Temple University Generic Strategies for Uber Follow the instructions on the document, finish generic strategy for uber. Use ppt notes as reference for str

Temple University Generic Strategies for Uber Follow the instructions on the document, finish generic strategy for uber. Use ppt notes as reference for strategic group Homework Part 1 for Week 4
Week 4 – Generic Strategies Homework – THIS HW IS FOR UBER not Apple
1. Use the 2×2 chart below and Label the x and y axis.
2. Consider the company UBER
3. Place the UBER and its five most important and/or closest competitors or competitor
types (such as subways) in its strategic group. We discussed strategic groups in Week
2.
4. Provide qualitative/quantitative evidence and reasoning to support your classification.
– Explain your choosing your X-axis and Y-axis labels.
Save your document as a PDF and post it on Canvas..
Explain why your chose the UBER competitors (or competitor types) that your chose.
Y-Axis Label
Explain your reasoning with supporting evidence for your positioning of Uber and the
competitors you identified:
X-Axis Label
W. Christian Buss, Ph.D.
BA4101 Teams
•
•
•
Find your team
Names are spelled as I could read them. They are correct on actual class roster.
Sit together with your team today and for remainder of semester
•
Team 1
•
Team 3
•
Team 5
•
Team 2
•
Team 4
•
Team 6
Global Business Policies
Skill 2 – Environment Analysis
Christian Buss
Adjunct Professor
Strategic Management Department
Week 2 – AGENDA
A. Week 1 Review (Poll Results: Yes, No)
B. A Strategic Management Primer
C. Fundamentals of SKILL 2 – Environmental
Analysis
D. How do We Link Environmental Analysis to
our Strategy?
E. Strategic Group Analysis
F. Transition to our next class
W. Christian Buss, Ph.D.
Last Time We Saw –
•
•
•
•
•
Lewis & Clark
Strategy is:
Map-making (Situation Analysis)
Route planning (Implementation plan)
Contingency management
Capability development
Overall:
– What do we do?
– What reasoning and information led to this
strategy?
– How do I know it will work?
– What are the benefits from the plan?
Last Time We Saw –
The Competitive Wedge:
Customer Budget Constraint
Willingness to pay
Starbucks
STRATEGY WEDGE OBJECTIVE:
Increase customer willingness to pay
and decrease company costs.
Willingness to pay
Costs
Costs
Competitors
Starbucks
Competitors
Slide adapted from

Last Time We Saw –
Cost of strategic management failures
Opportunities of
failure elimination
Cost of management
failure elimination
Domain of economical elimination
of management failure
Elimination of
management failures
Probability of
management failure
Strategic
analysis
Strategy
development
Implemen- Operatation
tional
planning
planning
Strategic
Strategy
implemen- control
tation
What Causes Strategic Failures?
Last Time We Saw –
The Strategic Manager’s Golden Questions
• What do we do?
• What led me to think this?
Reasoning? Evidence?
• How do I know it will
work?
– Company will/can do it.
– Environment will let us.
• Why should we bother?
Source: personal photo
From Last Time You Need To Know –
How is Case Analysis Done?
1. Environmental Analysis
– Now
–
Future
2. Organization Analysis
–
Now
–
Future
3. Draw Strategic Implications
–
Company-wide things to do
4. Plan Implementation
–
Explain how for each SI with FUNCTIONAL AREA
Recommendations
5. Forecast the Future
–
–
–
Financial Impact
Strategic Position
Summarize Benefits to the company
Give It a Try:
Terumo BCT: David Perez, CEO
Exercise: LIST the Strategic Implications in this
video.
TEAM
CONTEST
From the Video:
•
•
•
•
•
•
•
•
Expand blood-based technologies
Build motivated associates
Globalize
Innovate
Commit to patient, customer, quality
Build brand equity
Respond to price compression
Develop cell therapy equipment/products
Week 2 – AGENDA
A. Week 1 Review
B. A Strategic Management Primer
C. Fundamentals of SKILL 2 – Environmental
Analysis
D. How do We Link Environmental Analysis to
our Strategy?
E. Strategic Group Analysis
F. Transition to our next class
W. Christian Buss, Ph.D.
Source: HBR, Jan-Feb
2014.
