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    Business Policy Case Questions

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    1. How effectively does Coca-Cola achieve the three tests of a winning strategy? Why?

    2. Describe the strategic management similarities between Sara Lee and Davita. Why? How do they impact the strategic management?

    3. Proctor and Gamble is under pressure to improve its profitability by reducing costs. How should they use value chain analysis to do hits? Why? See attached article

    4. Critique the recently announced acquisition between Tempur-Pedic and Sealy. Why?

    There are 4 questions. I need detailed answers for understanding. Could you help me please?

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    Solution Preview

    Coca-Cola effectively achieves the three tests of a winning strategy. The strategy of Coca-Cola is to differentiate the product using its well established brand. It also uses its taste and the network of bottlers to reach customers in several parts of the world. The first test is the goodness of fit test. This strategy of Coca-Cola is well matched to industry and is competitive. The customers expect their aerated drinks to be branded, reputed, and have a well recognized taste. The second test is the competitive advantage test. The differentiation strategy of Coca-Cola has led to global brand recognition and is the preferred aerated soft drink in several parts of the world. The competitive advantage has enabled Coca-Cola to establish bottlers in different parts of the world. The third test is the performance test. A good strategy boosts performance. Coca-Cola's strategy has boosted the performance of the company. Today, Coca-Cola is being sold in more than 200 countries and its net profits are $8.6 billion. This performance shows that the strategy of Coca-Cola is successful.

    The strategic management similarities between Sara Lee and DaVita are that both companies focus on niches. Sara Lee actively seeks for and finds niches for its food ...

    Solution Summary

    The response provides you a structured explanation of Business Policy. It also gives you the relevant references.