MNG 3702 ASSIGNMENT 1(COMPLETE ANSWERS) SEMESTER 2 2024-
DUE 25TH JULY 2024.
Question 1
“The aim of strategic management is to ensure that an organisation achieves a competitive
advantage and sustains its competitive advantage over competitors.” Apply the process
perspective of strategic management process to the Michelin Company, focusing on the
‘History of the Michelin Guide’. In your answer, you need to explain each stage in the
process perspective of strategic management and apply it to Michelin and the development of
the Michelin Guide as an effort of the company to sustain its competitive advantage.
ANSWER
The strategic management process involves several stages that help an organization achieve
and sustain a competitive advantage. When applied to the Michelin Company and its
development of the Michelin Guide, we can analyze this process through the lens of strategic
management stages: analysis, formulation, and implementation.
1. Analysis
-Internal Analysis: Assessing the company's strengths, weaknesses, resources, and
capabilities.
- External Analysis: Examining the industry environment, including competitors,
market trends, and external opportunities and threats (PESTEL, SWOT, Porter's Five
Forces).
Application to Michelin and the Michelin Guide:
- Internal Analysis: Michelin, primarily known for its tire manufacturing, identified its
strengths in brand reputation, innovation, and a widespread network. Recognizing the
need to enhance customer loyalty and promote long-distance travel (which in turn
would increase tire sales), Michelin utilized its internal resources to create the
Michelin Guide.
- External Analysis: At the time of the Michelin Guide's inception in 1900, there was
a growing interest in automobiles and travel. By understanding the market trends and
consumer needs, Michelin identified an opportunity to influence travellers’ choices
and boost their tire business indirectly by providing a valuable service to drivers, thus
creating a symbiotic relationship between travel and tire usage.
2. Formulation
- Strategy Development: Creating strategies based on the analysis phase to achieve a
competitive advantage. This involves setting objectives, identifying strategic options,
and choosing the best course of action.
- Strategic Planning: Developing detailed plans to execute the chosen strategies,
including resource allocation, timelines, and performance metrics.
Application to Michelin and the Michelin Guide:
- Strategy Development: Michelin decided to create a travel guide that would not only
assist drivers but also encourage them to travel more, thereby wearing out their tires
and needing replacements more frequently. This innovative strategy aimed to enhance
, MNG 3702 ASSIGNMENT 1(COMPLETE ANSWERS) SEMESTER 2 2024-
DUE 25TH JULY 2024.
brand loyalty and position Michelin as more than just a tire manufacturer but as an
integral part of the travel experience.
- Strategic Planning: The first Michelin Guide was distributed for free, providing
practical information on car maintenance, maps, and places to eat and stay. This
comprehensive approach ensured the guide was highly valued by drivers, fostering
brand loyalty. Over time, the guide evolved to focus on fine dining and tourism,
aligning with the increasing sophistication of travellers and further cementing
Michelin's premium brand image.
3. Implementation.
- Execution of Strategy: Putting the strategic plan into action by deploying resources,
managing operations, and ensuring all parts of the organization are aligned with the strategic
objectives.
- Monitoring and Control: Continuously evaluating performance against objectives, making
necessary adjustments, and ensuring the strategy is effectively achieving the desired
outcomes.
Application to Michelin and the Michelin Guide:
- Execution of Strategy: Michelin effectively executed its strategy by initially giving the
guides away for free to build a user base and later introducing a paid version as its value was
recognized. The company invested in creating high-quality content and employed inspectors
to anonymously review restaurants and hotels, ensuring the guide's credibility and prestige.
- Monitoring and Control: Michelin continuously adapted the guide based on feedback and
changing market conditions. They expanded the guide's coverage to new regions and
countries, introduced different editions, and maintained rigorous standards for inclusion. This
adaptability and commitment to quality helped sustain the guide's reputation and relevance,
contributing to Michelin's ongoing competitive advantage.
Conclusion
The strategic management process, when applied to the Michelin Company and the
development of the Michelin Guide, highlights how a well-analyzed, formulated, and
implemented strategy can create and sustain competitive advantage. Michelin's innovative
approach to marketing through the guide not only differentiated it from competitors but also
reinforced its brand as a premium and trusted name in both the automotive and hospitality
industries. This strategic initiative has been crucial in maintaining Michelin's competitive
edge over the years.
Question 2 “Success in strategy formation and implementation is necessary for an
organisation to do well and sustain its competitive advantage”. ‘Over the years, Michelin's
worldwide revenue increased, despite frequent fluctuations in the market. The lowest point
for the company occurred in 2009’. During 2009, Michelin needed to make various changes.
