Marketing, Corporate Structure and the Organizational Design Questions
The ISBN is 978-1-111-82587-4 and the name of the book is Strategic Management by Hitt, Ireland and Hoskisson. It was a study done from Arizona State University. Names of the authors are: Benjamin Archer, Jessica Dunphy, Steven Carter, Ioana Ludwick, Mitchel Nosack and Aatif Qadeer.
Question 1
Analyze the relationship among corporate structure, corporate governance and corporate strategy. What steps should have been taken to protect shareholders’ investment in the joint venture in September of 2008?
Question 2
Using the generic types of business level-strategies, what business Strategy is Dr. Pepper using?
5 points
Question 3
Explain the value proposition of a cooperative strategy. What was the value proposition of the proposed CIBC and BNY Mellon joint venture in 1996? What were the potential risks? What benefits were realized? And what expected benefits never materialized?
Question 4
Define business, corporate, and international – level strategy. Did Dr. Pepper increase or decrease its marketing efforts in the face of a weak economy? Criticize that decision.
Question 5
(a) Explain the strategic management process; b) Explain how firms analyze their value chain for the purpose of determining where they are able to create value when using their resources, capabilities and core competencies. Compare and contrast Dr. Pepper’s financial with its rivals? What does that say about their performance?
Question 6
Explain the strategic management process. How should the changing landscape of the financial sector in coming years affect the joint venture? Is there less incentive to keep the joint venture going? Formulate a strategy about what the next phase of the joint venture should be.
Question 7
Analyze the relationship among corporate structure, corporate governance and corporate strategy. How was the joint venture structured? How did this structure address the concerns the various stakeholders had?
Question 8
(a) Analyze the relationship among invention, innovation, and imitation; b) Define strategic entrepreneurship. What are entrepreneurial opportunities that existed in this case? How did strategic entrepreneur’s take advantage of these opportunities in this case?
Question 9
Explain merger and acquisition strategies and how they relate to strategic competitiveness. What mergers and acquisitions has Dr. Pepper made recently? How have these enhanced strategic effectiveness?
Question 10
Define business, corporate, and international – level strategy. What percentage of Dr. Pepper’s revenues are generated domestically? Should Dr. Pepper focus more effort on international expansion?
Question 11
Criticize effective and ineffective corporate strategies. What are the elements of Dr. Pepper’s current strategy? What is your assessment of this strategy given your analysis of Dr. Pepper’s current position above?
Question 12
a) Discuss the value of strategic leaders in managing the firm’s resources; and b) Analyze what makes strategic leaders effective): Financial joint ventures are fairly rare. Analyze the role that Thomas MacMillian played in stewarding this joint venture? What made his efforts effective?
Question 13
What corporate governance mechanism does the joint venture use?
Question 14
Define and describe the general environment and the industry environment and how competitive forces influence the firm. What is the external environment affecting Dr. Pepper?
Question 15
Criticize effective and ineffective corporate strategies. Dr. Pepper sells a large majority of its product to distributors who are owned (or affiliated) with its competitors? Is this a wise decision? Why or why not?
Question 16
What cooperative strategies could Dr. Pepper use to boost returns?
Question 17
Criticize effective and ineffective corporate strategies. How should joint ventures be assessed? Apply those criteria to this joint venture.
Question 18
What risks in forming a joint venture are present here? How were these risks mitigated?
Question 19
What are Dr. Pepper’s Core Competencies?
Question 20
Explain the value proposition of a cooperative strategy. Joint venture’s often fail. Thomas MacMillian addresses his reasons that this is the case. Do you agree or disagree with his assessment? Why or why not?
Business and Marketing
Institution
Date
Question 1 Corporate structure is the organizational design and it's through the structure that the strategy is administered. When changes occur in an organization, new administrative challenges may come up that requires a new structure to implement correctly. Corporate structure entails the roles and responsibilities and line of reporting. These roles directly influence the strategy implementation thus without proper structure there is no corporate strategy.
Corporate structure entails the people, process, procedures, position, culture, and technology. For an organization to meet its goals, the corporate structure must be integrated with strategy. Structure support strategy, change in strategy would require a change in structure to support the new strategy. The primary structure of the organization thus become the focal point on which the strategists positions the firm so as to execute a strategy to balance internal efficiency and effectiveness. (Grant, 1998). Corporate governance is the process, the rules and practice that governs the structure and strategy in a company. Corporate governance manages the interest of all the stakeholder in the organization and provides oversight on the structure and how it implements strategies.
Question 2
* Dr. Pepper focusses on opportunities in high growth and high margin categories; a focus is placed on driving growth in business in selected profitable and emerging categories.
* To increase presence in high margin channels and packages, increasing brand presence in convenience stores, vending machines and independent retail outlets
* Leverage on an integrated business model, using integrated brand ownership and distribution business model to unravel new opportunities for sales and net profits.