A Strategic Management Primer
It’s raining
cold hard
facts in
here.
Cold Hard Fact#1 – If it doesn’t
jingle it doesn’t count
Finance Trumps
Marketing, HR
and IT
STRATEGIC
IMPLICATION:
DO financial
analysis
CHF#2 – You’ve got to feed the
bulldog.
Marketing
drives
revenue,
Operations
reduces
costs
IMPLICATION:
Cover Overhead
CHF#3 – Evolve or dissolve.
Strategy drives profit: Competition wants it.
IMPLICATION:
Use
Strategy
How are they going to take it? Their Strategy? Your
Strategy?
Source: techchunks.com
CHF#4 – Kill the baby gorillas
IMPLICATION
1. Watch/Beat
Competitive
Technology
(Know-How)
2. Remove costs
now
3. Fix Problems
Early
Who has a story?
Source: shutterstock.com
CHF#5 – Cash is king
Survive first,
prosper
second
IMPLICATION:
Track cash position
daily
CHF#6 – You snooze, you lose.
IMPLICATION:
Prioritize
actions and
take them
NOW
Source: wilcoxgallery.com
CHF#7 – Logic Beats Belief
IMPLICATION:
THINK, BELIEVE, ACT
Not
BELIEVE, ACT
Quick SPOCK Exercise:
Apple is launching
iPhone10. Managers are
worried it will cause users
over 40 to switch to Android
phones.
Think: Is this good or
bad for Apple? [Issues]
Believe: Prove it.
[Reasoning/Evidence]
Act: Recommend.
[Strategic Implications,
Functional Actions]
WHEN WE THINK:
• Big – do we
understand how
we connect and
interact with
other
organisations and
the external
environment?
AVOIDANCE PROBLEM:
TOO SCARY
WHEN WE THINK:
• Deep – how deeply are
we questioning our ways
of operating?
• Do we operate from our
interpretation of the
past, or our anticipation of
the future?
• Are our assumptions
today valid into the
future?
AVOIDANCE PROBLEM:
LAZY BRAIN
WHEN WE THINK:
• Long – how far
into the future
are we looking?
Do we understand
the shape of
alternative
futures for our
organisation?
AVOIDANCE PROBLEM:
TOO REMOTE
AND IT IS:
WE MUST
UNDERSTAND
THE FUTURE
AND ALSO…
• Belt and Road
Initiative
• What is it?
• Strategic
Implications?
Week 2 – AGENDA
A. Week 1 Review
B. A Strategic Management Primer
C. Fundamentals of SKILL 2 – Environmental
Analysis
D. How do We Link Environmental Analysis to
our Strategy?
E. Strategic Group Analysis
F. Transition to our next class
W. Christian Buss, Ph.D.
Creating Strategic Fit to Leverage Internal Strengths
Source: Rothermael, Strategic Management
STRATEGIC IMPLICATION:
Companies need to do Environmental Scanning
The monitoring,
evaluating, and
disseminating of
information from the
external and internal
environments to key
people within the
organization to avoid
strategic surprise and
ensure the long-term
health of the firm.
Source: Rothermael, Strategic Management
External Environment – 3 Analytical Templates:
Model 1: Macro/Societal environment (General Environment):
•
General forces that do not directly touch on the short-run activities but
often influence its long-run decisions.
Model 2: Industry/Competitive Environment (Porter’s 5 forces + 1):
•
The collective strength of these forces in the task environment
determines the ultimate profit potential in the industry. The
corporation must assess the strategic threat from each source – specific
and generic competitors.
Model 3: Industry analysis (Strategic Group Map)
•
An in-depth examination of key factors within a corporation’s
competitive environment.
Model 1: General Environment
• PEST forces (Also sometimes PESTEL):
– Political-legal forces
• Allocate power, provide laws and regulations
– Economic forces
• Regulate the exchange of materials, money, energy, and
information
– Social-cultural forces
• Regulate values, mores, and customs
– Technological forces
• Generate problem-solving inventions
Or GDPEST
Macro/Societal Environment: Important Variables
Environment
Threat (& why?)
