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UNIVERSIDADE TCNICA DE LISBOA

INSTITUTO SUPERIOR TCNICO TAGUSPARK


ACADEMIC YEAR 2013/2014, 1ST SEMESTER

GESTO ESTRATGICA E COMERCIAL


1ST PRACTICAL CASE ROBIN HOOD

Responsible for Discipline: Teresa de Lemos

Masters in Electronics Engineering: Bruno Guilherme, 66004 Mariana Daniel, 66020 Joni Jormanainen, N77427
March 18, 2013

Gesto Estratgica e Comercial 1st Practical Case Robin Hood

Index
1. 2. 3. 4. 4.1 4.2 5. 5.1 6. 6.1 6.2 7. 8. 9. EXECUTIVE SUMMARY .......................................................................................................... 3 INTRODUCTION ...................................................................................................................... 4 DEFINITION OF MARKET / MARKET SEGMENT ...................................................................... 5 ANALYSIS OF THE EXTERNAL ENVIRONMENT .................................................................... 10 PESTL ............................................................................................................................. 10 PORTER'S 5 FORCES ......................................................................................................... 13 INTERNAL ENVIRONMENT ANALYSIS.................................................................................. 15 VALUE CHAIN.................................................................................................................. 15 ANALYSIS OF THE COMPETITIVE POSITION OF COMPANY / ORGANIZATION ...................... 17 FCS .................................................................................................................................. 17 BENCHMARKING.............................................................................................................. 17 ANALYSIS SWOT ................................................................................................................ 18 CONCLUSIONS AND RECOMMENDATIONS ........................................................................... 19 QUESTIONS ASSIGNEMENT .................................................................................................. 21

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

1. EXECUTIVE SUMMARY
The mission of an organization basically consists of answering three short questions: "What we are, what we do and why we do it?". Analyzing this case, one comes to the conclusion that if Robin Hood's mission is: "We are a group, Merrymen, who Steal the rich to give to the poor to combat the sheriff and his ideals.". In a more detailed analysis we look at history as an organizational structure led by Robin Hood. Robin is the leader because it was he who formed the group Merrymen and is responsible for the allocation of tasks and specialization of their subordinates (lieutenants). Each lieutenant had specific functions, such as collecting information discipline among men, took care of the finances and provisioning. As in any business or organization considers itself a strategic shift if needed due to the emergence of problems that can occur. This case is no exception because Robin is facing some problems both in the formation of the group as around personal revenge against the sheriff.

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Masters in Electronics Engineering: 66004, 66020 and 77427 March 18, 2013

Gesto Estratgica e Comercial 1st Practical Case Robin Hood

2. INTRODUCTION
In this first case study, analyzes the story of Robin Hood and his Merrymen group. Robin is the leader of the group mentioned above and is responsible for assigning tasks to the same. What moves this team is the slogan "Steal from the rich to give to the poor." Throughout the case are problems of management and analysis with different solutions. For that, this report is divided into several parts for a better analysis of this case. Initially defined market segment, through an analysis of the external and internal environment and an analysis of the organization's competitive position. In a final stage for a future strategy of the organization withdraw the strengths, weaknesses, opportunities and threats to the achievement of the SWOT analysis, ending with a brief conclusion and future recommendations.

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Masters in Electronics Engineering: 66004, 66020 and 77427 March 18, 2013

Gesto Estratgica e Comercial 1st Practical Case Robin Hood

3. DEFINITION OF MARKET / MARKET SEGMENT


Case assumption: The fame of the Robin Hood's Marrymen led to lots of new recruits and he's band grew bigger and bigger. This resulted in the forest food capacity being exceeded and they had to turn to outlying villages for supplies. This was costly and started to drain the band's financial reserves. The Merrymen's operations had also caught the attention of the travelers which in turn started to avoid taking the rout through the forest and thereby further diminishing the Merrymen's main income source. It is evident that Robin is in a pickle and has to figure out the next strategical move in order to respond to the changing situation. To help Robin and he's operation we will assume that Robins band can be seen as a company with Robin as the CEO and henceforward we will view the situation as such. We are able to help Robins company by applying a market segmentation approach based upon the STP method to define and divide the available market.

