MGMT Ch. 6 Assignment

Redbox is an example of a company with a __________ strategy.

-Cost-Focus

__________ is the best example of a company with a Cost-Leadership strategy.

-Walmart

"Enjuba exists to better represent the quality and handiwork of the African people through fair trade that benefits the producers, customers, and society at large." Bill and Vance complete an assessment of the market. Bill and Vance need to develop a one- to five-year strategy that communicates Enjuba's general goals as well as how the goals will be achieved. Bill and Vance intend to put their plan into place and implement it by overcoming any market resistance. Bill and Vance must consistently review the market offering against their original plan to ensure that their product is unique and being produced and marketed effectively.

-Step 1: Establish the mission, vision, and values statements -Step 2: Assess the current reality -Step 3: Formulate corporate, business, and functional strategies -Step 4: Strategic implementation -Step 5: Maintain strategic control

The firm's resource does not allow it to exploit an opportunity or neutralize a threat. The firm's resource is not controlled by just a few firms, in other words, several competing firms exist. The firm's resource is not particularly costly for other firms to imitate. The firm's resource is valuable, rare, and costly to imitate.

-Firm will be at a competitive disadvantage -Firm will be equally competitive -Firm will have a temporary competitive advantage -Firm will have a sustained competitive advantage

A resort company caters to couples without children. Vacationers are guaranteed that they will not be annoyed by loud and disruptive children. This company is using which of the following strategies?

-Focused-Differentiation

High growth rate, high market share—a definite keeper Risky new ventures of which some will take off, others will not Have good market share, but slow growth; income can be used for other winners or potential winners Slow growth, not much market share—should get rid of these

-Stars -Question Marks -Cash Cows -Dogs

Apple introduced its Homepod to the home sound system market that had been previously dominated by Sonos. Walmart demanded that all its vendors cut their prices by 15 percent. If you don't like the price of something at your local store, you can probably find it online with two-day shipping at a lower price. Consumers are drinking less diet soda in favor of things like flavored zero calorie water and fresh juices. On Amazon, the average product's cost changes every ten minutes based on data the company collects including rivals' prices.

-Threat of New Entrants -Bargaining Power of Suppliers -Bargaining Power of Buyers -Threat of Substitute Products or Services -Rivalry Among Competitors

If LaCroix's management team focuses on what competitors such as Coca-Cola, PepsiCo, and Nestle are doing, they would be portraying what step of the strategic-management process?

-assessing the current reality

LaCroix's popularity stems from a non-corporate, "underground" feel that it provided. This value led to growth across a wide variety of consumers. Based on what you know about competitive strategies, what type did LaCroix utilize for its early success?

-differentiation

Which strategy requires a high level of understanding of what consumers value?

-differentiation

Critics of LaCroix believe it is pursuing a ______ strategy when it should be pursuing a ______ one.

-stability; growth

The case mentions that making carbonated water isn't particularly difficult. Based on Porter's model for industry analysis, this increases which competitive force?

-threats of new entrants

Based on what you know about SWOT analysis, LaCroix's distribution network would be categorized as which of the following?

-weakness

1. What business are we in? 2. What amount should we invest in employee development? 3. What products and services shall we offer? 4. What's the best way to integrate our department's latest innovation with older versions of the product? 5. How should our division market our new program? 6. What sum will we allocate toward facilities expansion? 7. Which joint ventures and/or acquisitions should we pursue? 8. How much should we set aside for new product development? 9. How should we structure compensation for those working on our team's new initiative?

1.Coporate-level strategy 2.Business-level strategy 3.Coporate-level strategy 4.Functional-level strategy 5.Functional-level strategy 6.Business-level strategy 7.Coporate-level strategy 8.Business-level strategy 9.Functional-level strategy