Economic
Demographic
Political / Legal
Technological
Sociocultural
Global
This is the Department’s model and it works fine.
Opportunity (& why?)
This Week Homework Pt.1 Process Review:
GDPEST Analysis of the AAPL iPhone Industry
IN YOUR TEAMS:
• Using the GDPEST framework, describe and
justify TWO CRITICAL GDPEST ISSUES that
affect the iPhone.
• IDENTIFY the 1) most important opportunity
and 2) threat that you see for iPhone from this
analysis
• LIST and JUSTIFY your three most important
STRATEGIC IMPLICATIONS
Instructions:
• Make Observations by category
• Identify Opportunities and Threats from those
Observations
• Draw Three Strategic Implications
• List them on the handout
– You will hand one in per team
• The quality will affect your class participation score
Model 2 – Industry/Competitive Environment
Forces Driving Industry Competition
MODEL 2:
5 Forces + 1
Other
Stakeholders
Relative Power
Of Unions,
Governments,
etc.
Michael Porter’s
Forces Driving
Industry Competition
Our Homework Pt.1 Process Review:
GDPEST Analysis of the AAPL PC Industry
IN YOUR TEAMS IN CLASS:
• SPECIFY your TWO most important STRATEGIC
IMPLICATIONS from your Porter Analyses
• JUSTIFY THEIR IMPORTANCE
• ADD them to your list
Prioritize your list
Week 2 – AGENDA
A. Week 1 Review
B. A Strategic Management Primer
C. Fundamentals of SKILL 2 – Environmental
Analysis
D. How do We Link Environmental Analysis to
our Strategy?
E. Strategic Group Analysis
F. Transition to our next class
W. Christian Buss, Ph.D.
Tying It All Together:
Political and Legal
Environment
Supplier
power
Demographic
Environment
Social Environment
Technological
Environment
Potential
competitors
Rivalry
Substitutes
Buyer
power
Macro-Economic
Environment
List the strategic implications
you have drawn.
Issue Priority
Determine which environmental trends should be merely scanned (low
priority) and which should be monitored as strategic factors (high
priority)
Probable Impact on Corporation
High
High
Medium
Low
High
Priority
High
Priority
Medium
Priority
High
Priority
Medium
Priority
Low
Priority
Medium
Priority
Low
Priority
Low
Priority
Probability
Of
Medium
Occurrence
Low
TEAM: THIS MATRIX CAN BE ADAPTED TO STRATEGIC IMPLICATIONS
Which ISSUES are IMPORTANT?
Criteria to use:
•
•
•
•
Value: Will impact be BIG or LITTLE
Sign (Valence): NEGATIVE OR POSITIVE
Rate of CHANGE: Fast or Slow
Type of Change:
– Discontinuous: Change happens abruptly
– Exponential: The rate of increase also increases
– Linear: same increase per each unit of time
• Probability of Occurence: High or Low
Prioritize Your Strategic Implications
• ISSUES lead to your Strategic Implications
– SI’s importance is tied to the importance of the
issue(s) addressed
• PRIORITIZE Strategic Implications:
– Use the criteria above and rank the five SI’s in
priority order (3 from GDPEST, 2 from 5-Forces)
• Relabel the Issues Priorities matrix so that it is
relevant to your Strategic Implications
Summary of Implications from
Analyses
Name
General environment
Key (Most Important) Strategic Implications
Your homework focused here
Industry-level analysis
Internal analysis
Business-level strategies
Value-chain analysis
You will learn these over the next four weeks
Stakeholder analysis
Financial analysis
8/10 Cell SWOT
42
Week 2 – AGENDA
A. Week 1 Review
B. A Strategic Management Primer
C. Fundamentals of SKILL 2 – Environmental
Analysis
D. How do We Link Environmental Analysis to
our Strategy?
E. Strategic Group Analysis
F. Transition to our next class
W. Christian Buss, Ph.D.
Who are our competitors?
Model 3: Strategic Group Analysis
• Industry
A group of firms producing a similar product or
service, such as soft drinks or financial services.
• Strategic Groups
– A set of business units or firms that pursue similar
strategies with similar resources.
