Five Crucial Course Lessons

Essay Title “Five Crucial Course Lessons”

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Hi Writer,

I gave 5 topic Class notes from my lessons What I learn in Class within 15 week .

Professor gave me Essay title that is “Five Crucial Course Lessons”

So, I choose 5 titles. Please see following topic and please use the fact from my note on what I learn in class. Try to include the writing for more about Strategy, marketing history, situation , from the notes that I give)

1. Battlefield to Boardroom

2. Carvana & Fintech

3. Leading Change

4. Starbuck Case Study

5. McDonald’s Long Russian Goodbye

I. Battlefield to Boardroom Objective: Through the course of existence, humans have exemplified the ability to maneuver through an ever-changing environment. Each transition is based upon the understanding that to survive, you must adapt by recounting the past and looking towards the future. We will use Steve Jobs' ideology combining business, humanities, and science to incorporate history and sciences in the business world. Humanities: Shakespeare: “All the worlds a stage,...the men and women merely players” Alexander the Great: “Strategos”- what a general does. 3 components of success (Organization, Weaponry, Motivation) Herman Cortez: “Burn the ships” - Sense of Urgency Blitzkrieg: business war, rapid response George Santayana: “Those who forget history cannot learn from it.” Machiavelli: “There is nothing more dangerous, nor difficult, nor doubtful of success than to change the order of things” Heraclitus: “The only constant is change” -500 BC Science: “It is not the strongest, nor the most intelligent, but the most adaptability that survives.” -Charles Darwin Sustainability/Biomass: Emission reduction- Biomass Ex.=Wood > extreme heat > steam > spins turbine > electricity > power grid > consumer use. Fintech Applications: AI, algorithms, (user) data, user apps Geography Russia-Ukraine: Kyiv, Kherson, Moscow, St. Petersburg, Port of Odessa, Black Sea, Bosphorus Strait, Sea of Marmara, Dardanelles Strait, Aegean Sea, (wheat cut-off) Business: A-Players: (Adaptability, Commitment, Hunger to Learn, Intelligence, Self- Starter) War

1. James Stockdale(paradox): Vietnam war hero. Jim Collins: First ask who, not what

2. Winston Churchill: “Would’ve wrote a shorter story, but didn’t have enough time”

Earnest Garcia III (Carvana CEO): transformed U.S. used car market using fintech Ken Lay + Jeff Skilling (Enron CEO’s)- executed fraudulent strategy that led to bankruptcy/scandal

Carmine Di Sibio (EY CEO): guided the strategic operation of splitting EY into two firms Bernard Looney (BP CEO): charged corporate transition into sustainable energy by acquisition of Archaea Chris Kempczinski (CEO) Ian Borden (CFO of INTL Ops) Kevin Ozan (VP of strategic Initiatives) McDonald’s: formed war counsel to strategically pull all operations out of Russia Conclusion: The integration of applied humanities and sciences in the business setting allowed us to comprehensively understand strategic management. The ability to adapt to change is unquestionably rooted on Shakespeare's perspective that “All the worlds a stage, And all the men and women merely players.

II.Carvana and Fintech

Objective: Carvana is one of the leading US automotive retail and e-commerce companies. The Company has a daunting internal and external situation. Although Carvana is highly skilled at new ideas and penetrating new markets strategies, the firm faces up and down financing situations. -Three consulting companies: Boston Consulting Group, Mackenzie, Bain Company -Situational Analysis: Answers the question “Where are we?”

· -  Business Model: How you make money

· -  Monetize: Make revenue

· -  Buy & sell used car, use new technology, borrow from big lenders, Fin Tech used to

create finance contracts (LOANS)

· -  How money is mode at a higher rate

Their target were people who had no choice but to take out a loan Target lower

income, middle income, low credit Not able to pay vehicle cash

· -  Saudi Arabia Wealth Funds, bonds, credit unions, banks

· -  Carvana borrows at a low rate to sell cars to customers at a higher rate

· -  Their strategy is failing because they are defaulting on their loans

· -  Stood out, they delivered vehicles to customers

· -  Carvana strategy is similar to 2008 recession: rising interest rates and inflation

· -  Has fallen from nearly $377 per share to as little as $6.50 per share 98% decline

· -  SWOT: Situation Analyst (internal & external)

· -  Strength – Current stock price $34

· -  Weakness – Debt to equity ratio + 14.72 June 30

Exxon debt to equity ratiois0.3 Charles Darwin quote: “It is not the strongest, nor the most intelligent, but the most adaptability that survives.” George Santayana: “Those who forget history cannot learn from it.”

