...2010: Vision, Core Values, and Strategy 1. What are the chief elements of the strategy that Whole Foods Market is pursuing? * Whole Foods uses the competitive advantage of having 100% organic products and the highest quality of natural products. Whole Foods uses growth strategy of expanding a combination of opening its own new stores and also acquiring small, owner-managed chains located in desirable markets. Another use of strategy is their location of stores. The company had a set number of stores each year. Their product line strategy guaranteed 100% satisfaction on all items purchased and too live up to their core values. For pricing, Whole Foods products and offerings were “value-priced”. The prices are normally higher than conventional supermarkets. 2. Is Whole Foods’ strategy well matched to market conditions in the food retailing industry (one of the criteria for a winning strategy discussed in Chapter 1)? * Whole Foods does not pass the fit test in the food retailing industry because other supermarkets dominate the industry and have the potential to have more success in a down economy. Whole Foods does have a sustainable competitive advantage in the industry that is becoming a preferred way of life. This company has the option of producing a superior performance, but it may not be for more than a brief period. As far as the performance test, Whole Foods does have financial strength and maintains competitive strength. Their strategy does produce good...
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...units located in 98 different countries.In fact,such a scale of development, not just a simple number, it shows the subway broad market presence, and the ability to explore the market, and that this is a huge advantage even such a fast-food giant McDonald's did not have. For Subway,grounded in a such large global background including economics environment,the firm is limited by many pressure,constraint and even threat from competition that can affect the strategic management process of Subway.In a way,if the firm want to be successful really,you must find out a sustainable competitive advantage(core competency) derived from capabilities and resource.(core competencies are capabilities that serve as a potential source of competitive advantage for a firm over its rivals).And high-quality food,top customer service and the ability to continuously finding supervisor location is the core competencies of Subway today. As shown by the slogan”Eat Fresh”,the firm has much more confidence than providing satisfied food to different needs from different customers,for example their own bread,the offer of a set of fresh ingredients as the choice by the customers and so on.At the same time,the restaurant also consider the nutrition and caloric intake of food measured by a few indicators,such as protein court.Once if these customized performances are accepted by public,the firm is supposed to overcome the half battle.When the products sell well,the honor and praise also follow to come.And...
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...Make vs. Buy Revisited Reassessing your company’s manufacturing strategy M ake or buy? The classic manufacturing question still has no easy answer. Amid signs of demand recovery, but with capital still limited and resources thinned by restructuring, top executives today are revisiting the issue. To come to the right make-or-buy decision, leading companies resist the temptation to “feed the beast.” Instead of focusing only on short-term gains, these leaders keep their long-term strategy and corresponding core competencies in mind. They adopt a clearly defined manufacturing strategy, and then adopt the right tactics that can lead to smart decisions and a competitive advantage. The trade-offs between making a product inhouse and buying it externally are well known to most senior executives. The “buy” approach— a manufacturer purchasing a necessary part from an outside source—frees up resources, reduces capital demands, increases flexibility and improves returns on capital employed, but in a tough market companies may seek to avoid potential quality concerns and supply risks. On the other hand, a “make” approach—developing and building that same necessary part internally—enables the company to utilize available internal capacity, absorb fixed costs and protect intellectual property, but it can lead to unnecessary complexity and divert time and attention away from highervalue activities. Choosing “make” simply because the capacity already exists, or “buy”...
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...Value Alignment Team B Name Integrated Business Topics/BUS 475 Date Instructor Value Alignment United Parcel Service (UPS) a global organization and the members of Team B have a common cultural attitude. They both have a set of core values that give them a starting point for every dilemma encountered and every decision made. Core values are, according to "Definitions Of Anthropological Terms" (n.d.), “attitudes and beliefs thought to uniquely pattern a culture.” (para. Core Values). Here, we will discuss the alignment of core values between UPS and Team B. First we will discuss a brief history of UPS and what activities UPS engages. We will specifically discuss the core values that UPS follows as it executes those activities, and we will define the core values. We will then discuss the core values of Team B, and how Team B uses these core values to execute its tasks as an entity in the academic environment. Finally, we will analyze the alignment of the core values between UPS and Team B, and discuss if the members of Team B would consider working for UPS. Table 1 depicts the degree of correlation between UPS and Team B as part of this analysis. History UPS is a global organization that has a rich history spanning 107 years. UPS started a humble existence operating out of a basement and making deliveries on foot and bicycle. UPS continues to follow the inspiring teachings of Jim Casey who was 19 years old at the time and a founder of UPS. (United...
