PenAgain Case Notes - An Entrepreneur Seeks the Holy Grail of Retailing CASE ASSIGNMENT As this small start-up business has grown and established a

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Unformatted text preview: An Entrepreneur Seeks the Holy Grail of Retailing CASE ASSIGNMENT As this small start-up business has grown and established a respectable foothold in the marketplace, the entrepreneurial skills of PenAgain's founders need to be supported with strategic management tools to handle the increased complexities of a growing enterprise. Colin Roche has brought you in as a consultant to help him define a business strategy that can guide the company into its next phase of competition. You will meet with PenAgain's leaders next week. Your goal is to outline a process by which Roche and Ronsse can establish an integrated and coordinated set of commitments and actions for the company to gain a competitive advantage by exploiting its core competencies in its specific product market. You also plan to emphasize the importance of retaining the company's entrepreneurial spirit as it becomes a larger organization, and to consider whether a cooperative strategy is necessary to meet the strategic objectives of PenAgain. During your meeting, you plan to address the following key strategic issues: 1. PenAgain's strengths, weaknesses, opportunities, and threats. 2. The company's core competency(ies). 3. The importance of a well-defined strategy. 4. Customers and their relationships with a business-level strategy. 5. Creating differences between PenAgain and its competitors. 6. The importance of continued innovation. 7. Use of a cooperative strategy to achieve organizational goals. 57 An Entrepreneur Seeks the Holy Grail of Retailing STRATEGIC MANAGEMENT INPUTS 1. PenAgain's strengths, weaknesses, opportunities, and threats. A Situation Analysis gives the company a tool to fully assess its environment. The table below outlines PenAgain's strengths, weaknesses, opportunities, and threats (SWOT), beginning with an analysis of the industry and the product and moving into value chain components which compare Mom-and-Pop retailers with Wal-Mart. Strengths Weaknesses Opportunities Threats Industry No alterations in basic stick design Established competition ($4.8 billion category/segment) Product (Pen) Unique/gimmicky, but looks good Easy to use Ergonomic design Patented Not traditional pen Advertisin g Mom & Pops Door-to-door Wal-Mart Non-traditional Opportunity for creativity and innovation Customer wont get message Cost/profit a Mom & Pops Wal-Mart Daily sales report via Wal-Mart Retail Link software system Daily (hourly) monitoring required 58 An Entrepreneur Seeks the Holy Grail of Retailing Marketing Mom & Pops Can make own schedule Door-to-door Trade shows Building a brand Dont want to sell Wal-Mart products Wal-Mart No support Time lag (8-10 months) Needed third-party merchandise service representatives Poor store placement More representatives know about product Additional costs for service representatives Poor store placement Market Segments Mom & Pops Higher profit margin More style selection(s) Many vendors/accts to manage Need additional salesforce/employees...
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This note was uploaded on 01/06/2012 for the course MGT 4027 taught by Professor Stein during the Winter '11 term at Southeaster Oklahoma State University.

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PenAgain Case Notes - An Entrepreneur Seeks the Holy Grail of Retailing CASE ASSIGNMENT As this small start-up business has grown and established a

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