CPA 117 Extended Case Study

宋不清

my own doubt is solved and cleaned so as not to confuse others.

[ 本帖最后由 宋不清 于 2011-10-18 12:39 编辑 ]

Milklatte

Any technology reason will affect the coffee industy? new coffee system

pinky1030

Not sure if you have notived that on P17 year 1980s, it's been pointed out that "establish confincredit...., the financial company for foodservice outlets business".....

was considering if it can be classified as diversification?

Plus, why you guys thinking of partnership in US market as diversification? personally i reckon it should be market expansion, as capsule coffee business is not new to L?

please let me your thoughts?

pinky1030

Or, do you define that the partnership is for capsule coffee MAKER rather than capsule coffee, which make sense to classify as diversification?

yonei999

last 2nd para pg 16: "Currently, Lavazza is in talks with Green Mountain about launching a new capsule coffee
maker in the US market in 2012 that will make cappuccino (or ‘creamy milk’) coffee". So launching a coffee maker would be related diversification. The intention of L was to go market expansion however the initial step it undergoes is diversification.

since diversification is riskier than other few component, it is questionable that L is jumping the gun before the other 3 strategies are exhausted. This  could be a test point in exam.

[ 本帖最后由 yonei999 于 2011-10-18 16:50 编辑 ]

mandymei

Thanks Yonei999! Totally agree!

pinky1030

thanks for the hints!

mandymei

Hi Yonei999, I have a question about the timing for Ansoff Matrix analysis. The whole case indicates lots of historical Market Development examples, so when we do the analysis, are we focus on 'Continuing and future growth' facts or from the past to future?
Would appreciate your opinion. Thanks!

adam1234hk

Do anyone find any weakness of Lavazza when preparing SWOT analysis? I cannot find any from the case. Thank you!!

luby

Is US a new market for Lavazza? It set up foreign subsidiary in US (New York) in 1980s and Expression cafe opens in Chicage, US in 2009.  I think that  launching a new capsule coffee is product development. Did you agree?

adam1234hk

However, Lavazza havent had any experience in' single serve coffee machine maker'. According to case, Lavazza is in talks with Green Mountain about launching a new capsule coffee maker in the US market in 2012 that will make cappuccino (or ‘creamy milk’) coffee. The proposed machine will produce heated milk and froth rather than the steamed water of espresso makers. (page 16)

siyuezhao

so the new coffee is product development, right?

siyuezhao

sorry , i mean new coffee machine is product development.

adam1234hk

Green Mountain  is coffee machine maker

siyuezhao

For the generic strategy:  on page 16, 1910, decision taken to focus on coffee.......
so can we say they used to use focus and differ as their generic strategy
nowadays, they expand their production scale and improved their efficiency, so we could say, they have  adopt low-cost and differ strategy?

any suggestion?

luby

a new capsule coffee maker  is a new product, but customer in US may be the same.

adam1234hk

i agree with u , siyueshao.
Leader strategy focusing on differentiation and low cost.
Differentiation strategy becasue Lacazza can offer a range of blends and coffee styles in its brand name that refect the differentiated nature of coffee markets base on differences in cuture and consumption tradition that cover both in home consumption market and out of home consumption market.
Also,Lavazza can acheive low cost becasue Lavazza have a better negotiation deal to its suppliers due to its size of  purchase.In addition, Lavazza control over all stages of its operation (distribution channel through warehouse and logistics centres) as well as its coffee chains (forward intregation) which make Lavazza can have an economies of scale.

siyuezhao

yeah, i have same question as you, forward integration could be treated as realted diversification becasue it is developing  new products"coffee chain business" in new market"new customer segment".


As yonei999 just remind us that vertical integration is discussed in the textbook as another approach for considering product-market options.

thus, we should list it as seperate option aside from Ansoff's matrix

adam1234hk

I am wondered that do Lavazza have any strategic capabilities? For classify as a strategic capabilities we have to pass through the following steps:
1) Is it valuable to customers
2) Is it better than the capabilities of most competitors( no competitors information given)
3) Is it difficult to imitate or replicate
What do u guys think?

pinky1030

Hi, so far i hav prepared my answers by various tools as following. please feel free to add more or delete if not necessary. cheers.

type of org
industry product segment
life-cycle for both L and the industry
TEMPLES
value chain
Porter's eight forces
5Qs
Has Lavazza been pursuing this stated strategy
Factors that are strategy capabilities
Factor that is “NOT” strategy capabilities
BSC
Key Strategic Issues
Ansoff product/market matrix inc. short/long term recommendations
Strategic option using Rumelt’s criteria
Cooper et al 2006 (Pearl/bread and butter/oysters/white elephants)

Im not that sure how to present:

key stakeholders
SWOT
if any strategy recommondations in short/long run
type of leadership and change management
Dunphy and Stace model
Kotter’s 8 steps
7S

any ideas, guys?

