Business Strategy - Student Log

The log must be filled out by all students for each class from session 3-12

Exam number: 4111037

Session: 3

Business Case: US Airline Industry in 2018

LTP Idea-paper

1.Assess the overall financial performance of the US airline industry during the past
20 years.
2.To what extent can the industry’s low average profitability during this period be
attributed to the structure of the industry? Which of Porter’s five forces has had
Restate the Case the biggest impact in depressing industry profitability?
Questions: 3.What is the outlook for industry profitability during the next five years (2019-
2023)?
4.$Are there any strategies used by the airlines that have been effective in
moderating the forces of competition? Are there any strategies that the airlines
could use to improve industry profitability in the future?
5.In your view, how relevant is the industry analysis at the time of

• In terms of financial performance, the industry is a mess. This metric

Summarize the 1st
presenting group’s
answers to the case
questions:
Note: If you are in the 1st
presenting group, then
summarize the answers
from the other group.
inquires if the airline's low financial performance is due to poor
management or if it is the result of weak industry economics.
• During the third decade of the twenty-first century, there were only a few
companies, airlines to pay the cost of capital, which were ryan air, emirates,
Singapore airline, and southwest. However, rise in airline financial
performance in 2013 and 2017 is greater and more sustained than in prior
times of profitability. They arrive/survive in economic growth following the
2008 financial crisis and fall in crises where some of the factors help.
• For supply power, we have monopolies and duopolies created by aircraft
manufacturers, specifically Airbus and Boeing. At this moment, we have a
highly competitive business due to the substantial market share of
numerous airlines in the United States.
• The reconsolidation in industry have resulted more control in price
competition and major airlines were showing which allows to increase the
demand to fulfill existing capacity.
 • The big deregulation on 70’s and 80’s was the major aspect. Previously,
What evidence, plane travel was primarily reserved for the wealthy. It was too expensive
frameworks, and and difficult, and it did not serve those who desired to travel more
theories were used extensively. So, the authorities and the government agreed to de-regulate
to support their the market. When you look at it, what happened to that industry is that it
answers:
became flawless.

Yes, I do agree with what the group had presented as it demonstrates how industry
Do you agree with participants' initiatives might assist minimize competitive pressure and increase
the answers above? profitability. The instance also demonstrates how difficult it is for industry
Why or why not? participants to avoid damaging competition when demand is low and spare capacity
is pervasive.
Based on your own 7.5
reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)

Session: 4

Business Case: Lithium-ion Battery Industry

LTP Idea-paper

1. How will the structure of the LIB industry evolve over the next five years?
2. Will the industry generate an attractive rate of profit over this period?
Restate the Case 3. The Volkswagen Group is considering whether to follow Tesla’s lead and
Questions: invest in producing its own battery packs.
1. What advice would you give VW?
2. What advice would you give other auto manufacturers?

Summarize the 1st
presenting group’s
answers to the case
questions:
Note: If you are in the 1st
presenting group, then
summarize the answers
from the other group.
• This industry will not change significantly but it's likely to have a change of
ownership through mergers and acquisitions over the next five years.
• The main problem for this industry is the limited supply of raw materials,
which has an impact on all of the different forces, especially industry
competition, because when you have limited more materials, you have to
buy at a higher cost, and if you have to buy at a higher cost because
everyone else wants to buy it, then the price goes up and the profitability
rate goes down, so there are a lot of people who want to buy a few
 products, which would increase the price and decrease the profitability
rate.
• Volkswagen should not enter the market today, but rather in the future,
because electric cars are still very expensive, and don't believe that it
justifies producing your own batteries for all. And, governments, at least in
Europe, have decided that they want millions, and millions of metrics puts
on the road by 2025 or 2020 thirty 2030 or 2035, so there's clear go.
• Taking about the strategic alliances as china manufacture 75% of the global.
As this industry has not government support to achieve the national
strategic advantages which means that they have foreign grief on the
source of the raw material and the initial and refining process now. As now
lot of uncertainties going on especially the tension between China and the
What evidence, rest of the world in the short term and this could cause a breakdown of the
frameworks, and global supply and as a result the availability and the cost of raw materials.
theories were used
• Looking at the perspectives of the porter’s five forces, supplier, potential
to support their
answers: entrants, the media, the buyers, and other stuffs are the key components.
Looking at the suppliers, there are only few countries who have access to
the raw materials. For instance, one cannot dig grave and find lithium
because it does not make sense. And, there is a high barrier of entry, and
the government restrictions makes it very hard to become a supplier.