· -  Strategic Op (Operation): “

· -  Strategy 1: “If you build it, they will come.” Key Players:

· -  Ernest Garcia III (son) an American Businessman and the CEO and co-founder of Carvana

· -  Ernest Garcia II (father) an American Billionaire Businessman, major shareholder of Carvana. In 1990 pled guilty to a felony band fraud charge

Conclusion: Carvana's sales through the third quarter of this year were up 4% over 2021 but Shares of Carvana dropped as concerns about the retailer of used cars approaching bankruptcy grew. The trading price of shares dropped by more than 35% to $4.31. The stock fell when analysts at Wedbush Securities downgraded it to poor and dropped their price objective for the stock to $1 per share, citing an increase in bankruptcy risk.

III.Leading Change (John Kotter)

Objective: Leading change is like strategic development, which is any transformation that implies a shift in the way individuals perform their jobs. These activities include planning, creating, executing, and internalizing tools, procedures, routines, processes, and technological systems.

· -  Machiavelli: "There is nothing more dangerous, nor difficult, nor doubtful of success than to change the order of things".

· -  Charles Darwin (22-year-old man): NATURALIST: a person who studies live species and how they live.

· -  EVOLUTION: How wildlife differences from one life to another, migrated from one location to another issue with human and animal evolution "SURVIVAL OF THE FITTEST"

· -  "IT IS NOT THE STRONGEST, OR THE MOST INTELLIGENT. ITS THE ONE THATMOST ADAPTABLE TO CHANGE."

· -  “THE ONLY CONSTANT IS CHANGE.” -Heraclitus (500 BC)

· -  “THE MORE THINGS CHANGE THE MORE THEY REMAIN THE SAME.” - Jean- Baptiste Karr

· -  Charles Darwin: When it comes to change it is about survival * Survival of the fittest *Most adaptable that survive

· -  Companies that changed their name: easiest for change Studies show the shorter

· -  The company name the betterè Facebook -> Meta Backrub -> Google -> Alphabet | Starbucks Coffee ->Starbucks

· -  Company Relocated (Move Location): New geographic environment Tesla -> Texas

· -  Why do companies move with their competitors?

· -  To get work/ finances -> Hollywood motion picture (Lazo) - The Weather |

· -  New York -> where the talent, recruit, money | Restaurants Rows -> great Chefs/

Texas major companies are moving there

· -  1492 - Columbus goes West | Kortez-1510 ships (20) 15 hundred Greek men, Golf of Mexico, Persian, Romans, very little pulled what the Spaniards did

· -  Steve Jobs - founder of Apple -> mobile devices & internet -> mobile meet project Fire to show sense of urgency. Abe Lincoln Quote: “If we first knew where we are and whether we are going we can better judge what to do and how to do it.”

· -  When it comes to a situational analysis a company must understand their strength, weakness, opportunities, and threats (SWOT). How to lead change: "People don't change, so change the people." Conclusion: All the company always change to the fortune 500 list because companies fail to adapt. Change is needed because of the rapidly changing environment, new technologies, a global economy, changing consumer preferences, fierce domestic and international competition, and new leadership opportunities. So, all creating is challenges and opportunities for leaders.

IV. Starbucks Case Study

Objective: Starbucks is an American own company founded in 1971in Seattle, WA. It primarily operates and competes in the retail coffee and snacks store industry. Baristas are feeling overwhelmed due to lack of training, underpaid, and unwillingness to adapt to the pandemic. Starbucks has multiple competitors that are willing to adapt.

