Journal Entry (Week 15)- Madonna

Questions

• Why has this artist been so successful? What are her key sources of sustainable competitive advantage?
• What strategy directions could the artist pursue over the next ten years to continue her commercial success?

Fierce Madonna reigning queen of Pop

Madonna as the name strikes is a queen of pop and will always reign as one. Her ability to generate music for any era be it back at 80's, 90's or today, she is a sensation when it comes to music. Her chameleon like character allows her to adapt and create songs that becomes hit. She is even able to transform her image and portrayed in public allowing her to gain array of fan. What is portrays becomes the trend, bringing in fashion to her followers and business to sellers.
Moreover, she has not just been fixated to Music all her life. Her involvement in other arena's of entertainment industry like going on tours, becoming a style icon, a best seller for child book all contributes to her ability to sustain in the competitive environment.

Onstage charisma, A leader

Strategic direction for Madonna

Adapted from Ansoff Matrix,1957

References:

Ansoff, I.: Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5,Sep-Oct 1957, pp. 113-124

Madonna concert Image. Inn at false creek. [Online]Available at: http://www.innatfalsecreek.com/controls/FckEditor/editor/filemanager/userfiles/Madonna-Concert-images-10-774587.jpg

Madonna hard candy concert. Just jared. [Online] Available at: http://cdn02.cdn.justjared.com/wp-content/uploads/2008/05/madonna-concert/madonna-hard-candy-concert-05.jpg [Accessed on: 7th March, 2013]

Journal Entry (Week 14)- Virgin Group

Questions

1. What type of corporate parent is Virgin (portfolio manager, synergy manager or parental developer)? 
2. How does the Virgin Group, as a corporate parent, add value to its businesses? 
3. What’s the logic of portfolio? Why do you think they are in mobile telephony, travel, financial services, leisure, music, holidays and health & wellness? 
4. What are the main risks facing Virgin Group as a result of their strategy? How might they be reduced? 

Virgin, a Parental Developer

Virgin is a parental developer. It seeks to employ its own competence to add value to its businesses. In the context of virgin, it uses its strong brand name as a promise of good value on each business the group enters into.

Synergy manager transfers capabilities between its business units. However, parental developers use their own resources and competence to enhance the potentials of business units.

Portfolio managers manage portfolio of businesses. However, Virgin varies from portfolio managers because they have the authority to intervene and introduce changes unlike in portfolio managers.



Value adding activities

Some of the value adding activities are:

• Brand image 

Virgin is an internationally respected brand. As stated in the case study, when virgin gives its name to a new business, it promises along quality, innovation, value and customer satisfaction. This brand image is a result of Richard Branson’s high profile.

• Flat Management structure 

Empowerment of each business unit to run their own affair, authority to device solutions for problems in the group depicts common goal, value and shared interest. This allows for continuous growth and autonomy.

• Diversification, creating partnership and joint venture 

Virgin has reduced its risk by partnering with others and combining skills, knowledge, and operational expertise from a range of industries to build exciting and successful companies.

Virgin group's Logic

Logic behind portfolio is determined by understanding which SBU's to invest in. Virgin targets businesses in growing phases. Let us view the Logic behind Virgins portfolio with the help of BCG and GE matrix

Major Risks for Virgin group

Financial Safety Net:

Virgin previously seemed to rely on the profits of Virgin Atlanta, it's airline company. It made profits of GBP 60 million in fiscal year 2008/09. However, due to deregulation and increase in competition ( British airways), it reported loss of GBP 132 million in 2009/10. Hence, it is essential to understand that these industries are cyclical in nature meaning even such industries face loss at times.


Empire building

Virgin Rail was voted among the most unpopular rail operator i.e. 24/25. This had serious effect on the popularity of the Virgin Brand and on the reputation of Sir Richard Brandson. The image that Virgin wanted to reflect "The best in the class" did not quiet fit what was happening to Virgin rail. Therefore it is essential to understand that just stacking up an empire in the name of a BRAND is not good enough. It is essential to live up to the expectation of what is promised to be offered because public opinion is a delicate matter.


References:
About Virgin, Virgin.Available at: www.virgin.com/about-us [Accessed on 1 March,2013]

Virgin Atlantic confident of prospects despite big FY2009/10 loss, CAPA center for aviation. Available at: http://centreforaviation.com/analysis/virgin-atlantic-confident-about-future-prospects-despite-big-fy200910-loss-32681 [Accessed on 2 March, 2013]

Virgin history, Virgin.Available at: www.virgin.com/virgin-history [Accessed on 1 March,2013]

Group Video on Apple inc.

http://www.youtube.com/watch?v=92yhVGLaMgQ&feature=youtu.be

Journal Entry (Week 10) - Internal and External strategic analysis

Questions:

1. In your own words and using referenced quotes describe what is meant in strategy by Organizational Purpose‘ and describe what is meant by Corporate Social Responsibility?

2. Should organization focus more on profit and shareholder satisfaction or responsibility and stakeholder satisfaction? Discuss your own thoughts but try to support your ideas with theory or examples 

3. Write about your experience with today‘s case study. What answers did you give to the questions? What did you think of the CEO?

Organizational purpose can be defined as the core reason why the company exists. It compromises of organizational belief, values and their business definition. When an organization aligns its organizational strategy with their organizational purpose, it is called strategy by organizational purpose. Such organizations that abide by such strategies are those that fulfill their reason for existence. 

