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Retrenchment

Sony (problems from the economy):

Sony has been suffering because of the strength of the Yen, making its products more
expansive internationally.
Disruption caused by natural disasters.
Firm has been too bureaucratic in the face of technological change from Apple and
Samsung.
Sony has diversified in many industries and…

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Change in demand - holiday makers now want more personalization in holidays which has
become much more easy with the internet.
Previous strategy of cost leadership with low operating costs, high asset turnover and
control over the supply chain no longer effective - need to differentiate.
They were suffereing a…

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Sustainability

Cooperative group (method of differentiation):

Credit crunch caused consumers to question the capitalist model - recession provides
Co-op to grow by trading on ethical conditions.
Struggling to compete with the big supermarkets, needed to change.
Works on the strategy of having members who invest into the business - not…

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Starbucks have set up farmer support centers in Ethiopia, Rwanda, Tanzania, China and
Costa Rica.
Provides support to coffee farms, helping them to increase the quality of their coffee and
their profitability.
Support farmers financially when they have no revenue due to the seasonality of harvest.
Help communities sustainably thrive…

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Technological Change

Nokia (failed to notice change in the market - complacent on success):

Nokia was the leading mobile phone company.
Rivals have entered the market with high end smartphones.
Launch on the iPhone in 2007 has cut Nokia's market value by $88bn.
Unable to keep up with iOS and…

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Emerging markets:

Dyson (lower fixed costs):

Moved to Malaysia - cut 800 jobs.
Suppliers are based in the far east.
Products do well in Australia and NZ and Japan, plan to target other Far East countries
also.
R&D will remain in the UK - with at least 1000 employees.
UK…

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Leaders:

Kazuo Hirai - Sony:

Employed as CEO to initiate a retrenchment strategy and recover the company from loss.
8 years consecutive loss in TVs.
Has to cut divisions that are not profitable.
Focus on core products.

Stephen Elop - Nokia:

Hopes to turn around Nokia.
Canadian - hopefully more…

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Organizational Culture

Google (innovation):

Larry Page encourages employees to move away from bureaucracy.
Not afraid to invest in crazy ideas - wants people to understand that you don't get
anywhere unless you start investing resources into research.
Sometimes you can't know exactly where you're going.
E.g. Google adsence was developed…

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Economy

Interest rates - 0.5%
Consumer price index fell from 3.5% to 3% between March and April.
Unemployment has fallen by 45,000 to 2.63m from Jan to march.
UK has returned to recession after contracting 0.2% for the last 2 quarters.
GBP has fallen against the USD from around 1.63…

Comments

chelsie croucher

Thank you so much for this ! 

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