycle ( conherent and complementary package of music, fashion , style) - outsourcing to access R and C to complement her own - maintentance and close control of the key elements IP and creativity Interpersonal relationship / alliances All 4 success factor - can be found in Madonna's career .

2.2 Identify reasons for poor and deteriorating financial performance.

- Key is to disaggregate the financial data ( in order to pinpoint key areas of poor performance with regard to particular business areas, geo regions and operating ratios), then to link the results of the financial analysis with the qualitative info on problems in management, marketing, logistics, and brand development. 1. Disaggregate ROCE = net margin * capital turnover 2. Break down sales margin and capital turnover into as many specific items as possible. in relation to margin, we can look just not at trends in net margin, but also gross margin and various cost ratios: e.g. overhead costs/sales. Operating margin ( op. income/ sales) Gross margin ( gross profit/ sales) Operating (expenses/sales) in realtion to capital turnover we can look not only at asstes turnover but also at more specific capitl productivity ratios: Fixed assets turnover ( sales/av.fixed assets) Inventory turnover ( sales/ av. Inventory) Receivables turnover (sales/av. Debtors) • To evaluate these ratios and numbers benchmark. Main point: even LA gross margins high these are primarly a reflection of LA's very high operating costs (SGA). • Comparisons over time show little improvement. Although fixed asset turnover has increased, this is primarily the result of substantial asset write downs. • Inventory turnover improved 1998 reflect the sell off of the inventories built up during the year to jan 1997. Running down these inventories through markdowns was responsible for the reduction in gross margins in the following year. • Look at the regional picture: dismal recent performance in North America i.e. contribution negative and sales declining. (Cont Europe and Uk better) • KEY DISTINGUISHING BETWEEN MANIFESTATIONS OF PROBLEMS AND THE PROBLEMS THEMSELVES. • Taken together: o problems of sluggish sales, declining sales/sq feet and high inventories point to weak market for LA products. Certainly none of the efforts at repositioning and brining in new designers has show any revitalization. o Balance between furnishings and clothing: Iverson strategy had greater focus on furnishings less subject to fashions swings. While US furnishing have been comparatively strong, US furnishings sales have fallen despite the greater emphasis given to them. o LA core competencies: Traditionally a design based firm. LA was a leader in small volume, high quality manufacture but now UK production high cost. o Retailing: if LA is a crummy retailer then it needs to think about lowering its involvement e.g. more emphasis on wholesaling, switch from own retailers to franchised retailers or licence arrangements. NOTE: LA contribution/asset ratio is much higher in non retail business than it is retail business. Non retail comprises wholesaling and licensing. What we know: manufacturing operations are loss making, but LA is doing well in licensing and franchising business. Maybe LA can do well better by: focus on design and brans and franshiching/licensing retail operations.

4: Ford and the automotive industry Which companies are likely to be most successful over the next five years?

- Step 1 identify the KSFs - Depending on which scenario, different companies can succeed. - Environmental shock: The producers with the best technology and which are quickest to respond/adapt will succeed. (Toyota, Honda) - Reinvention: The producers with the best design and capability will succeed (Europeans: Daimler, Peugeot and Fiat) - Currently, the company that combines multiple capabilities is Toyota.

13.2: In sourcing raw materials, explain why Bird's Eye adopted different arrangements for peas, fish, and meat?

-Peas- Contract Easy to write contract for harvest, quantity, etc. Low asset-specificity for growing peas (land etc.) Incentive for farmers to work hard (needed to get a good harvest) Birds eye does not need to monitor the farmers (would have been expensive) Builds trust over 20 years -Broilers and cod- Tried vertical integration, failed so switched to contracts Well established efficient market (port auctions) Birds eye doesn't have any competitive advantage in this industry

Case 12: 1. What is Eni's corporate strategy?

1. Downstream presence in gas (marketing etc.) 2. Eni is vertically integrated from exploration to retailing 3. No involvement in chemicals 4. In terms of geographical scope, Eni is one of the least international of the oil and gas majors.

Case 12: 1. What is Eni's corporate strategy?

1. Downstream presence in gas (marketing etc.) 2. Eni is vertically integrated from exploration to retailing 3. No involvement in chemicals 4. In terms of geographical scope, Eni is one of the least international of the oil and gas majors. Key Aspects of CEO strategy: 1. Energy company 2. Growth 3. Vertical Integration 4. Financial discipline

14.5: Does the strategy outlined by Connerty make sense?

