Inside dyson a distinctive company case study answers

Corporate Strategic Analysis Report.

Most importance: Assessments must be submitted via Turnitin, and the similarity must below 20%.

The module is assessed (100%) by an individual Strategic Report (maximum 3,000 words) involving an in-depth, strategic analysis of a large organisation. The subject of the report will be decided by the module convenor but students will be able to choose from a list of 6 varied examples.

Instructions for assessment

The Strategic Report should strictly NOT exceed 3,000 words and demonstrate clear report style with relevant Harvard references. It is to be a unified whole that answers three questions (see below) focused on the selected organisation. Formative work in weekly seminars will guide students through analytical techniques and processes required to complete the task.

For the selected organisation, assume you are an outside consultancy reporting to the Chief Executive. The Strategic Report should:-

1). Identify 3 key strategic issues facing the organisation with a clear explanation of why they are “strategic” (20%).

2). Analyse fully the resources and key capabilities of the organisation plus key factors that give the company its competitive advantage. (40%)

3). Assess the extent to which the organisation’s competitive strategy

addresses its strategic issues, and suggest improvements where they

might be justified. (30%)

A further 10% is available for clarity, structure, grammar, correct Harvard referencing and overall professional presentation showing clear report style.

Best answers will draw explicitly on strategic concepts and analysis from the module and apply them to the organisation. Clear referencing (Harvard system), professional presentation with appropriate diagrams/tables are required.

Again note the report should not exceed 3,000 words. Appendices are allowed outside this limit but NO MORE than 6 pages.

How will your work be assessed?

Your work will be assessed by a subject expert who will use the marking scheme indicated below. Feedback will be given in the Turnitin/Grademark system with script comments plus overall points. When you access your marked work it is important that you reflect on the feedback so that you can use it to improve future assignments.

In this Strategic Report, high marks come from using strategic concepts and analysis from the module clearly applied to the organisation. Harvard referencing, a professional report style plus appropriate diagrams/tables are also required. Outline marking expectations are as follows:-

Q1: (20%) After a short introduction, we expect 3 key Strategic Issues with explanations and knowledge of why they are “strategic”. The 3 environments (PESTLE, 5 Forces & internal) should be used as a guide.

Q2: (40%) We expect strong course knowledge, clear industry CSFs plus the organisation’s resources & unique capabilities well analysed. Also how unique capabilities link to advantage & CSFs, and their Porter generic strategy.

Q3: (30%) We expect an evaluation of how their strategy addresses their issues using the three SAFe tests – plus how it might be improved. A short overall conclusion completes the report.

PRESENTATION: (10%) We expect a professional report with clear report style (not an essay) e.g. frontsheet, contents, clear sections, tables & diagrams and relevant Harvard referencing. The word count should not be exceeded by more than 10%.

(In addition to marker feedback, a full marking rubric will be available within the Turnitin submission system for student consideration.)

Assignment submissions.

The Business School requires a digital version of all assignment submissions. These must be submitted via Turnitin on the module’s Moodle site. They must be submitted as a Word file (not a pdf) and must not include scanned in text or text boxes. They must be submitted by 2pm on the given date. For further general details on coursework preparation refer to the online information via StudentZone

If you cannot submit a piece of work and wish to submit Mitigating Circumstances, the University Mitigating Circumstances Policy can be found on the University website

How will we support you with your assessment?

There will be weekly references to the assessment task in seminars and weekly activities in those seminars will be helpful in creating “scaffolding” for eventual submission. An assessment worksheet will be provided in Wk4 to assist the development of ideas.

The formative mini-casework in seminars will be of direct help in the application of relevant strategic tools. There will be regular Q&A sessions linked to the assessment report and in the final weeks of teaching there will be an opportunity to review and reflect upon work from previous cohorts.

The 6 cases (with initial links) from which you should choose are:-

Case study

Online links for more information

Johnson et al.

