Strategic Management And Leadership

Please use Hua Wei as the company.

Attached assignment brief and below is the expansion.

Attached a sample assignment (follow very closely, especially how the Value Chain/ VRIN was done) on Air Asia.

 1. A brief (maximum 100 words) introduction to the company 

WORD COUNT WILL NOT BE TAKEN INTO CONSIDERATION.

-Nature of business

-Market segments served

 2. Company data which can be used to evaluate its success concluding with your thoughts about whether or not the company can be described as “successful”. 

300 WORDS. talk about the “HOW?”  Present with data, e.g. financial performance or employee satisfaction rating.

-An academic definition of success

-How to measure the success of the company (use Balanced Scorecard)

3. An outline of 6 to10 business reasons behind the success stated in a simple, straightforward way with a brief (4/5 sentences) explanation of each reason. Avoid strategy “jargon”; no analysis is required – this is a test of your broad business knowledge and understanding.  

300 WORDS. talk about the “WHY?”

-What are the critical success factors?

Please give at least 8-9 reasons, 2 to 3 sentences for each reason.

 4. A detailed analysis of the company’s strategic capabilities starting with a Value Chain and followed by a VRIN evaluation. Your interpretation of the analysis must clearly show how the company has been able to build competitive advantage.  

800-1000 WORDS. Most important part of this assignment.

*REFER TO SAMPLE ATTACHED*

-Value chain*

-Core competencies

-Analyse internal capabilities using VRIN framework

 5. An evaluation of the contribution of leadership to the company’s success, basing this on appropriate theory. A wide range of topics will be acceptable including: o Leadership (e.g. styles, attributes) o Management theories o Organisational culture o Decision-making 

MAX 800 WORDS. Use The Blake Managerial Grid.

Talk about the leader, not company. E.g. Apple = Steve Jobs. So, Hua Wei =  Ren Zhengfei

6. A detailed analysis and interpretation based on one further topic area from the following list: o Business (competitive) strategy consistent with strategic capabilities o International strategy (based on the framework in Exploring Strategy) o Innovation strategy o Collaboration (alliances, joint ventures, mergers and acquisitions) 

-Growth strategy

-International strategy

-Competitive Strategy

-Collaborative strategy

Critic and not describe how good they are. Do not describe what the company have done or is doing.

 7. An explanation of any external and/or internal factors that might make it difficult for the company to be successful in the future and suggestions (based upon your prior analysis) as to how the company can best deal with these. 

500 WORDS. PEST ANALYSIS?

Analyse the sustainability of the company based on environmental trends.

*your prediction of the company’s success in 10 years. no recommendation needed.

DO NOT USE SWOT ANALYSIS IN ASSIGNMENT.

DO NOT USE ANSOFF MODEL IN ASSIGNMENT.

Discuss if Huawei used backward/forward/horizontal/vertical integration? Wh

Assessment Brief – Level Six Undergraduate Business and Management modules

SM0374 Assignment Brief 2016-17 v1 (Rubric unchanged from 2014-15 v3) Page 1 of 6

 

Module Code: SM0374 – Standard Assessment Brief for 2016-17

Module Title: Strategic Management and Leadership

Distributed on: Hand in Date: Check noticeboards

Further information about general assessment criteria, ARNA regulations, referencing and plagiarism can be found on the module site on the e-Learning Portal (eLP). Students are advised to read and follow this information.

 

Task:

Choose one company from the list published on the eLP (see Assessment Folder). For this company, explain how successful you think it is and discuss the strategic reasons behind that success. Your explanation should include something about the contribution of leadership to the company. Go on to suggest strategies and/or actions for ensuring success in the future.

You should read the guidance on page 2 of this brief and the marking scheme at the end of this brief to understand how you should approach the assignment and how marks will be allocated.

Further guidance, including examples of marker feedback (shown in Lecture L08) and Revision Audio- Visual Presentations will appear on the eLP.

 

Notes:

a. Word limit = 3,600 words. See page 3 of this brief for an explanation.

b. Tables with sentences (rather than data) WILL be included in the word count

c. No appendices are permitted.

d. The assignment contributes 100% of the module mark.

 

Format for submission:

 The assignment should be written in Arial, 11pt, left-justified, 1½ spacing.

 DO NOT put Your Name, or any Tutor’s Name anywhere on your assignment.

 Every page should be numbered (in header or footer) and show your student ID.

 ESSENTIAL – You must leave at least 5cm of ‘white space’ at the end of each section. This is the space for your marker to write feedback comments on the preceding section. Please note that we may not use all of the 5cm – it depends what type of feedback we think is needed for each answer.

 All academic and other sources must be cited and included in a reference list

 We require you to use the Barney (1991) VRIN framework. The VRIN Summary Table is usually shown in journals and textbooks with ticks and crosses. We require you to use the letter “Y” for “Yes” and the letter “N” for “No” and the “?” symbol for “Uncertain or Maybe”.

 

 

 

Assessment Brief – Level Six Undergraduate Business and Management modules

SM0374 Assignment Brief 2016-17 v1 (Rubric unchanged from 2014-15 v3) Page 2 of 6

Guidance

We want you to tell us how you think the company has been able to compete successfully and justify your answer with analysis based on topic areas taught as part of this module. “Success” could be evaluated in terms of measures such as growth, profitability, market share and so on. But how has the company achieved this position which may have taken several years?

To tackle the question you need to carry out a full strategic analysis of the company and the business environment. But we only want to read the really important elements of that analysis and the conclusions you draw. You have to judge what is most important and present this to us in a clear, academically rigorous manner. You must present conclusions (your interpretation of the analysis) for each section below.

Your assignment should contain the following sections (5cm spacing between each) numbered exactly as follows. Mark allocations are shown in the marking scheme at the end of this brief.

1. A brief (maximum 100 words) introduction to the company

2. Company data which can be used to evaluate its success concluding with your thoughts about whether or not the company can be described as “successful”.

3. An outline of 6 to10 business reasons behind the success stated in a simple, straightforward way with a brief (4/5 sentences) explanation of each reason. Avoid strategy “jargon”; no analysis is required – this is a test of your broad business knowledge and understanding.

