Business Management 499 Winter 2002 Professor Darral G.

Clarke Preparation Questions Cola Wars Continue: Coke and Pepsi in the 1990s 1. Why is the soft drink industry so profitable? 2. Ho has the !o"petition bet een Coke and Pepsi affe!ted the industry#s profits? $. Co"pare the e!ono"i!s of the !on!entrate business to the bottlin% business: hy are the differen!es so stark? Why are !on!entrate produ!ers &erti!ally inte%ratin% into bottlin%? '. Will Coke and Pepsi be able to sustain their profits in the future? What do you re!o""end they should do? Cro n Cork and (eal in 19)9 1. Why has the stru!ture of the "etal !ontainer industry been so unattra!ti&e? 2. Ho did CC*( a!hie&e superior profitability in this industry? Ho has it been able to sustain its superior perfor"an!e for so lon%? $. What !han%es in strate%y do you re!o""end to +ill ,&ery as the ne C-.? '. +e sure to !onsider the &arious opportunities for e/pansion0 in parti!ular0 should CC*( bid for all or part of Continental Can? 1u!or at a Crossroads 1. Why has 1u!or perfor"ed so ell in the past? 2. Ho attra!ti&e do the e!ono"i!s of thin2slab !astin% look for 1u!or? $. 3s thin2slab !astin% likely to pro&ide 1u!or a sustainable !o"petiti&e ad&anta%e in flat2rolled steel produ!ts? '. What should 1u!or do? Ho should it think about the un!ertainties surroundin% thin2slab !astin%? 3ntel Corporation: 194)21995 1. What as 3ntel#s strate%y in D6,7(? What a!!ounts for 3ntel#s dra"ati! de!line in "arket share in the D6,7 "arket bet een 195'219)'? 8o hat e/tent as 3ntel#s failure a result of its strate%y? 2. What strate%y did 3ntel use to %ain a !o"petiti&e ad&anta%e in "i!ropro!essors and hat strate%ies has it used to deal ith ea!h? Why has 3ntel been able to sustain its ad&anta%e in "i!ropro!essors0 but not in D6,7s? $. ,ssess the future prospe!ts of 3ntel. What is the bi%%est threat it fa!es? Who" should it be "ost orried about? What strate%y should is !raft to deal ith these threats? +ritish (atellite +road!astin% &ersus (ky 89 1. Ho "i%ht +(+ ha&e been able to identify 1e s Corporation as a potential !o"petitor prior to 7urdo!h#s announ!e"ent of the laun!h of (ky 89? 2. What "i%ht +(+ ha&e done differently prior to (ky#s entry announ!e"ent?

$. What should +(+ do in 1990? 3n parti!ular0 hat share of a possible "er%er pie ould you hold out for0 as +(+? '. Why did this !o"petiti&e battle turn out to be so !ostly for both parties? Wal:7art (tores0 3n!. 1. What ha&e been Wal:7art#s key sour!es of !o"petiti&e ad&anta%e in dis!ount retailin%? 2. 3s Wal:7art#s !o"petiti&e ad&anta%e sustainable in 199'? $. Will the super !enter for"at pro&e as %reat a su!!ess for Wal:7art as its dis!ount stores?

;eadership .nline: +*1 &ersus ,"a<on.!o" 1. +ased on your o n e/perien!e of traditional booksellin% and your e/ploration of online booksellin%0 !o"pare illin%ness2to2pay for books supplied by these t o business "odels. 2. Co"pare the lon%2run !ost position of a su!!essful online bookseller to +arnes and 1oble#s traditional business "odel. =,ssu"e that -/hibits ' * 5 in the !ase refle!t a&era%e dis!ounts of 10> off list pri!e for +*1 and 2?> off list for the online bookseller.@ $. ,ssess +*1#s response to the substitution threat fro" ,"a<on? Ho did ,"a<on respond0 and to hat net effe!t? '. Who ill be the online leader? Will it e&er "u!h a profit sellin% books? =,s opposed to sellin% sto!k.@ -+ay0 3n!. 1. What is e+ay#s business "odel at the ti"e of the !ase? Why is it one of the fe profitable e2businesses at the ti"e of the !ase? 2. What are the !riti!al su!!ess fa!tors of this business? ,re any of these bein% threatened by industry or !o"petiti&e !han%e? $. Why is s!ale so i"portant in this business? '. 3s this an industry that is prone to Atip#? Why or hy not? ?. Ho serious is entry a"a<on.!o" and BahooC 3nto its "arket? 4. What should e+ay do no ?

7at!hin% Dell 1. Ho did the PC industry be!o"e so unprofitable? 2. Ho do the !on!epts of de!onstru!tion and re!onstru!tion =disinter"ediation@ help to e/plain the Dell Dire!t 7odel? $. Ho bi% has Dell#s !ost ad&anta%e been in the past? =1994@ Ho bi% is their !ost ad&anta%e at the ti"e of the !ase? '. Why ha&e other !o"panies found it so diffi!ult to dupli!ate Dell#s su!!ess? ?. Where in Dell#s &alue !hain is the "ost &alue !reated? Can the !ost ad&anta%es e !o"puted in ans erin% Duestion 2 a!!ount for the &alue of Dell#s sto!k?

-nron: -ntrepreneurial -ner%y Preparation Questions 1. -&aluate the !han%es in -nron#s strate%i! &ision sin!e 19)?. 2. -&aluate the portfolio of businesses that !o"prise -nron in Eanuary 2000. $. What are the proble"s that (killin% fa!es as the C.. of -nron? 3n parti!ular hat proble"s "ust he deal ith as that !on!ern "ana%in% a!ross these businesses? '. What are the key opportunities and threats that -nron fa!es in Eanuary 2000? ?. What roles do ;ay and (killin% play as the top "ana%e"ent of -nron? FCis!o (yste"s: ,re Bou 6eady =,@G Preparation Duestions 1. What is Cis!o#s Finternet e!osyste"G strate%y? 3s it possible for su!h an or%ani<ation to e/ist ithout the 38 te!hnolo%y Cis!o uses to a!!o"plish it? 2. What ad&anta%es has the Fa!Duisition and de&elop"entG strate%y pro&ided to Cis!o in the past? ,re these ad&anta%es still present? $. Ho does the 31( deal differ fro" the other Cis!o#s other a!Duisitions? '. Would the a!Duisition of 31( Heopardi<e these strate%ies either no or in the future? ?. ,re the benefits fro" a!Duirin% 31( =or the !osts of not a!Duirin% it@ si%nifi!ant enou%h to !onsider the a!Duisition?

F8he ,.; 8i"e2Warner 7er%erG Preparation Duestions 1. Why ould these t o !o"panies !onsider su!h a hu%e0 proble"2ridden arran%e"ent? 2. What syner%ies appear to be &aluable and reali<able? ,ny e/pe!ted syner%ies that appear Duestionable to you? $. 3s the "er%er a better deal for one !o"pany or the other? Why? '. What pressures does this "er%er pla!e on other !o"panies in the related industries? ?. Will other "er%ers be forth!o"in%? Whi!h?