CASE QUESTIONS

Mgt. 499
Summer Quarter 2007

Lufthansa (Case #18)

1. Evaluate the general environment (demographic, economic, political/legal,

sociocultural, technological, global) of Lufthansa using the framework in
Chapter 2. What are the key opportunities and threats in each of these
areas facing Lufthansa?

2. Use Porter’s Five Forces Model to analyze the global airline industry.
Identify each force as strong, moderate, or weak. Given your analysis, is
the industry attractive or unattractive?

3. Evaluate Lufthansa’s tangible and intangible resources. (Use Tables 3.2

and 3.3 in Chapter 3 to do your evaluation.) Which are more important as
a source of competitive advantage? Why?

4. Does Lufthansa have a sustainable competitive advantage in the global

airline industry? (Hint: Apply the four criteria for competitive advantage
given in Chapter 3, specifically, Tables 3.4 and 3.5.)

5. Perform a SWOT Analysis on Lufthansa Airlines

6. What is Lufthansa’s business-level strategy? Defend your answer. Is the

strategy appropriate to offset the forces in the industry? Do you
recommend any changes?

Humana Inc. (Case #15)

7. Which of the general environment segments are most relevant to

Humana? What are the main opportunities and threats affecting the
company?

8. Apply Porter’s Five Forces Model of Competition to the Accident and

Health Insurance and Medical Service Plans industry. Is this an attractive
industry in which to compete?

9. What factors are critical to the success of Humana (key success factors)?

10. What are Humana’s tangible and intangible resources? Which of these
will be critical in developing capabilities and core competencies?
11. Perform a SWOT Analysis on Humana.

12. What are Humana’s strategic options to achieve their goal of becoming
the nation’s leading internet-enabled, customer-focused health services
company?

Wal-Mart (Case 29)

13. Evaluate the general environment of Wal-Mart using the framework in

Chapter 2. What are the key opportunities and threats facing Wal-Mart?

14. Use Porter’s Five Forces Model to analyze the global retailing industry.
Given this analysis, is the industry attractive or unattractive?

15. Who are the main competitors of Wal-Mart and how does Wal-Mart
measure up against these competitors? (Consider future objectives,
current strategy, assumptions, and strengths and weaknesses.

16. Evaluate Wal-Mart’s tangible and intangible resources. Which are more
important as a source of competitive advantage? Why?

17. Apply the value chain model to Wal-Mart. Based on this model, in which
activities does Wal-Mart have its main competencies?

18. Does Wal-Mart have a sustainable competitive advantage in the global

retailing industry? (To answer this question, you should apply Table 3.4
(The Four Criteria for Sustainable Competitive Advantage). Then give me
a clear conclusion about each criterion (yes or no) and then interpret your
analysis.)

19. Perform a SWOT Analysis on Wal-Mart.

20. What is Wal-Mart’s business-level strategy? Is the strategy appropriate to

offset the forces in the industry? Do you recommend any changes? (In
answering this question, students you should refer to Michael Porter’s
framework in Chapter 4, especially Figure 4.1.) What is the international-
level strategy being pursued by Wal-Mart? What entry strategies are
being used?

Whole Foods (Case 30)

21. Which of the general environment segments are most relevant to Whole
Foods Market? What are the main opportunities and threats affecting the
company?
22. Apply Porter’s Five Forces Model of Competition to the natural and
organic foods industry. Is this an attractive industry in which to compete?

23. What are Whole Foods Market’s tangible and intangible resources?
Which of these will be critical in developing capabilities and core
competencies?

24. Perform a SWOT Analysis on Whole Foods.

25. How should Whole Foods Market deal with anticipated shortages of
natural and organic products in the future? How will mainstream
acceptance of natural and organic products affect Whole Foods Market?
To what extent should Whole Foods Market pursue international
expansion?

Tata Steel (Case 26)

26. Which of the general environment segments are most relevant to Tata
Steel? What are the main opportunities and threats affecting the
company?

27. Apply Porter’s Five Forces Model of Competition to the global steel
industry. Is this an attractive industry in which to compete?

28. What are Tata Steel’s tangible and intangible resources? Which of these
will be critical in developing capabilities and core competencies?

29. Perform a SWOT analysis on Tata Steel.

30. How can social giving be considered enlightened self-interest? What has
driven Muthuraman to reexamine the vision for Tata Steel? Are the two
pillars of Tata Steel’s vision contradictory? What are the benefits of Tata’s
strong brand equity in India and in the global marketplace?