Remember
The Competitive Wedge:
Customer Budget Constraint
Willingness to pay
Starbucks
STRATEGY WEDGE OBJECTIVE:
Increase customer willingness to pay
and decrease company costs.
Willingness to pay
Costs
Costs
Competitors
Starbucks
Competitors
Slide adapted from

All of which led Porter to identify:
Generic Strategic Options
Lower Cost
Competitive
Advantage
Differentiation
Porter’s Generic Strategies Model
Which leads to:
Strategic Groups in U.S. Restaurant Industry (2010)
Cost/Price
Fine Dining:
Mountain Jacks
HourTime
Fast-Food:
American
Mexican
Chinese
Italian
Casual Dining:
Applebees
Olive Garden
Red Lobster
What does it look like
today?
Prestige
Cost/Price
Today:
Strategic Groups in U.S. Restaurant
Industry (2016)
Fast-Casual Grew:
Fast-Food:
American
Mexican
Chinese
Italian
Panera’s
Chipotle
Brewhouse
Buffalo Wild
WIngs
Casual Dining:
Applebees
Olive Garden
Red Lobster
Fine Dining:
Mountain Jacks
HourTime
Prestige
Exercise – Industry Analysis Group Map
Define the dimensions you will use to describe the Cell Phone industry
Place competitors in the Cell Phone industry on the matrix
Draw a circle around companies that are grouped together
Develop an appropriate name for each strategic group
Dimension 2
1.
2.
3.
4.
Dimension 1
You will complete this for
HW next week.
Week 2 – AGENDA
A. Week 1 Review
B. A Strategic Management Primer
C. Fundamentals of SKILL 2 – Environmental
Analysis
D. How do We Link Environmental Analysis to
our Strategy?
E. Strategic Group Analysis
F. Transition to our next class
W. Christian Buss, Ph.D.
Remember:
The Competitive Wedge:
Customer Budget Constraint
Willingness to pay
Starbucks
STRATEGY WEDGE OBJECTIVE:
Increase customer willingness to pay
and decrease company costs.
Willingness to pay
Costs
Costs
Competitors
Starbucks
Competitors
Slide adapted from

Next Week the Resource-Based View (RBV):
The Value Proposition Canvas (VPC Model)
STRATEGIC RESOURCES
Source: Osterwalder and Pigneur,
Business Model Generation
Gain Creators and Pain Relievers lead us to:
The Resource-Based View (RBV)
Model
Driving
Superior
Strategic
Performance
Source: managementmania.com
Starbucks:
WK3 – HOMEWORK
1. Consider the Uber situation:
– Using your knowledge of the individual
transportation market
– Complete your strategic group analysis for that
market
– See the instructions on Canvas
WK3 HW (con.)– RBV Analysis
2. Using the iPhone Division of AAPL
– USE CASE INFORMATION
– Complete table on the “Resource-Based View” Internal
Analysis on next slide
– Internal analysis is company-specific analysis not
environmental analysis.
– You look at the company itself to find unique
attributes that provide on or more of the VRIO
(Valuable, Rare, Costly to Imitate, OrganizationSupported) attributes.
– Prepare your list from least significant to most
significant of strategic/competitive importance
The Resource Based View
Internal Analysis
Organized
for Value
Costly to
Imitate
Rare
Valuable
Resource/ Capability
Name: __________________________________
Class Time: ____________
Competitive
Consequence
This is Homework Part 2
Next Few Sessions …
• Session 3 – SKILL 3 – Company Analysis
– Learning Focus: Internal Company Analysis
– Homework:
1. Complete Strategic Map for Uber and
2. the Internal Resource-Based View (VRIO) analysis on AAPL
iPhone, and
– We will work on analysis tools for internal company analysis
• Session 4 – SKILL 4 – Define the Strategy
– IN-CLASS TEST ON FINANCIAL PERFORMANCE
You may bring and use an original, hand-written 4×6 card/sheet of
paper to the exam.
– See the PREP GUIDE on Canvas under the
Assignments Link
• Session 5 – SKILL 5 – Track Strategic Outcomes
– HOMEWORK: Case solution outline for the Apple Case
60

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