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h 2017 Pre- Assignment Notes - Before You Begin The SGM First order of business, due this week -The Strategic Group Map (SGM or What the Heck is That?...

I've been assigned a problem due tomorrow afternoon regarding a Strategic Group Map. I haven't really done this before so I am very unfamiliar. I would like some help if possible. I'm starting the project now myself, but any tips or guidance is greatly appreciated so I know I am on the correct path.


For this Discussion Forum, make sure you read the Pre-Assignment Notes posted within this week before you begin your assignment. Then, please document all of the steps you used to create a specific strategic group map for the pizza industry (not the products, the industry). You need to prepare the narrative part of this assignment to demonstrate your thought process in addition to the Strategic Group Map (SGM).

In your narrative, list at least ten (10) competitors and ten (10) dimensions you considered. Then create and include a strategic group map, based upon the following industry definition:

The Pizza Industry includes manufacturers or assemblers of pizza for sale and relatively immediate consumption in full pie/trays to consumers in the United States. Companies that produce primarily frozen pizza are excluded as are grocery stores and food courts.

In your documentation, you should discuss what is "strategically relevant" about each of the two dimensions you chose for your SGM and, once you have created the SGM, the information about the industry that you might derive from it.

A note for assignments later in the term, such as your major team case assignment: you need to prepare only the final maps later, not the narrative required here in this assignment. You will not need to list all of the steps and decisions needed to develop Strategic Group Maps (SGM) as you do here.


Read the "Pre-Assignment/Before You Begin" notes posted in Week Two before you begin your work for some additional information about this assignment.

MGT 509 All Sectons Revised March 2017 Pre- Assignmen± No±es - Before You Begin The SGM First order of business, due this week -The Strategic Group Map (SGM or What the Heck is That?) We’re beginning by looking a± where organizatons opera±e from ±he ±op down, beginning wi±h ±he indus±ry Frs±, and ±hen ±rying ±o de±ermine segmen±s wi±hin an indus±ry. An indus±ry segmen± is no± ±he same as a marketng segmen±. Marketng segmen±s rela±e ±o cus±omers, geography or produc±s, while indus±ry segmen±s rela±e ±o individual companies and direc± competton among ±hem, an impor±an± distncton. Companies in ±he same segmen± can have some similar approaches ±o buyers, or have similar capabilites, or have similar produc± lines or all of ±he above. Marketng segmen±s as we know ±hem rela±e ±o functonal level s±ra±egy and examine which produc±s migh± compe±e agains± ano±her. The ±erm segmen±s, in ±he con±ex± of ±his course, rela±es ±o business-level s±ra±egy in which one company (us) compe±es agains± o±hers wi±hin ±he same indus±ry. Forgive me, some of the next few paragraphs repeat some previous reading…just in case. Las± week you rewro±e an indus±ry deFniton. Once developed, ±he indus±ry deFniton provides a boundary ±hrough which one can perform ±he analyses necessary ±o unders±and an indus±ry. Try ±o disregard formal deFnitons used for insurance and s±atstcs ±ha± you migh± have used wi±hin your work. Ins±ead, ±hink of ±he indus±ry deFniton as a boundary erec±ed for your own purposes, namely ±o enable your work (analysis), much like you migh± ±hink of a fence around a proper±y you own. You migh± own a nice piece of land, wi±h only portons of i± a²ractve enough for use. On ±ha± land, you erec± a fence for your own purposes. A fence does no± necessarily conform ±o ±he proper±y boundaries shown in ±ax records for various reasons. You may wish ±o provide a safe play area for your children or a pe±; you may need ±o accommoda±e a hedgerow ±hree fee± from ±he proper±y boundary; you may need ±o leave a piece of utli±y equipmen± ou±side ±he fence, so ±ha± a utli±y provider can access i±. Think of ±he measuremen±s of ±he land as an indus±ry boundary deFned by some governmen±al agency for ±ax purposes or for consis±ency of insuring like propertes. Think of ±he fence you buil± as es±ablishing a useful perime±er ±o sui± your needs. One should ±hink in a similar manner of an indus±ry deFniton. The indus±ry deFniton is a ±ool ±ha± es±ablishes ±he useful area of ±he indus±ry (from your perspectve) in which competton occurs. We build ±he deFniton ±o sui± ±he needs of performing ±he analysis necessary ±o formula±e s±ra±egy. ³ancy-schmancy formal proper±y boundary for survey or ±ax purposes ³ence wi±hin proper±y bounds of ±ruly usable or operatonal space (crea±ed boundary)
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MGT 509 All Sectons Revised March 2017 On ±he previous page is an elemen±ary model of a proper±y (±hink indus±ry) if we observed ±he proper±y from overhead. Think of ±he i±ems (±rees, house, pool, driveway) wi±hin ±he crea±ed proper±y boundary as representng companies. We can see some i±ems clus±ered ±oge±her, some distnc±ly separa±e, and some emp±y space. If we comple±e our work properly, we’ll see similar clus±ering and separaton of ±he companies competng in an indus±ry on ±he ±ool we’ll develop ±his week, ±he S±ra±egic Group Map. Once you’ve es±ablished your indus±ry boundary by creatng ±he indus±ry deFniton, ±he Frs± analysis ±ool you’ll wan± ±o use is a Strategic Group Map (SGM) The SGM has as one i±s purposes, ±he identFcaton of clus±ers of companies competng on a similar plane, and possibly, competng in a similar manner . By measuring compet±ors based on some unrelated s±ra±egic a²ribu±es called dimensions (like variables on a 2D graph), we can identfy ±he segmen±s of an indus±ry. Wi±h segmen±s identFed, we may begin ±o discover some Key Success ³ac±ors for an indus±ry segmen±. Key Success ³ac±ors are “±he s±ra±egy elemen±s, produc± and service a²ribu±es, operatonal approaches, resources, and compettve capabilites ±ha± are essental ±o surviving and ±hriving in ±he indus±ry.” 1 No less impor±an±, ±hrough ±he SGM, we can identfy areas of an indus±ry where li²le or no competton occurs (emp±y). ³inally, ±he SGM can serve ±o sugges± a possible directon for fu±ure s±ra±egy. The SGM is a Fne example of a ±ool ±ha± bo±h shows and ±ells. In combinaton wi±h o±her segmen± level analyses and sparse narratve, a S±ra±egic Group Map can be qui±e powerful and convincing. The map is one of ±he mos± di´cul± analyses ±o crea±e/perform in case analysis, bu± i± lends a visual s±ruc±ure (in ±he form of a ±wo dimensional graph) ±o an indus±ry and po±entals of s±ra±egic s±ory. We frame ±he SGM wi±hin ±he indus±ry deFniton, meaning ±ha± we place no±hing on ±he map ±ha± does no± fall wi±hin ±he artFcial bounds we crea±e wi±h words of ±ha± deFniton. ³or example, if we s±a±e in our indus±ry deFniton ±ha± ±he companies wi±hin i± have gross annual revenues grea±er ±han or equal ±o $1 million, ±hen we would no± place companies wi±h less ±han $1M in gross revenues on our SGM. So, 1Thompson, p. 72. 2 emp±y emp±y Segmen±s Emp±y Areas
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1 Running head: STRATEGIC GROUP MAP Strategic Group Map
Student’s Name
Strategic Group Map
For the developed organizations, both the number of sales...

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