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Vaibhav (30) - Learning Journal Dated 27.04.2019
Vaibhav (30) - Learning Journal Dated 27.04.2019
Vaibhav (30) - Learning Journal Dated 27.04.2019
STRATEGIC LEADERSHIP
Submitted by:
C K ANAND
Roll No. 010
PGDM-EM
Dated -07.10.2019
Hambrick Article
1. Arena -- (Corporate Strategy-as it cuts across all the departments)
-Product
-Market
Attractiveness- Analyze the porters 5 forces (It will tell whether the industry is
attractive or not)
Capabilities- (Todays or Tomorrow )
E.g. What are the threats or opportunity for new product in the market?? like flavored
Coffee
High Income Asian country , Nordic Country (Demand and Supply is already very high in
Nordic Countries so Starbucks might face a huge entry barrier),
-Customer (Its very important that what type of customer we want to serve through
our product)
Are we attracting right customers??
E.g. Attracting Children through serving specific snacks can work against our strategy of
providing 3rd place experience)
3. Vehicle (Entry Strategy) (Have to invest 126 million cash & cash equivalents)
like JV, franchisee, Acquisition , On your own (through green field)
4. Economic Logic (decision based on finances, numbers)
Calculate ROCE (what’s going to be your new overall ROCE after adding the new
products and see how will it affect overall business)
Also see 5-6 years Balance sheet and PnL projections
5. Staging
o Activities
o Sequence of activities
o Actor/Capabilities and responsivities
o Speed/Milestone for each activity
o Resource
o Coordinator
C. Profit (high)
B. Profit (high)
Volatility
Volatility (low)
(high)
D. Profit
A. Profit (moderate-
(moderate) low)
Volatility (low) Volatility
Low Entry & Low Low
(high) Entry & High
Exit Barrier Exit Barrier
Product cost – End of the life product – much cheaper therefore people with high
aspirations but couldn’t afford can buy and also location of store is convenient.
Customer service
Post Sales
-24 hr toll free no. –(directors see that no call is left un attended)
-Credibility of shop by fulfilling the promise (requirement – positive credibility)