week 8

Entrepreneurial Challenges → uncertainty Small Business vs Entrepreneurial Business Size Age Growth : → small business owner (stay small) → entrepreneur (grow rapidly as they age) What is the David Birch Model → Mice: small, changes direction quickly, (small pizza shop) → Gazelles : more agile → Elephants : strong, cannot change direction easily (Petro Canada, TD) CASE STUDIES The Failure of Nordstorm Canada: background ● Multiple problems ● Revenue from tourists stopped during COVID ● Competition: established brand/department stores: The Bay ● Nordstrom Rack: ⅓ of sales, not doing well ● Losing $ from day 1, going on too long (2014-) ● Distraction to main business (US) ● Not differentiating themselves ● No good retail space ● Department store experience vs chanel, louis v, prada WHAT DID THEY DO WRONG: → overestimated value of brand in Canada → closest competitor : holt renfrew → did not understand Canadian market well → market is smaller → overestimated demand for high end goods WEEK 3: Managing and Leading in Organizations What are the 4 Key Managerial Functions 1. Planning Setting performance

- Asses competitiveness: where are my competitors today - Setting objectives for the organization - Competitive differentiation - Turn customer strategies to customer blueprint A regular year: - You make the budget plan what are you going to do to get your objectives - Then goes to negotiation build the bran investment into customers - Now align with the customer move on to being very technical and explicit (graph) - Kick off the year coca cola starlight put up marketing programs - Then look at what actually goes on the shelf a lot of data and science goes where what goes on the top/bottom shelves group by brand or packaging with diff pricing look into it data - Profit: How is the performance with Coca Cola in the store - JBP Principles Profit needs to be greater than sales (profit margin getting smaller problem bc then walmart will stop bc its not making enough money invest into competitors) - Sales volume: Coke in walmart growing 4 and overall 5 why do you care as walmart because you are losing market shares (I lose customers to the last of the market they wanna grow walmart market share vs food basics and so on so you need to focus on that as well) - Growing Sobey vs walmart we don't collide we just try to grow the market as much as possible instead of trying to gain the customers - JBP important bc it helps convey to the customer that I really care about what they're trying to do and grow their business, use strategies together - You’re in for it long term and not at their expense (short term) Coca Cola business Planning process: - Look at the chart on the slide Customer priorities guide our CBP: - Where the cx are coming from and understand what they want - Walmart for ex they tell you exactly what they want to do in their quarterly meetings - You need to see if this aligns with you Learn how to plan based on the Blueprint design: Week 8: Strategy I Foundations of Strategic Analysis - How is the company developing its competitive advantage? - Competitive advantage : have something that is both valuable and rare, hard to duplicate. - Marrying internal capabilities + external environment - Internal - special knowledge or expertise

- People were scared (after data breach) due to stigma of using the website - rebranding as a normal (traditional) dating website “find your moment” (instead of life is short have an affair) - Old ad could only be played at night as it couldn't be shown to children - New commercial good idea or bad? (strategic or not) - Great idea! I’m on board! Sign me up! - Nope bad decision, ashley madison is a cheating website, dont wanna tell friends you met your spouse on ashley madison - Need to make a new brand (they were and always seen as cheating brand by consumer) - OG Problem: they didn't have enough females, so they need to attract females - If they are trying to attract females, they chose the wrong actor for the commercial (he was ugly REAL) - Does not solve their problem in any way - Recently switched back to life is short have an affair Strategies(long term bigger picture) vs Tactics - Battlefield strategy: - Bettelfied tactic: - - Porter's Five strategic forces (looks at attractiveness of an industry - more bargaining power your supplies have and more substitutes is a less attractive industry - Porter's Generic Strategies (are you competing based on cost or differentiation) - BCG mature approach to corporate strategy formulation - High market share and growth rate - pursue growth strategy - Low market growth and market share - pursue entrenchment strategy - High market share , low market growth - cash cows - High market growth, low market share - where do you go (growth strategy, entrenchment strategy) CASE STUDY Target: - Video - Rushed mess, costed a lot of money, poor real estate decisions - Was not the same feel as the American target experience - Target saw a lot of potential as the close geographical location ,english speaking, and canada’s colour being red - Assumed canada and american carbon consumption is the same - Supply chain was not properly structured (lots of data errors) - overstock of items when the shelves were clear - Lots of competition already (giant tiger, walmart, etc) - underestimated canadian brands

- Skillset did not match the challenges - like inventory management - 2013 data breach in the USA, therefore causing costly issues and loss of consumer trust (17000 employees lost their jobs) - Why did Target Expand into Canada - Similar to the US market - Spoke the same language - Walmart was successful - Nearby - Bought Zellars (both red and white - What mistakes did Target make in the Canadian market? - Their expansion was very quick - Entire canada population can fit into one us state - Ratio of warehouses to stores in canada is significantly higher because of disperse population - Became a logistical nightmare to ship stuff to stores - In retail go big or go home doesn't work - One warehouse in toronto area, and focus on that area first before expanding - Underestimated the existing competition - Key competition was walmart (and they had no competition - zellers wasn’t even close to walmart) - Walmart already had loyal customers (may go to target for the fun) - Misjudging canadian consumer - In canada we are more flyer driven in the us they are more coupon driven - Cannot bring the same marketing techniques here - Executives did not understand the consumer habits of canadians - Prices were not competitive - had to compete on price (known to have lower prices) - Suppose to sell cheap but started selling expensive - Private Brands - What distinguishes target and walmart in the US - may be better quality, their target specific brands (private brands) - They have private brands that we do not have here - target did not bring these brands into Canada, which is what consumers were looking for - They brought things canadian can get anyways- not giving them what they expected - Poor logistics and planning - Not understanding that canada was more dispersed than america - Walmart was a lot more organized - Shelf depths messed up things significantly - target was running out of space, stocking out because there wasn't space (people would go and see empty selves) - Lack of online presence, weak digital security