Question: Apply the CAGE distance framework to the

> Why did Google restructure itself and create Alphabet? What is it hoping to accomplish? For additional insights, see Larry Page’s post announcing the restructuring at https://abc.xyz/.

> Apply again the three-step process for crafting a good strategy (see Section 1.1), this time to each element of the new master plan. On which steps of the new master plan has Tesla made the most progress? Explain. Also, what recommendations would you off

> Assume you are hired to consult IKEA on the topic of corporate social responsibility (see the discussion in Chapter 1). Which areas would you recommend the company be most sensitive to, and how should these be addressed?

> What can IKEA do to continue to drive growth globally, especially given its strategic intent to double annual store openings?

> Did it surprise you to learn that both a rich developed country (e.g., the United States and Australia) as well as emerging economies (e.g., China and India) are the fastest-growing international markets for IKEA? Does this fact pose any challenges in th

> List IKEA’s external and internal challenges. Looking at IKEA’s challenges, which ones do you think pose the greatest threat? Why? How would you address the challenges?

> Uber is still a much larger and more valuable firm than Lyft. Uber is also more diversified in that it offers services beyond ride-hailing, which is its core service. Do you think the strategic alliances with GM and Waymo could help Lyft to overcome Uber

> What are some possible reasons Waymo entered an alliance with Lyft? Are there any reasons Waymo would prefer Lyft over Uber as an alliance partner?

> GM invested $500 million in Lyft in 2016. What are some possible reasons GM entered an equity alliance with Lyft? Are there any reasons GM would prefer Lyft over Uber as an alliance partner?

> Describe the reasons Lyft entered strategic alliances with GM and Waymo. Are some reasons more important than others? Why or why not? Explain.

> Amazon.com continues to spend billions on seemingly unrelated diversification efforts. Do you believe these efforts contribute to Amazon gaining and sustaining a competitive advantage? Why or why not?

> At this point, Google and Facebook are the clear leaders in the digital ad space, which is predicted to continue to grow exponentially (reaching $175 billion in 2021, overtaking traditional advertising with an estimated $100 billion). Although Amazon’s m

> Describe the rationale behind Tesla’s new master plan. How does this new strategy help Tesla fulfill its vision? To view Tesla’s “Master Plan, Part Deux” in its entirety, see Tesla’s blog: www.tesla.com/blog/master-plan-part-deux.

> What is Amazon’s core business? Is AWS related to Amazon’s core business? Why or why not? Some investors are pressuring Jeff Bezos to spin out AWS as a standalone company. Do you agree with this corporate strategy recommendation? Why or why not? Hint: Do

> Describe Amazon's diversification strategy using Exhibit 8.8. What type of diversification strategy is Amazon pursuing? Explain.

> What are some of the challenges Netflix is likely to encounter internationally? What can Netflix do to address these? Explain.

> International expansion appears to be a major growth opportunity for Netflix. Elaborate on the challenges Netflix faces going beyond the U.S. market. Do you think it is a good idea to rapidly expand to almost 200 countries in one fell swoop, or should Ne

> Why is competition in internet streaming services heating up? Who is jumping into the fray, and why? How do these companies differ? What do you expect the result of this intensifying competition will be going forward?

> How did Netflix use innovation in its business strategy to gain and sustain a competitive advantage? What role did strategy, technology, and business models play? Explain in detail.

> JetBlue CEO Robin Hayes is contemplating adding international routes, connecting the U.S. East Coast to Europe. Would this additional international expansion put more pressure on JetBlue’s current business strategy? Or would this international expansion

> Consider JetBlue’s value curve in Exhibit 6.11. Why is JetBlue experiencing a competitive disadvantage? What recommendations would you offer to JetBlue to strengthen its strategic profile? Be specific.

