The aim of this assignment is for you to apply some of the concepts studied in class to a real-world business problem.
The task requires you to answer one of the following questions, A or B.
Question A.
There has been a lot of discussion about the so called ‘milk-price wars’ between Australia’s leading supermarkets. Recently, with a small increase in milk prices, many have declared that the milk-price war is over. See, for example:
https://www.afr.com/companies/retail/the-milk-price-war-is-over-20190319-p515lc
Considering this case study – or another similar example of a price war – critically analyse the business strategy of the price leader and their rival(s) during the price war. What do you think is intended by these strategies? How can firms get themselves out of a price war (presuming they want to)? As much as possible relate you answer to the price-war case study you have chosen.
Question B
Mergers and acquisitions potentially create considerable value, but often the anticipated benefits fail to materialise, like in the merger of Dailmer and Chrysler in 1998, or more recently between Amazon and Whole Foods in 2017. See, for example:
https://hbr.org/2018/10/one-reason-mergers-fail-the-two-cultures-arent-compatible
Taking a real merger or acquisition assess what factors made it either successful or unsuccessful? Suggest ways that these problems could have been avoided.
Please note that you must:
1. Select a real example (it can be the milk-price war for Question A, or either of the mergers noted for Question B, or any other relevant real example. 2. Describe the key details in the example you are analysing.
3. Apply the theories from the unit of study and from your own reading to the real-world example. 4. You are expected to undertake some research in completing this assignment, but do not get bogged down in research – the bulk of the (very short) essay should be your analysis. 5. In this assignment, you will also be rewarded for the depth of your analysis using the tools that you will have been taught in the course. 6. Make sure you reference your work properly (any reference style is fine, provided it is consistent, complete and correct).
