...fundamental strategic questions facing enterprises: Should we expand our business into an un-chartered territory where we do not have the needed resources? Or, what if you dilute the focus on our core competence by appending ancillary business to our firm? Advaark, the company of our study, is a $550 million New York-based advertising firm with 400 employees. Recently one of the partners at Advaark advised Globalveb, a multibillion dollar holding company for an assortment of food and beverage, to get into energy drink business. Advice was given based on market research and growth rate of the new business. In this case we have “strategic cross roads”: Should Advaark gets into a new line of business, strategic consulting and services, or should it stay focused on its current business? But before answering we should stress on Advaark partners where each has his own opinion and skills. Partner 1: Is visionary and never content with status quo. His strategy is to move slowly into the market by developing a service for consumer products since he thinks: people need this business, Advaark need to change with time, Business line are blurring, making more by reducing cost of sale for existing clients and what if its competitors get into it? While Partner 2, has a sharp focus with operational skills. A strategy is to stay focusing in their competence, world class advertising agency, since strategic consulting and services is not their business, they have no expertise in opening a new business, they...
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...Stick to the Core – or Go for More? Advaark Company was founded by Ian Rafferty and George Caldwell. Global Bev by Mr. Mc Williams Statement of the Problem: Is the Advaark Company will stick to its old-fashioned advertising way or will they follow the suggestions of their customers in building more strategy to survive? SWOT Analysis: Alternative Course of Action: Conclusion: Recommendation: Advaark Strategy: Stick to the Core - or Go for More? Company business and culture : A $550 million New York-based advertising firm with 400 employees. Innovative culture with creative people. Issue : Recently, one of the partners at Advaark advised Globalveb, a multibillion dollar holding company for an assortment of food and beverage, to get into energy drink business. Advice was given based on market research and growth rate of new business. Results: Successful new segment (energy drink) entry. Strategic crossroads: Should Advaark get into a new line of business, strategic consulting and services, or should it stay focused on its current business? Partner 1 Visionary, never content with status quo 1. People need this business 2. Marketing strategy service: $1.3B 3. What if our competitors get into it? 4. Offer one-stop shopping, not just ad 5. Make more by reducing cost of sales for existing clients 6. Business lines are blurring 7. We need to change with times Strategy: Move slowly into the market by developing a service...
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...Stick to the Core – or Go for More? Advaark Company was founded by Ian Rafferty and George Caldwell. Global Bev by Mr. Mc Williams Statement of the Problem: Is the Advaark Company will stick to its old-fashioned advertising way or will they follow the suggestions of their customers in building more strategy to survive? SWOT Analysis: Alternative Course of Action: Conclusion: Recommendation: Advaark Strategy: Stick to the Core - or Go for More? Company business and culture : A $550 million New York-based advertising firm with 400 employees. Innovative culture with creative people. Issue : Recently, one of the partners at Advaark advised Globalveb, a multibillion dollar holding company for an assortment of food and beverage, to get into energy drink business. Advice was given based on market research and growth rate of new business. Results: Successful new segment (energy drink) entry. Strategic crossroads: Should Advaark get into a new line of business, strategic consulting and services, or should it stay focused on its current business? Partner 1 Visionary, never content with status quo 1. People need this business 2. Marketing strategy service: $1.3B 3. What if our competitors get into it? 4. Offer one-stop shopping, not just ad 5. Make more by reducing cost of sales for existing clients 6. Business lines are blurring 7. We need to change with times Strategy: Move slowly into the market by developing a service for consumer products ...
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...Stick to the Core—or Go for More? “Cut!” Spike Sanchez stomped toward the stage, his arms waving the music to a stop. Wearing black from head to toe, sporting dark glasses, and sweating under the heat of the lights, he was losing his patience. A highly respected music video director, Sanchez was starting to wonder if taking on this advertising gig was such a great idea. “How many times do I have to tell you to point the logo on the can toward the camera during that move?” On stage was Maygan M, a pop singer whose star had risen in the months since she’d agreed to do this ad. She was a sweet-faced, 18-year-old beauty, dressed in a sequined, midriff-baring halter top, a skintight leopard microskirt, and platform shoes that had already tripped her up twice. She sheltered her eyes from the lights and glared at Sanchez. “Like I can even see the stupid logo,” she whined. “Maybe you could fix it on a computer or something?” “Or maybe you should just do what I say,” Sanchez shot back. “Then we might have some hope of airing this 30-second spot before your 15 minutes of fame are up!” He turned abruptly, strode off the stage, and dropped back into his director’s chair. “Let’s try it again from the top.” Maygan pouted at him for a moment and then flipped her long hair, spun around, and went back to her starting position. Sitting next to Sanchez was Ian Rafferty, cofounder and head of creative services for Advaark, a New York–based advertising agency. “Pretty tough to work with, isn’t...
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...HBR CASE STUDY stick to the Coreor Go for Advaark achieved phenomenal success selling one service very well But now customers are asking for more, creating a strategic dilemma that could tear the company apart by Thomas J.Waite "Cut! spike Sanchez stomped toward the stage, his arms waving the music to a stop. Wearing black from head to toe, sporting dark glasses, and sweating under the heat of the lights, he was losing his patience. A highly respected music video director, Sanchez was starting to wonder if taking on this advertising gig was such a great idea. "How many times do I have to tell you to point the logo on the can toward the camera during that move?" up!" He turned abruptly, strode off the stage, and dropped back into his director's chair. "Let's try it again from the top." Maygan pouted at him for a moment and then flipped her long hair, spun around, and went back to her starting position. Sitting next to Sanchez was Ian Rafferty, cofounder and head of creative services for Advaark, a New York-based advertising agency. "Pretty tough to work with, isn't she?" he whispered. On stage was Maygan M, a pop singer "This?" Sanchez waved his hand diswhose star had risen in the months since missively."This is nothing! Try working she'd agreed to do this ad. She was a with some rock 'n' roll dinosaur strung sweet-faced, 18-year-old beauty, dressed out on crank and wanting to make a in a sequined, midriff-baring halter top, comeback!" a skintight leopard microskirt...
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