Read the case of “Staples, Inc.: Revising the Strategy” on pages 489 to 491 of the textbook and answer the five questions below. Do not answer the questions from the textbook.
Question 1 (25 marks)
Identify the strengths and weaknesses of Staples, Inc. before the arrival of Ronald Sargent. In addition, identify the threats and opportunities this organization is facing.
Use point form with very explicit statements. (There are 2.5 marks available for each good point. Limit your answer to 10 points.)
Question 2 (14 marks)
Staples, Inc. runs a multichannel distribution system that includes stores, catalogues, a Web site, and a field sales force. List a total of seven pros and cons of this system.
Use point form with very explicit statements. (List seven points in total. Do not list seven pros and seven cons.)
Question 3 (20 marks)
What is the added value of offering FleetBoston business chequing accounts in Staples stores? Would you be optimistic about this experiment? Explain your answer using facts from the case.
Make sure to use facts from the case to answer this question.
Question 4 (16 marks)
What are the advantages of having more stores in the same market areas compared to opening new stores in new market areas?
Divide your answer into sections, one for each alternative.
Question 5 (25 marks)
One of the strategic goals Sargent wants to achieve is to maximize the profitability of Staples. Therefore, what type of sales-performance-based incentives would you advise, so that the different Staples channel managers avoid conflicts between managers in the same market area?
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