· -  CEO: Howard Schultz(current) Laxman Narasimhan (Designated Apr 1, 23)

· -  Employee #s: In 2020 worldwide 383,000| in 2020 138,000| 60% drop

· -  Financials: Revenue. Income. Fortune 500 rank. Stock Price: 31.98 billion, 4.7 billion, 120 ranking 88.96(Oct 18 18:10)

· -  Headquarters Location: SoDO Neighborhood Settle, WA (formerly the SODO Center)

· -  Howard Schultz (Five Facts):

· 1.He approached 242 investors, 217 rejected his idea| 2.Acquired Starbucks when they had 6 stores, began working at Starbucks in 1982| 3.Both Chairman and CEO left the CEO, left the CEO position twice (wanted to run for president) | 4.Married to Sheri Kersch Schultz (1982) | 5.Leadership Style transformational leader he developed a vision made it into a reality partnership with Starbucks’ other employees

· -  Store #s: Worldwide: 34,317 (Jan 2, 22) | US 15,703 (Oct 10, 22) | CA: 3,033 (19%)

· -  “A Third Place”: A place between home and work, to meet with friends and colleagues. Unionization: Threat to Starbucks, National Labor Relations Board 224 accepted, 42 denied

· -  Brazilian Rain Forest: Deforest station, slave labor, labor rights violation

· -  China Operations: 6000 stores (Sept 27) Starbucks University | Next era of accelerated growth, the company expects to operate 9000 stores across 300 cities in China by 2025, opening one new store nearly every 9 hours in China for the next three years

· -  Competitors (Name 5): Dunkin Donuts, McDonald’s (McCafe), Peet’s Coffee, Folgers, Keurig

· -  Crime: Closing 16 stores due to drug, vandalism, property theft and rising crime used by customers and outsiders in the US.

· -  Globalization: Operate in 59 countries globally, not only spread its product but also its culture as an American Company.

· -  Russian ops: May 22 stopped working with Russians, suspending operations it is only 1% of their revenue, Starbucks offered Russian employees 6 months of their pay

Conclusion: Inflation has increased 202 Starbucks expense from .30$-.70$. Keurig using k- cups which is cheaper than heading to Starbucks, had lost partnership with Starbucks to Nestle. They are trying to compensate their employees raising their minimum wage plus tips.

McDonald’s Long Russian Goodbye (Fortune) Objective: Russia has started a war with Ukraine that has caused deaths, missing

people, buildings destroyed, damage property, etc. This misfortune has driven multiple fortune 500 companies out of the country of Russia, it occupies one-tenth of all the land on Earth. Shakespeare said, “All the world’s a stage and all the men and women are merely players.” - Stock market price for McDonalds Dec 31st of 2021 closing $272 per share 152 Fortune 500 (2021) Number of stores 40,031 restaurants worldwide 15 domestic | 25 international 95% franchise| 853 stores | 7% revenue from Russia “ Do svidaniya!” means Goodbye. Similar “Until we meet again” Feb 23 Invasion (Ukraine) | Feb 24 McD CEO Kempinski – “Major Player” forms War Counsel McD promotes 3 executives to new roles: Kevin Ozan Lead Strategic Initiatives| Ian Borden CFO| Marion Gross Global Chief Supply Chain Officer Soviet Union Fall: 1991 with New Leader Gorbachev Gorbachev: Perestroika and Glasnost Capital of Ukraine is Kyiv Feb 25 EXIT: Delta, Apple, BP, Shell, IKEA, Shell, VW (FORTUNE 500 companies) Mar 08 McD Pauses Ops: Shuts doors at all Russian operations | Mar 10 pays employees as their sign of loyalty 62,000 employees Blitzkrieg: an intense military campaign intended to bring about a swift victory (Business War) First day McD opened in Moscow Jan 31,1990 with 30,000 customers Apr 04 USA order prohibit Russian investment| Apr 20 Goldman, Disney, Chase, Sony, EXIT RUSSIA Russian is the second or third most powerful country in the world fortune 500 companies are leaving the country McD founded Apr 15, 1995| McD brothers own McD – Fast food began selling price of $.50 piece of hamburger JIM COLLINS: “first ask who not what” Port of Odessa off Ukraine: Black Sea, Dardanelles, Mediterranean Sea Mankind VS Nature: wars that are created and natural disaster that arise Steve Jobs: “Combine business, science, and humanity.” Key Players of McD came up with a strategic plan to keep it efficient Today stock price 2022 approx. 270$

Conclusion: McDonald’s revenue from Russia makes up 7%. The ending stock price of McD 2021 was approx. 270$ when looking at it right now 2022 it is approx. 270$. Every fortune 500 has top leaders. Shown result in the stock price staying the same.