Defining the market: Current market is based upon the confiscation of goods from travelers that passes through the Sherwood forest. A switch to a fixed transit tax for the travelers through Sherwood forest is strongly resisted by Robins lieutenants. Essentially the only thing keeping the Merrymen together is their motto and core value "Rob from the rich and give to the poor". Therefore it is evident that the definition of the market has to be associated with its roots. In order to define the market and simultaneously keep the prospects for growth we suggest Robins quest to be broadened and the purpose of the company's operations to be shifted towards an equitable reorganization of wealth of the financial market. Under this definition the company still operates in agreement with its core value while at the same time also give the company the freedom to expand and to penetrate other markets that service the same purpose of increasing the wealth of the poor.

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

However, it has to be noted that the true goal of Robins endeavor from the first place is to remove the Sheriff of Nottingham and his administration from office. In fact, Robin is failing in this regard since he had hoped that with the help of his Merrymen he could pursue a state of perpetual unrest and thus make the Sheriff to fail in his duties to collect taxes and he would be removed. But as the situation unfolds Robins plan backfired and the Sheriff is only getting stronger and Robin is now at the point where he could get in even more trouble if Prince John is choosing to get in on the action. With this as a basis we could say that the company's true purpose is the removal of the Sheriff and his administration as well as all of the Sheriff's supporters. While defining the market under this light we would be more interested in who is against and who is for the Sheriff's administration than who is rich or not, and hence the market definition would be given a higher political weight. Pursuing this line of thought the matter of whether Robin should join with the Barons or not gets very important for many reasons. Just to mention a few: Firstly he would probably have to switch to another main income source since he could not continue to rob the Barons or their marketers. Secondly, he then has to solve the cultural misalignments in he's organization. Thirdly, he has no guaranties that joining with the Barons will actually result in the removal of the Sheriff. Obviously his line of thought requires more information than we are given in the case and therefore we are sticking to the previous definition of equitable reorganization of wealth of the financial market or the "wealth market".

Market segments: In order to be able to identify market segments one must first choose an appropriate segmenting basis. In our case we can identify the following segmentation basis:

Geographic segmentation: Robin can choose to conduct he's operations only in certain areas, as he's already doing. This is done by dividing the market into differential geographical units such as
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Masters in Electronics Engineering: 66004, 66020 and 77427 March 18, 2013

Gesto Estratgica e Comercial 1st Practical Case Robin Hood

nations, states, regions, counties, cities or towns. Geographic segmentation can not be done for this case since there's not sufficient information provided in order to make such a segmentation. Robin has already chosen one location for his company and the geographic market is tightly bound to that location. Depending on the surrounding areas around the Sherwood forest and the benefits/drawbacks they provide he can choose to expand or not. However, in order to expand many things has to be considered and evaluated and below are some of the main issues listed. Logistics between the two locations; easy vs hard? How are the two areas connected? Management; can he manage more than one band of Merrymen that are separated? How would he manage it? What is his strength, weakness, opportunities and threats? Location; how far away could he establish and are there enough resources? Is it safe? Is it going to make the company stronger or weaker in terms of safety?

These are just a few of he questions that must be answered in order to address the issue of geographical segmentation.

Demographic segmentation: Robin can choose to divide the market based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, nationality etc. Demographic factors are the most popular bases for segmenting customer groups and serves some purpose in our case since all travelers passing through the forest can be seen as customers. The only relevant demographic segmentation basis is the one based on income or occupation. These two are highly linked to each other and seen as a source of wealth. However, Robin is already indirectly employing this basis to some extent. The farmers and the
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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

towns people are poor and their lives depend on them tending to their land and hence they will not be traveling a lot. And even if they did have to pass trough the forest the Merrymen would not rob the people they swore to protect. On the other hand, the rest of the travelers such as the marketers, noblemen, the King's men and all the other rich people with higher social status and power would not be able to pass trough freely.

