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Chapter: 3 -Problem: 1 >> British-based SuperGroup, owner of Superdry and its carefully banded product lines, is taking actions to deal with recent performance problems. These problems manifested themselves in various ways, including the need for the firm to issue three profit warnings in one six-month period and a 34 percent decline in the price of its stock in 2014 compared to 2013. Founded in 1985, the firm is recognize
Answer Preview: Influences from the External Environment: Superdry's ability to compete can be influenced by several factors in the external environment over the next several years. Some potential influences include: …

, Chapter: 9 -Problem: 1 >> The complexity associated with most cooperative strategies increases the difficulty of successfully using them. One cause of this complexity is the fact that often, firms collaborating on certain projects are simultaneously competing with each other as well. As explained earlier, this reality describes the relationship between Cisco and IBM as well as those existing with airline companies that hav
Answer Preview: What are some of the major complexities encountered in developing cooperative strategies such as strategic alliances and joint ventures? Here are some of the major complexities encountered in developi…

, Chapter: 4 -Problem: 1 >> What is a business-level strategy?
Answer Preview: A business-level strategy refers to a plan or approach that a company adopts to gain a competitive advantage and achieve its goals within a specific m…

, Chapter: 7 -Problem: 1 >> Founded in France in 1833, Lafarge became a successful global industrial company specializing in three product areas—cement, construction aggregates, and concrete. The other party in a “merger of equals,” which required well over a year to design and bring to the conclusion the firms intended, is Holcim, a materials and aggregates company that was founded in Switzerland in 1912. Holcim’s global am
Answer Preview: 1. The primary drivers for the Lafarge-Holcim merger strategy could be a combination of several reasons commonly associated with acquisitions: Synergy: Combining the resources, capabilities, and marke…

, Chapter: 1 -Problem: 1 >> The choice of a CEO signals potential actions to stakeholders about a firm’s potential actions. Howard Schultz served as Starbucks CEO for many years; the firm achieved multiple successes during his service. As of April 2017, Schulz became executive chairman of Starbucks’s board while Kevin Johnson, a former CEO of Juniper Networks and a 16 year veteran of Microsoft, assumed the CEO position for t
Answer Preview: Starbucks seeks to establish a competitive advantage in the following areas: Branding: Starbucks has built a strong brand image as a provider of high-quality coffee and a welcoming environment. This h…

, Chapter: 6 -Problem: 1 >> The Walt Disney Company has a diversified set of businesses in movie-making, television show production, media distribution (e.g., ABC and ESPN), interactive and theme parks (e.g., Disneyland, Disney World, Disneyland Paris, and Shanghai Disneyland), and retail and consumer product sales. It is the second largest mass media producer after Comcast, which owns NBC and Universal Studios. While other
Answer Preview: Disney is pursuing a related diversification strategy. This means that the various businesses within the company are related in some way, sharing commonalities that allow them to benefit from each oth…

, Chapter: 13 -Problem: 1 >> The lack of innovation and entrepreneurial focus at American Express (AmEx) may be because of hubris, inertia, and a lack of capability. The firm's performance in 2014 was not, by any means, what stakeholders expect. Partly in response to its poor financial performance, the firm announced plans to reduce its workforce by up to 4,000 employees. The loss of two of its major partnerships, with Costco
Answer Preview: A firm the size and scope of American Express (AmEx) might face several challenges that could prevent continuous innovation: a. Organizational Complexity: Larger firms often have more complex organiza…

, Chapter: 9 -Problem: 1 >> What is the definition of cooperative strategy, and why is this strategy important to firms competing in the current competitive landscape?
Answer Preview: Cooperative Strategy Definition: A cooperative strategy is a business approach in which two or more firms work together to achieve mutually beneficial goals while retaining their independent identitie…

, Chapter: 4 -Problem: 1 >> Business-level strategy, this chapter’s focus, details actions a firm takes to compete successfully in a particular industry or industry segment by using its resources, capabilities, and core competencies to create a competitive advantage. Hain Celestial Group uses a differentiation strategy to compete against its rivals. As explained in this chapter, the differentiation strategy is one through wh
Answer Preview: Competitive Dimensions of Differentiation Strategy: Hain Celestial focuses on several competitive dimensions while implementing its differentiation strategy: Product Quality: The company emphasizes pr…

, Chapter: 6 -Problem: 1 >> What is corporate-level strategy and why is it important?
Answer Preview: Corporate-level strategy, also known as corporate strategy, refers to the comprehensive plan and approach that a company's top management develops to guide its overall direction and portfolio of busin…

