This case study is a great example of how Companies uses Strategic Management as the principle while forming any strategy for their business. It also showed how Apple, Kellogg's & Skoda used strategic management priciples like aims & objectives, planning & organizing, communication, different matrixes (BCG, GE9) to overcome all the hurdles and reach new heights.
2. Overview
• Introduction to Strategic Management
• Different types of Matrix
• Case Study – 1 – Kellogg’s
• Strategy using aims & objectives
• Key Takeaways
• Case Study – 2 – Skoda
• Strategy using SWOT analysis
• Key Takeaways
• Case Study – 3 – Apple
• Strategy using GE9 & SWOT Matrix
• Key Takeaways
• Call to Action
3. “Strategic Management is a
stream of decisions and
actions, which leads to the
development of an
effective strategy or strategies
to help achieve corporate
objectives.”
- Glueck and Jauch
4. • It is a systematic process.
• It focuses on objectives.
• It involves multiple decision.
• It is universally applicable.
Features of
Strategic Management
7. The Kellogg Company doing business as Kellogg’s, is an American multi-national food manufacturing
company headquartered in Battle Creek, Michigan, United States. Kellogg’s produced cereal and
convenience foods, including crackers and toaster pastries and market their product by several known
brands Corn Flakes, Frosted Flakes, Pringles, Eggo and Cheez-It.
Kellogg’s aim to reinforce the importance of a balanced lifestyle so its consumer understand how
balanced diet and exercise can improve life.
Kellogg’s has a 42% market share in Uk’s breakfast cereal market. The company has developed range of
products for the segments within the market and targeted all age groups over three years old.
8. CASE STUDY
When preparing a strategy for success, a business needs
to be clear about what it wants to achieve. It needs to
know how it is going to turn its desire into reality in the
face of intense competition. Setting clear and specific
aims and objectives is vital for a business to compete.
This Case Study looks at the combination of these
elements and show how Kellogg's prepared successful
strategy by setting aims and objectives linked to its
unique brand and unique position in the minds of its
consumer.
10. One of the most powerful tools that organisation use is Branding. Managing a brand is a part of a
process called product positioning.
To promote the message “Get the Balance Right”, Kellogg’s was part of various debate about health
and lifestyle.
Encourage and support physical activity among all sectors of population.
Increase the association between Kellogg’s and health & activity.
Introducing food labelling to communicate with the consumers to provide valuable information.
Sponsoring activities and run community programmes for its consumers
This are some of the objectives set by Kellogg’s which were clear, specific and measurable.
Setting Aims & Objectives
11. Kellogg’s put forward a strategy, designed to meet the stated aim and range of business objectives.
Introduced Kellogg’s GDAs to its packaging, showing the recommended Guideline Daily Amount.
Kellogg’s has been working for many years to encourage people to take part in physical activity.
Kellogg’s become the main sponsor of swimming in Britain, after working closely with the Amateur
Swimming Association (ASA) to ensure that “everyone has the opportunity to enjoy swimming as part of healthy
lifestyle”. This reinforces the brand position & image.
Since 1998, Kellogg’s has invested more than $500000 to help national learning charity ContinYou to
develop nationwide breakfast club initiative. They ensure that children are fed and ready to learn when the
bell goes.
Planning & Organizing
12. Effective Commination is a vital for any strategy to be successful. Kellogg’s success is due to how well it
communicated its objectives to consumer to help them consider how to “Get the Balance Right”.
External Communication
Kellogg’s uses Jack & Aimee to communicate a message that emphasis the need to “Get the Balance Right”.
Kellogg’s advises parents and children about the importance of exercise.
Produced a series of flyers for its customers on topic health and lifestyle.
Internal Communication
Kellogg’s produces house magazine which is distributed to every employees and staffs working for them.
To encourage a healthy environment among the workers they provide pedometer and other health accessories.
Communication
13. ONE:
Kellogg’s demonstrated good
corporate responsibility by
promoting and communicating
the message of “Get the
Balance Right”
TWO:
By setting out measurable
objectives Kellogg’s were
able to achieve their broad
aim.
THREE:
Developed strategies that
engaged Kellogg in a series
of activates and
relationships with other
organization,
FOUR:
The strategies helped to
create a message about
balanced lifestyle for its
consumer.
