Case 1 The Honda Effect

Published Date: 02 Nov 2017

1The British motorcycle industry turned down and the Japanese Honda effect extended beyond. Therefore these were highly reflected on by both the Harvard Business School- Boston Consulting Report (BCG) and the Insider’s Account recorded by Richard Pascale.

2Below I have compared both the reports, noting down the "key differences between these two accounts of the Honda’s entry into the US motorcycle market:"

Strategy implemented: BCG report notes an intentional approach on hybrid strategy implemented by Honda Motor Company by providing different smaller lightweight motorcycles and sold for under $250. Whereas, Insider’s report considers the hybrid strategy as a more positive approach with emergent attempt of forcing out 50cc Superclubs into the market.

Competitive analysis: a short analysis is given out by the BCG report on the Honda motorcycle’s main competitors with a complete note on their average sales. Insider’s report concerns on Honda’s own struggle disregarding the specified competitors.

Complexity faced: The DCG report gives out constricted details on the success that was attained by the Honda by disregarding the challenges/ difficulties faced, where the Insider’s revealed both the upgrade and downfall of the Honda machines.

Target market: BCG report gives out constricted memo on the target market based on the general public, while the Insider’s account specifies the target market that are the second and third Japanese generation for achieving the market share of 10% in United States.

50cc Super cub Introduction: BCG report doesn’t explain as to why the lightweight 50cc’s Japanese product was given high consideration than other machines that they produced, while Insider’s notes out an emergent introduction of the superclubs as the bigger motorcycles were declined.

Therefore these were the key difference that I have mentioned above from the two different reports.

2.0 Case 2

3Core values are the fundamental values that guide an organization’s strategy. Laura Ashley being the most improbable business success stories and different challenges that it faced, the core values can be characterized on the strategy it adopted for the success.

4Below are the core value’s characteristics:

Loyal customer base: This is a more common core value for any organizations having dependable customer base where loyalty and trust is built among the customers. Laura Ashley aspires to maintain this value on origin of quality goods and services provided to customers.

Good Market product and Quality: Products with good quality were provided. Market is entirely lacking of good quality products such as household goods, Laura Ashley aspires filling the gaps in market, thus gaining business activity it had almost crashed.

Building strong experience: The continuous crash was observed by Laura Ashley during hard times assembled strong experience base for the organization, thus persuading the entire managerial team from its bad experience faced and getting over with it by providing good quality and services in the market.

Customer awareness: Laura Ashley’s awareness was much of a fashion brand than the imagine it holds for the quality goods, focusing more on flowery patterns and looking up fashion for maintaining this awareness likely to be its core value.

Teamwork: Laura Ashley achieved back its activity with potency, hard work and unity, its whole managerial team proved together. Thus, a core value of working as a team and being the main concern in terms of good quality.

These core values are therefore characterized on how the organization aspires in distributing good repute products and working on its expansion. Therefore these were the core values for Laura Ashley that I have mentioned and characterized above.

3.0 Case 3

"Applying a Balanced Scorecard"

5Balanced Scorecard is a strategic development and management structure helped using for activities of business to the vision statement of an organization. It attempts translating the now and again blurred; virtuous hopes of vision/mission statement of the company into realism on the management of the business better at every level.

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6The businesses often find the Balanced Scorecard complicated to execute in practice, because;

Basic rules to be followed: If basic rules aren’t followed for implementing a BSC, then it leads to inefficient results .i.e. the senior business advisor, Mr. John McMahan explains that most companies haven’t followed the basic rules that make them effective and thus get a very little value out of the scorecards.

Great care required: When selecting measures, great care is required because BSC can in fact mislead if measures are wrongly selected.

Confusions and misunderstandings: This is another reason when implementing a balance scorecard. If the strategic objectives fit with each other and with the measurements, the scorecard is likely to create more confusions than clarity, citation by Mr. Kaplan and Mr. Norton.

Number of Measures: Harvard Professor Robert Kaplan and the Consultant David Norton. The two leaders in developing the BSC suggested that management should focus on just 20 or 30 measures. Thus, if measures are mislead than results are ineffective.

Expensive and time consuming: BSC needs time implementing. People need to ask themselves two questions "how do we get there?" and "what are the measures?" Charlotte Bhiladvala, head of business development explains, "you can’t hurry it-you must let people understand it." Thus, before implementing, people should take time understanding it.

Therefore the points mentioned above show organizations often finding BSC difficult to implement in practice.

4.0 Case 4

"Fiat: Rebirth of a Carmaker"

7The Fiat’s rebirth interprets all the hard work and decisions made by Mr. Sergio Marchionne, corporate troubleshooter appointed at Fiat in June 2004. Fiat was seen to be in difficulty during the time of appointment of Mr. Machionne.

1The SWOT analysis below for Fiat for the year 2004:

. SWOT ANALYSIS : FIAT (June 2004)

STRENGTHS

Well-known brands with good quality.

Car models with wide variety.

Experienced workforce.

Qualified lawyer and an accountant (Mr. Marchionne).

OPPORTUNIES

Introduction of new car model – Panda.

Growth of car- manufacturing market.

The SWOT analysis carried out above shows the position for Fiat. Mr. Marchionne a corporate troubleshooter came up with some adjustments and brought Fiat to success by bringing it to better level.

8The SWOT analysis for Fiat for the year 2008:

SWOT ANALYSIS : FIAT (2008)

STRENGTHS

Use of computers saving time (technology).

Stylish and fuel efficient cars.

Market leader in Brazilian market.

Use of power-train technology.

OPPORTUNIES

Terminal contract.

