MGT599 Strategic Management
Module 1 CASE
STRATEGIC MANAGEMENT PROCESS/VISION, MISSION, GOALS AND OBJECTIVES
Assignment Overview
The MGT599 Case is an ongoing exercise, meaning that we will be thoroughly reviewing one company throughout our four modules. This session, we will be conducting a strategic analysis of Pepsico.
Most companies have something that resembles a vision, mission, or set of values; or stated goals/objectives that define who the company is and how the company plans to do business. However, organizations may not always label these statements properly — calling a vision a mission, or calling their values a set of beliefs. Sometimes, companies do not have a mission statement at all, operating instead on a set of goals.
Required Reading
Hammonds, K. (2007). Michael Porter's big ideas. Fast Company, 44. Retrieved on August 27, 2014, from https://www.fastcompany.com/42485/michael-porters-big-ideas
Case Assignment
In this assignment, you will be critically evaluating the vision, values, mission statement, and goals/objectives of Pepsico.
Keys to the Assignment
After studying the background materials and completing the SLP, you are in an excellent position to evaluate a company's published mission, vision, values, and objectives/goals. This Case asks you to begin your strategic analysis of Pepsico by evaluating the company's mission, vision, values, and goals. To do this, observe the following procedure:
Step 1: Visit the official website of Pepsico and identify the company’s vision, mission, values, and goals. (Hint: You will need to do some exploring and a certain amount of speculation—as the terms "vision" and "mission" (and sometimes even the term "company goals") are used interchangeably. Explore the "Who We Are" and "Investors" (and other) links. Also, be sure that you look closely at the most recent Annual Reports.
Step 2: Critically evaluate the mission, vision, values, and goals (again, you will likely need to make decisions as to which is which). Use the criteria in the background materials to support your assessment of the quality of the company's mission, vision, values, and goals.
Step 3: Determine which (if any) of the elements consider the goals and needs of specific stakeholder groups. Write down any examples.
Step 4: Consider what changes are needed to improve the vision statement, the mission statement, the statement of company values, and the company's objectives and goals.
Step 5: Write a 6-7 page paper addressing the above requirements. You must meet minimum length requirements, by responding to each step above with precision and with depth of critical thinking.
NOTE THE FOLLOWING REQUIREMENTS AS WELL:
Use of proper APA style is required in this course. Therefore, prepare your Case with proper documentation of sources, using in-text citations and a complete end reference list. Refer to the Well-Written Paper guide if you are not familiar with APA style.
Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as Pepsico’s external consultant. This is a professional document. Follow the format below:
Note: You must use section headings to respond to all major requirements in all papers. Your section headings should appear similar to the following:
Executive summary: This is a synopsis of the main points, conclusions, and recommendations made in the longer report. If you have never written an executive summary before, or would like a refresher, check this link: http://www.csun.edu/~vcecn006/summary.html
Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
Main Body: The "meat" of the paper. Emphasize analysis, not just description. Don’t just give me facts – interpret them! Delineate separate topics or sections with appropriate use of headings.
Executive Summary
Introduction
Company's Mission Statement and Analysis
Company's Vision and Analysis
Company's Values and Analysis
Alignment of Company's Mission, Vision, Values, and Goals with Stakeholders' Interests
Recommended Changes
Conclusion
MGT599 Strategic Management
Module 1 SLP
STRATEGIC MANAGEMENT PROCESS/VISION, MISSION, GOALS AND OBJECTIVES
Simulation
To begin the MGT599 SLP sequence, you first need to first run the simulation using the Default Decisions. In other words, use the prices and R&D percentages that are already there (do not change any decisions made by Joe Thomas).
Capture or collect the results for each product (W1, W2, and W3) for each year that you run the simulation. Copy (using Excel, by hand, or some other method) the financial results and marketing results, as well as the information provided by your Advisor.
REQUIRED READING:
Read the following scenario carefully before you proceed:
SCENARIO
It is December 31, 2016. Joe Thomas, the VP of Marketing at the Wonder Company, is smugly patting himself on the back for how well he has done with pricing and product development of the three company products: W1, W2, and W3. Of course, Joe knows his strategy was not creative at all (i.e., he did not change any prices or R&D allocations over the past five-year period: 2012 through 2016). But he is certain that he really did not need to change anything anyway, and that his overall performance is proof of his good work.
