Week 2 Homework: In the News...
According to the textbook strategic management is a business philosophy that encompasses analysis, decision-making, and actions to establish competitive advantage (Dess, et.al. 2012). Barnes and Noble continue to make headlines for the failure –to-launch of its Nook E-Reader. In the New York Times Leslie Kaufman (2013) writes that Barnes & Noble’s foray into the digital age is a catastrophic failure noting that it’s constant attempt at catch-up which is too little too late to gain any competitive advantage. Barnes and Noble is a perfect example of a nonexistent business strategy, a flying-by-the-seat-of-your-pants business practice that changes with the wind that lacks leadership.
Why and how the material is important and relevant to the course content:
• The mission statement at Barnes and Noble is ambiguous and does not identify what sort of business they are operating. Its website states “Our mission is to operate the best specialty retail business in America, regardless of the product we sell.”
• Though they have a vision that encompasses respect, integrity and teamwork it has been reported that the leadership style of its former CEO did not tolerate those who disagreed with him, squashed creativity and actually encouraged employees to leave.
• Strategic goals were too many, not measurable, not specific enough, not timely and not realistic given its competition and entry into new markets. In a letter to shareholders William Lynch wrote: The Company’s strategic plan is to Gain Share in Our Physical Retail Bookstore Business; Establish B&N as a Top Retailer of Content in the Exploding Digital Market; Grow Share of the $12 Billion Textbook Market.
• They failed to properly identify, protect and capitalize on their competitive advantages
• It appears the CEO’s vision was ambitious global domination rather than