Section A: 3 Questions: (3 X 5 = 15 Marks)

Study, fully, the Case enclosed: FORD MOTOR COMPANY, and answer
the following Questions (BSFile ANNEXURE 1):
A.1. Define and discuss Ford's business-level strategy
Answer 1: Henry Ford began a family automobile business in 1903; this
was during the industrial revolution. This business has become the most
famous automobile brand in the world. Over the years the business
structure had adapted to changes in leadership, markets trends and the
economic conditions. The Ford family still controls the company
through multiple voting shares, even though it owns a much lower
proportion of the equity .Ford’s business level is the integrated cost
leadership/ differentiation strategy; this involves engaging in primary
and support activities that allow the company to simultaneously pursue
low cost and differentiation. This strategy is flexible and enables Ford to
use technology to control the production of variety of products in
moderate, flexible qualities and with a minimum manual interaction,
whose goal is to eliminate cost verse product variety. Cost leadership is
a strong strategy, but it can be undermined by the frequent changes in
technology, the imitation of cost advantage and lost of focus on
consumers. Ford’s differentiation strategy focuses on developing a
unique product that consumers are willing to pay and the combination
of these two strategies enables Ford to stay on its core competencies.

A.2. How can the company's value-chain activities be better linked to

create value for the company?

Answer 2: Ford’s value-chain activities can be better linked to create value

for the company by taking in account such issues such as population
growth, urbanization, and education with great importance. “These issues
are attended to by the Ford Company in alignment with their efforts to
maintain sustainable competitive advantage through preserving the good
public image that their clients expect from them” (Strategic Analysis Ford
Motor Company, 2009). Other ways Ford’s value-chain activities can be
better linked to create value for the company is “marketing and sales which
entails getting buyers to purchase the product which includes advertising
and pricing”. Also, service which will maintain and enhance the products
value including customer support repairs services, etc.
 A.3. In what ways can the company effectively manage customer
relationships to increase strategic competitiveness with respect to
national and international competitors?

Section B: 3 Questions: (3 X 5 = 15 Marks)

Study, fully, the Case enclosed: BLOCKBUSTER, Inc., and answer the
following Questions (BSFile ANNEXURE 2):
B.1. What are the critical strategic management and competitive issues
facing the company at this time?

Answer 1: The Critical strategic management and competitive issues facing

the company at this time include poor management, below par leadership,
strategies are not defined and do not have direction and financial strains.
Blockbuster, Inc which is giant which has dominant business of brick and
mortar based video rental business is standing in the crossroad dealing
with challenges ranging from newcomers with different business models,
relentless advancement of technology, bad management of supply chain,
and continuous lack of confidence from followers and analysts on the
traditional business model and poor business decisions and expansions.
Numerous emerging technologies like on demand streaming videos,
downloadable movies, online oriented content designed for younger
always connected generation which keep them away from traditional
brick-mortar store, also rapid development of technologies, electronic and
antipiracy law may require new implementation of new manufacturing and
additional business procedures which adds financial burden and
Blockbuster merged with Viacom Entertainment which was damaging to
both is one of the strategic issues and mistakes of the company. Competitive
issues faced by the company are many, video rental business is volatile, some
of them have come and gone. The new entrants like Family Video, Hastings
Entertainment, Movie gallery and Netflix are some of the biggest
competitors who are challenging Blockbuster and eating away its share.
Some of the other issues are key suppliers to Blockbusters are all major
film production companies, the consolidation of television and movie
studios into mega media houses has caused issues doing business with
suppliers. Ability of Movie studios to make profits by selling DVD movies at
reduced price to volume retailers and licensing of their movies directly to
television has reduced the bargaining power of Blockbuster. Top of it all
delays in delivering services to customer, late fees charges levied by
Blockbusters are also adding to the competitive issues faced.
B.2. What are the external environmental forces that have strategic
implications for the company's success in the immediate future?

Answer 2: A SWOT analysis is part of a company's strategic planning

process. This process draws a relationship between objectives and
strategies, turning into promising tactics. Weaknesses and threats should
be leveraged against strengths and opportunities. The following chart
shows the internal strengths and weaknesses, as well as the external
opportunities and threats.

Blockbuster SWOT ANALYSIS February 1 2013

Strengths DISH Partnership Opportunities Gaming Industry

Brand Recognition Redbox Managed Kiosks

Multiple Product Channels Streaming Videos

Weaknesses Adapting to Industry Threats Internet Piracy

Trends

Customer Relations Lack of Government

Regulations

Poor Retail Sales Changing Consumer Trends

B.3. Based upon your brief analysis of the Case, suggestions can you bring,
to the upcoming meeting, in the areas of changing the current business
model and in expanding the distribution channel by new channel entry and
new channel partnerships?

Answer 3: The strategy that is more feasible for Blockbuster is to use their
new relationship with Dish Network to focus sales in the gaming industry.
Current retail stores can be revived by keeping movie rentals online
exclusively, while attracting the gaming industry.
Action Plan
a. Launch An Exclusive Blockbuster Marketing Campaign
b. Division of Blockbuster/DISH, and Blockbuster/Gaming Retail
c. Restructuring of Management, Technical Support
d. Hiring & Training of Elite Gaming Staff
e. Research & Design Current Retail Stores – Modern Upgrades