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APA style please and at lest two resources you can answer first chapter 2 with title page and intro and mainbody and conclusion and re4frences than chapter 4 with again title page intro main body conclusion references. thank you in advanceChapter 3 – Listo Systems : The Employees’ Impact on the SystemOne of the key reasons for Listo Systems’ early success and growth was the dedication and commitment of the employees. Employees worked hard to achieve the clear goals set by management. They were asked for their opinions regarding the direction in which Listo Systems was heading. Employees were engaged and felt empowered to make decisions regarding how and when the work got done. Answer the following questions by applying the concepts learned in Chapter 3. Also, conduct literature reviews on the subject of discussion and use to support your case study answers:1. What theories and/or studies could be applied here to better understand what is motivating employees at Listo Systems?Chapter 4 – Listo Systems: The Challenge of a Growing OrganizationListo Systems’ VISION statement is: “To be recognized as a leader in supplying quality graphic design products and services to our customers and to be respected by our clients and staff.”Listo Systems’ MISSION statement is: “We strive to develop superior graphic design products and services for our users through state-of-the-art technology, innovation, teamwork, and leadership.”Following their early success and growth, Listo hired a number of new managers and employees. In response to the expansion of staff, Listo reorganized by adding layers of supervisors and managers between executive management and line staff; however, growth occurred so rapidly that proper training was not provided to the new employees. Management was less concerned with the employees’ opinions and was more focused on production and profit. Instead of enlisting employees’ opinions, more directive orders were given. The change and increased complexity associated with adding new layers to the hierarchy resulted in the organization’s goals and objectives becoming unclear. Employees began to complain about the new bureaucratic processes and the slow pace of decision making. While the organization has been growing in size, productivity has slowed and quality has decreased. The turnover rate is higher than it has ever been, and the amount of sick days that people take has doubled over the past few years.Answer the following questions by applying the concepts learned in Chapter 4. Also, conduct literature reviews on the subject of discussion and use to support your case study answers:Using the above scenario, consider Organizational Level 1: Key Players (Stakeholders) and Business Ideas (Purpose). Which Leadership Challenge response is most appropriate: Establishing, Refining, or Monitoring? Using the theories discussed in Chapters 1-4, explain why you chose that response.Using the above scenario, consider Organizational Level 2: Entity (Culture) and Strategy (Mission). Which Leadership Challenge response is most appropriate: Defining, Shaping, or Publicizing? Using the theories discussed in Chapters 1-4, explain why you chose that response.Using the above scenario, consider Organizational Level 3: Departments (Units) and Key Results (Success Factors). Which Leadership Challenge response is most appropriate: Involving, Facilitating, or Communicating? Using the theories discussed in Chapters 1-4, explain why you chose that response.Using the above scenario, consider Organizational Level 4: Teams (Groups) and Goals (Objectives). Which Leadership Challenge response is most appropriate: Focusing, Unifying, or Connecting? Using the theories discussed in Chapters 1-4, explain why you chose that response.Using the above scenario, consider Organizational Level 5: Individuals (People) and Tasks (Jobs). Which Leadership Challenge response is most appropriate: Enabling, Engaging, or Empowering? Using the theories discussed in Chapters 1-4, explain why you chose that response.
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UNDERSTANDING MARKETING MANAGEMENT
esTablIshInG sTraTeGIc busIness
unITs
Large companies normally manage quite different businesses, each
requiring its own strategy. At one time, General Electric classified
its businesses into 49 strategic business units (SBUs). An SBU has
three characteristics:
1.
2.
3.
It is a single business, or a collection of related businesses, that
can be planned separately from the rest of the company.
It has its own set of competitors.
It has a manager responsible for strategic planning and profit
performance, who controls most of the factors affecting profit.
