Reference no: EM132671005
1. Ride Away International a. What is RAI's Vision and Mission?
In 2000, Nance Legstrong formed Ride Away International (RAI), a producer of "specialized brake components" used in the manufacturing of performance racing bicycles. Legstrong's vision was to establish a company where "people work together in harmony to create incredibly safe specialized brakes for performance racing bikes". "At RAI, we strive to be the most successful brake manufacturing system in the world. The combination of employee skills, state-of-the-art technology and manufacturing systems, we set the industry standard in safety and excellence for brake system components". RAI is able to secure premium prices from its customers, by offering valuable and difficult-to-imitate benefits (skills, state-of-the-art technology and manufacturing expertise). Executives have been committed to growing the business through organic expansion, but lately they have been open to other options, as they look to grow the company.
b. Using the Hambrick Model (Strategy Diamond) what was RAIs initial strategy?
As of yesterday, RAI executives have decided to acquire Kanga, the leading producer of "brake system components for traditional bicycles" in Australia. RAI will now manufacture ALL of its products (both specialized and traditional brake components in India. RAI wants to increase sales by 10% by July 2014, by expanding RAI's employee skills, state-of-the-art technology and manufacturing expertise.
c. What are RAI's objectives?
d. How will this acquisition change RAI's strategy? Using the Hambrick Model (Strategy Diamond) how will RAI's vision, mission and strategy change to reflect this change in how they do business?
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: 1. Ride Away International a. What is RAI's Vision and Mission?
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