> Which strategic moves has the team around CEO Hayes put in place, and why? Explain whether they focus on value creation, operating costs, or both simultaneously. Do these moves correspond to St. George’s understanding of JetBlue’s strategic position? Why

> JetBlue’s chief marketing officer, Marty St. George, was asked by The Wall Street Journal, “What is the biggest marketing challenge JetBlue faces?” His response: “We are flying in a space where our competitors are moving toward commoditization. We have t

> Does Tesla have a good strategy? Why or why not? How do you know? Consider: By summer 2019, Tesla's market cap had fallen by 30 percent to $45 billion, down from $65 billion a year earlier. Many wondered: Is Tesla in trouble?

> Despite its initial success, why was JetBlue unable to sustain a blue ocean strategy?

> Looking three to five years into the future, who do you expect will have a competitive advantage: Apple or Microsoft? Explain.

> Microsoft CEO Satya Nadella has made drastic changes to Microsoft’s strategy. What was Microsoft’s strategy before Nadella was appointed CEO in 2014? What is it now under his leadership? Do you agree that Nadella has formulated a promising business model

> Which of them has vision or mission statements that are appealing to donors, employees, and clients? Do these statements seem relevant in today’s environment or are they outdated? What improvements can you create for these organizational statements?

> What problems would need to be addressed to introduce this angel-network idea into a firm? Use a firm someone in your group has worked for or knows well to discuss possible issues of widely distributing small funding level approvals across the firm.

> Form small groups of three to four students. Search the internet on the following topic and debate your findings. For each group, search the internet for options and plans to (1) build more sustainable communities that would help areas cope with supersto

> This chapter introduces several approaches to assessing a firm’s competitive advantage. Using any one of these approaches, can you ascertain whether Microsoft has a competitive advantage over Apple? Why or why not? From which approach is Microsoft lookin

> The chapter applies the three elements of a good strategy to Tesla for insights into the company’s possible competitive advantage. As a group, choose a different firm that is well known to the students. Assign the competitive challenges and company guidi

> If you were a PepsiCo shareholder, would you support this program? Why or why not?

> What other societal benefits could such a program have in Mexico?

> What are the benefits of this program for PepsiCo? What are its drawbacks?

> Discuss why traditional taxi companies, such as Yellow Cabs and those needing medallions (such as in New York City), are choosing to attempt to prohibit these app-enabled, ride-hailing services rather than aggressively implementing their own app-calling

> What similarities and differences do you find in the way these firms have implemented sometimes similar ideas?

> How would the control-and-reward systems be different?

> What would likely be the cultural differences in the two store concepts?

> How would the organizational structure be different for the two concepts?

> What is the business strategy for each store concept?

> Do you think Five Guys will be as successful outside the United States as it has been in its home market? Why or why not?

> Consider the potential pitfalls of such an approach and how these might be addressed.

> Have each group member explain how this approach might change his/her program of study.

> If large numbers of students decided they would learn some of the core materials best by taking an online course, how might this affect the university’s revenue stream? How might this change the way professors teach courses?

> How might this change the university’s allocation of resources (e.g., would more trained advisors and career counselors be required, and how would they be evaluated)?

> What entrance strategy should the firm employ in expanding the business to new countries? Why?

> Can you recommend three or four other countries Clif Bar should enter? Support your recommendations.

> Given the results from the CAGE model, do the chosen countries make sense? Why or why not?

> Is there any special consideration a firm should have for its “home country”? Is it ethical to keep profits outside the home country in offshore accounts to avoid paying domestic corporate taxes?

> Should IKEA be considered a Swedish firm with less than 6 percent of sales garnered from the Swedish market? Discuss why or why not in your groups.

> Do you think a trend toward more healthy eating is a threat to Five Guys? If so, what could the company do about it? For example, should the company change its menu to include healthier choices, or should it continue with what made Five Guys so successfu

> Given that traditional U.S. firms like IBM have over 70 percent of their employees and almost two-thirds of their revenues come from outside the United States, what is an appropriate definition of a “U.S. firm”?

