Teaching Note: Case 1 – Robin Hood
Teaching Teaching Note: Case Note: Case 1 – Robin Hood Case Objectives
1. To provide provide an introducti introduction on to the conceptual conceptual framew framework ork of strategi strategicc management management using a nonbusiness situation. !. To introduce introduce students students to the process process of problem problem identif identificati ication on and potential potential solution anal"sis that will be used in case discussions throughout the semester. #ee the table below to determine where to use this case: Chapter Use 1: #trateg" Concept
Key Concepts
$eadership for strategic management% sustainable competitive advantage% vision& mission& strategic ob'ectives% e(ternal environment% internal environment% efficienc" vs. effectiveness% stakeholder management
Case Synopsis
Robin Hood and his h is merr" men are now in trouble because wealth" travelers )their source of revenue* are avoiding the forest. +s is often common in an entrepreneurial organi,ation& the -err" -en were highl" motivated b" Robin Hoods leadership. leadership. Therefore& Robin had previousl" previousl" relied relied on informa informall communica communication tion to to organi,e organi,e and implemen implementt operatio operations. ns. Robin Robin is pleased with the growing si,e and influence of his organi,ation. However& growth has meant that speciali,ed duties have begun taking up most of the mens time& leaving a command vacuum between Robin and the first line recruits. /n addition& the" are now all located in a large encampment that can be seen for miles. This creates the probabilit" of a surprise attack on their position. 0rowth has also put great pressures on resources& so now the" must harvest the forest more thoroughl". thoroughl". here will additional revenue come from2 Rich travelers are avoiding the forest& so in desperation Robin is considering robbing the poorer travelers travelers&& which which means means his lieutenant lieutenantss must must now tell their men to to rob their brothers brothers and fathers. hat started as a rebellion is in danger of being b eing routini,ed into banditr". Robin must therefore begin to evaluate the -err" -ens mission mission in view of o f the changing environment. #hould it still be an e(tension of his private grudges and aspirations2 Has the organi,ation ac3uired a new mission& if so what is it2 ho are the ke" stakeholders here2 4n whose behalf should the organi,ation formulate its mission5 Teaching Plan
-ost students are familiar with the Robin Hood stor"& so its possible to ask them to read this short case in class during the 1 st or !nd class meeting. 6ither use the 7ower7oint slides or ask the discussion 3uestions directl". +s students respond& either write answers on the board or refer to the 7ower7oint slide answers. /ts up to the instructor whether or not to assign Chapter 1 prior to discussing the case. /f the case is read before the chapter is read& then the instructor has the option to ask
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Teaching Note: Case 1 – Robin Hood
students& when the" do read the chapter& to identif" the concepts in the chapter that the " recogni,e from the case discussion& and come to the ne(t class prepared to share what the" recogni,ed. /f the case is discussed after students have read Chapter 1& the instructor can ask students to identif" what concepts appl" from the chapter. Suary o! "iscussion #uestions Here is a list of the suggested discussion 3uestions. 8ou can decide which 3uestions to assign& and also which additional readings or e(ercises to include to augment each discussion. Refer back to the Case 4b'ectives Table to identif" an" additional readings and9or e(ercises so the" can be assigned in advance.
1. hat is strateg"2 !. hat strategic problems does Robin Hood have2 . hat is the role of the organi,ational leader as strategist and articulator of global goals2 ;. hat are some issues in this organi,ations e(ternal environment2 <. hat is the relationship of the organi,ations internal structure to its environment2 =. How do group values or culture influence strateg" making2 >. hat strateg" can Robin Hood implement2 "iscussion #uestions and Responses Chapter 1$ %ntroduction and &naly'ing (oals and Objectives 1. What is the purpose of strategy?
#ee Chapter 1& 6(hibit ?1: Strategic management consists of the analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages: strateg" directs the organi,ation toward overall goals and ob'ectives% • includes multiple stakeholders in decision making% • incorporates both shortterm and longterm perspectives% • recogni,es tradeoffs between efficienc" and effectiveness. • +n interesting 3uestion that the instructor can ask at this point is: what business is Robin Hood’s organization in? #ome students might sa" philanthrop"& some might sa" robber". The answers to this 3uestion will help students understand the importance of vision and mission: the leader must have a clear idea of the purpose of the business& and who it
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Teaching Note: Case 1 – Robin Hood
competes with& in order to craft strateg". /f the business is robber"& there are different competitors& like highwa"men. 2. What strategic problems does Robin Hood have?
