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chose at least 4 posting and reply in atleast 75 words for each follow-up response thus include critical analysis, and be supported by the relevant in-text citations and reference sources.
That will be a total of 4 paragraphs
chose any activity but at least two replies for activity 1 and two replies for activity 2
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The QSPM Matrix shows a relative attractiveness of the market penetration
strategy, providing objective basic for future unit-specific strategies that could
potentially lead the corporation to success. This optimal strategy would be
adequate for the corporate’s future activities for these reasons:
1. Industry expansion reflects the attractiveness an industry and the
discovered potentialities in it. By acquiring new customers using the
existing services, CMA CGM may increase its sales growth in its
existing markets to gain a higher market share.
2. In emerging markets, gaining new market shares from existing services can
secure a competitive advantage such as brand power which can be reliable,
to some extent, for sustaining that competitive advantage and reach new
growth rates to increase profits and facilitate corporate expansion.
3. The market penetration strategy may also help the corporation better
understand its competitive environment. Because the corporation will be
aiming at the existing markets using existing products, the strategy will
also have a focus on the competititors to determine their number and their
level of competitiveness. Answers to these interrogations will influence how
aggressive the corporation needs to be face to the competition.
References:
Week 5 Readings and Audio.
CMA CGM Official website: https://www.cma-cgm.com/the-group/about-
us/presentation
Week 5 -LA 2- Alternatives… (14.4 KB)
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Week 5 – LA 1 – ADiaw
Alioune Diaw posted Feb 9, 2018 3:32 AM Subscribe
Learning Activity 1:
CMA CGM evolves in the container shipping industry. Last week’s analysis defined
that the corporation highly follows a differentiation strategy as its generic
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business strategy basing its source of competitive advantage in uniqueness of
their delivered services which facilitates targeting a broad market for their scope
of operations; as stated in their visions and values. This program has given the
organization access to international markets with access to new customers,
especially in Africa and Asia, lowered transportation and delivery costs and
diversified the Business Risk. Only 6% of its employees are working with the
corporation in its home country, France. (cma-cmg.com)
Thus, to maintain its posture as the third worldwide leading shipping group and
an economic player, the corporation may need to implement corporate-level
strategies to achieve and sustain the main differentiation strategy. The following
may be considered:
Product development or the creation of new services to attract new
customers in the existing market. This strategy especially can be effective
in the almost saturated industry and with future expansions forecasted.
Market development. CMA CMG may propose their existing services to new
markets. This will increase the potentiality to reach new geographic areas
(for instance, have access to more African and Asian commercial ports),
together with an expansion of the shipping routes and a lowering of
shipping costs in the long run.
Market penetration. The expansion of the container shipping industry will
most likely encourage this concentration strategy as it increases chances of
fast losing organization’s competitive advantage. To gain additional market
share, the corporation may advertise its existing services or mission
statement to gain new customers, either new to the market or existing that
were the competition’s customers.
Horizontal integration. Another strategy that CMA CGM could implement is
the acquisition or merger of/with new businesses. This method will
ultimately lower costs of services by achieving greater economies of scale.
(The Saylor Foundation, 2014). Another example of horizontal integration
would be alliances which tighten competition around members of the
alliance, gives access to new shipping routes (distribution channels) and
serve to block new entry to markets, together making the industry
more
profitable
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Learning Activity#2
Caitlyn Gordon posted Feb 7, 2018 6:47 PM Subscribe
*** QSPM is attach**
The QSPM is an effective tool to understand which strategy, where it be at a
business or corporate level, is the best fit for the organization at the present
(“Quantitative Strategic Planning Matrix (QSPM)”, n.d.). It compares and contrasts
multiple strategies with weighted scores that pertain to that corporation. The total
sum of attractiveness score, calculated from weighted scores from IFE matrix and
EFE matrix and their corresponding AS (attractiveness score) are numerical proof
of which strategy is better or worse for company. The enormous size of GSK
pharmaceuticals has a high risk to not make effective decisions for the entire
corporation. Using the QSPM as one the many tools to make a decision for the
corporation ensures the company remains objective in making the company’s
goals.
From the QSPM above for GlaxoSmithKline , you can immediately tell that product
development is the best corporate level strategy for the company. Product
development strategy for GSK means expanding its current products in their
consumer healthcare and pharmaceutical lines. Currently, GSK has the potential to
expand its consumer healthcare lines with its tooth hygiene products. The
hygiene line is is gaining strength globally. It was ranked number one for oral
health specialist in fifty markets (“Quick Facts”, 2017). This notoriety brings
brand recognition which will allow for profitable product development.
Quick Facts. (2017). Gsk.com. Retrieved 7 February 2018,
from https://www.gsk.com/media/3646/gsk-quick-facts
Quantitative Strategic Planning Matrix (QSPM). MBA Tutorials. Retrieved 7 February
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Last post yesterday at
12:40 PM by Caitlyn
Gordon
Learning Activity#1
Caitlyn Gordon posted Feb 7, 2018 6:43 PM Subscribe
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GlaxoSmithKline LLC, GSK,. is using its brand recognition and high market share to focus on product
differentiation. The product differentiation for GSK are vaccines, pharmaceuticals (prescriptions), and consumer
healthcare. To take that generic strategy a step forward, the company needs to hone in on few different strategies:
Corporate level Strategy:
1. Market Penetration- expand the market in the United States and East Asia
2. Market Development – bring the European consumer healthcare products to the US market
3. Product
Development
4. Related Diversification -economies of scope
The suggested corporate level strategies will advance the generic strategy of increasing brand
recognition and differentiation. GSK needs to explore different possibilities with social media and
advertising in their US and Asia market. GSK’s main market is in the UK and it is slowing pushing its way
into the US and Asia. The competition in both market, especially the US market is fierce. The
company
needs to gain brand recognition through strong marketing campaigns of its current products ( Strategic
Management, 2014, Leading Strategically, p.138).
Through this market penetration, there needs be market development. American’s are always looking
for new products and or effective products to instantly fix their issue. GSK has number of products that
are not allowed in the United States for various reasons such as, patents not being accepted, stricter
pharmaceutical regulations, and various government legalities. These should not be a reason to not
have these products offered in the US or other markets. GSK should start working with the
governments of specific countries and start offering these products to gain more market share. It could
potentially bring a number of new consumers to GSK. Now with that being said, there needs to set of
financial benchmarks or mile-marker to ensure that there is fair amount of money being spent on
getting those products into the market (Morello, n.d.).
Consumers are always looking for new and better forms of their prescription (pharmaceuticals), vaccine,
and development. GSK needs to improve on their product development with diversification. It is slowly
building its consumer healthcare sector, especially in the US. The sector, as whole, brought in 7.2 billion
British pounds in 2016 (“Quick Facts”, 2017). It needs to start increasing its vaccine and
pharmaceutical products for the US and Asia market. Pharmaceutical industry itself is a very unknown
industry to the average consumers. GSK could use their growing consumer healthcare market share in
the US and create affordable and high quality forms of medicine and consumer healthcare products for
the US and Asia market. This is related diversification, bringing new products to the existing base of
consumers( Strategic Management, 2014, Leading Strategically, p 257). Consumers are more willing to
purchase from companies that they know and trust from not just one product. If the consumer knows
the company is successful and reputable with on product, they are more inclined to purchase another
product from them.
Resources:
Morello, R. What is Marketing Strategy Development?. Smallbusiness.chron.com. Retrieved 7 February
2018, from http://smallbusiness.chron.com/marketing-strategy-development-58521.html
http://smallbusiness.chron.com/marketing-strategy-development-58521.html
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Quick Facts. (2017). Gsk.com. Retrieved 7 February 2018, fromhttps://www.gsk.com/media/3646/gsk-
quick-facts
Strategic Management. (2014). Leading strategically. Washington, D.C.: The Saylor Foundation. Pages
241/257
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Last post yesterday at
12:30 PM by Jared Ubben
LA 1
Cassandra Caster posted Feb 8, 2018 2:29 PM Subscribe
The company that I have been using in past discussions is Bergey Wind Power.
Bergey Wind Power is a company that specializes in small wind turbines for
homes, farms and small businesses (Bergey, n.d.). In last week’s discussion, I
determined that the generic strategy that Bergey should continue to focus is
differentiation. The essence of a differentiation strategy is separating the product
of a company from its’ competitors. One corporate-level strategy that Bergey
could pursue is a diversification strategy. The diversification strategy will allow
Bergey to branch off and enter other markets to gain new business. Bergey could
look towards creating a business friendly model for larger corporations, or
models that can be used with neighborhood smaller-businesses. This will allow
Bergey to compete with some of their larger competitors.
Other strategies that Bergey could pursue are concentration strategies.
Concentration strategies will allow Bergey to be able to better compete in the
wind industry. In using a concentration strategy, Bergey can use product
development, market penetration and market development as part of its’ efforts
to excel within the industry (Strategic Management, 2014). In order to expand
their customer base and increase brand loyalty, Bergey can focus on increasing
the demand for wind turbines while creating a plan for market and product
development.
References
https://www.gsk.com/media/3646/gsk-quick-facts
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LA 2
Cassandra Caster posted Feb 8, 2018 2:28 PM Subscribe
In the chart below, I have compared my four strategies: market development,
diversification, product development and market penetration. The strategy that
earned the highest attractiveness score was market penetration. Bergey already
contains the best warranty in the wind turbine industry. As they continue to
improve and develop their wind turbines, Bergey will continue to win over
customers and penetrate the market deeper and hold a higher value of market
share. As wind energy continues to develop, customers will start looking at
turbines and companies that have a great reputation.
Market
Development
Diversification
Product
Development
Market
Penetration
Factors Weight A.S Total
A.S
A.S Total A.S A.S Total A.S A.S Total
A.S
O- Increased
Awareness for
Environment
0.20 4 0.80 3 0.60 4 0.80 4 0.80
O- Tax
Credits
0.15 4 0.60 2 0.30 1 0.15 3 0.45
O- EPA Limits
on Power
Plants
0.15 3 0.45 2 0.30 1 0.15 1 0.15
O- Potential
Market Growth
for Farmers
0.05 3 0.15 4 0.20 4 0.20 2 0.10
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O-
Government’s
willingness to
turn to wind
energy
0.15 2 0.30 3 0.45 2 0.30 4 0.60
T- Increasing
shipping costs
0.10 2 0.20 2 0.20 2 0.20 3 0.30
T- Availability
and amount of
advertising for
solar power
0.15 1 0.15 2 0.30 2 0.30 3 0.45
T-More
Competition
0.05 3 0.15 4 0.20 4 0.20 4 0.20
S-“Wind
School”
0.10 2 0.20 1 0.10 1 0.10 3 0.30
S-
International
Projects
0.15 3 0.45 4 0.60 2 0.30 4 0.60
S- Variety of
products
0.15 3 0.45 4 0.60 4 0.60 3 0.45
S – Longest
warranty in
industry
0.30 4 1.20 4 1.20 4 1.20 3 0.90
W-Certified
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LA #2
Danielle Hardy posted Feb 8, 2018 6:58 PM Subscribe
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LA #1
Danielle Hardy posted Feb 8, 2018 6:55 PM Subscribe
1. Macure Pharma could use the disruptive innovation strategy to outperform
their competitors. This strategy would require the company to create a new
process for formulating their specialty blends of pharmaceuticals. This would
allow them to manufacture their products cheaper, while still selling at their
premium costs, will increase their profit margin (Strategic Management, 2014).
2. Alternately, Macure Pharma could implement the Blue Ocean strategy and
create a new segment in the pharmaceutical market. This would require them to
use their research and development capabilities to manufacture a new drug that
the public is not aware that they need. Demands will rise, along with profits
(Strategic Management, 2014).
3. A third option would be to create a strategic alliance with, or acquire as a
subsidiary, another pharmaceutical manufacturer in the market. An acquisition
would be more beneficial for the company’s generic strategy. Macure Pharma
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Learning Activity 2 Darren Carroll
Darren Carroll posted Feb 8, 2018 9:17 PM Subscribe
Note: Last week an error was discovered in the scores of the EFE and IFE thus
throwing off the IE matrix. After learning of the errors, reevaluations and
calculations were made to correct these errors. Some weights might vary from the
former incorrect IE matrix.