A phased rollout seems good since there will be a lot of things to learn from the first restaurants OS opens overseas The franchising model seems sound, as they can leverage the local experience for their restaurants, and also spread out the risk. Using existing suppliers for overseas restaurants seems unrealistic and bad since it will probably be much better to use local suppliers for things like meat and other produce.

18: Are there alternative corporate strategies that Immelt should consider? In particular, should Immelt consider breaking up GE (the Wall Street Journal reported increased pressure for a breakup: "For GE, No Lack of Ideas," May 9, 2007), or should he initiate a new drive for growth through acquisition?

Although this could be one way to continue the superior management styles that GE has developed over 100 years in business in separate businesses, it could be the case that it deteriorates without GE as a central unifying identity.

Case 6: Manchester United Glazer take over

Applying analysis to non-business case

14.8: (c) Which country(ies) to enter first;

Probably the markets most similar to the US, like Canada and other markets where US products do well, like Germany and Japan

Case 8: 1. What were the distinctive features of Shell's organizational structure prior to 1995?

Because Shell's structure is so complex and so unusual, it is important to spend some time documenting the central features of the Shell structure prior to the reorganisation. These features include: * The distinction between the legal structure and the management structure of the Group. The legal structure is based on the company entities (the parent companies, the operating companies, and the service companies and their ownership links). The management structure is based on the exercise of management control from the CMD, through the regional, business sector, and functional coordinators, to the operating company heads. * The joint-venture structure. Ownership is by Royal Dutch Petroleum (60%) and Shell Transport and Trading (40%). This structure accounts for the unusual top management organization: a Committee of Managing Directors comprising the executive board members of the two parent companies, with chairmanship of the committee alternating between the two parents. * The large number of nationally based operating companies, each with a tradition of autonomy and strong identity with its host country. (Svenska Shell) * The headquarters structure which, in terms of ownership, was based on the service companies and, in terms of control, was based on the three-way matrix and the roles of the different coordinators. * Although coordination and control are split three ways between the regions, the sectors, and the functions, it is the geographical dimension that is most important in terms of strategic and financial control.

10.B1 Raisio Group and the Benecol Launch How is Raisio reformulating its strategy for Benecol and stanol ester?

Benecol branded products: J&J's marketing area would comprise NA, EU, Japan and China. Raisio would comprise Scandinavia, Baltics, Near East, Far East and Oceania. Within their countries both firms are allowed to expand their product range with the involvement of other companies.

Case 3: US Airlines Industry

Case 3: US Airlines Industry

Case 4 - Ford

Case 4 - Ford

18: ... Organizational changes?

Changes in organization have been dividing GE's businesses into a smaller number of broader business sectors, which makes it easier to combine different products and services and to move into new business areas. Immelt also strengthened marketing functions, moved to new project management, and increased cross-business collaboration.

15.6: Explain why Disney chose to enter Europe through a combination of equity ownership, a licensing contract, and a management contract, as compared with its US theme parks (100% ownership) or with Tokyo Disneyland (pure licensing).

Compared to full ownership (most risky) and 100% license (least risky), the new combination was a way for Disney to get benefits from some control and ability to transfer their resources and capabilities, but without taking too much risk. It also meant that they could earn profits even when the park didn't. Ownership also made it so that Disney could benefit from the increased value of the theme park's land.

14: Main points; What are the critical issues for international expansion?

Critical issues for international expansion 1. Are overseas markets attractive relative to the home market? 2. Is our product offering likely to appeal to customers in the overseas market? 3. Are we able to transfer or replicate our resources and capabilities in the overseas market in order to build a competitive advantage similar to that in our home market? 4. What is the best strategy for entering overseas markets? 5. What other aspects of our strategy and its implementation need to be adapted to the conditions of the overseas market?

14.7: (b) The best mode of entry into foreign markets (e.g. direct management, JV, franchise)

Direct management and JV will give more control, but the need for local knowledge makes franchise the best option

15.9: and (b) Michael Eisner on how Disney's interests in Euro Disney can best be protected and furthered.

Disney has a lot of credibility tied up in the success of Euro Disney and wants it to succeed. The decision to forgo royalties was an important move to give the park a possibility of getting profitable in the long term. It can be good to look at the real estate value of the land which surrounds the park. Disney probably just have to wait and see, and maybe accept a mediocre medium-term performance in favor of a good long-term result.

