...Technical Outerwear, Technical Knits and Hard Goods. It is an industry leader in technological innovation, that invest in development and tests raw materials to cause the least amount of harm to the environment as possible. Patagonia’s mission statement is: “Build the best product, cause no unnecessary harm and use business to inspire and implement solutions to the environmental crisis”. Promotion Their marketing strategies are quite different from what is customary for an outdoor clothing company. Patagonia’s main idea of marketing is to inform its audience, so they have incorporated educational messages for its consumers instead of just publicity of the brand. Patagonia invests less than 1% of its sales on advertising and marketing. The ethics and the unique vision of the company has especially attracted the attention of the media, and this has led them to get free publicity from the press in many occasions. Price and Target Market Patagonia consumers have a median age of 38 years and an annually average income of $160,000. Basically, its target market are lovers of outdoor sports that are willing to invest approximately 20% to 50% more on an innovative, multifunctional and durable product that offers high quality, as well as consumers that are concerned about the environment, sustainability and nature conservation. Distribution They pursue four sales channels: wholesale, retail, catalog and internet. For Patagonia, a retail store not only represents a trade. It...
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...1. What is IBM’s “Smarter Planet” business strategy? How does this strategy relate to IBM’s mission and value? Answer: IBM’s “Smarter Planet” business strategy is a transformational shift from commodity based businesses such as PC, Hard Drive to advanced data analysis and information processing using computational power to help client partner enhance their business due to revolution in global marketplace resulting from integrated digitization of processes and infrastructures. The “Smarter Planet” Business strategy aligns perfectly with IBM’s core value and mission statement. While the core values state that IBM is dedicated to every client’s success and focused on innovation, the mission for IBM is to strive and lead invention and development of industry’s most advanced information technologies including computer systems, software, storage, etc. The smarter planet business strategy plans are aligned on IBM’s mission and core value. 2. Conduct a SWOT analysis for IBM’s Smarter Planet initiative. What are the relevant trends to consider for next three to five years? Answer: Location of Factor | Type of Factor | | Favorable | Unfavorable | Internal | Strength 1. The Business strategy aligns perfectly with the core value and mission of the organization. 2. IBM's near close to $100 Billion Dollar sales provides a strong financial backbone for entering into new initiatives. 3. Skilled resource pool of 426,000 employees which results in 5000 patents annually is a strength...
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...In 1993 the American iconic company IBM hired a new turnaround CEO named Lou Gerstner. In this Harvard Business Review article entitled Diversity as Strategy, Harvard Professor David A. Thomas writes about an aspect of Gerstner’s strategy is really a story about people, starting with the diversity of people within IBM, and the positive replication into their global markets. These markets include customers, employees, and the search for new talent to recruit. Gerstner realized that an organization the size of IBM must embrace diversity, to not only influence people, but as a strategy to open the doors to new opportunities both internally and externally. Gerstner launched a Diversity Task Force initiative with the goal, “to uncover and understand the differences among the groups and find ways to appeal to a broader set of employees and customers” (Thomas, 2004. Pg. 1). Gerstner explained that it was more than just about the talent pool, and that it was a market based issue. Realizing the diversity in the markets, and IBM’s need to expand in the markets, would require the people representing IBM to be as diverse and multi-culture oriented as the markets. The first usable takeaway from the articles emphasis on culture change is the idea of Constructive Disruption. It’s an interesting approach to how IBM, and most employers really, approached employee management issues. Companies had become very careful at not distinguishing differences among groups of diversity to remove...
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...written about the McDonald which makes the readers aware of the reasons and strategies behind the success of the McDonald, even with the criticism McDonald faced throughout the history of its existence. This case study analyzes the strategic initiative taken by each CEO and assessment of these initiatives. Ray Kroc, 1955–1973 Ray Kroc founded McDonald’s Corporation in 1955. He bought the rights from MacDonald’s brothers to open the franchises all across the country. Illinois was the first place to have McDonald. Ray Kroc adopted the ideas of simple, limited menu and easy steps of food. He gave the world with the most famous gold arch logo of the McDonald. Centralization, uniformity and provision of the standard operating procedures for the company operations were the key initiatives taken by the Ray Kroc for the success of franchising system. Centralization is defined as the process in which all the major decisions take place at the top management. Ray developed standard operating procedure and start monitoring franchises to make sure standards are being met. Uniformity was the key element of his strategy. Kroc gave the idea of centralized strategy for the corporate business. Under this strategy, Kroc gave the idea of QSC (quality, service and cleanliness). Under his tenure, top management took all kinds of decisions adopting the idea of centralization. The centralization and uniformity initiative was successful, but it was a hindrance in the way of innovation. As one of...
