STRATEGIC MANAGEMENT

GRAMERCY PARK CASE

STUDY…

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 1
 INTRODUCTION
 Strategic management has very many tools
and techniques that can help Washington
and Wilson in managing and growing their
business in future. These tools and
techniques also will look at the current
failures and successes of the Gramercy
Park company so that Washington and
Wilson will be able to formulate clear
strategies that they will use in future.

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 2
EXAMPLES OF TOOLS AND
TECHNIQUES
 Analysis of critical success factors,
 Benchmarking,
 What-if-analysis,
 SWOT analysis,
 Porter’s five-force analysis,
 Product life cycle analysis,
 PESTEL analysis,

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 3
 ANALYSIS OF CRITICAL
SUCCESS FACTORS
 A key area where satisfactory
performance is required for the
organization to achieve its goals.
 A means of identifying the tasks and
requirements needed for success.
 A means to prioritize requirements

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 4
 ANALYSIS OF CRITICAL SUCCESS
FACTORS
 Produces results that express the needs
of the enterprise clearly and (hopefully)
completely
 Allows us to measure success and
prioritize goals in a sensible way
 When used together with traditional
usage scenarios, ensures that the needs
of both the user and the enterprise are
being met

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 5
BENCHMARKING
 Benchmarking is the process of comparing
the cost, cycle time, productivity, or quality
of a specific process or method to another
that is widely considered to be an industry
standard or best practice.
 Benchmarking is a process for improving
performance by constantly identifying,
understanding and adapting best practices
and processes followed inside and outside
the company and implementing the results.
DBA 401: GROUP 10 GRAMERCY PARK
12/07/2021 ANALYSIS 6
PROCEDURE OF BENCHMARKING

 Identify your problem areas Identify

other industries that have similar
processes Identify organizations that
are leaders in these areas Survey
companies for measures and
practices Visit the "best practice"
companies to identify leading edge
practices Implement new and
improved business practices
DBA 401: GROUP 10 GRAMERCY PARK
12/07/2021 ANALYSIS 7
GUIDELINES FOR SUCCESSFUL
BENCHMARKING
 Thorough understanding of one's own
processes. Emphasis on industry best
practices. Company or plant visits. Selection
of appropriate benchmarking partners and
techniques. The benchmarking partner's
willingness to share information. Maintaining
confidentiality of critical information.
Involvement of management and employees
in the analysis of best practices. Emphasis on
practices and processes, not on end results.

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 8
BENCHMARKING CONT…
 Benchmarking should be a continuous
process as the competition is always
changing. Commitment towards adaptation
and implementation of best practices.
Selection and empowerment of benchmarking
teams. Willingness to change as per the
findings of the benchmarking study. The
adaptability of the practices should be tested
and the implementation results should be
verified. Strict adherence to the
benchmarking.
DBA 401: GROUP 10 GRAMERCY PARK
12/07/2021 ANALYSIS 9
 SWOT ANALYSIS
 Internal
Strengths
Weaknesses
 External
Opportunities
Threats – risks
DBA 401: GROUP 10 GRAMERCY PARK
12/07/2021 ANALYSIS 10
 SWOT QUESTIONS
 Strengths: What are the strengths?
Successful areas as examples of good
practices
 Weaknesses: What are the
deficiencies? Areas that need to be
improved
 Opportunities: how can we use
education reforms, funding
programmes?
 Threats: what are risks, obstacles,
sustainability problems?
DBA 401: GROUP 10 GRAMERCY PARK
12/07/2021 ANALYSIS 11
 SWOT Matrix
Strengths Weaknesses

Opportunities S-O strategies: W-O strategies:

build on success use opportunites to
address
weaknesses

Threats S-T strategies: W-T strategies:

use success to defensive actions
minimize threats vs. susceptible
areas

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 12
 SWOT STRATEGIES
 S-O strategies: build on success,
good practices, models
 S-T strategies: use success to
minimize threats
 W-O strategies: use opportunities to
address weaknesses
 W-T strategies: defensive actions vs
susceptible areas

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 13
PORTER’S FIVE FORCES
MODEL
An industry’s profit potential is largely
determined by the intensity of competitive
rivalry within that industry.
Porters Five Forces …
 Threat of Entry
 Bargaining Power of Suppliers
 Bargaining Power of Buyers
 Development of Substitute
 Rivalry among Competitors

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 14
BARRIES TO ENTRY
 large capital requirements or the need to
gain economies of scale
 quickly.
 strong customer loyalty or strong
 brand preferences.
 lack of adequate distribution
 channels or access to raw materials.

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 15
POWER OF SUPPLIER
high when:
 A small number of dominant, highly
 concentrated suppliers exists.
 Few good substitute raw materials or
 suppliers are available.
 The cost of switching raw materials
 or suppliers is high.

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 16
THREAT OF SUBSTITUTE
competitive strength high when:
 The relative price of substitute products
declines .
 Consumers’ switching costs decline.
 Competitors plan to increase market
 penetration or production capacity.

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 17
THREAT OF RIVALRY
intensity increases as:
 The number of competitors increases or
they become equal in size.
 Demand for the industry’s products
 declines or industry growth slows.
 Fixed costs or barriers to leaving the
 industry are high.

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 18
THREAT OF BUYER
 This is brought about by the bargaining power of
the buyer. If the buyer continually demands for
lower prices, the management will have to make a
plan in place that will deal with the customers
demands especially if competing firms have lower
prices. Washington and Wilson must draw a buyers
strategy that will weaken the buyers power and
make them powerful in the gym market. E.g. they
can decide to buy out their rivals so as to reduce
any competition and hence making it difficult for the
buyer to have power over the service pricing.

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 19
PRODUCT LIFE CYCLE ANALYSIS

This is an analysis of the particular stage

that the product/industry is in during it’s life.
Five stage of product life-cycle are:
 Decline stage
 Closure stage
 Maturity stage
 Growth stage
 Emergence/pioneering stage

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 20
 GRAPH OF PRODUCT LIFE CYCLE

a b c d e

a. Pioneering/emergence
b. growth
c. Maturity
d. Decline
e. Closure
DBA 401: GROUP 10 GRAMERCY PARK
12/07/2021 ANALYSIS 21
 PESTEL ANALYSIS
 Political – authoritative support
“political will”, popular support
 Economic – resources mobilization
 Sociological – organizational,
institutional support
 Technological – technical, logistical
 Legal – legislation, laws, rules,
regulations
 Environment – immediate and external

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 22
 END….

DBA 401: GROUP 10 GRAMERCY PARK

12/07/2021 ANALYSIS 23