Better Essays

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

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 …show more content…

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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