Draw a strategic map by specifying strategic objectives for each element of the Balanced
DUE 25TH JULY 2024.
Question 1
“The aim of strategic management is to ensure that an organisation achieves a competitive
advantage and sustains its competitive advantage over competitors.” Apply the process
perspective of strategic management process to the Michelin Company, focusing on the
‘History of the Michelin Guide’. In your answer, you need to explain each stage in the
process perspective of strategic management and apply it to Michelin and the development of
the Michelin Guide as an effort of the company to sustain its competitive advantage.
ANSWER
The strategic management process involves several stages that help an organization achieve
and sustain a competitive advantage. When applied to the Michelin Company and its
development of the Michelin Guide, we can analyze this process through the lens of strategic
management stages: analysis, formulation, and implementation.
1. Analysis
-Internal Analysis: Assessing the company's strengths, weaknesses, resources, and
capabilities.
- External Analysis: Examining the industry environment, including competitors,
market trends, and external opportunities and threats (PESTEL, SWOT, Porter's Five
Forces).
Application to Michelin and the Michelin Guide:
- Internal Analysis: Michelin, primarily known for its tire manufacturing, identified its
strengths in brand reputation, innovation, and a widespread network. Recognizing the
need to enhance customer loyalty and promote long-distance travel (which in turn
would increase tire sales), Michelin utilized its internal resources to create the
Michelin Guide.
- External Analysis: At the time of the Michelin Guide's inception in 1900, there was
a growing interest in automobiles and travel. By understanding the market trends and
consumer needs, Michelin identified an opportunity to influence travellers’ choices
and boost their tire business indirectly by providing a valuable service to drivers, thus
creating a symbiotic relationship between travel and tire usage.
2. Formulation
- Strategy Development: Creating strategies based on the analysis phase to achieve a
competitive advantage. This involves setting objectives, identifying strategic options,
and choosing the best course of action.
- Strategic Planning: Developing detailed plans to execute the chosen strategies,
including resource allocation, timelines, and performance metrics.
Application to Michelin and the Michelin Guide:
- Strategy Development: Michelin decided to create a travel guide that would not only
assist drivers but also encourage them to travel more, thereby wearing out their tires
and needing replacements more frequently. This innovative strategy aimed to enhance
, MNG 3702 ASSIGNMENT 1(COMPLETE ANSWERS) SEMESTER 2 2024-
DUE 25TH JULY 2024.
brand loyalty and position Michelin as more than just a tire manufacturer but as an
integral part of the travel experience.
- Strategic Planning: The first Michelin Guide was distributed for free, providing
practical information on car maintenance, maps, and places to eat and stay. This
comprehensive approach ensured the guide was highly valued by drivers, fostering
brand loyalty. Over time, the guide evolved to focus on fine dining and tourism,
aligning with the increasing sophistication of travellers and further cementing
Michelin's premium brand image.
3. Implementation.
- Execution of Strategy: Putting the strategic plan into action by deploying resources,
managing operations, and ensuring all parts of the organization are aligned with the strategic
objectives.
- Monitoring and Control: Continuously evaluating performance against objectives, making
necessary adjustments, and ensuring the strategy is effectively achieving the desired
outcomes.
Application to Michelin and the Michelin Guide:
- Execution of Strategy: Michelin effectively executed its strategy by initially giving the
guides away for free to build a user base and later introducing a paid version as its value was
recognized. The company invested in creating high-quality content and employed inspectors
to anonymously review restaurants and hotels, ensuring the guide's credibility and prestige.
- Monitoring and Control: Michelin continuously adapted the guide based on feedback and
changing market conditions. They expanded the guide's coverage to new regions and
countries, introduced different editions, and maintained rigorous standards for inclusion. This
adaptability and commitment to quality helped sustain the guide's reputation and relevance,
contributing to Michelin's ongoing competitive advantage.
Conclusion
The strategic management process, when applied to the Michelin Company and the
development of the Michelin Guide, highlights how a well-analyzed, formulated, and
implemented strategy can create and sustain competitive advantage. Michelin's innovative
approach to marketing through the guide not only differentiated it from competitors but also
reinforced its brand as a premium and trusted name in both the automotive and hospitality
industries. This strategic initiative has been crucial in maintaining Michelin's competitive
edge over the years.
Question 2 “Success in strategy formation and implementation is necessary for an
organisation to do well and sustain its competitive advantage”. ‘Over the years, Michelin's
worldwide revenue increased, despite frequent fluctuations in the market. The lowest point
for the company occurred in 2009’. During 2009, Michelin needed to make various changes.
Draw a strategic map by specifying strategic objectives for each element of the Balanced