Source: © Horizons WWP/Alamy
The purpose of identifying the company’s strategic business
units is to develop separate strategies and assign appropriate funding. Senior management knows its portfolio of businesses usually
includes a number of “yesterday’s has-beens” as well as “tomorrow’s winners.” Liz Claiborne has put more emphasis on some of its
younger businesses such as Juicy Couture, Lucky Brand Jeans, Mexx,
and Kate Spade while selling businesses without the same buzz
(Ellen Tracy, Sigrid Olsen, and Laundry).
assIGnInG resources
To each sbu18
Metro outsources
much of its production
and operations for the
different newspapers
which it publishes in
markets around the
world.
Once it has defined SBUs, management must decide how to allocate
corporate resources to each. The GE/McKinsey Matrix classified each
SBU by the extent of its competitive advantage and the attractiveness
of its industry. Management could decide to grow, “harvest” or draw
cash from, or hold on to the business. BCG’s Growth-Share Matrix used relative market share and annual rate of market growth as criteria for investment decisions, classifying SBUs as dogs, cash cows, question marks, and stars.
Portfolio-planning models like these have largely fallen out of favor as oversimplified and subjective. Newer
methods rely on shareholder value analysis and on whether the market value of a company is greater with an SBU
or without it. These value calculations assess the potential of a business based on growth opportunities from global
expansion, repositioning or retargeting, and strategic outsourcing.
assessInG GrowTh oPPorTunITIes
Assessing growth opportunities includes planning new businesses, downsizing, and terminating older businesses.
If there is a gap between future desired sales and projected sales, corporate management will need to develop or
acquire new businesses to fill it.
Figure 2.2 illustrates this strategic-planning gap for a hypothetical manufacturer of blank DVD discs
called Cineview. The lowest curve projects expected sales from the current business portfolio over the next
| Fig. 2.2 |
Desired
sales
Diversification
growth
Strategic-Planning
Gap
Integrative growth
Sales ($ millions)
The StrategicPlanning Gap
Intensive growth
Current
portfolio
0
1
2
3
Time (years)
4
5
DEVELOPING MARKETING STRATEGIES AND PLANS
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CHAPTER 2
43
five years. The highest describes desired sales over the same
period. Evidently, the company wants to grow much faster than
its current businesses will permit. How can it fill the strategicplanning gap?
The first option is to identify opportunities for growth within
current businesses (intensive opportunities). The second is to
identify opportunities to build or acquire businesses related to current businesses (integrative opportunities). The third is to identify
opportunities to add attractive unrelated businesses (diversification
opportunities).
esPn Through its singular focus on sports programming and news, ESPN grew from a small regional broadcaster into the biggest name in sports. In the early 1990s, the company crafted a well-thought-out plan: Wherever
sports fans watched, read, and discussed sports, ESPN would be there. It pursued this strategy by expanding its brand
and now encompasses 10 cable channels, a Web site, a magazine, a few restaurants (ESPN Zone), more than 600 local radio affiliates, original movies and television series, book publishing, a sports merchandise catalog and online store,
music and video games, and a mobile service. ESPN International partly or wholly owns 47 television networks outside
the United States and a variety of additional businesses that reach sports fans in more than 200 countries and territories
across all seven continents. Now owned by The Walt Disney Company, ESPN contributes $9.4 billion a year in revenue, or
roughly three-fourths of Disney’s total cable network revenues. But perhaps the greatest tribute to the power of its brand
came from one male focus group respondent who said, “If ESPN was a woman, I’d marry her.”
So how might Cineview use these three major intensive growth strategies to increase its sales? It could try to
encourage its current customers to buy more by demonstrating the benefits of using DVD discs for data storage in addition to video storage. It could try to attract competitors’ customers if it noticed major weaknesses
in their products or marketing programs. Finally, Cineview could try to convince nonusers to start using blank
DVD discs.
How can Cineview use a market-development strategy? First, it might try to identify potential user groups
in the current sales areas. If it has been selling DVD discs only to consumer markets, it might go after office and
factory markets. Second, it might seek additional distribution channels by adding mass merchandising or online
channels. Third, the company might sell in new locations in its home country or abroad.
Management should also consider new-product possibilities. Cineview could develop new features, such as
additional data storage capabilities or greater durability. It could offer the DVD discs at two or more quality
levels, or it could research an alternative technology such as flash drives.
