CASE STUDY

ON A NEW CEO IN AN OLD BOTTEL LOOKING FOR A NEW

STRATEGY TAKE OFF
SECTION – 1
GROUP- 1

GROUP MEMBERS ID NO
Abatneh Tibebu GSE/980214
Abrham Zeberga GSE/7502/14
Bayew Gebre GSE/2661/14
Bereket Abebe GSE/8025/14
 I. The possible CEO dilemma with its explanation

 I have too many business portfolio demands on my time,

and they all seem important. How do I prioritize?

 The existing company has many business portfolio and all are
equally important for the success of the company since the
cumulative success of the company boost the profitability of the
business.
 Do I have a good strategy to react Akobo’s Merger and
Acquisition on the key parts of the organization?

 To eliminate competition Akobo strategically move Merger and

Acquisition deals are usually done so as to allow the Akobo,
Acquirer Company, to eliminate the future competition arise on
the side of Baro Company by gaining a larger market share in
its product’s market.
 Do I have the potential to re-employe key potential
employees attracted to Akobo Corporation and same to
retain the existing ones?

 This could be a major cost implication for firms replacing staff

is the lost output that a company experiences during the period
of time that the new worker needs to get up to speed with the
role and how it is carried out in the new business.
 Do I have the potential to keep the previous image of the
Brand of the company and protecting the co-branding
effect by others?

 The co-branding strategy conducted by other company help to

understand the significance of Brand Identity and to stay active
in the market. Further impacted the existing brand image of
Baro Company.
 The existing R&D department is not productive to cope up
with and how can we do more right now?

 R&D is important for businesses because it provides powerful

knowledge and insights, it plays a critical role in the
innovation process. It's essentially an investment in technology
and future capabilities which is transformed into new products,
processes, and services
 The customer taste and preference has shifted to others,
and how I am going to attract within a short period of
time?

 The demand for the commodity will increase if customers’ taste

changes in favor of the commodity and any unfavorable change
in the taste or preference will reduce the demand for the
commodity;
 How to make an alignment of the financial problem with
the existing need of the company?

 Finance plays a significant role in the development of business

strategies because this function is in the best position to
develop financial models that prove or disprove strategic ideas
of the organization.
 II .Internal and External Forces that affect Baro Currently
a. The Internal Factors

 The internal factor assessment for Baro Company is analysed

using RBV tool. We have identified Baro through analysis of
resources and capabilities controlled by Baro Corporation.
 Financial Resources

 Poor financial position of Baro Company would be an

impediment to implement the company strategy effectively.
  Human Resources

 Human resources is one of the key resources of Baro which is

described as skills and abilities that determines the success of
the strategy. As we inferred from the case study, talented
employees are attracted to competitors and the existing staffs

are not capable enough the business.

  Intangible Resources

 Brand: The Baro company brand was strong but currently due
to co-branding effect and unable to respond the customer taste
and preferences its image has been deteriorated
 Culture it’s normally expressed in the form of core values and
the organizational culture is very poor due to poor lack of
commitment on the side of higher level staffs.
b. External Factors

 Competitive Rivalry is the external factor affecting the

company
 Shift of the customer taste and preference on some major
Baro’s products
 As we inferred from the above facts, the external factors are
the most dominant which affects the company
III Suggested strategic insight for the CEO

 Once you decide which tasks are most important, schedule them
into your calendar make a prioritization;
 To curb the identified poor performance the CEO shall introduce
Image, product and intangible repositioning strategies.
 The CEO shall make a decision to repurchase its shares from
competitors in order to defence or protect its company from
acquisition and merger threat.
 The CEO shall implement effective employement retention
strategy
 The CEO shall reorganize R&D department with clear
performance management system;
 The CEO shall take an action to reorganize R&D department
with clear performance management system;
 The CEO Shall establish strong team those who have strong
commitment the business strategy;
 The CEO shall clearly identify the root cause for shift of
customer taste and preference and prompt action shall be made
based on the findings;
 The CEO shall look for other means to raise capital as the loan
track record is not good to secure from financer.
 Thus, shall opt to dispose unproductive portfolio or shall
publicise sale of shares to the public.