Thinking Strategically, Grand Strategies And Creating A Strategic Roadmap (Mba-580)

Three Simulations

Thinking Strategically

The simulation mentions that "Strategic thinking is a readiness for action based on market realities, organizational competencies and brand equities. It is supported by long-range objectives, strategic flexibility and a need to stay ahead of change." A lesson I have learned was that an enterprise needs to build long-term objectives to align with the strategic goals and manage the consequences of contemporary decisions.

BJ's Prosports (BJ's) is currently running thirty- five stores and ranked #3 among bicycle retailers that plans to achieve aggressive growth. Mark Walton, CEO wants to establish a strong competitive edge in retail market, to improve profitability from 28 percent to 38 percent, to achieve annual revenues of 130 millions, and then a strategy would be to manufacture with low-cost. By analyzing the external and internal information, the author first evaluated external reports as U.S. Specialty Bicycle Consumers Study that will give information about customers and The National Specialty Bicycle Retailing Industry Report that will give industry information to achieve long-term objectives. It seems external analysis will be at a higher cost to develop it.

All experts in the simulation recommend their opinions of internal environmental information to finalize long-term objectives: Lillian, VP of Finance, aspires for the No.1 status in terms of revenue allows them to explore avenues for growth other than increasing the number of stores. Ryan, VP of Operations, plans to revamp up their marketing efforts to improve customer passage and to open new stores. Kensington, strategy consultant, expands BJ's as its retail presence in the geographies where demand is growing and sells with new channels. The information they have complied that become No.1 specialty bicycle retailer in the next five years may be the most appropriate long-term objectives for BJ's.

One of the most common analytic tools of internal environmental analysis is a SWOT analysis. The SWOT analysis has performed to analyze internal factors of strengths and weaknesses as well as external factors of opportunities and threats of BJ's that will help to implement the strategic plan. The author identified strong cash position; the AntiGravity's brand equity, their in-store advisory and service network are strengths. The lack of retail presence and the brand perception as a mail-oriented retailer, excess inventory of AntiGravity's bike and low brand recall among the 12-24 age groups are weaknesses. The key factors of opportunities are the growing juvenile bikes category, the sunny weather forecasts for the next three years, and increase in government spending on physical education program. The key threats will be Asian imports, the maturing mountain bikes segment, and the lack of interest among generation Y for bicycling which will able to tap these market successfully and future profitability with suitable corrective measures.

Grand Strategies

In this simulation, the author can apply Grand Strategies to guide the strategic choices of the Oz's toy company and secure its competitive advantage in response to a rapidly evolving business environment. Oz needs a proactive strategic response to an industry situation impacted by consolidation among manufacturers. Asian imports that have led to an influx of cheap toys and changes in trends such as the increasing purchase power of consumers. A Grand Strategy can be defined as "a comprehensive general approach that guides a company's key actions" that provide a time period over long-range objectives.

SWOT analysis was performed to analyze the external and internal environment of Oz's. Oz's strength was strong product lines; steady profitability, strong cash position and extensive retail network while the weaknesses identified lack of control over material inputs, and high licensing cost of patented technology. Opportunities present licensing and merchandising for toy properties, and positive demographic trends where as threats were flattening sales curve, Asian imports and consolidation of the toy manufacturing industry. There will be the first quadrant because they held strong competitive position and rapid market growth. The strategy to acquire a resin company to control volume, quality, and price of plastic was best fit. This strategy enables the company to retain its position in Quadrant 1 and consolidate its equity.

Strategic alternative will improve Oz's competitive position by adding online sales channels acquire a digital toys, and games company. After they move aggressive approach from quadrant #2(weak competitive/ rapid market growth) to quadrant #1(strong competitive position/ rapid market growth), they can create Electronic Learning Aids, digital toys, and free downloadable games that can be sold online. The next decision Oz faces one of their popular toys that have choked little children. Oz's was positioned quadrant #3(weak competitive position/slow market growth) that sell a part of the retail chain assets and continuing to focus on the current product lines that generate the liquidity required to tide over the company's financial crisis.

The final decision was positioned quadrant #4(strong competitive position/slow market growth). The appropriate strategic alternative of Oz's is to develop a range of pet toys, called Pet Planet, to be retailed through pet products retail partners (Concentric Diversification) to maintain their competitive position. With internal growth needs, the company will be an excellent position to leverage concentric diversification opportunities. The better planner considers all the constants and variables and makes the best of the situation at hand. It is a fine balancing act, requiring tremendous judgment, and clarity of thought.

Creating A strategic Roadmap

The simulation states that "a strategic road map helps align an organization's strategies with its vision and long-term objectives. The purpose of a strategic roadmap for ConstructWell is to build the largest construction in the world and accomplish their objective to become a global leader. The first step in building a roadmap is to have a clear long-term objective: to be the global leader in revenue in the construction business, they have implemented three strategies. The first strategy will focus on forge partnerships to expand operations that a skillfully planned and executed strategy of rapid expansion through alliances and partnerships can be a good path to taking ConstructWell global. It will also help enhance their revenues, intellectual assets, skills,

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