4. A detailed analysis of the company’s strategic capabilities starting with a Value Chain and followed by a VRIN evaluation. Your interpretation of the analysis must clearly show how the company has been able to build competitive advantage.

5. An evaluation of the contribution of leadership to the company’s success, basing this on appropriate theory. A wide range of topics will be acceptable including:

o Leadership (e.g. styles, attributes)

o Management theories

o Organisational culture

o Decision-making

6. A detailed analysis and interpretation based on one further topic area from the following list:

o Business (competitive) strategy consistent with strategic capabilities

o International strategy (based on the framework in Exploring Strategy)

o Innovation strategy

o Collaboration (alliances, joint ventures, mergers and acquisitions)

7. An explanation of any external and/or internal factors that might make it difficult for the company to be successful in the future and suggestions (based upon your prior analysis) as to how the company can best deal with these.

 ALL sections should cite sources of research data and theories/concepts on which your analysis is based. The only exception to this is the suggestions you make in Section 7; these should be YOUR original ideas and therefore citations are not expected.

 All cited sources should be listed in APA format in the References section at the end of your assignment

 Cutting and pasting material directly from sources without citation is plagiarism

 Cutting and pasting material directly from sources with citation is poor scholarship

 Short extracts from cited sources are permissible – use double quotation marks and citation including page number

 Although citing others, the majority of your assignment should use your own words.

 

 

 

Assessment Brief – Level Six Undergraduate Business and Management modules

SM0374 Assignment Brief 2016-17 v1 (Rubric unchanged from 2014-15 v3) Page 3 of 6

Final Submission of Assignment:

Newcastle City Campus

 No print copy will be required for SM0374.

 This module requires only one submission to the eLP Assignment Submission Folder before the Module Submission Deadline. This will be an electronic copy of the assignment in PDF format which should be uploaded to a particular folder depending upon your programme of study (see next item).

 We require students from Accountancy Programmes to use Folder A and Business Programme Students to use Folder B (see eLP for full instructions).

 You will not receive a TurnItIn Similarity Report* for a Final Submission.

 Students with Approved Extensions will find that new folders will be available after the normal deadline has expired.

 Students can submit their part-finished assignments to the TurnItIn Draft Folder before submitting to their Final Folder. They will receive a TurnItIn Similarity Report*. See the eLP for full instructions.

* Please note that TurnItIn Similarity Reports issued to students from the Draft Folder only compares your assignment to previously submitted or published work; whereas the Final TurnItIn Similarity Report (sent to staff only) will also compare your work to that of your fellow students.

CV Partner Institutions (in Hong Kong and Singapore) Follow your institution’s regulations regarding print copy (or electronic) assignment submission. Word Limits and Penalties for Assignments

If the assignment is within +10% of the stated word limit no penalty will apply. The word count is to be declared on the front page of your assignment and the assignment cover sheet. The word count does not include:

 Title and Contents page

 Reference list

 Appropriate tables, figures and illustrations (but see note (b) on p1)

 Glossary

 Bibliography

 Cited Quotations Please note, in text citations [e.g. (Smith, 2011)] and direct secondary quotations [e.g. “dib-dab nonsense analysis” (Smith, 2011 p.123)] are INCLUDED in the word count. If this word count is falsified, students are reminded that under ARNA page 30 Section 3.4 this will be regarded as academic misconduct. If the word limit of the full assignment exceeds the +10% limit, 10% of the mark provisionally awarded to the assignment will be deducted. For example: if the assignment is worth 70 marks but is above the word limit by more than 10%, a penalty of 7 marks will be imposed, giving a final mark of 63. LATE SUBMISSIONS

Newcastle & London Under the prevailing ARNA regulations, students that submit up to 24 hours late (and do not have an approved extension to deadline) will be penalised by a deduction of 10 marks (10% of available marks). Special Late Folders will be open on the eLP for 24 hours after deadline (use one of these if you do not have an approved extension). CV Partner Institutions Please consult your local administrator concerning late submission.

 

 

Assessment Brief – Level Six Undergraduate Business and Management modules

SM0374 Assignment Brief 2016-17 v1 (Rubric unchanged from 2014-15 v3) Page 4 of 6

Mapping to Programme Goals and Objectives:

This assessment will contribute directly to the following Undergraduate programme goals and objectives: 1. Knowledgeable about the theory and practice of international business and management Objectives: Students will be able to:

x 1. Acquire knowledge of functional areas of business and management.

2. Acquire knowledge of specialist areas of business.

x 3. Apply their knowledge to business and management contexts.

x 4. Conduct contemporary research into business and management.

2. Skilful in the use of professional and managerial techniques and processes Objectives: Students will be able to:

1. Provide evidence of self reflection as a means of informing personal development planning.

2. Demonstrate effective interpersonal communication skills and the ability to work in a team.

x 3. Demonstrate critical thinking skills

x 4. Demonstrate problem solving skills.

3. Aware of ethical issues impacting on business and professional practice Objectives: Students will be able to:

1. Identify an ethical dilemma in a business situation

2. Suggest ethical solutions to this dilemma

4. Employable as graduates Objectives: Students will be able to:

1. In the context of securing graduate employment demonstrate the skills of self presentation.

Achievement of Goal 1 Objective 4 and Goal 2 Objective 3 are measured throughout the assignment. The other Goals and Objectives are measured primarily in certain sections – these are shown on the feedback sheet below.

 

 

Assessment Brief – Level Six Undergraduate Business and Management modules

SM0374 Assignment Brief 2016-17 v1 (Rubric unchanged from 2014-15 v3) Page 5 of 6

 

Student ID ………………… Programme ……….…………………………………… FT/PT Location ……………………………

Grade Excellent Very Good Good Adequate Inadequate Bad

S u

c c e s s fu

l?

