Session-5 - Mark
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Transcript Session-5 - Mark
Session #5
Strategic
Management
Dr. Mark H. Mortensen
Session 211 and 212
M-W PA 407
(c) Copyright 2011 Mortensen Consulting Group LLC
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You Will be Prepared for Today
Iff You:
Have read Chapter 3
Have read the Apple case study
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Key Points from Last Session
Chapter 2
of Directors – purpose & responsibilities
SOX effect on operations
Current trends in corporate governance
Importance of Executive Leadership, even in a
“learning organization.”
Board
Case Study Methodology
Purpose
of a Case Study
Outline of a Case Study
Procedure for Doing a Case Study
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Chapter 3
Lecture & Discussion
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Apple Case Study
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Apple Case Study: Outline
Case Study Background – The nature of
competitive advantages over time in highly
competitive, innovative industries.
What should Apple do?
Define
the Central Issues
Define the firm’s goals
Identify the constraints
Identify the alternatives
Select the best alternative
Develop an implementation plan
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Apple: Case Study Background(1):
Apple History
Competitive advantages in the 1980s made
Apple the most profitable PC company in the
world (What were they?)
But “on a glide path to history” (What? Why?)
Four successive CEOs (Sculley, Spindler,
Amelio and Jobs) sought to reposition Apple in
the PC Industry and to create a sustainable
competitive advantage.
(What did they try? What succeeded? What did
they decide not to do?)
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Competitive advantages in the 1980s that made
Apple the most profitable PC company in the world
Ease of use
Dominance in creative industries (design,
desktop publishing), as well as education
Buyer loyalty
Proprietary operating system
Strong branding
Excellent industrial design
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Why was Apple “on a glide path to
history”
Low market share, increasing competition
and change in the market to a
commodities point of view for PCs put
Apple’s differentiation strategy at risk.
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CEOs’ Strategies
Sculley – low-cost producer; “hit products” every 6-12
months; Mac Classic vs. IBM clones; Powerbook laptop;
Newton PDA; Taligent with IBM for new OS; PowerPC
chips from IBM
Spindler (1993-1996) – reinvigorate core markets; killed
Intel chip; licensed Mac OS to clone makers; killed
Taligent; layoffs
Amelio (1996-1997) – servers & other high-margin
devices; cancelled nextgen Mac OS; ended licensing
program; bought NeXT (Jobs)
Jobs – iMac; outsourced manufacturing; direct sales via
website; image; industrial design
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Apple: Case Study Background(2):
The Mac Business in the 21st Century
Technology & Innovation
Cutting
edge experience
High-end
Differentiated from Wintel machines
Intel Chipset
Overhauled Mac OS X in 2001 (UNIX)
Proprietary Apple-developed applications
Distribution & Sales
Retail
stores
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Apple: Case Study Background(3):
The Evolving PC Industry
The dynamics of the PC industry have radically
changed in the last 20 years.
Buyers
Rivalry among suppliers
Barriers to entry
Complements to the PC industry
Supplier vs. Manufacturers balance of power
Substitutes
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Apple: Case Study Background(4):
Apple Beyond Macintosh
iPod
iTunes
Apple TV
iPhone
iPad
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Questions for next week – think
about these and we will discuss
Has Steve Jobs finally solved Apple’s
long-standing problems
With respect to the Macintosh business?
b. With respect to its broader strategic position?
a.
Going forward, what should Steve Jobs
do?
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Apple’s Long-Standing Problems
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Apple SWOT(s)
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Apple’s Goals
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Apple’s Constraints
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Apple’s Alternatives
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Apple’s Best Alternatives
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Apple’s Implementation Plan
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Reminder for Next Class
Nothing due.
We will continue our discussion of
business ethics and have a review session
for the upcoming quiz.
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