Robin Hoods organi,ation is in a profit s3uee,e: revenue is down and costs are rising. /n addition& there are cracks in the culture of the organi,ation. /ssues that need to be addressed include: How to avoid detection of the growing organi,ation2 • Has #herwood @orest become too small to sustain operations2 • hat to do about the growing strength of the #heriffs forces2 • How to address organi,ational communications and leadership confusion2 • Aecisions that need to be made include: #hould Robin Hood kill the #heriff2 • #hould Robin Hood accept the Barons offer to 'oin in freeing ing Richard2 • #hould Robin Hood impose a fi(ed transit ta( in order to increase revenue2 • Conse3uences to be considered include: Aoes the change in the e(ternal environment mean that the original mission is no • longer valid2 /f Robin Hood decides to kill the #heriff& accept the Barons offer or impose a ta( • on travelers& how do each of those actions link to the mission2 /f the mission changes& to what degree does Robin Hood have to worr" about the • lo"alt" of stakeholders2 4ne other issue concerns the rapid growth of the organi,ation. /n the space of two "ears the organi,ation grew from fragmentation and obscurit" to a strong regional presence. Competitive strateg" is about sustaining a position in the industr". 0rowth implies that strateg" has to be fle(ible enough to adapt. Aoes Robin have a sustainable strateg"2 . What is the role of the organi!ational leader as strategist and articulator of global goals?
#ee Chapter 1& 6(hibit ?=: he primary role of the organizational leader is to articulate vision, mission and strategic ob!ectives. $eaders must also be proactive& anticipate change and continuall" refine changes to their strategies. This re3uires a certain level of Dambide(trous behaviorE& where leaders are alert to opportunities be"ond the confines of their own 'obs& and are also cooperative and seek out opportunities to combine their efforts with others. Robin Hood needs to evaluate his initial vision of the organi,ations purpose: what was the original goal that was "massively inspiring, overarching, and long#term$, that represented a destination that is driven by and evokes passion? /s the original vision
Teaching Note: Case 1 – Robin Hood
irreconcilable with the present circumstances2 Robin Hoods organi,ational mission ma" have to change: a mission encompasses both the purpose of the company as well as the
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Teaching Note: Case 1 – Robin Hood
basis for competition and competitive advantages% 4rgani,ations must respond to multiple constituencies if the" are to survive and prosper& and the mission provides a means of communicating to diverse organi,ational stakeholders. /f the vision and mission have to change& Robin Hood must establish strategic ob!ectives to operationali,e the mission statement. That is& ob'ectives help to provide guidance on how the organization can fulfill or move toward the "higher goals$ in the g oal hierarchy Fthe mission and vision. Therefore& Robin Hood needs to redefine the organi,ational vision and mission since it ma" have changed rebellion ma" have become routini,ed into banditr". He must also identif" the ke" stakeholders& broadening his focus be"ond his own private grudge to include the needs of the district& the region& or the nation. +nd he must establish new goals. Aepending on the stakeholders& these new goals ma" include replacing the #heriff or changing the political order. ". What are some issues in this organi!ation#s e$ternal environment?
There are obvious resource constraints. #herwood @orest has finite resources: the inputs into the organi,ation )travelers to rob* have dwindled& especiall" since the rich travelers have started avoiding it. Robin Hoods band are spending past gains on present problems in the assumption that future revenues will continue to grow at the same pace as in the past. This assumption& one that is often pervasive in successful organi,ations& ma" be unwarranted. The -err" -en are reduced to robbing poorer travelers. The poor travelers are their main sta" of political support. Here is a common pitfall of success& the tendenc" of organi,ations to take their best and most important customers for granted& to e(tract from them the highest return for least effort in the belief that the" have no practical alternative. /n addition& trained manpower is scarce. Regarding the ph"sical environment& the current growth of the organi,ation has created a large encampment that can be seen for miles& and is therefore now a target for attack. The nature of the -err" -enGs environment and operations re3uires stealth and fle(ibilit". The current ph"sical facilit" does not provide for this. %. What is the relationship of the organi!ation#s internal structure to its environment?
#ee the Chapter discussion of the trade#offs between effectiveness and efficiency. 0iven the growth of the operation& Robin Hoods previous structure ma" no longer be effective. He ma" no longer be able to achieve the goals of the organi,ation. He might need to make tradeoffs. His current structure is functional& with each lieutenant a specialist. Communication has been informal& and Robin currentl" has no direct link to his first line recruits. This structure performed well in the earl" da"s of the band. However& with the growth of the organi,ation& this has become problematic& resulting in lack of co ordination. His lieutenants could do double time as staff and line personnel: fulfilling their staff duties in
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Teaching Note: Case 1 – Robin Hood
offpeak periods& but available for line dut" during field operations. Robin might want to consider creating a decentrali,ed regional operation& with subbands who can operate out of smaller regional head3uarters and better coordinate movements. This will increase fle(ibilit" of the total organi,ation b" moving the organi,ing of op erations closer to those who undertake them. This will also reduce the chance of attack because then onl" part of the band might be detected and surprised. Aecentrali,ation also pushes foodgathering down the line& thereb" eliminating food distribution problems. #mall scale operations can be carried out with greater econom". &. Ho' do group values or culture influence strategy ma(ing?