Sally Smothers, the CEO of Wonder Co., knows better, and she fires Joe (but why did she wait so long?).
On the same day Joe is fired, you are hired to replace him. And so…here you are, on December 31, 2016, as the new V.P. of Marketing of the Wonder Company. You are ready to move the company ahead into 2017. Your boss, Sally Smothers, expects you to make intelligent and informed product development and pricing decisions (after all, you are an MBA).
Session Long Project
Write a 6- to 7-page paper (not including cover and reference pages), using Sally’s instructions, which follow:
Sally asks you to review Joe’s decisions from 2013 through 2016 to see what was going on in terms of product development, sales, pricing, and performance. Your final report is due on Sally's desk by January 15, 2017 – you have only 2 weeks to run the simulation, analyze your results, and write up the report, so you had best get started on this now!
Using the default decisions (i.e., make no changes within the simulation), analyze Joe Thomas's decisions and results, and then write the report that Sally is requesting. Access the Wonder Company simulation and collect the data for each year. Determine where you believe Joe went wrong, and propose a new strategy. Support your revised strategy using financial analysis and relevant business theories.
KEYS TO THE ASSIGNMENT:
The key aspects to this assignment that are required to be covered in your paper include:
A review of each product – W1, W2, and W3 – its life cycle, and how each product stacks up in terms of price and performance.
Financial review of each product – W1, W2, and W3 – sales, costs, profitability, prices, unit margins, etc.
Market review: New Sales, Repeat Sales, Market Saturation, etc.
Propose an alternate strategy: A general idea of how you might do better with these products: what pricing and R&D allocations, etc., you would have put in place over the last four years, 2013 – 2016. In short, what would you have done differently than Joe Thomas at each decision point? Be specific.
MGT599 Strategic Management
Module 2 CASE
THE EXTERNAL ENVIRONMENT, INTERNAL PROFILE, AND SWOT
Assignment Overview
Remember that the Case in this course is an ongoing exercise, meaning that we will be taking an intensive look at one company over the course of our four modules. This session, we will be conducting a strategic analysis of Pepsico.
The outcome of this Case is to use a completed external and internal analysis of Pepsico in the completion of a SWOT.
Case Assignment
In a 7- to 10-page paper, integrate your external and internal company analysis, completing a formal company SWOT.
Keys to the Assignment
Step 1: Perform research, and complete an industry analysis using each of the Five Forces in Porter's model. Support your analysis with current financial, operational, and marketing data.
Step 2: Complete your external analysis using each of the four elements in the PEST analysis. When considering economic data, use the most current data you can find.
Step 3: Write up the results of your external analysis, and be sure to label the impact of each of the Five Forces as high, moderate, or low. Taken together, the Five Forces analysis and the PEST analysis should lead to conclusions about the overall opportunities and threats facing Pepsico as revealed by your research. All data and factual information that you report in your Five Forces and PEST analysis must be properly cited using APA style.
Step 4: Conduct a critical and thorough internal analysis of Pepsico, assessing as many of the company’s key internal strengths and weaknesses as you can. Consider the operations, customer service, finance, human resources management, and marketing functions. See the following website, as it will help you decide which strengths and weaknesses you might wish to evaluate: http://www.businessballs.com/swotanalysisfreetemplate.htm
Step 5: Discuss the results of your internal analysis, including your conclusions concerning the strengths and weaknesses facing Pepsico.
Step 6: Synthesize your internal analysis with your external environmental analysis, formulating a complete SWOT analysis. Provide a SWOT diagram (include as an Appendix – not as part of the written analysis) in which you show – in each of the four quadrants – the most important 3-4 company strengths, weaknesses, opportunities, and threats. Each of these should be discussed thoroughly within your written analysis.