, Chapter: 10 -Problem: 1 >> Governance in Japan, Germany, and China has been changing as “western” governance systems have increasingly been adopted. Traditionally, boards of directors in these nations have largely been composed of insider manager directors. In 2015, Japan adopted a new governance code that strongly emphasized the importance of firms to elect many more independent outside directors. Activist shareholders and
Answer Preview: Many countries are adopting "western" governance systems that are more shareholder-friendly for several reasons: Globalization and international competition have led to a convergence of business pract…

, Chapter: 13 -Problem: 1 >> The lack of innovation and entrepreneurial focus at American Express (AmEx) may be because of hubris, inertia, and a lack of capability. The firm’s performance in 2014 was not, by any means, what stakeholders expect. Partly in response to its poor financial performance, the firm announced plans to reduce its workforce by up to 4,000 employees. The loss of two of its major partnerships, with Costco
Answer Preview: Several factors can prevent a firm the size and scope of American Express (AmEx) from being able to innovate continuously: a. Organizational Culture: Large and established firms often have rigid and h…

, Chapter: 4 -Problem: 5 >> How can firms use each of the business-level strategies to position themselves favorably relative to the five forces of competition?
Answer Preview: Business-level strategies can be used to position firms favorably relative to the five forces of competition, as proposed by Michael Porter's Five Forces framework. Each business-level strategy addres…

, Chapter: 12 -Problem: 1 >> Steve Jobs was Apple’s co-founder and iconic CEO. A number of observers feel that much of Apple’s phenomenal success, especially after 2000, is a product of his “genius” and leadership. Because of this and a leadership style that varies significantly from his predecessor’s, some have questioned Tim Cook’s ability to succeed Jobs as Apple’s CEO. Yet, in 2014, several years after assuming the CEO po
Answer Preview: 1 Complexity of a CEO's Job: The role of a CEO is complex for several reasons. Tim Cook's succession as Apple's CEO after Steve Jobs highlights some of these complexities: a. Leadership Transition: Su…

, Chapter: 11 -Problem: 1 >> Launched in 1946 in Japan, Sony gained a reputation for producing innovative products that were sold throughout the world. In fact, the firm’s success was instrumental to Japan’s development as a powerful exporter during the 1960s, 1970s, and 1980s. Sony was sometimes “first to market” with an innovative product, while sometimes being able to rapidly enhance a product’s capabilities by innovating.
Answer Preview: Sony's Strongest Parenting or Corporate Capabilities: Sony has a rich history of innovation and a strong reputation for producing innovative products. This innovation capability can be considered one …

, Chapter: 5 -Problem: 1 >> Aldi started as a small, family-owned grocery store located in Essen, Germany, in 1913. Two sons, Karl and Theo, took over the store from their mother in 1946; soon after doing so, they began expanding the business. They emphasized low costs from the very beginning, allowing them to offer their products to customers at low prices relative to competitors. Over time, Aldi expanded to other European
Answer Preview: Creating Competitive Rivalry: Aldi creates competitive rivalry in the retail grocers' industry through several strategic actions: Low-Cost Strategy: A…

, Chapter: 8 -Problem: 1 >> The Fédération Internationale de Football Association (FIFA) was founded in Paris in 1904 and was initially comprised of only European nations. By World War II, FIFA had added a few South American members. Newly independent states in Africa, Asia, and the Caribbean joined later. However, it continued to be governed “as though it was an exclusive European club”—until 1974 when João Havelange, a Bra
Answer Preview: Political Risk in FIFA Scandal: The FIFA scandal represents a form of political risk for companies operating in foreign countries due to the association of corruption, bribery, and unethical practices …

, Chapter: 4 -Problem: 3 >> What is a business model and how do business models differ from business-level strategies?
Answer Preview: A business model is a conceptual framework that outlines how a company creates, delivers, and captures value. It describes the way a business operates…

, Chapter: 2 -Problem: 1 >> Amazon’s sales in 2014 were $88.99 billion, an increase of 19.4 percent over 2013. In fact, its sales in 2014 were a whopping 160 percent more than its sales in 2010, only four years prior. Amazon has been able to achieve remarkable gains in sales by providing high quality, rapid, and relatively inexpensive (relative to competitors) service. Amazon has taken on such formidable competitors as Walma
Answer Preview: 1. It is possible for a firm to beat Amazon in the marketplace, but it would be a difficult task. Amazon has a number of advantages that would make it …

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