(The answers are indicative. Students may attempt to formulate their answers in a different way as long as they show good understanding of the theories).
In order to conduct your analysis, pick an organization, as specified in each the questions below. Pick an organization about which you can obtain information.
The TMA aims to assess your understanding of the core concepts of marketing. This assignment tackles different dimensions of the concepts of management. The ultimate purpose of this TMA is to allow you to develop your ability to use the conceptual frameworks, theories, practices, models and tools that you have studied in B629 and hence to apply them to real situations.
This TMA has two questions.
Word limit for the TMA: 1600 words +/- 10%. Elaborate discussion and link between accurate, well-founded theoretical frameworks and their real, practical applications in the selected; this should be clearly highlighted. You are also expected to refer to external references to provide more evidence in support of your discussion. The questions in this assignment are about different concepts of marketing in relation to the selected organization.
Your discussion needs to be provided in an essay format (introduction, body and conclusion). You have to provide comprehensive discussion/analysis in your answer, and not only description.
Higher marks will be awarded to work that:
uses the example company to illustrate key points rather than just describe what it did. Descriptive answers will receive lower marks,
uses a range of scholarly articles to support the key points, or to develop its arguments,
addresses both parts of the question more or less equally,
uses correct in-text citations and a correct table of references,
is well-written in an essay style,
has a conclusion which addressed the question directly,
is within 10% of the word limit.
Question 1 (50 marks)
Explain how managers in a selected organization deal with fairness and satisfaction to accomplish mutually satisfactory exchange between the organization and its customers or stakeholders. Discuss some of the issues and options the customers might face when they think they are not getting a fair deal in this exchange. Support your answer with relevant examples. (800 words)
Question 2 (50 marks)
Considerations of fairness, power and satisfactory exchanges bring us to the question of ethics in marketing. Discuss the extent to which fairness or justice are considered key questions raised by ethics, and what that means in practice. Explain the degree to which using commonly applied ethics theories in marketing – i.e. utilitarianism, deontology and virtue ethics – is challenging to a selected organization when facing and tackling an ethical dilemma. Support your answer with relevant examples. (800 words)
GENERAL INSTRUCTIONS FOR STUDENTS
Cut-off date: If you feel that you are unable to meet the cut-off date of the TMA because of unusual circumstances, please contact your tutor as soon as possible to discuss a possible extension to the cut-off date. The exact cut-off date will be assigned in due time.
Chapter: 1. Students can refer to other course material if needed.
Format: Report presentation and structure, and PT3 Form. You are expected to write your answers in essay format. You may, however, use bullet points, diagrams, tables, or any graphs to support your arguments. Failing to do so could result in grade deduction from presentation marks up to 5 marks.
Plagiarism: It’s imperative that you write your answers using your own words. Plagiarism will be penalized depending on its severity and according to AOU plagiarism policy (Enclosed after these instructions you will find the University rules of cheating and plagiarism).
Word count: 1600 words +/- 10%. Not adhering to specified word count could result in grade deduction from word count marks up to 5 marks.
Referencing: You are expected to use the Harvard referencing style for in-text referencing and list of reference at the end. Failing to do so could result grade deduction of referencing marks up to 10 marks. In addition, although text books assigned in the course may be used freely as references, you are required to use a minimum of 2 external sources. It is recommended that you use scholarly studies found in the E-library link at the LMS.
The University Rules about Plagiarism
The University Definitions of cheating and plagiarism
According to the University By-laws, “The following acts represent studies of cheating and plagiarism:
Verbatim copying of printed material and submitting them as part of TMAs without proper academic acknowledgement and documentation.
Verbatim copying of material from the Internet, including tables and graphics.
Copying other students’ notes or reports.
Using paid or unpaid material prepared for the student by individuals or firms.
Utilization of, or proceeding to utilize, contraband materials or devices in examinations.”
Examples of Plagiarism
Copying from a single or multiple sources, this is where the student uses one or more of the following as the basis for the whole, or a good part, of the assignment:
Published or unpublished books, studies or reports
The media (e.g.TV programmes, radio programmes or newspaper studies)
An essay from an essay bank
A piece of work previously submitted by another student
Copying from a text which is about to be submitted for the same assignment
For your arguments, remember to be logical, specific, practical, and justifiable.
Remember to cite any sources from which you retrieve information.
Read the following carefully, and write your answers directly on this document.
Write your answers in essay format. Answer all sub-questions that are bullet-pointed.
