Case analysis in business policy and strategic management

SMU Strategic Management and Business Policy Case Analysis
Subject
Business Finance

School
Southern Methodist University

Question Description
plase analysis the case I put-Netflix’s Strategy in 2018.pdf

and finish some worksheet.Final Case Assignment Review MGMT 4489 Strategic Management Strategy Analysis Tools • External to the Firm – General Environment-PEST – Competitive Environment - 5 Forces • Internal to the Firm – Value Chain – Resource-Based View – Core Competencies The Components of a Company’s Macro-Environment 3–3 PESTEL Analysis uFocuses on principal components of strategic significance in the macroenvironment: ØPolitical factors ØEconomic conditions (local to worldwide) ØSociocultural forces ØTechnological factors ØEnvironmental factors (the natural environment) ØLegal/regulatory conditions The Five-Forces Model of Competition: A Key Analytical Tool 3–5 The Most Common Drivers of Industry Change (KIPs) • • • • • • • • • • • • The Changes in the long-term industry growth rate Increasing globalization Emerging new Internet capabilities and applications Changes in who buys the product and how they use it Technological change and manufacturing process innovation Product and marketing innovation Entry or exit of major firms Diffusion of technical know-how across firms and countries Changes in cost and efficiency Reductions in uncertainty and business risk Regulatory influences and government policy changes Changing societal concerns, attitudes, and lifestyles Example: Strategic Group Map of Selected Automobile Manufacturers 3-7 The Value Chain General administration Human resource management Technology development Procurement Inbound logistics Operations Outbound logistics Marketing and sales Adapted from Exhibit 3.1 The Value Chain: Primary and Support Activities Source: Adapted with permission of The Free Press, a division of Simon & Schuster, Inc., from Competitive Advantage: Creating and Sustaining Superior Performance by Michael E. Porter. Service Common Types of Industry Key Success Factors 3-9 Resource Based Analysis • Tangible Resources – Financial / Performance Analysis – Technological • Organizational Capabilities – Competencies / skills – Core Competencies Key Financial Ratios: How to Calculate Them and What They Mean 4-11 Key Financial Ratios: How to Calculate Them and What They Mean (con’t) 4-12 Core Competencies Analysis • Source of Differentiation • Identify > Cultivate > Exploit • Characteristics – Provide potential access to variety of markets – Make significant contribution to perceived customer benefits of end product – Difficult for competitors to emulate • V Valuable • R Rare • I hard to Imitate • N NonSubstitutable Criteria for Sustainable Competitive Advantage and Strategic Implications Valuable Rare (V) (R) Is a resource or capability… Difficult to NonImplications Imitate (I) Substitutable (N) for Competitiveness No No No No Competitive disadvantage Yes No No No Competitive parity Yes Yes No No Temporary competitive advantage Yes Yes Yes Yes Sustainable competitive advantage Exhibit 3.7 Criteria for Sustainable Competitive Advantage and Strategic Implications Source; Adapted from J. Barney, “Firm Resources a Sustained Competitive Advantage, ‘ Journal of Management 17 (1991), pp. 99-120. Examples: Core Competencies • Expertise in integrating multiple technologies to create families of new products • Know-how in cost efficient supply chain management • Speeding new/next-generation products to market • Better after-sale service capability • Skills in manufacturing a high quality product • Capability to fill customer orders accurately and swiftly The Five Generic Competitive Strategies Distinguishing Features of the Five Generic Competitive Strategies Three Approaches for Competing Internationally Entry Modes of International Expansion Wholly Owned Subsidiary Extent of Investment Risk High Joint Venture Strategic Alliance Franchising Licensing Exporting Low Low Degree of Ownership and Control Adapted from Exhibit 7.7 Entry Modes for International Expansion High Review of Strategic Management Final Case Assignment - Preview Study Tips • Review the document ‘Preparing an Effective Case Analysis’ in Brightspace • Do some outside research about the company and the streaming video content industry • Organize the case by larger elements Preparation Materials • June 17th Folder on Brightspace – Case study + videos – Worksheet Templates • Other Materials on Brightspace – Weekly class power point slides • Other Research – Streaming Video Industry – Netflix Assignment Breakdown • Short Answer Questions – Length of ¾ – 1 page per answer = 200-250 words – 7 questions in total – Answer question # 1 and any 4 others – All questions of equal value (6 marks each) • Total Value = 100 x 30% for Final Case Assignment Grade Answer Tips • Answer the question being asked – Not just the one you know – If asked for an opinion give one & back it up with application of the course concepts & analysis • Use real terms you have learned in this course • Provide some depth to your answer – Example –Five Forces has 5 forces that determine industry attractiveness – know them and how they contribute (know the relevant factors for each force) – Example - there are 5 types of primary activities and 4 secondary activities in the Value Chain – know them and how they may interact to create value • Remember to answer all parts of the question. QUESTIONS? Final PDF to printer CASE 14 Netflix’s Strategy in 2018: Does the Company Have Sufficient Competitive Strength to Fight Off Aggressive Rivals? Arthur A. Thompson The University of Alabama T hroughout 2017 and the first three months of 2018, Netflix was on a roll. Movie and TV show enthusiasts across the world were flocking to become Netflix subscribers in unprecedented numbers, and shareholders were exceptionally pleased with Netflix’s skyrocketing stock price.