1

H&M in fast fashion: continued susses?

http://www2.hm.com/en_gb/home.html

Ed. 10: p.575 Ed. 11: p.576

2

Megabrew: creating an undisputed global brewing champion?

http://www.ab-inbev.com/investors/combination-with-sabmiller.html

Ed. 11: p.639

Ed. 10: p.647 (SAB Miller)

3

All change at Teva

http://www.tevapharm.com/about/profile/

Ed. 10: p.634

Ed. 11: p.690

4

Mondelez International: Are you going to stick around Irene?

http://www.mondelezinternational.com/investors

http://ir.mondelezinternational.com/sec.cfm?DocType=Annual&Year=&FormatFilter=

Ed. 10: p.686

Ed. 11: p.695

5

CRH plc: leveraging corporate strategy for value creation and global leadership

http://www.crh.com/

Ed. 11: p.705

Ed. 10: p.639

6

Flight Centre Limited: competing to provide the lowest air fares

https://www.flightcentre.co.uk/about-us/our-story

http://www.fctgl.com/our-brands/

http://www.fctgl.com/investors/annual-reports/

Ed. 11: p.636

Ed. 10: p.676

How will your work be assessed?

Your work will be assessed by a subject expert who will use the marking rubric provided on Moodle. When you access your marked work it is important that you reflect on the feedback so that you can use it to improve future assignments.

Referencing

You MUST use the Harvard System.

Tips for how to do make a good start:-

Tip 1: Read the Assessment Brief to understand clearly what is required.

Tip 2: Use web links to initially research each of the 6 organisations.

Tip 3: Choose your organisation with the assessment task in mind.

Tip 4: Assemble material from a wide range of research sources.

Tip 5: Focus on knowledge & application of relevant module concepts.

Tip 6: Participate in module seminars & draw lessons for your Report.

Corporate Strategy.

Week 6: Lecture

Analysing Strategic

Capability.

Resource-Based View:

- introduce what the RBV is.

Foundations of Strategic Capability:

- understand resources & capabilities.

VRIN Analysis & Advantage:

- see how VRIN tests capabilities.

Learning Outcomes.

2

Just as the external business environment is important (opportunities and threats), managers need to understand the the internal firm environment: the unique strengths and weaknesses of their firm relative to their competitors.

Internal Business Environment.

doing things

When Google entered the search engine market in 1998, there were many established rivals, e.g. AltaVista, HotBot, Lycos, Yahoo! etc.

But Google did not care much about competition. From the start, Google was happy to be different, i.e. different strategies & products.

From 2003, Google diversified into various industries such as Android phones, self-driving car project, Google glass etc.

Watch this video on Google history:

https://www.youtube.com/watch?v=n9eo8b3hEns

diFFerently

Strategic fit is about developing strategy by identifying opportunities in the business environment and adapting resources and competences so as to take advantage of these.

Strategic stretch is about identifying and leveraging the resources and competencies of the organization to yield new opportunities or to provide competitive advantage.

The contrast between strategic fit and strategic stretch exemplifies different views on how firms should compete in global markets.

Strategic Fit versus Strategic Stretch.

Resource-Based View of Strategy.

The RBV says that advantage and superior performance stem from the distinctiveness of what firms can do.

Positioning View: the business opportunity should be the starting point for developing successful strategies.

Resource-Based View: unique firm resources should be the starting point for developing successful strategies.

The RBV suggests that firms differ in their bundles of resources and what they can do – their capabilities.

6

Firms have resources and capabilities.

Resources are all assets, capabilities, organizational processes, firm attributes, information, knowledge, patents, real estate etc. controlled by a firm.

Capabilities are complex bundles of skills and collective learning, exercised through organizational processes, that ensure superior coordination of functional activities.

The Components of Capability.

Competence as Tree Metaphor.

Resources versus Capabilities.

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Threshold & Distinctive Capabilities.

Threshold Capabilities are those needed to meet necessary requirements to compete in a given market & achieve parity with competitors – ‘qualifiers’.

Distinctive (Unique) Capabilities are those that critically underpin competitive advantage & that others cannot imitate or obtain – ‘winners’.

10

Threshold & Distinctive Capabilities.

(Note this for our seminar analysing the James DYSON case!)

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Identifying Resources & Capabilities.

Capabilities: different ways to identify:-

1). Kay (1993) - Architecture, Reputation, Innovation.

2). Functional Areas: e.g. Marketing, Distribution etc.

3). Value Chain: analyse through primary & secondary activities

How do we identify these for an organisation?

Resources:

1). Grant’s (1998) three categories of Tangible, Intangible & Human to analyse.

2). SWOT can identify resources too.

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Managers must understand the economic value of the different activities that a firm performs.

Value added is the difference between the cost of inputs and the market value of outputs; it is the value that a firm adds to its bought-in materials and services through its own production and marketing efforts within the firm.