Question 1 – Industry Analysis (30 points out of 150 points)
It has been announced that a 25% tariff on imports of steel will continue from the previous Presidential administration, arguing that the tariff will protect the U.S. steel industry and ensure the competitiveness of steel manufacturing companies in the U.S. (refer to any article on the web, with the keyword: “Section 232”). Do you agree with the argument that the U.S. steel manufacturers will be able to maintain its competitiveness by the tariff? Pick one of the two options (Q1a or Q1b):
Q1a: If you do agree with the above argument:
Explain why you agree, with supporting evidence. In addition, explain your argument with the opposing argument (“do not agree”) in mind.
Pick a U.S. company in another industry that is related to the steel manufacturing industry (competitor, buyer or supplier of the steel manufacturing industry, or any other company in another industry) that you believe will be negatively impacted by the tariff, and explain why (elaborate and show evidence). Given that the company (outside of the steel manufacturing industry) might be negatively impacted by the tariff, what would be a strategic option for the company to become competitive? Use either the 5 Forces model or VRIO model to support your argument, using evidence.
Q1b: If you don’t agree with the argument, implying that U.S. steel manufacturers will not be able to maintain its competitiveness by the tariff:
Explain why you don’t agree with the argument, with supporting evidence. In addition, explain your argument with the opposing argument (“do agree”) in mind.
Pick a U.S. steel manufacturer, and explain how the company might increase and sustain its competitiveness. Write an analysis, using either the 5 Forces model (full analysis of the industry indicating all of the 5 forces) or VRIO model (full analysis of a resource/capability using the indicators – change of revenue/cost for V, providing a sense of R, using first-mover advantage, path dependence, social complexity, causal ambiguity, patents for I, and reporting/control/compensation for O) to support your argument, using evidence.
Question 2 – Disruptive Innovation (30 points out of 150 points)
Refer to the graph above.
Depict the industry of your Business Project (not the Harvard Business case) company in terms of the following aspects:
What are the major performance metrics of production (what consumers look for in a product or service in terms of technology and innovation, not outcome metrics such as ROI, EPS, price, cost, revenue or sales, market share, growth rate, productivity, number of clients, customer satisfaction, subscriptions, etc.) of the major goods and services of the industry?
What are examples of sustaining innovations in the history of the industry?
Were there disruptive innovations in the industry? If so, explain why they were “disruptive,” based on Christensen’s logic (e.g. overshooting, coming from below, asymmetry of motivation to compete) Support your argument with evidence.
What would be a good strategy to either prevent disruptive innovation of your competitors, or creating a disruptive innovation, based on your analysis of the three conditions of disruptive innovation (overshooting, coming from below, asymmetry of motivation to compete)? Why? Support your argument with evidence.
Please take note that “investing in R&D” or “investing in marketing” is not in and of itself “strategy.” It is a step, or at best, a way to increase operational efficiency. Remember that strategy is a company’s unique approach of doing things that would be hard for competitors to imitate.
Also, note that a general answer in the lines of “focusing on innovation” is tautological. It is the same as saying “you need to try to be good to be good.” Provide a tangible strategy while not focusing on operational efficiency.
Question 3 – Christian Application: choose one of the questions (Q3a, Q3b, Q3c) below and answer all bullet points in essay format. (30 points out of 150 points)
Q3a Everlywell business case: Internal Analysis week
The Everlywell case from our readings describes an enterprise that addresses issues of human flourishing through their business. Can you think of a Biblical narrative (and example) of a manager, organization, or institution that focuses on human flourishing or the common good?
It is well known that in many cases, firms that are focused on meeting double-, triple-, multiple- bottom lines (e.g., profitability and sustainability) face a huge challenge since they need to redistribute their investment to multiple facets. In these situations, can the Biblical narrative you refer to (above) be applied? If so, how does the narrative inform us of firms addressing the challenges?
Q3b Strategic alliances
Through many Biblical examples, the Christian narrative relates justice to issues of poverty and power imbalance. If an alliance partners possesses or exerts more “power” in the alliance relationship, should there be a boundary, limitation, or threshold of any power imbalance, especially when one party is the “larger” company? Why or why not?
With regard to power, justice, and poverty, what Biblical concepts might be coherent with business concepts in order for us to argue that partners should cultivate their relationships in alliances rather than simply viewing them as contracts?
