Chapter 4 In-Class Assignment

Name:_________________________________ Date:_______________

Chapter 4 In-Class Assignment

1. Cinnabon, famous for its cinnamon rolls, is an American chain commonly located in high traffic areas, such as airports and malls. They operate more than 1,200 bakeries in more than 48 countries. How many of the four tests of the competitive power of a resource does the store network pass? Using your general knowledge of this industry and doing some simple research online, perform a SWOT analysis. Explain your answers.

Notes to assist with answering questions

Identify the following items in their analysis of competitive power:

1. Is the resource or capability competitively valuable – Is it directly relevant to the company’s strategy?

2. Is the resource or capability rare – Is it something rivals lack?

3. Is the resource or capability hard to copy – Is it built over time or unique?

4. Can the resource or capability be trumped by different types of resources or capabilities. – Are good substitutes available for the resource or capability?

SWOT analysis:

· Strengths:

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· Weaknesses:

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· Opportunities:

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· Threats:

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2. Review the information in Illustration Capsule 4.1 concerning Boll & Branch’s average costs of producing and selling a king-size sheet set, and compare this with the representative value chain depicted in Figure 4.3.

Then answer the following questions:

· Which of the company’s costs correspond to the primary value chain activities depicted in Figure 4.3?

· Which of the company’s costs correspond to the support activities described in Figure 4.3?

· What value chain activities might be important in securing or maintaining Boll & Branch’s competitive advantage? Explain your answer.

· ACTIVITY

Ethics

3. Do ethical practices affect a firm’s ability to develop brand as a source of competitive advantage? If so, how does this happen? Can you think of brands that are a source of competitive advantage at least in part because of the firm’s ethical practices?

Response:

OVER