These intensive growth strategies offer several ways to grow. Still, that growth may not be enough, and management must also look for integrative growth opportunities.
Source: © Patti McConville/Alamy
INTENSIVE GROWTH Corporate management should first
review opportunities for improving existing businesses. One useful
framework is a “product-market expansion grid,” which considers
the strategic growth opportunities for a firm in terms of current and
new products and markets.
The company first considers whether it could gain more market
share with its current products in their current markets, using a
market-penetration strategy. Next it considers whether it can find
or develop new markets for its current products, in a marketdevelopment strategy. Then it considers whether it can develop new
products for its current markets with a product-development strategy. Later the firm will also review opportunities to develop new
products for new markets in a diversification strategy. Consider
how ESPN has pursued a variety of growth opportunities (see
Figure 2.3).19
Liz Claiborne has
put more emphasis
on its Juicy Couture
stores than its other
slower-growing lines of
business.
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Walt Disney
ESPN Brand Hierarchy
Print
Consumer
Products
ESPN The
Magazine
ESPN Shop
Online
ESPN.com
ESPN La
Revisita
ESPN Video
Games
ESPNRadio
.com
Online
Revisita
ESPN
ESPN
Music
ESPNDeportes
.com
ESPN
Television
Interactive
ESPN
Zone
ESPN
Books
Other Media
ESPN Wide World
Sports Complex
ESPN
Books
ESPNSoccer
net.com
ESPN2
ESPNCricinfo
.com
ESPN3
ESPNScrum
.com
ESPN 3D
ESPNF1.com
ESPNU
ESPN
Radio
ESPN on
ABC
ESPN Deportes
Radio
ESPN Classic
ESPN Mobile
ESPN
Deportes
ESPN
Rise
ESPNw
ESPN News
| Fig. 2.3 |
ESPN Growth
Opportunities
INTEGRATIVE GROWTH A business can increase sales and profits through backward, forward, or
horizontal integration within its industry. Merck formed joint ventures as far back as 1989 with Johnson &
Johnson to sell over-the-counter pharmaceuticals and 1991 with DuPont to expand basic research. In 1997,
Merck and Rhône-Poulenc S.A. (now Sanofi-Aventis S.A.) combined their animal health and poultry genetics
businesses to form Merial Limited, a fully integrated animal health company. Finally, Merck acquired
Schering-Plough in 2009.20
Horizontal mergers and alliances don’t always work out. The merger between Sears and Kmart didn’t solve
either retailer’s problems.21 Nextel Communications Inc. merged with Sprint in 2005 in what Bloomberg’s financial
analysts called one the worst mergers of the past 10 years, in part due to their incompatible networks.22 Consider
the challenges faced by United and Continental in their merger.23
United and cOntinentaL Airline mergers are notoriously tricky, laden with regulations
and a host of potentially conflicting considerations about safety, cost, style, reliability, convenience, speed, and comfort.
United’s merger with Continental made sense strategically and financially, but logistical problems seemed endless because
the two airlines ran their businesses in very different ways, from boarding procedures to the way they brought planes into
the gate. Even coffee was a thorny issue; United served Starbucks while Continental used a company called Fresh Brew.
After extensive research, a suitable compromise was identified—a lighter fresh blend called Journeys—but customers
were unimpressed until the company discovered the two airlines had different brew baskets and United’s was actually
leaking water and diluting the coffee. New pillow packs were commissioned to solve the problem.
DEVELOPING MARKETING STRATEGIES AND PLANS
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Source: ESPN, Inc.
ESPN’s flagship SportsCenter
program is an anchor of its
television network and related
sports businesses.
Media companies, on the other hand, have long reaped the benefits of integrative growth. Consider how NBC
Universal leveraged one of its properties:24
Following the 2006 Curious George movie release via Universal Pictures, Curious George the TV show
was released on PBS Kids as a joint production by Universal Studios Family Productions, Imagine
Entertainment and WGBH Boston. Universal Studios Hollywood currently has an Adventures of
Curious George ride where kids can “soak up the thrills of a five hundred gallon water dump and
unleash thousands of flying foam balls. . . . ”
How might Cineview achieve integrative growth? The company might acquire one or more of its suppliers,
such as plastic material producers, to gain more control or generate more profit through backward integration.
