A Real Increase in Profitability?

The table below highlights a firm that has dramatically increased its profitability in a few years. But they have focused on a short-term, not long-term, basis and you need to determine what impact this may have.

 

ACTIVITY/TASK

Year 0 Year 1 Year 2 Year 3
Sales 20m 19.50m 18.6m 16m
Costs 5m 4.75m 4.6m 4m
Operating profit 15m 14.75m
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Are these good growth results?

The following food retailer has experienced significant top-level growth over the past few years. But underpinning their results is a significant increase in franchised stores/outlets, so are the results as good as they appear?

 

ACTIVITY/TASK

Here are some top-level financial figures for a food retailer growing primarily through a franchise system:

Year 1

Year 2

Year 3

Year 4

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Going Glocal

When Proctor & Gamble entered China, around 25 years ago, they adopted a glocal strategy, whereas their major competitors adopted a multinational strategy. This approach has proven to be quite successful in the long-term, but was this the best approach?

 

ACTIVITY/TASK

Procter & Gamble is one of the largest businesses in America. Their major brands include: Gillette, Duracell, Olay, Oral-B, … See the full activity...

International Strategic Alliances

In recent years, a number of Australian universities have expanded into international markets (particularly in South-East Asia), usually utilizing a strategic alliance with an existing local college. But strategic alliances are designed to provide mutual benefits, is this the case here?

 

ACTIVITY/TASK

Australian universities are faced with a mature education market in Australia. While there are changes in preferences for … See the full activity...

Best International Market Entry Option

After significant success in the local market, the company is looking to market to the more affluent markets in Asia markets. But the question is how they should do this? Which option would you recommend from the list below?

 

ACTIVITY/TASK

“Full of Fun” fruit juices are a novel range of drinks primarily targeted at children aged 4 to 12 years … See the full activity...

Should we expand internationally?

A chain of well-known surf wear stores is considering expanding to international markets, but they are unsure whether this is a good idea for their business – can you help them decide?

 

ACTIVITY/TASK

Britney:

Thanks everyone for coming to the meeting. As you know, the company has been considering international expansion and I would just like to gather your … See the full activity...

Impact on Positioning

This activity outlines two situations in regards to the potential impact on the firm’s positioning due to their distribution channel selection. Your task in this activity is to answer the assessment questions at the end regarding each situation.

 

ACTIVITY/TASK

Increasing Sales of Jeans

The manufacturer of a well-known brand of jeans has determined that its selective distribution strategy is limiting … See the full activity...

A Pricing Strategy Success?

In the following case study, your task is to determine whether the firm should continue with its current strategy (which is mainly priced-based) or does it need to adopt a new approach?

 

ACTIVITY/TASK

Credit unions are like small banks that usually only offer services to individual customers (that is, non-businesses). What is unusual about many of them is that they … See the full activity...

Which Brand Strategy?

The following is an excerpt from a manager’s meeting for firm that manufactures pretzels (a snack food that is considered to be a healthy alternative to chips/crisps – quite popular in the USA, but not so much in other countries). In the discussion they highlight the four broad brand strategy choices. Assuming that you were part of this management team, See the full activity...

Aligning New Products to Strategy

Your task in this activity is to generate some potential new product ideas/concepts that would logically fit with McDonald’s overall strategy. As we know, new products should not be introduced in isolation, or just to take advantage of a market opportunity. New products should be introduced to help implement and deliver the firm’s overall strategy.

 

ACTIVITY/TASK

The following assumed example … See the full activity...

Why Firms Introduce New Products

Most firms will have growth goals, which is one factor that drives firms to introduce new products. But there are other factors/drivers too. Review the following examples and try to identify a range of reasons for firms deciding to introduce new products.

 

ACTIVITY/TASK

  1. A firm that has been the number two in the market for the past few years now
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Will Profit per Customer increase each year?

Do customers become more valuable over time? In this exercise, you consider whether a customer is likely to increase his/her relationship with a firm over time, by evaluating likelihood of them progressing through a relationship life-cycle path.


ACTIVITY/TASK

Let’s consider the possible relationship life-cycle path of an average customer of a phone company, which also markets a range of home … See the full activity...

Do Businesses Make Joint Decisions?

In the case study below, this B2B firm is considering their strategic growth options. However, they are faced with two competing paths. As you have been called in as an adviser to the firm,  your challenge in this task is to help determine the best approach for the firm AND to work out if the two viewpoints can … See the full activity...

From Research to Strategy

In this mini case study, the firm is discussing the results of some of their market research and considering what they should do next. Your task is to help them decide. So given the research results given and the other information in the case, what advice would you give them?

 

ACTIVITY/TASK

Clive, the owner of the Little Italy … See the full activity...

Change in Retailer Relationships

In this exercise, you need to evaluate how well this manufacturer is progressing with their retailer relationships (in its micro-environment). As you can see, they have increased sales to retailers by $2m and they have also increased the number of retailing chains that they deal with. These results are obviously pleasing, but are there any areas of concern and what See the full activity...

Should We Expand?

In this exercise, you are presented with a summary of a discussion from a manager’s meeting, which highlights the for and against of a franchised food retailer (like Subway) expanding their product range. As you see, their proposed move has both significant opportunities as well as substantial risks. Your task is help the firm decide what they should do.

(See the full activity...

What’s the Best Strategy Choice?

In this mini-case study, you need to select the most appropriate growth strategy for a producer of cheeses from a choice of seven options. The key to this exercise is to consider the firm’s existing strengths and how they could best leverage those in the marketplace. Potentially you may choose to integrate two or more of the strategies provided in See the full activity...

Assessing a Strategic Alliance

In this mini-case study, you are required to determine whether a joint venture between Tesco Bank and Aviva (insurance) has benefits for both players as well as customers. To do this task successfully, you will need to consider what capabilities each organization is likely to provide to the strategic alliance.

 

ACTIVITY/TASK

In mid-2012, Aviva (a major insurance company with … See the full activity...

Using the BCG Matrix

In the following mini-case study, you are required to categorize the corporation’s business portfolio into the four boxes of the BCG (Boston Consulting Group) model. You then need to decide how the management should allocate $250 million funds available across their strategic business units (SBUs), using the BCG matrix as a guide.

 

ACTIVITY/TASK

The AHI Group is a hypothetical … See the full activity...

Understanding the Product/Market Growth Matrix

Your task in this activity is to classify the examples listed below into one of the four categories on the  product/market growth matrix (also sometimes referred to as Ansoff’s model). You will need to consider whether it is a new or existing product and market for the firm. A diagram of the product/market growth matrix has also been provided below … See the full activity...