STRAMAN CASE PROBLEMS FOR GROUP PRESENTATION.

PROF. FRED S. CABUANG

CASE 01 - MYSTIC MONK COFFEE

1. Has Father Daniel Mary established a future direction for the Carmelite Monks of Wyoming? What is his vision for the monastery? What is his vision for Mystic Monk Coffee? What is the mission of the Carmelite Monks of Wyoming? 2. Does it appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision? 3. What is Father Priors strategy for achieving his vision? What competitive advantage might Mystic Monk Coffees strategy produce? 4. Is Mystic Monk Coffees strategy a money-maker? What is MMCs business model? What is your assessment of Mystic Monk Coffees customer value proposition? its profit formula? its resources that enable it to create and deliver value to customers? 5. Does the strategy qualify as a winning strategy? Why or why not? 6. What recommendations would you make to Father Daniel Mary in terms of crafting and executing strategy for the monasterys coffee operations? Are changed needed in its long-term direction? its objectives? its strategy? its approach to strategy execution? Explain.

CASE 02 - COMPETITION AMONG THE NORTH AMERICAN WAREHOUSE CLUBS: COSTCO WHOLESALE VERSUS SAMS CLUB VERSUS BJS WHOLESALE
1. What is competition like in the North American wholesale club industry? Which of the five competitive forces is strongest and why? Use the information in Figures 3.3, 3.4, 3.5, 3.6, and 3.7 (and the related chapter discussions on pp. 41-53) to do a complete five-forces analysis of competition in the North American wholesale club industry. 2. Do all three warehouse club rivalsCostco, Sams, and BJs Wholesalehave highly similar strategies? What differences in their strategies are apparent? Does one rival have a better strategy than the others? Does one rival have a somewhat weaker strategy than the other two? 3. Which of the three warehouse club rivals has been the strongest financial performer in recent years? Support your answer with calculations based on the data in case Exhibits 2, 6, and 7. Use the financial ratios presented in the Appendix of the text to help you with the needed number crunching. 4. Does the data in case Exhibit 5 indicate that Costcos expansion outside North America (the U.S. and Canada) is financially successful? Why or why not?

STRAMAN CASE PROBLEMS FOR GROUP PRESENTATION.

PROF. FRED S. CABUANG

CASE 03 - COMPETITION IN ENERGY DRINKS, SPORTS DRINKS AND VITAMIN-ENHANCED BEVERAGES

1. What are the strategically relevant components of the global and U.S. beverage industry macroenvironment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain. 2. What is competition like in the alternative beverage industry? Which of the five competitive forces is strongest? Which is weakest? What competitive forces seem to have the greatest effect on industry attractiveness and the potential profitability of new entrants? 3. How is the market for energy drinks, sports drinks and vitamin-enhanced beverages changing? What are the underlying drivers of change and how might those forces individually or collectively make the industry more or less attractive? 4. What does your strategic group map of the energy drink, sports drink, and vitamin-enhanced beverage industry look like? Which strategic groups do you think are in the best positions? The worst positions? 5. What key factors determine the success of alternative beverage producers?

CASE 04 - NETFLIXS BUSINESS MODEL AND STRATEGY IN RENTING MOVIES AND TV EPISODES
1. How strong are the competitive forces in the movie rental marketplace? Do a five-forces analysis to support your answer. 2. What forces are driving change in the movie rental industry? Are the combined impacts of these driving forces likely to be favorable or unfavorable in term of their effects on competitive intensity and future industry profitability? 3. What does your strategic group map of this industry look like? How attractively is Netflix positioned on the map? Why? 4. What key factors will determine a companys success in the movie rental industry in the next 3-5 years? 5. What is Netflixs strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Netflix is taking? What type of competitive advantage is Netflix trying to achieve? 2

STRAMAN CASE PROBLEMS FOR GROUP PRESENTATION.

PROF. FRED S. CABUANG 6. What does a SWOT analysis of Netflix reveal about the overall attractiveness of its situation?

