Assignment:
Question1. Case Scenario: B.B. Mangler
B.B. Mangler is a top U.S. business-to-business distributor of maintenance, repair, and service equipment, components, and supplies such as compressors, motors, signs, lighting and welding equipment, and hand and power tools. Customers include contractors, service and maintenance shops, manufacturers, hotels, government, and health care and educational facilities. Mangler's industry is typically referred to as MRO, which is an acronym for maintenance, repair, and supplies. Mangler states its strategy as having the "capacity to quickly offer an unmatched breadth of lowest total cost MRO solutions to business." Mangler's GoMRO sourcing center for indirect spot buys locates products through its unique database of 8,000 suppliers and 5 million products. Mangler also dominates the North American market in terms of its sheer local physical presence. It has 388 physical branches in the U.S. largest cities, including Puerto Rico (90% of sales), 184 in Canada, and five in Mexico. This physical presence also has garnered them a reputation for excellent, dependable service in their target markets, which in turn translates into a vast and loyal clientele.
Q1. Mangler's physical locations are best an example of:
- a core competency
- a capability
- an intangible resource
- a tangible resource
Q2. Mangler's reputation among its customers is an example of:
- a core competency
- a capability
- an intangible resource
- a tangible resource
Q3. The Internet threatens to displace physical locations as a basis for competitive advantage. If Mangler's vast network of branch offices were an integral part of its core competencies, what might the branches become if the basis for competitive advantage in the MRO industry moves to the Internet?
- a core rigidity
- a capability
- a valuable capability
- an internal strength
Question 2. Case Scenario: Abrahamson's Jewelers
Through its sole location in an affluent suburb of San Francisco, Abrahamson's Jewelers has established a strong niche market in the upscale jewelry store segment. Abrahamson's was founded in 1871 and is currently owned and operated by John Wickersham, who bought the firm from its namesake founders in 1985. Wickersham joined the firm as a trainee out of high school, completed his gemology training, and several years later took ownership with the financial help of his parents. That debt has long been paid off and business has thrived. When he first acquired the business, Abrahamson's offered a full range of jewelry and gift items from watches to wedding sets to silverware to clocks. This broad range of products was mirrored by a broad price range-$10,000 Rolex watches were sold next to $50 Seiko watches. While some jewelry was custom designed and manufactured, most of the products were "case ready," meaning they were sourced from large jewelry and silver manufacturers from around the world. Over the last 15 years, Wickersham has narrowed the company's product offering considerably to focus only on high-end watches like Rolex and Piaget, custom jewelry, and estate jewelry.Wickersham stresses that this is an appropriate focus for his business since each of the products lends itself to relationship selling, and price rarely comes into the discussion. Despite the narrower offering moreover, Abrahamson's floor space has doubled, and clients are intensely loyal to the good taste, design skills, and personal service level provided by Mr. Wickersham.
Q1. What generic business strategy best describes Abrahamson's?
- a focused differentiation strategy
- cost leadership strategy
- focused strategy
- diversified strategy
Q2. What is the strength of the buyer in the jewelry industry?
- strong
- moderately strong
- weak
- moderately weak
Q3. What would be considered an external threat to Abrahamson’s?
- the large floor space
- a strong economy
- a weak economy
- a shift in consumers' taste toward high-end jewelry
Question 3. Case Scenario: The Pet Food Industry
The pet food industry is comprised primarily of six market segments: dry dog food, dry cat food, moist dog food, moist cat food, canned dog food, and canned cat food. Five large firms dominate the market and each has some market share in all segments, and the leading share in at least one segment. The largest firm participates solely in the pet food industry, while the next four firms are actually subsidiaries of some of the world's largest food and consumer products companies. Top management of these larger firms have made public statements that suggest they each see themselves as future leaders of the pet food industry. All five have acquired comparable skills in terms of manufacturing and marketing. Two small firms also participate in the industry, but these players are relatively weak and compete in just two of the six segments; the pet food industry is the only industry in which they operate. Inputs to the industry are basic commodities and there is no real threat of substitute products except across segments and price points. The industry is growing slowly, barely keeping up with the rate of inflation. Barriers to entry are enormous when pet food companies can gain scale economies in production coupled with aggressive marketing-though even then these coordinated actions may only yield average industry profitability. Any firm can increase its market share only to the extent that another firm's share is decreased.
Q1. The pet food industry is best characterized as an example of:
- slow-cycle markets
- standard-cycle markets
- fast-cycle markets
- none of the above
Q2. The pet food industry provides an example of:
- market commonality
- resource similarity
- multimarket competition
- all of the above
Q3. Members of the pet food industry are likely to experience:
- no competition
- little competition
- moderate competition
- extensive competition
Question 4. Case Scenario: Walt Disney Company
Walt Disney Company is famed for its creativity, strong global brand, and uncanny ability to take service and experience businesses to a higher level. In the 1970s, the company realized nearly 90% of its revenues from its cartoons and the Disneyland theme park in Anaheim, CA. By the beginning of the 21st Century, Disney had not only opened up more parks and ramped up its output of animated films, it had also diversified into many businesses well beyond its traditional core of high-quality cartoon animation and theme parks. For instance, the Disney empire diversified vertically and horizontally into retail (The Disney Store, since licensed to The Children’s Place), cruise lines, theaters, motels, and the Disney Press. It also moved into new product offerings such as sports franchises, TV networks (ABC and ESPN) and stations, Miramax, Broadway shows (Beauty and the Beast), and vacation clubs. International growth included EuroDisney and Hong Kong Disney and new releases of TV shows, videos, and movies worldwide. Indeed, while many of Disney's businesses had some tie to Mickey Mouse, only about 28% of total revenues now came directly from its parks.
Q1. What level and type of diversification best characterized Disney in the 1970s?
- dominant business
- related constrained
- related linked
- unrelated
Q2. What level and type of diversification best characterized Disney at the beginning of the 21st Century?
- dominant business
- related constrained
- related linked
- unrelated
Q3. Assume that Disney can benefit from both operational and corporate relatedness. Which of the following corporate core competencies would provide Disney the greatest opportunity to create value across all or most of its many businesses?
- leading-edge animation and live-action film production skills
- ability to manage creativity and service excellence within financial constraints
- ability to generate and manage cash-flow surpluses efficiently
- strong general managers and general management skills
Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format.