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...References………………………………………………………………………... 16 1 Executive Summary Molson Canada has been facing negative reactions their recent social media marketing initiative, Cold Shots Campus Challenge. Parties claimed that this Facebook contest promoted irresponsible drinking behaviours among university students. As a result, Molson pulled the contest one week before the scheduled deadline. Now, Molson must evaluate the use of social media, specifically Facebook, in its marketing strategy. The available alternatives are to revamp the Facebook initiative, to focus on static webpages or to focus on traditional marketing strategies. The recommendation is to revamp the Facebook initiative over a period of three months with ongoing monitors and checkpoints. The projected cost of this recommendation is $75,500 initially, with recurrent annual costs of $36,000 per year. The advantage of this recommendation is that it can be easily expanded to include other types of social media, such as micro blogging, video sharing, photo sharing and online forums if the response to this project is positive. 2 I. Key Issues Molson Canada faces four key issues moving forward from November 2007. The first issue is related to brand image. Brand image is the most important and urgent issue (see Chart 1) because of the negative feedback Molson received as a result of the Cold Shot Campus Challenge Facebook initiative. Molson is seen as promoting irresponsible drinking behaviour. In order to rectify the situation, Molson build and increase...
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...I believe that supply chain is the base of an operation strategy. The relationship between both is crucial to define limits in an overall strategy for the company and the link for this relation must be the reconciliation between our resources and the requirements of the market. All decisions made over operation strategy and supply chain would aloud scale economies or may open the scope over markets. For example, Benetton moves inventory to stores around the world faster than its competition by building flexibility into design, production, and distribution or, Sony that purchases components from suppliers in Thailand, Malaysia, and around the world. These examples lead to my next points. Under the concept of strategy’s four perspectives, there is an external and internal overview that permits framework for a deep analysis or SWOT, which will help to develop an effective strategy formulation. It is not easy to explain market movements but we can have in mind the flow of the strategy decision areas (resources, capabilities, processes) and performance objectives (customer needs, market positioning, competitors actions). In the other hand, top-down/bottom-up perspective give us a concept that clarify the link over a corporate strategy, tactical and operational experience. To understand this concept, I prefer to support my analysis on the five generic competitive performance objectives, that allow us to understand the necessity of being right (Quality), being fast (Speed), being on...
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...Part Market-Driven Strategy 1 Chapter 1 Market-Driven Strategy The market and competitive challenges confronting executives around the world are complex and rapidly changing. Market and industry boundaries are often difficult to define because of the entry of new and unfamiliar forms of competition. Customers’ demands for superior value from the products they purchase are unprecedented, as they become yet more knowledgeable about products (goods and services) and more sophisticated in the judgments they make. External influences from diverse pressure groups and lobbyists have escalated dramatically in country after country. Major change initiatives are under way in industries ranging from aerospace to telecommunications. Innovative business models that question the traditional roles of an industry are defining a new agenda for business and marketing strategy development. Companies are adopting market-driven strategies guided by the logic that all business strategy decisions should start with a clear understanding of markets, customers, and competitors.1 Increasingly it is clear that enhancements in customer value provide a primary route to achieving superior shareholder value.2 Consider, for example, Southwest Airlines’ market-driven strategy that has achieved a strong market position for the U.S. domestic carrier. The airline’s growth and financial performance are impressive. Although Southwest is the fourth largest U.S. airline, its market capitalization is greater...
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...Ian Whadcock 1808 Kaplan.indd 62 12/5/07 5:31:55 PM Successful strategy execution has two basic rules: understand the management cycle that links strategy and operations, and know what tools to apply at each stage of the cycle. the Management System by Robert S. Kaplan and David P. Norton NOT LONG AFTER ITS SUCCESSFUL IPO, the Conner Corporation (not its real name) began to lose its way. The company’s senior executives continued their practice of holding monthly one-day management meetings, but their focus drifted. The meetings’ agenda called for a discussion of operational issues in the morning and strategic issues in the afternoon. But with the company under pressure to meet quarterly targets, operational items had started to crowd strategy out of the agenda. Inevitably, the review of actual monthly and forecast quarterly financial performance revealed revenues to be lower, and expenses to be higher, than targeted. The worried managers spent hours discussing how to close the gap through pricing initiatives, capacity downsizing, SG&A staff cuts, and sales hbr.org 1808 Kaplan.indd 63 | January 2008 | Harvard Business Review 6 3 12/5/07 5:32:05 PM | Mastering the Management System campaigns. One executive noted, “We have no time for strategy. If we miss our quarterly numbers, we might cease to exist. For us, the long term is the short term.” Like Conner, all too many companies – including some well-established public corporations...
