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MAN 320F CASE STUDIES EXAM 2
1. Cola Wars: Barriers of Entry: Brand
equity Limited shelf space, vending slots, and fountains The bottling system is very capital intensive and exclusive
2. Cola Wars: Scale economies in advertising: - Exhibit 8 "bang for the buck"
- Coke spent $15 million per share point
- Dr. Pepper spent $19 per share point
- Gatorade spent $38 million per share point
3. Cola Wars: How do soft drink companies get away with charging $1- 2 for a
product when the "healthy" substitute (tap water) is free?: - Substitutes not always available
- CSD often an impulse buy
- Lifestyle choices
- Addiction
- Drinking Coke or Pepsi as a status symbol
4. Cola Wars: Porter's five forces of competition: - The Power of Customers
- The Power of Suppliers
- The Threat of Potential Entrants
- The Availability and Comparability of Substitutes
- Competition Among Existing Competitors
5. Cola Wars: Bottlers have had very little power in the last 25 years even when
independent: - High switching costs
- Franchise agreement lock down bottlers
- Concentrate producers otter significant benefits
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- Competitors are concentrated
6. Cola Wars: Rivalry: Coke and Pepsi avoid downward
spiral High degree of perceived ditterentiation Competition is focused on everything except price
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13. Cola Wars: What is driving change?: Non-
CSDS Demographics and flattening demand Health concerns Greater control over value chain
14. Cola Wars Summary: We have to look at the underlying economics for both concentrate producers and
bottler. Coke and Pepsi did not inherit this business they created it Coke and Pepsi are smart competitors. When they go to war, they kill all bystanders
15. Cynthia Carroll: Key themes: Transforming operations and culture of a large organization
Communicating across a diverse organization Managing key stakeholders Organizational change
16. Pros of closing the mines: Sends message that Carroll is serious about
safety Creates a sense of urgency If workers paid, government, unions and workers are happy
17. Cons of Closing the Mines:
Expensive Upset shareholders May increase the danger of mines
18. What Cynthia Carroll demanded: Wanted to meet with all Rustenberg employees
Wanted Rustenberg managers on board safety was job #
5 / All 9 shafts were closed on a rotating basis
19. Listening to 30,000 employees: Challenges:
Ditterent languages and many dialects, 70% illiteracy rate, Workers never asked before
20. Reopening the challenge: Mines were brought up to
standards Workers given right to close mine if concerned about safety Mine was less productive - $40 million loss
21. What Cynthia Carroll did: - Identify best practices and disseminate
- Ensure workers voices heard
- Getting all executives on board
- Established dedicated team to investigate accidents
- Zero tolerance for no compliance
22. Next steps: Created a summit where Anglo American, unions and government worked together for zero harm
23. Prion Disease Contamination:
Crisis Characteristics: Although all crisis are unique they share characteristics The element of surprise Negative news travels fast
24. Argenti's Crisis Playbook: 1. Get Control of the situation
2. Gather as much information as possible
3. Set up a centralized crisis management center
4. Communicate early and often
5. Understand the medias mission in a crisis
6. Communicate directly with attected constituents
7. Remember that business must continue
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5. Conduct public relations as if the whole enterprise depends on it
6. Realize an enterprise's true character is in its people
7. Remain calm, patient and good humored
26. AES Corporation: - Events: Enron, 9/11, CA power crises, Argentina meltdown (lost 90% stock)
- core values of integrity, fairness, fun, social responsibility
- honeycomb decision making (decision making to lowest levels, decisions team level)
- board fired the founders- path of least resistance
- no human resources, manage at team level
27. Subarctic Survival Simulation:
Synergistic Decision Making: Synergistic decision making is based on the premise that:
1. People are supportive
2. Follow rational sequence of activities
3. They can perform beyond the sum of their parts
28. The Interpersonal Process: - Listening to others
- Supporting their ettorts to do well
- Dittering with others when necessary in a manner that is constructive rather than defensive
- Participating equally in group discussions
29. Listening: - Objectively weight what has been said
- Try to understand from their point of view
30. Constructive Differing: - State ditterences without accusing and without implying that the other person is
wrong (is tactful)
- Treat ditterences as a source of ideas rather than a source of interpersonal conflict
31. Participating: - Recognize that you are facing the problem as a group
- Determine whether everyone agrees with statements regarding the group's position
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- Ask less talkative members for their ideas and opinions
- Ensure that ALL members feel comfortable enough to express their ideas
32. The Rational Process: - Analyze the situation
- Identify objectives or goals
- Simplify the problem
- Consider alternative strategies
- Discuss adverse consequences
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41. Hublot Results: Increased revenue 10x in 4
years Sold Hublot to Louis Vuitton Appointment Head of Watchmaking at Louis Vuitton
42. Steve Jobs: - Started Apple in 1976
- Transformed several industries
- The culture behind the man
- The value of simplicity
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- Never compromise
- Play your "A" game with "A" player
43. Apple Competitive Advantage: - Ease of use
- Desktop publishing and education
- Buyer loyalty
- Proprietary system
- Brand
- Apple Ecosystem
- Creative design
44. Results of rivalry: - Reductions in prices
- PCs are commodities
- Rapid technology obsolescence
- Strong sophisticated buyers Bottom line - Very tough industry
45. Where does Apple fit in this picture?: - Apple not directly in PC business
- High barriers
- Loyal customers
- More than just a PC company
- Macs and PCs are substitutes
- Declining PC prices
- Limited software for Macs
46. How did Apple try to solve these issues?: Apple had many CEOs. They focused on high volume and
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- Strong competition from Android
- Fashion or fad
- Competition from China
49. broader lessons from apple: - Product advantage versus competitive advantage (requires thinking
through the entire value system of a company, not just making a better product)
- Companies need to pay attention to timing and windows of opportunity
- Extraordinary results require extraordinary thinking