QSPM – Orion Pharma
Key Factors
Horizontal
Integration
Forward Vert.
Integration
Back Vert
Integration
Internal Strengths Weight AS TAS AS TAS AS TA
Global Company 0.2 4 0.8 3 0.6 1 0.
Multiple Market
Segments 0.2 4 0.8 3 0.6 1 0.
Market Leader 0.2 – – –
Internal Weakness
Complacency 0.2 2 0.4 1 0.2 3 0.6
Limited Distribution 0.11 – – –
Visionary Leadership 0.09 2 0.18 1 0.09 3 0.2
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1
External
Opportunities
Underdeveloped
Markets 0.1 4 0.4 3 0.3 1 0.
Generics 0.1 4 0.4 2 0.2 3 0.
Economic Development 0.1 4 0.4 3 0.3 1 0.
Partnerships 0.15 3 0.45 2 0.3 1 0.1
Distribution Channels 0.1 3 0.3 4 0.4 1 0.
External
Threats
Government
Regulations 0.09 – – –
Partners in other
markets 0.08 3 0.24 4 0.32 1 0.0
Expiring Patents 0.09 3 0.27 4 0.36 2 0.1
New entrants in
generics 0.1 4 0.4 3 0.3 2 0.
Litigation and law suits 0.09 – – –
1
Total 5.04 3.97 2.4
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The Quantitative Strategic Planning Matrix (QSPM) is a tool used to assist
organizations in determining which strategy a company should focus on to best
achieve a desired direction of the organization. (David, David & David, 2009, The
quantitative strategic planning matrix (QSPM) applied to a retail computer
store, p. 42)
David (et al., 2009, The quantitative strategic planning matrix (QSPM) applied to a
retail computer store, pp. 48-51) lists the steps to properly utilize the matrix as:
1. The matrix consists of key factors from the EFE, IFE, SWOT and IE, along
with the weights used in the referenced matrix. They should be listed in the
key factors and weight columns respectfully.
2. An Attractiveness Score (AS), 1 – 4 with 1 being the lowest and 4 being the
highest, is given to each key factor. All strategies are scored row by row,
not repeating the score. If one item is deemed as having no effect on the
strategy and not scored, then the same row in all strategies be not graded
or dashed out.
3. The product of the weighted key factor and the AS becomes the Total
Attractiveness Score (TAS).
4. A TAS of the key factors for each strategy will be made and placed at the
bottom of the matrix. The highest sum indicates which strategy should be
the most attractive over other strategies.
The QSPM for Orion Pharma indicates the Horizontal Integration is the most
attractive as indicated by the higher TAS. Horizontal Integration simply means to
acquire or merge with other companies in the same market. (Strategic
Management, 2014, Selecting Corporate-level strategies, p. 245)
Horizontal integration for Orion Pharma can be easily achieved in two areas of the
market in which it has already proven to be a leader in; the animal health and
generics. Orion welcomes the creation of meaningful partnerships that improves
research and development, because such partnerships help keep cost low and
increased revenues. This is an enabler of Orion’s strategy of cost leadership.
Through partnerships Orion can identify organizations that might benefit from a
merger, in particularly smaller organizations that cannot bear the cost of research
and development.
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Orion’s global presence should create opportunities to merge with smaller
companies that can lend to Orion entering underdeveloped markets, increasing
sales in generics and finding new distribution channels for all its products.
Additionally, through mergers, Orion can eliminate competitors and new entrants
to the generic market. Likewise, in the animal health market, Orion can establish
brand presence and social responsibility, which goes a long way in today’s market
place. Why social responsibility, simply because Orion can establish a trust with
pet owners as well. It is good to know that pharmaceutical companies not only
value human life but animal life as well.
Learning Activity 1 Darren Carroll
Darren Carroll posted Feb 8, 2018 9:11 PM Subscribe
Orion Pharma is positioned well in a vary of segments in the North European
pharmaceutical market. This did not happen by accident, but through good
leadership. Some of the accomplishments of the company are:
A very lucrative generic market;
Animal health and wellbeing products (Orion, n.d. a, Organisation, para. 3)
Provided of contract manufacturing;
Suppliers of active ingredients (Orion, n.d. b, Products and services)
Encourage partnerships (Orion, n.d. c, Partnering, para. 3)
Such a stance as this creates possibilities and corporate level strategies for
growth and brand awareness. Among the various possibilities of strategies, a few
rises to the top as being a best choice to help the company growth in the industry
and brand. They are:
Horizontal integration
Forward vertical integration
Backward vertical integration
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Related Diversification
Horizontal integration is simply a merger or acquisition of another company in
the same market space. (Strategic Management, 2014, Selecting Corporate-level
strategies, p. 245) The areas that present the best opportunity for this is in the
animal health and partnerships. Orion can help build brand through acquisition of
smaller, possibly distressed animal pharmaceutical manufactures. Visibility of the
brand increases and hopefully market share. And through the open partnerships
Orion could pick and choose a company that would best serve as an extension of
their own efforts for merger. If Orion should expand across the market, the
company could set the prices at the mark best suited for them and others would
have to match them.
Forward vertical integration occurs when a company takes on the buyer’s position
in the value chain. (Strategic Management, 2014, Selecting Corporate-level
strategies, p. 254) The possibilities of such a direction would be in distribution
channels. Currently, Orion does not own any form of distribution channels:
regional distributors or pharmaceutical retail stores. A market penetration such as
this could possibly cause a loss of sales to smaller companies opening gateways
for horizontal integration.
Backward vertical integration is when a company plays the part of the supplier.
(Strategic Management, 2014, Selecting Corporate-level strategies, p. 254) This
should not be very hard, because Orion is a manufacture of pharmaceuticals and
supplier of active in ingredients. The backward vertical integration should be
focused on the value chain beyond the company’s capabilities in the raw material
areas. If such integration should occur, Orion could foreseeability own the entire
value chain, from raw materials to consumer. What a boost in brand and market
take domination as the company could set the price points controlling the
industry.
Related diversification is when a company moves into a market that has close ties
to the current market. (Strategic Management, 2014, Selecting Corporate-level
strategies, p. 256) Orion can use this diversification strategy to enter into the
animal wellness and insurance market. A move such as this would be pointed at
building the brand and increasing profits to allow lower price levels in areas such
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as generics. Using or recommending their own products will help the company
grow and could mean increased profits.
Orion is well position in the industry with the potential to gain market share
through various corporate level strategies if so desired. All of the strategies would
lend to increased revenues from competitors and other buyers, while Orion can
feasibly reduce cost on the larger more lucrative products, applying pressure to
competitors.
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Week 5 – LA2 – Stevens
Donna Stevens posted Feb 8, 2018 9:45 PM Subscribe
General Electric: Quantitative Strategic Planning Matrix (QSPM)
Below outlines the Quantitative Strategic Planning Matrix (QSPM) developed for
General Electric.
Key Internal Factors
Market
Development
Market
Penetration
Forward
Vertical
Integration
Acquisition
Internal Strength Weight AS TAS AS TAS AS TAS AS TAS
1. Ample wind
conditions
.05 – 0 – 0 – 0 – 0
2. Investor confidence .05 3 .15 2 .10 1 .05 4 .20
3. Funding .10 2 .20 2 .20 1 .10 4 .40
4. Brand recognition .15 3 .45 4 .60 3 .45 3 .45
5. Product portfolio .15 2 .30 3 .45 4 .60 4 .60
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Internal Weakness
1. Construction permit
wait times
.15 – 0 – 0 – 0 – 0
2. High investment
costs
.10 2 .20 1 .10 – 0 4 .40
3.
Landscape/environmental
impact
.10 1 .10 1 .10 – 0 – 0
4. Threat to animals in
the region (e.g. fauna)
.10 1 .10 1 .10 – 0 – 0
5. R&D pipeline .05 2 .10 2 .10 2 .10 3 .15
1.0
External
Opportunities
1. Wind .05 – 0 – 0 – 0 – 0
2. Implementing digital
technology (specifically)
.20 2 .40 1 .20 1 .20 1 .20
3. Improved turbine
designs
.10 3 .30 2 .20 2 .20 3 .30
4. Available
land/location resources
.05 – 0 – 0 – 0 – 0
5. Available technology
to support improvements
and efficiency (all other)
.10 3 .30 2 .20 1 .1 – 0
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External
Threats
1. Policy/Regulations .10 1 .10 1 .10 1 .10 1 .10
2. Environmental
Community Opposition
.10 – 0 – 0 – 0 – 0
3. Connectivity issues
to power grid
.10 – 0 – 0 – 0 – 0
4. Development of
smaller wind turbines
.10 2 .20 1 .10 – 0 – 0
5. Animals (e.g. birds) .10 – 0 – 0 – 0 – 0
1.0 2.9 2.55 1.9 2.8
Key factors and their associated weighted scores from the IFE and EFE matrices
were entered into the QSPM. An attractive score (AS) was assigned to each factor.
A score of 1 to 4 was given, with 4 being the most important. (MBA Tutorials,
n.d., para. 3). Dashes indicate no importance to the particular factor. The total
attractive score (TAS) was calculated by multiplying the weight by the AS. The
grand totals for each TAS is shown in the bottom row of the QSPM. The highest
weighted scores was for market development, at a TAS of 2.9. Acquisition was
second at 2.8, followed by market penetration and forward vertical integration, at
2.55 and 1.9 respectively. Therefore, market development was selected as the
optimal strategy.
Within the market development strategy, brand recognition (a strength), was one
of the highest weighted scores, at .45. External opportunities, such as
implementing digital technology (TAS .40), improved turbine design (TAS .30),
and making use of technology to improve efficiency (TAS .30), each align with
product development that can improve the company’s profitability. The
acquisition strategy, which came in a close second to the market development
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strategy, heavily relies on key strengths, particularly financial strengths as
depicted by TAS between .20 and .60.
When an industry, such as the wind turbine industry, is dominated by a few global
companies, there is less opportunity for companies to gain competitive advantage
through economy of scale based on its brand alone. (Hansen & Nohria, 2004,
para. 2). As a multinational corporation, GE can take advantage of a market
development strategy, by having its various business units collaborate in an effort
to increase capabilities Companies will fare well when they are able to developless
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Week 5 – LA1 – Stevens
Donna Stevens posted Feb 8, 2018 9:44 PM Subscribe
General Electric: Corporate-Level
Strategy
A focused differentiation generic business-level strategy was selected for General
Electric’s (GE) wind turbine business unit. Businesses that use this type of
strategy provide products and services to a narrow market. (Strategic
Management, 2014 p. 159). The market is considered narrow because customers
are specific to residential, commercial, and industrial. (Aghajani, Shayanfar,
Shayeghi, 2015, p.308).
Corporate-level strategies
Market penetration, a concentration strategy, is selected for GE. With this
strategy, GE will attempt to increase their market share with their existing wind
turbine products. (Strategic Management, 2014 p. 241, para. 2). GE currently
offers a full suite of wind turbines (GE, n.d. -a). Market development, described
as marketing existing products in new markets, is a useful strategy for GE,
because it will allow the company to save money on the research and
development (R&D) of new products. (Strategic Management, 2014 p. 242, para.
1). Cost savings can go toward improving existing products, such as making
select existing wind turbines more efficient. Forward vertical integration is
depicted as a company becoming the retailer. (Strategic Management, 2014 p.
254, para. 2). Using this strategy, GE will be able to make a higher profit by
selling their wind turbines themselves, versus having a retailer sell the company’s
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products. Another business-level strategy is horizontal integration, specifically
acquisitions, which depicts a company that purchases another company.
(Strategic Management, 2014 p. 245, para. 1) GE can acquire smaller, yet
relatively successful wind turbine businesses in order to corner the market share.
By acquiring other businesses, GE brand recognition can continue to benefit to
the company.
