- Read about Business Model page 13. Describe the business model of the current organization you work for by using the same business model components. Is that model effective? Please elaborate on this by using the knowledge learned about strategy. Give your best rationale.
- Business Critical Thinking exercise:Bottled water is a hot industry with sales of $11.8 billion in the United States. Bug players in this industry include Nestle, PepsiCo, and Coca-Cola. Nestle is the market leader with four brands among the top 10 leading brands. Nestle’s Pure Life brand was the top-selling brand with sales of $1.18 billion, but the company’s other brands makeup and additional $1.6 billion, giving the company total overall sales of almost $3 billion. Nestle saw an opportunity in this market and launched a new brand called Resource, targeted to affluent women. Resource is fortified with electrolytes and is promoted as “more than hydration, it’s total electrolytenment.” Nestle is attempting to take market share away from Glaceau’s Vitaminwater and Smartwater. If Resource attains just 3 percent market share, it will be among the top 10 selling brands. Find out how to calculate Nestle’s Pure Life and the company’s overall market share in the bottled water industry.
- Select one of the following companies: Starbucks (investor.starbucks.com), Pfizer (www.pfizer.com/investors), or Best Buy to find examples of strategic and financial objectives and more. (1) List four objectives for the company, and indicate which of these are strategic and which are financial. (2) Click on the investor relations section, and (1) explore the latest annual reports and/or 10-K filings to see if you can identify the key elements of company’s strategy. Use the framework provided in Figure 1.1 to help identify these key elements. What approach toward winning a competitive advantage does the company seem to pursue? (3) Check whether the company’s recent financial reports indicate that its business model is working. Can the company’s business model remain sound as more consumers go to the Internet to find general information and stay abreast of current events and new stories? Is its revenue stream from advertisements growing or declining? To what degree does its strategic response to changing industry conditions seem positive and deliberate versus reactive and adaptive (emergent)?
Expected outcome: Written answer based on the three questions (All participants must post this written assignment; answers must be submitted in only one word document. Submit the assignment through the W1 Turnitin link shown below.