A sophisticated but clear discussion of what is meant by “successful” and how this applies to the company, supported by a range of data types. 7-10

A discussion of how successful the company is consistent with at least two types of appropriate data. Recognises that “success” can be difficult to evaluate. 6

A statement of how successful the company is consistent with two types of appropriate data but very little discussion. 5

A statement of how successful the company is consistent with one type of relevant data 4

Very little relevant data, no attempt at evaluation of success 3

Almost no relevant data, no evaluation of success 0-2

B u

s in

e s s

R e a s o

n s

An excellent set of key reasons with good, clear explanations. Very good research and demonstration of business knowledge. Goal 1 Obj 1 exceeded 7-10

A very good set of reasons with good explanations. Good research and demonstration of business knowledge. Goal 1 Obj 1 exceeded 6

A good set of reasons, some less than key, but good explanations. Reasonable research and demonstration of business knowledge. Goal 1 Obj 1 exceeded 5

Acceptable set of reasons but either too few or too many to be considered a set of key reasons. Basic explanation, basic research, adequate business knowledge. Goal 1 Obj 1 met 4

Either rather limited or else a scattergun list with weak explanations. Research very limited – does not demonstrate adequate business knowledge. Goal 1 Obj 1 not met 3

No understanding of the reasons underpinning success. Very poor research. Fails to demonstrate any significant business knowledge. Goal 1 Obj 1 not met 0-2

A n

a ly

s is

a n

d

In te

rp re

ta ti

o n

o f

c a p

a b

il it

ie s

Excellent discussion supported by rigorous and detailed analysis Goal 1 Obj 3 exceeded 21-30

Very good discussion based on accurate analysis covering most of the relevant points Goal 1 Obj 3 exceeded 18-20

Good discussion based on analysis that is generally good but has gaps or small errors Goal 1 Obj 3 exceeded 15-17

Basic discussion based on analysis that is competent but no more. Goal 1 Obj 3 met 12-14

Poor quality, partial analysis that does not support any discussion. Goal 1 Obj 3 not met 9-11

No evidence the student understands the topic area. Analysis of very poor quality. Goal 1 Obj 3 not met 0-8

L e a d

e rs

h ip

 

Excellent evaluation supported by rigorous analysis based on relevant theory. The data has been collected from a wide range of sources. 11-15

Very good evaluation with careful analysis based on relevant theory with well- researched data 9-10

Good evaluation based on relevant theory with good data. 7.5-8.5

Basic evaluation based on relevant theory. Analysis competent but no more. 6-7

Inadequate evaluation – either the theory is not relevant or the analysis is of poor quality. 4.5-5.5

No evidence the student understands any relevant theory. No evaluation. 0-4

 

 

Assessment Brief – Level Six Undergraduate Business and Management modules

SM0374 Assignment Brief 2016-17 v1 (Rubric unchanged from 2014-15 v3) Page 6 of 6

Grade Excellent Very Good Good Adequate Inadequate Bad A

n a ly

s is

a n

d

In te

rp re

ta ti

o n

o

th e r

to p

ic

Excellent discussion supported by rigorous and detailed analysis 14-20

Very good discussion based on accurate analysis 12-13

Good discussion based on analysis that is generally good but has gaps or small errors 10-11

Basic discussion based on analysis that is competent but no more. 8-9

Either the topic area is not relevant or the analysis is of poor quality. 6-7

No evidence the student understands any relevant topic areas. Analysis of very poor quality. 0-5

F a c to

rs a

n d

S

u g

g e s ti

o n

s

More than two good suggestions with excellent rationales based on identified factors. Goal 2 Obj 4 exceeded 11-15

Two good suggestions appropriate to the company with very good rationales based on identified factors Goal 2 Obj 4 exceeded 9-10

One relevant suggestion with good rationale based on identified factors OR two relevant suggestions with brief rationales. Goal 2 Obj 4 exceeded 7.5-8.5

One relevant suggestion with a brief rationale based on identified factors. Goal 2 Obj 4 met 6-7

Suggestions lack relevance and a convincing rationale based on identified factors Goal 2 Obj 4 not met 4.5-5.5

No evidence the student understands much about the company at all, Goal 2 Obj 4 not met 0-4

 

Total 70 – 100 60 – 69 50 – 59 40 – 49 30 – 39 0 – 29

 

Other General Comments:

Explain why Mattel’s managers were able to slowly change decision making over time and what kinds of cognitive errors contributed.

Surprise is what business schools teach you to avoid. Mattel’s research .showed Barbie sales falling as girls sought a cooler doll. But Mattel misjudged how, and how fast, to move. Learn from Mattel’s mistakes in gathering— and acting o n – competitive intelligence.

BY KIM S. NASH AND MELDUVALL

S E C T I O N

 

 

MATTEL BASE CA. Headquarters: 333 Continental Blvd,, El Segundo, CA 90245 Phone:(310)252-2000 Business: Makes and markets toys, including Barbie, Hot Wheels and Fisher-Price products. Chief Executive Officer: Robert Eckert Financials in 2004: S5.1 biliion in sates; $573 million in profits; net profit margin of 11%, Challenge: To maintain Barbie’s place as the top-selling fashion doll in the world, and a cash cow for Mattel, amid an onslaught of doll challengers, BASELINE GOALS:

Generate 50% of sales outside the U,S,, up from 42% last year Cut overhead costs as a percentage of sales to between 17% and 18%, down from 20% last year. Increase operating margin as a percentage of sales to 20%, up from 14% last year. Continue to decrease reliance on Wal-Mart, Toys R Us and Target, which combined accounted for 46% of sales last year, down from 50% in 2002, in favor of smaller retaifers and online sales.

Badnews came with Botoxed lips and belly shirts^ln_J:he summejLaf.20i)L_loymak£rL M.GA EQtertaiDmentintmduced YasmioJade, Sasha andXIoe—the BxatzJbLe nevyJashlon d_oJis_canie in a rainbow_of skj[i_toaes,_with_po’ilin.g, streetrsmart. expressions. Afj:kaa-_American_Sas)_ a_wore.a_hip-_hQp_ knit cap and low-rise

38

No blonde hair, sugary smile or impossible figure, which for four decades had defined Mattel’s iconic Barbie doll. Girls who wanted attitude and ethnicity, not pert and pale, bought $20 million worth of Bratz dolls in the first six months they were out, and the doll line went on to win the People’s Choice Toy ofthe Year award from the Toy Industry Association.

