Case Exam Questions

SUKKUR INSTITUTE OF BUSINESS ADMINISTRATION

FACULTY OF BUSINESS ADMINISTRATION

Corporate Strategy / Strategic Business Management
BBA Agri Business & BSc (Accounting & Finance)
Fall 2019

Exam Case learning Questions

Issues and analysis of situation for practical alternate solutions of problems, decisions
required with implementation plan and likely outcomes

1. What are the key issues?

1. Not having enough capital and equity to start business from the roots.
2. Targeting companies which were not the obvious choice for Alphabet
3. Attrition rate was high even investing on trainings.
4.  Bad economic condition and deteriorating revenues
5. Closing down of subsidiaries
Heavy reliance on human capital

2. What is the market cycle of the case company?

Standard Cycle
3. Exploration of various alternatives and effect in decision-making
A. strategic changes
I. the rescheduling
II. more air craft’s in same routes
III. decentralization of power
IV. take quick action according to the necessity. \
B. Operational changes
I. Proper coordination between the crews
II. Proper communication with the customers about the needed information.
III. Use mobile as a media.
4. Choosing the best alternative and your recommendations for Preferred Outcome:
(Tips: Here you choose what you’d do in this situation
You can also predict the consequences of your actions, both quantitative and qualitative
A good decision will meet what criteria? List both quantitative and qualitative criteria)
Since the picture of Alphabet is very engaging in the brains of clients and they've just situated
themselves as a low value retailor so they ought to go for the their private mark brands to hoist their
deals and their acknowledgment since it would get alphabet a great deal of influence over its rivals
and over the brands that it keeps in its very own stores. alphabet shouldn't just expand the
acknowledgment of its private name brand without anyone else store yet additionally on different
stores too to pick up the most extreme measure of piece of the overall industry.

5. It’s the basic question? How to do it – what to do when, or timing of Action/implementation

Plan
How are you going to act?
(Tips: Consider who will do what, when, where, and how
Often useful to provide a timeline for implementation of action plus monitoring and control)
Adaptable and more prominent Subsidiaries and offer incredible limits in it. That would on a rack can
give high utility to the clients collaborating with alphabet. Value advancements would be the piece of
this crusade however would be restrictive for commercial backers to make a trust among them of the
internet promoting and to cause them to redirect from different brands yet we can't not to mention the
way that the offers of different brands can't take a noteworthy decrease in their deals as it would
occupy them likewise from alphabet.

6. Pastel Analysis and any identify key factors.

Pestel define Identify/ Reasons
P These factors US has a strong democratic system, with low government policies
determine the extent and restrictions for businesses to pursue in the market. The US
to which a government, however, strictly regulates the business activities
convened with environmental issues. Perhaps, it promotes the local
government may
businesses and supports internationalization. In addition, the
influence the government has also recently recovered from financial losses,
economy or a certain making its political stance stable and strong.
industry.
E These factors are US is the largest economy in the world that gathers its strengths
determinants of an from well-developed manufacturing industries and service sector.
economy’s After the recovery from the financial crisis, the economy has
stabilized, depicted from the increased consumer consumption and
performance that
rise of the service sector in the market, leading to the development
directly impacts a of strong service and manufacturing sector in the region. In
company and have addition, the GDP rate of the country has also increased and
resonating long term stabilized, outlining the sustained market position and growth.
 effects. 
S These factors U.S, like other developed countries, is facing the issue of aging
scrutinize the social population in the market that may greatly affect the offering of the
environment of the company and may also change or trim the level of the offerings. In
addition, the increasing trend of insourcing the employee base to
market, and gauge
perform functions has increased, however, the legislation and
determinants like government regulation may hinder such a trend in the market.
cultural trends, Additionally, the markets have become technically adapted and
demographics, smart, giving rise to innovative home solutions
population analytics
etc.
T These factors pertain Technology changes rapidly, and is unforgiving to those who fall behind.
to innovations in Fortunately, Alphabet is a fast-moving company that invites the changes
in technology: especially in streaming capabilities and access. However,
technology that may this creates a strong reliance on high speed internet - one that should raise
affect the operations more than a few eyebrows. But, if internet development stays strong,
of the industry and access to Alphabet services will increase. Overall, the development of
the market favorably new and improved technology will create a wave for Alphabet: one they 3
will either ride or enjoy large profits from, or, one that will move faster
or unfavorably. than they can, and result in them being swept under.
E These factors include Consumer activism is significantly impacting Alphabet branding,
all those that marketing and corporate social responsibility (CSR) initiatives.
influence or are
determined by the - Environmental regulations can impact the cost structure of
Alphabet. It can further impact the cost of doing business in certain
surrounding markets.
environment.