1. The goal of this strategy is to offer unique products or services of superior value to a wide target market. 2. The goal of this strategy is to offer unique products or services of superior value to a narrow target market. 3. The goal of this strategy is to keep the costs, and therefore prices of a product or service low and target a wide market. 4. The goal of this strategy is to keep the costs and prices of a product or service low and target a narrow market. 5. Dollar Tree sells all items for $1 and caters to middle-class customers. 6. Waffle House has over 2,000 locations, keeps a simple menu that rarely changes (and hence spends little on R&D to develop new menu items), and most customers' tickets are around $7 or $8. Waffle House appeals to a broad range of consumers, including truck drivers, business travelers, college students, and families. 7. Afterglow Cosmetics sells cosmetics that are manufactured in a gluten-free facility, and all of its products are certified gluten-free. Afterglow cosmetics prices are in line with other high-end cosmetics brands. 8. Starbucks serves premium quality coffee beverages and food items and has over 28,000 locations across the globe. The company also offers bottled versions of some of its products in grocery stores and has a branded liqueur through its partnership with Jim Beam.

1.Differentiation strategy 2.Focused differentiation strategy 3.Cost leadership strategy 4.Cost-focus strategy 5.Cost-focus strategy 6.Cost leadership strategy 7.Focused differentiation strategy 8.Differentiation strategy

1. The research and development department and the marketing department make some alterations to a current product with the intention of attracting new customers. 2. After the recent recession, the company sold off vacant buildings. 2. After the recent recession, the company sold off vacant buildings. 4. The recent expansion has been successful, but we don't want to spread ourselves too thin. 5. After recent expansion, the company wants to avoid growing too quickly. 6. The top managers are considering a merger.

1.Growth Strategy 2.Defensive Strategy 3.Stability Strategy 4.Defensive Strategy 5.Stability Strategy 6.Growth Strategy

1. Luxury fashion brand Coach, Inc. acquired Kate Spade New York—another luxury fashion and lifestyle brand—in 2017. 2. Fast fashion retail giant, Zara is able to get designs from the catwalk to the retail store at incredible speeds. Zara can do this because it has acquired most of its supply chain, including designers, manufacturers, and distributors. 3. Clorox Company, best known for bleach and cleaning products, purchased Burt's Bees, best known for its natural beauty and personal care products, in 2007. 4. In 2018, Novartis, a Swiss multinational pharmaceutical company, acquired Avexis, a clinical-stage gene therapy company. 5. In the 1930s, Mars Incorporated (maker of Snickers and other popular candies) purchased Chappell Brothers canned dog food company. Much of Mars' business today comes from pet food brands such as Whiskas and Pedigree. In 2017, Mars acquired VCA, a company that owns hundreds of dog day care facilities and animal hospitals, to add to its Mars Petcare portfolio. 6. In 2018, Boeing aerospace company announced its plans to buy KLX, a company that distributes aerospace fasteners and consumables.

1.Related Diversification 2.Vertical Integration 3.Unrelated diversification 4.Related Diversification 5.Unrelated diversification 6.Vertical Integration

1. The R&D program at the company produces world-class products. 2. Our product is targeted to young professionals under 35 years of age. That group is growing. 3. The equipment the company owns is last generation and does not have the latest technology. 4. There have been several up and coming companies that are beginning to enter our market space. 5. Word is that a new highway is being built in the next couple of years, making it easier to transport our products from the factory. 6. The employees who work for us are highly skilled and leaders in their field. 7. Management does not provide a big budget to support the world-class staff that work for the company. 8. The company uses a fair amount of short-term debt financed through the bank. Economic projections indicate that interest rates may rise in the future and credit will be more difficult to obtain.

1.Strengths 2.Opportunities 3.Weaknesses 4.Threats 5.Opportunities 6.Strengths 7.Weaknesses 8.Threats

1. Rex is participating in a job rotation program at his new workplace, which gives him the chance to get to know as many aspects of the company as possible. 2. Paz has been an attorney for ten years and decides that she can stop attending annual continuing education seminars now that she knows everything there is to know about her job. 3. Dahlia is a recent college graduate at her first architectural job. She's just getting started financially and decides not to join her field's major professional association because she thinks that it's not worth the annual fee. 4. Idris makes a commitment to have coffee with one person he doesn't know well at his organization each week so that he can learn about their history with the company.

1.Understand the Business 2.Broaden Your Task and Functional Knowledge 3.Understand the Business 4.Broaden Your Task and Functional Knowledge

10/10

100%