Exam (elaborations)
RSM100 Cases UofT.
Exam of 17 pages for the course Ch. 10 at Ch. 10 (RSM100 Cases UofT.)
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RSM100 Cases UofTWhy Tesla surpassed GM and Ford? - ANS--Global trend
-Future potential
-Elon Musk
-Solar Energy
-Going Green
-Strong brand
-Investing
-Uncertainty about oil
-Growth Potential
How to sustain profitability for Tesla? - ANS-- Develop new models
- Invest in advertising
- Customer service
-Lower prices
- Non-duplicable
Why would Tesla take such a risk? - ANS--No true competitors
- Investment
- Growth potential
Strength of Tesla - ANS--Trustworthy
-Quality
-Uniqueness
-New techno
-Eco-friendly
-luxury long-rang electro car
-strong control over production prices
Weaknesses of Tesla - ANS--high prices
-limited supply chain
-not enough cars produced
-high debt load
-unable to organize production
Opportunities of Tesla - ANS--Global sales expansion
-global supply chain expansion
-business diversification
,-many people are waiting for model 3
-cost reduction initiatives
Threats of Tesla - ANS--Competitors
- Dealership regulations
-Falling wheel prices
-funding production ramp
Starbucks Case - ANS--no coffee culture before 1980
-store transition into cafe
-high quality beans
-agressive expansion
-accelerated growth
-2008 crisis dropped S sales by 50%
-Stores shuttered
-Recovery started
-profit cannibalization
Sales were growing in general, but not in all locations. Some of them were empty.
-Changing customers preferences.
-Roastery
-Halo effect
Management's contribution to Starbucks' success? - ANS--consumer oriented
-implemented cafe culture
-knew where to cut the stores
-retrained personnel- adjusted all stores at once
-marketing-drew attention
-changing to meet the demand
-opening roasteries as new potential and new experience for the customers
How did Starbucks' management respond to challenges? - ANS-- the need for healthier
food and drinks
- Created food delivery which is going to be established in 2019
- Competiton
-Profit cannibalization
-Financial crisis
-Halo effect
Dollarama case- Going online - ANS--appeals to people who probably cannot access it
physically
, -appeals to small businesses
-to maintain sales can shut down locations in several places
-Easier and less costly to do bulk purchases
-Targets new market
Risk of Dollarama's Going Online? - ANS-- Shipping and delivery can become an
excess expenditure
(might be compensated by bulk option)
- Black marked increased probability
Why Dollarama may not succeed? - ANS--Who would buy in bulk from a dollar-priced
store? What the quality might be?
- Time issue of waiting for a thing that is needed immediately
-Customer cannibalization by low prices--> Market failure? Lower prices in general?
Bankruptcy?
US gov-t shutdown Case - ANS--Conflict between president and congress a bout
setting up a border (wall) with Mexico costing 5.7 billion dollars
-No incentive for budgeting from democrates
-Trump wont go back- not that kind of a leader
US gov-t shutdown effects - ANS--The wall was supposed to remove illegal immigrants,
but if to look more attentively- it will cause more damage for the US economy
-Workers are either not working or working without payment
-Taxes are not returned
-No subsidies for farmers
-Partial shutdown is actively going on
-No bill payments from gov-t at all
-activities in t he economy ate slowed down or shut down
-New York airport is closed
Most affected areas are Small Businesses, Farmers, Local Parks, Parking lots, Health
-care, Public Sectors.
Uber Case - ANS--Sexual harassment, sexism
-Was not taken seriously
-The worker was not fired, too valuable for the company
-Unprofessional behaviour
-The business culture was wiped off if there even was a culture
-Solutions are coming down the road
-Workers find sneaky tactics
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