> In Strategy Highlight 9.2, Kraft is shown to be prone to using hostile takeovers. These acquisitions are completed over the objections of the acquired firm. As noted in the text, mergers and acquisitions sometimes have difficulty creating enhanced compet

> Using the build-borrow-or-buy framework and other strategic concepts, develop a set of questions to ask the managers of this small business to help you gather information regarding whether to hire new employees with more sophisticated technology expertis

> In your group, list other industry combinations you have seen be successful. Consider why you think the combination has been a success.

> What other industrial or commercial industries could benefit from such potential tourist or recreational revenues? Discuss what new and complementary capabilities would need to be developed in order to succeed.

> If your team was asked to consult for Barnes & Noble Education, which corporate strategies would you recommend to the company’s senior leadership?

> While Amazon as a firm continues to diversify its products, services, and markets under one corporate umbrella, why do firms such as Barnes & Noble choose to split into separate firms for greater focus on each piece of the business? Do these different st

> In your small group, discuss any potential ethical issues with Amazon paying the university administration for direct access into the school’s course textbook system.

> Can you identify a pipeline business that is likely to be disrupted by the firm you discussed in question 2b above? What could this pipeline business do to improve its long-term viability?

> In your group, discuss a company that could be moving toward a platform business or a new firm that is developing as a platform. Sketch out a business model for this firm and the network loop it could be utilizing to drive demand.

> Five Guys’ success led to imitation attempts by more recent entries in the fast-casual “better burger” segment of the restaurant industry such as BurgerFi, Shake Shack, and Smashburger. Do you think these new entrants are competitive threats to Five Guys

> The text discusses the pros and cons of pipeline businesses and platform businesses. Several examples of new platform businesses are mentioned (Uber, Airbnb, Facebook, and Alibaba, for example). Yet it is noted that these multi-sided markets have actuall

> Your team has been asked to consult for Simon Property Group (SPG on NYSE), one of the largest U.S. operators of shopping malls. The company wants to know how its mall space could be repurposed. What blue ocean ideas can your team develop to present to t

> What similarities and differences do you find about Ryanair compared to JetBlue from the ChapterCase?

> If you were a competitor in the European market, such as British Airways or Lufthansa, how would you compete against Ryanair, knowing your cost structure would not allow price parity? If you were a low-cost leader like EasyJet, how would you compete agai

> At the next big family gathering, you want to impress your grandparents with the innovative ideas you have learned in business school. They have decades of experience in investing in the stock market and, from their college days, believe that economic pr

> Strategy Highlight 4.2 explains the rise and fall of Groupon. The company’s strategic vision was to be a global leader in local commerce, based on a core competency that could be described as “local market-making.” Numerous competitors took advantage of

> Brand valuations were mentioned in the chapter as a potential key intangible resource for firms. Some product brands are so well established that the entire category of products (including those made by competitors) may be called by the brand name rather

> How should managers of a textbook publishing company respond to such changes?

> If your group believes that the company is not responsible for personal choices that consumers make to eat unhealthy food, then describe how the company should respond to activist groups and public health officials that are urging companies to stop produ

> Identify other actions that Kraft might take to demonstrate that it is a food company that genuinely cares about children’s health and a company that would like to help reverse the trend of increasing childhood obesity.

> Why is Five Guys so successful? Describe Five Guys’ core competency, explain how the company built it, and why it is essential to its success.

> Visit www.lunchables.com and review the Lunchables products, as well as other packaged food products that Kraft offers. Discuss among your group members the extent to which the product options are healthy choices.

> Will the shifts in technology and business models be likely to raise or lower the textbook industry profits? Explain.

> As a strategist in a major firm, how would you seek to position your company in light of such current and potential future governmental policies?

> What is the appropriate role for governments to encourage or discourage certain purchasing behaviors? You may note many national governments have for decades collected additional taxes on tobacco and alcohol products as a measure to try to moderate consu

> What are the competitive implications of the actions of VW? Does this situation impact the industry rivalry that is discussed in the five forces model, for instance?