MGA had hit a coveted demographic—girls age 6 to 12— dead-on.

And yet, Mattel was uncharacteristically sluggish in response. It would be a full 14 months before Mattel came out with a Barbie offshoot, the My Scene dolls, that featured the right mix of vivid makeup and edgy clothes that young girls now craved.

The gap was long enough for Bratz to get a platform- booted foot in the door and stay there. Unlike doll makers before it, MGA was able to seize, and keep, market share.

Woridwide sales of Bratz reached S700 million last vear —growing more than 45% over the previous 12 months, while Barbie has stagnated at the same S1.5 billion level since MGA introduced Bratz four years ago. Barbie’s share of the fashion doll market has shrunk from 75% in 2000 to roughly 6 Q % today, says Sean McGowan, a financial analyst at Harris Nesbitt Gerard in New York.

Today, new rivals—Janay and Friends from Integrity Toys, Girls on the Go from Tolly Tots, and the Princess line from Disney—are are all crowding into the doll aisle.

“It’s a business that’s more up for grabs than ever before,” says Nancy Zwiers, who led worldwide marketing for Barbie for five years, “Now that Bratz has made inroads, it’s become

apparent to other companies that they can, too,” Mattel had the means to see it ail coming. Yet it was still

caught off guard. The toymaker has a world class corporate intelligence

system that consists of teams of research scientists who manipulate internal and third-party data with statistical analysis and business intelligence software,

Pre-Bratz, they studied point of sale numbers from Wal- Mart and other key retailers that showed zigzagging sales for Barbie, The company also had “psychographic” data about how girls of different ages play, drawn from Mattel’s private focus groups and observations at its own Child Test Center. That data suggested, for instance, that older girls— age 8 to 12, known to marketers as “tweens”—were losing interest in traditional Barbie, attracted instead to pop stars in heavy makeup and trendy clothes.

Identifying threats eariy is the goal of a good business intelligence program. But intelligence is only part of the equation, says George Day, a marketing professor at tbe University of Pennsylvania’s Wharton School who has studied several industry giants that have missed cues from the marketplace and subsequently suffered. You need sys- tems—human and technological—to interpret data, and then you need the wherewithal to act on it.

And that is where Mattel stumbled, according to con- sultants, such as Day, and several former Mattel managers, including Bruce Stein, who was chief operating officer and president of Mattel Worldwide from 1997 to 1999. ‘Iwo fac- tors blunted Mattel’s reaction, they say: internal challenges that distracted management, and the company’s disinclina-

 

 

tion to change its key product. Mattel declined requests for interviews, citing busy executive schedules.

Mattel did take tentative steps in 1999 and 2000 to address twccns’ changing tastes with dolls such as Diva Starz, but the moves didn’t click. Diva Starz’ bright facial features and hipper clothing, for instance, stopped short ofthe new provocative styles being blasted on TV and in magazines.

Mattel, says Jim Silver, an advisor to the Toy Industry Association, a trade group, didn’t act swiftly and forcetijlly enough to insulate its cash cow. The company, he says, “thought [Bratz] would come and go,” just another challenger without endurance. In 1991, for example, Mattel heat I lasbro’s blonde, busty Miss America doll by introducing its own American Beauty Queen Barhie. Likewise, Tyco Toys’ Little Mermaid doll initially skyrocketed but eventually drowned under a wave of mermaid Barbies from Mattel.

Now, Mattel finds itself fully engaged in a no-holds- barred attempt to outmarket Bratz, incite new doll mer- chandising trends and keep Barbie on her throne. Mattel says it won’t let up.

It can’t. Last year. Barbie, a perennial top seller, accounted for

30% of Mattel’s S5.1 billion in sales and an estimated 40% of its $573 million profit. In the past 30 years, the Barbie product line has produced approximately $24 billion in sales.

When Barhie is at risk, Mattel is at risk- “This is what happens when you get blindsided,”

Day says. The Mattel-MGA battle holds lessons for any company

trying to create an effective market intelligence system. Any company can develop accurate research and sophisticated technology to manipulate it. Stein points out: “The key is in how data is interpreted and, secondly, management’s will- ingness to respond to it.”

FEMALE INTUITION Well before the Bratz came hip-hop- ping along, Mattel, and the toy industry in general, had spotted a phenomenon called “age compression,” The most recentgcnerations ot children are outgrowing traditional toys sooner. Not so long ago, girls up to age 12 played with Barbies. By 2000, tween girls were a generation weaned on Britney Spears gyrating on M TV in a schoolgirl unifortn and crowned her their own pop icon.

For growing-up-in-a-hurry tastes. Barbie had become a haby toy; Mattel understood that older girls were losing interest in its flagship doll —and that even little girls 6 and 7 years old were influenced hy their hig sisters.

But starting in 2000, Mattel was focusing on a set of business challenges that included a transition at the top. Former Kraft Foods chief executive Robert Eckert arrived as its new chief executive, replacing Jill Barad, who as CEO had pushed Barbie into new venues such as CD-ROMs, dig- ital cameras and even NASCAR with a car-racing Barhie doll.

The company also was wrestling with the Barad-led acquisition of educational software maker The Learning Co., a deal blamed for Mattel’s S431 million loss in 2000.

Figuring out how to regain profitability topped Eckert’s to-do list.

“Mattel was vulnerable,” says Ronald Goodstein, asso- ciate professor of marketing at Georgetown University in Washington D.C, and a consultant for Mattel in the mid-

Robert Eckert Chairman and Chief Executive officer

INSIDERS

Matthew Bousquette President Mattel Brands Bousquette is Barbie’s real- life Ken, ultimately responsi- ble for figuring out how to protect her against the Bratz attack, Bousquette has intro- duced a new line of My Scene Barbie American Idol dolls, signed tie-ins with teen star Lindsay Lohan, and cre- ated a new Barbie Live in Fairytopia stage show to regain Barbie’s glitz,

Thomas Debrowski Executive vice President, worldwide operations Debrowski IS responsible for reducing the time it takes to move a new Barbie doll, such as My Scene Lindsay Lohan, from the design stage to Wal- Mart’s shelves, Debrowski was a colleague of Eckert at Kraft Foods, where he worked for 20 years.