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...Through Their Expansion Plans, How will Porter Airlines Effectively Utilize Their Low-Cost Business Level Strategy to Increase Their Customer Base? Table of Contents Executive Summary…………………………………………………………………….p. 3 Porter Airlines…………………………………………………………………………..p. 4 The Expansion..………………………………………………………………………...p. 4 What is Organizational Strategy………………………………………………………..p. 7 Porter Airlines Business Level Strategy………………………………………………..p. 9 Core Competencies …………………………………………………………….p. 9 Competitive Advantage………………………………………...………………p.12 Low Cost Business Level Strategy………………………………………...…..p. 13 Low Cost Business- Level Structure………………………………………………….p. 15 Conclusion…………………………………………………………………………….p. 17 Appendix……………………………………………………………………………...p. 18 References…………………………………………………………………………….p. 20 Executive Summary Porter asserts that their secret to success relies in combining a low-cost business-level strategy with a focus on higher yield passengers who value premium service (Preville, 2014). The company has been profitable for the last two years, and as a result has been focusing efforts on expanding their domain and customer base. After conducting an interview with an operations manager at the company, Ashley Hammill, I was able to acquire information about the company’s expansion plans, business strategy and structure (See Appendix A). I will be using the information provided by her primarily, with some secondary sources allowing me to go into further detail about the company....
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...Vivendi Case Write Up Sandeep Verma N15717618 Que 1: What is Vivendi’s corporate vision? How does this firm intend to create value? Ans: Vivendi, which also known as CGE in it’s initial days started as a water utility company in France, Under Guy Dejouany leadership, CGE diversified into a wide variety of businesses including telecommunication, healthcare and real estates. It was Dejouany’s vision, which became corporate vision a d guiding force for the CGE’s aggressive diversification. Dejouany used cash flows from core businesses of water supply, water treatment and waste management, to finance the new ventures. However due to recession and economic downturn by mid 90’s CGE started to feel the pressure and hence came a new CEO Jean-Marie Messier. Messier redefined CGE’s vision to return to its core competencies and these were utilities (water, waste, energy and transport) and communication (telecommunications and multimedia) and Constructions and property while more emphasis on former two. Messier started to consolidate CGE’s 2714 subsidiaries into centralized controlled line of businesses. The important and critical to CGE’s corporate vision was to expand his horizontal boundaries into different businesses like Telecommunications and then vertically integrate with other companies in that business to become a major player. Messier established a corporates office and policies for capital allocation along with resource management and incentive system...
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...VIEWPOINT Core Competence, Distinctive Competence, and Competitive Advantage: What Is the Difference? ANN MOONEY STEVENS INSTITUTE OF TECHNOLOGY HOBOKEN, NEW JERSEY ABSTRACT. Core competence, distinctive competence, and competitive advantage ABSTRACT. are 3 of the most important business concepts that managers, researchers, and educators rely on for decision making, pedagogy, and research. However, little attention has been paid to defining these concepts. As a result, they have become buzzwords that are used so frequently that their meanings are often taken for granted but are not fully understood. In this article, the author reviews the evolution of these concepts in business literature and provides comprehensive definitions, conceptual models, and examples to help clarify and distinguish the concepts so that failures of communication can be avoided. Keywords: competencies, competitive advantage, strategy Copyright © 2007 Heldref Publications 110 Journal of Education for Business S R ince its genesis in the mid-20th century, the study of business disciplines has become an established academic discipline. The proliferation of business curricula, journals, and academic and professional associations is evidence of a dramatic growth in business education. Although the growth has improved the understanding of business and informed business practices, with growth comes various problems. For example, business practitioners, researchers...
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...In order to develop a good strategy it is essential that you know your strengths and weaknesses, i.e. what it is you are good at. An internal analysis is “a process of identifying and evaluating an organizations’ specific characteristics, including its resources, capabilities, and core competencies” (p. 106, Coulter 2005). Internal analysis is important in order to find out where improvements are needed and what you could exploit more in order to gain competitive advantage. Internal analysis takes an inside-out perspective compared to the outside-in perspective of the external analysis. The question here is what you can do yourself. Other relevant questions are if the resources and competencies you possess fit the opportunities in the environment, and if the company can exploit these resources and competencies in new ways. There are three perspectives on how to gain competitive advantage through internal strategic analysis. The resource based view (RBV), the competence based view (CBV), and the dynamic capabilities view. The resource based view There are several types of resources that a company possesses; physical resources, human resources, financial resources, intellectual capital, threshold resources, and unique resources. The RBV is based on the view that these resources are unique if they create sustained competitive advantage, and that a company’s strategy should be based on these resources. For a resource to be unique, it has to possess four attributes; it needs to...