L These factors have - Intellectual property rights are one area where Alphabet can
both external and face legal threats in some of the markets it is operating in.
internal sides. There
are certain laws that - Property rights are also an area of concern for Alphabet as it
needs to make significant Labor, Leadership, Organizational
affect the business culture, Talent management, and Venture capital infrastructure
environment in a investment just to enter new market.
certain country while
there are certain
policies that
companies maintain
for themselves. 

7. Analyze the changing industry structure in which EACH Company is operating by using
Porter’s Five Forces Model. How did Company counter the changes and challenges of the
industry competitive forces in which Company is operating by using Porter’s Five Forces
Model? `
Five Define Identify/ Reasons Level Actions Strategies
Forces
Are
Threat of Entry is New entrants in Low  By innovating new
new something Regional Alphabets products and services.
Entrant which will brings innovation, new New products not only
ways of doing things brings new customers to
affect
and put pressure on the fold but also give old
ongoing Alphabet Corporation customer a reason to buy
business. through lower pricing Alphabet Corporation‘s
strategy, reducing  products.
costs, and providing  By building economies
new value propositions of scale so that it can
to the customers. lower the fixed cost per
Alphabet Corporation unit. 
must manage all these  Building capacities and
challenges and build spending money on
effective barriers to research and
safeguard its development. New
competitive edge. entrants are less likely to
enter a dynamic industry
where the established
players such as Alphabet
Corporation keep
defining the standards
regularly. It significantly
reduces the window of
extraordinary profits for
the new firms thus
discourage new players
in the industry.

Bargain When All most all the High  By building efficient

power of suppliers companies in the supply chain with
suppliers could Regional Alphabets multiple suppliers.
industry buy their raw  By experimenting
increase
material from numerous with product designs
costs for suppliers. Suppliers in using different
raw dominant position can materials so that if
material decrease the margins the prices go up of
Alphabet Corporation one raw material then
can earn in the market. company can shift to
Powerful suppliers in another.
Services sector use their  Developing dedicated
negotiating power to suppliers whose
extract higher prices business depends
 from the firms in upon the firm. One of
Regional Alphabets the lessons Alphabet
field. The overall Corporation can learn
impact of higher from Wal-Mart and
supplier bargaining Nike is how these
power is that it lowers companies developed
the overall profitability third party
of Regional Alphabets. manufacturers whose
business solely
depends on them thus
creating a scenario
where these third-
party manufacturers
have significantly
less bargaining power
compare to Wal-Mart
and Nike.

Bargain Where Buyers are often a High  By building a large

power of customer demanding lot. They base of customers.
buyers could use want to buy the best This will be helpful
offerings available by in two ways. It will
another
paying the minimum reduce the bargaining
brand price as possible. This power of the buyers
put pressure on plus it will provide an
Alphabet Corporation opportunity to the
profitability in the long firm to streamline its
run. The smaller and sales and production
more powerful the process.
customer base is of  By rapidly innovating
Alphabet Corporation new products.
the higher the Customers often seek
bargaining power of the discounts and
customers and higher offerings on
their ability to seek established products
increasing discounts so if Alphabet
and offers. Corporation keep on
coming up with new
products then it can
limit the bargaining
power of buyers.
 New products will
also reduce the
defection of existing
customers of
Alphabet Corporation
 to its competitors.

Threat of This refers When a new product or Moderate  By being service

substitute to the service meets a similar to High oriented rather than
s likelihood customer needs in just product oriented.
different ways, industry  By understanding the
of your
profitability suffers. For core need of the
customers example, services like customer rather than
finding a Dropbox and Google what the customer is
different Drive are substitute to buying.
way of storage hardware  By increasing the
doing what drives. The threat of a switching cost for the
you do substitute product or customers.
service is high if it
offers a value
proposition that is
uniquely different from
present offerings of the
industry.
Rivalry Increased If the rivalry among the High  By building a
competitio existing players in an sustainable
n in the industry is intense then differentiation
it will drive down prices  By building scale so
market
and decrease the overall that it can compete
profitability of the better
industry. Alphabet  Collaborating with
Corporation operates in competitors to
a very competitive increase the market
Regional Alphabets size rather than just
industry. This competing for small
competition does take market.
toll on the overall long-
term profitability of the
organization.