15.5: .. Disney's competitive advantage in operating a theme park in Europe?

Disney seems to have the possibility to earn above-average returns due to financial resources, massive reputation its characters experience from operating theme parks experience of creating rides etc.

Case 12: 3c) What should Eni's international strategy be - especially in relation to its downstream businesses (Refining and Marketing; Gas and Power)?

Downstream business not really an option in other countries than Italy. Other sectors might be. Has to develop international international management skills.

Case 12: 3b) Should Eni seek to establish itself as a major supplier of electrical power? Should it invest in renewable energy sources (e.g. wind power)?

Electricity is an interesting area of new business for Eni. The Italian electricity market is certainly attractive in 2003 (Italian wholesale prices are among the highest in Europe). However, one of the greatest benefits to Eni from its power generation is that this provides an outlet for gas supplies that are not included in official calculations of Eni's share of the Italian gas market (Eni is being required to lower its market share).

Case 12: Building an international energy Major. General about the case.

Eni is an Italian vertically integrated, international, and diversified company across several industrial sectors. A key challenge of the case is that Eni is currently performing exceptionally well, but still faces challenges.

Case 12: 2. Evaluate Eni's corporate strategy. How well aligned is Eni's strategy with (a) the characteristics and requirements of its industry environment and (b) Eni's resources and capabilities?

Extremely well, especially from E&P and Gas and Power. In both cases, these high returns appear to be the result of industry attractiveness rather than any competitive advantage held by Eni. * Eni's sectoral allocation of resources: E&P: Attractive because of industry Chem: Exiting Chemicals is justified Downstream Gas: Highly profitable Electricity: Exciting prospect * Vertical integration: Oil: Not sure it adds value, very difficult. Better to spread risk Gas: Makes sense, Technical economies and economies of scale and distribution. Oilfield services: Key issue, difficult to answer. Bad: Incentives. Good: Helpful early in the process * International Scope: ni has done well in locations that are difficult either physically (offshore) or politically. Also experts in exploiting south Mediterranean and supplying north Mediterranean.

Case 3: 4. What is the outlook for industry profitability during the five-year period 2007-11?

Factors for sustaining profits: - Balance between capacity and demand growth. - Industry consolidation - Consolidation -> increases incentives for entry - Benefits of cost-cutting for major airlines? Depends on unions. Porters 5 forces is a framework. Ultimately, predicting the net effect of counteracting forces is a matter of judgment.

15.2: What to say about the theme park industry as a whole?

Five forces analysis. We find that Few players in most markets Highly differentiated offerings Large scale, capital intensive, mostly fixed costs Many substitutes Entry barriers are very high

13.1: What should Birds Eye have done in 1979?

Focus brands Focus factories Consolidate distribution De-integrate

14.3: What are the key elements of the international expansion strategy being proposed by Hugh Connerty?

Foreign entry through franchising Rapid but sequential expansion Use existing suppliers to supply overseas restaurants

Case 8: Organizational Restructuring within the Royal Dutch Shell Group. General about the case.

General about the case: Shell did a restructuring of the company. In the old Shell, the countries and regions were dominant. However, industry change has increased global integration and reduced the importance of vertical integration. At the same time the critical strategic priorities for Shell are to boost financial performance through cost reduction. What does this mean for the balance between centralized/decentralized powers?

Case 11: 3. What strategies and what circumstances have allowed newcomers to unseat established market leaders?

Given the presence of network externalities, it would seem that once a company has established market leadership, positive feedback will ensure the persistence of market leadership. Yet, we have seen entries due to0: - Technological Advantage - Demographic Change (Cyclical) - Incubents screw up (Nintendo)

18: What can we say about How to compete?

Immelt changes the strategic focus to technology and customer relationships, which is a departure from Welch's focus. It is somewhat surprising for a conglomerate such as GE to shift to such a focus, but Immelt seems to want to focus on serving customer needs by combining the services from different parts of GE.

14.2: Why has the strategy been so successful?

In one word: fit. OS have strategic fit when it comes to its business environment, its resources and capabilities, and is internally consistent Business environment: Low competition in suburbs, casual and fun atmosphere fits the preferences of middle-class Americans Resources and capabilities: Locations, human resources, and corporate values fit its original strategy. Chairman Chirs Sullivan has an innovative and successful approach to restaurants. Internal consistency: Suburban locations → cheap real estate → restricted opening hours are viable. Suburban locations → encourage low rates of employee turnover due to fewer people in the area, and customer loyalty. Partnership structure → motivates employees and allows decentralized decision making.