It might acquire some wholesalers or retailers, especially if they are highly profitable, in forward integration.
Finally, Cineview might acquire one or more competitors, provided the government does not bar this horizontal
integration. However, these new sources may still not deliver the desired sales volume. In that case, the company
must consider diversification.
Source: Associated Press
United and Continental found it
harder to merge their airlines
than just blending their logos on
their planes.
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DIVERSIFICATION GROWTH Diversification growth makes sense when good opportunities exist
outside the present businesses—the industry is highly attractive and the company has the right mix of
business strengths to succeed. From its origins as an animated film producer, The Walt Disney Company has
moved into licensing characters for merchandised goods, publishing general interest fiction books under the
Hyperion imprint, entering the broadcast industry with its own Disney Channel as well as ABC and ESPN,
developing theme parks and vacation and resort properties, and offering cruise and commercial theatre
experiences.
Several types of diversification are possible for Cineview. First, the company could choose a concentric strategy
and seek new products that have technological or marketing synergies with existing product lines, though appealing to a different group of customers. It might start a compact disc manufacturing operation because it knows
how to manufacture DVD discs or a flash drive manufacturing operation because it knows digital storage. Second,
it might use a horizontal strategy and produce plastic DVD cases, for example, though they require a different
manufacturing process. Finally, the company might seek new businesses with no relationship to its current
technology, products, or markets, adopting a conglomerate strategy to consider making application software or
personal organizers.
DOWNSIZING AND DIVESTING OLDER BUSINESSES Companies must carefully prune, harvest, or
divest tired old businesses to release needed resources for other uses and reduce costs. To focus on its travel and
credit card operations, American Express spun off American Express Financial Advisors, which provided
insurance, mutual funds, investment advice, and brokerage and asset management services (it was renamed
Ameriprise Financial). American International Group (AIG) agreed to sell two of its subunits—American General
Indemnity Co. and American General Property Insurance Co.—to White Mountains Insurance Group as part of a
long-term growth strategy to discard redundant assets and focus on its core operations.25
orGanIzaTIon anD orGanIzaTIonal culTure
Strategic planning happens within the context of the organization. A company’s organization consists of
its structures, policies, and corporate culture, all of which can become dysfunctional in a rapidly changing
business environment. Whereas managers can change structures and policies (though with difficulty), the company’s culture is very hard to change. Yet adapting the culture is often the key to successfully implementing a
new strategy.
What exactly is a corporate culture? Some define it as “the shared experiences, stories, beliefs, and norms
that characterize an organization.” Walk into any company and the first thing that strikes you is the corporate
culture—the way people dress, talk to one another, and greet customers.
A customer-centric culture can affect all aspects of an organization. Enterprise Rent-A-Car features its own
employees in its latest “The Enterprise Way” ad campaign. Through its “Making It Right” training program,
Source: Getty Images
Enterprise Rent-A-Car is known
for its strong consumer-centric
corporate culture.
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Enterprise empowers all employees to make their own decisions. One ad in the campaign, themed “Fix Any
Problem,” reinforces how any local Enterprise outlet has the authority to take actions to maximize customer
satisfaction.26
markeTInG InnoVaTIon
Innovation in marketing is critical. Imaginative ideas on strategy exist in many places within a company.
Senior management should identify and encourage fresh ideas from three generally underrepresented groups:
employees with youthful or diverse perspectives, employees far removed from company headquarters, and
employees new to the industry. Each group can challenge company orthodoxy and stimulate new ideas.
British-based Reckitt Benckiser has been an innovator in the staid household cleaning products industry by
generating 35 percent of sales from products under three years old.27 Its multinational staff is encouraged to dig
deep into consumer habits and is well rewarded for excellent performance. Slovenia-based Krka—makers of prescription pharmaceuticals, non-prescription products and animal health products—aims to generate more than
40 percent of its total sales from new products.28 “Marketing Insight: Creating Innovative Marketing” describes
how some leading companies approach innovation.