References:
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LA 2
Doriane Pierre posted Feb 8, 2018 9:37 PM Subscribe
Strategic Alternatives
Key Internal Factor Market Sustainability Market Alternatives
Internal Strengths Weight AS TAS AS TAS
Low energy consumption .20 4 .08 3 .6
Ballast Water Treatment
.10 3 .3 3 .3
Handling natural
resources responsibly
.12 3 .36 2 .24
Evaluation of company’s
stand point
.18 4 .72 3 .54
Always improving .18 4 .72 3 .54
Internal Weaknesses
High debt burden .010 1 .01 1 .010
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Unionized workforce
may result in work
Stoppages or slowdowns
.10 2 .02 1 .10
Falling rates .012 2 .024 1 .012
Decline in revenue .050 2 .1 1 .050
High competitive costs .048 1 .048 1 .048
1.00 2.38
Key External Factors
Opportunities
1. Technical
improvements in
Ship and marine
.21 4 .84 4 .84
2. Increase in
demand
.016 3 .048 3 .048
3. Economic
globalization/scale
.011 2 .22 3 .033
4. Bigger vessels with
growth
.18 4 .72 3 .54
5. Increase
shipments
.10 3 .3 3 .3
Threats
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1. Supply/demand
imbalance
.010 1 .01 2 .02
2. Container
trafficking
.13 3 .39 4 .52
3. Intense
competition
.20 4 .8 3 .6
4. Environmental
regulations
.143 2 .286 1 .143
1.00 3.85
Total Sum of
Attractiveness Score
6.23 5.48
The QSPM sum of attractiveness scores of 6.23 versus 5.48 indicates that
Hamburg Sud will sustain in the market.
These weights: were from the IFE and EFE matrices. Please review my previous
week’s discussion to see calculations.
Attractiveness Scores(AS): show the attractiveness importance of each factor to
their alternative strategy on a scale of 1 to 4 with 1 being least attractive and 4
being most attractive.
Total Attractiveness Scores: is weight X AS
Total Sum of Attractiveness Score: is the addition of all attractiveness scores in
each strategy column of the QSPM.
Looking ahead, it is believed that superior sustainability performance could
become one of the differentiating and value-adding factors in an industry where
companies historically have struggled with presenting a unique value proposition
beyond cost competitiveness. The sustainability strategy is important because:
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The industry transports more than one-third of the value of global trade
Provides more than 4.2 million jobs
And represents a huge social and environmental footprint (Peder & Pruzan, 2010,
3) H h ill h h i i i fless
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LA 1
Doriane Pierre posted Feb 8, 2018 9:33 PM Subscribe
As an internationally operating company, Hamburg chooses sustainability as its
main strategy and an indispensable component of each of its activities. The
corporate strategies used were:
1. Compliance
2. The use of reefer containers
3. The focus on environmental protection with a greener shipping industry
4. Fair competition
5. Privacy
6. Low energy consumption
Reasons and explanation of each alternative strategy:
The company’s goal is to safeguard the quality and environmental compatibility
of its services and to ensure their continuous improvement (Graumann, 2016,
P18). Therefore, it is imperative that the company stays in compliance to sustain.
Long-term corporate success can only be achieved if the relevant legislation
complies at all times. The company respects all laws on the national and
international level. It also ensures that corruption is combatted, and visioned a
maritime industry free of corruption. (PP-26-27)
The competitors are there to help drive new developments and improve
performance. Therefore, Hamburg strives to fair competition in order to go
forward.
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Hamburg Sud safeguards employees, customers, partners, and supplier’s
information to attain the sustainability strategy. To do so, the company complies
with all legal requirements, implemented an information security management
system in Germany which includes guidelines for data privacy and security.
Hamburg Sud is one of the top five providers of refrigerated containers
shipments. The company not only transport dry but also refrigerated containers.
Hamburg Sud goal is to reduce fuel and energy consumption while increasing
efficiency. As a result, the environment dividends will be paid and the company
will see an enhanced cost-effectiveness. The company energy consumption for
electricity and heating for 2014>2015 was recorded at 7.2 %( Graumann, 2016,
p40).
Besides what has mentioned above, the company also protect endangered species
and stabilizes trim with ballast water treatment system in all 41 ships in the
reporting period 2015.
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Week 5 Learning Activity 2 – beltre
Euriviades Beltre posted Feb 8, 2018 11:43 AM Subscribe
General electric has some strategic focus in the long-term investment strategy as
the alternative strategy to do the business. The possible alternative strategies are
sustainable living, increasing product management, active portfolio management,
focusing on innovation and enhancing the investment in emerging market and e-
commerce. As it makes progress toward concluding the monetization of its utility
wind technology, the company will be re-aligning its leadership to focus its future
on delivering business solutions for a range of distributed energy customers.
Increasing demand for small wind turbines owing to numerous environmental
benefits coupled with the economic reimbursements is predicted to provide an
impetus to the industry over the forecast period. The need to adopt renewable
energy is on the rise owing to a pressing need to control the carbon footprint
which demands convenient electricity generation option.
Reference:
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G.E. (2016, May 23). GE imagination at work. GE Expands Onshore Wind Portfolio
with North American Version of New 3.4 MW Wind Turbines. Retrieved
from http://www genewsroom com/press releases/ge expands onshore windless
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Week 5 Learning Activity 1 – beltre
Euriviades Beltre posted Feb 8, 2018 11:01 AM Subscribe
G.E. Corporate-level strategies
Culture and Values
GE’s strategy really does focus on culture and values. The company wants to
focus on the people, great people, and shape the company culture. His goal to
strengthen GE’s global presence and create a more collaborative culture. They
believe a company starts with culture. They want their people to improve every
day. They want to move, power, and cure the world. It’s important that investors
see they choices that they make so they create more value over time.
Leadership
The company has five-initiatives strategies: technical leadership, services,
customer focused, globalization, and growth platforms. These five initiatives are
important, and it has worked for their company and has proven that this is how
the company has been growing over the years. It beings with a small platform,
focusing the business model on growth initiatives, and focusing on their
financials and putting that towards growing the company as well. This makes
their lost investments as minimal as possible.
Globalization
GE is proposing to sell its windmill and turbines divisions to strengthen their
global presence. The CEO’s goal was to become better than the rest. Being the
number one competitor was important.
Company Threats
http://www.genewsroom.com/press-releases/ge-expands-onshore-wind-portfolio-north-american-version-new-34-mw-wind-turbines
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Human Resource could be one important threat to the company. GE is a big
company and with the size and the big amount of people, there could be a lot of
HR problems. The company focuses on culture and globalization. So, when they
make certain decisions, they could be offending someone which could cause
unhappiness to investors.
References:
GE ( d ) GE R bl E Wi d T bi O i R i dless
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Week 5 LA1 – Jared Ubben
Jared Ubben posted Feb 6, 2018 8:21 PM Subscribe
Company: GE Wind Turbines
Generic business-level strategy: Differentiation
The products in the wind turbine industry are all relativity the same. Because of
this, each company must use a business model “that is at least somewhat unique”
(Strategic Management, 2014, Leading Strategically, p. 138) to retain or acquire
customers. GE must use a generic strategy that sets their products apart from the
rest.
Using the differentiation strategy and producing tidal wind turbines that can be
used in oceans, GE is separating themselves apart from their competition. There
is a small number of suppliers and buyers in the industry and by offering the tidal
wind turbines it allows countries or cities that are located near large bodies of
water to use their one-of-a-kind products and generate more power as opposed
to the landlocked wind turbines.
Requirement 2:
1. Market Development – “Market development involves taking existing products
and trying to sell them within new markets” (Strategic Management, 2014,
Selecting Corporate-Level Strategies, p. 242). Using this strategy, GE can enter
smaller markets as it has reached a pinnacle of selling its large wind turbines to
governmental agencies, states and cities. If GE wishes to continue to reach as
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many customers as possible, it can move to selling a smaller version of its
turbines to neighborhoods where it would generate enough power to be used by
so many square miles of residents. This ties in to the differentiation strategy in
that entering markets that GE’s competitors aren’t in will set GE apart creating
differentiation and it will build GE’s brand name.
2. Product Development – “Product development involves creating new products
to serve existing markets” (Strategic Management, 2014, Selecting Corporate-
Level Strategies, p. 243). GE creates new turbines year after year and include a
total of 9 turbines in its lineup for customers to choose from. GE should keep
expanding its offering to include smaller turbines for smaller individual
customer/corporations to buy. An example would be a smaller turbine that would
power a cardboard manufacturing plant in order for the plant to save money on
their energy use.
3. Horizontal Integration: Mergers and Acquisitions – “Rather than rely on their
own efforts, some firms try to expand their presence in an industry by acquiring
or merging with one of their rivals” (Strategic Management, 2014, Selecting
Corporate-Level Strategies, p. 245). IF GE were to merge with a smaller
competitor it would be able to acquire the majority of its customers and at the
same eliminating the competition.
Differentiation involves having something to offer that your competitors don’t. By
eliminating smaller competitors, GE can reduce the intensity of rivalry (Strategic
Management, 2014, Selecting Corporate-Level Strategies, p. 245) and focus more
of its attention to differentiating from its larger competitors.
4. Strategic Alliances – “In a strategic alliance, firms work together cooperatively,
but no new organization is formed. The firm and its local partner or partners
share decision making authority, control of the operation, and any profits that the
relationship creates” (Strategic Management, 2014, Competing in International
Markets, p. 233). By creating a strategic alliance, GE can use the power of its
reputation in multiple countries. The alliance will involve keeping GE’s mission
and vision statements along with its values and utilizing the country’s resources
and knowledge of the foreign market and terrain. “Joint ventures and strategic
alliances are especially attractive when a firm believes that working closely with
locals will provide it important knowledge about local conditions, facilitate
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Week 5 LA2 – Jared Ubben
Jared Ubben posted Feb 6, 2018 8:22 PM Subscribe
Requirement 1:
Market Development
Strategic Alliances
Product Development
Horizontal Integration
Requirement 2:
See attached QSPM graph for my computations.
Results:
Market Development – 5.95
Strategic Alliances – 5.32
Product Development – 5.265
Horizontal Integration – 5.145
Requirement 3:
Based on the QSPM, the results for the four strategies are below:
Market Development – 5.95
Strategic Alliances – 5.32
Product Development – 5.265
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Horizontal Integration – 5.145
According to the QSPM, the optimal strategy for GE Wind Turbines to move
forward with is Market Development. This strategy involves “taking existing
products and trying to sell them within new markets” (Strategic Management,
2014, Selecting Corporate-Level Strategies, p. 242). Currently, large companies
like Amazon and Microsoft along with governmental organizations are the main
markets GE is selling their wind turbines in.
Keeping up with the larger markets as well as moving into smaller markets can
improve GE’s profits and strength in the industry. To interest smaller markets,
smaller turbines would need to be manufactured to fit the needs of these new
markets. That being said, there will need to be a crossover of product
development and market development that will supply the new markets. It won’t
be as cut-and-dry as simply selling GE’s current products in different markets.
The products will need to fit the demand the new market creates.
GE already has the technology to produce the large-scale turbines. Now, it would
be a simple restructuring that the company would undergo to add a new division
for smaller turbines and to properly market a smaller turbine to smaller markets.
The smaller market that neighborhood/community gardens has produced would
allow GE to start producing smaller versions of its current models to fit a smaller-
scaled market. This would open new markets and create more value for the
company. With GE already producing green energy products and the desire of
more and more people/companies wanting to go green, this is a great
opportunity for GE to extend its product line and service new markets.
Entering new markets is optimal for GE’s success as the current market will
become saturated with more companies as the clean energy sector grows. This
will force companies like GE to lower prices as more companies in the industry
will create competitive pricing. Being the first in the industry to provide small-
scaled turbines will create differentiation for GE. Using its brand power, GE can
enter a new market to provide new products to new customers that is critical for
its long-term success.
