FIN 4720- Global Strategy

GLOBAL STRATEGY AND POLICY – MAN 4720: SCHWARTZ

Course DOCUMENT NUMBER 7

VRIO EXERCISE: USING RESOURCES TO SUSTAIN AN ADVANTAGE

Based on three case studies taken from Mintzberg and Quinn (1991)

This the second of four self -test exercises, each worth 1.5 points, awarded after copies of the completed exercises have all been submitted. They are designed for you to test you own general business knowledge and, perhaps pay greater attention business news in the future. See the syllabus schedule for due dates. You will receive an answer sheet with your grade.

Family name

Z number (last 4)

First name

Submitted

MM/DD/YY

Ernest & Julio Gallo

The New York Times

Sony Corporation

Product or service: price and marketing strategy

Early market strategies featured a cost leadership strategy and strict control of distribution channels.

Unlike most newspaper, the number of news page is not linked to a ratio based on advertising space sold.

Began as a producer of cheap low-end electronics such as the “Walkman” and was not selective in product mix

Market conditions dictate refocusing for bottom line oriented strategies

Responding to increasingly sophisticated consumers, adopted a differentiation strategy focused on higher priced quality product.

After a short period of other media acquisitions it began divesting many of them to refocus on core business and electronic delivery of news.

Shifted its core competency toward research and development. A differentiation strategy was implemented by focusing on high end quality products.

Image impacts financial health

Image changed from cheap low quality to higher quality but still reasonably priced product.

Maintains its 150 year old image as America’s benchmark news source. Is true to its mission of “all the news that’s fit to print”.

Sony was instrumental in changing Japan’s image from imitator to innovator. Strategy presently seems more focused on implementation than on formulation

Corporate structure

Corporate structure is likely product divisional but the business remains under family control.

The company has moved away from becoming a conglomerate and is either divisional or SBU

Sony is ambivalent as to whether or not it is or will become a conglomerate and remains a strategic business unit structure

Rate each of the above five vertical axis elements as high, medium or low. The more closely each fits the Wheelen and Hunger definitions, P 130/131, the higher the value. State your reasons in a few words.

Five criteria

Ernest & Julio Gallo

The New York Times

Sony Corporation

Rating

Main Reason

Rating

Main Reason

Rating

Main Reason

Durability

Imitability

Transparency

Transferability

Replicability

Other comments

CD07 Mintzberg & Quinn VRIO self test exercise