Strategic Management at Honda



Henry Mintzberg (1987) made a distinction between deliberate strategy and emergent strategy. Emergent strategy originates not in the mind of the strategist, but in the interaction of the organization with its environment. He claims that emergent strategies tend to exhibit a type of convergence in which ideas and actions from multiple sources integrate into a pattern. This is a form of organizational learning, (from its environment) in fact, on this view, organizational learning is one of the core functions of any business enterprise (See Peter Senge’s The Fifth Discipline (1990).)

Deliberate strategy on the other hand is involves intentional planning and predetermined outcomes based on internal and external analysis at a current point in time. Such analysis also involves the study of the historical trend of the organization and industry performance. A flawed assumption where the predetermined outcomes are derived from is that the future will behave as in the past and the macro environment will remain relatively stable. Such is not the case with the magnitude, velocity, frequency and abruptness of change reaching new unprecedented levels daily in the business landscape across the world.

The paradox of deliberateness and emergence is whereas deliberate strategies provide an organization with a sense of purposeful direction, emergent strategies imply that the organization is learning from its environment incrementally. This has led to dichotomies of strategies. However Mintzberg and Whittington says that this is not necessarily so, in fact Mintzberg advocates that firms in today’s highly turbulent business landscape need to be purposeful and resourceful simultaneously. In this sense he coined the term “deliberately emergent”. Whittington is in agreement as he classifies deliberate strategies under the classical school and emergent strategies under the evolutionary school both of which share the same outcome of profit maximization. The strategies may be different but the philosophy behind the strategies are in fact the same.


1. Threat of New Entrants.
In most major western economies with established automotive industry, the threat of new entrants was low in the 1970s and 1980s. In North America for example, it was thought that the Big Three (GM, Ford & Chrysler) were safe. But this did not hold true when Honda Motor Co. opened its first plant in Ohio. The emergence of foreign competitors with the capital, required technologies and better operations management skills began to undermine the market share of North American companies. This was also true when Honda took the risk to enter the British and European markets.

2. Power of Suppliers.
The automobile supply business is quite fragmented (there are many firms) throughout the many regions in the world. Many suppliers rely on one or two automakers to buy a majority of their products. If an automaker decided to switch suppliers, it could be devastating to the previous supplier’s business. As a result, suppliers are extremely susceptible to the demands and requirements of the automobile manufacturer and hold very little power because the manufacturers order in volume.

3. Power of Buyers.
Historically, the bargaining power of automakers went unchallenged. Most customers however, became disenchanted with many of the national car makers and began looking for alternatives with better fuel economy, more stylish designs and better technology. Foreign cars provided these attributes. On the other hand, while consumers are very price sensitive, individually, they don’t have much buying power, as they never purchase huge volumes of cars.

4. Availability of Substitutes.
Besides the threat of someone buying a different car we need to consider other modes of transportation as alternatives or substitutes. We need to look at the likelihood of people taking the bus, train or airplane to their destination. The higher the cost of operating a vehicle, the more likely people will seek alternative transportation options. The price of petrol has a large effect on consumers’ decisions to buy vehicles. Trucks and sport utility vehicles have higher profit margins, but they also guzzle gas compared to smaller sedans and light trucks. When determining the availability of substitutes the following should also be considered; time, money, personal preference and convenience in the auto travel industry. The trend today is towards more fuel-efficient, safe and environmentally friendly cars that are affordable to the increasing global middle class.

5. Competitive Rivalry.
Highly competitive industries generally earn low returns because the cost of competition is high. The auto industry is considered to be an oligopoly, (which helps to minimize the effects of price-based competition. The automakers understand that price-based competition does not necessarily lead to increases in the size of the marketplace; historically they have tried to avoid price-based competition, but more recently the competition has intensified – rebates, preferred financing and long-term warranties have helped to lure in customers, but they also put pressure on the profit margins for vehicle sales.

Created by : stefani ( group 3 )


Convenience Store – Circle K

53710“What else do you need?” .. This is the slogan of the circle k

Circle K is an international chain of convenience stores, founded in 1951, in El Paso, Texas, United States. It is owned and operated by the Canadian-based Alimentation Couche-Tard.