> In January 2017, a U.S. grand jury indicted six current and former VW executives for their alleged role in the emissions scandal and its subsequent cover-up. The U.S. Justice Department decided to bring charges against these executives after a 16-month c

> This chapter discusses some key strategic leadership issues (such as privacy and fake news) facing Facebook leaders Sheryl Sandberg and Mark Zuckerberg. Consider other firms mentioned in the chapter such as Amazon, PepsiCo, Uber, VW, and Starbucks. What

> As noted in the chapter, the average compensation for a CEO of an S&P 500 company was $12.4 million, and CEO pay was 300 times the average worker pay. This contrasts with historic values of between 25 and 40 times the average pay. Trying to highlight thi

> The shared value creation framework provides help in making connections between economic needs and social needs in a way that transforms into a business opportunity. Taking the role of consultant to Nike Inc., discuss how Nike might move beyond selling h

> As noted in Chapter 5, many public firms are under intense pressure for short-term (such as quarterly) financial improvements. How might such pressure, in combination with output controls, lead to unethical behaviors?

> Are you concerned that the concept of the sharing economy could be abused by unscrupulous “entrepreneurs” and thus give the entire novel concept a bad reputation? Why or why not? Explain.

> When a player hears the message as “any action will be tolerated as long as you are winning,” there can be serious consequences on and off the field. How could leaders of sports organizations communicate the will to win and develop the necessary skills w

> Discuss the factors that managers of Apple or GE may consider as they focus on continuous innovation rather than the cost of manufacturing. How might governments with an interest in generating employment opportunities try to influence the decisions of fi

> In the fall of 2016 Yahoo disclosed several major security breaches involving more than 1.5 billion user accounts. The results of these disclosures delayed the purchase by Verizon and reduced the Yahoo purchase price by at least $300 million. In June 201

> In this chapter, three main reasons are given for why one firm would acquire another. In July 2016 Verizon announced it was going to acquire Yahoo for $4.8 billion in cash. The announcement discussed Verizon’s earlier purchase of AOL and noted Yahoo woul

> As we look at Google, Facebook and Amazon, all three have potentials for a diversification into the realm of facial recognition. What are the potential benefits? Do the chances of consumer pushback/reputation risks outnumber the potential benefits?

> How do the perspectives on competitive advantage differ when comparing brick-and-mortar stores to online businesses (e.g., Best Buy versus Amazon, Barnes & Noble versus Amazon, Old Navy versus Threadless [Strategy Highlight 5.2], Nordstrom versus Zappos,

> It is legal to take apart publicly available products and services and try to replicate them and even develop work-arounds for relevant patents. But is it ethical? If a key capability protected by patents or trademarks in your firm is being reverse-engin

> The external environment of the global automobile industry is quite complex. Regulations vary from country to country and in the United States even from one state to another. Firms must be prepared to anticipate and respond to these external forces. It a

> How much less salary would (did) you accept to find employment with a company that is aligned with your values?

> Identify your personal values. How do you expect these values to affect your work life or your career choice?

> Citing the Digital Millennium Copyright Act (DMCA), Airbnb is challenging the New York law and others in the United States, arguing that it merely operates a digital marketplace, and thus is not responsible for the content that users place on its site. D

> Do you agree with the assessment that Elon Musk and Tesla successfully fulfilled the first master plan published in 2006? Why or why not? To answer this question, apply the three-step process for crafting a good strategy explained in Section 1.1 (diagnos

> Western Services has three service departments: Information Systems (IS), Personnel, and Administration. There are two operating departments: Residential and Commercial. A summary of costs and other data for each department prior to allocation of service

> Edwin Parts, a job shop, recorded the following transactions in May: 1. Purchased $87,200 in materials on account. 2. Issued $3,650 in supplies from the materials inventory to the production department. 3. Issued $43,600 in direct materials to the produc

> Edwina Industrial Products (EIP) manufactures cleaning products. The Grant Street Plant produces a single product in three departments: Mixing, Refining, and Packaging. Additional materials are added in the Refining Process when units are 40 percent comp