FIVE:
The strategies also helped
them to set up activities
that help them to achieve
balanced lifestyle.
SIX:
Kellogg’s provided right
information and helped
consumers to make
informed choices about
food & health.
Key Takeaways
15. In Czechoslovakia, two cyclist
Vaclav Klement & Vaclav Laurin
designed and produced their first
own bicycle as Laurin &
Klement.
1895
The business was named as Skoda
and started manufacturing cars,
cycles, farm ploughs & airplanes.
1925
Skoda had to overcome hard times over
the next 65 years due to World War 1.
This included war, economic depression
and political changes.
Gap of 65 Years
The Czech Management started
looking for strong foreign partner.
1990
Volkswagen AG (VAG) was
chosen because of its reputation
for strength, quality & reliability
and Skoda became a subsidiary.
1994
Skoda automobiles became a
wholly-owned subsidiary and
started sales over more than 100
countries.
2000
History of Skoda
16. CASE STUDY
To improve performance in the competitive car market, Škoda UK’s management needed to assess its brand
positioning. Brand positioning means establishing a distinctive image for the brand compared to competing
brands. Only then could grow from being a small player. To aid decision-making, Škoda UK obtained market
research data from internal and external strategic audits. This enabled it to take advantage of new opportunities
and respond to threats. The audit provided a summary of the business’s overall strategic position by using a
SWOT analysis. SWOT is an acronym which stands for:
Strengths
the internal elements of the
business that contribute to
improvement and growth
Weakness
the attributes that will hinder a
business or make it vulnerable to
failure
Opportunities
the external conditions that could
enable future growth
Threats
the external factors which could
negatively affect the business
SWOT
This case study focuses on how Škoda UK’s management built on all the areas of the strategic audit.
The outcome of the SWOT analysis was a strategy for effective competition in the car industry.
17. STRENGTHS
Škoda has been in the top five manufacturers in the survey for
the past 13 years. In Top Gear’s 2007 customer satisfaction
survey, voted Škoda the ‘number 1 car maker’.
Škoda’s Octavia model has also won the 2008 Auto Express
Driver Power ‘Best Car’.
Škoda adopted a strategy focused on building cars that their
owners would enjoy. It has considered ‘the human touch’ from
design through to sale.
Škoda’s biggest strength was the satisfaction of its customers.
This means the brand is associated with a quality product and
happy customers.
WEAKNESS
Škoda has only 1.7% market share. This made it a very small player
in the market for cars, due to out-dated perceptions of the brand.
In the past the cars had an image of poor vehicle quality, design,
assembly, and materials. Crucially, this poor perception also affected
Škoda owners.
From 1999 onwards, under Volkswagen AG ownership, Škoda
changed this negative image. Škoda cars were no longer seen as
low-budget or low quality.
It needed to stop being defensive in promotional campaigns. The car-
buying public and the car industry as a whole needed convincing that
Škoda cars were great to own and drive.
SWOT ANALYSIS
18. OPPORTUNITIES
Škoda noted that its competitors’ marketing approaches focused
on the product itself.
Škoda UK discovered that its customers loved their cars more
than owners of competitor brands, such as Renault or Ford.
It focused on its existing strengths and provided cars focused on
the customer experience.
The focus on ‘happy Škoda customers’ is an opportunity. It
enables Škoda to differentiate the Škoda brand to make it stand
out from the competition. This is Škoda’s unique selling
proposition (USP) in the motor industry.
THREATS
The UK car market includes 50 different car makers selling 200
models. Within these there are over 2,000 model derivatives.
Škoda UK needed to ensure that its messages were powerful
enough for customers to hear. If not, potential buyers would overlook
Škoda.
In the UK the Škoda brand is represented by seven different cars.
Each one is designed to appeal to different market segments.
Each model range is priced to appeal to different groups within the
car market. The combination of a clear range with competitive
pricing has overcome the threat of the crowded market.
SWOT ANALYSIS
19. ONE:
Skoda offered a range of
products in a highly
competitive and
fragmented market.
TWO:
The company responded
positively to internal &
external issues to avoid
losing sales & market share.