Q3c Vertical Integration
A common concern, and even fear, during an acquisition (company purchasing another company) as a vertical integration strategy is the elimination of jobs of the acquired (or even acquiring) company. As a company, if you are making a strategic move that will significantly put people out of work, should you feel responsible for the employees that are laid-off? How and why?
What Christian (or Biblical) narratives touch upon this phenomenon, and if you were the employee of an acquired company to be laid-off, what would be your argument toward the acquiring company?
You will need to show good scholarship by elevating your work to the next level. This is done by going beyond simple comparisons and creating a comparative and contrastive analysis of the topics in each case as defined in the rubric.
* Use subheadings so I can see where are addressing each element of the rubric.
Before submitting your Assessment, carefully review the rubric. This is the same rubric I will use to evaluate your submissions and it provides detailed criteria describing how to achieve or master the Competency. Many students find that understanding the requirements of the Assessment and the rubric criteria help them direct their focus and use their time most productively.
Read Each Case
Partners Healthcare System (PHS) Case
WestJet Airlines Case Study
Pinnacle West Case
After reading the Partners Healthcare Case
Identify key activities and best practices for implementing and managing business information systems based on the “Partners Healthcare System Case.”
Identify and explain three to five important risks encountered in implementing business information systems for the “Partners Healthcare System Case.”
Identify and explain the use of data resources, processes, and storage systems in the “Partners Healthcare System Case.”
Select a resource that the business in the “Partners Healthcare System Case” should implement and explain how the company will benefit from this implementation. Identify three benefits and three risks to the business involved with implementing this resource.
Should the company in the “Partners Healthcare System Case” implement cloud-based data storage? Defend your position.
After Reading the WestJet Airlines Case
Describe the aspects of the WestJet IT situation that the CIO assessed to respond to the CEO’s concerns as she evaluated whether or not the company had an adequate IT infrastructure. Explain the importance of these aspects.
Summarize and critique Smith’s assessment and offer evidence and arguments that major changes in IT at WestJet were essential and that Smith’s governance model would enable WestJet to achieve its strategic goal.
After Reading the Pinnacle West Case
Create a PowerPoint presentation containing 5–7 slides with detailed supportive speaker notes. The first slide must present a 3- to 5-point summary of what happens in the “Pinnacle West Case.” The remaining slides must:
Explain the relationship between the organizational structure and business information systems.
Outline the supporting reasons for aligning information systems and business processes.
Evaluate their applicability at Pinnacle West.
Provide a description of the approaches required to implement a process-oriented culture at Pinnacle West
Quality Management Tools and Techniques: Quality Function Deployment
This assignment is primarily aligned with S1 and AR1 of the learning outcomes of the course:
S1 Demonstrate the ability to utilize quality tools learnt in place of work, with examples of practical implementation in public, service and industrial applications).
AR1 Understand the scope of implementation and limitation of each tool and technique.
Select a service or product from following:
Service: Food Home Delivery
Product: Breakfast Cereal
Develop a House of Quality (HoQ) for it
Provide a similar level of detail as in in Figure below (about 6-10 customer attributes and 6-10 engineering/technical characteristics)
Provide some supporting text or annotations to explain the HoQ. For example, you will need to explain what the system is and who the customers are.
Further explanation on what to include in the project.
Explain what is QFD, (Quality Function Deployment)?
Quality function deployment (QFD) is a specialized method for making customer needs/wants important components of the design and production of the product or service. QFD is designed to help planners focus on characteristics of a new or existing product or service from the viewpoints of market segments, company, or technology-development needs. The technique yields charts and matrices. QFD helps transform customer needs (the voice of the customer into engineering characteristics (and appropriate test methods) for a product or service, prioritizing each product or service characteristic while simultaneously setting development targets for product or servic
2. Explain the WHATs in a QFD matrix.
The following are the WHATS in a QFD matrix:
Gathering Customer Needs Input: The premise of QFD is that before any product or service is designed, the producer should have a good understanding of his potential customers’ needs in order to improve the likelihood that the product or service will be a market success. That the producer should be aware of customer needs seems logical, but it sounds far easier than it is. Before the textbook rework is started, the QFD team must work diligently to deter- mine what potential customers would like to see in terms of attributes and features of the product and perhaps what they don’t like about our current product.
Refining the Customer Needs Input: The data must be sorted into a prioritized set of the most important customer needs. At this point we will call on some QFD Tools, the first of which is the Affinity Diagram. Refining a large collection of data into something that represents the essence of the VOC is done through the analysis techniques of the affinity diagram, and QFD team discussion.
