Section A Case 1 : Barracuda Inc. 1. Why would Barracuda consider acquisition as its preferred mode of entry into furniture?

Barracuda considers acquisition as its preferred mode of entry into furniture to ensure the immediate market presence in the furniture business and also to emphasize on the business diversification strategy. As acquisition is the process to takes over the controlling interest of rivals, so another concern was to gain market share and competencies, from the previous successful growth was achieved primarily through acquisition gave them an experience of being successful again by expending them with appropriate strategy. Barracudas consideration of acquisition is also being helpful to establish a powerful brand name in the furniture segment, but not forgetting valuable knowledge, skill and experience of the employee which will transfer into Barracuda from the acquired industry. Distribution channel of the acquiesced firm is an added advantage to cut or reduce unnecessary cost for Barracuda. From the above argument it is well understood that the Barracuda considering acquisition is a beneficial steps of the company to enter into furniture. 2. Given the history of Barracuda, what guidelines would you suggest to management regarding their acquisition strategy in the home furnishings industry? Based on the case, Barracuda successful growth has been achieved primarily through acquisition, the company tends to let the acquired businesses run independently shows a clearer picture of the good and efficient management of Barracuda. However, there are several guidelines regarding their acquisition strategy in the home furnishings strategy. First is when organization competes in a no-growth or a slow-growth industry. In order to acquire small firm with efficient operation and good management team, then start looking to fragmented industries. Second is when adding new, but related, product would be significantly enhancing the sales of current product. As early base of Barracuda Inc is lamp fixture manufacture into multiple hardware and plumbing fixture

product and has identified the home furnishing business as shaving characteristic management team. Third is when new, but related, products could be offered at highly competitive prices. Barracuda after do an acquisition, they can put the price of higher than their competitors. As quality of the product are customer focuses. 3. Given Barraculas history, what threats does Barracula face in entering the furniture industry through acquisition? Given Barracudas history of having high NPAT in other businesses, ne of the threaths of entering the home furnishing business is low NPAT as historically this industry has lower return due to lack of good management and operation. Barracuda may not be able to run the home furnishing segment indecently and this may require higher attention from managers to integrate and build the business and it may cause other pertinent issues to be neglected. Barracuda has been successful with their technological and marketing innovation but the fact that lower NPAT in the home furnishing segment may lead tto shoft of focus from innovation to financial success rather than strategic control of other business. Innovation may be ignored as Barracuda tries to achieve synergy and improve financial standing of the newly acquired. 4. What is the core business of Barracuda and identify the company strength. The core business of Barracuda is lamp fixture manufacturer into multiple hardware and plumbing fixture product that it sells to professional. The strength of Barracuda is successful in the faucet segment, which is practically reinvented through such technological innovation as the washerless faucet, and marketing innovation like branding and good better best merchandising. Following with next strength which is strategy across its business and coupled with explosive growth of DYI channel.

5. describe at least 2 stratgies used by Barracuda. a) Product developmental product developmental is a strategy that seeks in increased sales by improving or modifying present products or services. Product developmental usually entails large research and development expenditure. As stated, Barracuda is seeking increased sale by improving present on services or developing as new one. b) Related diversification Related diversification is about adding new but related product or services. The firm management is looking to broaden its revenue base and has identified the home furnishing business as sharing many characteristic with faucets, prior to Barracuda entry into faucets. It can help the business will more efficient and good management team.

Section B Case 2 : Jewell Company 1. What are the strengths and weaknesses of the above strategy statement? Good strategies help managers to make tough decisions, which necessarily require them to make tradeoffs. In terms of strengths, the best answers will note that Jewells strategy is fairly precise with regards to target customers (volume purchasers like Wal-Mart), product characteristics (staples, manufactured items), how the firm plans to win the customers business (merchandising and multipleproduct offering), and measurable performance objectives. In terms of

weaknesses, staple manufactured products encompass a multitude of potential products (pens to hairbrushes to curtain rods) so the statement does not signal any particular type of manufacturing expertise. The statement also does not tell us how the firm plans to grow (internal means versus acquisition). Finally,

management has stated a growth goal, not a growth plan. Absent a clear plan, strategic compromises and inconsistencies in the pursuit of growth will likely erode the competitive advantage that Jewell had with its original varieties of product offerings and target customers.

2.

Which groups of stakeholders does Jewells statement appear to speak to? This statement focuses on capital market stakeholder groups and one product market group, the customers. This is because Jewel manufactures and markets staple volume lines to the volume increase. They want their product get high demand from customer as well as customer has many products to choose from then get the increasing in ROI. Customers are become their focuses to speak to and then maximum their market leverage.

3.

Does this statement describe strategic intent and/or strategic mission? Strategic intent is internally focused. It is concerned with identifying the resources, capabilities, and core competencies on which a firm can base its strategic actions. While strategic mission is a statement of a firmss unique purpose and the scope of its operations in product and market terms. Strategic mission flows from strategic intent. It is externally focused. It describe strategic intent and strategic mission when Jewell mention that they want to aim to increase shareholder value by continuing to build a company with superior earnings per share growth and ROI, and to earn reputation for excellence in performance and management. Besides that Jewell also said that they plan to do the merchandising to the customer good market a multi-product offering with superior customer service performance for maximum market leverage.