Examine industry dynamics and how the structure of the casino industry has implications for competition.See the table below to determine key concepts of this case:Chapter UseKey ConceptsAdditional Readings2: External EnvironmentPorter’s five forces modelStrategic groupsNOTE: Additional reading Baruch Business Library-The current state of the industry.Case Synopsis For well over fifty years the casino business has been on a roll, on it’sway to becoming a $150 billion–a-year global industry. For much of that period, the United States has been leading the charge, accounting for nearly half the global gambling revenues as recently as 2010. Most of these revenues have come from Las Vegas and Atlantic City, magnets for gamblers from around the world. However, Las Vegas and Atlantic City have had to deal with increased competition from other locales, including waterfront casinos in over a dozen states, Native American gambling locations, and, most recently, overseas casino development in places like Macau, Singapore, Malaysia, Philippines, South Korea, and Australia. Other sites in Asia, such as Japan, Vietnam, Taiwan, and Sri Lanka, were in development as well.
Discussion Questions:
1.Examine the structure of the casino industry. What has been the effect of the changing industry structure on U.S. casinos?Analyzing the External Environment of the impacting the industry?
2.What potential threats exist impacting Las Vegas and Atlantic City?
3.What might Las Vegas casinos and Atlantic City do to craft a sustainable competitive advantagegiven the industry they’re in?
Case 18 –General Motors in 20171.To examine how external and internal forces affect competitive strategy. 2.To investigate the choices of business, corporate-level and international strategies in a highly turbulent industry.This case is primarily targets Chapter 3 internal analysis and Chapter 5 business-level strategy. It also works well to discuss the other Chapters 1, 2, 6, and 7 which are all part of the arc of strategic analysis and formulation. Chapter UseKey ConceptsAdditional ReadingsINTRO1: Strategy ConceptStrategic management2: External EnvironmentIndustry competition five forces; general environmental factorsPRIMARY3: Internal AnalysisValue-chain analysis; resource-based view of the firmNOTE: Additional reading Baruch Business Library -The current state of the industry5: Business Level StrategyCompetitive strategy; generic strategiesNOTE: Additional reading Baruch Business Library -The current state of the industrySECONDARY6: Corporate-Level StrategyDiversification; synergy; core competencies; acquisitions7: International StrategyInternational strategies: Multi-domestic vs. GlobalCase Synopsis In February 2017, General Motors CEO Mary T. Barra floated the possibility that the company could exit the large but troubled European market byselling its chronically unprofitable Opel unit to the French maker of Peugot and Citroen cars. This would free GM from persistent losses in Europe and fulfill pledges Barra had made to shareholders to improve overall profit margins. In addition, Barra hadstated her intention to continue with the commitment to build the best cars GM had ever produced.
Discussion Questions:
1.What are key forces in the general and industry environments that affect the U.S. auto industry, and General Motors?
2.What internal resources and assets does General Motors have to help counter the external forces?
3.What competitive strategy does General Motors use, and how might it position itself for future growth?
4.Conduct a value chain analysis
Case 3 –McDonald’sTo investigate the key external environmental issues that can affect McDonald’s strategy. To examine how a reevaluation of strategy involves assessment of internal activities and resources.Chapter UseKey ConceptsAdditional Readings PRIMARY CONCEPTS2: External EnvironmentExternal environmental forces; Porter’s five forces modelNOTE:Read about healthy foods controversy, read about watch SuperSize Me, FastFoodNationall on YouTube3: Internal AnalysisValue chain; tangible vs. intangible resources; VRIN analysisNOTE:Read about value chain challenges5: Business-Level StrategyGeneric strategiesSECONDARY CONCEPTS1: Strategy ConceptStrategic management; vision, mission, strategic objectivesNOTE:Visit McDonald’s website to evaluate its mission. Visit Baruch Business Library and research McDonalds4: Intellectual AssetsHuman capital; intellectual capital6: Corporate-Level StrategyCorporate strategy; diversification; synergy; acquisition7: International StrategyInternational expansionCase Synopsis McDonald’s had announced on January 28, 2015, that Don Thompson would retire as president and chief executive at the end of February. Steve Easterbrook, the firm’s chief branding officer, would replace Don Thompson. The abrupt exit came after the world’s largest restaurant chain posted one of its worst financial performances in years.
Discussion Questions:
1.What are the current forces in the external environment that might affect McDonald’s strategy?
2.What source of competitive advantage does McDonald’s have, and is that position supported by its value chain and other internal resources?
3.What other strategies could McDonald’s formulate to achieve a competitive advantag