Since the 1980s, Circle K has been the largest company-owned convenience-store chain (i.e. of non-franchised stores) in the U.S. It was second in overall number of U.S. stores to 7-Eleven. However by 1989, it faced strong competition from convenience stores owned by oil companies, and Circle K declared bankruptcy in 1990.[2] By July 2010, Circle K had dropped to fourth rank in number of stores (3,455), then behind BP (4,730 stores) and Shell (4,630 convenience stores).

Hmm.. How about the management???

Circle K has marketing and merchandising programs are strong in meeting customer needs by understanding the patterns of thought, behavior, work and shopping patterns of customers in outlets Circle K.

In addition, close cooperation with supply partners to provide attractive prices for customers franchises Circle K. In success-owned big names Circle K, the franchisor also participated in site selection by doing market analysis, site selection, sales forecasting models and market strategy planning.

Do you know about the mission and vision??

At Circle K, the mission are “Creating a pleasant shopping experience through a selection of promotional products, creative activities, and create a safe and comfortable shopping.Creating an integrated work processes among the functions of the organization and continually improve human resource capabilities.

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Management and Leading of Nestlé

With over 265,000 employees worldwide and factory locations in more than 85 countries, Nestlé is a truly multinational, multicultural company. Considering that and their ill name of being an ‘aggressive company’ Nestlé should focused on Human Resources Management. And not only on appropriate tools of recruitment and derecruitment but mostly on managing workforce diversity, compensations and training.

The urgent issue is Nestlé’s policy of employment in developing countries. Customers assume, implicitly or explicitly, that “made by Nestlé” means made by Nestlé workers in Nestlé facilities directed by Nestlé management directly accountable to Nestlé’s corporate headquarters. This assumption on the part of consumers is what justifies their faith in the brand – and their willingness to pay. But to a growing extent, Nestlé is not employing thousands of the workers making Nestlé products. For example, in the important growing Indonesian market, only 44% of the workers making Nestlé branded products in four factories and one warehouse are permanent Nestlé workers. This is typical of Nestlé in Asia and other poorer regions of the world. And in Europe over 10% of workers in Herten Germany, for instance, are agency workers making Nestlé Herten product but not working for Nestlé. In Hungary (Diosgyori) over 20%, in Portugal (Avanca) over 25% and in the UK (York) almost one in eight workers are not permanent Nestlé employees. The use of third party producers (“co-packers”) will increasingly mean that the branded product for which consumers often pay more will come out of a non-Nestlé, “non-branded” factory, often a local one with no global brand or reputation to protect, but still with recognisible logo. Nestlé should take a close look at their employment practices so they can guarantee that branded Nestlé products are made in Nestlé facilities by Nestlé workers and managers on decent and permanent Nestlé work contracts.

An example of management which noticed the importance of diversity may be Nestlé in USA. The are using a strong Supplier Diversity Program. They claim to selecting only those suppliers who can successfully meet Nestlé’s regional and international needs, which allows them to develop a strong, flexible and competitive supply base, and pass those improvements on to the customer. Not ignoring minority, woman and veteran-owned businesses tend to hire diverse employees. In supporting these business Nestlé support a growing segment of consumer community and gain their loyalty. And by retaining qualified, diverse suppliers, they can gain a distinct competitive advantage that can significantly impact bottom line.

And this is the advertisement from Nestlé

Created by : Lisa Maritseda (group3)

About Intel


Intel’s Vision and Global Strategy
Intel vision is to create and extend computing technology to connect and enrich the lives of every person on earth, by focusing on the following key strategic objectives:
• Grow the PCnand data center business with new users and uses.
Extend Intel’s PC platform leadership and develop exciting innovations to deliver new user experiences; and lead the transformation to open data centers and cloud computing.
• Extend Intel solutions into adjacent markets.
Transform the embed- ded industry with Intel® architecture (IA) in new market segments; and launch and ramp IA solutions in smartphones, tablets, smart TVs, and vehicles.
• Create a continuum of personal computing.
Expand IA differentiation with new capabilities across devices; excite leading software developers to create the best user experiences and applications on IA; and deliver new usage models with multi-communications connectivity.
• Care for our people and the planet, and inspire the next generation.
Cultivate a workplace where employees can thrive both on the job and in their communities; develop technology solutions to address major global problems while reducing our environmental impact; and accelerate educa- tion transformation worldwide through technology, program, and policy leadership.

