Introduction This assignment is divided into two parts. In Part A, you will exam
ID: 352458 • Letter: I
Question
Introduction
This assignment is divided into two parts. In Part A, you will examine the planning process by analyzing the case study “Bulldog Interactive Fitness”. In Part B, you will examine the decision-making process.
This assignment is marked out of 100 marks and will count for 12 per cent of your total course mark. The breakdown of marks is as follows:
Part
Marks
Part A: The Planning Process
50
Part B: The Decision-Making Process
50
Total
100
Instructions
Part A: The Planning Process (50 marks)
Read the Case Study “Bulldog Interactive Fitness” and answer the following questions.
What is the difference between corporate strategy and competitive strategy? (5 marks)
Of the four competitive strategies (cost leadership, differentiation, focus and stuck in the middle), which strategy is Bulldog Interactive Fitness pursuing? Support your positon. (15 marks)
The first three steps of the strategic management process are (a) identify the organization’s current mission; (b) external analysis and (c) internal analysis. Relate each of these steps to what you know about the planning process of Bulldog Interactive Fitness from the information presented in the case study. (30 marks)
Part B: The Decision-Making Process (50 marks)
As described in Chapter 4 of your textbook, the decision-making process is a comprehensive process involving eight steps. Is there one step that is more important than the other seven steps? Explain why or why not. (20 marks)
Given the advances of information and communications technology, managerial decision-making today is much easier due to the fact that information is so quickly and readily available to aid in the decision-making process. Do you agree or disagree with this statement? Support your position. (20 marks)
Read the Business Case “Coca-Cola and the Science of OJ” on page 103 of your textbook and answer the following question: Does the Black Book help the managers and employees of Coca-Cola in the decision-making process? Explain why or why not. (10 marks)
Part
Marks
Part A: The Planning Process
50
Part B: The Decision-Making Process
50
Total
100
VIDEO CASE INCIDENT CBC 4 Bulldog Interactive Fitness Holly Bond is the founder of tions for a Bulldog Interactive Fitness franchise, but she knows Bulldog Interactive Fitness, a the sale would be a lot more attractive with a big name partner to specialty gym designed with add marketing power. To achieve this partnership, Holly has children in mind. Inspired by her own son Matthew, an over been pursuing talks with X-box innovator Sony. Holly tried to weight 13-year-old whom she claims was a casualty of the use the Sony name in her previous advertising efforts, but was X-box generation, Holly is on a mission to fight childhood obe- forced to withdraw Bulldog's connection with Sony because it sity. She is working hard to entice children to move off the couch, had not been approved or officially endorsed. Since then, Holly where they spend hours staring at the television or computer has been chasing Sony executives and trying to sell them on the positive impact Bulldog Interactive Fitness is having on children. playing video games, and into her interactive fitness centre. At Bulldog Interactive Fitness, children are attracted by the stimulation and challenge of video games, while being physi- have some dialogue with Bulldog Interactive Fitness about cally active at the same time. The Sony technology that is the their future plans and business prospects, but no promotion or backbone of this unique gym requires the gamer to ride a sta- official arrangement has been reached. Holly invited Sony to tionary bike uphill, groove hip hop style on a dance mat, and attend the grand opening of their fifth franchise location, but sword fight ninjas with superpowers. The children are enjoy no one attended. Undeterred, Holly is convinced that she will ing the same video games they love, but they are getting their be able to secure a partnership with Sony and is certain they heart rates up and burning calories at the same time. The public relations executives at Sony finally agreed to will see that her mission is worthwhile Holly and her husband James are trying to make money from an epidemic that is front and centre in the media-childhood obesity With the decline in gym classes at schools and the increasing use of buses to transport children, the Bonds feel that schools are creating an environment of sick, stationary, unfit children. They envision business that will fíght against this trend of inactivity, increase fit ness levels, and encourage a healthier lifestyle in the long run. QUESTIONS Interpret 1. What is the difference between corporate strategy and busi strategy? What is competitive advantage, and where does it fit into strategy? 2. Of the three competitive strategies (cost leadership, differentia- ion, and focus) discussed in the text, which strategy is Bulldog Interactive Fitness pursuing? The Bonds are using television commercials to brand Bulldo Interactive Fitness and achieve their five-year plan of selling 1350 franchises. To reach this goal, they have to sell 20 nevw franchises per month. At a cost of $25 000 to enter the business, realizing their objective is going to be hard work. They have invested $250 000 into their business and hope to franchise it quickly, before someone else comes along to steal their idea. Analyze 3. Relate each step in the strategic management process to what you know about Bulldog Interactive Fitness from the case inci- dent and video. Practise 4. In the video, while talking about growth opportunities, James James and Holly successfully operate two locations in Nov Scotia. They have sold one franchise in Toronto, but new fran- chise investors are not biting fast enough. Their benchmark is to have ten profitable locations up and running in order to drive Soure: "Buld them to the next level. Holly is encouraged by the 350 applica Canadian Broadcasting Corporation, November 15, 2006 Bond says, "One won't get you ten, but ten might get you one hundred." Explain what he means by this comment Using the Internet and other sources, identify two key competi- tors for Bulldog Interactive Fitness. Identify each company's sustainable competitive advantage 5. Fitness." Venture's Dreamers and Schemers, Show No. 6,Explanation / Answer
Corporate strategies are a company-wide strategy directed towards the overall company objective. These kind of strategies are also known as organizational strategy. They are outward focused (e.g. company direction in next 10 years) and usually are applicable for diversified companies.
Competitive strategies are also known as business strategies. They are the guidelines to establish a competitive advantage in the market. These are focused inward and works with company’s strength in the market.
Bulldog Interactive is selling franchisee. Hence we can assume that their customers are actually the investors in franchisee. If we look at the different competitive strategies we can see that they do not have cost leadership. The case speaks about the price of franchisee being expensive. They however provide a very unique product and offer differentiation. In addition, their target group is also quite narrow. Considering these factors we can infer that their competitive strategy is focused-differentiation.
Let’s list the steps and match with the details from the case.
Organization’s current mission: The mission of Bulldog interactive is to fight obesity in young kids. The case clearly points out that Bulldog Interactive Fitness is looking to increase the health quotient among teenager in the country. They are trying to fight the negative impacts of too much TV, video games and bring the kids out for some exercise while still having fun.
External analysis: The case does not provide any numbers but from the details it is understood there is a requirement of this product in the market. However, the product is dependent on Sony technology. This means their product is dependent on the move of Sony technology. The legal, political, economic and social factors are assumed to be stable in Bulldog Interactive’s decision making process.
To make the analysis more systematic we could use Porter 5 force for external analysis.
Internal analysis: For internal analysis the best approach is to perform a SWOT analysis. Let’s take a look at the company using these four parameters
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