4: Ford and the automotive industry What should Ford do to improve its profitability over the remainder of the decade?

Inget svar - Kanske segmentering? Om man använder Five Forces grejerna och utgår från scenarios så kan man lista ut det.

10.A1 Raisio Group and the Benecol Launch What alternative strategies are available to Raisio in 1997?

Inhouse development, Joint venture, or Licensing/Alliance

4: Ford and the automotive industry During 1965-72 the average return on equity of the world's 12 biggest automakers was about 10%; during 2000-6 it was about 4.2%. What changes in the structure of the world auto industry have caused profitability to decline?

Internationalization reduced seller concentration in national markets. US was dominated by the big three, Italy by Fiat etc, globalization enabled everyone to play on every market. Market saturation was indicated by the declining trend of production in the US, Europe and Japan. Demand was reduced by the fact that cars are lasting longer Excess capacity encouraged aggressive competition, including price competition Increased product development costs don't necessarily lead to reduced margins. Big NPD costs are the major source of economies of scale. Every producer attempts to expand sales in order to spread the costs of product development, which leads to intense competition.

14.9: (d) Whether Connerty is the right person to head the International Division.

It could be the fact that Connerty lacks experience of overseas expansion and is too confident in the OS concept.

Case 3: 2. To what extent can the industry's low average profitability during this period be attributed to the structure of the industry? Which of Porter's five forces has had the biggest impact in depressing industry profitability?

Its mixed. Generally industry structure is bad for profitability, hard to differentiate for competition. Supplier Power: Gen. High. (Airports and Plane manufacturers). Depends on supply on demand. Industry rivalry: Very high. Entry: Mixed. Some capital, not too much. A bit difficult with organisation of airports and gates. Buying: Big, increasing for most routes and customers (and pressure from travel agencies). Combined: Internal rivalry driving competition but remember these forces complement and to some extent reinforce each other. The industry: Loosely defined and contextual

18: How great are the implementation problems of Immelt's strategy? To what extent does Immelt need to develop a new approach to organizational structure and management systems?

Key issues include the new need for complex coordinating between the different businesses in Immelt's strategy, which emphasizes cross-business collaboration. This integration also reduces autonomy, which could hinder entrepreneurial activities and flexibility. The added complexity that this strategy will bring could mean that GE must decrease complexity somewhere else, for instance by reducing the scope of its business activities.

4: Ford and the automotive industry As a result of these changes, is the industry likely to be more or less profitable over the next five years as compared with the last five?

Man kan bryta ner framtiden i 3 möjliga scenarion: 1. Continuity: Technology progresses linearly and key drivers continue to be scale economies and problems of excess capacity 2. Environmental shock scenario: Pollution and congestion results in restrictions of private cars, increased public transport and emergence of electric cars 3. Re-invention scenario: New approaches in design and development radically reduces NPD costs and offers new opportunities for product differentiation. Use the scenarios to see how they affect the 5-forces.

13: Why did specialized intermediaries emerge?

Market size expands in 40-60s, growth slows 60-80s Reduced uncertainty Bigger market and more players reduce asset specificity

18: Assess the potential for these changes to put GE on a track of increased profit growth and increased shareholder return

Much of what Immelt has done seems to have a high strategic fit. It seems to fit with GE's business environment by focusing on new growth markets in different countries. It seems to fit with its resources and capabilities since it leverages its broad access to technologies and its vast set of customer relations. The different changes also show a high level of internal consistency.

14.4: Should Outback Steakhouse expand internationally, or would it be better to expand through starting new restaurant chains within the US?

Must look at the two main drivers for profitability, industry attractiveness and competitive advantage. Industry attractiveness: Since many foreign markets have less saturated restaurant markets than the US, this seems interesting. Competitive advantage: This seems less promising than the industry attractiveness. Firstly, it's not clear that OS's offering of an Australian themed steakhouse will be as attractive in Tokyo or Paris. It is neither obvious that suburban locations will work as well, as suburbs in some cities (like Paris) often are home to the poorer part of society. Further, the customer service which is central to OS's capabilities is culturally contingent, and not certain to work in other locations. In terms of the ability to transfer and leverage OS's current resources and capabilities, opening a new chain of restaurants in the US seems more promising.