Psychographic segmentation: Robin could divide the market into different groups based on social class, lifestyle, or personality characteristics. This basis serves mainly the same purpose as the previous on in this case. All travelers are customers if they have money, so they can for instance be divined into social class which in principal is a result of the combination of occupation and income.

Beneficial segmentation: This approach does not apply to this case since all travelers with money will be customers. However, if a fee for passing through the forest is considered, then the market could be segmented into non-travelers, ex-travelers, potential travelers, first-time travelers and regular travelers. Respective group could then be assigned an approbate fee. Similarly the market could also be segmented into light, medium and heavy travelers, by traveler loyalty or by path taken through the forest. Although there exist several more segmentation bases such as industrial-,

business-, multiple- and behavioral segmentation we consider a segmentation basis based on demographic segmentation to sufficient enough for our case. Hence we can identify the following market segments: The total market consists of all the people. The potential market is all travelers through Sherwood forest.

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

The Available market consists of all the travelers that bring with them some sort of value in form of wealth to the Merrymen, i.e. includes King's Men, Noble Men Sheriff's Men and travelers of similar nature. The qualified available market consists of the travelers that are traders, marketers or merchants. This segment brings the highest amount of value to the Merrymen. In our case the target market is the same as the qualified available market.

Figure 1 - Market Segmentation.

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Masters in Electronics Engineering: 66004, 66020 and 77427 March 18, 2013

Gesto Estratgica e Comercial 1st Practical Case Robin Hood

4. ANALYSIS OF THE EXTERNAL ENVIRONMENT


4.1 PESTL

In terms of helping Robin and his company we are also able to provide him an analysis of his organizations macro environment which is based upon a PEST analysis.

Political factors identified:

Conflict with the Sheriff of Nottingham Main political factor. Potential conflict with Prince John Robin is not yet in direct conflict with Prince John, only with his Sheriff. But if Robin was to kill the Sheriff for example, he could be dealing with a new Sheriff or directly with the Prince and the Prince's forces. Relation with Barons Robins relationship with the Barons has a direct impact on his operations. Most likely an alliance with the Barons would be good for his operations, but the question is for how long? Trading policies Prince John can prohibit all trading through the forest Somewhat unstable overall political stability of the country Kingdom in potential unrest due to some amount of opposition to the current ruler Is there risk for war? The Sheriff is gaining in strength The Sheriff poses a bigger and bigger threat as time goes by

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Masters in Electronics Engineering: 66004, 66020 and 77427 March 18, 2013

Gesto Estratgica e Comercial 1st Practical Case Robin Hood

Economical factors identified:

Trade routes Merchants and travelers are beginning to take to alternative trade routs to avoid the forest which lead to a decline in revenues. General taxation by the Sheriff Higher trading taxes decreases the amount of goods and money the travelers will be able to bring into the forest. Fast growth of employees in the company Requires more food which already is scarce and thus would give rise to higher spendings. Safety issues in form of easier detection and larger camp Is the forest big enough to sustain the growing company?

Social factors identified:

General attitude towards operations is positive Robin has good reputation that is spreading fast and wide which results in a large available workforce. They have the support of the common people. Prince Johns unpopularity Siding with King Richard and freeing him could yield some beneficial opportunities.

Technological factors identified:

Sheriff's good connections If there would be a new technical advancement that the Sheriff could use to strengthen his forces then he would probably be one of the first to know about that new piece of technology.

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

Environmental factors identified:

Natural catastrophes Fires, earth quake, meteor strike, tsunamis, extreme cold etc. Bad weather A bad year in therms of the farmers harvest would further intensity the food issue.

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

4.2

PORTER'S 5 FORCES

Negotiating Power of Suppliers

Threat of New Entries

Rivalry among Competitors

Threat of Substitute Products

Negotiating Power of Customers

Negotiating Power of Suppliers - It is considered that the providers are a high force, since the goods from merchants seized are essential for the survival of the group.

Rivalry among Competitors - It is considered that the competitors are a high force, since the direct opponents of Robin (Princepe sheriff and John) are the main threat of the goals espoused by Merrymen. Negotiating Power of Customers It is considered that the customers are a low force, because they do not represent any threat to the Merrymen since these are the main protectors of the people.

