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 require a shift in JetBlue’s strategic profile? Why or why not? And if a strategic repositioning is needed, in which direction should JetBlue pivot? Explain.
> Several elements of strategic decision making are highlighted in this chapter. Think of an important decision a firm has recently faced and choose either devil’s advocacy or dialectic inquiry to lay out some of the key factors the firm likely considered
> The chapter discusses several strategic leadership issues at Facebook. Several other firms are also noted in the chapter with some positive and some negative leadership results. Choose a firm mentioned in the chapter and discuss current controversial iss
> In the discussion about Merck (Strategy Highlight 1.2), the firm faces difficult situations about life-saving drugs. What is your assessment of Merck's consideration of various stakeholders in the two situations described?
> Corporate social responsibility has four components. Do you agree that public firms should address all four elements? Why or why not? If not, where should the firm "draw the line?” Please provide an example to explain your logic.
> The text discusses strategic trade-offs that are different between Walmart and Nordstrom even though they are in the same industry. Think of another industry that you know fairly well and select two firms there that also have made very different choices
> The shared value creation framework provides help in making connections between economic and societal needs in a way that transforms a business opportunity. Taking the role of a consultant to Uber (ride-hailing service), discuss how Uber might move into
> What makes some strong cultures helpful in gaining and sustaining a competitive advantage, while other strong cultures are a liability to achieving that goal?
> The chapter describes the role of culture in the successful implementation of strategy. Consider an employment experience of your own or of someone you have observed closely (e.g., a family member). Describe to the best of your ability the values, norms,
> Why is it important for an organization to have alignment between its strategy and structure?
> Compare and contrast the strategic leadership of Mark Zuckerberg and Sheryl Sandberg. Which qualities for each strategic leader stand out to you, and why? Where would you place each individual on the Level-5 pyramid for strategic leaders (see Exhibit 2.2
> The chapter notes that global strategy can change over time for a firm. YouTube is one example in this chapter. Conduct a Web search of a firm you know to be operating internationally and determine its current global strategy position. How long has the f
> Strategy Highlight 10.2 discusses the failure of Walmart in Germany. Using the CAGE distance framework, discuss how Lidl should seek to be successful with its move into the US market.?
> Given the poor track record of M&As, what explains the continuing trend for mergers and acquisitions in many industries? What steps can a firm take to improve the chances of successful M&As?
> The chapter notes that some firms choose to outsource their human resource management systems. If a firm has a core value of respecting its employees and rewarding top performance with training, raises, and promotions, does outsourcing HR management show
> Nike is a large and successful firm in the design of athletic shoes. It could easily decide to forward-integrate and manufacture the shoes it designs. Thus, the firm has a credible threat over its current outsourced manufacturers. If Nike has no intentio
> While many new firms and industries are using a platform strategy, there are downsides to this approach. Explain two ways in which multi-sided markets may be a disadvantage for firms entering new markets.
> Patents are discussed as part of the invention phase of the innovation process in Exhibit 7.2. Describe the trade-offs that are made when a firm decides to patent its business processes or software. Is this same trade-off applicable to tangible hardware
> The chapter discusses seven different business models with a brief description of each. Given the changing nature of many industries, choose an industry you have some knowledge of and describe how the business model of a firm in that industry has changed
> Conduct a value chain analysis for Five Guys. What are its primary activities? What are its support activities? Identify the activities that add the most value for the customer. Why? Which activities help Five Guys to build its differentiated brand? Why?
> This chapter covers the choices firms make in entering new markets. Reflect on ChapterCase3 and discuss how Airbnb might have answered these questions in Exhibit 3.6.
> What challenges (as detailed in this ChapterCase) is Facebook facing? How should Mark Zuckerberg and Sheryl Sandberg deal with each of them? List each of the challenges, and make specific recommendations on how to address them.
> The “job to do” approach discussed with the Clayton Christensen milkshake example can be useful in a variety of settings. Even when we are the customers ourselves, sometimes we don’t look for better solutions because we get into routines and habits. Thin
> This chapter introduces three levels appropriate for strategic considerations (see Exhibit 2.3). In what situations would some of these levels be more important than others? For example, what issues might be considered by the corporate level? How should
> What lessons can be learned from the Theranos case?
> Why and how did Theranos get in trouble?
> Theranos was valued at some $10 billion at its peak. Did the investors overlook any red flags? Or was it simply FOMO (“fear of missing out”) that made them hurry to jump on the Theranos bandwagon? Why were so many people caught up in the hype around Ther
> What is the designated role of a board of directors? Did the Theranos board of directors fulfill this role? Why, or why not? If not, what was the motivation behind stacking the board the way Holmes did? Explain.
> What was the original mission and vision of Theranos founder Elizabeth Holmes? How did Holmes set out to fulfill her mission?
> Why has Google “failed” to develop other profitable businesses? Is Google’s strategy process of planned emergence to blame? Why or why not? Will Alphabet’s new structure with independent SBUs enable the company to innovate more and to find the next highl
> Do you think the reorganization is beneficial for Alphabet’s moon shots, now housed in their own business unit with profit-and-loss responsibility? Why, or why not? Explain.
> 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.
> 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?
> Apply the CAGE distance framework to the foreign countries where Clif Bar is operating. What is the relative distance of each to the United States? Rank the order of the countries in terms of relative distance.
> 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