10.A2 Raisio Group and the Benecol Launch What are relative merits of the different approaches? - Stanol ester

Systematic structure by using a framework that identifies the alternative strategies and criteria for selecting between them. Bild

13: Did a vertically integrated producer have a competitive advantage over more vertically specialized suppliers of frozen foods during the early 1980s?

No Too broad scope High-cost manufacturing High-cost distribution

14.1: What are the principal features of Outback Steakhouse's strategy in the US?

Outback Steakhouse's strategy is different from what is seen as industry standards. Key features of their strategy are - Quality of food (almost everything is prepared from scratch in the restaurants) - Casual, fun ambiance (not much floor space devoted to dinner tables) - Quality service thanks to motivated, well-trained staff (who receives relatively high pay) - Alignment of incentives between store managers and the company through a partnership structure

13.1: Why did Brids Eye develop as a vertically integrated producer?

Pioneering - No existing suppliers; even had to invent some things - Had to demonstrate market potential - Need to invest ahead of demand Exploit scale economies Build barriers to entry: high capital costs made it difficult for others to replicate Coordination requirements - Peas processed within 90 minutes of picking - Deliver quality product throughout the chain - Need to minimize variation during distribution and storage

15.4: .. Specific factors for a theme park outside Paris?

Pros were accessibility to a very large population within driving distance Paris is a major tourist attraction local population can support workforce generous governmental support, Disney was given a large area of land to a good price Cons The weather (cold winters, etc.)

10.B3 Raisio Group and the Benecol Launchterm-25 What are relative merits of the different approaches? - Benecol

Systematic structure by using a framework that identifies the alternative strategies and criteria for selecting between them. Bild

14.6: If Outback is to expand internationally, advise Chris Sullivan on: (a) The optimal rate of international expansion;

Take an experimental and sequential approach to test different approaches to new markets

Case 6: What should Glazer's strategic priorities be for Manchester United? What targets should he establish for his management team?

Should their focus be on financial returns or on boosting the sporting performance of the team? "Both" is not a good answer: improving Man United's team performance is likely to require significant expenditure on new players that will cause short-term cash flow and profits to deteriorate. The relationship between sporting success and financial performance is very high. However, it is a game and money does not guarantee success. Success, does however in some way guarantee financial performance.

15.5: .. Financial projections?

Showed good figures, but maybe it's difficult to transfer numbers from US and Japan operations to Paris. Could be too positive projections Missed the fact that the land itself could gain massive value over time

Case 12: 4. What organizational changes should Mincato pioneer, especially with regard to organizational structure, management systems, and corporate culture?

Some of the key priorities appear to be the following: * Internationalization * Structure * Openness, flexibility, and decentralized initiative

10.A3 Raisio Group and the Benecol Launch What are the sources of the problems that the Benecol launch has encountered? Could these problems have been anticipated?

Sources of the problems: term-23 Took a long time to launch the product on international markets due to health regulations etc. (Lost profit). Postponed launch in the US market lead to postpones in Europe, since they focused on the US. Competition started to emerge quickly, first by Unilever (with a cheaper product) in the US, then followed by a number of competitors (substitutes) Instead of becoming a breakthrough product they become one of a number of products that reduced cholesterol. Technical prediction (lead time) was correct but commercial prediction was wrong. Anticipation: Optimism was caused by the success in Finland. - Lead time estimation was correct. + Regulations - They did a smart move by joining with J&J that has knowledge regarding regulations etc. + J&J was inferior to Unilever when dealing with producing, marketing and distributing food products. - Pooled to much risk by exclusive licensing to J&J?

10.B1 Raisio Group and the Benecol Launch How is Raisio reformulating its strategy for Benecol and stanol ester?

Stanol ester production: Raisio renegotiated its plant sterol purchasing contracts and withdrew from stanol projects in Chile and New Zealand. Key feature was that the new strategy focused on supplying stanol ester as an ingredient.

4: Ford and the automotive industry How is the structure of the world automobile industry likely to change over the next five years?

