I. The analysis of strategy in the case of Wal-mart 2005.
· Please summarize its company strategies with supporting activities at the corporate, business, and functional level.
· Please state how the corporate level of strategy is connected to the business level.
II. Stakeholder Theory of the Firm: Theory and Application
a. Describe the stakeholder theory for a RTE breakfast cereal firm. Who are the major external stakeholders? Who are the major internal stakeholders?
b. Imagine you are the CEO of a ready-to-eat breakfast cereal company such as General Mills. Recent research has linked diabetes to an artificial sweetener that your company has been using for the last decade. Please discuss the likely preference of each stakeholder group. Discuss how you will go about deciding whether to continue with the same artificial sweetener or to seek alternative yet more costly replacements.
III. External Analysis: Please describe Porter’s 5-Forces Model in the following order: Power of Suppliers, Power of Buyers, Substitutes, Barriers to Entry, and Price Rivalry from the perspective of Coke and Pepsi concentrate producers.
(25 points, 5 points for each force)
· For each force be sure to indicate if the power is HIGH, MODERATE or LOW.
· Please be sure to defend your assessment of each force with evidence.
IV. Internal Analysis: please list what resources and capabilities qualify as VRIO for the case of Wal-mart 2005? (20 points)
a. Please first describe the question of value, rarity, imitability, and organization.
b. Please list the resources and capabilities that you identify from Wal-mart under each of the question of VRIO model.
V. Internal Analysis: Please provide a Value-Chain analysis for the company of Coca-Cola.
· Please list the primary activities in value chain for a soft drink company such as Coco-Cola.
· Please indicate whether those primary activities were conducted internally or outsourced. If outsourced (at certain times or in certain regions), please state the rationale behind such decision.
BONUS QUESTION: Competitive Advantages – Value Chain and Economic Value Creation (10 points)
For Milwaukee Cheese Company, below are the breakdowns for its cheese production:
• Product priced at $20/pound
• Raw materials cost $10/pound
• Manufacturing cost $1/pound
• Packaging cost $1/pound
• Distribution cost $1/pound
• Sales and Marketing cost $1/pound
• Overhead allocation $1/pound
• Production facility rent $3/pound
• Employee pay $2/pound
Given the information above, please calculate Milwaukee Cheese Company’s Economic Value Creation. Please provide all of your work below in calculation.
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