Based on your SWOT, give very specific and informed recommendations as to what the company should do. Give your overall analysis—does the company have more strengths than weaknesses? More weaknesses than strengths? Whatever you decide, you need to recommend (with strong, convincing support) what you believe should be the company’s strategy — in response to your collective assessment of the organization's strengths, weaknesses, opportunities, and threats. You must demonstrate evidence of critical thinking – do not simply restate facts you have learned about the company. Interpret the data and factual information you have found instead.
Step 7: Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as Pepsico's external consultant. This is a professional document. Follow the format below:
Executive summary: This is a synopsis of the main points, conclusions and recommendations made in the longer report. If you would like a refresher on writing an executive summary, check this website: http://www.csun.edu/~vcecn006/summary.html
Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
Main Body: The "meat" of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with section headings.
Conclusion: Summarize your paper in the light of your thesis statement.
MGT599 Strategic Management
Module 2 SLP
THE EXTERNAL ENVIRONMENT, INTERNAL PROFILE, AND SWOT
Simulation
Wonder Company Simulation
Simulation
The Module 2 SLP requires that you continue with the scenario and simulation you began in the Module 1 SLP.
SCENARIO CONTINUATION
SLP2 – It is January 15, 2017. You have finished analyzing the performance of the Wonder Company, and you have submitted the report requested by your CEO, Sally Smothers. You are ready to move forward to 2017, but then…..
….as you turn on the TV, you notice something very strange. You recognize that the date is January 1, 2013, and that you get to make the decisions for the Wonder Company for the 4-year period beginning with 2013. Your challenge is to do better than Joe Thomas.
At the beginning of each year (2013-2016), you will determine your pricing, your R&D allocations, and whether or not to discontinue any products. You are required to make your decisions for each year, and to report your results to see what happened. You must keep track of your decisions, making specific notes supporting each of your decisions.
Run the Wonder Co. simulation through the end of 2016. When you are finished, the date will be December 31, 2016. What is your total Score? Did you do better than Joe Thomas?
You organize your notes about your decisions, your analysis, and your reasoning into a well-written report.
Session Long Project
Run the Wonder Company simulation with your strategy, making decisions year by year for prices and R&D allocations. Write a 6- to 7-page paper, not including cover and reference pages, in which you discuss the decisions and the results for each year. Discuss why you did better (or worse) than Joe Thomas.
KEYS TO THE ASSIGNMENT
The key aspects of this assignment that should be covered and taken into account in preparing your paper include:
As you run the simulation, keep track of your decisions and the results – both financial and marketing. Copy and paste the results into Excel or into a Word document. You will also want to record the information that you get from the Advisor. Make a note of your Final Total Score.
Include your Final Total Score, some tables, and/or graphs showing key results. Using sound logic, be sure to clearly explain the differences from Joe.
Remember that the key here is quality of analysis.
Time Line Summary:
SLP1
2016: You are hired on December 31, 2016.
Turned in first report to the CEO on January 15, 2017.
SLP2
You again find yourself in a Time Warp that takes you back to January 1, 2013.
You revise the decisions made by Joe for 2013 – 2016. You make new decisions each year.
December 31, 2016 – You have gone through all four years, and you write your second report to summarize how you did.
MGT599 Strategic Management
Module 3 CASE
STRATEGIC CHOICES
Assignment Overview
The Case in this course is an ongoing exercise, meaning that we will continue to review one company over the course of our four modules. In Module 3, we will be conducting a strategic analysis of Pepsico.
Specifically, the Module 3 Case requires that you identify the primary business strategy employed by Pepsico. You will also be providing a critical, written analysis evaluating that strategy in the context of the strengths, weaknesses, opportunities, and threats you identified in Module 2.
Required Reading
Refer to the required and optional readings related to strategic choices, the theme of Module 3.
Case Assignment
In a 6- to 8-page paper, respond to the following:
Which of the four generic (Porter) strategies does Pepsico follow, and how do you know?
Integrate the strategy you have identified above with the strengths, weaknesses, opportunities, and threats you identified in Module 2 (this exercise should provide you with some specific actions the company should be taking relative to its strengths, weaknesses, opportunities, and threats. These actions are referred to as "strategic choices"). Do Pepsico’s strategic choices align with the firm's generic strategy? If not, what are the specific points of disconnect? Think critically about this step, as no company achieves perfect alignment of its strengths, weaknesses, opportunities, and threats with its chosen strategy. As the MBA, it is your job to uncover the discrepancies and problems.
