MGT 699 Class 3 Murad Mithani

Strengths Weaknesses

Opportunities

Threat

Multiple levels of external environments

Competitive Socio-economic Legal Political Global

Vary in their influence over time

Proximate environment has a smaller effect at any point in time, but more persistent effect

Porters Five Forces Model

Rivalry amongst competitors Threat of new entrants

Availability of substitutes
Bargaining power of buyers Bargaining power of suppliers

Porters Five Forces: Desktop Computers

Rivalry amongst competitors: Very high Threat of new entrants: Very high

Availability of substitutes: Very easy

Bargaining power of buyers: Very high Bargaining power of suppliers: Low

Is it a good market to enter = No!

Porters Five Forces: mp3 Players (pre-Ipod)

Rivalry amongst competitors: Very high Threat of new entrants: Very high Availability of substitutes: Very easy Bargaining power of buyers: Very high Bargaining power of suppliers: Very Low Is it a good market to enter = No!

Apples Ipod has been a success . . . Why? Managerial intuition


1. 2. 3. 4. 5. 6.

Pick one of the following products and analyze if you would recommend entry into this business based on Porters Model: Real-estate property dealership Electronic newspaper business LED light manufacturing Generic drug manufacturing: Pain killers Online sales of musical instruments Private 4-year degree college
Porters Five Forces Model

Rivalry amongst competitors Threat of new entrants Availability of substitutes Bargaining power of buyers Bargaining power of suppliers

Product

New

Existing Market + New Product =

Product Development Existing Market + Existing Product = Market Penetration Existing

New Market + New Product = Diversification Existing Product + New Market = Market Development New Market

Existing

Product Product Development: Diversification: Critical resources

New

Integrated focus
Market Penetration: Market Development: differential pricing, internationalization New

Existing

lower prices, mass marketing Existing

Market

Product

New

Existing Market + New Product =

Product Development Existing Market + Existing Product = Market Penetration Existing

New Market + New Product = Diversification Existing Product + New Market = Market Development New Market

Existing

Form a Group (done)

Pick your First Case (by today) Only two groups can select each case Present to the Reviewers and the Class on the day of presentation Presentations:
Case 1 (Apparel Retail) : October 1 Case 2 (Hotel): October 9 Case 3 (Online University): October 15

Prepare a Report of Findings (Reports are due on the day of presentation. Report for the final case is due in the 2nd last class)

Presenters Marks: 1 10 (Final: 1 20) Reviewers

Scheduled in advance Solves a case distributed to the class Will get at least 2 weeks to solve the case, prepare the presentation and write the report Have 10 minutes to present and convince Reviewers

Marks: 0 or 5 Jury Marks: 0 or 5 Instructor

Picked by the instructor on the day of presentation Will get 10 minutes to review the report before the start of the presentation (during the break) Will have 5 minutes to ask questions Questions have to demonstrate to the jury that they understand the case and their evaluation is unbiased
Picked by instructor on the day of presentation Cannot ask any questions to Presenters or Reviewers To evaluate if Reviewers have adequately performed their duty (Yes/No) Will get 5 minutes to reach a verdict To evaluate if Jury adequately performed its role (Yes/No)

Max Marks:

2 Introduction

10 Total Marks Reviewer Group

5 Pass/Fail Jury Group

5 Pass/Fail

Date 1-Oct 1-Oct 9-Oct 9-Oct 15-Oct 15-Oct

Presentor Group

Statement of Alternative RecommendConclusion the Problem Identification ation

Introduction (~ 1 page: 2 marks) : Background of the case and of the key characters Statement of the Problem (~ 1 2 sentences: 2 marks) : The problem or opportunity central to the case Available Alternatives (~ 2 pages: 2 marks): Identify all possible choices that can resolve the problem or help benefit from the opportunity Recommendation (~ 2 pages: 2 marks): Suggest one or more of the alternatives and explain why Conclusion (~ 2 pages: 2 marks): Summarize your argument. Explain what do you think will happen if the solution is not accepted. Identify boundary conditions for your recommendations and indicate what assumptions need to hold for your plan to work
Final Report: Include pro-forma income statements and explanations for the first 5 years of the suggested business and the overall corporation (No limit on the number of pages: 20 marks)

Reviewers should have already understood and solved the case on their own prior to the presentation.
They will have 10 minutes before the start of the

presentation to examine the report. At the end of the presentation, the Reviewer group will grade the quality of the presentation and the report on the criteria listed on the following slide (out of 10 or 20 marks).

If the Jury group finds that the reviewers have been prepared, have been unbiased and have shown competence, Reviewers will get 5 marks. If the instructor finds that the Jury understood the case, has been unbiased and have shown competence in evaluating the reviewers, the Jury will get 5 marks.

Product

New

Existing Market + New Product =

Product Development Existing Market + Existing Product = Market Penetration Existing

New Market + New Product = Diversification Existing Product + New Market = Market Development New Market

Existing

Select an existing company (anywhere in the world) Identify a product/line of business based on Ansoffs Strategy Matrix that your group suggests the company should focus on Develop a Strategic Management Program for the business in the context of the company and its environment. In particular, identify:

Strategic planning process used to identify the area of growth Strategic organization required to manage it Strategic leadership necessary for its success Strategic controls needed to ensure the continuity of success Include financial forecasts (both for the business and the corporation)

Report due: 2nd last class

Presentation: Final class - 20 minutes 20 marks

Max Marks:

20

Presentor Introduc Statement Alternative Recomm- Viability of Pro-Forma Concl- Total Group -tion of Problem Identification endation Business Plan Statements usion Marks

Reviewer Pass/Fail Jury Group Pass/Fail Group

Finalize your class reading by selecting one of the readings by tonight. Use example of the handout to understand what you are expected to distribute to the class.

Date

Presenter's Name

Presented Paper

2 2 2 2 10 Use of Explanation of Identification Group Explanation Total Illustratiive Implications of Limitations Handout Affiliation of Concepts Marks Examples for Managers of Concepts

Max Marks:

24-Sep
24-Sep 1-Oct 1-Oct 9-Oct 9-Oct 15-Oct 15-Oct 22-Oct 22-Oct 29-Oct 29-Oct

Group Presentation: Professional

Individual Presentations: Casual

Group: Presentation: 10+10+20 Review (Evaluation): 5+5+5 Jury Duty (Governance): 5+5+5 Individual: Presentation (Teach) Exam

= 40 = 15 = 15
= 10 = 20 Total: 100 upto: 25

Bonus Marks: Variable in class discussions (Group/Individual)

Strategy as Strategic Positioning and not Operational Effectiveness Ques: Do you agree?