Corporate social responsibility (CSR) is the commitment by organizations to ‘behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large’. - World Business Council for Sustainable Development 

Therefore, in own words can be defined as the responsibility (ethical, moral, and social) that an organization has towards its society (stakeholder, public, union, conservationist, etc). 

In my view, a company should focus on responsibility and shareholder satisfaction. In this context, I’ll be considering responsibility as “Corporate social responsibility”. The concept of CSR is somewhat new to the society however its impact is visible. While profit maximization focuses on short term wealth gathering, CSR focuses of sustainability development. CSR is a long term commitment; however, the results are prominent. Companies that adopt CSR have acquired long term profit while still satisfying its shareholders. 

Globalized economy has given prominent highlight to the role played by Multinational corporations. MNC's face global pressures from concerned groups to take up corporate social responsibility. Though they have no legal responsibility , yet their increase in power gives rise to increased responsibility towards the society at large by setting a code of conduct. 

Let’s take an example of Apple Inc. Previously there was lot of finger pointing going on towards Apple's CSR mismanagement. Though it made huge profit yet global criticism kind of tattered its image bring lots of dislikes towards it. Therefore, Apple has been seen more prominent and transparent in its CSR moves making it more globally appreciated.

Journal Entry (Week 9)- Internal Analysis

Questions

1) In your own words and using referenced quotes describe what is meant in strategy by the ‘Resource-Based View’?

2) How might you undertake ‘Internal Strategic Analysis’? What models would you apply and why? Where would you go to find the information you need?

3) Talk about your group video work. How is it going so far? Do you have a plan? What are you most worried about at the moment? What is going well?



Resource Based view:

Resource based view is a management device used to assess the available amount of a business strategic assets. In essence, the resource-based view is based on the idea that the effective and efficient application of all useful resources that the company can muster helps determine its competitive advantage.(Business dictionary)
According to RBV, a firm is a bundle of resources and the way the resources are combined makes the firm different from another firm. This is an inside out approach for which the starting point is the analysis of the internal environment.



Internal Strategic Analysis:

I would conduct the internal strategic analysis by identifying the following points about the organization.

Ø The objectives and purpose of the organization

Ø It’s resources and capabilities

Ø How organization configures and co-ordinates its value-adding activities

Ø Structure of the organization, characteristics of its culture

Ø Performance of the organization

I would apply the following models.

Ø Resource and competence analysis

Ø value chain analysis

Ø McKinsey Seven S analysis

Ø financial analysis

Ø VRIN

(Source: Value based management)

The information obtained after conducting these analyses will in turn provide the complete internal analysis of the firm i.e. the Strengths and weaknesses.

These information’s can be found through primary sources like company website or through secondary sources like books, websites, reports, publications etc.



Video group work:

We are moving very slowing at the moment, and that is my greatest concern. Due to constant celebration i.e. Christmas and New Year, our group hasn’t been able to solely focus on our main project. We need to learn to prioritize. However, our team spirit and the assurance that everyone is there for each other is our greatest asset. We have decided to do our presentation on “Apple v/s Samsung”. Being an avid user of Apple, to me this assignment is proving to be very interesting. Each member has his own role to play.
Our plan of action is to approach the presentation bit by bit as the famous saying goes, “How do you eat an elephant? Ans: Bite by bite”.



Reference:

Management Models, Value based management. Available at: http://www.valuebasedmanagement.net/ [Accessed on: January 3, 2013]

Resource based view, Business dictionary. Available at: http://www.businessdictionary.com/definition/resource-based-view.html#ixzz2Gy7L7awF [Accessed on: January 2, 2013]

Journal Entry (Week 8) - Internal and External Strategic analysis

Questions

1. Make a list of competitors for Islington College 
2. Develop a Porter’s 5 Forces Model for Islington College
3. To which strategic group might Islington College belong? 
4. Can you map the group? 

List of competitors for Islington College are:

• Kings college 
• Softwarica 
• British college 
• GNIIT 

Porter's 5 forces Model for Islington College

Fig 1: Porter's 5 forces Analysis

Strategic group:

Islington College belongs to the strategic group of colleges offering International Business degrees in Nepal.

Fig 2: Strategic Mapping of Islington College

Reason for my strategic mapping:

• I have used the "number of student" and "quality/price" as the dimensions for my strategic mapping of Islington College.
• "Number of students" is used as the x-axis while the "quality/ price" is used as the y-axis.
• Evaluating the pricing of all the above colleges, I observed Islington college was the highest priced along with British college that provides international UK degree. Moreover, it has one of the best facilitated structure. Facilities such as grand auditorium for lecture classes, projector, canteen, library, study area, free wifi, A/C facility in each class etc makes the college content.
• Silver mountain, softwarica, Kings college, GNNIT are mid range priced. 
• It was observed that Islington college has the largest number of students due to its popularity in IT education, Silver mountain being a hotel management school ranked second in the number of students. One of the major attraction of Silver mountain is that it provides intern opportunities to students in Malaysia plus international job opportunities. Softwarica, GNIIT are all IT colleges offering international degree. GNIIT is an Indian board which was recently established in Nepal, therefore it has fewer number of students.However, It is gradually gaining popularity.

Reference:

Strategic group mapping. Business surviver toolkit. Available at: http://business-survival-toolkit.co.uk/stage-three/strategy-and-planning/strategic-group-mapping [Accessed on: 27 December, 2012]

Journal Entry (Week 7)- PESTLE analysis of Big Mart