Argentine confectionery manufacturer, Arcor Group, seeks to implement an international strategy but in 2003, while recovering from the Argentine financial crisis, globalization plans are thwarted. Already Latin America's leading candy producer and an exporter to over 100 countries, Arcor analyzes how it can become truly global with production facilities and distribution networks in various regions, such as North America, Europe, and Asia. First, however, Arcor must stabilize its operations at home, where a devalued peso, economic uncertainty, and political instability still linger from the devastating financial crisis.
Can you summarize your company's strategy in 35 words or less? Would your colleagues express it the same way? Very few executives can honestly say yes to these simple questions. The thing is, companies with a clear, concise strategy statement - one that employees can easily internalize and use as a guiding light - often turn out to be industry stars. In this article, Harvard Business School's Collis and Rukstad provide a practical guide for crafting an effective strategy statement and include an in-depth example of how the St. Louis-based brokerage firm Edward Jones developed one that has generated success. Any strategy statement must begin with a definition of the objective, or the goal that the strategy is designed to achieve. Since most firms compete in a more or less unbounded landscape, it is also crucial to define the scope, or domain, of the business. Perhaps most important, companies need to have a clear sense of advantage - that is, the means by which the business will achieve its stated objective. Defining the objective, scope, and advantage requires trade-offs. If a firm pursues growth or size, profitability will take a backseat. If it chooses to serve institutional clients, it might ignore retail customers. If it derives its competitive advantage from scale economies, it will not be able to accommodate idiosyncratic customer needs. Before developing your strategy and crafting your statement, you'll want to carefully evaluate the industry landscape. This includes segmenting customers and identifying unique ways of delivering value to the ones the firm targets. It also calls for an analysis of competitors' current strategies and a prediction of how they might change. The key is to find the sweet spot where the firm's capabilities and customers' needs align in a way that competitors cannot match.
Designed as an overview of all aspects of the strategy process: industry analysis, positioning, dynamics and sustainability, and scope issues of corporate strategy, including vertical integration, horizontal diversification, and location issues. Ice-Fili is the largest ice cream producer in Russia in 2002, but is facing strong competition from Nestle despite its success over other multinational competitors. Contains detailed exhibits, allowing deeper analyses. A rewritten version of an earlier case.
Surveys Microsoft's expansion into new businesses, such as mobile and embedded devices, home and entertainment, and business solutions, as it faces challenges due to size and maturity and outside threats from Linux and Google. A rewritten version of an earlier case.
Argentine confectionery manufacturer, Arcor Group, seeks to implement an international strategy but in 2003, recovering from the Argentine financial crisis, thwarts globalization plans. Already Latin America's leading candy producer and an exporter to over 100 countries, Arcor analyzes how it can become truly global with production facilities and distribution networks in various regions, such as North America, Europe, and Asia. First, however, Arcor must stabilize its operations at home, where a devalued peso, economic uncertainty, and political instability still linger from the devastating financial crisis.
Designed as an overview of all aspects of the strategy process: industry analysis, positioning, dynamics and sustainability, and scope issues of corporate strategy, including vertical integration, horizontal diversification, and location issues. Ice-Fili is the largest ice cream producer in Russia in 2002, but is facing strong competition from Nestle despite its success over other multinational competitors. Contains detailed exhibits, allowing deeper analyses.
On July 28, 2002, Bertelsmann announced the firing of its CEO, Thomas Middelhoff, in a move that surprised industry observers, analysts, and many employees. Bertelsmann, a privately held company headquartered in Germany, was one of the largest global media conglomerates, with businesses spanning book publishing, printing, music, and television. Between 1998 and 2002, Middelhoff had initiated a series of strategic initiatives aimed at fostering greater integration among its diverse business units and strengthening their competitive positions, articulated a series of guidelines that would reevaluate Bertelsmann's portfolio mix, and looked to prepare Bertelsmann for a transition to a planned initial public offering in 2005. This case describes these initiatives in detail and the decision of the supervisory board to effect a change in leadership. The new CEO, Gunter Thielen, had to decide whether to effect a fundamental shift in the company's corporate strategy or a more modest reinterpretation of the course charted by Middelhoff. Includes color exhibits.
In 1992, Toys "R" Us, the pioneer of the "category killer" retail format, faced significant competitive threats from mass discounters and warehouse clubs and was losing market share. This case explores the dynamic sustainability of Toys "R" Us's retailing model, its competitive options, and the benefits and costs of leveraging market power.
Describes the background, process, and aftermath of the merger between Daimler-Benz of Germany and Chrysler Corp. of America. Describes the economic structure and trends of the world automobile industry at the turn of the century as well as the individual histories and strategies of the two firms. Further describes the process and key issues in the merger negotiations. Lastly, an extensive description of the post-merger integration plan, approach, and implementation is provided, along with an explanation of the merger's impact on the performance and strategy of the combined company.
Examines Microsoft's strategy and competitive position as it prepares to launch Windows XP. The discussion explores how Microsoft builds and sustains its competitive edge.
Describes the sources of Legend's surge to dominance of the Chinese computer market and the subsequent split of distribution and manufacturing into Digital China and Legend Computing.
Focuses on AT&T's 2000 restructuring, in which the company broke itself into four units: business services, consumer services, broadband, and wireless. Examines the strategy of the company during this time: (1) to deliver information in any form (voice, video, data) over any distance to any place in the world; (2) its numerous acquisitions to implement its strategy; and, (3) the reasons underlying the breakup. Describes the benefits of restructuring and how the company planned to maintain relationships among the units through contractual arrangements.
The first ten pages of the case 'Walt Disney Co.: The Entertainment King' are comprised of the company's history, from 1923 to 2001. The Walt years are described, as is the company's decline after his death and its resurgence under Eisner. The last five pages are devoted to Eisner's strategic challenges in 2001: managing synergy, managing the brand, and managing creativity. Students are asked to think about the keys to Disney's mid-1980s turnaround, about the proper boundaries of the firm, and about what Disney's strategy should be beyond 2001.
Discusses the emerging role of the Internet in the health care industry and describes the strategy of WebMD in this new "ehealth" space. Issues include technology strategy, industry transformation, competition in turbulent environments, and strategic alliances.
Designed to explore the structure, implementation, and sustainability of an information-based strategy (IBS) undertaken by Capital One during the 1990s. Particular issues of interest are the impact of mass customization on industry structure, the ability to transfer IBS skills to new sectors, and the impact of the Internet on industry structure and competitor strategies.
Describes the Mexican subsidiary of Colgate-Palmolive as it sets its strategy for coping with hyperinflation and the November 1987 devaluation of the peso.
Contains brief introductory material for the body of the case, which is Nixon's August 15, 1971, speech announcing the suspension of the convertibility of gold and wage-price controls. The case will allow discussion of the problems of the Bretton Woods system, the relationship of domestic and international economic problems, and the process of institutional change.