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Reference:
Strategic Management. (2014). Leading strategically. Washington, D.C.: The Saylor
Foundation
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Last post Wed at 12:29
PMby Patricia Quinones
Corporate Strategies
1 2 3 4
Market
penetration
Market
Development
Strategy
Related
Diversification
Retrenchment
Opportunities Weight AS TAS AS TAS AS TAS AS TAS
Green energy is
increasingly
more important
to consumers
12% 3 0.36 4 0.48 3 0.36 3 0.36
Patents on
technology
10% 1 0.1 1 0.1 1 0.1 2 0.2
Renewable
Energy Subsidies
14% 3 0.42 3 0.42 2 0.28 3 0.42
Market
placement
12% 3 0.36 4 0.48 2 0.24 3 0.36
Growth of the 10% 3 0.3 3 0.3 3 0.3 3 0.3
Learning Activity 2 – Josh Medley
Joshua Medley posted Feb 8, 2018 11:51 AM Subscribe
Week 5 Learning Activity 2
Acco
rdin
g to
the
QSP
M
Nort
hern
Pow
er
Syst
ems
woul
d
bene
fit
the
most
by
adop
ting
the
mar
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economy
Threats
Foreign Markets
changing Feed
in Tariffs (FIT)
12% 2 0.24 3 0.36 2 0.24 2 0.24
Large
Manufacturers
8% 2 0.16 2 0.16 2 0.16 1 0.08
Declining
Government
subsidies
8% 1 0.08 2 0.16 1 0.08 1 0.08
New technology
development
5% 1 0.05 1 0.05 1 0.05 1 0.05
Decrease in cost
of solar panels
9% 1 0.09 1 0.09 1 0.09 1 0.09
Totals 100% 2.16 2.6 1.9 2.18
ket
deve
lopm
ent
strat
egy.
The
mar
ket
deve
lopm
ent
strat
egy
had
the
high
est
scor
e
over
all
by
almost a half a point. Retrenchment was the next best strategy due to their debt,
but the positive outlook on the industry shows possible growth. Northern Power
could develop a marketing plan to reach a wider segment of the American and
European population to allow for brand name recognition. Many Americans do not
know a lot about the wind power industry. Increase marketing could allow for
increased awareness of the opportunities wind power offers. They currently do
not spend a lot on marketing due to cost cutting procedures (Corporation, 2017,
p. 21) Another way Northern Power could go about accomplish the market
development strategy by creating sales teams in areas they have not currently
reached yet (Strategic Management, 2014, Selecting Corporate-Level Strategies,
p. 242). Norther Power currently has limited sales offices located in
Massachusetts,Zurich, Switzerland, and Italy (Corporation, 2017, p. 8). There is
opportunity in creating regional sales offices within the United states and the rest
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of Europe. The regional offices could be minimally staffed with the reach back
capability at the headquarters. Another untapped possibility would be to work
with a community developer that build sub-divisions and have a wind farm
powered sub-division. Together they could build green communities that have
minimal reliance on standard power. The cost of the wind farm would be
dispersed among all the homes of the sub-division.
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Learning Activity 1 – Josh Medley
Joshua Medley posted Feb 8, 2018 11:49 AM Subscribe
In week four the IE Matrix suggested that market penetration and product
development would be the best course of action for Northern Power Systems.
Market penetration would consist of advertising or marketing their wind turbines
and service packages to reach a new segment of potential buyers (Strategic
Management, 2014, Selecting Corporate-Level Strategies, p. 241). This would be
one course of action for Northern Power to explore due to the fact that they have
a reliable product and there are segments of the American population that they
have not reached yet.
Northern Power Systems could also benefit from a market development strategy.
Northern Power could accomplish this by putting sales team in areas they have
not currently reached yet (Strategic Management, 2014, Selecting Corporate-Level
Strategies, p. 242). Another way to do this would be to work with a community
developer that builds sub-divisions and have a wind farm power the sub-division.
Northern Power could also explore related diversification. This is when a company
moves into a new market that shares similar aspects (Strategic Management,
2014, Selecting Corporate-Level Strategies, p. 256). Norther Power could move
into the solar panel market. This would allow their customers another renewable
energy source when there is no wind to provide power.
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The last strategy Northern Power could explore is retrenchment. This is when a
company decides to down size in order to save the organization (Strategic
Management, 2014, Selecting Corporate-Level Strategies, p. 265). Northern Power
has taken losses and could benefit from a reduction in costs until they become
profitable.
References
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Learning Activity 2 Ott
Justin Ott posted Feb 8, 2018 11:02 PM Subscribe
My activity is in the word document attached.
QSPM matrix ott x (95.89 KB)
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LA1 Week 5 Ott
Justin Ott posted Feb 8, 2018 11:00 PM Subscribe
The company I will be using for this activity in Maersk Line, which is the world’s
largest container shipping company (Why Maersk Line?, N.D.).The best generic
strategic strategy for Maersk Line would be differentiation which is a strategy
used to convince customers that paying more to use the company is worth the
extra money due to extra benefits received for the money (Strategic Management,
2014).
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The three business unit level strategies that I chose for Maersk Line to implement
in order to achieve differentiation are:
1.Make available to the customer the ability to schedule door step to door step
transport thru Maersk Line.
2. Include insurance guaranteeing the delivery day of the container
3. Electronic up to date tracking of shipping container available to customer
1.Make available to the customer the ability to schedule door step to door step
transport thru Maersk Line :
Currently no container shipping companies enable the customers the ability to
schedule pick up and drop off of shipping containers on their website. Currently
the shipper has to arrange the spot on the ship for the shipping container, and
then call one company to arrange the pick up of the container from its current
location to have it delivered to the port. They then have to schedule another
company to pick up the container at the arrival port and deliver it to its final
destination. If this could all be done in one place, it would save the customer time
while giving them greater tracking ability of their shipping container.
2. Include Insurance guaranteeing the delivery day of the container:
It is a common practice in the container shipping industry to offer delivery day
insurance to customers provided by outside companies at an additional cost. If
Maersk Line were to use their size to get a discount rate on the insurance cost
from one of these outside companies, they could offer the insurance included in
the cost of the shipment while passing the additional cost onto the consumer. The
inclusion of insurance would differentiate Maersk Line from the competition.
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3.Electronic up to date tracking of shipping container available to customer:
Customers of the container shipping industry are starting to require the ability to
track their containers more and more during transit. Maersk Line could implement
a tracking system similar to USPS to offer the consumer the ability to track the
container closely. It would notify the customer when the container was received at
the port, when it is loaded on the ship and then once the ship has left port. It
could also daily provide the customer of an approximate location of the ship
during transit. Once the ship arrives at its destination port, the container would
be scanned when it is removed from the ship and when it is ready for pick up.
This would allow the consumer to be able to closely monitor the container while
also being able to be implemented easily into systems that Maersk Line already
uses.
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Learning activity 2
Luis Vazquez posted Feb 8, 2018 10:22 PM Subscribe
Strengths Weight
AS
(Attractiveness
Scores)
TAS (Total
Attractiveness
Scores)
1. Good relation with employees
and customer 0.3 4 1.2
2. Strong team of management 0.2 3 0.6
3. Scientific leadership 0.3 3 0.9
Weakness
1. Little diversification 0.05 1 0.05
2. Saturated market 0.05 2 0.1
3. Disruptions in technology 0.1 2 0.2
Total 1 15 3.05
The strategy that will be chosen is distinctive advantages development. It is vital
to develop distinctive and effective competencies so that an edge is gained over
the competition. Requirements of market may alter in a regular manner because
new capabilities can be decided by the competitors to be developed. It is required
to recognize the distinctive competencies through analysis in a thorough manner.
The firm should be prepared to satisfy the new necessities vital for development
further. Competitive advantage can be led by distinctive competencies. Strategies
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of development of business that is most efficient and effective can be determined
by distinctive competencies. Sustainability of the company is brought by
distinctive competencies. If certain services or products are not offered by an
organization and intends to acquire sustainable advantage, then new problems
can be solved instead of resolving the identical problems again and again.
Learning occurs faster in comparison to other competitors when distinctive
advantage is developed. New necessities can be adapted and learned in a fast
manner in comparison to the competitors. The company can turn to be the
authority in their field of business (Strategic Management, 2014, Business-Level
Strategies).
References
Strategic Management (2014). Business-Level Strategies. Washington, D.C.: The
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Learning activity 1
Luis Vazquez posted Feb 8, 2018 10:21 PM Subscribe
Methods or plans used by the companies to conduct in business operations
various functions are represented by strategies of business-level. Strategies of
business-level are used often by companies to provide the employees, managers,
owners with guidelines to be followed when doing job in the business.
The three business-unit level strategies that should be selected for AstraZeneca
Company are mentioned below:
Coordinate Unit Activities: A common strategy of business-level can be
regarded as the coordination of all activities of the unit found in business.
Activities of unit can be stopped by individual positions of job, department
sections, and department. Coordination of such individuals or groups falls
usually on a supervisor or a manager. It is the responsibility of the manager
to bring employees and staffs on the same page and emphasize these
people on attaining objectives or goals. Responsibility may be there on the
supervisors or managers for resource allocation within many different
activities (Strategic Management, 2014, Business-Level Strategies).
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Distinctive Advantages Development: Distinctive competitive advantages or
core competencies must be developed for a successful company creation.
Singular abilities or activities used by a firm to manufacture better products
in comparison to another firm are represented by competitive advantages
and core competencies. Instances of this strategy of business-level can
consist of obtaining economic resources at reduced costs in comparison to
other firms, unique services or goods that other firms have not imitated,
highly effective and efficient resources of production, cost-effective chain
of supply for getting the goods quickly into the hands of the consumer
(“What Are the Different Types of Strategies in Business?”, 2018).
Human Resources Utilization: The human resources available in overall
economy and company should be utilized by companies. Some human labor
form is required by all firms almost to attain objectives and goals of the
business. A strategy of business-level is developed by companies to makes
sure that sufficient number of employees are present in the firm to
manufacture a specific services or goods output. The strategy of business is
responsible to make sure the right human labor type for operations of the
business. An analysis is included often to determine whether there is
requirement of unskilled or skilled labor to complete functions of business
(Strategic Management, 2014, Business-Level Strategies).
References
What Are the Different Types of Strategies in Business?. (2018). Bizfluent.
Retrieved 9 February 2018, from https://bizfluent.com/list-6603373-different-
types strategies business htmlless
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LA 1 – Mark Szymanek
Mark Szymanek posted Feb 7, 2018 11:59 AM Subscribe
GlaxoSmithKline (GSK) – UK based pharmaceutical company. Differentiation
Strategy.
Blue Ocean Strategy – Involves creating new markets instead of competing in
existing markets (Strategic Management, Supporting Business-Level Strategy,
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2014, p.187). A new market equals no competition. With no competition
consumers only have one option for a product. A company is free to rake in
profits and charge whatever price that consumers are willing to pay.
GlaxoSmithKline has the large budget and expansive facilities to design drugs for
new markets. Being the first to create a vaccine or medication for a previously
uncontrollable disease creates a market with no rivals to compete with. In the
pharmaceutical industry it would be wise to not get caught up in the publicity
surrounding price gauging for life saving medication that has brought the ire of
governments and citizens. But a new drug or vaccine created and priced
reasonably will still bring in large profits.
Footholds – This business level strategy is about claiming a small stake in a
market that the company has not competed in (Strategic Management, Supporting
Business-Level Strategy, 2014, p.186). Gaining a foothold, a company can slowly
build up name recognition amongst customers who were originally unfamiliar with
the brand. The foothold gives a point from which the company can continue to
take market share away from competitors. GSK can move into fields that it did not
previously compete in and go directly after its top rivals like Merck or Bayer.
Bricolage – bricolage is using available inputs to create something new (Strategic
Management, Supporting Business-Level Strategy, 2014, p.187). For GSK these
inputs could come from the many underexplored drugs whose development was
halted or from competitor’s drugs that are now available do to expiring patents.
The pharmaceutical industry is about trial and error. Using bricolage is a great
way to create something new out of something readily available.
References
Strategic Management. (2014). Supporting Business-Level Strategy. Washington,
D C Thless
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LA 2 – Mark Szymanek
Mark Szymanek posted Feb 7, 2018 12:00 PM Subscribe
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QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM) For GlaxoSmithKline
Key Strategies
Blue Ocean
Strategy
Foothold Bricolage
Key Factors Weight AS TAS AS TAS AS TAS
Strengths
R & D .25 4 1 4 1 4 1
Cash Flow .30 4 1.2 4 1.2 4 1.2
Employees .05 4 0.2 3 0.15 2 0.1
Weaknesses 0
Market Share .20 3 0.6 1 0.2 4 0.8
Diversification .10 2 0.2 2 0.2 2 0.2
Name
recognition
.20 2 0.4 1 0.2 2 0.4
1.0
Opportunities
Emerging
Markets
.15 4 0.6 2 0.3 2 0.3
Aging
Population
.05 3 0.15 4 0.2 2 0.1
Industry
Collaboration
.05 3 0.15 1 0.05 2 0.1
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Technology .15 3 0.45 3 0.45 2 0.3
Industry
Mergers
.10 3 0.3 3 0.3 2 0.2
Threats
Increased
Competition
.15 4 0.6 1 0.15 2 0.3
Govt.