Auring strategic anal"sis& the leader does Dadvance workE to anticipate unforeseen environmental developments& identif" unanticipated resource constraints& assess changes in his or her preferences for how to manage. Auring strateg" formation& depending on the t"pe of organi,ation structure& the leader might include ke " individuals in a discussion around selecting which strategies might be best to implement at which level within the organi,ation. /n strateg" implementation& the leader must ensure proper strategic controls and organi,ational design& and establish effective means to coordinate and integrate activities within the firm as well as with suppliers& customers and alliance partners. Therefore& leaders must pa" attention to all stakeholder needs& including the groups values and the organi,ational culture. #ee Chapter 1& 6(hibit ?< for the diverse stakeholder groups and the claims they make on the organization% Regarding the organi,ational culture& it was based on founding values that embraced a missionar" outreach to the communit". The original purpose created unit" and a spirit of daring among the -err" -en. Robin is considering abandoning the higher )more affluent* segment of his market for a deeper e(ploitation of a ver" large segment with limited resources. Here he runs up against organi,ational traditions and values. /f Robin pursues profit ma(imi,ation now )robbing all travelers& including the poor*& the group will become thieves. 0roup members will resist stealing from their brothers and fathers. Robin needs to restore the group members need for order and purpose. The -err" -en need to feel that their participation is 3uasivoluntar". ). What strategy can Robin Hood implement?
The basic 3uestion strategic management tries to answer is: How can we create competitive advantages in the marketplace that are not only uni&ue and valuable but also difficult for competitors to copy or substitute? Robin Hood must assess how functional areas and activities Dfit togetherE to achieve goals and ob'ectives. /f the organi,ation is still RobinGs e(tension of a personal grudge& then displacing the #heriff should be the primar" mission of the -err" -en. /f the organi,ation is acting on behalf of the district then replacing the #heriff with a more benign administration should be the priorit". /f however the -err" -enGs e(istence is an e(pression of widespread dissatisfaction with the present political order& then Robin should consider his potential
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Teaching Note: Case 1 – Robin Hood
contributions on a national scale. +n anal"sis of the options confronting Robin ought to lead the students to 3uestion the criteria b" which strateg" is 'udged. ho is the actor in strateg"2 The chief e(ecutive officer2 Top management2 + coalition of stakeholders2 There is clearl" no theoretical answer to these 3uestions. + discussion ought to set the ground for an appreciation of the political and structural forces under which strateg" emerges. Robin should have a meeting with the -err" -en to e(plain the strategic dilemma and longterm issues. He needs to increase organi,ational discipline& which could b e done b" creating a clearer organi,ational structure with strategic controls that enforce the mission. To do this& he needs to recruit 3ualified leaders for the new decentrali,ed structure& and involve lieutenants in the solution. /t is alwa"s an issue – which functions should be decentrali,ed and which retained at the corporate level. /n this case intelligence gathering and finance should probabl" be kept centrali,ed. /t is crucial for the students to appreciate the contradictor" pressures that implementation generates. The new decentrali,ed structure will call for more intricate communication and command s"stems. /t increases fle(ibilit"& but also increases the probabilit" of breakdown and mismanagement. /n this case runners must keep the various subbands in communication. This is a primitive technolog" that ma" be insufficient to ensure coordination. +n opportunit" e(ists here for the students to appreciate to what e(tent sophisticated organizational forms are made possible b" modern technologies which are ordinaril" taken for granted. hile restructuring is going on Robin must begin to consider other aspects of his strateg". He should e(amine the possibilit" of diversif"ing be"ond the confines of his traditional forest territor". This is viable if he is decentrali,ed. 4perations can be carried on in the countr"side b" the autonomous subbands. He must also resolve the issue of the proposed transit ta(. hat should be his relationship to the local population2 #hould he increase their burden of ta(ation& or not2 Robin must also prepare for the possibilit" of ceasing operations b " providing outplacement training. He should pursue alliances be "ond the current band of -err" -en& negotiating a possible change in the political order& negotiating amnest"& returning the band to legalit". He should probabl" avoid contact with the #heriff5 @inall"& Robin should recogni,e that mistakes will occur. Therefore he should anticipate the costs of implementation& especiall" the problems of e(tended communication. Robin must familiari,e his lieutenants with his intentions and the pro'ected problems. The" must activel" become involved in the evolving implementation. ltimatel"& however& Robin Hood must consider the longterm course of action. /f the -err" -en were a profitma(imi,ing organi,ation in the classic sense the" would be satisfied with keeping the #heriff off balance% or perhaps work towards his replacement with a more ine(perienced man. The" are however a missionar" organi,ation. To pursue profit ma(imi,ing would sooner or later lead them to thiever"& pure and simple. /t would also
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Teaching Note: Case 1 – Robin Hood
undermine their unit" and spirit of daring. Robin Hood has little choice but to increase his involvement in issues that lie be"ond his immediate task environment.
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