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...Kellogg’s Business Strategy Strategic management is extremely important for the development and expansion of organizations. It is the science of formulating and achieving short-term and long-term objectives. Kellogg’s business strategies involve the following: • Product Innovation, strengthening its target market and accelerating growth • Global expansion of convenience foods/snacks • Sustainable Growth: Environment • Foster a work environment with a talented and dedicated workforce • Be a trusted provider of great tasting, safe and high quality products to consumers • Promote corporate responsibility to communities • Reinforce the idea of healthy lifestyle for population Product Innovation, strengthening its target market and accelerating growth The Main strategy for any company is product innovation, strengthening its target markets and accelerating the rate at which it grows. The tactics Kellogg’s uses to achieve these objectives are introducing new premium line of cereals which are favourable to the community needs and also investing heavily in research and brand building. Global expansion of convenience foods/snacks Kellogg’s strategy for global expansion into new food markets include increasing their penetration into new distribution channels. They also focus on strengthening their brand image as this makes foray into new global markets easier. Sustainable Growth: Environment One of Kellogg’s main strategies is to protect and conserve natural resources...
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...Introduction The purpose of this case review is to summarize the case and identify the key issues. We also will evaluate how Google's mission statement is related to its business strategy, how their information systems strategy supports its business strategy, and how Google's organizational strategy supports its business strategy. Additionally we will identify which of Porter’s three generic strategies is Google employing. Finally we will analyze Google's strategy and the type of market disruption it has created using a dynamic environment perspective. Case Summary Google Inc was founded in 1998, and has grown to serve hundreds of thousands of users and customers around the world by providing access to a free search engine that locates information on the World Wide Web. Their mission is to organize the world’s information and make it universally accessible and useful. Google has created a simple but successful business strategy that is focused on attracting Internet users to their search engine and earning revenue from targeted advertisement. According to Sounders (2013) Google is operating on a simple but innovative business model of attracting Internet users to its free search services and earning revenue from targeted advertisement. They are accomplishing this task through the use of their AdWords and AdSense programs. According to Sounders (2013) AdWords enables businesses to place ads on Google and its network of publishing partners and AdSense allows them to push advertisements...
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...Strategic Initiative Paper: Starbucks Starbucks Corporation (Starbucks) is known as one of the selling leaders of roasted and specialty coffee in the retail industry. Starbucks has been focusing on creating a detailed strategic and financial plan that will aid the company in surpassing its competitors. The purpose of this paper is to investigate Starbuck’s actions upon creation of strategic and financial plans, the strategic initiatives associated with this plans, and the impact initiatives have on cost and sales as well as associated risks. Strategic Planning Process and Strategic Initiative In 1971 the birth of Starbucks began, three partners Jerry Baldwin, Zev Siegel and Gordon Bowker opened the first location in Pikes Place Market in Seattle with $1350 a piece and an additional $5,000 borrowed from a bank making their initial investment $9,050. In 1981 Howard Schultz joined the team during their first encounter Baldwin told Schultz, “We don’t manage to business to maximize anything other than the bean” the Part of Starbucks Strategic plan was once it turned public in 1992 was to grown the number of locations from 165 in 1992 to 1,381 by 1997. Part of Starbucks strategy was to place the first location a large city and then branch out from there until eventually now where there are Starbucks everywhere. The rapid growth Starbucks created a new position of zone vice presidents, the zone vice presidents became responsible for the overall operations of the area, it recruit...