Threat of New Entries - It is considered that the new entries are a low force, because it is more likely that a new entry joins the group Merrymen than form a new group.
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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

Threat of Substitute Products - Considered to be the substitute products are a low force, since the people as alternatives only shows the high fees charged by Princepe John and forest trail.

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

5. INTERNAL ENVIRONMENT ANALYSIS


5.1 VALUE CHAIN

To further help Robin to make the right strategic moves we are providing him with an internal environment analysis based on value chain analysis.

Primary Activity: Inbound logistics Supplies from the towns people. Consisting mostly of food but also tools, metals, weapons etc. Operations Raiding travelers in the Sherwood forest. Mostly merchants and tax collectors. Outbound logistics Money and goods that been taken from the merchants and tax collectors. Marketing and Sales The spreading fame of the Merrymen. The motto "Rob from the rich and give to the poor" is a source of profound pride for the Merrymen. "They are doing a good deed and if you share the same values you can also be a part of it." Service Intelligence, scouting and provisioning. Collection of information and travel plans of rich merchants and tax collectors. Discipline among the Merrymen and high quality archery. Financial management in terms of converting loot to cash, paying shares of the take and finding hiding places for the surplus.

Secondary Activity: Procurement Sourcing and negotiation with suppliers. Mainly with townspeople for food and raw materials.
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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

Human Resource Management Recruiting, training, motivating and rewarding the workforce, e.i. the Merrymen Technology Development High level of information and "raiding know how". Robin has handpicked lieutenants that has the same core values as himself which he then trained. As a result all Merrymen are skilled raiders. Infrastructure Robin is the CEO and he has his trusted team that make up the general management. Scarlett, Little John, Scarlock and Much the Miller.

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Masters in Electronics Engineering: 66004, 66020 and 77427 March 18, 2013

Gesto Estratgica e Comercial 1st Practical Case Robin Hood

6. ANALYSIS OF THE COMPETITIVE POSITION OF COMPANY / ORGANIZATION


6.1 FCS

In this organizational structure there are several success factors that Robin Hood and his team reach. Stated below are 5 of the success factors identified. 1. Robin's leadership led to the structuring and formation of the Merrymen. It is considered that the fact that Robin is the leader of the group is critical because it leads to the formation of a team work that tries to produce satisfactory results. 2. Robin decided to specialization of tasks. Assigned to small groups of men, different tasks in order to make the group organized, disciplined, loyal and united. Robin was able to delegate tasks efficiently organize your group. 3. It is considered that the way that advertising was used to promote the group is critical because of the great importance of recruitment achieved. It was due to word of mouth advertising that Robin got his big fleet. 4. One of the tasks assigned to Robin that one group was gathering information. It is considered that the search for information is a critical factor because it was very useful information that Robin had about the next steps of the sheriff and travel marketers. On the side there is also a rival of this critical part of Princepe since he had spies for information.

5. One of the critical factors is the resources, both human and essential. Because
resources are one of the factors that most influence the evil being or welfare of the whole team to achieve the goals.

6.2
Factor 1 2 3 4 5 Total

BENCHMARKING
Robin Hood and Merrymen 4 3 5 3 3 3.5 Sheriff 3 3 2 3 5 3.3 % 30 30 10 10 20 100
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March 18, 2013

Gesto Estratgica e Comercial 1st Practical Case Robin Hood

7. ANALYSIS SWOT

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

8. CONCLUSIONS AND RECOMMENDATIONS


Finally, after analyzing the case study, it is necessary to answer two questions: "Now what will you do?". The best way to answer these questions is to present some recommendations for this case. Then presents various recommendations topics in order to facilitate understanding. You need to make a kind of aptitude test, a kind of interview for the recruitment of new members to the group Merrymen. If this test is done, it is possible to better control the number of members to join the team. So to recruit people who have spirit and capacity to learn quickly the policies of the group. This recommendation will improve the performance of the Merrymen.