• I somehow agree to the answers as the demand is going to increase and

the producers will address that by adding capacity. However, the demand
for these electric vehicles will grow even more slowly than expected
perhaps but maybe other demand for the batteries is going to emerge. Also
do not have good data on profitability of the industry and that's the
problem that we have players in the industry typically they don't want to
share their data obscure that actual earnings. we do have some data, but
Do you agree with they do not separate out then their profits from the team beyond the
the answers above? reason. So that's a challenge it is however generally thought that the
Why or why not? margins are thin right and some even may need losses and that is what we
can see because the prices went down significantly over the years now that
leads us to the profitability.
• There is limited product differentiation in this industry. here the battery as
such doesn't allow you to differentiate a lot they are scaling. So, it's not
likely that there will be many players there and scale economies is also the
key factor as wide big auto manufacturer may be in a position.
 Based on your own 8
reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)
Session: 5
Business Case: Tesla
LTP Idea-paper
Restate the Case
Questions:
Summarize the 1st
presenting group’s
answers to the case
questions:
Note: If you are in the 1st
presenting group, then
summarize the answers
from the other group.
What evidence,
frameworks, and
theories were used
to support their
answers:
1. What is the strategy of Tesla Motors? How does its business model differ
from that of the leading automakers?
2. In the market for plug-in electric vehicles, how do the resources and
capabilities of Tesla compare to those of the established automakers?
3. Explain the rationale for Tesla’s strategy. To what extent does this
represent an optimal response to Tesla’s strengths and weaknesses relative
to the established automakers?
4. Assess Tesla’s decision to make available its patents to other companies.
• The primary goal was market penetration with a proof of concept about its
roaster, and then they moved on to international expansion, but they have
just called it as product development and market development because
they are residing in Asia and Europe.
• The key advantage of the established automakers is they can reap the
benefits of skills in use. However, tesla have technical capabilities and some
production difficulties. To cover up this challenge they are trying to expand
into international market through vertical integration with a Gigafactory in
Europe and Asia.
• The strength of Tesla would be they are constantly bringing new
technologies on the market such as cars, energy storage or even solar
panels.
• Tesla focused on their product differentiation. First, they started with the
niche and then mass-produced cars then they have a unique look for high
end consumers. They have also reduced their production cost by
developing their own battery supplies
• They even expand into the international market with their vertical
integration with a giga factory in Europe and Asia and yeah test revenue
from different channels such as energy storage and we can see that the
 revenue is increasing and that could be used to increasing bandwidth brand
image and conditions.

• I somewhat disagree with their answers as they mentioned that the

production of the different parts is aligned with the overall strategy and the
Do you agree with business model aligns with the overall mission to get mass produced
the answers above?
electric vehicles into the market. Rather in my point of view, they are
Why or why not?
basically trying to save the planet, and so they are looking for a sustainable
solution.
Based on your own 7
reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)

