Levis Case Study

7897 Words 32 Pages
Register to read the introduction… How might it position Levi Strauss relative to its chief rivals? b) Run the numbers in the case to analyze the profitability and investment per pair of jeans under the proposed program (see the blank column of Exhibit 1). Note that the numbers were provided by a 3rd party (CCTC) interested in promoting the investment & joint venture. That doesn’t mean it is a bad idea though… c) Are there any assumptions you think are unreasonable? d) Would this program yield a differentiation advantage? Why/Why not? e) If the program were to run afoul of predictions, how and why would you expect problems? f) What might prevent rivals from imitating this product? g) What counter measures would you suggest to Heidi to address concerns about rivals? 3) Links (optional follow up – not required to complete the case analysis): a) Levi-Strauss: www.levistrauss.com b) Mass customization links: http://www.managingchange.com/masscust/overview.htm 4. 2/6/08 – Complementarities and Multi-business Strategies. Part of building new capabilities within a firm involves understanding and exploiting complementarities among activities. One aspect of this is taking advantage of synergistic opportunities in a portfolio of businesses. Accordingly, the next few sessions focus on how to create value in the multibusiness firm. So many prominent firms have multiple businesses and yet, as we shall see, the prospects for creating value are actually quite limited. This class will involve some lecture and discussion to refresh you on the topic, which was covered briefly in your first strategy course. a. Read: 1) Goold and Luchs, Why diversify? Four decades of thinking (15p – skim this if you covered corporate strategy well elsewhere) 2) Optional: Palich, Cardinal, & Miller (2000): Curvilinearity in the DiversificationPerformance Relationship: An examination of over three decades of research. Strategic Management Journal, …show more content…
4/14/08 – Managing real options (Exercise: Getting some exercise). We now turn to the question of how real options work in organizations – beyond valuation techniques. In the exercise, “Getting Some Exercise” we simulate some of the organizational issues surrounding real options. How would options work in practice? a. Read: 1) Coff & Laverty, Real Options on Knowledge Assets (7p) 2) Janney/Dess, Can real-options improve decision-making? (15p) b. Discussion Questions: 1) What are some possible challenges in applying a real options approach? 2) How does real option valuation differ from financial options? 3) How would you cope with the challenges you identified? 22. 4/16/08 – Credible commitment vs. options (Case8: Airbus A3xx). Options are all about the value of flexibility. In this class, we examine some of the potential costs of maintaining flexibility. We will spend the class on an analysis of Airbus’s decision to invest $13B in the world’s largest commercial jet. a. Read: 1) Optional: Prahalad & Hamel (HBR): Strategic Intent (14p) b. Written Case Analysis (Case8: Airbus A3XX: Developing the world’s largest commercial jet) 1) Your Client: Noël Forgeard (Airbus CEO) hired you to analyze the decision about whether to move foreword with the A380 jumbo jet. 2) Hints: The following are some hints (note, your assignment is to respond to Noël Forgeard and not to answer each question below. Nevertheless, these may help you get started): a) Coping with Uncertainty. How should they cope with the uncertainty in this decision? What are the pros & cons to alternative methodologies? You will need to justify

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