With the increasing number of persons in the group, it is necessary that the level of formation also increases. Robin should have a fleet with a manageable number. Should form small working groups and will form each person individually giving your best. Robin should discipline your group to be competent in their tasks to cope with the great power of the sheriff.

It is important that we not implemented the tax rate that Robin Hood wants to apply to merchants and villagers. This policy that Robin wants to apply is unfair to merchants and residents who support him in his struggle against the sheriff. This action will reduce the support of the villagers to the group Merrymen, which in turn would feel bad and with moral very low. If the group has a low morale, discipline among them may be affected and may even disperse your big objective. This tax rate could only work if it was temporary and only Robin explained to the villagers so that they understand and agree.

The union with the Barons is one of the suggested recommendations. As explained in this report, if Robin siding with Barons get a larger support beyond that will obtain the release of King Richard's prison in Austria.

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

Kill the Sheriff is not a recommendation, since it would not solve the problems. In another perspective could get another type of problems.

Finally, Robin could ally himself with other members through various parts of England. Could create several other groups Merrymen. Robin could form a leader in each subgroup Merrymen so as to have skills to train other members too. So this policy that defends Robin, was spreading further and created greater affluence and importance.

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

9. QUESTIONS ASSIGNEMENT
1 - What problems does Robin Hood have? What issues need to be addressed? Due to word of mouth advertising group formation Merrymen, there was a strong support on the part of the people. This strong adhesion led to the exponential growth of the group. This growth led to problems due to lack of resources for their basic needs, lack of communication among men, the formation by the Robin was not so efficient and also led to the removal of travelers and traders of forest (these merchants were the source yield group). On these issues derived from the high growth of the group, raise some questions that should be thought: "Would not it was better to have a more limited group? Does not worth having few people with great training than many men with little training? Does the relationship growing group vs quality is good? ". Another problem we encountered was Robin that sheriff's becoming increasingly stronger and more powerful. This increased power with the support of the court's ruling and Princepe John and with the vast money existed. This problem leads to some questions that are pertinent: "Does Robin should not have relied on a power stronger? Does Robin did well to join the people only? Robin should reject the tender of the Barons?.

2 - Do Robin Hood and Merrymen need a new mission? New objectives? A new strategy? To answer this question we have to look at the fact at hand. From the text we could assume that Robins vision is a fair society in terms of wealth and is run by a good and honourable King that has the support of the people. In order to accomplish this he sets out on a mission to remove the Sheriff and his administration. Robins strategy to accomplish this is to rob from the rich and give to the poor with he help of men with a deep sense of justice. That way he assumes he can cause a state of perpetual unrest and thus make the Sheriff to fail in his duties to collect taxes which would lead to his removal. However, when looking at the external and internal environment we clearly noticed the following factors; revenue is down and costs are rising, he has a cultural
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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

misalignment in his company and in just 2 years his company from a small band to a big corporation with a strong regional presence. Along with these changes there are also several other important questions and decisions that has to be addressed. Is Sherwood Forest becoming to small for him to sustain the organisations operations? How can he avoid detection of his growing organisation? Prince John has a lot of spies that can infiltrate his operations due to the problems with cultural misalignments, e.i. Robin doesn't know half of his men any more. How should Robin deal with the growing strength of the Sheriff's forces? What about the idea of killing the Sheriff? Should he do it, can he do it? What about the idea of joining the Barons? Should he do it? What about the idea of impose fixed taxes? Should he do it?

These are all questions that has to be addressed and answered in order to evaluate if the changes in the external environment means that the original mission no longer applies. For instance Robin could choose to kill the Sheriff, join the Barons and impose fixed taxes. But would that serve his vision? With this as a background we can easily see that Robin is indeed in need of a new strategy. In fact, almost every decision he is confronted with requires a strategical change. However, we believe that Robin would make decisions in line with his vision and to do that he doesnt necessary need to change his mission. He can still pursue his mission to remove the Sheriff and his administration from office but in order to continue to do so he has to change strategy. Due to the growth of his company he has to develop a competitive strategy to sustain his position in the industry. He should also develop an internal communications strategy to ensure that his vision, mission and strategy is ensured, known and valued in his company and thus avoid cultural misalignment by his Merrymen.

