Strat 390 Cases

Amgen Core Topic

Diversification

Amgen Setting

2009, slowing growth, pressure on existing product, approaching patent expirations --> biosimilars

Amgen biosimilars definition

a pharmaceutical product with almost similar components --> technically difficult to produce

Amgen Four test

Attractiveness: patent expirations + demand for cheaper treatment --> opportunity for competition / regulations /pricing / customer adoption --> limit profit

Cost of entry: relevant capabilities but development, testing, manufacturing, and commercialization still require substantial resources --> can be used for innovative R&D

Better off: biosim could benefit from Amgen expertise, reg experience, comm relationships, reputation of quality

Ownership: helpful to coordinate complex knowledge but need to compare outcome of internal vs. licensing

Amgen Pros Entry

Reuse capabilities that are difficult to build

Scientific and manufacturing expertise could help with developing a reliable product + limiti competition

Amgen Cons Entry

excellent at biologics != competitive economics in biosim.

Amgen has focused on quality product --> expensive

pressure from comp --> different typa discipline

Spare manufacturing capacity argument

no sufficient for this case

Recommendation for Amgen

selective entry --> targeting products where Amgen's capabilities offer a credible advantage and managing new activity with clear communication and accountability

Delta case type

Backward / Upstream integration case

Central economic discussion in Detla

crude oil prices versus the refining margin

Delta summary

Focuses on the crack spread, the gap between the price of refined fuel and crude oil. This gap helps determine refining profitability, although the actual profit depends on operating costs and other products.

What if: crude and jet fuel prices rise by similar amount?

airline pays more for fuel, while refining margines may not improve substantially

What if: jet fuel price rise much more than crude

higher refinery earnings can partly offset the airline higher fuel bill

What if: fuel demand collapse

both airline and refinery can suffer --> ownership does eliminate risk

Delta Case Conclusion

The refinery provides a partial offset to refining-marging shocks - complete protection against expensive oil

Delta Case Pros integration

retains enarning from an upstream earning when refining margins rise

protect fuel supply in Northeast

Delta Cons Integration

Requirements for different capabilities ( failures, maintenance, environmental, capital, ...)

Others can benefit from not paying for the plant if there's an additional fuel supply.

Diversification is a weak argument here.

Delta Four Tests

Attractiveness: refining can earn strong rev when margins widen, but cyclical and capital extensive

Cost of entry: consider purch price and maintenance, cap investment, environmental obligations

Better off: identify incremental supply security or coordination benefits, alongside the partial offset from refinery earnings

Ownership: whether owning a refinery delivers more value than supply contracts. Financial hedging, other arrangements

Nvidia Case Summary

choosing which parts of the value chain to own while protecting the relationship that supports its advantage

Nvidia core competencies

chip design and software w customers includeing equipment manufacturers and cloud providers that turn its chips into systerms and computing services

Nvidia's value

Nvidia combines hardware, networking, software tools and CUDA --> developers don't want use different chips as it requires software changes --> competitors need to offer attractive overall solution

Nvidia risk with TSMC

Limited capacity can constrain Nvidia's sales.

TSMC's bargaining power can affect prices and access.

Production concentrated in Taiwan creates a risk of disruption.

Switching suppliers can involve performance and cost penalties.

Nvidia Pros backward integration

Greater authority over production investment and priorities

Potentially closer coord between design and munfacturing

Reduction in dependence on an outside supplier

Nvidia Cons backward integration

leading edge fab

TSMC has economies of scale

owning a fab adds fixed costs, execution risks and exposure to further downturn

Nvidia Cons forward

Conflict with its own customers:

Limited capacity can constrain Nvidia's sales.

TSMC's bargaining power can affect prices and access.

Production concentrated in Taiwan creates a risk of disruption.

Switching suppliers can involve performance and cost penalties.

NFL case

The NFL case asks how a successful domestic business can build lasting demand abroad when much of its advantage depends on local culture, participation, and loyalty

NFL Cultural Distance

NFL's unfamiliar rules, lengthy games, established competing sports, and limited attachment to teams.