Session: 6

Business Case: Wal-Mart Inc., 2018

LTP Idea-paper

1.How well is Walmart performing? To what extent is its performance attributable

to industry attractiveness and to what extent is it attributable to competitive
advantage?
2.In which of Walmart’s principal functions and activities (namely: purchasing,
distribution and warehousing, instore operations, marketing, IT, HRM, and
organization and management systems/style) do its main competitive advantages
Restate the Case lie? Identify the distinctive resources and capabilities in each of these functions and
Questions: activities.
3.To what extent is Walmart’s competitive advantage sustainable? Why have other
retailers had limited success in imitating Walmart’s strategy and duplicating its
competitive advantage?
4.What challenges does Walmart face in 2018? What measures does it need to take
to sustain its recent performance and defend against competitive (and other)
threats
 • The basic definition of strategy is concerned with how a company may
really attain its aims, and. Give it what it has and the environment it is in so
that it can begin with objectives. A corporation that does not have
objectives or a defined purpose cannot have a strategy, therefore strategy
entails some phantom setting, and we looked at performance indicators to
Summarize the 1st gauge how well companies are fulfilling their goals as they progressed.
presenting group’s • When one think of which industries to enter, you don't ask. Or do you think
answers to the case of which industries are more attractive than others and which segments of
questions: a specific industry is particularly profitable? You're not really thinking of
Note: If you are in the 1st
presenting group, then what I have and what makes me unique to be able to enter that. So
summarize the answers environmental analysis sort of applies a broad brush across all the
from the other group. companies and organizations.
• The importance of a company's resources and capabilities may be
understood by considering strategy in general as the application of forces
of action through the deployment of a company's resources that are
required for achieving its objectives.
•
Wal-Mart's success stems from its ability to combine industry attractiveness with
competitive advantages. Discount retailing is not a profitable industry but if we look
What evidence, at the performance of Walmart, we can see their performance is strong. Wal-Mart
frameworks, and operates in a fast-paced, chaotic, and highly competitive market. Wal-Mart's
theories were used
success is since it has so many capabilities, other retailers don't know which one is
to support their
answers: truly to blame for long or sluggish costs. They did not compete in space throughout
their growth; instead, they moved into little communities that could only support
one big box shop.
I do agree as they have considering whether a firm can extend its competitive
Do you agree with advantage to new markets, the key consideration is whether it can replicate or
the answers above? replicate its core resources and capabilities within the new market (i.e., do they
Why or why not? match the key success factors for success in that new market?

Based on your own 7

reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)

Session: 7

Business Case: BP Organizational Structure and Management Systems

LTP Idea-paper

1. What were the key features of the management system created by John
Browne at BP?
2. To what extent was this management system a factor in causing the Texas
Restate the Case City and Deepwater Horizon disasters?
Questions: 3. What types of organizational structure and management systems are most
suitable for an international oil and gas major?
4. What lessons, if any, should other oil and gas majors draw from BP’s
strategy, structure, systems, and mishaps during the period 1995 to 2009?

Summarize the 1st
presenting group’s
answers to the case
questions:
Note: If you are in the 1st
presenting group, then
summarize the answers
from the other group.
What evidence,
frameworks, and
theories were used
to support their
answers:
• In 1995, Browne took the job and transform the structure cage which really
succeed and hence inspired by the Silicon Valley and their structure
became the division structure.
• Leaders were given the freedom for operating these units and had a direct
responsibility for delivering performance.
• This case management system has a huge impact on causing disaster. BP
has not provided effective safety and has not adequately established the
safety process. The management system did not effectively translate
expectations into measurable material. Basically, inappropriate
performance metrics, inadequate resources, failure to brad oversight and
the lack of functional safety culture are the major reasons behind the
emergences of Texas City and Deepwater Horizon disasters.
• The group talked about the contingency theory and the mechanistic theory
however they have concluded that mechanistic organization would be the
better suitable management system for companies in the oil and gas
industry.
• They argued that the cost causing culture should not overrule safety and
workplace and this is the main lesson to crawl from the disasters caused by
BP. Hence risk management practices should be more prioritized by oil and
gas majors.
• BP organization structure focus in authority and accountability, they
change how they do it. They keep accountability in higher level and hire
managers to control accountability.
• There are the unsuccessful transfer form mechanistic organizations forms
to the organic organizational forms.
• One of the key features of the management system created by the John
Browne was the use of the individual performance contracts which later
results on the over reliance on performance contracts.
 • There are some things that I don’t agree like there is mismatch on the
business system like Silicon Valley mainly focus on innovation, focus on
Do you agree with performance indicator factors like return on average capitals. Silicon Valley
the answers above? have different capital structure.
Why or why not? • The underlying strategy here is the low-cost strategy but there is much
more to it. The strategy to give more power to empower the employees.

Based on your own 7

reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)

Session: 8

Business Case: Starbucks in 2018

LTP Idea-paper

1. What is Starbucks’ strategy?

2. Assess Starbucks’ strategy in relation to:
1. Starbucks’ financial performance
2. The overall coherence of Starbucks’ strategy in terms of its fit with
the company’s external and internal environments and the internal
Restate the Case consistency of the strategy
Questions: 3. Does Starbucks operate in the interests of its shareholders or its
stakeholders?
4. How has Starbucks achieved a differentiation advantage in the coffee
business? Is this a sustainable competitive advantage?
5. What threats does Starbucks face?
6. What should Starbucks do to achieve high performance in 2022?

