executive briefing for Bergerac Systems
In this case, you need to answer the questions in the preparation part and doing the financial Analysis.
• Case Reader: “Bergerac Systems: The Challenge of Backward Integration”, David Garvin and Sunru Young,
• Preparation: Ian Wyckoff, CEO, has asked for your assistance. What are the bases on which Bergerac has built its competitive advantage and is relying to sustain this advantage? How well does the configuration of its current value chain match the drivers in the industry? Which of the two alternatives being proposed for the company do you recommend? How does this recommendation address the strategic and operational challenges facing the company? What qualitative and quantitative evidence supports your recommendation? Are additional actions necessary as well? What are the implementation priorities and next steps?
• Financial Analysis for your client company
• Key Class Take-Aways
–Competitive advantage arises out of aligning internal resources across the value chain.
——Success arises out of a set of coordinated actions across a company’s value chain
——A value chain focus supports companies when they need to reposition in the face of competitive or environmental shifts.
–Companies need to consider carefully the costs and the sustainability of the position.
–Financial policy and business strategy must be consistent with each other
–Capital requirements and production decisions are often related
• What are the bases on which Bergerac has built its competitive advantage and is relying to sustain this advantage?
• How well does the configuration of Bergerac’s current value chain match the drivers in the industry?
• How does your qualitative and quantitative analysis of the alternatives being proposed support your recommendation?
• What are the implementation priorities and next steps?
• What is causing Bergerac’s current difficulties? Which of these should management be most be concerned with?
• What lessons can we learn from the current Bergerac value chain?
• Where does it have resources to leverage or weaknesses to address?
• What does a financial analysis tell us about the company’s current condition? Is Bergerac in a position to expand?
• What is your evaluation of McCarthy’s analysis? Which is the more attractive growth option for the company? What