Stock market is pessimistic - doesn't anticipate profitability Factors that can impact industry profitability: - Increasing factors Mergers: Increased concentration, reduction of excess capacity Increasing world demand, China, India. High fuel prices? New opportunities for product differentiation, El & AD/ADAS? Escapes from commoditization? - Decreasing factors Continuing overhang of excess capacity: Continued investments in plants Expansion of emerging market producers: Growing presence in international markets by producers from China, India and övrigt Increased substitute competition: Congestion and pollution increases use of public transport, regulates use in urban areas Increased power of suppliers: Component manufacturers consolidating and controlling increasing proportions of automotive tech Increased power of buyers: Emergence of powerful distributors outside the traditional dealership system. Internet Gör ett Five Forces för att kolla dessa faktorerna

Case 11: Rivalry in Video games. General about the case

The case outlines the competitive situation in the video games hardware industry at the beginning of 2007, the peak of competition for the new generation of video games.

15: Advise (a) Philippe Bourguignon on what further actions he should take to improve the financial viability of Euro Disney and realize its potential for shareholder return

The situation looked bad after the first years in business, both due to external factors such as the Gulf war breaking out during the launch which affected the economic environment and due to other like the expensive deal the company had made with Disney, along with low visitor numbers, especially during winter. Philippe should probably keep the park open all year but needs to consider whether or not to continue with a second park. He needs to boost attendance and lower cost, but this could be difficult if he wants to keep high standards.

Case 11: 4b) What does Sony need to do in order to retain market leadership?

The success of PS3 will depend on the appeal of the games developed for it. Exploit Blue ray. Exploit old games and new games from Sony movies.

15.1: How should we evaluate Disney's decision to build a theme park in Europe?

To evaluate this, we first look at the theme park industry as a whole, then at the theme park industry in Europe, followed by Disney's competitive advantage in operating a theme park in Europe, and finally more specific aspects of having a theme park outside Paris.

Case 3: 3. What factors have caused the upturn in profitability since 2004/5? To what extent have the strategies of the airline companies contributed to the recent improvement in financial performance?

To explain the revival in airlines' profits from the bleak period September 2001 through 2005, the key external factor appears to be strong growth in the demand for air travel. However, the biggest influence may be the strategies pursued by the airlines. These included: Major Strat. From airlines: Capacity reduction M&A Product differentiation Regional Concentration Forward Integration

15.7; In what ways did Disney adapt to a French and European context? How effective was this adaptation? Should Disney have adapted more or less?

Two main factors; product adaption and management adaption Product adaption: Difficult to know how much of the American popculture to keep, as this could be something the Europeans disliked, at the same time as it was one of the main factors of the Disney experience. Because of this, keeping the design and the rides exactly as in the US was probably the best choice. The big question was regarding ancillary services like food and accommodation. Some adaption was made, which drove up costs. Difficult to say how to adapt management, but Disney did, of course, have to comply with French law.

14; When should we vertically integrate?

Vertically integrate when - There are asset-specific investments required. This is often the case at the beginning of an industry when there are few companies that can share resources. In this case, the cold storage next to the processing plants was very asset-specific and became integrated. - Uncertainty leads to the inability to write long-term contracts. - Difficult when it came to cold storage, easy when it came to peas. -Easy monitoring and/or effort of employees does not substantially affect performance. In this case, the monitoring of pea farmers would have been difficult (got contracted), while workers in cold storage only performed simple tasks (integrated). (Use markets when above does not hold)

Case 3: 1. Assess the overall financial performance of the US airline industry during the past 20 years.

Very bad. Only southwest makes economic profit.

18: What were the principal strategic changes introduced by Immelt at GE?

We begin by analyzing this in the light of the questions of where and how GE will compete

10.B2 Raisio Group and the Benecol Launch What advice would you offer Raisio concerning its new strategy?

What have they succeeded with? They expanded their internal development market. Switched focus from final products to stanol ester ingredient. Fits with key resources and capabilities Positions them as a supplier rather than competitor to food firms Permits greater diversity in which stanol ester will be used. Advice: Ingredient-focus will make them face harsher conditions regarding regulatory approval → Relationship with J&J will be continuously important Shape of ingredient strategy will be formulated precisely. Maybe adopt the Benecol brand for its stanol ester ingredient. Maybe offer other ingredients apart from stanol ester.

Case 11: 4a) What should Microsoft do to gain market leadership?

Xbox 360 strategy should include an emphasis on online gaming and downloadable software (possibly on a subscription basis). MS's main disadvantages have been weaknesses in its games offerings (relative to Sony).

