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Questions and Answers
What market was attacked by Golden Wonder with a strategy aimed at children?
What was the outcome of Golden Wonder's strategy in the children's market?
Which company eventually took over as market leader after Golden Wonder?
What strategy did companies use when faced with an actual or potential attack?
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What was the outcome of the British motorcycle industry's strategy in the 1960s and 1970s?
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What was the rationale behind the British motorcycle industry's strategy in the 1960s and 1970s?
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What was the outcome for Norton and Triumph in the end?
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Which historical military strategy is mentioned in the text?
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Who is called the 'preeminent management thinker of our time'?
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What is the foundation for priorities, strategies, plans, and work assignments?
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What is the main purpose of a company's mission statement?
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What is one of the key components of a company's mission statement?
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What is the purpose of strategy analysis and choice?
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What provides the basis for generating and evaluating feasible alternative strategies?
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What is the goal of selecting a strategy?
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What type of steps do alternative strategies typically represent?
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What is the main purpose of a vision statement in an organization?
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What is the recommended length of a vision statement?
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What is the role of managers in developing a vision statement?
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What is the main difference between a vision statement and a mission statement?
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What is the main criticism of PepsiCo's vision statement?
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Who is often called 'the father of modern management'?
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What is the main criticism of Dell's vision statement?
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What is the main purpose of a mission statement?
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What is the main challenge that firms face in high-velocity markets?
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What is the primary objective of the hold strategy?
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When would industry leaders find it too costly to cater to a specific niche?
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What is the outcome of using a react-to-change strategy?
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What is the main goal of the harvest strategy?
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What is the divest or terminate strategy used for?
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What is the characteristic of a turbulent and high-velocity market?
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When is it advantageous for a firm to focus on a specific niche?
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What is a limitation of portfolio analysis?
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What is the ideal strategy for firms in high-velocity markets?
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What is the main objective of the investment strategy?
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What is the outcome of using an anticipate-change strategy?
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When is harvesting often used?
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What is the term for a business unit that generates a lot of cash?
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What is the characteristic of a firm that leads the changes in a high-velocity market?
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What is the main purpose of portfolio analysis?
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Study Notes
Market Strategies
- Imperial Tobacco's Golden Wonder attacked the children's market, which was seen as of secondary importance, and eventually became the market leader.
- Walker's later took over as market leader.
- A company may withdraw from vulnerable segments and geographical areas to concentrate its resources in areas where it is less vulnerable.
- This strategy was used by Russia to defend against Napoleon and Hitler, but was used less effectively by the British motorcycle industry in the 1960s and 1970s.
Vision and Mission Statements
- A clear vision statement should answer the question "What do we want to become?" and provide the foundation for developing a comprehensive mission statement.
- Examples of vision statements:
- Tyson Foods: to be the world's first choice for protein solutions while maximizing shareholder value.
- General Motors: to be the world leader in transportation products and related services.
- PepsiCo: to continually improve all aspects of the world in which we operate (but is considered too vague).
- Dell: to create a company culture where environmental excellence is second nature (but is considered too vague).
Mission Statement Components
- Customers: who are the firm's customers?
- Products or services: what are the firm's major products or services?
- Markets: geographically, where does the firm compete?
- Technology: is the firm technologically current?
- Concern for survival, growth, and profitability: is the firm committed to growth and financial soundness?
- Philosophy: what are the basic beliefs, values, aspirations, and ethical priorities of the firm?
- Self-concept: what is the firm's distinctive competence or major competitive advantage?
- Concern for public image: is the firm responsive to social, community, and environmental concerns?
- Concern for employees: are employees a valuable asset of the firm?
Strategy Analysis and Choice
- Strategy analysis and choice seek to determine alternative courses of action that could best enable the firm to achieve its mission and objectives.
- Alternative strategies will likely represent incremental steps that move the firm from its present position to a desired future position.
- Short-term earnings and profits may be forsaken in the expectation that long-term returns will be far greater.
Strategy Selection
- Hold: primary objective is to maintain the current share, typically used for cash cows to ensure they continue to generate maximum amounts of cash.
- Harvest: management tries to increase short-term cash flows as far as possible, even at the expense of the SBU's longer-term future, often used for cash cows that are weak or in a market with limited future life.
- Divest or terminate: essential objective is to rid the organization of SBUs that act as a drain on profits or to realize resources that can be used to greater effect elsewhere in the business, often used for question marks and dogs.
Portfolio Analysis
- BCG matrices have attractions, but do not represent the ultimate management panacea.
- Practical value of portfolio analysis is influenced by the quality of basic data inputs and the broader political and social environments within which decisions are made.
Strategies for Competing in Turbulent, High-Velocity Markets
- High-velocity change is becoming more common in industries such as telecommunications, medical, biotechnology, pharmaceuticals, computer hardware, software, and Internet-based industries.
- Firms can choose to react, anticipate, or lead the market in terms of their strategies.
- Reacting to changes in the industry is a defensive strategy, while anticipating changes is a more effective strategy.
- Leading the changes in high-velocity markets involves pioneering new and better technologies and products and setting industry standards.
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Description
This quiz is about the market strategies and competition in the snack food industry, particularly in the children's market.
