Strategic Management PGP Sections A and B

The LEGO Group: Envisioning Risks in Asia (A)

1. How attractive is the branded toy industry?

2. How well has LEGO adapted to the industry environment?
3. What are the key opportunities and challenges in the Asian market?
4. With a specific focus on the Asian market, do a scenario planning and determine the
implications and options for the LEGO Group. Should LEGO build a factory in Asia
in the next five to seven years?
The Indian Sugar Industry – Is it Sweet Enough?

1. Assess the attractiveness of the Indian sugar industry using Porter’s five forces
model. Discuss the impact of the following factors on its attractiveness:
a) Relative bargaining power differences between farmers and sugar producers;
b) Government regulations; and
c) Global sugar producers.
2. What are the critical success factors of Indian sugar industry?
3. Discuss whether the following possibilities could improve the attractiveness of Indian
sugar industry:
a) Changes in the industry forces within a foreseeable period of time;
b) Deregulation; and
c) Focus on by-products such as ethanol.
4. Compare the characteristics of Brazilian and Indian sugar industries and discuss
whether there is a possibility of convergence of these two industries in terms of their
structural characteristics.

Wil’s Grill

1. Discuss the resources and capabilities of Wil’s Grill and identify its core
competencies in the street food market segment using VRIN framework.
2. What are the strengths, weaknesses, opportunities and threats for Wil’s Grill? Identify
various strategic options for Wil’s Grill by creating a SWOT matrix.
3. You have identified the resources, capabilities and core competencies of Wil’s Grill
developed in the street food market segment while answering question 1. Now,
discuss the transferability of those resources, capabilities and core competencies to the
catering market segment in terms of the following:
a) Which of those resources, capabilities and core competencies are transferable to
the catering segment?
b) What gaps exist in terms of resources, capabilities and core competencies if Wil’s
Grill enters the catering segment?
c) How will Wil’s Grill acquire and or/develop the missing resources, capabilities
and core competencies if it decides to enter the catering segment?

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 4. Based on the analyses done for the previous questions, advise Wil’s Grill whether it
should expand its operations either by entering the catering market segment or by
doing something else.

Sandlands Vineyards

1. Assess the attractiveness of the premium wine segment (i.e. making premium wines)
using Porter’s five forces framework. Is the level of attractiveness likely to change in
the future?
2. Does Sandlands Vineyards have a sustainable competitive advantage in the premium
wine market? (Note: Use VRIN framework to assess the sustainable competitive
advantage).
3. What should the Passalacquas do: buy the Eastside Meats building and develop it into
a winery; buy another old vineyard; or do something else?
4. Can you write a strategy statement for Sandlands Vineyards?

Business Model Innovation at Wildfang

1. Develop a Business Model Canvas for Wildfang’s current operation, and for the two
proposed models for its expansion namely private label bricks-and-clicks model and
multisided fashion platform.
2. Compare the three business model designs by creating a table.
3. Discuss the pros and cons of private label bricks-and-clicks model and multisided
fashion platform and provide your recommendation regarding the choice of the
business model to Wildfang.

KidZania: Spreading Fun Around the World

1. How is KidZania able to differentiate in the competitive entertainment market? What
is unique about KidZania’a offer?
2. Who are KidZania’s stakeholders? What do they contribute to the experience and
what do they receive in return?
3. Is KidZania’s current strategy sustainable in the long term given the competitive
landscape?
4. If you were Xavier Lopez Ancona, which one out of the four alternatives namely
opening more parks, developing a different type of indoor park, expanding into the
digital world, and developing media content based on KidZania characters would you
recommend to the board of directors to position, consolidate and differentiate the
brand? Discuss the pros and cos of each of these four options to help you arrive at a
decision. (Hint: Use Ansoff Matrix to assess and discuss the four growth options).

Valeant’s Battle for Allergan

1. Why does Valeant wish to acquire or merge with Allergan? Is it possible for Valeant
to create value by acquiring/merging with Allergan?

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 2. Is Valeant offering a premium to Allergan’s shareholders for the change of control?
3. What do you make of Allergan’s reluctance to talk to Valeant? Would there be any
harm in talking to the potential suitor?
4. Explain in detail the nature of the debate between Allergan and Valeant as to whether
Valeant’s business strategy is capable of sustaining business growth.
5. What was the role played by William Ackman and his firm Pershing Square in this?
Why weren’t Ackman’s actions considered insider trading?
6. Which one out of these three options will you recommend to the management of
Allergan: (a) stay single, (b) go with Valeant or (c) go with Actavis.

Cycles Devinci: Develop and Asia-Pacific Internationalization Strategy?

1. What is Devinci’s position within the industry? How does it benefit from that
position?
2. How would you rate Devinci’s international expansion efforts to date?
3. Given Devinci’s position, is internationalization in the Asian market desirable?
Realistic?
4. Based on the data collected by Brodeur (presented at the end of the case), how would
you go about evaluating potential markets? In other words, how would you choose the
most promising markets?

Proctor and Gamble’s Battle with Nelson Peltz

1. What are the major determinants of profitability in the global FMCG industry? How
have they changed over time?
2. What are the historical sources of distinctive competence that helped P&G build and
maintain a formidable market position? Are these sources of advantage still viable in
the medium-term future? What are the main dimensions of strategic change that you
would recommend P&G to consider?
3. Evaluate the position of Trian (Nelson Peltz) as well as the response of David Taylor
and the management of P&G. How would you vote in the proxy battle? How would
you defend your choice?

Sirtris Pharmaceuticals: Living Healthier, Longer

1. At the time Westphal joined Sirtris, what is your assessment of the odds that the
company will ever generate substantial revenues? If you were Westphal, would you
have left Polaris for Sirtris?
2. Should Sirtris do the deal with the pharmaceutical company? Why or why not? If you
do recommend a deal, which equity stake (20% or 51%) would you prefer?
3. Should Sirtris launch a SRT501 nutraceuticals business? Why or why not?
4. Suggest a launch plan for a nutraceuticals business?
5. Would your response to questions 2 to 4 depend on whether you considered these
decisions jointly or independently?

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 6. Would any of your responses to questions 2 to 4 depend on whether you were taking
the point of view of the founders or the investors?

Innovation at 3M Corporation (A)

1. How has 3M’s innovation process evolved since the company was founded? Why, if
at all, does 3M, known as a “hothouse” of innovation, need to regain its historic
closeness to the customer?
2. How does the Lead User research process differ from and complement other
traditional market research methods?
3. Has the Medical-Surgical team applied the Lead User research process successfully?
Why or why not?
4. What should the Medical-Surgical Lead User team recommend to Dunlop: the three
new product concepts or a new business strategy? What are the risks to the new Lead
User process at 3M? What are the risks to the Medical-Surgical business unit?