Cervus Strategic Management

04-75-498-03

Strategic Management

Case Analysis: Cervus

Submitted to: Prof. Huanglin Wang

Submitted by:

Li, Luyao 104008698

Lv, Liyan 104113134

Durocher, David George 103539911

Marcangelo, Damiano Francesco 103641195

Date Submitted: 3/15/2015

Contents

Key issues        

Internal Analysis        

External Analysis        

Financial Analysis        

Alternatives        

Decision Criteria        

Recommendation        

Implementation        

Short-term        

Long-term Action Plan        

Sequence of Actions (approximately)        

Control mechanism        

Contingency Plan        

Appendix        

 Key issues

Cervus equipment has achieved a stable growth in term of revenues over past nine years, and the company’s current goal  is to obtain 2.5 million by 2020, which is the three times of the current rate. So the key issues for the Cervus are whether the CEO of the Cervus can find out an effective and feasible strategy to help the company achieve this goal as well as how can they do to achieved this goal that make sure the company have a reasonable resources allocation while maintaining their strong financial performance and brand image.

Internal Analysis

Yes= Does possess that resource quality     No= Does NOT possess that resource quality.                  

• Organizational Culture: Cervus has a high level of empowerment giving to store managers and employee’s to help in the decision making progress on the go. This gives high moral and trust to its employees which act as a motivational factor that trickles all the way down Cervus staff list. A company’s organizational culture has true value behind it as well as rarity. It is difficult to find companies that have these values which make it rare and it holds value to the company. The culture is imitable and is substitutable so it can be done by others. The company is using it and exploiting it to its full capability.

• High End Brand Offerings:  Cervus only sells top quality products and equipment which makes them a premium supplier of equipment. The value behind their product offering is very high. The rarity is there as well because many companies have difficulties only selling high end products and are able to maintain a competitive advantage. This is imitable by other companies as well as non-substitutable. The company does exploit their product offering as well.

• Relationship with OEM Manufactures: Cervus has built quality relationships and partnerships with OEM (original equipment manufacturer). This one of their top resources that they hold as a company. The value and rarity they built with the OEM companies has value and rarity behind it. It is not imitable; it can be done but takes a lot of effort and resources to build these kinds of relationships. You can non substitute this resource for anything else because OEM is the only companies you would ideally want to build relationships with. They are indeed exploiting this resource to its full capabilities.

• Integrity/ Goodwill: Cervus is not only operating to build a profitable business but they do a lot to help other business grow and give back to the community. They go above a beyond a traditional company and do what every business should do. Over the year they have a build a very good reputation with surrounding communities. They have value and rarity in doing so, not many companies have this. It is imitable by other companies but difficult to achieve. It is also non-substitutable and exploitable.

• In conclusion of the internal analysis for Cervus, they have a very good understanding of themselves internally. They possess some key resources that they are capitalizing on that will give them the competitive advantage. Cervus is very well positioned internally and has put them in a good position.

External Analysis

After analyzing the company’s internal factors we will now look at the company from an external perspective. The method we have chosen to do this is a PESTEL analysis.