CASE 05 - REDBOXS STRATEGY IN THE MOVIE RENTAL INDUSTRY

1. What are the chief elements of Redboxs strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Redbox is taking? What type of competitive advantage is Redbox trying to achieve? 2. What does a SWOT analysis of Redbox reveal about the overall attractiveness of its situation and future prospects? 3. What strategic issues or problems does Redbox management need to address? Draw upon the discussion on p. 87 in Chapter 4 to develop your worry list and to state the issues/problems in the recommended form. 4. What recommendations would you make to Redbox management? At a minimum, your recommendations should cover what to do about each of the strategic issues/problems identified in question 3. In addition, each recommendation should be supported with convincing arguments based on your analysis of Redboxs situation.

CASE 06 - SIFT CUPCAKE AND DESSERT BAR

1. What are the dominant economic characteristics of the specialty baking market? Does it appear that the industrys prospects for growth and attractive profits are good? 2. How strong are the competitive forces confronting Sift and other specialty bakers? Which one of the five competitive forces is the strongest? Prepare a five-forces analysis to support your answer. 3. What key factors will determine a companys success in the specialty baking market in the next 3-5 years? 4. What is Sift Cupcake and Dessert Bars strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fits the competitive approach that Sift is taking? Explain. 5. Which of the companys resources and capabilities have the greatest competitive power? Are Sifts resources and capabilities (1) competitively valuable, (2) rare, (3) difficult to copy, and (4) not easily be trumped by the substitute resources of rival firms. How well do Sifts resources and capabilities match up with the industrys key success factors?

STRAMAN CASE PROBLEMS FOR GROUP PRESENTATION.

PROF. FRED S. CABUANG

CASE 07 - BLUE NILE INC. IN 2011: WILL ITS STRATEGY TO REMAIN NUMBER ONE IN ONLINE DIAMOND RETAILING WORK?
1. How strong are the competitive forces confronting Blue Nile and other online retail jewelers? Which one of the five competitive forces is the strongest? Do a five-forces analysis to support your answer. 2. What key factors will determine a companys success in the online jewelry business in the next 3-5 years? 3. What is Blue Niles strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Blue Nile is taking? What type of competitive advantage is Blue Nile trying to achieve? 4. What do you like and dislike about Blue Niles business model? 5. What does a SWOT analysis of Blue Nile reveal about the overall attractiveness of its situation?

CASE 08 - PANERA BREAD COMPANY IN 2011 PURSUING GROWTH IN A DIFFICULT ECONOMY

1. What is Panera Breads strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? 2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies? 3. What is your appraisal of Panera Breadss financial performance based on the data in case Exhibits 1, 2 and 7? How well is the company doing financially? Use the financial ratios in the Appendix of the text as a guide in doing the calculations needed to arrive at an analysis-based answer to your assessment of Paneras recent financial performance. 4. Based on the information in case Exhibit 3, which rival restaurant chains appear to be Paneras closest rivals? 5. What strategic issues and problems does Panera Bread management need to address? 6. What does Panera Bread need to do to strengthen its competitive position and business prospects vis-vis other restaurant chain rivals?

STRAMAN CASE PROBLEMS FOR GROUP PRESENTATION.

PROF. FRED S. CABUANG

CASE 09 - APPLE, INC. IN 2011

1. What are the chief elements of Apples overall competitive strategy? How well do the pieces fit together? Is the strategy evolving? 2. What are the key elements of Apples strategy in computers, personal media players, tablet computers, and smartphones? Have its strategies in its core businesses yielded success? Explain. 3. What does a competitive strength assessment reveal about Apples computer business, as compared to the leaders in the computer industry? Use the methodology in Table 4.3 to support your answer. Does it appear that the companys competitive positions in personal media players, tablet computers, and smartphones are stronger or weaker than its position in computers? 4. Does it make good strategic sense for Apple to be a competitor in the computer, personal media player, smartphone, and tablet computer industries? Are the value chain activities that Apple performs in computers, personal media players, tablet computers and smartphones very similar and compatible or are there very important differences from product to product? Which of the four products lines--computers, tablet computers, personal media players, or smartphones---do you think is most important to Apples future growth and profitability? Why?

