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Corporate Strategy

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Introduction

CORPORATE STRATEGY & HRM EXAM Final Project Student: Jeanette-Alexandra Smith (1406444) ALBA: MSc in Strategic HRM Professor: Dr. Kyriakos Kyriakopoulos ATHENS - VOULIAGMENI MARCH 2008 Questions 1. Assess the key resources and capabilities of Ducati. Compare them with the resources & capabilities of Honda. Ducati' sTangible & Intangible Resource Analysis Resources Tangible Financial Resources Financially profitable , increase in revenues Tangible Physical resources Excellent plant and operations in Bologna , Outsourcing by 85%, Implementation of the platform approach, Ducati museum, stores, production facilities Intangible Technological resources 'Desmo system'- Desmodromic valve, tubular trestle frame, Ducati's unique sound Intangible Reputation resources Very strong brand worldwide in racing, rich motorcycle history Human Resources Strong Investment in R&D, top ranking engineers & designers, committed and talented managers, training programmes Honda' s Tangible & Intangible Resource Analysis Resources Tangible Financial Resources Multi billion capital, largest motorcycle market share Tangible Physical resources Largest manufacturer of motorcycles, production facilities in Japan and world wide Intangible Technological resources Honda CB750, low emission, fuel-efficient four stroke engine designs, excellent engines manufacturers Intangible Reputation resources Reliable quality and strong brand image Human Resources Extremely loyal and valuable workforce In viewing Ducati's firm in regard primarily to its tangible resources, it can be observed that the business relied heavily on outsourcing. Transferring the production structure to suppliers involved decreasing fixed asset investment, yet was considered necessary to lower costs, improve quality and product control while being flexible to market changes. ...read more.

Middle

Women were also an important target group accounting for 8% of its motorcycle sales. The company communicated the product to its market through specialized magazines, by participating in racing events and by displaying motorcycles through a series of events and activities (auctioning at Sotheby's, window displays at Harrods, cooperating with clothing designers, etc). The company also made a limited edition of motorcycles and offered custom made bikes with components to increase the performance and individuality of the motorcycle. Moreover, a museum was built to celebrate Ducati's technical achievements and racing tradition. The company's infrastructure is heavily dependent on new technology product development and design excellence while maintaining a strong outsourcing policy in other areas and rationalizing the network of suppliers. By adopting quality dealership support and strict supplier selection procedures through having only short term contracts with its suppliers, ultimately led to an increase in the quality and reliability of the Ducati Brand. The R&D department consists of highly skilled engineers and designers while it cooperates with the racing and marketing divisions. Price control and brand positioning of Ducati's products in its independent and selected geographical located retail stores have played an important part in increasing the products value to appeal to targeted customers. In particular, the process involves maintaining competent sales forces, good technical assistance and adequate space for product display, while the customized retail environment visually communicates images of Ducati's racing heritage in conjunction with selling brand accessories and apparel. ...read more.

Conclusion

Levels of disposable income and income distribution Socio-Cultural Population growth rate and age profile Population education, social mobility and attitudes to these Demographics (women as potential motorcycle consumers) Lifestyle & Fashion choices and attitudes to these Emphasis on ecological issues and environmental awareness Technological Rate of technological change-emerging technologies Material science innovation Increased investing, activity and integrations of R & D Impact of Internet in sales and marketing activities Porter's Five Forces model can be used to good analytical effect alongside the PEST analysis tool. A PEST analysis of an overall Environmental Analysis evaluates the impact of regulatory, economic, social and technological factors in the motorcycle market during the last 30 years. Through analyzing these factors an assessment can be made of the competitive landscape and the profit potential of existing companies such as Ducati, BMW, Honda etc. The main changes that have occurred are rapid technology development, automating manufacture, an extending export market, globalizing administration, an establishment of marketing channels, an improvement of operating efficiency and particularly a strengthening of R&D. Furthermore, lifestyle trends, consumer behavior, demographics, ecological awareness, have contributed to a changing motorcycle industry environment. Considering the above trends, the motorcycle global market possible faces challenges such as more fuel-efficient or hybrid motorcycles, a possible shift in gasoline-powered to electrically powered vehicles and a new entry by manufacturers of electric vehicles. Ultimately, these possible changes could lead to a redefinition of the riding experience. ?? ?? ?? ?? 2 ...read more.

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