Strategic implication: Develop understanding and emotional connections > advertising

NFL Administrative Distance

Different institutions, sporting organizations, and arrangements for hosting and developing the sport

Strategic implications: works with local broadcasters, schools, sporting bodies, and event partners

NFL Geographic Distance

Travel, time zones, player fatigue, and scheduling difficulties

Strategic implications: media expansion can scale more easily than moving many games or establishing

NFL Economic Distance

Markets differ in spending power, sponsor demand, media value, and development infrastructure

Strategic implication: Evaluate recurring commercial demand and entry costs

Main problems with NFL

American Bowl is pre-season and uses a backup player

The European league experiments created a more regular presence --> struggled financially

How does AAA help distinguish the responses available to the NFL

Adaptation: local lang commentary, explanations of rules, local story, community engagement

Aggregation: Share the core NFL content, brand, and selected regional or commercial capabilities

Arbitrage: exploit meaningful differences between locations

Kit Kat case summary

emphasized British heritage but didn't work out bc supermarket faced margin --> research and found students are a good target segment --> a conbini found that kitto-katsu = "surely win" so mother bought it for exam seasons + cherry blossom image + people write supportive message

Kitkat framework

Adaptation to differences: Nestlé connected KitKat to Japanese exam culture, the Kitto Katsu sound association, good-luck charms, and cherry blossoms. It adapted customer targeting, messaging, packaging, and engagement.

Aggregation: The Japanese strategy retained the recognizable KitKat brand and core chocolate-wafer product. Conceptually, shared brand assets and product capabilities provide a foundation across markets.

Pernod Ricard Case

grown through acquisitions and built large spiriti brands --> gave brand and country substantial autonomy --> as portfolio expands, deciding where to focus, who to focus, how to advertise become hard

use DStar (rec sales priority) and Matrix (improve ad allocation) tools --> difficult to get brands to implement

Pernod Ricard defensible

Centralize: Core technology, data governance, scarce analytical expertise, product ownership, and cross-market learning.

Keep locally informed: Customer relationships, execution, market-specific inputs, and justified adjustments to recommendations.

7S on Pernod Ricard

Strategy: improve growth and resource allocation through data-informed decisions

Structure: Define responsibilities between the central digital team, brand comp, and market comp

Systems: Integrate tools into budgeting, planning, data collection, and performance review

Skills: Develop analytical understanding and ability to interpret recommendations

Staff: Recruit technical specialists + connect with commercial employees

Style: Leaders must demonstrate use, explain decisions, and encourage evidence-based challenges.

Shared values: combine brand creativity and local entrepreneurship with analytical discipline.

Microsoft case summary

Microsoft proposed acquiring Activision Blizzard, bringing together Microsoft's Xbox, Game Pass, and cloud capabilities with major franchises such as Call of Duty, World of Warcraft, and Candy Crush.

Microsoft wanted to strengthen its position across console, PC, and mobile gaming. Activision also faced workplace misconduct allegations and leadership controversy, creating both a potential opportunity for improvement and a serious acquisition risk.

Microsoft + Activision benefit

Stronger game pass offering

Content plus distribution

Entry into mobile gaming

Future game development

Microsoft + Activision main challenge

Why ownership? Could Microsoft obtain the content through licensing, or did ownership provide valuable long-term control and coordination?

At what price? Even substantial synergies may fail to benefit Microsoft shareholders if the acquisition premium and associated costs absorb them.

Uber Cornershop summary

Uber acquired a controlling stake in Cornershop, a grocery delivery platform connecting customers, supermarkets, and personal shoppers. At the case's early-2021 decision point, the companies were ready to combine.

Uber already connected riders with drivers and restaurant customers with delivery providers. Cornershop added grocery expertise, retailer relationships, trained shoppers, and experience in Latin American markets.

Uber promised substantial autonomy: Cornershop would retain its brand and existing leadership, with Uber controlling the board. The case challenges whether that arrangement would allow enough coordination to justify the acquisition.

Uber framework

Cross-selling: Uber users must discover and actually purchase Cornershop's grocery services.

Faster geographic expansion: Uber's resources and market presence must connect with Cornershop's grocery expertise.

Shared technology and support: The companies must coordinate useful capabilities such as payments and customer acquisition.

Better delivery utilization: Work must be compatible across services; a grocery shopper's role differs from simply transporting a passenger or meal.