Crown cork & seal in 1989 case analysis answers

Industry Analysis Application with Harvard Business School case

Details on your five page extended case write–up on CC&S applying the 5 Forces Analysis (unlimited appendix).

Hi Class – Over the next two weeks, our Session 7 and Session 8 will consist of an Industry Analysis Application with a Harvard Business School case (the CC&S case). The CC&S case is an incredibly rich case and an excellent one to develop your industry analysis skills! Therefore, I’ve allowed the case write up to be five pages in length (an extension from the more typical 3-4 pages), and with unlimited appendix. I’d like to talk you through the approach. First, start with the appendix. Use the appendix to recreate Figure 3.3 (from p.66 in Grant), as well as Figure 3.5 (from p.81 in Grant). Go ahead and try your best to fill out all of the boxes as it applies to our case at hand. Let’s take it together now: So what industry are we in? Who is in the IR box? What is the concentration in this industry? What is the diversity of competitors? Are there excess capacity issues and exit barriers? Work towards these issues and then once completed, take a step back and ask yourself – so is IR low, med or high? That is to say, do you think the level of industry rivalry is low, medium or high? Repeat this process as you go on to the other boxes. So let’s take it together again with the supplier box: So who is in the supplier box? What is the size and concentration of the suppliers relative to the IR’s? Follow each issue through, then take a step back and ask yourself – What is the relationship between the suppliers and the IR’s? Who has the power? Do the suppliers have more power over the IR, or do the IR’s have more power over the suppliers? Keep moving through the other boxes. Remember the goal – you are trying to determine if the industry structure allows for supra-normal profitability. A very unattractive industry is this: IR – high, Supplier power – high, Buyer Power – high, Barriers to Entry – low, and Substitutes – high. This is the recipe for a nightmare industry structure because it makes it very competitive (and very hard to make any money!). On the flip, a very attractive industry is this: IR – low, Supplier power – low, Buyer Power – low, Barriers to Entry – high, and Substitutes – low. This is the recipe for a DREAM industry structure because it is structural attractive, making it very easy to make money!

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Once you have your Figure 3.3 done – then go on to Figure 3.5. Again, fill out all the boxes and go through the metal gymnastics to identify the industry key success factors. After you have done your very best at using these two tools, think hard about how your tools can help you to answer the case questions. After a lot of thought, only then go to your write-up. Use your five pages (double-spaced, Times new Roman, 12-point font, one inch margins) to answer the questions, using the tools to showcase and support your analysis. Take a position. Back up your statements. Advise the protagonist. Your ability to analyze industries is a skill you will use for the rest of your career. Dig in and yes, it is challenging work (and many times confusing and frustrating because it is hard work!). However, industry analysis provides you with a strategic mindset on which you can identify problems and issues that others who have not been well trained in strategy will miss. How great is that? Really great. So jump in and take a stab at it - you can do this! All my best and look forward to reading your CC&S write ups, Dr. Lampert