Bob Normile Senior Vice President and General counsel Normile is leading Mattel’s efforts to try to crush Bratz maker MGA Entertainment in the courts, in April, Mattel filed a suit against Carter Bryant, a former Mattel designer, argu- ing that he essentially stole the company’s intellectual property while still working at Mattel, Bryant’s lawyer denies that’s the case,

OUTSIDERS

“” ‘̂’nh Fckroth Chief Information Officer New Century Financial Corp. Eckroth, Mattel’s former CIO, was new CEO Eckert’s first hire, joining the company in August 2000 from GE Medical Systems, where he was CIO. Eckroth dumped

Eckert joined Matte! in May 2000 after a 23-year career at Kraft Foods, where he rose to the chief executive’s position. He was charged with trying to rescue the company from a disastrous decision to purchase The Learning Co, in May 1999 for $3,5 bii- lion, and to reinvigorate the all-important Barbie brand. Former executives say Mattel had the com- petitive intelligence to know girls were looking for a doll with more atti- tude than Barbie, but Eckert and Mattel failed to react quickly, Eckert is still struggling to rekindle Barbie’s glow,

many of the company’s cus- tom-built applications in favor of packaged software, such as business intelligence tools from Cognos and Hyperion Software, The underlying goal was to speed the company’s decision-making processes. He left the company in June,

Bruce stein Co-Founder The Hatchery Stein was second-in-com- mand to former Mattel chief executive Jill Barad, until he left the company In a manage- ment shakeup in March 1999. Stein says there was reluc- tance within the company to mess with the Barbie fran- chise, and that may have pre- vented Mattel from creating a Bratz-like product of its own.

Ivy Ross Executive vice President, Product Design and Development Gap Inc. Ross, Mattel’s senior vice president of worldwide girls design until January 2004, is credited with helping Mattel establish an innovative prod- uct development process— an idea lab across from Mattel’s El Segundo, Calif,, headquarters. The lab creat- ed ello, a construction set aimed at the Barbie crowd,

Patricia Lewis Adjunct Professor, Kogod Schooi of Business Amehcan university Lewis has experienced the Mattel marketing machine from both sides—as director of marketing for Barbie in the 1980s, and as head of market- ing for Tyco’s Little Mermaid dolls. She saw early signals that some girls wanted an edgier Barbie, but back then the yearning wasn’t so seri- ous. Barbie continued to rule.

 

 

1990s about best practices in product branding. And the best time for a rival to strike with a new product, he adds, is when a company is iooldng inward.

But former COO Stein says that even if Mattel executives

d mk lid

04. a

had focused on the intelligence that Barbie was vulnerable and sounded a red alert, the company’s instinct not to mess with the “hallowed ground” that was the highly profitable Barbie line would have muted the response.

Although Mattel was willing to add accessories and appendages—even a fish tail in 1992 to brush back Tyco’s Little Mermaid—remaking Barbie with heavy makeup and urban-chic outfits would have run up against years of policy not to break the moid. “The culture of protecting Barbie within Mattel is in their basic DNA,” Stein says.

Yet that reluctance to disturb Barbie—even with hard evidence of a market shift—coupled with the internal dis- tractions, left the product line, and by extension Mattel itself, exposed.

In any industry that experiences tectonic shifts, it’s rare to see companies react to the early warning signs, even though they’re generally visible, says Wharton professor Day, who has studied missteps at Mattel, Monsanto and other industry giants. Long-running success makes managers at large companies near-sighted, he says. Focused on a mainstay product, they tend to ignore fresh information that diverges from their accepted norm in three basic areas: marketplace trends, the interests of target consumers, and threats from competitors. For example:

• Monsanto, a leader in plant biotechnology, failed to recognize a shift in marketplace mind-set in the late 1990s. Genetically modified crops like canola and variations of corn and soy- beans were promoted as healthier than natural versions because of built-in benefits such as reduced saturated fat. Farmers liked them tor their biocngincered protection against pests. But when a British scientist said in 1998 that genetically modified potatoes lowered the immune system responses of rats, other medical authorities chimed in with concerns about altered crops —and there soon followed a firestorm of protests and European government edicts against so-called “Frankenfoods.” Investors panicked. Monsanto’s stock price lost 20% through 1999. The then- S9.1 billion Monsanto was pushed into a merger with Pharmacia Corp., largely for the value of its pharmaceutical products.

• Blockbuster, the ubiquitous S6 biliion movie-rentai ctiain, watched as Nctflix, an online movie-rental company, grabbed 2.6 million customers in six years by eliminating late fees and offering convenient service through the mail.

Cornered, Blockbuster in January decided to drop its late fees—worth at least $400 million in revenue. Still, Blockbuster said in financial documents that it had no choice other than “to eliminate the most prevalent cus-

tomer complaints … and combat our com- petitors’ use of this concept.”

• Microsoft, despite having a track record of spot- ting and eliminating up-and-coming competitors, such as WordPerfect and Novell, didn’t see Netscape Communications coming with its Web browser in 1994, It took Microsoft 10 months to release its own browser— and even then, it was built on a product licensed from another company. Microsoft eventually clobbered Netscape, but the upstart’s early, unexpected success forced

~— Microsoft to revamp its core products, incorpo- rating Internet features into every one of them.

The list goes on, but Mattel didn’t have to be on it.

BARBIE LETS DOWN HER GUARD Since its inception in 1945, Mattel has been collecting market intelligence in some form. While systems and procedures have been upgraded, refined and enhanced, the basics have remained the same.

Mattel’s market research department mixes and analyzes data that comes fi”om the company’s own financial and inven- tory systems, plus outside trend and demographic informa- tion from at least five market research firms, including ACNielsen; anecdotal research from focus groups; statistics trom large consumer surveys; studies of children’s play pat- terns; and sales figures from Wal-Mart and other giants.

Mattel also continuously collects aggregate sales at hun- dreds of smaller retailers from market researcher NPD Group, which gathers monthly sales figures on Mattel’s 107 product lines from store owners across the U.S. and Canada.

