Appendix 2 vs. Good to Great and Blue Ocean Strategy

1. Appendix 2 vs. Good to Greatand Blue Ocean Strategy AMANDA LONG BRIAN BYRNE ASHLEY GONZENBACH DIANA PERKINS

2. Big Loud Motorcycles • “Build the world’s best motorcycle product so that customers can experience the joys of motorcycling.” • Dominants market 42.1 percent • Push into international markets not as effective as planned • Defender strategy

3. External Analysis • Industry/Competition – Five Forces • Rivalry Opportunities & Threats • Strong industry sales growth • High exit barriers • Entrants Opportunities & Threats • Government regulation • No threats

4. External Analysis • Bargaining Power of Buyer • Differentiated and unique products • Kraft is opposite • Buyers have full information • Bargaining Power of Supplier • Suppliers lack industry skills • Kraft is opposite • Suppliers’ product important input • Substitute Products Opportunities & Threats • No Opportunities • Several substitutes

5. General External Analysis • Economic Opportunities &Threats • Personal disposable income is increasing • Unemployment levels are rising • Demographic Opportunities & Threats • Population is diverse • Cost of higher education • Sociocultural Opportunities & Threats • More “gold-collar” employees • Increasing “green” issue popularity • Image of motorcycles is not positive

6. General External Analysis • Political-Legal Opportunities & Threats • State helmet laws • Technological Opportunities • Increased use of robotics • Online purchasing • No threats

7. Internal Analysis • Three approaches to Internal Analysis • Value Chain Analysis • Examines the organization’s functional activities and how well they create customer value • Internal Audit • Used to examine and asses all internal areas of an organization. • Capabilities Assessment Profile • Develops a profile on the organization’s capabilities.

8. Internal Analysis Internal Audit - describes the strengths and weaknesses found in the organization’s internal functional areas. • Strategic management • Organizational culture • Organizational structure • Production-operations • Marketing • Human resources • R&D • Information systems

9. Internal Analysis Good To Great • Internal Audit • Emphasizes Level 5 leadership as a key success factor • Emphasizes hiring the right people first before deciding where to go • Companies credited organizational culture and structure as main success factor Blue Ocean Strategy • Value Chain Analysis and Capabilities assessment profile • The Four Steps of Visualizing Strategy

10. Financial Analysis Four parts • Ratio analysis and comparison to industry and company trends • Graphs outlining the company’s sales, profits and other financial measures • Listing of company’s financial strengths and weaknesses • A statement of the company’s overall financial condition and how you came to that conclusion • Good To Great companies based on cumulative stock returns compared to the general stock market • Blue Ocean Strategies impacted profits more than Red Oceans

11. Strategic Issues • What is the Issue? • BLM’s target market is too narrow. • Why is this an Issue? • There are many other markets that they could be successful in, without dramatic changes.

12. Strategic Alternatives • What? • Offer bikes that are made to fit women. • How? • First, find out what women want. • Analyze the information and select the idea that is going to be used • Top management puts together a plan to implement the idea and get it to market. • Who? • Which area is going to focus on each piece of this project? • When? • Total time they expect this process to take: 18 months • Where? • Which market and region will this happen: Sold in the US and the plan will show either Tennessee or Arkansas for production.

13. Good to Great The Flywheel and Doom Loop: Build up the baby steps and momentum with their success to achieve what may look like a dramatic success for the company. Some companies move to fast or change direction before that have the chance to build any momentum and those companies don’t go from good to great.

14. Recommendations • Pursue Alternative #3 • Scooters have proven to be popular • Has potential to attract women and older demographics • Could be beneficial to BLM and motor scooter manufacturer • Reject Alternatives #1 and #2 • Reject Alternatives #1 and #2 • BLM would have complete control and responsibility of product from design to sale • Even by developing a targeted marketing campaign current products have drawbacks for women

15. Apply What We Know • Focus on the big picture not just the numbers (GTG) • They have had three years of increased revenues and profits • They want more, Goal to push into internal markets and more diverse customer • Looking ahead outside instant gratifications • Reach beyond existing demand (GTG) • They have been and are successful in what they are already doing • Looking for new products, new changes, and new customers

16. Implementation • Changes in Organizational Structure • When motor scooter company is acquired • New employees now part of BLM team • Need additional marketing staff to push female market • Changes in Organizational Culture • Not likely to change • Challenge will be making sure new employees are welcomed • BLM values and philosophies are embraced • Funding • Needed for acquisition • Two sources- long term debt and cash reserves

17. Apply What We Know • Build Execution into Strategy (GTG) • What we want to do • How we can do it • What is important to BLW • Built to Last (BOS) • Taking Structure into consideration • Taking Culture into Consideration • Carefully building to pursue goals and build a better company

18. Three Take Aways • When a company is already doing well it is still important to find ways to make it better • Internal and External Analysis are imperative when making decisions • Even if you don’t apply all the concepts from Blue Ocean Strategy and Good to Great understanding them will always help you better make decisions for your company