Corporate responsibility management structure
CEO and Board-Level Oversight
The Board of Directors’ Corporate Governance and Nominating Committee receives briefings from our Corporate Responsibility Office twice a year, in addi- tion to updates on specific corporate responsibility issues as needed. Our CEO receives regular corporate responsibility updates from executive management.

Management Review Committees (MRCs)
MRCs bring together senior executives from across the company to review performance and set strat- egy in specific areas. For example, our Corporate Responsibility MRC reviews emerging issues across a range of focus areas, and our Eco-MRC reviews Intel’s approach to environmental management.

Business Group and Cross-Functional Teams
Multiple business groups have dedicated teams that address corporate responsibility issues within their organizations, helping to develop plans and set goals in support of Intel’s overall strategy and objectives. Those groups include, but are not limited to, Environ- mental Health and Safety, Eco-Technology Program Office, Ethics and Compliance Program Office, Corpo- rate Affairs, Global Public Policy, Human Resources, Corporate Diversity, Supply Chain, and Information Technology. In addition, cross-functional teams coordinate efforts that span business groups. For example, our Eco-Stakeholder Council brings together representatives from across Intel to develop clear and consistent strategies for improving our environmental performance and engaging employees.

Intel – Stories of Innovations in Technology

Created by: Catherine Pritania (Group 3)

Adidas (Strategy Management) part 1


Global Brands Strategy
Global Brands is responsible for all the product and marketing functions and long-term development of the adidas and Reebok brands. The primary objective of this portfolio strategy is to ensure that our brands seize market and category opportunities through well-defined and coordinated go-to-market strategies. Each brand is responsible for the execution of its strategic focus by creating a constant stream of innovative and inspiring products and generating communication strategies that represent each brand and category in an engaging and compelling way.

Driving the long-term development ofadidas and Reebok
To secure long-term sustainable growth for the Group, Global Brands is focused on driving the development of the adidas and Reebok brands. The overall strategic goal is to achieve qualitative, sustainable growth by building desirable brands in customers’ and consumers’ perception. Global Brands played a central role in the creation of Route 2015, the adidas Group’s five-year strategic business plan that was unveiled in 2010. The adidas and Reebok brands are expected to deliver 90% of the targeted growth for the Group in this period.
Areas within adidas and Reebok that were identified as key contribu- tors and game changers for the adidas Group include:
– Gaining sales and market share in the key global categories running and basketball with adidas Sport Performance
– Expanding adidas Sport Style into fast fashion with the adidas NEO label
– Establishing Reebok as the leading fitness brand
– Leading the industry in the fields of customisation and interactivity across categories
In addition, Global Brands is also playing a key role in our Driving Route 2015 programme, which is focused on speed, consistency and consumer focus. Among other things, we are striving to present adidas and Reebok in a more consistent way around the world in terms of ranges and pricing. In the long term, this should lead to range size efficiencies and gross margin optimisation. One example of this is the creation of a “Global Foundation Range”, which will be mandatory for all of our markets and channels.

Focus on the consumer
The consumer is at the heart of everything we do. This is the first and most important realisation, and we must adhere to it to deliver long-term success. As part of its function, Global Brands has mapped out our target consumer universe, which spans from our roots in sport, the “pure performer”, through to today’s style setters who have embraced sporting goods brands .
To be successful across consumer segments, we acknowledge that a strategy of mass production or mass marketing is no longer suffi- cient. Only by identifying and understanding consumers’ buying habits, their fitness level, their motivations and goals for doing sport and their
individual lifestyle, can we create meaningful products, services and experiences that build a lasting impression. In this respect, we have identified five key global trends which will be important to address with our brands and sub-brands over the duration of Route 2015:
– Fit for life:
Sport is no longer just about competing and winning. Sport is becoming more embedded in consumers’ everyday lifestyles. Motivations and goals are becoming more holistic, relating to fun, socialising and quality of life.
– You are what you know and what you do:
Society is embracing a life-long learning attitude, and placing more emphasis on what we know and do versus what we have and where we come from.
– Celebrating individuality:
Consumers increasingly fulfil their desire to differentiate from one another by being more creative – on the one hand mixing and matching products and services they need, and on the other hand seeking personalised offerings tailored for them.
– Together is better:
There is an increasing need for meaningful social interaction, both online and offline, as consumers become more mobile, and the rise of digital technologies makes it easier for them to connect with like-minded people.
– Back to basics:
For everyday life, products and services are desired to be simple and authentic, making consumers’ lives easier, rather than more complicated. There is a growing interest in outdoor activ- ities, reflecting the desire to reconnect and be in tune with nature.