Mattel seeds its Oracle and IBM DB2 databases with data on units sold, models, prices and dates, and analyzes past and present sales patterns by brand, geography and other categories —all to help forecast the fiiturc.

Analysts at Mattel can run database queries to spot sales trends and conduct profit-and-loss studies by product. Marketing managers like to measure the effectiveness ofTV

commercials by looking at store-level sales data before

and after an ad campaign begins, says Jennifer

Caveza, a former marketing brand manager for Mattel’s Fisher-Price division.

The numbers also arc analyzed in light of observational data from outside researchers and Mattel’s own scientists, including “mall intercept” interviews with girls and anec- dotes about the competition collected from Mattei’s field sales agents, who chat up buyers at the big retail chains.

Employees up and down the Mattel hierarchy are expected to coiiect and discuss inteiligence, using e-mailed updates, text reports filed at private Web sites, and monthly meetings among brand marketers, market researchers, sales managers and product designers.

Even the part-timers Mattel hires in the busy fall season to drive trom store to store to set up merchandise and ensure

PROJECT PLANNER HOW TO CALCULATE THE COST OF A COMPETITIVE INTELUGENCE SYSTEM (SEE F O L b O U t i .

 

 

that stores are giving Mattel its negotiated shelf space file daily reports to headquarters on what they find, via a secured

Weh site. CKO Eckert himself visits toy stores to eyehall inventory levels of competing products.

Meanwhile, senior consumer research analysts with MBA degrees conduct focus groups and interviews with girls, and

then speak as the “voice of the consumer” in presentations to senior managers in the consumer research department.

Senior associates in the company’s corporate strategic plan- ning group —positions that require not just MBAs but Ivy

League MBAs —assess competitors to determine whether to try to beat them or buy them out. These senior associates, according to job descriptions at Mattel’s Web site, also track

market shifts in toy categories such as fashion dolls, baby dolls and ride-on vehicles to improve brand sales and profits,

and regularly prepare material for Eckert, chief financial officer Kevin Farr and senior vice presidents.

One source of valuable hands-on information is visits by

Mattel researchers to children’s homes (with parents’ OK, of course) to observe and understand play patterns.

For example, if researchers see Barbie dolls displayed on a shelf above a girl’s dresser, even if the girls like them, it’s an

indication they don’t play with them regularly. They may even be forgotten, says Zwiers, the former Barbie marketing exec-

utive, who founded Funosophy, a toy-brand consulting firm in Long Beach, Calif, after leaving Mattel in 1999.

It’s more encouraging to see dolls lying on a pillow on the bed, which indicates they are loved and held. Similarly,

dolls seen on the floor next to a box of doll clothes indicates active play Seeing what else is in the room also tells a story Mattel doesn’t want to fmd Barbie on the closet fioor and

Sasha and Yasmin Bratz on the pillow, “Having girls teli you in their own words what they have

on their bed and why, and what they have stuffed away in

c/^tMig£iiC£ O u t r^mi lival firms aren’t the only force that can take your company lart.

movements, societal pressures, economic shifts and technotogy breakthroughs can sneak up to derail even a longtime market dominator, according to George Day, a marketing profes- sor at the University of Pennsylvania’s Wharton School,

companies that have ruled their markets for years are espe- cially at risk for overlooking “peripheral” forces that change the familiar landscape, says Day, who co-wrote a forthcoming Haivard Business Review article, “Scanning the Periphery,”

For example, Anheuser-Busch, SABMiller Brewing and Molson Coors initially missed the growing popularity of microbrews. In 1984, beer drinkers sucked up small-batch beers from Samuel Adams in Boston, Pyramid Breweries in Seattle and dozens of others in between. The big brewers didn’t realize that 1980s narcissism was a societal trend that would touch their business: Beer drinkers in the all-about-me decade wanted a beverage as distinctive as they thought they were.

When the number of microbreweries jumped from fewer than 50 in 1980 to 764 by 1996, the mass producers had to respond. They bought stakes in small brewers or acquired them outright, Anheuser-Busch, for example, paid $18 million in 1994 for 25% of Redhook. Independent brewers continue to appear, with an esti- mated 1,400 in business today

Toyota and Honda, on the other hand, skillfully considered how U,S, environmental politics would touch them. The Japanese automakers picked up on consumers’ increasing interest in fuel-efficient hybrid cars, even before the Iraq war. Because they pushed ahead building their Toyota Prius and Honda Insight gas-electric cars, which get 60 miles per gallon, they were ready when car buyers en masse wanted hybrids. General Motors and Ford, meanwhile, continued making gas-gulping sport-utility vehicles, in May, Standard & Poor’s said sinking SUV sales helped convince it to downgrade the bonds of GM and Ford to “junk” status.

As Day explains, “scanning the periphery” for growing threats means actively looking for bad news—such as early backlash

against once-popular SUVs on Web sites such as idontcare- aboutair.com—and then bringing it back to managers who may not want to hear it.

One way to pick up on this intelligence is to designate an executive to “collect the paranoia,” he advises. That person must be senior enough to be able to see the impact of controversial information and appraise it properly At chipmaker Intel Corp,, it was Andy Grove, “It takes a particular kind of curious leadership and processes and systems to be able to make sense of streams of incoming data,” he says. In the 1980s, Grove heard and saw that Japanese chip companies were swarming into memory chips and decided to shift Intel into computer microprocessors, where it eventually ruled the market.

Day also suggests that companies mount scouting parties of two or three people from different departments to focus on one question. An example: “What’s the worst thing that could happen to our new product line this year?” Draw up a list, then go out and look for signs of those things happening. And then, after envisioning the worst, fantasize about the best.

For example, in the 1970s, Day says, scientists at AT&T’s Bell Labs pretended the phone system was wrecked and that they had to build a new one. What wild features and functions would they put into it? Voice mail and voice-activated commands, among many ideas, according to Day, Although the then-industry giant didn’t know how to add them into its phone system imme- diately, those concepts became ideal design points for future projects. Today, we take them for granted.