Regulation
.15 1 0.15 4 0.6 1 0.15
Economic
issues
.10 1 0.1 2 0.2 2 0.2
Social Change .05 1 0.05 2 0.1 2 0.1
Price Pressures .05 2 0.1 2 0.1 2 0.1
1.0
Total Sum of
Attractiveness
Score
6.25 5.4 5.55
The Blue Ocean strategy is critical to GlaxoSmithKline’s ability to stay ahead of the
competition. The industry is fast paced. The difference in success can be which
company gets government approval to begin marketing and selling its new drug
first. Of GSK’s 27,889 billion pounds in sales in 2016, 4.5 billion of it was in new
pharmaceutical and vaccine sales (GSK, 2017, p.01 & 245). As the older drugs
lose patent protection it is important for GSK to develop new and better patented
drugs. Instead of focusing on the same areas, GSK can explore new markets that
are served by no known cures or vaccines.
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Strimvelis is a stem cell gene therapy to cure ADA-SCID, an immune deficiency
disorder, that became the world’s first approved gene therapy (Burke, 2016,
p.11). Along with gene therapy, GSK is investing early in bioelectronics.
Bioelectronics and gene therapy can revolutionize the way diseases are treated.
Gene therapy has the potential to eliminate previously incurable genetic diseases.
Bioelectronics has countless possibilities, one being the delivery of medicine to
targeted points in the body. There is no competition from any pharmaceutical
rivals. GSK can dominate an untapped market.
In 2008 Advair had $6 billion in sales, the following year the drug lost its patent
protection (Iskowitz, 2008, p.9). In 2016 increased generic competition reduced
Advair sales to 1.829 billion pounds (GSK, 2017, p.60). There are many generic
pharmaceutical companies that can replicate normal drugs. There are very few
that can copy bioelectronics or gene therapy offerings even without patent
protection. Blue Ocean strategy is the best option for GSK to distance itself from
not only generic manufacturers, but also major competitors like Pfizer and Bayer.
References
Burke, M. (2016, Jun 1). Gene therapy approval first. Chemistry & Industry. 2016,
Vol. 80
Issue 6, p11.
http://eds.a.ebscohost.com.ezproxy.umuc.edu/eds/pdfviewer/pdfviewer?
vid=0&sid=1d998e2a-4882-49c3-9d4f-ec3a7a040595%40sessionmgr4010
GSK. (2017, March 13). Annual Report 2016. p.01, 60 & 245. Retrieved from
https://annualreport.gsk.com/assets/downloads/2_GSK.AR.strategic.repo
rt.V5
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Week 5 Learning Activity 2
Mercidieu Delva posted Feb 5, 2018 12:52 PM Subscribe
QSPM for Northern Power system – Quantitative Strategic Planning Matrix
STRATEGIC ALTERNATIVES
1 2
Buy New Land and Fully Renovate Newly-
Build New Stores Owned Existing Competitors
__________________________________________________________________warehouse___
________________
Key Factors Weight AS TAS
AS TAS _______
Opportunities
A strong hold on the penetrated
markets because of saturated presence
as well as the product diversity. 0.10 4
0.40 1 0.40
The dealing and performance
criteria are standardized for all the
stores and no deviations are accepted. 0.10
– –
The company is placing special
emphasis on private brands. 0.08
– –
A number of new stores have
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originated especially within the last
two years. 0.05
3 0.15 1 0.15
An excellent temptation to patronize
their stores is given in the form of free
cooking classes; which is also a part of
their promotional strategy. 0.05
2 0.10 1 0.10
Potential market development
in international markets. 0.10 2
0.20 1 0.20
Standardized procedures through-
out all stores. 0.06
– –
Start dealing in private brands 0.06 –
–
Opening of new stores 0.15 –
–
Threats
The company is facing a number of
competitors like Labinal Power system, Custome Cable
Bi-Lo and Piggly Wiggly. 0.08
2 0.16 1 0.16
The product price being comparatively
high allows the competitors to gain a
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competitive advantage over price. 0.08
3 0.24 2 0.48
The global increase in labor, inventory
and operational cost. 0.04
– –
Labinal Power system is expanding globally,
while custom cable is just concentrating in
the same area. 0.03
4 0.12 2 0.24
The internet penetration of the
company is not strong enough to cope
with the changing trends. 0.02
– –
Total 1.00
Strengths
Currently ranked at #. 2 on Fortune’s
World’s Most Admired Companies list 0.02
– –
Ideal locations and number of the
stores at different demographic locations
having more than hundreds stores along with 4 Sabor
stores, 3 Green Wise Stores, 11 Pix
convenience stations, 7 cooking schools
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and 11 event planning locations. 0.10
– –
The company’s revenue is calculated
up to $ 24.3 billion with a net income of
almost $1.2 billion with the labor strength
of 146,500 employees and are successfully
organized through employee stock
ownership program. 0.07
4 0.28 2 0.56
Was ranked at number 9, in 2017, on
the Forbes list all over the world Largest
Companies. 0.03 –
–
The company has a positive
employee environment. 0.07
3 0.21 1 0.21
The company has its own
manufacturing units to the product
0.12 – –
Their huge numbers of locations are
concentrated in different country, according
to the population concentration. 0.08
2 0.16 1 0.16
The specialized salad networks of
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restaurants in England
by Norther Power system
0.06 2 0.12 1 0.12
The customer service provided by
the company is very organized and
responsive as well. 0.05
3 0.15 2 0.30
The company enjoys high returns
on its investments annually. 0.04
4 0.16 4 0.64
Weaknesses
The company has been involved
in litigation for certain gender
discrimination issues. 0.15
2 0.30 2 0.60
The market is limited to only
worldwide: such a good number of
stores should cover a number of country
instead of its saturation in selected country. 0.05
4 0.20 1 0.20
The company is not keeping pace
with growing information technology
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needs. 0.05
1 0.05 2 0.10
Product quality is compromised
which repels the consumers & establishes
a situation of mistrust. 0.03
3 0.09 2 0.18
Price range is not flexible & not
affordable to everyone. 0.04
3 0.12 2 0.24
Employees have to follow a
specific dress code. 0.02
– –
No variety of in store designs;
the same format is followed for
all stores. 0.02
– –
Total
1.00 3.21 5.04
Summary:
First, the qualitative strategic planning matrix (QSPM) is a tool used in
determining a business strategy. It is broken up into three stages to make the
most objective decision using as many facts as possible. The first step is to define
key strategic factors (which are, external opportunities & threats and internal
strengths and weaknesses) and annotate them. This information can be obtained
from your SWOT analysis, if you’ve already done one.
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Then, in the second step, once these factors have been determined and
annotated, a similar form of analysis is performed to objectively weigh the pros
and cons of each strategic factor in numerical form. By assigning a weight to each
key external (opportunities & threats) and internal (strengths & weakness) factor.
The third step is to examine the matrices and identify alternative strategies that
the organization should consider implementing and record them in the top row.
Grouping the strategies into mutually exclusive sets if possible.
Fourth, determine the attractiveness scores (AS) which indicate the relative
attractiveness of each strategy within a given set of alternatives. By asking
yourself the question “Does this factor affect the choice of strategies being
made?” the attractiveness score is determined individually. The range for the
attractiveness score is: 1 = not attractive, 2 = somewhat attractive, 3 =
reasonable attractive, and 4 = highly attractive. The meaning of attractive is that
the extent that one strategy, when compared to the others, enables the company
to either capitalize on the strength, improve on the weakness, exploit the
opportunity, or avoid the threat.
Step five is to compute the total attractiveness scores. This figure indicates the
relative attractiveness of each alternative strategy, considering only the impact of
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Week 5 Learning Activity 1
Mercidieu Delva posted Feb 6, 2018 9:13 PM Subscribe
Northern Power manufacturers the top-ten manufacturing firms. The larger
companies are likely more diversified than Northern Power Systems. High costs
associated with research and development, differentiated products, and
competition to bring in new customers all contribute to the competition in the
industry. They design their wind turbines with ought the need for a gear box,
because they tend to increase downtime and regular amount of maintenance
needed due to the additional moving parts.
Their strategy- They design their wind turbines with ought the need for a gear
box, because they tend to increase downtime and regular amount of maintenance
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needed due to the additional moving parts (2017, p. 16). This design is so
successful that they historically had licensed this technology to large wind turbine
manufacturers that do not produce. Much of the profits in the wind turbine
industry are concentrated in the ten largest firms. Vestas Wind Systems and
General Electric Energy are among the two largest firms in the industry. Norther
Power has started to implement a turn-key approach to their business. This
allows for differentiation due to the technical experts that are available to help
customers create “energy storage, micro-grid, and grid stabilization situations
Vertical integration- Vertical Integration refers to when firms get involved in the
elements of the value chain (Strategic Management. Selecting Corporate Level
Strategy, Buyers in the wind turbine have a fair amount of purchasing power
because they can turn to another company to purchase the same product. While
it cannot be certain, a buyer would presumably stick with one company once their
first purchases of wind power are mad
Merger/Acquisition- A merger or acquisition takes place when one company
purchases another. Usually a larger company buys a smaller company one
(Strategic Management, Supporting Business-Level Strategy, much of the profits
in the wind turbine industry belong to the largest companies who hold the most
patents. Altogether, there are steep barriers to entry which presents very little
threat to Northern Power Systems profitability.
Research and Development has been a core component to the NPS competitive
position in the market. NPS has been awards the R&D 100, AWEA Technical
Achievement Award which has resulted in a broad portfolio of intellectual
property, Norther Power Systems. is a tremendous strength that NPS market more
aggressively to capture its competitors? Which is the longevity of their product
displayed to the public where everybody I can see the truth.
Reference:
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Week 5 LA 2
Patricia Quinones posted Feb 6, 2018 1:04 PM Subscribe
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Glaxo Smith Kline (GSK) is the third largest pharmaceutical company in the world.
The company employs over 100,000 employees across 150 countries (GSK, 2017)
The companies’ headquarters are located in London, and the US corporate office
is located in Pennsylvania. GSK is constantly researching and developing new
products to improve the lives of their customers and this research differentiates
them from other organizations as GSK focus on chronic illness and Vaccines.
Recently the company took on the direction of a differentiation strategy.
Differentiation strategy refers to companies that compete based on unique
products and target a broad target market (Strategic Management, Selecting
Business-Level Strategy, 2014, p 148). GSK meets these criteria due to their R &
D in chronic illness and vaccines.
Below we take a look at the ) Quantitative Strategic Planning Matrix and how it
relates to the company and their decision in their strategic planning.
The Quantitative Strategic Planning Matrix is tool used to evaluate alternative
sets of strategies(Strategic Management, Supporting Business-Level Strategy,
2014,).
Internal
Strengths
WeightAs TAS As TAS AS TAS
Brand name .14 2 .28 2 .28 2 .14
Growth
earnings
.12 4 .48 3 .36 3 .36
R & D .15 4 .60 4 .60 3 .45
Global
presence
.11 1 .11 1 .11 1 .11
Innovation .12 3 .36 3 .36 2 .36
Internal
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Weakness
Increased
prices
.08 3 .24 2 .24 2 .24
Slow market .06 1 .06 1 .06 1 .06
Legal issues .08 1 .08 1 .08 1 .06
Expiring
patents
.06 3 .18 4 .24 3 .24
Needs new
market
.08 4 .32 4 .32 3 .24
1.00 2 2.71 2.65 2.26
Key External
Factors
Opportunities
Aging
population
.11 3 .33 3 .33 3 .33
Developing
countries
.09 1 .09 1 .09 1 .11
Increase in
chronic
disease
.07 2 .14 4 .48 3 .21
Emerging
Markets
.07 2 .14 4 .28 3 .21
Increasing .12 1 .12. 3 .36 1 .12
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demand for
healthcare
Strong sales
and
distribution
.04 2 .08 3 .24 2 .24
Threats
Political
Instability
.07 1 .07 1 .07 1 .07
Medicaid .09 3 .27 2 .18 2 .14
Inflation .09 1 .09 1 .09 1 .09
Regulation .08 1 .08 1 .08 1 .08
Patents .11 4 .44 2 .22 3 .33
Risk of failure
in products
.06 3 .18 4 .24 3 .18
1.00 2.03 2.72 2.11
Total Sum of
Attractiveness
Score
4.74 5.37 4.37
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Horizontal Integration (Merger/Acquisition )
A. As evidenced by the QSPM in the above GSK should merge/acquire a new
company.