CASE 10 - GOOGLES STRATEGY IN 2011

1. Discuss competition in the search industry. Which of the five competitive forces seem strongest? weakest? What is your assessment of overall industry attractiveness? 2. How is the search industry changing? What forces seem most likely to bring about major change to the industry within the next three to five years? 3. What are the key factors that define success in the industry? What are the key resources and capabilities required of successful search engine companies? How do these compare to the key success factors of the smartphone industry? 4. Describe Googles customer value proposition and profit formula linked to its business model. What strategies has Google relied upon to build competitive advantage in the industry?

STRAMAN CASE PROBLEMS FOR GROUP PRESENTATION.

PROF. FRED S. CABUANG

CASE 11 - SARA LEE CORP. IN 2011: HAS ITS RETRENCHMENT STRATEGY BENEFITTED SHAREHOLDERS? ASSIGNMENT QUESTIONS
1. What is Sara Lees corporate strategy? How has its retrenchment strategy changed the nature of its business lineup? 2. What is your assessment of the long-term attractiveness of the industries represented in Sara Lee Corp.s business portfolio? 3. What is your assessment of the competitive strength of Sara Lee Corp.s different business units? 4. What does a 9-cell industry attractiveness/business strength matrix displaying Sara Lees business units look like? 5. Does Sara Lees portfolio exhibit good strategic fit? What value-chain match-ups do you see? What opportunities for skills transfer, cost sharing, or brand sharing do you see? 6. What is your assessment of Sara Lees financial and operating performance in fiscal years 2008-2010, the period following the divestitures that were the core of Sara Lees retrenchment strategy? 7. What is your overall evaluation of Sara Lees retrenchment plan? What evidence and/or reasons support a conclusion that Sara Lees shareholders have or have not benefitted from the companys retrenchment strategy? 8. What actions do you recommend that Sara Lee management take to improve the companys performance and boost shareholder value? Your recommended actions must be supported with convincing, analysis-based arguments.

CASE 12 - ROBIN HOOD ASSIGNMENT QUESTIONS

1. What problems does Robin Hood have? What issues need to be addressed? 2. Do Robin Hood and the Merrymen need a new mission? new objectives? a new strategy? 3. What strategic options does Robin Hood have? Is continuing with the present strategy an option or is the present strategy obsolete? 4. Why not try to end the campaign by killing the Sheriff? 5. What are the pros and cons of accepting the offer of the barons to assist in securing King Richards release from prison? 6. What action plan would you recommend to Robin? 7. How should Robin implement the recommended plan? What action steps will need to be taken to make the recommended strategy work successfully?

STRAMAN CASE PROBLEMS FOR GROUP PRESENTATION.

PROF. FRED S. CABUANG

CASE 13 - SOUTHWEST AIRLINES IN 2010: CULTURE, VALUES, AND OPERATING PRACTICES ASSIGNMENT QUESTIONS
1. Is there anything that you find particularly impressive about Southwest Airlines? 2. What grade would you give Southwest management for the job it has done in crafting the companys strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning strategy? 3. What are the key policies, procedures, operating practices, and core values underlying Southwests efforts to implement and execute its low-cost/no frills strategy? 4. What are the key elements of Southwests culture? Is Southwest a strong culture company? Why or why not? What problems do you foresee that Gary Kelly has in sustaining the culture now that Herb Kelleher, the companys spiritual leader, has departed? 5. What grade would you give Southwest management for the job it has done in implementing and executing the companys strategy? Which of Southwests strategy execution approaches and operating practices do you believe have been most crucial in accounting for the success that Southwest has enjoyed in executing its strategy? Are the any policies, procedures, and operating approaches at Southwest that you disapprove of or that are not working well? 6. What weaknesses or problems do you see at Southwest Airlines as of mid-2010? 7. Does the AirTran acquisition make good strategic sense for Southwest? 8. What strategic issues and problems do Gary Kelly and Southwest executives need to address as they proceed to close the deal with the AirTran acquisition and contemplate how best to integrate AirTrans operations and AirTrans employees into Southwest? 9. What recommendations would you make to Gary Kelly and Southwest executives as the company heads into 2011?

