MGT 322 Business Strategy I

MGT 322 Business Strategy I

MGT 322 Business Strategy I

Q1. Environmental Sustainability Issue: Conflict At The Body Shop
a.Explain the primary responsibilities that a CEO must uphold and whether Ms Roddick’s leadership style was successful in doing so. (20 marks)

b.Did her support for social-environmental issues fulfill positive functions regarding corporate cultural intensity and integration as well as brand image? (20 marks)

c.Did her involvement in activism contribute to her failures?  How would argue that, under Roddick, Body Shop faced an agency problem? Explain whether you would like to work for a CEO such as Roddick? (20 marks)
Q2. Defends Its Propitious Niche
According to Porter, the main entry barriers against potential competitors are the following: 

.rivalry among existing firms 
.switching costs 
.capital requirements 
.economies of scale 
.government policy 
.access to distribution channels.
.Cost disadvantage (faced by competitors) 
a. Explain which of the above entry barriers were dominant in the case of SAB, outlining also the meaning of each one of them. (20 marks)

b. Explain the meaning of the Propitious Niche. Judging from competitors’ reaction, how can you tell that SAB did manage to secure it? (20 marks)

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