How can Pepsico leverage its strengths and shore up its weaknesses by altering its strategic choices? How can the company take advantage of environmental opportunities and minimize environmental threats by altering its strategic choices? Be specific.
Complete the paper by commenting on how your view of Pepsico’s vision and mission has changed or has been reconfirmed by this process of strategic analysis. Would you make any suggestions to revise the company's vision, mission, or values statements, or to any of its goals/objectives?
5. Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as Pepsico’s consultant. This is a professional document. Follow the format below:
Executive summary: This is a synopsis of the main points, conclusions, and recommendations made in the longer report. If you would like a refresher on writing an executive summary, check this website: http://www.csun.edu/~vcecn006/summary.html
Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
Main Body: The "meat" of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with headings.
Conclusion: Summarize your paper in light of your thesis statement.
MGT599 Strategic Management
Module 3 SLP
STRATEGIC CHOICES
Wonder Company Simulation – CVP Analysis
Simulation
In Module 3, you will use CVP analysis to inform the pricing of your three products.
SCENARIO CONTINUATION:
You have now completed SLP2, and the date is (once again) reset to January 15, 2017.
You turn on the TV. The local television news anchor is talking about events that occurred on January 1, 2013.
Your decision-making process will be different this time, as you will be using CVP analysis, a technique with which you recently became familiar.
You analyze the results of the decisions you made in SLP2. But this time, you aim to improve your Final Total Score by using the CVP Calculator to help you determine a new and improved strategy.
You analyze your SLP2 results using CVP and develop your complete four-year strategy, again taking notes, documenting your reasoning.
You finish the report that shows your revised strategy for the next four years.
Do not run the simulation yet. Simply turn in your written report.
Session Long Project
Write a 6- to 7-page paper, not including cover and reference pages, in which you use the results from SLP2 and CVP analysis to develop a revised strategy.
Keys to the Assignment
The key aspects of this assignment that should be covered and taken into account in preparing your paper include:
The revised strategy consists of the Prices, R&D Allocation %, and any product discontinuations for the W1, W2, and W3 tablets for each of the four years: 2013, 2014, 2015, and 2016.
You must present a rational justification for this strategy. In other words, you must provide clear and logical support for your proposed strategy using financial analysis and relevant business theories.
Use the CVP Calculator and review the PowerPoint that explains CVP and provides some examples.
You need to crunch some numbers (CVP Analysis) to help you determine your prices and R&D allocations.
Make sure all of your proposed changes are firmly grounded in CVP analysis, on the financial and market data provided to you, and on sound business principles.
Present your analysis professionally, making strategic use of tables, charts, and graphs.
Time Line Summary:
SLP1
2016: Hired on December 31, 2016.
Turned first report in to Sally on January 15, 2017.
SLP2
Time Warp 1 begins: January 15, 2017. You are warped back to January 1, 2013.
You realize you have to make decisions for 2013 – 2016, which you do.
December 31, 2016 – You have gone through all four years, and you write your report to summarize how you did.
SLP3
Despite your efforts in SLP2, you are once again taken back to January 1, 2013. You decide to use CVP analysis to revise the four-year plan you developed in SLP2. You analyze the results of your decisions from SLP2, taking detailed notes. You use the CVP Calculator to help develop your revised strategy, taking additional notes explaining the logic of your decisions.
MGT599 Strategic Management
Module 4 CASE
STRATEGY IMPLEMENTATION AND STRATEGIC CONTROLS
Assignment Overview
This final case involves an analysis of strategy implementation at Pepsico. You will use the resources you identified in the SLP to gather information about the company and relate that information to your work in the previous cases.
Required Reading
Refer to the required and optional readings related to strategy implementation and strategic controls, the themes for this module.
Case Assignment
In Module 4, we will conclude the case study process by researching Pepsico’s strategic controls and their fit with the company's chosen strategy.
