Strategic Management Exam

STRATEGIC MANAGEMENT

Exam 2

Name _______________________________________ Student No. _______________________

Read the articles:

“Molson Coors Profit Flat; Sales Rose on Acquisition”

“Molson Coors CEO Doesn't Rule Out Buying MillerCoors if Available”

1. CHAPTER 4: MANAGING FIRM RESOURCES

a. What are the four characteristic of resources that provide sustainable competitive advantage (1.6 points – each characteristic 0.4 point)

b. Through mergers and acquisitions Molson Coors has increased its size, and achieved better “Economies of Scale”.

i. What are economies of scale (0.5 point)

ii. Give three reasons why economies of scale are an important strategic resource (2.1 points – each reason 0.7 point)

c. Do a SWOT analysis of Molson Coors (4 points – each element 1 point).

2. CHAPTER 5 – SELECTING BUSINESS LEVELS STRATEGIES

Molson Coors offers two broad types of beers.

· Traditional beers like Molson Canadian, Coors Light and Carling

· Craft and imported beers like Blue Moon and Leinenkugel

Each one of these divisions has a different business-level strategy.

a. What is the business-level model of the “traditional beers” division? List and explain at least 3 integrated tactics to succeed using this business level strategy. (2.4 points. Each reason 0.8 point)

b. What is the business-level model of the “Craft and imported beers” division? List and explain 3 potential pitfalls of this business-level strategy. (2.4 points. Each reason 0.8 point)

c. Combining different business level strategies creates many challenges with integrating different cultures, values, and activities. Why would a company like MillerCoors decide to combine 2 different business-level strategies? List and explain at least 2 reasons. (2 points – each reason 1 point)

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