Joint venture with TATA and SALC.

Expected increase in sales due to production of diesel engines.

Expansions of market in Brazil.

Thus the SWOT analysis above gives the distinctions and the level of achievement in 4 years time that Fiat amended with hard work made by Mr. Marchionne.

5.0 Case 5

"The Profitability of UK retailers"

9The word Profitability is mostly used in illustrating any enduring methods in which a good or a service would produce further reimbursements than effects.

Comparing the British supermarkets with the European and US counterparts, I would agree that British supermarkets make more profits compared to their European and US counterparts.

10Below are the points mentioned that support my statement;

Short lead time: This is the time normally between the time of order and delivery. Short lead time is a convenient way of satisfying customers, i.e. providing the goods that were assured at the right time or even earlier than that so that the customers are convinced. The British companies have been way better when it comes to IT and Technology applied to logistics. The goods are delivered to the customers earlier than expected as it has a centralized distribution channel.

High demand (total revenue): Customers with high level of demand of well products in the market are likely to bring the most profit to the company. The own-label products in the Britain supermarkets had higher level of demand and penetration leading to low average cost of goods and high gross margin compared to rest of Europe and US counterparts.

Labour costs: The labour costs are lower that the company’s profits are likely to get affected according to the labour costs determined the cost per services or product offered by them. Therefore the social costs are low and the supermarket’s proportion of part-time labour is high than somewhere else.

The points mentioned above, proves that the British supermarkets are more profitable than the European and US counterparts.

6.0 Case 6

"The Novotel Value Chain"

11Some of the key elements in the Novotel value chain and each of these elements of the chain is important in itself for the services it delivers, and most of them interact with other elements. Competitive advantage is an advantage over rivals gained by offering consumers greater value that is by means of lower prices or by providing greater benefits and services that justify higher prices.

12The Competitive Advantage Model:

13The Novotel’s competitive advantages:

Management processes: an approach was introduced by the senior manager of Novotel for staffing in the hotel sector, whereby enlarging staffs as a team that are able on performing tasks and work as required in a flexible manner.

Staff training (HRM): Novotel provides finest staff training compared to its competitors. i.e. the center for all the staff training is the Accor Group (Novotel’s parent) and its located outside Paris and from there all the trainings are designed and delivered.

Location (infrastructure): Novotel is trying to be worldwide, by creating their own logo and making a symbol of the hotel so that they are recognized and more people can get attracted to them than their competitors.

Partnership programme (purchasing efficiency & delivery): Novotel is likely to be a better competitor within the market as it uses sole partnership programme with their preferred supplier worldwide, i.e. the television or any other supplier uses Novotel for their guests staying over or when they out for a holiday.

Good hospitality: Novotel’s customers are provided with an incredible hospitality services. The staffs greet and welcome their guests with warmth. The guests are welcomed in and lead to the reception where details are provided concerning on rooms and services and other necessary details provided with great care for its customer’s satisfaction.

Therefore these were the competitive advantages that Novotel provides its customers that are better than any of their competitors.

7.0 Case 7

"The Levi’s Personal Pair Proposal"

14Core competencies are the organizations major value, creating skills or resources determining its competitive weapons. From the case as per my understanding, Levi promises well in all aspects of the VRIO framework.

15Levi’s unique resources and core competencies (the VRIO Framework):

Value: Levi’s has always been valued as number one brand in the market. It has a history for brand loyalty and its highly recognizable brand name that holds the top position in many of its market, whereby this remains the number one internationally in its markets. Valued features were created that helped differentiating products in the eyes of consumers.

Rare: The resources should be rare enough that perfect competition has not set in. Levi’s has a strong brand image and has been marketed as "authentic" and "genuine," enjoying the support from its customers because wearing them allowed the wearer to make a statement.

Inimitable: The Levi’s jeans were preferred to be "made in US" compared to its competitors. It provides packages that are generous to its employees (retention of HR).

Organized: Manufacturing is the key for Levi’s and they managed having maximum value for resources.

Therefore these were Levi’s unique resources and the core competencies mentioned above by using the VRIO framework for Levi’s Personal Pair Proposal.

8.0 Case 8

"The Virgin Group"

16The term Value added refers to "extra" feature(s) of an item of interest that go beyond standard expectations providing something "more" while adding little or nothing to its cost. The Virgin group is a diversified business, involving a mixture of businesses. Virgin group as a corporate parent does add value to its business.

17The Virgin Group adds value to its business as being the corporate parent, and this is attained by the following points mentioned below;

Virgin’s Brand Name: The brand name "Virgin" was a strong and respected brand with the British public initiated by Sir Richard being other companies’ parent. Due to strong brand name there was a possibility on raising and making profits in the market instead of starting a business. Thus overcame barriers to entry.

Risks prevented in joint venture: Joint ventures were introduced by Sir Richard joining into decisions that helped in adding value to the company and thus has the benefit preventing its risk in the market place that is due to the products and services presented with a benefit of strong brand name.

Understandings based on institutionalized markets: The management team of the Virgin has done well classifying satisfaction in the market. I believe that it is the proficiency that joined with strategy contributing more for less helping the group plough all the way through satisfied business industries.

The management structure: The Virgin Group has a flat management structure helping in persuading innovation, giving out flexibility and endorsing values of joint ownership and dependability.

Innovation: The Virgin Group’s senior staff includes individuals having successful careers. The Group attains compatible partners in the ventures matching their aptitude to innovation and differentiation. These innovative thoughts led them in promoting unique services that shock-up the market.

Therefore the above are the points that helped to justify that The Virgin Group adds value to the business as a corporate parent.