To match these trends and fulfil consumer demands, Global Brands teams adhere to the following principles:
– Create the unexpected in terms of product and brand experience
– Create the highest emotional connection between our brands andthe consumer
– Be prepared for the next generation, anticipating change
– Simplify to the maximum
– Show excellence in execution, being consistent in whatever we do, from idea creation to communication at the point of sale, and in the digital world

Check this out!

Created by : Lisa Maritseda (group3)

Starbucks™ Shared Planet™


What is Shared Planet?
Starbucks Shared Planet is a business commitment to the environment. This means that Starbucks will work to make green changes within their business practices, from they way they buy their coffee, to how their stores are developed and run, and even ensuring they have a presence within their communities.

The Coffee
We’ve always known that coffee comes from nature, and Starbucks is realizing this, too. They are making a point to buy Ethically Traded Coffee, which means that farmers receive a fair payment for their product, and the coffee bean is grown in an environmentally responsible way.

Conservation International has also paired up with Starbucks to develop their buying guidelines for socially, environmentally, and economically responsible coffee, and also developing a new climate change initiative which takes conservation beyond the coffee farm and into the surrounding communities and landscapes of the growers.

The support for these coffee farmers goes even further with Starbucks Farmer Support Centres which are operating within Costa Rica and eventually Ethiopia.

The Cup Stops Here
Within the store, Starbucks is committed to delivering the consumer their coffee, but it comes at a price. Ten cents will be knocked off everyone’s favourite drink, but only if they come in with their own reusable mug.

This program is being used within every Starbucks location so go get your (reusable) fill!

Speaking of cups, if you have forgotten your travel mug at home, by 2015, Starbucks is planning on having 100 percent of their cups be reusable or recyclable, which will be a huge contribution to keeping the planet green since the majority of Starbucks products come in a cup.

Within The Community
During a recession community involvement often wanes- but not for Starbucks. The company’s partners and customers in United States and Canada volunteered 245,000 hours of community service in 2008, and their goal has been increased to volunteer 1 million hours by 2015. Starbucks online social network, V2V (Volunteer to Volunteer) helps connect volunteers all over the world to make a difference in their communities.

Created by: group 3 ( Lisa, Catherine, Nelly , Stefani, Ellen, Fanny )

History of McDonald’s Strikes Indonesia


The story begins when Bambang Rachmadi established the first McDonald’s restaurant located at Sarinah, Jakarta in February, 20 1991. After he made the franchise agreement with McDonald’s, the business became very successful and achieved the highest gross monthly income at that time. So, McDonald’s was so pleased and asked Bambang to form a Joint Venture to expand the business.
Of 25 restaurants he has, Bambang turned 12 restaurants into the joint venture. But things started to change when McDonald’s announced that it will terminate all remaining partnership and joint venture agreements with Bambang and selling his 10 percent share in their joint venture.
This all happened because the venture owes U.S. McDonald’s parent company approximately $ 130 million, according to a statement by McDonald’s, Bambang breaking obligation to transfer the equipment at his former company store at fair market value, and set the rent for the restaurant in question to McDonald’s.
In November, 17 2009 McDonald’s forbidding any restaurant operations in Indonesia under the brand name of McDonald’s. So, in October,  1 2009 McDonald’s changed becameTony Jack’s Indonesia. There are 13 McDonald’s restaurants owned by Bambang Rachmadi changed. In 2010, Tony Jack’s Indonesia bankrupt and it was taken position by McDonald’s. Until now, McDonald’s still developing and still becomes popular fast-food restaurant  in Indonesia.

Created by : Raymond pm