Case 12: 3a) Should Eni divest its chemicals business? What about its engineering, construction, and oilfield services subsidiaries?

Yes. Plans to exit chemicals are also justified by similar considerations of industry attractiveness - petrochemicals have been a low-profit industry in recent years. Moreover, Eni has few advantages in chemicals - it lacks scale, global reach, and cost efficiency (its feedstock is relatively high cost); nor does it possess any particularly strong proprietary technologies

2.3. 3. What strategy recommendations would you offer to Mr. Cheong that would best serve the interests of L A's shareholders?

o Cash flow crisis must start to generate positive cash. o SHORT TERM: Closing loss making operations, selling off assets, and minimizing investments in fixed and current assets are essential in the short run. If cash flow before financing is likely to be negative into 1999, then provision for financing must be made. Short term critical issue is survival ! Must cut costs and eliminate the heavy loss making parts of the business. Closing or selling North American retail overwhelming, but manufacture? Despite the declared intent to shrink or exit entirely from manufacture there are still 582 employees in manufacture. Cost side there appears to be considerable scope for economies: LA overstaffed. Despite all closures if shops still high staff. Look unlikely that they can staunch the cash outflow during the current year so how to finance the continuing negative cash flow? One option: MUI further equity injectioterm-60n. One problem with that: as MUI increases its equity stake, it may run foul of rules that require MUI to buy out all the minority shareholders. o LONG TERM: Traditional core competencies no longer deliver value, never developed excellence as retailer. So what strengths? If it is just the brand and LA continued appeal to comparatively small customer segment mainly in Europe, then this suggesrs a very different type of operation from the present one.

7.2 What progress has Kodak made? (does kodak possess the R and C needed to compete in the market for digital imaging products)

• Importance of brand name and its global distribution system. Discuss the brand name - associated with yellow cartons of film. How strong is the brand in relation to digital products and how does it stack up against Sony and HP? On distribution side: if photo become digital and based on PC systems then it will bypass Kodak channels of distribution. If Kodak is to gain vital leverage from its brand and distribution presence, then important that the mass market transition to digital imaging is gradual i.e. allowing them to exploit its market presence while buying time to develop digital imaging capabilities. By allying with Micro etc heavy investments, they endeavored to build a significant online presence. • Strong capabilities in technology, i.e. linking chemical and digital aspects of color management etc. same time faces rivals .Critical issue to identify its key selective strength and build a powerful position in terms of technology and standard setting, while relinquishing other areas of technology to more powerful and established rivals. • Reputations and relationships. • Critical worry is whether Kodak has the capabilities for fast cycle product development. Its market dominance has allowed it to dictate the pace of tech change. But it is moving into a sector with shorter cycles. Different context with digital.

7.4 What advice would you offer Dan Carp?

• Make good sense: narrowing of projects, focus on certain stages in value chain, using alliances , differentiated approach to professional and consumer market. BUT faces high competition. • If digital imaging continues to deliver cash and Kodak continues to be battered by Fuji in the market of film, then they could be in a rough ride. • If you rather suppose that kodak is successful in building a leading position in the market for digital products, it could be that the intensity of competition would lead to no good profit. This leads to: - If kodak fail to establish competitive advantage in digital imaging it fails - If Kodak succeeds in building competitive advantage but fails to generate profits it may whish to consider retrenchment. Thereforterm-10e, need to assess the attractiveness of different markets they competes in. Higher profits in Health and Commercial than in Photography. - If primary goal is profit ahead of growth and vision then exit consumer market in favor for health market. In meantime let traditional photo, film and paper and chemicals be a cash cow.

7.3 What challenges does Kodak face and what are its prospects of becoming a leader in digital imaging?

• Under Fisher and Dan Carp - viable strategy for building its presence in digital and imaging. By focusing on Tech advanced products it has potential to use an ambitious program of product development to push its acquisition of digital technologies, while producing revenue from high price products. • In consumer segment, its strategy of gradual evolution has the potential to combine the best aspects of chemical and digital imaging. • Challenge is if they can develop digital capabilities as fast as its rivals and whether it can own technical standards in key stages of the value chain. • Biggest concern: ability to adapt its new product development and new product marketing processes from the time scale of the east coast chemical industry to that of silicon valley. • Fast cycle product development requires entrepreneurial, collaborative, risk seeking culture - HARD for 100 year old company.