Group Case Report
Cervus Equipment Corp: Harvesting a Future
04-75-498 Section 30
Dr. Jonathan Lee
Group 1
Mohammad Abdulhamid
Curtis Ficociello
Matthew Lacey
Dominick Niec
Shirley Sumarjadi
Due: March 10, 2014
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Key Issues
1) Implementing an innovative growth strategy that can achieve expected growth, while maintaining a value based employee model.
2) Cervus’ future approach in the execution of a diversification growth strategy, in the construction and industrial equipment markets.
3) Evaluating growth potential in international markets and the vehicles present.
4) Responding to IT environmental complexities alongside available partnerships which to work
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Traditionally, independent dealerships utilize a far more centralized approach to customer-level decision-making. These ‘mom-and-pop’ dealerships acquired by Cervus were successfully converted from a ‘command-and-control’ style of management.
Inimitability and Substitutability
Cervus’ decentralized decision-making model could be easily imitated. At first glance the model’s imitability appears to be a major barrier that is preventing a sustainable competitive advantage. However, decentralization is not a new concept and was certainly not developed by Cervus. The true value lies in Cervus’ ability to implement and execute the concept, which involves far more than simply imitating a model or a process. Would-be imitators must also invest the time necessary to develop the experience and capability to implement the model effectively. Thus, Cervus’ decentralization capabilities are actually quite difficult to imitate as they require a significant time investment.
The organization of power within a corporation is a rigid dichotomy between centralization and decentralization. Substitute strategies can exist anywhere along the spectrum whether they are completely centralized, completely decentralized or somewhere in between. Though Cervus’ methods are substitutable, centralized policies have not proven to be nearly as successful in maintaining
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A strong emphasis is placed on the company's roots, as they are a family owned business dedicated to providing buyers with friendly, courteous service. All customers are treated with dignity and respect, and staff members work to foster long-lasting relationships with every individual. The dealership strives to surpass the expectations of consumers to ensure they are completely satisfied at every point of service. This commitment extends far beyond the initial sale or
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Today, many organizations struggle with implementing realistic strategies for growth. More than ever leaders are faced with developing and implementing strategic plans that promote organizational effectiveness while addressing potential threats. Through research I have discovered that there are several approaches or perspectives that leaders can take when developing organizational strategies for growth. According to Porter, (1996) in regard to strategy organizations “Must be flexible to respond rapidly to competitive
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