Summarize the 1st The blue ocean strategy and the strategic alliances seems to the main strategy of
presenting group’s the Starbucks. But Starbucks is not able to maintain its quality as per the price of its
answers to the case coffee. So, improving the quality is supposed to be the main advice for Starbucks.
questions:
However, Starbucks is ahead in the game in terms of fulfilling the customers fancy
Note: If you are in the 1st
presenting group, then personalized drinks.
summarize the answers
from the other group.
 • Their product differentiation strategy in the sense that the customization,
What evidence, innovation, digitalization as in the payment gateway, ordering through
frameworks, and phone, etc.
theories were used
to support their
answers:

• Yes, I do agree with the answers because it is pretty evident that Starbucks
Do you agree with focus on their product differentiation by offering various products through
the answers above? different medium.
Why or why not? • The easy availability of the Starbucks is also one of the reasons.’

Based on your own 8

reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)

Session: 9

Business Case: Eastman Kodak

LTP Idea-paper

1. What was Kodak’s digital imaging strategy during 1992-2012?

2. Why did the strategy fail?
Restate the Case 3. Was there a better alternative?
Questions: 4. What lessons might other companies facing disruptive change in their core
business (e.g. Microsoft, Sony, Walt Disney) draw from the experience of
Eastman Kodak?

Summarize the 1st
presenting group’s
answers to the case
questions:
Note: If you are in the 1st
presenting group, then
summarize the answers
from the other group.
• Kodak was one of the firms that helped to launch the digital revolution in
the 1990s. Kodak was primarily concerned with developing the corporation
into a contemporary photographic enterprise using digital imaging. The
firm appointed George Fisher as CEO to assist implement the company's
digital imaging strategy, and Fisher reiterated that the company's main goal
was not in the photography sector, but in the image business.
• Kodak's inflexibility and inability to keep up with the changes brought about
by disruptive technologies led to its downfall, and the firm was declared
bankrupt in 2012.
• Diversification was the better alternative.
 • As a result, to be successful, a corporation must be able to foresee change
and plan for how to best exploit innovations to its benefit.

Even after being a global leader for decades, the inflexibility and the inability to
What evidence, keep up with the speed of the technology’s development, kodak went bankrupt.
frameworks, and Change is the only constant in the world of business and technology, and many
theories were used businesses, no matter their size, may end up in ruins if they do not implement
to support their effective strategies to help them develop, survive, and adapt to changes in the
answers: market. This indicates the importance of the proper strategic management at the
right time.
I do agree with the answers since it shows the importance of right strategy at the
Do you agree with right time and the necessity of change and innovation to keep up with the emerging
the answers above? development.
Why or why not?

Based on your own 9

reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)

Session: 10

Business Case: Video Game Console Industry 2018

LTP Idea-paper

1. What are the key success factors in the video games hardware industry? To
what extent has this been a “winner-takes-all” industry in the past?
2. What factors have changed the dynamics of competition and the basis for
competitive advantage in the industry during recent years?
Restate the Case
3. Looking ahead, which factors will determine the competitive advantage in
Questions:
video during the coming years?
4. Make strategy recommendations for:
–Sony
–Microsoft
–Nintendo

Summarize the 1st
presenting group’s
answers to the case
questions:
Note: If you are in the 1st
presenting group, then
summarize the answers
from the other group.
What evidence,
frameworks, and
theories were used
to support their
answers:
• Basically, hardware, timing and the effectives of the product launch seems
to be the success factors for the video game industry.
• By collaborating, controlling expectations, and timing, one can win
standard battles against other companies.
• Sony and Microsoft should "innovate" the entertainment experience by
using their formidable brands. Nintendo should continue to enhance the
ease-of-use experience for customers, as their platforms in general are
inferior to those of the PlayStation and Xbox.
• Analyzing the existing and sources of network externalities through the
user linkages and through the connection of hardware, software, and the
customers.
• New technological advancement, the growth in size and breath are the
factors behind the change in dynamics of the competition and basis or
competitive advantage.