THREE:
The SWOT Model helped
managers to look internally as
well as externally and the
information derived from the
analysis gave direction to the
strategy.
FOUR:
It highlighted the key
internal weaknesses, it
focuses on strengths and
alerts managers to threats
& opportunities.
FIVE:
Skoda transformed its
brand image & build its
competitive edge over
rivals.
SIX:
Developed marketing strategy
based on customer happiness
and focused on customer
experience which helped them
to overcome weakness and
opened to new opportunities.
Key Takeaways
21. Apple is an American multi-national technology company headquartered in Cupertino, California that
designs, develops and sells consumer electronics, computer software and online services. It is considered
as one of the Big Five companies in US.
Apple was founded by Steve Jobs, Steve Wozniak and Ronald Wayne in April, 1976.
In 1996, the Apple brand was bordering on bankruptcy. They were making bad decisions with
inconsistent strategies and most importantly, there was no big idea for what Apple stood for.
After Steve Jobs came into Apple in 1997, everything he did was built around the big idea of "making
technology so simple that everyone can be part of the future." He took a consumer first approach in
a market that was all about the gadgets, bits and bytes.
BACKGROUND
22. STRENGTHS
Most valuable brand – Apple is ranked #1 for the 8th
consecutive year by Interbrand, with a brand value of $
322 billion.
Globally Iconic – One of the most reliable company
when it comes to personalized advance computers and
smart technology devices.
Proficient Research – Apple puts dedication into its
product designs. Careful study & further research is
performed to help understand customers need and
requirements.
WEAKNESS
High priced product – The products are priced for
middle and high-income consumers. Low-Income
consumers can’t simply afford Apple products.
Incompatibility with other software – Apple’s
product do not support other software or technologies
making them incompatible with other devices.
Allegation of Tracking – Apple has been accused of
using tracking apps in its phone, which revealed the
precise location of the users and poses threat to them.
SWOT ANALYSIS
23. OPPORTUNITIES
Consistent customer growth – Apple provide top
quality technology that offers great customer experience.
Customer retention rate is 92%.
Expansive Distribution Network – Apple has the
opportunity to expand its distribution network & can
generate higher revenue & sales.
Qualified professionals – Apple’s researchers,
developers and product specialists are team of highly
qualified having years of experience in branding
consumer products.
THREATS
Coronavirus Outbreak – The outbreak has
significantly affected and may continue to disrupt Apple’s
sales in the fiscal year 2021.
Apple bullied by Counterfeits – Apple has become
vulnerable to third world countries illegally utilized the
brand to sell counterfeit products.
Market Penetration – Their has been a significant
change in market penetration by other brands. Android
has captured 72.23% of the market share while Apple has
only 24.55% globally.
SWOT ANALYSIS
24. GE MULTIFACTOR PORTFOLIO MATRIX
Business Unit Strength
Industry Attractiveness
STRENGTH AVERAGE LOW
HIGH IPAD IPHONES
MEDIUM IPAD & ITUNES LAPTOP
LOW
I MAC &
SOFTWARES
25. BOSTON CONSULTING GROUP MATRIX
HIGH LOW
HIGH
IPHONES
APPLE WATCHES
APPLE TV
HOME PODS
LOW MACBOOKS & IMACS IPAD
26. ONE:
Apple offers a range of
products in a competitive
market of different
segments.
TWO:
The company responded
positively to internal &
external issues to avoid
losing sales & market share.
THREE:
The SWOT, BCG & GE9
model helped Apple to look
internally as well as externally
and the information derived
from the analysis gave direction
to the strategy.
FOUR:
It highlighted the key
internal weaknesses, it
focuses on strengths and
alerts managers to threats
& opportunities.
FIVE:
Apple transformed its
brand image & build its
competitive edge over
rivals.
SIX:
Developed strategy based on
customer first approach and
focused on customer
experience which helped them
to overcome weakness and
opened to new opportunities.
Key Takeaways
27. • Strategic management is a continuous process which is essential in the success of the organization.
Organizations are supposed to make sure that they engage in strategic management because
organization success and survival depend on strategic management.
• The Case Studies were great example of how companies used strategic management as principle while
making a strategy to get the best out of the situation they were facing.
Call to Action