Another technique: Look at the same data in new ways. Rather than market share, a consumer products company might delve into “wallet share,” Mattel’s Barbie may still be the No, 1 fashion doti in terms of worldwide market share. But wallet share showed that girls are spending increasing amounts of money on music CDs, hip-hugging jeans and karaoke sets—indicating that Barbie’s traditional customers are no longer dreaming about princesses, but about becoming stars on Amehcan Idol. That intelligence could be exploited to develop new products like American Idol Barbie, which Mattel did this year. —K.S,N, AND M,D.

45

 

 

Mattel uses a wide range of business intelligence tools and services to understand and guide the Barbie franchise. APPLICATION

Financial management

PRODUCT SUPPLIER

Oracle Pinancials Oracle

Financial planning

Human resources

Hyperion

PeopleSoft Human Capital Management

PeopleSoft

Supply chain and demand management

Procurement

Manugistics Supply Chain and Demand Management

Ariba Procurement

Manugistics

Transportation management

Business intelligence

Market intelligence

Consumer spending research

Store saies data

Kewtll-Ship Enterprise

Impromptu and PoweiPlay, SPSS 13, SAS Assist and SAS insight

Retail Measurement, AdReievance, HomeScan

ConsumerTracker, Custom Analytics

InfoScan

Kewill Systems

Cognos, SPSS, SAS Institute

ACNielsen

Scarborough Research

Information Resources

Product strategy research

Pleasure cruises and exotic vacations take advantage of which consumer behavior trend?

Question 1 

  1. Trust represents a customer’s      belief in the efficacy and reliability of a brand.

True

False

2 points

Question 2 

  1. Pleasure cruises and exotic      vacations take advantage of which consumer behavior trend?

 

Health emphasis

 

Cocooning

 

Experience pursuits

 

Active, busy lifestyles

2 points

Question 3 

  1. Which method of developing a      marketing communications budget uses computer simulations to model the      relationship between advertising and marketing communications and sales,      profits, and other factors?

 

Payout planning

 

Objective and task

 

Quantitative models

 

Meet the competition

2 points

Question 4 

  1. Individuals perform only one role      in the buying center, but there can be more than one individual involved      in any particular role.

True

False

2 points

Question 5 

  1. The marketing leaders of the New      Orleans Saints football team developed an advertising campaign targeted at      teenagers. This is an example of the demographic segmentation variable of:

 

age.

 

gender.

 

ethnicity.

 

income.

2 points

Question 6 

  1. Coca-Cola runs the same      advertisement in all French-speaking countries. This is an example of:

 

standardization.

 

integration.

 

customization.

 

diversified IMC theme.

2 points

Question 7 

  1. Individuals within the buying      center who shape the purchasing decision by providing information or      criteria that should be used in evaluating alternatives are called      deciders.

True

False

2 points

Question 8 

  1. When Domino’s Pizza sought to      increase sales and return customers, one key tactic was to:

 

change the brand.

 

buy the largest competing pizza   chain.

 

raise prices.

 

enter new markets.

2 points

Question 9 

  1. The process of creating television      commercials, print ads, and retail coupons are examples of encoding.

True

False

2 points

Question 10 

  1. The competitive environment is now      more:

 

local.

 

global.

 

regionalized.

 

concentrated.

2 points

Question 11 

  1. In the communication process,      encoding is:

 

a purchase decision by a consumer.

 

a social media network.

 

a sales pitch recited by a   salesperson.

 

the database manager finding a   statistical oddity.

2 points

Question 12 

  1. Packaging and labeling products      are part of the brand’s digital marketing program.

True

False

2 points

Question 13 

  1. When the Edgewater Beach &      Golf Resort developed a marketing campaign aimed to attract business      customers, institutions, and organizations that needed a location to hold      2- to 4-day conferences, the type of segmentation approach being used was:

 

demographics.

 

customer value.

 

type of business.

 

product usage.

2 points

Question 14 

  1. Brand logos:

 

help with recall of advertisements   and brands.

 

are unrelated to image but are   related to positioning.

 

increase search time in product   purchase decisions.

 

usually are inexpensive to develop.

2 points

Question 15 

  1. PRIZM is a company that      specializes in which type of segmentation?

 

Geographic

 

Product differentiation

 

Psychographic

 

Geodemographic

2 points

Question 16 

  1. If a company’s marketing team      believes that offering a new product under the current brand name may      adversely affect the current brand, the best approach would be to introduce      the product as a:

 

co-brand.

 

brand extension.

 

flanker brand.

 

ingredient brand.

2 points

Question 17 

  1. An individual’s age and social      status largely determine the motivation to search for purchase      alternatives.

True

False

2 points

Question 18 

  1. Advertising researchers want to      understand reasons individuals select specific fashion trends. Which      approach would be the best consumer-oriented research method to use?

 

Product-specific research

 

Anthropological

 

Sociological

 

Psychological

2 points

Question 19 

  1. The higher the perceived benefit a      consumer receives from an external search for information; the less likely      he or she will be to spend time searching for information.

True

False

2 points

Question 20 

  1. Each of the following is an      example of a customer contact point except:

 

a sales clerk at a retail store.

 

a brand’s website.

 

a brand’s Instagram page.

 

a friend who recommends a brand.

2 points

Question 21 

  1. A restaurant that advertises      “the best food and best service in town” uses which form of      positioning?

 

Product attributes

 

Competitors

 

Use or application

 

Price-quality relationship

2 points

Question 22 

  1. When developing a communications      budget, the percentage of sales method is similar to the objective and      task approach.

True

False

2 points

Question 23 

  1. To establish a strong brand image,      a brand name must be prominently promoted in repetitious ads or it should      be associated with one of the product’s benefits.

True

False

2 points

Question 24 

  1. Adaptation in a global advertising      campaign means rewriting an advertisement to fit the nuances of a given      language and culture.

True

False

2 points

Question 25 

  1. Many people respond to stress and      hectic lifestyles through exciting adventures and personal pleasure      pursuits.