8. You are also advised to conduct a strength, weaknesses, opportunities and threats
(SWOT) analysis for the Company and provide strategic suggestions based on analysis.
Identify
Opportunities:  Since the company has developed a separate identity in terms of
1…..6…..xx organizational culture and formation, it has the opportunity to
manage its pricing strategy in the market, allowing it to
maintain customer loyalty.

 Since the company will target the online platform, it has the
 opportunity to gather immense sales from the online channels.

 The extensive market development will lead to market dilution,

making a clear stance for Alphabet in the market.

 Since environmental policies are changing in the market, it may

offer the opportunity to company to develop environmental
friendly technology, capitalizing the opportunity on a big scale.

Threats:  Since in the US, the increasing trend of bringing business back
1…..6…..xx to the US has taken a strong grip, expanding the services in the
international market may become an issue for the company due
to governmental policies.

 It may face high threat of imitation in different markets due to

different policies and legal structure.

 The difference in liability laws may hinder the performance of

Alphabet due to different liability charges.(Harness, 2015)

Strength:  Alphabet has a strong search engine due to its parent company’s
1…..6…..xx resources and its stance in the external market.

 Alphabets has there sources and skills to develop new products

and services without any hindrance.

 Since the company has energy and aim to create new market
dynamics, it has a strong culture and innovation adoption,
making it a strong player in the market.

 The company has a strong ecosystem of products and services

and an especially strong position in the online advertising
segment, making it utilize the platform for further market
acquisition.(Reeves, 2015)

 Lastly, the company has a massive amount of information,

through Google platforms, making it analyze the customer
needs and changing market dynamic effectively.

Weakness:  Though Alphabet has strong assets and market value, it faces
1…..6…..xx issues in diversifying the product line.

 It faces challenges in maintaining its brand image in the niche

sectors such as Apple is offering, due to non-aligned market and
 organizational strategy.

 The financial planning is not done properly, leading to

ineffective investment in the projects, resulting in losses.

 It has weak culture, though it is trying to develop the culture,

the traditional cultural roots still exist in the firm.

9. What are the Four Criteria of Sustainable Competitive Advantage which the company
uses its resources and capabilities to get competitive advantage and why is it so
successful in it?
Answer: VRIO stands for – Value of the resource that Alphabet possess, Rareness of
those resource, Imitation Risk that competitors pose, and Organizational Competence of
Alphabet. VRIO and VRIN analysis can help the firm.

Competitive
Resources Value Rare Imitation Organization Advantage
Distribution and Yes, as it helps in No Can be imitated by Yes Medium to Long
Logistics Costs delivering lower competitors but it Term
Competitiveness costs is difficult Competitive
Advantage
Pricing Strategies Yes No Pricing strategies Yes, firm has a Temporary
are regularly pricing analytics Competitive
imitated in the engine Advantage
industry
Track Record of Yes, especially in Yes, especially No, none of the Yes, company is Providing Strong
Project Execution an industry where in the segment competitors so far successful at it Competitive
there are frequent that Alphabet has able to imitate Advantage
cost overrun operates in this expertise

10. Define the purpose and identify the activities of company’s value chain?

Inbound logistics: Web-based booking instead of booking through ticketing agents gives
greater control on managing seat sales. Customers won’t get bumped.

Outbound logistics: New A320s are larger and more fuel efficient. Less congested airports help
quicker and on time flight departure.

Operations: Paperless cockpit, no meals served, no paper tickets, all reduce time and costs.
Single aircraft type keeps training costs low and manpower utilization.
 Marketing and sales: web-based ticketing as a distribution channel market segment
properly identified i.e. business travelers flying point to point , effective pricing.

Service: Constant communication with customer to keep them informed of changes or

inconveniences. Customers are refunded sometimes when there are inconveniences. CEO
travels regularly to get customer feedback first-hand. Investments in training for service
orientation.

Procurement: Well-conceived aircraft procurement plan to support growth

Technology development: Investments in technology from beginning of the Alphabet.

Process initiatives such as automated baggage handling, web-based ticketing, paperless
cockpit.

HRM: non-unionized workforce, reward system such as stock options, profit sharing,
crewmembers’ policies.