* Improved operating cost, restructure to cut administrative and sales expenses to improve efficiency.
* Building and enhancing leading brand.
Question 3.
Value preposition is the strategy a promise to deliver quality to customers and belief from customers that the quality will be delivered. In entails proper positioning by the organization to deliver value to its customers based on costs and benefits and also values of the organization, and the sustainability of the said program. To achieve this the company has to analyze the market in which the value is being created, understand the customer experience in regards to what the market need most, this can be done by gathering customer feedback and analyzing for results. It also means analyzing which products are being offered and the benefits the market will obtain from the products. It also means getting to understand the alternative options in products and services. And finally, the evidence to substantiate the claimed value proposition. Value preposition should thus consist of capability, cost, proof, impact, and should not be communicated to external audiences. (Barnes, Blake, & Pinder,2009)
The joint venture proposed to offer asset financing. They expected to deliver security-related administrative services to the clients. And they included global custody and security lending, cash management, global performance measurements and analytics, transition management, recapture of commission and foreign exchange. They were also to provide mutual funds, pension plan foreign investment.
Question 4
Business level strategy are integrated and coordinated set of commitments and actions a firm to acquire competitive advantage by exploiting core competencies in specific products or service market. Business level strategy answers the questions of who will be served, what need to be met, and how the senior management will satisfy those needs. It’s how the business intends to compete in the market. Corporate level strategy are actions taken by a firm to gain the competitive advantage by selecting and managing a group of different business competing in different product markets. It entails determining which business is worth more if managed by the company rather than by any other ownership. International strategy is a strategy through which a firm sells its products outside the local or domestic market. This strategy helps open new frontiers and new markets.
Dr. Pepper through proper and well-calculated positioning increased its marketing efforts which grew brand recognition and customer loyalty. Its specialization in one flavor that used less raw materials meant Dr. Pepper was able to match major competitors in marketing and advertising.
Question 5
Strategic management process is defining the organization strategy. Managers make choice of set strategy to determine how the said strategy help achieve organization goal and help it perform better. It involves four steps that are, scanning the environment for information, formulating the strategy, implementing the course of action developed in the strategy, and finally evaluating the strategy.
To determine the value chain and create value, firms carry out a SWOT analysis to determine their strength, weaknesses opportunity and threats, Dr. Pepper, for example, analyzed the market and noted that taking on the big players with a cola product would not create value taking into co side ration the resource concerning bottling and large scale marketing. Dr. Pepper control only 6% of the market share thus means the rivals have more financial muscle to outdo Dr. Pepper regarding marketing, thus Dr. Pepper responded by producing unusual flavor to position itself and avoid direct competition with competitors.
Question 6 Strategic management process is defining the organization strategy. Managers make choice of set strategy to determine how the said strategy help achieve organization goal and help it perform better. The changing financial sector provides investors with new avenues for funding and opportunities, corporations enter into joint ventures to secure partners to fund and co-invest in their strategic targets.( Peng, Wang, & Jiang,2008)
The next phase of joint venture should encompass a quality business plan and strategy. The plan must comprise a specific list of deliverables and specific objectives to be realized in the first one year after joining.
Question 7
The joint venture stuck to their original business plan, regarding corporate structure, Mellon brought in outstanding technology to complement the reputation CIBC had made. This made an immediate impact in the business model of the new venture. The joint venture also leveraged the strength of the parents company financial. For instance, Mellon brought in a $200 million worth of technology. CIBC, on the other hand, leverage their client banking relationship to win new business. The executive team is led by a team of the skillful and competent team that maintains a strong relationship with shareholders and the board.
Question 8
An invention is to do something or be the first person or company to do something for the first time. Imitation, on the other hand, is when an individual or company notices the work of another person or company decide to copy them with the intention of achieving the same result. Innovation encompasses both invention and imitation, the innovator observes and imitates an idea then develop upon it to bring up something different.
While CIBC was already leading in the market, Mellon was leading in technology, and the opportunity was there regarding technological advancement and new market acquisition. CIBC joined ventures with Mellon to exploit such opportunities.
Question 9
The merger is the integration of two firms to operate in a relative co-equal basis. While the acquisition is when a firm buys a 100% controlling stake and then making the firm a subsidiary within its portfolio. Dr. Pepper merged with Cadbury to make it the third biggest player in the soft drink industry. The merger put Dr. Pepper in proper position in the market. This has maximized growth opportunities for Dr. Pepper and spurred greater international growth. It also gives Dr. Pepper proper distribution channel around the world.
Question 10 Dr. Pepper controls 16% of the domestic market. While it would be prudent to explore the international market and create new opportunities, it is rather advisable that Dr. Pepper concentrates its efforts in the domestic market. Dr. Pepper shoul...
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