Keys to the Assignment
Step One: Review your Case papers from Modules 1-3 so that you are familiar with the mission, vision, SWOT, strategy, and strategic choices you have identified over the course of the class.
Step Two: Research the structure, systems, people, and culture at Pepsico. You will not be able to get answers to every single question, but you will need to answer at least one or two for each component.
Step Three: Describe Pepsico’s organizational design, key strategic control systems (e.g., budgeting and variance analysis systems), primary human resources concerns, and cultural factors, and the effect that these have had on the implementation of Pepsico’s strategy.
Step Four: In a 6- to 8-page paper, critically evaluate the fit—or the lack of fit—between the company's mission, strategy, and organizational components crucial to implementation. Do these components complement the strategy? Why or why not?
Step Five: Choose three of the 13 ethical "prescriptions" included in the following article: https://www.scu.edu/ethics/focus-areas/business-ethics/resources/incorporating-ethics-into-the-organization/ . Next, discuss the extent which the company's sense of business ethics has been embedded within its strategic management process, as evidenced by your chosen three indicators.
Step Six: What changes would you—as the CEO—make to better assure the success of the company's strategy? This is the most important section of the Module 4 Case.
Step Seven: Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as Pepsico’s consultant. This is a professional document. Follow the format below:
Executive summary: This is a synopsis of the main points, conclusions, and recommendations made in the longer report. If you would like a refresher on writing an executive summary, check this website: http://www.csun.edu/~vcecn006/summary.html
Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.
Main Body: The "meat" of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with headings.
Conclusion: Summarize your paper in the light of your thesis statement.
MGT599 Strategic Management
Module 4 SLP
STRATEGY IMPLEMENTATION AND STRATEGIC CONTROLS
Simulation
In Module 4, you will continue with the CVP analysis you completed in the Module 3 SLP.
Scenario Continuation:
It is still January 2, 2013. You have just completed your revised SLP3 strategy using CVP analysis, and you are eager to implement your decisions for 2013 through 2016.
Using the CVP analysis from SLP3, run the simulation for a final time. Again, be sure to take notes about your analysis and document the reasoning behind your decisions.
Finalize your report showing the strategy you have used.
Assignment Overview
Using the strategy that you developed in SLP3, run the simulation. Document your results as you did previously. Review and analyze these results, and develop a final strategy.
Please turn in a 6- to 8-page paper, not including cover and reference pages.
Keys to the Assignment
The key aspects of this assignment that should be covered and taken into account in preparing your paper include:
The revised strategy consists of the Prices, R&D Allocation %, and any product discontinuations for the W1, W2, and W3 tablets for each of the four years: 2013, 2014, 2015, and 2016.
You must present a rational justification for this strategy. In other words, you must provide support for your proposed strategy using financial analysis and relevant theories.
Use the CVP Calculator and review the PowerPoint that explains CVP and provides some examples.
You will need to crunch some numbers (CVP Analysis) to help you determine your prices and R&D allocations.
Make sure your proposed changes in strategy are firmly based in this analysis of financial and market data and sound business principles. Your goal is to practice using CVP and get better at it.
Present your analysis professionally, making strategic use of tables, charts, and graphs.
Time Line Summary:
SLP1
2016: Hired on December 31, 2016.
Turned in first report to CEO Smothers.
SLP2
You are returned – via Time Warp – to January 1, 2013.
You make decisions for 2013 – 2016.
December 31, 2016 – You have revised all four years, and you write up your summary report.
SLP3
Apparently, your SLP2 decisions were not “good enough,” as you have again been returned to January 1, 2013.
It is once again January 1, 2013: You decide to use CVP analysis to develop a revised four-year plan for your strategy. You analyze the results of your first decisions from SLP2, taking notes, and documenting your decision-making process. You use the CVP Calculator to help you develop your strategy. Your notes explaining the logic behind your decisions.
SLP4
It is still January 1, 2013. Using your CVP analysis from SLP3, you run the simulation, implementing your revised four-year plan. You keep track of your financial and marketing results year over year.
You submit your final 6- to 8-page report, which includes your Final Total Score.
You compare – and report – your results with previous results.
