Exam Questions
Name
Institution
Date
Question One
(a) Concept of strategic group analysis
This is where organizations with similar characteristics, strategies, or that are competing on similar bases are identified; this is a concept that is normally used to identify which organization is the direct competitor and which basis are they competing on (Mascarenhas & Mascarenhas, 2019). It also helps the company identify its strategic problem so that when a strategic plan is drafted, all the identified problems should have been addressed.
(b) Business Strategies Comparison
The multiplex cinemas are have incorporated economies of scope in the business strategic level as opposed to art house/independent cinemas, therefore as a business, they are lowering the average cost of their services since the cost of their services are spread across the variety of multiple screens they are offering which are also spread in various locations (Hanson, 2019). This will give them a competitive advantage over art house/independent cinemas since customers will have a variety to choose from instead of their competitor, who only offers a single service at a given point in time.
(c) Strength rivalry of the market segment
multiplex cinemas, which uses geographic market segmentation by offering its services to different locations, have allowed it to be cost-effective since they will offer different movie theatre based on the customers who are in those location-specific areas of interest, hence avoiding any inefficient spending. On the other hand, art house/independent cinemas using psychographic market segmentation are more concerned about the valued customer is experiencing and the satisfaction that is why they are offering a single-screen service. By doing so, they can attract more customers (Sinwell, 2018).
Question Two
I would recommend that multiplex cinema changes its business model; this is where the company will align its new model to current market trends that are taking place; by doing so, they will understand what their customers’ needs. The company should develop an ecosystem that is more collaborative with the industry’s existing players; this is where the company can make deals with parties that supply them with the movies the display on their screen. That would be one way of allocating risk they might have and at the same time ensure there is a possibility of cost reduction; the contracts can be on the basis that for every amount of people who watch their movies, they will be allocated a given amount of profit; but only if they will agree to share with them some of the risks they might experience at any given point of time. The barrier that may exist is the existing preference for movies by many customers.
Question Three
(a) Corporate Governance
Corporate governance is normally a collection of processes, relations, and mechanisms used by different parties to operate and control the corporations. Sustained competitive advantage and good governance are linked since they ensure the business stays on top for a long time (Bhagat & Bolton, 2019). Due to the organization’s good decision-making as a result of good governance, the business can have a well-sustained competitive advantage.
(b) Changes to governance Proposal
There should be a clear change in the leadership role that exists in AMP, where before a person is an assignment a role, the company should ensure they have the time and the skills to achieve those deliverables and responsibilities. This would have been done back in 2018 when David Murray was appointed to replace Catherine Brenner as chairman of the company, who had been considered not to be the right person to salvage the tattered reputation AMP had at that time. Also, the decision of the board led by Murray to promote Boe Pahari as an executive was awful since he had records of sexual harassment; the fact that he was now being promoted to an even higher position despite concerns from staff members is what led the company to have a terrible reputation (Keneley, 2020).
All this problem would have been solved if the company had appointed a competitive person to be the company’s chairman. Hence Boe Pahari would not have been promoted to that position. The business should stop being obsessed with profit generation at the expense of every other thing; the company’s culture should be changed to accommodate everyone, not only the shareholders. Therefore the new leadership should support social license and maintain proper ethical standards.
Question Four
(a) Expanding internationally
The business will have the opportunity to acquire new revenue potentials because it will have access to a large customer base. If the business is successful, it can generate new revenue streams from the new market.
The company will have the chance to get greater talent access; this is because it will get new potential employees who will possess a unique mindset and skills (Mockaitis et al., 2018).
(b) Risk of entering new markets
Currency fluctuation is a major risk that can end up wiping out the company’s gains; it may change how the company manages its transactions and specifies its terms of the contract; this is because currency normally fluctuates daily and sometimes can end up making business unfavorable for the company. This can be mitigated by paying the indigenous companies to hedge the risk for them.
The political climate can also affect the company’s operational processes; this can result from unfavorable government regulations that may negatively affect the business. This can be mitigated by doing proactive market research in advance and later engaging the local experts to negotiate the path for the business at an early stage.
(c) Foreign target market
The foreign market the company can target is the United States of America; I would record the company to enter that market through a joint venture; this is where the company will join together will another company based in the U.S to pool its expertise and resources to achieve the goal of increasing the number of sales of its products (Buckley et al., 2018). This type of entry mode enables the company to acquire new potential revenue from the U.S market and also be able to utilize the talent and skills found in the U.S. The good relationship between that U.S company and the Australian company will cool down the political climate regarding government regulations. The currency fluctuation will have both a positive and negative effect on the company since the U.S dollar is higher than the Australian dollar in the foreign exchange market. Therefore when the company pays for services to their U.S branch, it will be costly to them, and when they are paid, it will benefit them.
References
Bhagat, S., & Bolton, B. (2019). Corporate governance and firm performance: The sequel. Journal of Corporate Finance, 58, 142-168.
Buckley, P. J., Enderwick, P., & Cross, A. R. (Eds.). (2018). International business. Oxford University Press.
Hanson, S. (2019). The Multiplex in Australia. In Screening the World (pp. 217-231). Palgrave Macmillan, Cham.
Mascarenhas, B., & Mascarenhas, M. (2019). Strategic Groups in Business. In Oxford Research Encyclopedia of Business and Management.
Mockaitis, A. I., Zander, L., & De Cieri, H. (2018). The benefits of global teams for international organizations: HR implications.
Keneley, M. J. (2020). The shifting corporate culture in the financial services industry: Explaining the emergence of the ‘culture of greed’in an Australian Financial Services Company. Business History, 1-23.
Sinwell, S. E. (2018). Reinvestigating Art House Exhibition in an Era of Convergence. The Projector, 18(1), 2-5.