week 8

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School

University of Toronto *

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Course

RSM100

Subject

Business

Date

Feb 20, 2024

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pdf

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6

Uploaded by CountStarAntelope174

Entrepreneurial Challenges uncertainty Small Business vs Entrepreneurial Business Size Age Growth : small business owner (stay small) entrepreneur (grow rapidly as they age) What is the David Birch Model Mice: small, changes direction quickly, (small pizza shop) Gazelles : more agile Elephants : strong, cannot change direction easily (Petro Canada, TD) CASE STUDIES The Failure of Nordstorm Canada: background Multiple problems Revenue from tourists stopped during COVID Competition: established brand/department stores: The Bay Nordstrom Rack: ⅓ of sales, not doing well Losing $ from day 1, going on too long (2014-) Distraction to main business (US) Not differentiating themselves No good retail space Department store experience vs chanel, louis v, prada WHAT DID THEY DO WRONG: overestimated value of brand in Canada closest competitor : holt renfrew did not understand Canadian market well market is smaller overestimated demand for high end goods WEEK 3: Managing and Leading in Organizations What are the 4 Key Managerial Functions 1. Planning Setting performance
- Asses competitiveness: where are my competitors today - Setting objectives for the organization - Competitive differentiation - Turn customer strategies to customer blueprint A regular year: - You make the budget plan what are you going to do to get your objectives - Then goes to negotiation build the bran investment into customers - Now align with the customer move on to being very technical and explicit (graph) - Kick off the year coca cola starlight put up marketing programs - Then look at what actually goes on the shelf a lot of data and science goes where what goes on the top/bottom shelves group by brand or packaging with diff pricing look into it data - Profit: How is the performance with Coca Cola in the store - JBP Principles Profit needs to be greater than sales (profit margin getting smaller problem bc then walmart will stop bc its not making enough money invest into competitors) - Sales volume: Coke in walmart growing 4 and overall 5 why do you care as walmart because you are losing market shares (I lose customers to the last of the market they wanna grow walmart market share vs food basics and so on so you need to focus on that as well) - Growing Sobey vs walmart we don't collide we just try to grow the market as much as possible instead of trying to gain the customers - JBP important bc it helps convey to the customer that I really care about what they're trying to do and grow their business, use strategies together - You’re in for it long term and not at their expense (short term) Coca Cola business Planning process: - Look at the chart on the slide Customer priorities guide our CBP: - Where the cx are coming from and understand what they want - Walmart for ex they tell you exactly what they want to do in their quarterly meetings - You need to see if this aligns with you Learn how to plan based on the Blueprint design: Week 8: Strategy I Foundations of Strategic Analysis - How is the company developing its competitive advantage? - Competitive advantage : have something that is both valuable and rare, hard to duplicate. - Marrying internal capabilities + external environment - Internal - special knowledge or expertise
- External - tech, government, what's going on in the world outside of organization and how do I adjust the strategy - Obese LOL more appetite for diet supplements in usa than canada - More appetite for diet supplements - SWOT ANALYSIS - Looks at what's going on in and outside the organization - Internal: strengths of company, weaknesses of company - External: Competitors outside of company, opportunities - Growth Strategy - Concentration strategy: high concentration - Diversification strategies: diversify through related diversification (rogers buying fido), when rogers bought the sky dome - Rogers bought fido (related) - Rogers bought Skydome (unrelated) - Vertical integration: Buy customer (vertical) and vice versa - Readjustment operations when organization in trouble - Restructuring and divestiture strategies - Formulate strategies - Cost and quality (toyota - reliable vehicles, reasonable price) - Knowledge and speed - Barriers to entry (financial resources) - Financial resources - Strategy formulation: Eatons: Case Example 1. Identify (Similar to the Bay) - 2. Analyze - appeared like the environment was open for another higher end department store and they had the resources to convert stores to higher end stores 3. Revise - changed strategy to being a high end retailer 4. Implement - changed stores appearance and marketing campaigns 5. Evaluate - realized they already had a brand image in the eyes of consumers - failed and sold company to Sears Why they failed - Changed their brand (failed miserably), everything got more expensive - failed because old customers left due to higher price (why do we have to pay for money for a new logo) - Don't know what there selling and does not attach value to that brand Branding change : Ashley Madison
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