A merger/acquisition is critical to the organizations future success based on the
fact that GSK consumer’s numerous products that will be coming off patent in the
next ten years (GSK, 2017) Through a merger or acquiring a company GSK would
gain the resources that can assist the company with innovative ideas to increase
their market in areas other than vaccines and respiratory illness by developing
new medications or capabilities to have their own generic pharmaceutical
company where they are able to produce their own generics. In order to remain
competitive replacing the upcoming patent medications with new medications on
patent is pertinent in the success of GSK. A merger or acquisition could be the
answer the company needs to develop these new generic medications.
B) As the aging population increases the need to develop more medications and
cures for diseases and conditions associated with age increases. Merging with an
organization increases both companies Research and Development program to
develop new products to serve the existing market of customers (Strategic
Management, Supporting Business-Level Strategy, 2014, p 243). A market of
customers that most pharmaceuticals/healthcare industries view as a challenge
due to the conditions associated with them such as cancer, dementia, increase in
the number of falls, obesity, and diabetes (Garza, 2016 ). Developing medications
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that are easier for older populations to take and be compliant is a marketing
strategy that the merger could primarily focus on.
C) Increasing demand for healthcare is increasing pharmaceutical needs for
patients. Aging populations along with improving economic standings in low
developing countries provides companies the opportunity to find a new market to
enhance pharmaceutical production. Aging populations brings about new
disease/illness that pharmaceutical companies must be prepared to tackle.
Collaboration between two organizations provides the opportunity to be the first
in this emerging market and therefore increasing the Research and Development
for these needs and providing the medications needed to ensure longevity for
patients.
The strategies above would provide GSK the differentiation strategy that the
company is seeking to improve their competitive edge in the pharmaceutical
industry. The company is presently holding down the middle position of the
pharmacy industry and their growth over the past few years has dropped. In
order to improve in the industry, the company must gain the advantage in the
pharmaceutical industry and the leading option is a merger. A Horizontal
integration is aimed at lowering cost while achieving great economies of scales
(Strategic Management, Supporting Business-Level Strategy, 2014, p 245).
Considering this strategy will provide GSK more resources in the industry while
also reducing the competition.
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Week 5 LA 1
Patricia Quinones posted Feb 6, 2018 12:55 PM Subscribe
Glaxo Smith Kline (GSK) is the third largest pharmaceutical company in the world.
The company employs over 100,000 employees across 150 countries (GSK, 2017)
The company’s headquarters are located in London, and the US corporate office is
located in Pennsylvania. GSK is constantly researching and developing new
products to improve the lives of all patients.
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Recently the company took on the direction of a differentiation strategy.
Differentiation strategy refers to companies that compete based on unique
products and target a broad target market (Strategic Management, Selecting
Business-Level Strategy, 2014, p 148). GSK meets these criteria due to their R &
D in chronic illness and vaccines. In order to achieve the generic strategy stated
above the company should consider the four corporate strategies below:
A) Blue Ocean strategy- The company is already competing with other
pharmaceuticals such as J & J , Bayer, and Roche in the Pharmaceutical Industry.
Through the blue ocean strategy, the company would create a new market instead
of competing in the existing one (Strategic Management, Supporting Business-
Level Strategy, 2014, p 187). The company focuses on pharmaceuticals to treat
chronic illness such as HIV, respiratory diseases and vaccines. By branching out
and developing cures for deadly disease such as Cancer, Lou Gehrig, or MLS
(multiple sclerosis) the company would be stepping into a new market, without
facing major competition.
B) Vertical integration- Vertical Integration refers to when firms get involved in
the elements of the value chain (Strategic Management. Selecting Corporate Level
Strategy, 2014 p. 249). An area that GSK could venture into would be the supply
chain area. By developing their own raw materials for the products they develop
could prove beneficial to the company by saving them money that the company
could apply to Research and Development of new blockbuster medications.
C.) Merger/Acquisition- A merger or acquisition takes place when one company
purchases another. Usually a larger company buys a smaller company one
(Strategic Management, Supporting Business-Level Strategy, 2014, p 187). GSK
produces a lot of brand medications and eventually the patents on these
medications will expire. If the company was to purchase a smaller generic
business or merge with another pharmaceutical company that maintains a generic
division, the company could produce their own generics when the patents
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expired, allowing the company to continue to profit off the medications they have
produced.
D) Restructuring (Divestment) refers to selling off part of a firm’s operations one
(Strategic Management, Supporting Business-Level Strategy, 2014, p 266), GSK’s
primary revenue is in the field of Vaccines and Chronic illness medications. In the
area of medications, there was little growth in the Cardiovascular, metabolic, and
urology products by the company over the past year(GSK, 2017). Considering
selling or reducing production in these areas could be beneficial to the company
due to little market growth therefore allowing the company to focus on
medications that are providing growth such as HIV and Respiratory.
Reference:
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PMby Sanh Tran
Learning Activity 1 – Leib
Rhonda Leib posted Feb 8, 2018 9:00 PM Subscribe
Hapag-Lloyd (HL) is a container shipping company serving a global market
(Hapag-Lloyd, n. d., About Us, para. 1). Because the shipping container industry
relies on economies of scale for profit (Rau & Spinler, 2016, p. 135), it was
determined that HL should follow the generic strategy of cost leadership to gain
market share. HL wants to carry as many containers per ship as it can to
maximize profit. This strategy allows HL to pursue a corporate-level market
penetration strategy by luring businesses away from HL’s competitors (Mastering
Strategic Management, 2014, Selecting Corporate-Level Strategies, p. 241) that
may be drawn to HL’s relative high level of service at a lower price. The BCG
Matrix, based on HL’s market share relative to the largest competitor, indicated
that HL had a small market share in a high growth industry and may be spending
more money than it is generating (Jurevicius, 2013, para. 9). HL recently ordered
new state of the art refrigerated container units to accommodate growing
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demand (Wackett, 2017, p. 52), and initiated a horizontal integration strategy by
acquiring United Arab Shipping Company (UASC) last year (Hapag-Lloyd, 2017,
Hapag-Lloyd and UASC Completes Merger, para. 1). The acquisition helps HL be
more efficient and lowers operating costs which is a necessary element of cost
leadership strategy (Mastering Strategic Management, 2014, Selecting Business
Level Strategies, p. 144). Opportunities exist for further acquisitions in the
saturated shipping container industry. The acquisition of UASC also enabled HL
to pursue a market development strategy because it opened new routes and ports
for HL (Mastering Strategic Management, 2014, Selecting Corporate-Level
Strategies, p. 242). The new markets in East Africa and the Middle East may be a
perfect fit for HL’s expanding refrigerated container shipping market. Another
strategy that HL should consider is a backward vertical integration strategy that
would allow it to take some of the bargaining power away from its suppliers
(Mastering Strategic Management, 2014, Selecting Corporate-Level Strategies, p.
253). If HL purchased the company that makes its refrigerated containers, for
example, it would have control over the cost of the units, lowering its operating
costs and further supporting its cost leadership strategy.
Hapag-Lloyd. (n. d.). About us. Retrieved from https://www.hapag-
lloyd.com/en/about-us.html#anchor_24ae92
Hapag-Lloyd. (2017, May 24). Hapag-Lloyd and UASC completes merger.
Retrieved from https://www.hapag-
lloyd.com/en/press/releases/2017/05/hapag-lloyd-and-uasc-complete-
merger.html
Jurevicius, O. (2013, May 1). BCG growth-share matrix. Retrieved
from https://www.strategicmanagementi20nsight.com/tools/bcg-matrix-
growth-share.html
Mastering Strategic Management. (2014). Selecting business level strategies.
Washington, D. C., The Saylor Foundation
Mastering Strategic Management. (2014). Selecting corporate-level strategies.
Washington, D. C., The Saylor Foundation
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Learning Activity 2 – Leib
Rhonda Leib posted Feb 8, 2018 8:58 PM Subscribe
Strategic Alternatives
Key Internal Factors
Market
Penetration
Market
Development
Horizontal
Integration
Vertical
Integration
Internal Strengths WeightAS TAS AS TAS AS TAS AS TAS
Large capacity fleet .3 4 1.2 4 1.2 2 .6 3 .9
Refrigerated cars .2 3 .6 3 .6 2 .4 1 .2
Online booking capability .1 3 .3 3 .3 3 .3 1 .1
Internal Weaknesses
Debt accumulation .1 2 .2 1 .2 1 .2 1 .2
Slow-steaming .1 3 .3 2 .2 1 .1 1 .1
Underutilized special cargo .2 2 .4 1 .2 1 .2 2 .4
1
Key External Factors
Opportunities
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Emerging economies .05 2 .1 4 .2 3 .15 2 .1
Rising freight
rates/increased margins
.15
4 .6 4 .6 3 .45 3 .45
Mergers, acquisitions,
alliances
.05
3 .15 3 .15 4 .2 3 .15
Demand for oil from Middle
East
.1
3 .3 3 .3 3 .3 2 .2
Increased global trade .15 3 .45 4 .6 4 .6 2 .3
Threats
Competitor mergers .1 1 .1 2 .2 4 .4 3 .3
Crowded ports .1 2 .2 3 .3 3 .3 1 .1
Market overcapacity due to
mega-ship increase
.1
2 .2 1 .1 4 .4 1 .1
Increased fuel costs .15 3 .45 2 .3 2 .3 3 .45
Trade embargos and
protectionism
.05
2 .1 3 .15 2 .1 1 .05
1
Total Sum of Attractiveness
Score
5.65 5.60 5.00 4.10
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The Quantitative Strategic Planning Matrix (QSPM) indicates that the strategy that
Hapag-Lloyd (HL) should move forward with is a market penetration strategy.
This strategy would require HL to gain additional market share utilizing the
resources it currently holds (Mastering Strategic Management, 2014, Selecting
Corporate-Level Strategies, p. 241).
HL is in a high growth market where economies of scale can lead to a competitive
advantage. One of HL’s internal strengths is its fleet capacity. HL recently
acquired United Arab Shipping Company as well as ordered over 7000 new
refrigerated containers to expand its container capacity (Hapag-Lloyd, 2017,
Investing in Growth Markets, para. 1). Increasing container capacity while
lowering rates will draw buyers to HL thus increasing its market share.
Lowering rates and increasing market share through market penetration also
creates a barrier to entry keeping new players from taking HL’s existing or
potential market share which may give HL a competitive advantage (Mastering
Strategic Management, 2014, Selecting Business-Level Strategies, p. 145).
Market penetration using HL’s current resources requires efficiency to keep costs
low. HL’s new fleet not only has greater container capacity to achieve economies
of scale but it is also more fuel efficient which further reduces HL’s transport cost
per container (Pearce & Harvey, 1990, p. 64).
Therefore, market penetration strategy best fits with HL’s current resources and
market position. Organizations that concentrate on products and distribution
channels that they know well minimize risk involved in growing market share
through market penetration (Pearce & Harvey, 1990, p. 67).
Hapag-Lloyd. (2017, September 15). Investing in growth markets: Hapag-Lloyd
orders 7,700 new reefer containers. Retrieved from https://www.hapag-
lloyd.com/en/press/releases/2017/09/investing-in-growth-markets–hapag-
lloyd-orders-7-700-new-reefer.html
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Mastering Strategic Management. (2014). Selecting business-level strategies.