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...What is ebay core competency? Ebay's core competencies are the strategies that make eBay have an edge over other companies that do the same kind of business it does. Some of eBay's core competence include there customer bay is wide, their service can be accessed anywhere because they are always online and they have placed a lot of time and funds on marketing which makes it more marketable. 1. What is eBay’s core competency? How does it relate to their chosen strategy? eBay’s core competency is in developing and improving software and digital infrastructure tools that lead to the creation of a safe, secure, information-rich on-line trading community. The company’s strategy is to allow users to innovate using the tools that it provides, regardless of what they are buying or selling or where they are buying or selling it. 2. How would you explain how eBay has decided to configure and coordinate its value chain? eBay has a very lean value chain, providing only the tools to make transactions possible and letting users do the work of managing transactions. The core technologies eBay uses are centralized, but because of the need to confine shipping of goods to shorter distances, the need to conduct many transactions in local currencies, and the need to list product descriptions in local languages, eBay has decentralized its value chain configuration by developing largely independent country subsidiaries as well. The company’s vision may be one of seamless global commerce, but the...
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...CORE COMPETENCIES Key Points • • • Core competencies are capabilities that have developed to the point where they provide competitive advantage for an organization. Core competencies help organizations access key markets and deliver value to end customers. The assumption that every organization has a core competence is not correct; there are specific criteria or tests that help determine if capabilities are in fact core competencies. Main Thoughts A core competence is a capability that has developed to the point where it has become a source of competitive advantage for an organization. Core competencies are not easy to develop nor can they be readily imitated. Organizations that have strong core competencies—such as Honda in engine manufacturing and Proctor & Gamble in brand management—are difficult to compete with. In these examples, it’s easy to see how the core competencies form the nucleus of each company’s respective strategy. Copyright ©2013 www.cambridgeperformancepartners.com Identifying Base Capabilities/Competencies - The starting point for identifying core competencies stems from an understanding of an organization’s base capabilities (or base competencies). Identifying and documenting core capabilities by functional area is a good starting point. Another way to capture capabilities is by using Porter’s Value Chain...
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...about what we sell, dedicated to our core values and stringent quality standards and committed to sustainable agriculture” as stated by the companies CEO John Mackey. Whole Foods states its purpose as a corporation is helping support the health, well-being, and healing of people, team members, and business organizations in general, and the planet. This is Made known by the company motto “Whole Foods, Whole People, and Whole Planet” (Whole Foods). (Fig.1) Whole Foods Market Motto (Fig.1) Whole Foods | Whole People | Whole Planet | * Highest quality * Least processed * Most flavorful * Natural foods NoArtificial: * Additives * Sweeteners * Colorings * Preservatives | People are their companyPassionate employeesMotivated employees | -Whole Planet Foundation-support food banks -Sponsor neighborhood events -Donate to local non-profit groups-Support of organic farming and sustainable agriculture | (Fig.2) Whole Foods Market’s Core Value | Selling the highest quality natural and organic products | Satisfying and delighting costumers | Team members happiness and excellence | Create Wealth Through Profits & Growth | We Practice and Advance Environmental Stewardship | Create Ongoing Win-Win Partnerships with Our Suppliers | We Promote the Health of Our Stakeholders Through Healthy Eating Education | Whole Foods operates mostly off of a focused differentiation strategy. Differentiation strategy is where a firm aims...