CASE 14 - NORTON LILLY INTERNATIONAL: IMPLEMENTING TRANSFORMATIONAL CHANGE IN THE SHIPPING INDUSTRY ASSIGNMENT QUESTIONS
1. What impresses you about Norton Lilly International? What has accounted for Norton Lillys success over the past 150+ years? What aspects of Norton Lilly do you find unimpressive? 2. What happened in 2006 to handicap the company? 3. What is Norton Lilly Internationals strategy? Which of the five generic competitive strategies most closely fit with the competitive approach that Norton Lilly International is taking?

STRAMAN CASE PROBLEMS FOR GROUP PRESENTATION.

PROF. FRED S. CABUANG
4. Is Norton Lillys competitive strategy working well? What does the information in case Exhibits 1 and 2 reveal about the companys strategic and financial performance during 2006 to 2009? What does the information contained in case Exhibit 3 indicate regarding the companys projected performance in 2010? Please use the financial ratios presented in the Appendix of the text to guide your calculations and reach conclusions about the caliber of Norton Lilly Internationals financial performance? 5. What policies, practices, support systems and management approaches underlie Norton Lilly Internationals efforts to execute a turnaround strategy for the company? Has Norton Lilly International built an organization capable of good strategy execution? 6. How has Norton Lilly Internationals use of the Balanced Scorecard and other performance measures aided in the companys efforts to implement a companywide performance management system? 7. What is your assessment of the internal leadership of Norton Lilly International? Does the company have the leadership in place to take the company to the next level of performance? 8. What is your assessment of Jim Burtons turnaround initiative? Has he been successful in turning around the company? Are additional efforts or initiatives needed? Why or why not? 9. What issues do Burton and the management team need to address? 10. What recommendations would you make to Jim Burton?

CASE 15 - STARBUCKS STRATEGY AND INTERNAL INITIATIVES TO RETURN TO PROFITABLE GROWTH ASSIGNMENT QUESTIONS
1. What was Howard Schultzs original strategic vision for Starbucks? Is his 2010 strategic vision for Starbucks different from the one he had in the 1980s? How many times has his strategic vision changed? Is his present strategic vision likely to undergo further evolution? 2. Has Starbucks strategy evolved as the strategic vision has evolved? 3. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Starbucks is employing? 4. What are the key policies, practices, business principles, and procedures that underlie how Howard Schultz and Starbucks management have implemented and executed the companys strategy? 5. What values does Starbucks have? How well do they connect to the strategy and to the manner in which the company conducts its business? 6. What is your evaluation of Starbucks social responsibility strategy? Is it sincere or just something the company does and talks about to create a good public image? 7. What is your assessment of Starbucks financial performance during fiscal years 2005-2009? 8. What is your evaluation of Howard Schultzs transformation agenda for Starbucks during 2008-2010? Has Schultz done a good job since his return as Starbucks CEO? Why or why not? 9. What issues confront the company as of mid-2010? What should Starbucks management be worried about?

STRAMAN CASE PROBLEMS FOR GROUP PRESENTATION.

PROF. FRED S. CABUANG
10. What recommendations would you make to Howard Schultz to sustain the companys growth and support continued strong financial performance in the years ahead?

CASE 16. CASH CONNECTION: ARE ITS PAYDAY LENDER STRATEGY AND ITS BUSINESS MODEL ETHICAL? ASSIGNMENT QUESTIONS
1. What are the dominant economic characteristics affecting the payday lending industry? 2. What is competition like in the payday lending industry? How strong are each of the competitive forces that make up Porters Five Forces Model? What do your strength ratings reveal about the overall attractiveness of the payday lending industry? 3. What are the driving forces that are currently affecting the payday lending industry? 4. What are the prevailing key success factors that most affect industry members ability to prosper in the mar ketplace? 5. What is Cash Connections strategy for competing in the financial services industry? Which of the five generic competitive strategies discussed in Chapter 5 most closely fits the competitive approach that Cash Connection is taking? What kind of financial performance has the strategy produced? 6. What evidence suggests that Cash Connections strategy and business model are ethical and beneficial to customers and to society at large? Is there evidence to suggest that the companys strategy and business model are neither ethical nor beneficial to customers and that the entire payday lending industry has few if any redeeming qualities? 7. What recommendations would you make to Allen Franks to ensure that Cash Connection pursues an ethical strategy and does not engage in ethical wrongdoing?