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Some points to keep in mind

Business strategies, by their very nature, are continually subject to change. Regardless of a company's past performance, innovative ideas are absolutely essential if the company wishes to increase or even maintain its market share. Since business is not a science, however, it is impossible to determine exactly how long a particular strategy should be employed before it is changed. Premature shifts in marketing strategy often have negative results. At the same time, in order to minimize losses, it is important to recognize when a strategy is not successful so that it may be altered.

In this case, the dilemma is precisely that described above. Comtec's strategy initially was to produce microcomputers for general industrial use. When that was not successful, Comtec targeted two specific areas: materials-testing automation and chromatography automation. Now, that strategy too seems to be failing. Is it, however, the case, as Mr. Otto believes, that simply more time is needed to penetrate these special targets, both domestically and overseas, or is a new direction needed? Finally, is the radical change proposed by Ms. Malcolm the right direction if Comtec should decide to change its strategy?

Checklist and worksheet

In coming to a decision about this case, did you consider the following?

Malcolm's recommendations Otto's original marketing strategy. The importance of the European office The poor financial situation of Comtec Otto's revised strategy.

The risks involved in radically changing the nature of the corporation

What other factors should be considered?

Decision:

Discussion questions

I. Background and Dialogue

1. What does Comtec Corporation do? What is its major product? For what market does it manufacture?

2. What are Malcolm's three major recommendations?

3. How would you characterize Otto's position regarding the new marketing strategy? Needham's?

4. At the end of the Dialogue Malcolm has a very long speech in which she lays out her recommendations. What is the overall effect of that speech? Is her tone authoritative or weak? Are her points clearly made? Do the recommendations seem to help support the issues raised earlier in the Dialogue?

II. Exhibits and Supporting Materials.

1. Analyze the ad in Exhibit 1. Is it easily understandable or too technical? Does it seem appropriate for the audience it is trying to reach? If yes, how? If not, how could it be improved?

2. Exhibits 2 and 3 show Comtec's financial situation. Judging from these figures, is Comtec in serious trouble? Support your answer with specific references to the exhibits.

3. Does Exhibit 3 suggest that Otto is adopting Malcolm's suggestions? Why or why not?

4. Evaluate West's letter (Exhibit 4). Does it seem encouraging? In your opinion, what do the following sentences really indicate?

Involvement assignments for Case Analysis Studies: The Comtec Case

  1. What is the usual first sign (to the top management of the company) that the current business strategy is not cost-effective? Can remedial measures be employed at this stage?

  2. Should the company look for a new market or a new approach to their traditional one if their current business stage is a failure?

  3. In your estimation does the Comtec Co. have a choice or they have to follow the rigid plan suggested by their consultant?

  4. What is the fastest and legally valid way for a company to expand its market share?

  5. Are shifts in marketing strategy vital for the financial well-being of any company? Prove your point.

CASE 2

THE MONSTER CHOMP COOKIES CASE

PREREADING EXERCISE

Discuss the following questions in class before reading the case.

1. What is your favorite commercial (on television) or advertisement (in a magazine or newspaper)? What in particular do you like about it?

2. What can a company do to promote a new product?

3. When a company wants to market in another country a food product that was successful in the home country, what cultural differences does it have to take into consideration?

4. In your country, how do companies promote snack foods such as cookies and crackers?

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