Washington, D. C., The Saylor Foundation
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Act 2
Ronald Edhaya posted Feb 8, 2018 12:15 PM Subscribed
QSPM model
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Act 1
Ronald Edhaya posted Feb 8, 2018 12:13 PM Subscribed
From the previous analysis in week 4, EPW renewables best generic level strategy
is by using the leadership cost. The strategy was aimed at giving the company a
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Week 5 Learning Activity 1 –Mayer
Stephanie Mayer posted Feb 8, 2018 9:54 PM Subscribe
Based in Marseille, France, CMA CGM Group is part of the international container
shipping industry (CMA CGM, n.d.a). Uncovered from week 4, the generic strategy
direction for CMA CGM is differentiation. Focusing on differentiation means that
CMA CGM is competing based on uniqueness rather than price to appeal to a wide
audience (Strategic Management, 2014, Selecting Business-Level Strategies,
p.149).
To meet the generic differentiation strategy, CMA CGM must focus on the
following four corporate-level strategies: market penetration, product
development, horizontal integration, and related diversification.
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Market Penetration: Market penetration involves CMA CGM to try to gain
additional share of its existing markets by using existing products (Strategic
Management, 2014, Selecting Corporate-Level Strategies, p.241). This strategy
will rely on advertising and innovation to attract new customers. CMA CGM uses
its brand and power within the industry to build on this strategy. The CMA CGM
website clearly displays the importance of their unique offerings to its customers
and dedication to the community. Further advertising focusing on these efforts
could help to increase its customer base.
Product Development: To meet the generic strategy of product differentiation,
CMA CGM should focus on product development to gain competitiveness. CMA
CGM’s partnership with Infosys is expected to increase its differentiation as it will
bring a more flexible and innovative edge to the industry (CMA CGM, 2017a).
Additionally, bringing new technologies into its production system will help to
provide better customer service and reliability to gain customer loyalty and
increase brand power.
Horizontal Integration: Due to the vast number of shipping company options,
companies in the industry are finding cooperation and acquisition of smaller
companies to its benefit to remain in business. CMA CGM is a part of the OCEAN
ALLIANCE to help expand services to increase efficiency and reliability (CMA CGM,
n.d.b). The alliance and acquisition of smaller shipping companies helps to ensure
the CMA CGM brand and services are spread across the globe for more customer
outreach and potential for differentiation. For example, the acquisition of
Mercosul Line will strengthen services in South America where the market has
development potential for complementary services (CMA CGM, 2017a).
Related Diversification: CMA CGM can create even more diversification through its
Serenity services which offer simpler, faster, and customized solutions to increase
security of shipment transfer for businesses (CMA CGM, 2017b). At a higher cost
but advantage for businesses, Serenity is claimed to be a game changer for the
shipping industry, ensuring customers are notified when goods are damaged due
to natural disasters, and providing compensation rather than hoping a claim is
eventually approved and reimbursed (CMA CGM, 2017b). This differentiation
strategy promotes customer loyalty as customers can expect to be covered in
natural disasters, a rare advantage compared to most shipping industries.
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References
CMA CGM (n.d.a). About us. Retrieved from http://www.cma-cgm.com/the-
group/about-us/presentation
CMA CGM (2017a) CMA CGM to acquire MERCOSUL from Maersk Line. Retrieved
from http://www.cma-cgm.com/news/1653/cma-cgm-to-acquire-mercosul-
from-maersk-line
CMA CGM ( d b) OCEAN ALLIANCE A h d i ff i R i d fless
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Week 5 Learning Activity 2 –Mayer
Stephanie Mayer posted Feb 8, 2018 9:53 PM Subscribe
According to the weighted scores in the QSPM, CMA CGM should use the product
development strategy moving forward to achieve its generic strategy of
differentiation. Each score was self-selected based off the explanations of the
first discussion post for this week. To increase competitive advantage for future
success, CMA CGM should focus on strategies in the following order: product
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development, related diversification, market penetration, and then horizontal
integration.
Ranked as number three in the industry, horizontal integration ranked last as
CMA CGM already has a strong position as compared to others in the industry and
experiences a low threat of new entrants. Product development involves creating
new products to serve existing customers (Strategic Management, 2014, Selecting
Corporate-Level Strategies, p.243). Given the high ranking of the company
world-wide and its brand power, increasing customer service and increasing
customized solutions for customers, will help bring CMA CGM to the top. New
technologies into the production system will help to provide better customer
service and reliability to gain customer loyalty and increase brand power, while
increased services such as through Serenity will offer simpler, faster, and
customized solutions to increase security of shipment transfer for the monetary
benefit of businesses to maintain customer loyalty and recommending CMA CGM
to business partners (CMA CGM, 2017).
References
CMA CGM (2017). Serenity by CMA CGM. Retrieved from https://www.cma-
cgm.com/static/Communication/Attachments/CMA%20CGM%20-
%20Serenity%20Brochure%202017
Strategic Management (2014) Selecting corporate level strategies Washingtonless
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tbream LA1
Tiffany Bream posted Feb 8, 2018 2:29 PM Subscribe
The company that I have chosen to research and analyze for the weekly learning
activities is the international container shipping company A.P. Moller- Maersk
Group.
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This company is based In Copenhagen, Denmark, and is worth roughly 40.3
billion in USD (A.P. Moller- Maersk, 2017, p. 1). Maersk is the largest container
shipping company in the world today. After through research A.P. Moller- Maersk
Group is best suited to use the Focused Cost Leadership strategy to stay ahead of
the competition.
Focused Cost Leadership strategy is they strategy in which companies offer lower
prices in among a narrow target market. To supplement this strategy the four
corporate level strategies that will help A.P. Moller-Maersk to achieve the focused
cost leadership strategy are; Related Diversification, Backward Vertical
Integration, Horizontal Integration, and Product Development (Strategic
Management, 2014, pp. 244-256).
There are companies that produce and manufacture shipping containers, A.P.
Moller Maersk should use the strategy of related diversification to purchase these
companies to broaden their market. This strategy would also allow the shipping
mogul to employ backward vertical integration. This should involve A.P. Moller-
Maersk investigating and slowly getting into the supply chain of their containers,
i.e. the steal, and the manufacturing. Horizontal integration will help A.P. Moller-
Maersk to be a tougher competitor by acquiring small shipping companies that
center on eastern nations, as A.P. Moller-Maersk is based in Denmark. With the
previously stated strategies A.P. Moller-Maersk should start to enter product
development. The company has started to in small numbers already with the
invent of more efficient refrigerated containers (A.P. Moller- Maersk, 2017),
however they should develop more.
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Last post yesterday at 3:05
PM by Mercidieu Delva
tbream LA2
Tiffany Bream posted Feb 8, 2018 2:28 PM Subscribe
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LA 1 – Alternative Strategy
Umekus Watts posted Feb 8, 2018 11:40 PM Subscribe
Moog Inc. (Moog) is a provider of high performance precision motion and fluid
control products. It offers integrate systems for industrial automation market;
apart from providing solutions for power generation applications, which allow for
greater safety and precise control of guide vane positioning on wind turbines.
Moog is a manufacturer of industrial machinery that seek to achieve higher
productivity, premium-quality products, and maximum energy efficiency, all at
less cost. A multi-billion dollar company servicing on the cutting edge of
precision motion technology. (Moog, 2017).
Moog currently operates on a focused cost strategy, due to the growing
competition in the wind power industry. Basing their marketing on what they
consider to be higher quality and more proficient products. In order for Moog Inc.
to maintain its competitive edge it should consider implementing the corporate
level strategies discussed below.
Concentration strategy would be one option to consider. These strategies
involve trying to compete successfully only within a single industry. There are
three different concentration strategies, market penetration, market development,
and product development (Management, 2014). Under this strategy Moog could
market its new products that maximize wind turbine performance to complete
electric and hydraulic pitch control systems. Offering more reliable solution
needed by the wind turbine manufactures and operators, all while increasing their
bottom line.
Horizontal Integration would be another strategy that could be utilized to
increase the company strategic position. Under this strategy, rather than rely on
their own efforts, the company could try to expand their presence in an industry
by acquiring or merging with one of their rivals (Management, 2014). By merging
with rival companies such as Honeywell and Curtiss-Wright, they could become
moguls in the wind industry and become the sole provider of wind energy by
driving down cost and out producing any of the remaining competitors. This
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strategy would be a risk if Moog was to decide to return to a single source
business.
Backward Vertical Integration is also an option for this company. A backward
vertical integration strategy involves a firm moving back along the value chain
and entering a supplier’s business (Management, 2014). By creating subsidiaries
that would provide key inputs to the purchases of raw material, such as steel,
titanium, and nickel, they could ensure they are getting the lowest prices and are
not receiving material of an inferior quality (Moog, 2017).
The diversification strategy is the final option they could apply to the business
strategy. This involves entering an entirely new industry. Today, Moog motion
control technology enhances performance in a variety of markets and applications
ranging from commercial aircraft cockpits, to power generation turbines, Formula
One racing, and medical infusion systems (Moog, 2017). With such a wide range
of capability it would seem to could shift directions with their products and
service and still meet the demand of any new market they decide to venture into.
The name Moog carries the expectation of quality and would help the industry to
compete in any relative growing market.
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LA 2- QSPM
Umekus Watts posted Feb 8, 2018 11:37 PM Subscribe
A QSPM provides a framework to prioritize the strategies, it can be used for
comparing strategies at any level such as corporate, business and functional. It
integrates external and internal factors into the decision making process, can be
developed for small and large scale profit and non-profit organizations. It is only
as good as the information and matching IEF/EFE data upon which it is
based (Management, 2014). The attached QSPM indicates that Moog Inc.
alternative strategy should be based on an Horizontal Integration. With final
attractive score of 4.90, it came in above Product development (4.65) and
Backward Vertical Integration (3.30). By merging with it lead competitor it could
increase it profits along with gaining a wider customer base and producing higher
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quality products. Positioning themselves to become a global supplier of wind
power generation and securing the industry market (Moog, 2017).
Works Cited:
Management, S. (2014). Selecting Corporate-Level Strategies. Washington, D.C.:
The Saylor Foundation.
Moog. (2017). Moog Inc. Retrieved from Welcome to Moog
Careers: http://www.moog.com/content/sites/global/en/about-us.html
Key Internal Factors
Product
Development
Horizontal
Integration
Backw
Vert
Integr
Internal Strength Weight AS TAS AS TAS AS TAS
Reliable suppliers 0.20 4 0.80 3 0.60 2 0.4
High level of customer
satisfaction
0.10 3 0.30 2 0.20 –
Strong brand portfolio 0.15 2 0.30 4 0.60 –
Strong cash flow 0.10 1 0.10 3 0.30 4 0.4
Internal Weakness
Limited success outside core
business
0.15
– 3 0.45 –
Low investment in new
technology
0.10
4 0.40 4 0.40 2 0.2
Gap in product range sold by 0.10 3 0.30 3 0.30 –
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company
Organization structure not
compatible with present
business
0.10
– 3 0.30 3 0.3
1.00
Key External Factors
Opportunites
New technology 0.10 4 0.40 2 0.20 3 0.3
New market 0.10 4 0.40 4 0.40 3 0.3
New environmental policies 0.15 3 0.45 2 0.30 4 0.6
Economic rise/increase 0.05 4 0.20 3 0.15 3 0.1
Threats
Increasing competition 0.10 4 0.40 1 0.10 2 0.2
Liability laws 0.10 1 0.10 2 0.20 3 0.3
New technology by competitor 0.10 4 0.40 3 0.30 –
Imitation or counterfeit parts 0.05 2 0.10 2 0.10 3 0.1
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Learning Activity #1 – Valerie Siebold
Valerie Siebold posted Feb 8, 2018 12:51 PM Subscribe
Based on the results of the internal and external analysis, Grindeks would benefit
the most from the focused differentiation strategy. This type of strategy involves,
“offering unique features that fulfill the demands of a narrow market (Strategic
Management, 2014a, Selecting Business-Level Strategies, p. 159).” One
advantage of this type of strategy is being able to charge a higher price for a
higher quality, and more natural, alternative to competitor’s medicine. A second
advantage of this type of strategy is the gain of expertise from the in-depth
research and development of the biologics medicine.
Below are four corporate-level strategies Grindeks should use to achieve the
focused differentiation:
1. Product development strategy: involves, “creating new products to serve
existing markets (Strategic Management, 2014b, Selecting Corporate-Level
Strategies, p. 243).” This type of strategy will expand the offerings of
medicine by going beyond the traditional forms. Producing higher quality
forms of medicine will appeal to customers who are concerned about the
chemicals they are ingesting.