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...Identification Research in Motion (RIM) will face considerable challenges moving forward. The most relevant questions at hand for the company are, “How can RIM successfully gain a more significant market share of the consumer market?” and, “How will RIM maintain its brand dominance within the business market?” Key Findings RIM, founded in 1984, is the pioneer of smartphone technology and the developer, manufacturer and marketer of the most popular portable communication device in the world, the Blackberry. Unveiled in 1998, the BlackBerry is a truly innovative product that has changed the face of business. In August 2009, Fortune Magazine named RIM the fastest growing company in the world and according to British Broadcasting Corporation, RIM profits have increased by 84% and revenues by 77% in the last three years (Fortune Magazine, 2009). Furthermore, Schonfeld (2009) reports that 56% of all smartphones in the United States are Blackberries and the bestselling smartphone of 2009 is the Blackberry Curve. Despite this success and growth, RIM faces significant challenges. The greatest challenges currently confronting RIM are maintaining its market dominance in the business market and increasing their market share in the consumer market. While RIM holds a good position in the business market, competition in this realm is increasing rapidly. In fact, in a recent study conducted by J.D. Power and Associates, polling customers who use their smart phones primarily for business purposes...
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...Identification Research in Motion (RIM) will face considerable challenges moving forward. The most relevant questions at hand for the company are, “How can RIM successfully gain a more significant market share of the consumer market?” and, “How will RIM maintain its brand dominance within the business market?” Key Findings RIM, founded in 1984, is the pioneer of smartphone technology and the developer, manufacturer and marketer of the most popular portable communication device in the world, the Blackberry. Unveiled in 1998, the BlackBerry is a truly innovative product that has changed the face of business. In August 2009, Fortune Magazine named RIM the fastest growing company in the world and according to British Broadcasting Corporation, RIM profits have increased by 84% and revenues by 77% in the last three years (Fortune Magazine, 2009). Furthermore, Schonfeld (2009) reports that 56% of all smartphones in the United States are Blackberries and the bestselling smartphone of 2009 is the Blackberry Curve. Despite this success and growth, RIM faces significant challenges. The greatest challenges currently confronting RIM are maintaining its market dominance in the business market and increasing their market share in the consumer market. While RIM holds a good position in the business market, competition in this realm is increasing rapidly. In fact, in a recent study conducted by J.D. Power and Associates, polling customers who use their smart phones primarily for business purposes...
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...Strategic Initiative Paper "Disney" Marquita Lacy-Polk, Diana Dorsey, Kim Jenkins, Joshua Snooks FIN/370 January 29, 2014 Strategic Initiative Paper "Disney" Disney has grown exponentially to become a household name and a global leader in the industry of family entertainment. Shortly after as a small cartoon company, Ellas Disney, founder of Walt Disney grew the Disney Corporation into something that no one could have imagined. Ellas Disney was always known for his innovation and abilities and still reminiscent today as it was in the 1920s. The company attributes are a majority of and to the success that they have built. In order for organizations to be successful and to survive requires planning for the future, with creative ideas and motivated personnel with an open mind and a strong drive. Two essential business functions are financial and strategic planning, with the great success that Walt Disney has accomplished, then till now there are still financial impacts and risks that still should be considered when making certain decisions when it comes to the company. In this paper our team will be discussing in more detail the current strategic initiatives and the possible new initiatives that Disney has in play, along with the financial impacts and the risk of putting those decisions into effect. The Walt Disney’s annual reports are very important when it comes to strategic and financial planning because it provides a variety of financial information which is helpful...
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... Research Paper Feb.6, 2012 "Europe 2020" is a 10-year strategy proposed by the European Commission on March 3, 2010 and it is a plan for reviving the economy of the European Union. "Europe 2020" is a multifaceted strategy for sustainable growth and workplaces for the next decade, aiming to help Europe to emerge stronger, from its worst economic crisis dating from the 30s of the twentieth century till now. On January 15, 2010 officially ended the consultation and discussion of the draft new EU strategy: More than 1,500 suggestions were made by various interested parties: Member States, regions, business and professional associations, NGOs and scientific organizations, non-EU countries and international organizations. Overall, the proposed strategy and its priorities meet universal approval with the recommendation, to avoid the mistakes of the Lisbon Strategy and, if it is possible, this one to be more specific and more strictly applied. On March 3, 2010 President Barroso presented his proposal for a new development strategy until 2020 in the EP. The new strategy called, "Europe 2020", should focus on reducing unemployment, better coordination of economic policies and strengthening economic management by Introducing binding rules. "Europe 2020" sets out a vision for Europe's social market economy over the next decade and is based on three interlocking and...
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