Yes, I do agree as the video game industry proper in terms of the advancement in
Do you agree with the technology and the innovation. The collaboration with other companies and the
the answers above? timing to launch the product also determine the success of the industry.
Why or why not?

Based on your own 7

reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)

Session: 11

Business Case: New York Times

LTP Idea-paper

Restate the Case
Questions:
Summarize the 1st
presenting group’s
answers to the case
questions:
Note: If you are in the 1st
presenting group, then
summarize the answers
from the other group.
What evidence,
frameworks, and
theories were used
to support their
answers:
Do you agree with
the answers above?
Why or why not?
Based on your own
reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)
1. Assess the New York Times’ strategy for addressing competition from
online news sources.
2. Given the heritage of the New York Times, can it hope to compete with
online news providers and, if so, what further changes must the company
make to its product, its resource base, and its internal management
structures and systems?
3. What alternative strategies are available to the New York Times? Which of
them might be preferable to the strategy currently being pursued by the
company?
• While most US newspapers lost from the move in readership from print to
internet, national and international magazines prospered. Their aim was to
manufacture items that were especially tailored to their target audience.
• With someone as strong and wealthy as Jeff Bezos on board, the firm can
feel more financially secure and concentrate their energies on creating
tactics to grow their audience.
• People no longer rely on traditional news sources for their news since
digital platforms provide them with information more quickly.
• Another viable option is to collaborate with huge media businesses that
have demonstrated success in their respective fields.
• It exemplifies the difficulties that a company may experience when an
industry undergoes a technological revolution.
• This case examines the consequences on the printed news industry as
content, readers, and ad income transition to a digital platform. NYT must
adjust quickly to the new internet sector by abandoning old business
methods and embracing new techniques to attract new subscribers and ad
income.
• The problem for the New York Times is to adapt to the new digital
environment while maintaining the high standard of journalism for which
it has been known.
Yes, I do agree with the answers as magazines and newspaper came to attraction
after the shift of the newspapers from print to internet. This changes the whole
perspective of this industry. The technological revolution brought by New York
times makes its easy and convenient for the readers all around the world. Just with
the subscription, anyone can get the updated through email and other media.
8
Session: 12

Business Case: Dropbox

LTP Idea-paper

1. What opportunity did Houston see? Specifically, what are the key elements
of Dropbox’s current business model?
2. Is Dropbox profitable as of June 2010? Are you optimistic about its
prospects?
Restate the Case 3. When he applied to Y Combinator, what hypotheses did Houston hold
Questions: about key elements of Dropbox’s business model? As of June 2010, which
of these hypotheses have been confirmed and which have been discarded?
4. What should Houston do about the decision posed at the end of the case
i.e. creating a separate version for small and medium-sized business (SMB)
customers? What process should he use to make this decision?

Summarize the 1st • Overall, Dropbox's tale is rather normal, with its ups and downs. That is not
presenting group’s to say they haven't had a lot of success throughout the years. They are still
answers to the case one of the most powerful, if not the strongest, players in their sector of
questions:
Note: If you are in the 1st
business today. They do face stiff competition, however: Google Drive by
presenting group, then Google, OneDrive by Microsoft, and iCloud by Apple are all getting
summarize the answers increasingly popular, making it a difficult ocean to navigate for Dropbox.
from the other group.
• The key components of the drop box business model were the accessibility
and simplicity of the product´s and services, high quality of the services,
What evidence, proper management of the complex business operation.
frameworks, and
theories were used • They talked about the market for the single product version which basically
to support their were the consumers and businesses, but they wondered about the creating
answers: a strategy that segmented their user base by creating different versions of
separate products.
.
Yes, I agree with the answers above since the future possibilities and opportunities
of droboxes endless which is due to the increase in demand for the online back up
Do you agree with and storage services apps.
the answers above?
By market segmenting and targeting these small and medium business as this
Why or why not?
business drobox is optimizing their opportunity for profitability for profitability as
these generally requires more storage.
Based on your own 8
reading and the class
session, rate the
overall quality of the
group’s work that is
summarized above +
justify the given
score:
(1-low to 10-high)