The Concept of Value Added.

Example: Product value of South African grapes

Source: Frynas, J. G. and Mellahi, K. Global Strategic Management 3e (Oxford University Press, 2014)

Value Chain Analysis.

Source: Adapted with the permission of The Free Press, a Division of Simon & Schuster, Inc., from Competitive Advantage: Creating and Sustaining Superior Performance

by Michael E. Porter. Copyright © 1985, 1998 by Michael E. Porter. All rights reserved

Value chain analysis depicts the main activities inside the firm and aims to reveal the relative value added amongst the different parts of the firm’s operations.

Undertaking a value chain analysis helps the firm to understand its cost position and to identify its competitive strengths.

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Simplifed value chain for South African fresh fruit and vegetables

Core Competences.

Core competences (Hamel & Prahalad, 1990) are the linked set of skills, activities & resources that, together:

deliver customer value

differentiate from competitors

potentially, can be extended & developed as opportunities arise.

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Understanding Advantage

Competitive Advantage is:

“The ability to outperform rivals on significant CSFs, thus earning superior returns.” (Grant, 2013).

Porter (1985): “There are two basic types of competitive advantage: cost leadership and differentiation.”

Kay (1993): advantage is delivered by distinct capabilities & strategic assets.

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VRIN Analysis & Competitive Advantage.

4 criteria to assess capabilities as a basis of achieving sustainable competitive advantage are:

value,

rarity,

inimitability and

non-substitutability

19

VRIN Criteria for Testing Capabilities.

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V – Value of Strategic Capabilities.

Strategic capabilities are of value when they:

enhance opportunities & neutralise threats,

provide value to customers

provide potential competitive advantage at a cost that allows an organisation to realise acceptable levels of return.

The question of value: Do a firm’s resources and capabilities enable it to respond to environmental threats or opportunities?

21

R – Rarity.

The question of rarity: Do capabilities exist that no (or few) competitors possess?

Rare capabilities are those possessed uniquely by one organisation or by a few others only.

(e.g. a company may have patented products, have supremely talented people or a powerful brand.)

Rarity could be temporary.

(e.g.: patents expire, key individuals can leave or brands can be de-valued by adverse publicity)

22

I – Inimitability.

The question of inimitability: Is a resource or capability difficult for competitors to imitate?

Inimitable capabilities are those that competitors find difficult to imitate or obtain.

Advantage can be built on unique resources - e.g key individuals - but may not be sustainable (key people can leave!).

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N - Non-Substitutability.

The question of non-subsitutability: Is the risk of capability substitution low?

Competitive advantage may not be sustainable if there is a threat of substitution.

This can be product or service substitution from a different industry/market. E.g. postal services partly substituted by e-mail.

Competence substitution. For example, a skill substituted by expert systems or IT solutions

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Example: Business model of the clothing retailer Zara

Source: Frynas, J. G. and Mellahi, K. Global Strategic Management 3e (Oxford University Press, 2014)

Zara’s success in achieving extremely fast product cycles was supported by in-house textile manufacturing subsidiary and close relationships with sewing workshops in Spain

Session Summary.

Week 6 Seminar groups will examine Strategic Capability at James DYSON – the British vacuum cleaner maker.

We introduced & explained what the Resource-based View of Strategy is.

We examined Resources & Capabilities plus how to identify them.

We explained VRIN analysis of capabilities & links to advantage.

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Corporate Strategy.

Week 6: Seminar.

Resources, Capability & Advantage at DYSON.

Wk6 Seminar: Session Plan.

Today’s seminar uses ideas from Wk6 to analyse Strategic Capability at DYSON

Prepare by reviewing Wk6 notes plus Moodle (and your own researching) for DYSON case material.

Again there will be class group work. Results should be kept for your assessment revision.

Wk6 Seminar: Session Brief.

The Brief:- (choose one question)

1. What is Strategic Capability? Use these ideas to analyse the Threshold/Distinctive Resources & Capabilities at DYSON.

2. What are Strategic Resources? Use Grant’s 3 types to analyse DYSON’s resources. Which create most advantage?

3. What are Strategic Capabilities? Analyse DYSON’s Distinctive Capabilities & show where on the Value Chain these lie.

Form groups (5/6) to answer the brief. You have 40 mins to produce a flip chart for class sharing.