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...Staffing Strategies for Tanglewood Staffing Quantity and Staffing Quality Yu Gao Yuting Dai Xiaoman Hu Yuzhu Guo Jan, 15, 2013 Yu Gao Yuting Dai Xiaoman Hu Yuzhu Guo Jan, 15, 2013 Memo To: Daryl Perrone, Staffing Services Director Marilyn Gonzalez, Vice President of Human Resource Department From: Yu Gao, Staffing Services Consultant Xiaoman Hu, Staffing Services Consultant Yuting Dai, Staffing Services Consultant Yuzhu Guo, Staffing Services Consultant Date: January 15, 2013 Subject: Staffing Strategies for Tanglewood Tanglewood is facing a big change in staffing strategy, considering the company’s plans for expansion. In this report, we analyze the company’s situation, concentrate on staffing quantity and staffing quality strategies and give a general recommendation on a series of strategic staffing decisions. Staffing Quantity Acquire or Develop Talent Acquire refers to acquire new employees who can “hit the ground running” and be at peak performance the moment they arrive. These employees would bring their talents with them to the job, with little or no need for training or development. A pure development strategy would lead to acquisition of just about anyone who is willing and able to learn the KSAOs (KSAOs is used to describe person’s qualifications that needed to perform the job. It refers to Knowledge, Skill, Ability...
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...Whole Foods Market in 2010: Vision, Core Values, and Strategy Whole Foods Market 2010 1 OVERVIEW The synopsis of the Whole Foods case discusses the ideas and strategies used by the co-founder and current CEO, John Mackey in taking Whole Foods Market from a small, local store in Austin, Texas and turning the company into one of the nation’s largest retailers of natural and organic supermarkets. STRATEGY The success of Whole Foods is due to the intelligent business strategies used by the company. Strategies were used in all elements of the company including those regarding growth, location, product line, pricing, cost controls, merchandising, marketing, operations, employee compensation, purchasing, distribution and social responsibility. Whole Foods strategy has worked well for the company assisting in supporting growth and income for the future. Whole Foods had a niche for providing a variety of natural and organic goods. Even though conventional stores have begun selling a limited amount of organic products, Whole Foods continues to have a competitive edge due to their consistent effort to be the best in the natural food market and striving to build and keep their dedicated customers. STRATEGIC VISION AND MOTTO John Mackey’s vision for Whole Foods differentiates the company from an ordinary retail store to one that is extraordinary. It has provided the company with the reputation of being a pioneer of the natural and organic consumer market. It...
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...DAVID SUSTAINABLE COMPETITIVE ADVANTAGE AND GENERIC STRATEGIES INTRODUCTION Keeping the strategic window open involves maintaining a sustainable competitive advantage. In consequence, we argue that competitive advantage should be market led. Next we examine the nature of core competencies and interpret their importance as the basis of gaining a sustainable competitive advantage in the market place. Along with these core competencies are a number of generic strategies that an organization can seek to follow or implement. We will look at each of these generic strategies in turn. First we will look at low-cost, focus and pre-emptive strategies and differentiation strategies. The latter leads us to consider product and service quality, customer focus and relevant issues relating to brand management. COMPETITIVE ADVANTAGE SHOULD BE MARKET LED The literature on the subject is dominated by Porter (1980a and b, 1985, 1987), though his propositions are not without its critics (viz. Cronshaw et al., 1994; Speed, 1989). Some see the firm’s outputs or offerings as the main focus of competitive strategy, with the primary aim of strategy being to compete effectively in particular markets by offering a competitive bundle of benefits, or value, to the consumer. It is the positioning of one firm’s offering relative to another that is of prime importance (Mathur, 1992). An alternative view concentrates on the resources of the organization and maintains that superior resources, and processes...
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...Vision, values and business strategies S T R AT E G Y Introduction Tesco was founded in 1919 by Jack Cohen from a market stall in London’s East End. Today it is one of the largest retailers in the world. Tesco’s core business is retailing in the UK, which provides 60% of all sales and profits. Tesco has the widest range of food of any retailer in the UK. Its two main food brands are its Finest and Everyday Value ranges, each sell over £1 billion per year. The position of Tesco as a leading global brand is clearly illustrated by its expansion of operations into 12 countries including China, Czech Republic, India, Malaysia, Ireland, Hungary and Poland. In 2013 Tesco employed in excess of 530,000 colleagues. This level of success does not happen by chance. Tesco’s leaders have always set high standards and clear goals, never settling for anything less than the best. Tesco’s ‘Every Little Helps’ philosophy puts customers, communities and employees at the heart of everything it does. It prides itself on providing a great shopping experience for every customer it serves, whether in stores, online or in its many other service provisions. Tesco’s core values include a commitment to using its scale for good by being a responsible retailer. In 2010, it opened the world's first zero-carbon supermarket in Ramsey, Cambridgeshire and was awarded Green Retailer of the Year at the Annual Grocer Gold Awards 2012. Tesco aims to be a zero-carbon business by 2050. Tesco’s continuing success...
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