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

3 - What strategic options does Robin Hood have? Is continuing with the present strategy an option or is the present strategy obsolete? Robin's strategic options are: Forming an alliance with the barons to rescue Princepe Ricardo, despite all the drawbacks and dangers that stemmed from the alliance; Expand the area afforested Merrymen group to have access to more merchants and travelers who avoided the forest; Kill the sheriff satisfying his personal vendetta. In this case it is considered that the strategy is obsolete and need a strategic shift. The viagentes prevent passage in the forest, revenue and resources of the group is not sufficient for survival. With the increasing growth of the group Merrymen the situation does not seem likely to improve and so you need a change, a difference in the quality of training and better use of resources.

4 - Why not try to end the campaign by killing the Sheriff? Killing the Sheriff would be a high risk undertaking with uncertain consequences. In worst case he and all his Merrymen could be killed. Robin already knows that the Sheriff is stronger now than ever before and is gaining in strength and Robin doesn't currently have the resources to pull it off safely. And even if he could pull it off, there would for sure be a new sheriff appointed by Prince John and there are no guaranties that the new sheriff would be any better. With a succeeded removal of the Sheriff, Robin also confronts the issue of putting himself as the main target of Prince John and that would put more pressure on him and his Merrymen. The problem at hand is bigger than just the Sheriff.

5 - What are the pros and cons of accepting the offer of the barons to assist in securing King Richards release from prison? Robin had in his hands deciding to ally themselves barons or not. This alliance would help the release from prison of King Richard of Austria. If Robin is allied to the barons would have pros and cons of your decision. By allying Robin gain amnesty and the expected resolution to campaign against the sheriff. But if for some reason the plan
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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

failed, Princepe John would use all its power and revenge to ensure that Robin Hood and his group were exterminated.

6 - What action plan would you recommend to Robin? Robin should embrace his original vision, expand his mission and implement new strategies to accomplish that. Because of the threat of the growing strength of the Sheriff he can not really wait for much longer if he want to have a chance of fulfilling his vision. Therefore, he should expand his mission and think about joining the Barons. If he joined with the Barons he could solve the supply issues and he could stop worrying about the increasing growth of his company. This would also let him expand to other areas more easily (gaining more men for a greater cause) as well as increase the security of his company since he have the protection of the Barons. After joining with the Barons he should focus on getting King Richard back. Then together they could overthrow Prince John and the Sheriff and thus completing his vision. However, there are some risks involved in this quest. Firstly, Robin has robbed a lot of travellers and it is not sure how the rich Barons would feel about Robin would they free King Richard and succeed in overthrowing the current ruler. However, if they succeed in freeing King Richard, then Robin would be very keen on letting King Richard know that he also contributed in his release. Secondly there is the problem of getting all of the Merrymen in on the same line of thought as Robins vision. e.i. the challenge of implementing the strategical changes as well as the mission expansion. Perhaps he couldn't convince all of his Merrymen to quit robbing and see the bigger picture and he would make new enemies of those. Another risk he must be able to take should he consider joining the Barons, is that it is not written in stone that they would be able to overthrow Prince John and his followers. Robin must also be willing to loose some of his control to other (especially King Richard) if he would join the Barons in the quest of freeing King Richard. After reviewing the risks and benefits Robin has, we suggest that he attempts to join the Barons and starts implementing his new strategies and whilst simultaneously expands the company's mission.

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Gesto Estratgica e Comercial 1st Practical Case Robin Hood

7 - How should Robin implement the recommended plan? What action steps will need to be taken to make the recommended strategy work successfully? Robin should have the initiative to send a small group of men disciplined, responsible, with the power of the word and its maximum confidence Robin to talk with the Barons. This conversation would be helpful to clarify the whole situation, to make sure the potential alliance and delegate tasks. Robin would be responsible for arranging the group of men capable of implementing the details of the rescue plan of King Richard. The Barons would serve as a way to improve logistics and guarantee provisions. This alliance could be seen in the business aspect such as the Barons would be the company's investors and would Merrymen manpower company.

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