Infrastructure: Top management with Alphabet business expertise, ability to coordinate and
integrative activities across the value system and highly visible in inculcate organizational
culture reputation and values

11. Describe Company’s Business strategic positioning and key business strategies
a. Cost leadership Strategy
b. Paperless Alphabets
c. Building of top management
d. Allowing laptops to pilots
e. Supervisors as coaches
f. No union
g. Buying new planes instead of leasing them
h. 65% less fares than the competition
i. Customized employee packages 
12. Develop a Competitive Profile Matrix (CPM)
Total Weight 1.00. Rating 1to 4

Alphabet Southwest American

Express
Critical Success Weigh Ratin Weighte Ratin Weighted Ratin Weighte
Factors t g d Score g Score g d Score
Technological 0.2 4 0.8 4 0.8 3 0.6
advancement
 Strong brand image 0.2 3 0.6 4 0.8 2 0.4
Low cost strategy 0.1 4 0.4 3 0.3 2 0.2
Strategic location of 0.1 3 0.4 4 0.4 3 0.3
hub

0.2 3 0.6 3 0.6 2 0.4

Employee expertise
0.2 3 0.6 3 0.6 2 0.4
Customer centric

Total 3.2 3.5 2.3

13. Develop External Factor Evaluation (EFE) Matrix

Total Weight 1.00. Rating 1to 4

Key External Factors Weight Rating Weighted

Score
Opportunities
1. Industry expansion 0.2 4 0.8
2. Route and fleet expansion 0.1 3 0.3
3. Technological advancement 0.2 4 0.8
4. Penetration in US market 0.1 2 0.2
Threats
1. Fuel price fluctuation 0.1 3 0.3
2. Strong competition 0.1 3 0.3
3. Security issues 0.1 3 0.3
4. Employee unions 0.1 2 0.2
TOTAL 1.00 3.2

14. Develop an Internal Factor Evaluation (IFE) Matrix

 Total Weight 1.00. Rating 1to 4

Key Internal Factors Weight Rating Weighted

Score
Strengths
1. Low operating cost 0.1 4 0.4
2. Strong brand name 0.2 3 0.6
3. Efficient employees 0.1 4 0.4
4. Customer satisfaction 0.1 3 0.3
5. Innovative and technological advancement 0.1 3 0.3
Weaknesses
1. Single aircraft model 0.1 3 0.3
2. Concentration on middle class 0.1 2 0.2
3. High maintenance cost 0.1 3 0.3
4. High turnover of employees 0.1 4 0.4
TOTAL 1.00 3.2

15. Develop a Grand Strategy Quadrants Matrix for the Company

16. Develop an Internal-External (IE) Matrix

The IFE Total
Weighted Score
 Strong Averag Weak
e
3.0 to 2.0 to 1.0 to
4.0 2.99 1.99

High I II III
Alpha
bet

Medium IV V VI

Low VII VIII IX

17. Develop a Quantitative Strategic Planning Matrix (QSPM) and recommended option
Total Weight 1.00. Rating 1to 4

Strategic Alternatives
strategic Expansion via
alliance serving in new
routes
Key Internal Factors
Weight
Strengths Rank Total Rank (1- Total
(1-4) Weig 4) Weig
htage htag
Weight
e
Low operating cost 0.1 3 0.3 3 0.3
Strong brand name 0.2 3 0.6 2 0.4
Efficient employees 0.1 4 0.4 2 0.2
Customer satisfaction 0.1 3 0.3 2 0.2
Innovative and technological advancement 0.1 3 0.3 4 0.4
Weaknesses
5. Single aircraft model 0.1 3 0.3 3 0.30
 6. Concentration on middle class 0.1 4 0.4 3 0.3
7. High maintenance cost 0.1 3 0.3 2 0.2
8. High turnover of employees 0.1 2 0.2 2 0.2
SUBTOTAL 1.00 3.3 2.5

strategic Expansion via

alliance serving in new
routes
Key External Factors
Weight
Opportunities Rank Total Rank Total
(1-4 Weigh (1-4 Weigh
Weig
tage tage
ht
5. Industry expansion 0.2 3 0.6 3 0.6
6. Route and fleet expansion 0.1 4 0.4 2 0.2
7. Technological advancement 0.2 3 0.6 4 0.8
8. Penetration in US market 0.1 3 0.3 3 0.3
Threats
5. Fuel price fluctuation 0.1 4 0.4 3 0.3
6. Strong competition 0.1 3 0.3 4 0.4
7. Security issues 0.1 2 0.2 3 0.3
8. Employee unions 0.1 2 0.2 2 0.2
SUBTOTAL 1.00 3,0 3.1
SUM TOTAL ATTRACTIVENESS SCORE 6.3 5.6

Recommendations
1. New advertising campaign to raise awareness among the target group.
2. Start a Website which will be user friendly and attract new people.
3. Start flying Internationally.
4. Focus on Alliances with other Alphabets.
5. Improve Fuel hedge opportunities.