Hi, yonei999, would you like to share your thoughts? cheers.

SnowJade

原帖由 gerence 于 2011-10-15 03:40 发表



I found the case talks a lot about strength and threats, a bit about oppotunities, but it doesn't really mention anything about weakness....

a lot about threats? I can't even find one? what's the threat?
For weakness, all the four factories are located in Italian, this lead to high shipping cost.

adam1234hk

Good point!!

SnowJade

原帖由 mandymei 于 2011-10-17 13:44 发表
Thanks SnowJade. IF it's coffee industry, the value chain covers from Grower to End consumer. So who is the supplier to this coffee industry, etc?
If it's coffee manufactory industry, then Broker/Agen ...

I agree with your analysis and I also do that, but I still think you should define it as coffee industry. What I mean is, don't define the industry too specifically, just see the headline of Figure 1.

[ 本帖最后由 SnowJade 于 2011-10-19 00:46 编辑 ]

adam1234hk

原帖由 gerence 于 2011-10-15 03:40 发表



I found the case talks a lot about strength and threats, a bit about oppotunities, but it doesn't really mention anything about weakness....

Would u like to share some of threats of Lavazza?

yonei999

原帖由 mandymei 于 2011-10-18 21:17 发表
Hi Yonei999, I have a question about the timing for Ansoff Matrix analysis. The whole case indicates lots of historical Market Development examples, so when we do the analysis, are we focus on 'Contin ...

It is a bit clumsy to analyse everything according to the company history. IMHO, you could categorize the activities and then analyse according to those categories. The worst case scenario, you've got only 4 market entry modes + VI + selling solution to work off.

yonei999

原帖由 luby 于 2011-10-18 21:53 发表
Is US a new market for Lavazza? It set up foreign subsidiary in US (New York) in 1980s and Expression cafe opens in Chicage, US in 2009.  I think that  launching a new capsule coffee is product develo ...

it's coffee maker launching in the case with GM even though the intention is to expand the capsule sales...

yonei999

原帖由 pinky1030 于 2011-10-19 00:12 发表
Hi, so far i hav prepared my answers by various tools as following. please feel free to add more or delete if not necessary. cheers.

type of org
industry product segment
life-cycle for both L and the ...

To add to the pts:

1. Extended SWOT for LAVAZZA
2. SWOT for Indian Expanson & GM partership
3. cost and benefit analysis for Indian Expanson & GM partership (similar to pt2)
4. Risk assessment for different market entry mode
5. 7S
6. Gap Analysis
7. portfolio management

yonei999

原帖由 adam1234hk 于 2011-10-19 01:24 发表

Would u like to share some of threats of Lavazza?

Threats:

Substitutes of tea and other soft drinks

Coffee is high value traded commodity and is subject to big price fluctuation (natural disaster e.g.)

Health concious and CSR

Weakness:

Lack of internal focus: too many projects in different market (replaced)

Self Cannibalization (i.e. overlap of customer base and targeted market)

Family business structure vs. international expansion (can the structure afford it?)

Only one outsider was recently appointed as CEO. Due to be his minority status, political compromise may have to be made at the expense of company growth

[ 本帖最后由 yonei999 于 2011-10-19 09:43 编辑 ]

yonei999

原帖由 pinky1030 于 2011-10-19 00:12 发表
Hi, so far i hav prepared my answers by various tools as following. please feel free to add more or delete if not necessary. cheers.

type of org
industry product segment
life-cycle for both L and the ...

Pinky and anyone,

would you be able to share the thoughts of BSC, Strategic option using Rumelt’s criteria and portfolio management (Pearl/Oyster etc.)

Thanks.

[ 本帖最后由 yonei999 于 2011-10-19 09:56 编辑 ]

luby

Hi yonei999, I am still a little bit confusing it. Diversification moving into new products and new markets at the same time. Did you think US market is new for Lavazza? If it is , how would I explain it entered into US before? Thanks.