2. Horizontal integration strategy: involves acquiring or merging with a rival to
expand its presence in an industry (Strategic Management, 2014b, Selecting
Corporate-Level Strategies, p. 245). This type of strategy will lower the
costs of research and development because of the knowledge obtained
from competitors that are already developing these new biologic
medicines. It will also lead to a more profitable industry because the rivalry
will not be as intense. Finally, it will provide, “access to new distribution
channels (Strategic Management, 2014b, Selecting Corporate-Level
Strategies, p. 246).”
3. Transnational strategy: involves, “balancing efficiency with the need to
adjust to local preferences within various countries (Strategic Management,
2014c, Competing in International Markets, p. 228).” This type of strategy
will offer the same basic options for common diseases and ailments in every
country. However, it will also focus on adjusting some medicines based on
the needs of the local community in each market.
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4. Related diversification strategy: involves, “moving into a new industry that
has important similarities with the firm’s existing industry (Strategic
Management, 2014b, Selecting Corporate-Level Strategies, p. 256).” This
type of strategy will lead to expansion into the organic field of medicine.
More and more consumers are looking for organic solutions to support a
healthier lifestyle.
References:
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Learning Activity #2 – Valerie Siebold
Valerie Siebold posted Feb 8, 2018 12:54 PM Subscribe
The QSPM Matrix is a tool that will be used to analyze the following four
corporate-level strategies: Product Development, Horizontal Integration,
Transnational and Related Diversification.
Below is the QSPM Matrix:
QSPM Matrix
Below are the steps used to develop the QSPM Matrix:
First, the attractiveness score (AS) is determined by examining each factor and
asking the question, “Does this factor affect the choice of strategies being made?”
(Quantitative Strategic Planning Matrix, n.d., para. 7). If so, then that factor is
rated in a range between 1 – 4. The definition of each number is: (1) = not
attractive, (2) = somewhat attractive, (3) = reasonably attractive and (4) = highly
attractive.
Second, the total attractiveness score (TAS) is the product of multiplying the
weights by the attractiveness score (AS) in each row (Quantitative Strategic
Planning Matrix, n.d., para. 8). The TAS indicate how attractive the strategy is
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based on the specific external or internal factor. The higher the TAS, the more
attractive that strategy becomes to the organization’s success.
Finally, determine the sum TAS by adding the scores in each strategy column.
The strategies with the higher scores are the more attractive strategies. In this
case, the strategy with the highest score is the product development strategy.
The product development strategy will create a presence in the biologics market
and provide expansion in market share growth. It will also utilize the strength of
the research and development team. Lastly, it will capitalize on the opportunity
to expand globally.
Reference:
Quantitative strategic planning matrix (QSPM). (n.d.). Retrieved from
http://www.mba-tutorials.com/strategy/230-quantitative-strategic-planning-
matrix-qspm.html
QSPM Matrix (45.37 KB)
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Week 5 Learning Activity 2
Yudi Carmona posted Feb 8, 2018 9:31 PM Subscribe
Week 5 Learning Activity 2
The QSPM matrix is normally used in the third stage of a strategy formulation,
which is known as the “decision stage” (MBA Tutorials, n.d., Quantitative Strategic
Planning Matrix (QSPM), para. 2). This tool helps organizations identify and select
one best strategy (MBA Tutorials, n.d., Quantitative Strategic Planning Matrix
(QSPM), para. 2). For Roche, the following four alternative strategies have been
identified: 1) market penetration, 2) market development, 3) product development
4), and horizontal integration. The QSPM will be used to compare and contrast the
weighted scores for the whole pool of strategies, and to identify the optimal
strategy for Roche. The following steps were taken to compute the QSPM and
identify the best strategy:
Step 1: The information from the EFE and IFE matrix from week 3 was used to
conduct this analysis.
Step 2: The weights from the EFE matrix and IFE matrix from week 3 were also
used for each external and internal factor in the QSPM.
Step 3: The four selected alternative strategies (market penetration, market
development, product development, and horizontal integration) were put in the
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top row of the QSPM.
Step 4: The Attractiveness Score (AS) was determined for each strategy by using a
score range of 1 to 4. A dash was used to indicate when a key factor does not
affect the alternative strategies (MBA Tutorials, n.d., Quantitative Strategic
Planning Matrix (QSPM), para. 7).
Step 5: The Total Attractiveness Scores (TAS) was computed by multiplying the
weights of each factor by the Attractiveness Score (AS) (MBA Tutorials, n.d.,
Quantitative Strategic Planning Matrix (QSPM), para. 8).
Step 6: The Sum Total Attractiveness Score was computed in each strategy. The
Sum Total Attractiveness Scores revealed that the product development strategy is
the most attractive.
The QSPM sum total attractiveness scores of 5.66 indicates that Roche should
focus on the product development strategy. The product development strategy is
the most critical to Roche, as it will secure the company’s future success. The EFE
matrix shows that the most important external factor to Roche is “Technology
innovations” as indicated by a 0.20 weight. New technologies will allow Roche to
develop new drugs and therapies. It was also determined that Roche is doing
pretty well taking advantage of external opportunities and avoiding the threats
facing the company. The IFE matrix shows that the most important internal factor
to Roche is “Biological products” as indicated by a 0.20 weight. Roche’s future
success will depend on the development of biological products. Luckily for Roche,
the factors “Technology innovations” and “Biological products” are a perfect
combination for its product development strategy. Additionally, under the product
development strategy, these two critical factors both received an Attractiveness
Score of 4 and a Total Attractiveness Score of 0.80. This ultimately indicates that
the product development strategy is the best choice for Roche.
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EFE – Key
External
Factors
Opportunities Weight Rating Weighted
Score
Technology
innovations
0.20 4 0.80
Increased of
life
expectancy
0.07 1 0.07
New
treatments in
oncology
0.10 3 0.30
Strategic
agreements
with African
countries
0.15 4 0.60
References:
MBA Tutorials. (n.d.). Quantitative Strategic Planning Matrix (QSPM). Retrieved
from
http://www.mba-tutorials.com/strategy/230-quantitative-strategic-planning-
matrix-qspm.html
EFE (External Factor Evaluation)
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Growing
environmental
agenda
0.05 3 0.15
Threats
Demographic
changes
0.07 3 0.21
Pressure on
drug pricing
0.13 3 0.39
Increase
litigation
0.09 3 0.27
Fluctuations
in currency
exchange
rates
0.04 1 0.04
Uncertainties
in the
discovery,
development
or marketing
of new
products
0.10 2 0.20
Totals for EFE 1.0 (Leave this
cell blank)
3.04
IFE (Internal Factor Evaluation)
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IFE – Key Internal Factors
Strengths Weight Rating Weighted Score
Highly skilled employees 0.15 3 0.45
Differentiated products
and services
0.10 3 0.30
Robust portfolio 0.13 3 0.39
Biological products 0.20 4 0.80
Pipeline 0.10 4 0.40
Weaknesses
Outdated technology 0.05 2 0.10
Product replication 0.10 1 0.10
Patent expiry 0.07 2 0.14
Metabolic/cardiovascular
area
0.05 1 0.05
Cost structure 0.05 2 0.10
Totals 1.0 (Leave this cell
blank)
2.83
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Strategic Alternatives
Key Internal Factors
Market
Penetration
Market
Development
Product
Development
Horizonta
Integratio
Internal Strengths WeightAS TAS AS TAS AS TAS AS TA
Highly skilled employees 0.15 3 0.45 3 0.45 4 0.60 2 0
Differentiated products 0.10 4 0.40 4 0.40 4 0.40 2 0
Robust portfolio 0.13 4 0.52 4 0.52 4 0.52 3 0
Biological products 0.20 3 0.60 3 0.60 4 0.80 3 0
Pipeline 0.10 1 0.10 1 0.10 4 0.40 1 0
Internal Weaknesses
Outdated technology 0.05 3 0.15 3 0.15 1 0.05 3 0
Product replication 0.10 2 0.20 1 0.10 2 0.20 2 0
Patent expiry 0.07 1 0.07 1 0.07 1 0.07 3 0
Metabolic/cardiovascular 0.05 1 0.05 2 0.10 2 0.10 2 0
Cost structure 0.05 2 0.10 1 0.05 1 0.05 2 0
1.00
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Key External Factors
Opportunities
Technology Innovations 0.20 2 0.40 3 0.60 4 0.80 3 0
Increased of life
expectancy 0.07 2 0.14 3 0.21 4 0.28 3 0
New treatments in
oncology 0.10 2 0.20 2 0.20 4 0.40 4 0
Strategic agreements in
African countries 0.15 1 0.15 4 0.60 3 0.45 3 0
Growing environmental
agenda 0.05 – – – –
Threats
Demographic changes 0.07 2 0.14 2 0.14 2 0.14 2 0
Pressure on drug pricing 0.13 2 0.26 2 0.26 1 0.13 4 0
Week 5 Learning Activity 1
Yudi Carmona posted Feb 8, 2018 9:28 PM Subscribe
Week 5 Learning Activity 1
Roche is the world’s largest biotech company and a world leader in the in
vitrodiagnostics business. The company has a 120-year history of advancing the
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field of medicine and bringing novel treatment and diagnostics to patients (Roche,
n.d., annual report 2016,). Roche is focus in developing breakthrough medicines
and improving care across oncology, immunology, infectious diseases,
ophthalmology and neuroscience (Roche, n.d., annual report 2016, p.1). Roche
mainly concentrates on prescription medicines and in vitro diagnostics, rather
than generics, over-the-counter medicines and medical devices (Roche, n.d.,
annual report 2016, p. 6). Because of this reason, it has been determined that
Roche’s generic strategy is differentiation. It has also been determined that
Roche’s business-level strategy is the first-mover advantage.
When selecting Roche’s corporate-level strategies, one of the main objectives was
to determine if the company should remain within its present market or should it
venture into new markets. Considering that Roche highly concentrates in medicine
and diagnostics, it was determined the firm should continue to compete within its
present market. For this reason, the following four corporate-level strategies were
identified: 1) market penetration, 2) market development, 3) product development
4), and horizontal integration.
Market Penetration: As noted above, Roche is the world’s largest biotech company
and a world leader in the diagnostics business. Focusing on a market penetration
strategy will allow Roche to gain additional share within its existing market by
taking advantage of its existing products. Through advertisement, Roche will be
able to take market share away from its competitors.
Market Development: This strategy involves taking existing products to new
markets (Strategic Marketing, 2014, selecting corporate-level strategies, p. 242).
Another example of market development is when a firm enters new geographic
areas (Strategic Marketing, 2014, selecting corporate-level strategies, p. 243).
Roche should continue to concentrate in expanding its physical presence.
Although Roche is already present in 6 regions of the world, the company can
further expand presence within each of those regions or other parts of the world
(Roche, n.d., annual report 2016, p. 2.) Sub-Saharan Africa is a region that does
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not have adequate access to medicine (Roche, n.d., annual report 2016). Roche
should implement a strong Africa strategy so it can increase access of its existing
and new treatments for HIV.
Product Development: This strategy deals with the development of new products
for existing customers (Strategic Marketing, 2014, selecting corporate-level
strategies, p. 244). Roche is recognized for its innovative approaches in medicine
and diagnostics. If Roche wants to continue being a market leader in the
pharmaceutical industry, it will need to continue focusing on its innovative
structure. Roche can continue building innovation through research and
development, strategic partnerships, its workforce, and innovative technologies
(Roche, n.d., annual report 2016, p. 7).
Horizontal Integration: This strategy helps firms expand by acquiring or merging
with their rivals (Strategic Marketing, 2014, selecting corporate-level strategies,
p. 245). Roche is well known for its mergers and acquisitions. The company will
need to continue this strategy in order to get exposure of any new medicine and
diagnostics developments. Roche recently acquired Ignyta in order to expand its
portfolio of oncology medicines (Roche, 2017, media release, para. 3). Future
mergers and acquisitions will create opportunities for Roche in the
pharmaceutical industry.
References:
Roche. (n.d.). Annual report 2016. Retrieved from
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