Unit 4 Case Studies Flashcards Preview

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Flashcards in Unit 4 Case Studies Deck (49):
1

Whitbread
Economic Environment

Prospered during recession
Premier Inn a counter-cyclical good, where cheap was advertised, tailored advertising increased awareness and sales.

2

Thorntons
Economic Environment

Luxury retailer, recession sales decline. Cut costs lower choco price meeting. Cost leadership provided supermarkets with own labelled.

3

Jaguar Land Rover
Economic Environment
Globalisation
Retrenchment

Market Development, new products increase demand. Moved to growth markets. 1.51bn profit. Recession moved to growth area. Cut 9000 jobs moved to china withdrew manufacturing from Britain to China.

4

Apple
Globalisation

22 Fake Apple stores same everything. Bought cheap sold high high demand.

5

Starbucks
Globalisation/Joint Venture

TATA INDIA, 50:50 venture, 50 locations offering Indian style products, TATA know consumer preferences = good synergy.

6

Rank Leisure
Political/Legal

Ban on smoking impacted Bingo sales, go outside instead of casino games.

7

Dyson
Political/Legal

Minimum wage little impact, low cost Malaysian work.
Patent/trademark/copyright develop and patent new idea crucial.

8

GSK
Political/Legal

Minimum wage little effect as high skilled workers. More capital intensive industry.
Patent/trademark/copyright develop and patent new idea crucial.

9

Domino's
CSR

30 min guarantee free pizza.
People hit by speeding vehicles and compensation needed to be paid. No significant impact on customer loyalty.

10

Unilever
CSR

Tackle deforestation and climate change. Don't publish frequent accounts, encourage long term investment. Improve sustainability good for long run business.

11

Starbucks
CSR

Fair Trade agreements with suppliers. Ethically diverse workforce. USP higher prices may increase morally conscious demand.
Tax avoidance, no tax 2009-2012, use retained profit, became unpopular some moved to Costa.

12

HMV + Waterstones
Tech Environment

Online retail, Amazon and Itunes reduced demand for CD's/Books.
Made redundancies and focused on store experience/online for Waterstones
Celebrity appearances/gigs in store HMV.

13

Ebay
Tech Environment

Millions of merchants in 190 markets 24 currencies.
Easy process encouraging more buyers/sellers.
First mover advantage chance to establish economies of scale.

14

Uber
Tech Environment

Disruption where small business can challenge established businesses.
Quick and simpler online service in comparison.
Competition have lost trade significantly.

15

Facebook
Competitive Environment

Increasing substitutes increasing competitive rivalry, low barrier to entry allowing entrants cheap to create a website. Competitors innovate and grow increasing rivalry.

16

Ebay and Paypal
Competitive Environment

Difficult to get brand recognition and trust, reducing threat of competitors. High barrier to entry due to trust, established firms more few dominant firms like Amazon, Alibaba and Ebay.

17

Automotive Industry
Competitive Environment

Competitive rivalry high foreign competitors price, quality / innovation. Threat of new entrants low – brand recognition and price to get market share. High capital investment, manufacturing facilities distribution network.
Threat of substitutes low, high sunk costs.

18

Lego
Organic growth

Aim to be best not biggest. Shareholder family only looking to long term future. Heavily invest in innovation to secure future and grow.

19

BSkyB
Organic Growth

Long-term objective of growing its household subscriber base to 10 million households/customers. Grow organically by focusing on investment in content / innovation.

20

Sainsbury's/Argos
Takeovers

Access to Argos's vast delivery network. After takeover shares increase and cost saving measures improve profitability.

21

RBS/ABN AMRO
Takeovers
Contingency Planning
Strategic Decisions

Unsuccessful biggest hostile takeover in history. Lots of sub-prime mortgages with massive debt and more money left forced administration. Unsuccessful plan ignored profit warnings and took over. Failure to use scientific method poor decision.

22

Kraft/Cadbury
Takeovers

Successful takeover, broader geographical area make use of distribution in other countries like South America where previosuly Kraft had little infrastructure.

23

Uber/Spotify
Joint Venture

Uber - new product existing market
Spotify - existing product new market.
Personalised taxi service increase demand and good advertising

24

Amazon/Morrisons
Joint Venture

Morrisons products available on Amazon, wholesale supple to amazon increase both firms sales.

25

Apple 1997
Retrenchment

Steve Jobs said no strategic plan. Changed board of directors ,made 'Meaningful partnership' with Mircrosoft.

26

Tesco
Retrenchment

Reduce range and cost of product match Aldi/Lidl. Sell Fresh and Easy at loss.

27

Apple 1997
Corporate Planning

Mission statement – getting Apple healthy
Objectives – profitability and sales targets
Can link to every case study, Unilever, Tesco ect.

28

Johnson and Johnson
Contingency Planning

Successful plan to protect people against faulty Tylenol. Alerted consumers and national withdrawal of products. High costs.

29

Toyota
Contingency Planning
Strategic Decisions

Unsuccessful plan, accelerator problem 26 crashes. Denied claims it was them continually and changing the problem causing it. Wanted to be largest and didn't take notice of problems lack of checking faultiness. Conflict Drift rejected information. Apollo culture decisions powerful centre unwilling to tell truth.

30

John Lewis
Leadership Styles

Apollo culture, Role. Decisions democratic. Porter’s Generic differentiation: high satisfaction Herzberg – communication, responsibility from leadership style) means good quality customer service = higher prices. Likely to meet corporate objective profit maximisation stakeholders happy.

31

Amazon
Leadership Style

Authoritarian leadership, clear vision contributions towards vision everything everywhere store. Means become cost leaders lean production/economies of scale.

32

Valve
Leadership Style

Leaders not required for success. Laissez faire leadership staff manage business. Employees and interested projects increase productivity. Flat organisational everyone equal. Important for innovation.

33

Leadership evaluation

Leaders provide direction for business. Depends on size Amazon / John Lewis same leadership style as Valve, no common vision. Works for Valve employees highly skilled / creative. Valve philosophy hiring. Amazon / John Lewis introduced, unlikely success people resistant change.

34

Coca-Cola
Strategic Decisions

Scientific not successful. Availability drift focus on available data wrong hypothesis. Sales decreased lost market share to Pepsi. Long term not affected customer loyalty.

35

Poundland
Organic Growth

Clear focus on a constantly rotating product range at a single price point. The organic strategy was to open stores in suitable locations and repeat offering heavily discounted products.

36

Economics Environment

Whitbread
JLR
Throntons

37

Globalisation

JLR
Apple
Starbucks

38

Political/Legal

Rank Leisure
GSK
Dyson

39

Corporate Social Responsibility

Unilever
Starbucks
Domino's

40

Tech Environment

HMV + Waterstones
Uber
Ebay

41

Competitive Environment

Facebook
Ebay/Paypal
Automotive

42

Organic Growth

BSkyB
Poundland
Lego

43

Takeover/Mergers

Sainsbury's/Argos
RBS/ABN AMRO
Kraft/Cadbury

44

Joint Venture

Starbucks/TATA
Morrisons/Amazon
Uber/Spotify

45

Retrenchment

Apple
Tesco
JLR

46

Corporate Planning

Apple
ANY BUSINESS

47

Contingency Planning

RBS/ABN AMRO
Johnson and Johnson
Toyota

48

Strategic Decisions

RBS/ABN AMRO
Coca-Cola
Toyota

49

Leadership

Amazon
Valve
John Lewis