Paying Case Study & Strategic Case Study – Team Project

2 Strategic Case Study – Team Project

10 % of total mark

Length – 4,500 – 5,000 words

Assume the role of the MD in the case below. Analyze the situation and formulate a new business strategy for the company.

It is advisable to utilize diagrams and models to explain your analysis and strategy formulation

 Going International or Bust – The Case of a Local Service Company

Background

Leaders in small developing countries face two major challenges:

1. To become globally competitive and
2. To develop the appropriate infrastructure to meet these global performance standards.

In most cases, this requires the transformation of the ‘traditional organization’ into a performance driven, customer value obsessed, innovation propelled, knowledge invested, and environment conscious enterprise.

An additional challenge for small developing nation states is  that the business landscape is dominated by small and medium sized family owned businesses which sooner, than later have to face the issue of ‘going international’. The local market has become too small and they already face global competition.

 The Situation – How to write case study

A very successful, cash-rich local service company has decided to expand not only its product and services locally but will in the next two years go international in a big way. This expansion is perceived to be urgent because an international competitor is already ‘invading’ the local market. The expansion may include acquisitions and strategic alliances.

The board of directors (numbering seven) of this family owned company consist of the ‘founding father’ who has declared several times that he is ready to retire; a recently graduated MBA son in charge of marketing with lots of new ideas; a daughter-in-law in charge of human resources (married to an ‘unsuccessful artist’), an older son, known for his ‘hands-on’ approach on the floor and a passion for quality customer service; a ‘family-friend’ with government ‘connection’ and a sometimes politician; another trusted friend of the family and a cousin, known as the ‘book-keeper’.

Finally, the recently hired well experienced M0anaging Director (MD) has been promised shares in the company and a ‘free reign’ in making strategic decisions. Of course, the new MD with his recently acquired DBA and dissertation research on entrepreneurship and internationalization of small, mediums sized enterprises in the Caribbean will apply his strategy dynamics and research and knowledge.

The decision to go international into at least three neighboring countries came after several ‘heated discussions’ of the board in which the pros and cons for this local and international expansion effort were argued. A number of concerns came up repeatedly.

1. How can we compete with the global giant?
2. How do we finance this expansion? Do we go ‘public’?
3. Should we grow organically or through mergers and acquisitions?
4. How do we handle the mergers and acquisitions challenges if they emerge?
5. Would it be better to create strategic alliances? How do we deal with strategic alliances?
6. Do we have the necessary ‘people’ in place and how would we build our human capacity?
7. What impact does the large increase in our size have on the organization? How will our management styles and systems, and governance structures need to change and how will we accomplish this?
8. If acquisitions occur, what would the corporate structure look like? Who should be on the boards of the new subsidiaries?

 New Strategy

The new MD managing director must formulate and execute strategies that take into account the mindset of the board. The MD must develop a new business model with a strategic plan, and execute an action plan with measurable performance indicators. The strategic actions should address the required organizational changes, critical decisions and execution in the following areas:

Marketing – including key stakeholder relations

Finance – including choice of key performance indicators

Operations – including cross country logistics

Technology

Human Resources – including competencies

Organizational Structure – including reporting relations

Organizational Performance – including individual performance

Organizational Culture – including cultural diversity

Leadership & Management  – including the relationship with the  Board