Firms develop strategy by choosing their view of the future. The Royal Dutch/Shell Group has pioneered
scenario analysis, which develops plausible representations of a firm’s possible future using assumptions about
forces driving the market and different uncertainties. Managers think through each scenario with the question,
“What will we do if it happens?,” adopt one scenario as the most probable, and watch for signposts that might
confirm or disconfirm it.29 Consider the strategic challenges faced by the movie industry.30
marketing
insight
Creating Innovative Marketing
When IBM surveyed top CEOs and government leaders about their priorities, business-model innovation and coming up with unique ways of
doing things scored high. IBM’s own drive for business-model innovation led to much collaboration, both within IBM and externally with companies, governments, and educational institutions. Then-CEO Samuel
Palmisano noted how the breakthrough Cell processor, based on the
company’s Power architecture, would not have happened without collaboration with Sony and Nintendo, as well as competitors Toshiba and
Microsoft.
Procter & Gamble (P&G) has made it a goal for 50 percent of new
products to come from outside its labs—from inventors, scientists,
and suppliers whose new-product ideas can be developed in-house.
Mark Benioff, CEO and co-founder of Salesforce.com, believes the key
to innovation is the ability to adapt. While the company spent years
relying on disruptive ideas to come from within, it acquired two firms
for $1 billion because it “couldn’t afford to wait” and has purchased
24 firms in total. As Benioff notes, “Innovation is a continuum. You
have to think about how the world is evolving and transforming. Are
you part of the continuum?”
Business guru Jim Collins’s research emphasizes the importance
of systematic, broad-based innovation: “Always looking for the one big
breakthrough, the one big idea, is contrary to what we found: To build a
truly great company, it’s decision upon decision, action upon action, day
upon day, month upon month. . . . It’s cumulative momentum and no one
decision defines a great company.” Collins cites Walt Disney in theme
parks and Walmart in retailing as examples of companies that were
successful by executing a big idea brilliantly over a long period of time.
To find breakthrough ideas, some companies immerse a range of
employees in solving marketing problems. Samsung’s Value Innovation
Program (VIP) isolates product development teams of engineers,
designers, and planners with a timetable and end date in the company’s center just south of Seoul, Korea, while 50 specialists help
guide their activities. To help make tough trade-offs, team members
draw “value curves” that rank attributes such as a product’s sound
or picture quality on a scale from 1 to 5. To develop a new car, BMW
mobilizes specialists in engineering, design, production, marketing,
purchasing, and finance at its Research and Innovation Center or
Project House.
Companies like Facebook and Google kickstart the creative
problem-solving process by using the phrase, “How might we?” Tim
Brown, CEO of IDEO, says IDEO asks “how might we” with each design
challenge. “The ‘How’ part assumes there are solutions out there—it
provides creative confidence,” Brown said. “The ‘Might’ part says we
can put ideas out there that might work or might not—either way, it’s
OK. And the ‘We’ part says we’re going to do it together and build on
each other’s ideas.”
Sources: Steve Hamm, “Innovation: The View from the Top,” BusinessWeek, April 3,
2006, pp. 52–53; Jena McGregor, “The World’s Most Innovative Companies,”
BusinessWeek, April 24, 2006, pp. 63–74; Rich Karlgard, “Digital Rules,” Forbes,
March 13, 2006, p. 31; Jennifer Rooney and Jim Collins, “Being Great Is Not Just
a Matter of Big Ideas,” Point, June 2006, p. 20; Moon Ihlwan, “Camp Samsung,”
BusinessWeek, July 3, 2006, pp. 46–47; Mohanbir Sawhney, Robert C. Wolcott,
and Inigo Arroniz, “The 12 Different Ways for Companies to Innovate,” MIT Sloan
Management Review (Spring 2006), pp. 75–85; Victoria Barret, “Why Salesforce.com
Ranks #1 on Forbes Most Innovative List,” Forbes, September …
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