True

False

2 points

Question 26 

  1. What a firm’s employees believe      about a brand’s image is more important than what consumers think.

True

False

2 points

Question 27 

  1. The marketing director of the      Houston Astros baseball team has developed an advertising campaign      targeted at females. This is an example of the demographic segmentation      variable of:

 

gender.

 

age.

 

income.

 

ethnicity.

2 points

Question 28 

  1. Product positioning is the:

 

level of brand equity faced by a   company or brand.

 

perception consumers have of a   company or brand relative to other brands being offered by the company.

 

number and level of products offered   by a company.

 

perception consumers have of a   company or brand relative to competitors.

2 points

Question 29 

  1. When business travelers began to      view Holiday Inn as outdated with old decor, the management team remodeled      many properties and terminated contracts with proprietors that did not      meet the new standards. This is an example of:

 

reinforcing the current image.

 

developing a new image.

 

rejuvenating an image.

 

changing an image.

2 points

Question 30 

  1. Brand parity is the:

 

perception that there are no real   differences between major brands.

 

belief that all advertisers say   essentially the same thing.

 

idea that brands are distinct and   easy to identify.

 

feeling that most advertising is   false.

Three Double Spaces Essay

Prompt Essay

 

A local business leader is considering starting a business in your area and has hired you to conduct a market analysis and deliver a formal report of your findings. Consider a market segment with which you are familiar. Write a brief report to be delivered to your sponsor in which you describe the status of competition within this market and recommend a course of action for the start-up. Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.

 

 

High Score Example ( please look over it )

 

The food truck industry is a growing market, expected to generate approximately $2.7 billion by 2017 (Intuit, 2012). It is no wonder that food trucks are becoming more popular, not only for potential owners, but for customers as well. They are able to provide customers with unique food and experiences, which sets them apart from the traditional fast-food businesses. One of the most important aspects of a food truck business is the relationship built with customers. Employees have direct contact with customers, which can be a huge opportunity when developing relationships and repeat customers. The National Restaurant Association claims that food trucks generate approximately $650 million in revenue, which can appeal to entrepreneurs looking to expand (Intuit, 2012).

The best suggestion for an entrepreneur entering the food truck industry would be to follow a differentiation strategy. By doing so, the business will be able to “produce goods or services that customers perceive as being unique in ways that are important to them” (Ireland, et al., 2012, p. 104). For example, the quality of service and courtesy of your employees can play a role in your differentiation strategy. Since food truck employees have direct contact with customers, the owner should be selective and dedicated to finding the right employees that will believe in the same mission, vision, and values he or she sets.

One value is convenience, which is a major driver in the growth of a restaurant, therefore, the target market should be employees in downtown Erie. According to the Pennsylvania Department of Labor & Industry, six out of the ten top employers within Erie County are located directly in downtown Erie (Erie Regional). By focusing on downtown Erie, the business is able to market directly to employees within these six companies, who are looking for good food and convenience, especially during their lunch breaks. Currently, there are only two food trucks in Erie: Ernie’s and the Mercyhurst University Culinary Cab. Given the low number of food truck competitors within Erie, the business has market share potential.

In order to succeed within this market, an understanding of competitors in necessary. By understanding the core competencies of your competitors, you are able to create your own that are valuable and difficult to imitate (Ireland, Hoskisson, & Hitt, 2012). One of these valuable competencies, for a food truck to consider, is the type of food they will be providing. Ernie’s main focus is: hot dogs, Italian sausage, burgers, cheesesteaks and steak wraps. The Mercyhurst University Culinary Cab has a rotation menu that offers hot dogs, puller pork sandwiches, salad and tacos. It is suggested for your food truck to provide meals focusing on items that employees are able to eat during a lunch break. This will coincide with your competitors and offer a larger pool of potential customers due to the number of businesses within the area.

Based on the information found, your business can determine what type of food to offer, which might include differentiating or excluding certain items from their menu since it is already offered somewhere else. Categories of food to consider: gourmet sandwiches, fish tacos, sliders, barbeque sandwiches, and a unique salad. These types of food will be unique to your business and appeal to customers that are looking for an enjoyable and affordable lunch.

Considering the $33,049 median income for the City of Erie, the price of your products will need to be reasonable, especially compared to your competitors (US census). Based on our research, the price of your food can range between $1 and $10. This will allow you to stay in line with your competitors, as well as meet the needs of your target market. We do not suggest having prices above $10 for the following reasons: your competitors’ prices do not exceed $10, there are many restaurants within the downtown area that offer lunch deals below $10, and customers within the downtown Erie area are less likely to spend more than $10 on lunch.

As mentioned before, there are six major employers located in downtown Erie, which is why lunch time is the most opportune time to set-up your food truck downtown. The food offered should be easy to eat, considering most customers will be employees with a limited amount of time available for lunch. Ways to promote your business can be simple. The busiest portion of State Street is next to the parks, in the center of downtown. This will allow for an increased amount of foot traffic with people determining where they would like to eat. The food truck can also rotate the locations that they are parked, in order to broaden their market. Some suggestions are: in front of the county court house, close to Erie Insurance, and between both parks on State Street. One important factor to consider is whether or not the food truck will stay open during the winter months. This could be an opportunity for your business to gain more market share, however, you will not see as big of a profit compared to the spring and summer months. During the winter months, the Mercyhurst University Culinary Cab is not anywhere around downtown, they close their food truck once the cold weather arrives. Ernie’s is only open periodically during the winter months. This could be advantageous for your business since your two competitors are not a threat during this time.

Based on the research gathered, opening a food truck business can be valuable. The competitor market is low, market share dominance is possible, and the target market is perfect for this type of business. It is my opinion that a food truck business will be profitable in Erie, PA, if market plans are followed based on the above research.

 

 

References:

http://quickfacts.census.gov/qfd/states/42/4224000.html

http://www.eriepa.com/economic-development/regional-reports/major-employers/

http://www.restaurant.org/Pressroom/Press-Releases/Food-Trucks-Gaining-Momentum,-According-to-Nationa

http://network.intuit.com/wp-content/uploads/2012/12/Intuit-Food-Trucks-Report.pdf

http://www.dummies.com/how-to/content/the-market-analysis-section-of-your-food-trucks-bu.html