Using the Affinity Diagram: Affinity diagrams are used most appropriately when the following conditions exist: When the issue in question is so complex and/or the known facts so disorganized that people can’t quite “get their arms around” the situation. When it is necessary to shake up the thought processes, get past ingrained paradigms, and get rid of mental bag- gage relating to past solutions that failed. When it is important to build a consensus for a pro- posed solution.
Using the Tree Diagram: The next tool to be used is the Tree Diagram. Tree diagrams can be used for countless purposes. It will be used here simply to refine the affinity diagram results to make the list the customer needs, or WHATs that will be placed in the HOQ.
Although a tree diagram could go all the way down into the nuts and bolts of a new design, remember that the objective here is not to
design the new product, but to list the items to be addressed by the design team once the entire HOQ is completed.
Customer Importance: Also coming out of the analysis is the team’s best estimate of the relative importance of each listed customer need. Customer importance is usually based on a scale of 1 to 5 with 5 being the highest priority.
3. Explain the HOWs in a QFD matrix
The Technical Requirements room of the HOQ states how the company intends to respond to each of the Customer Needs. It is sometimes referred to as the voice of the company. We must state at the outset that the technical requirements are not the design specifications of the product or service. Rather, they are characteristics and features of a product that is perceived as meeting the customer needs. They are measurable in terms of satisfactory achievement. Some may be measured by weight, strength, speed, and so on. Others by a simple yes or no, for example a desired feature, appearance, test, or material is or is not incorporated. The other side of the coin is that the technical requirements must not be limiting, but must be flexible enough to allow the company to consider every creative possibility in its attempts to satisfy the need. The technical requirements are generated by the QFD team through
discussion and consultation with the Customer Needs and Planning matrices used as guidance. The team may use affinity or tree diagrams to develop, sort, and rank the requirements, similar to the Customer Needs development process. The difference here is that the input is from within the company rather than from external customers.
4. Explain the 1, or 3, or 9 interrelationship values in a QFD matrix
Now that we have the QFD team’s technical requirements (HOWs) in the HOQ, the next step is to examine how they relate to the WHATs of the Customer Needs. The results will be shown in the Interrelationships matrix, which links the HOWs and the WHATs. At each intersection cell of the inter- relationship matrix the team must assess the degree of relationship between the WHAT and the corresponding HOW. This is usually done using scales of significance of 1 to 5 or 1 to 9, with the higher number indicating a stronger relationship. Sometimes these numbers are entered, but often symbols are used
Sensors are sophisticated devices that are used to detect and respond to electrical or optical signals. (Engineersgarage.com). They are used to convert the measure of physical aspects into a signal that can be measured electrically. They are used in the healthcare industry, the military, cars, wearable technology, cell phones, and so on. The sensor industry is expected to grow to $162 billion in 2019. (TechRepublic, 2016).
Sensor technology is constantly evolving and is one of the fastest growing industries there is, as well as the most profitable. A common goal for sensors is for cutting edge technology to deliver improved functionality through the sensor. Whether this is optical sensors used by the military to detect threats, motion sensors used in a cars brakes to prevent an accident, or an image sensor used in a camera. Another common desire when it comes to sensors is the ability to make them smaller, lower costing, with better wireless connectivity. (Grand View Research).
Bosch Sensortec is one of the biggest sensor companies there is. They have been producing sensors for years and are now the leading provider of MEMS-based sensors in the consumer electronics market. They are also making sensors and products for wearable technology. Bosch also produces motion sensors. More than 4 million MEMS sensors per day are shipped from their facility in Germany. They produce sensors for everything from cars to cell phones. (Cision, 2015).
A few more major players operating in the industrial sensors market are Rockwell Automation (US), Honeywell (US), Amphenol Corporation (US), Texas Instruments (US), Panasonic (Japan), STMicroelectronics (Switzerland), First Sensor (Germany), and Siemens (Germany). Rockwell delivers a wide range of solutions and services for applications such as food & beverages, life sciences, oil & gas, mining, cement, metals, pulp & paper, and water & wastewater. The company offers start-to-end industrial services to its end users. The available solutions offer the company an advantage over its competitors for increased growth. The company adopts both organic and inorganic growth strategies. In the last 3 years, Rockwell Automation offered 2 products related to the industrial sensors segment. (Markets and Markets)
By the year 2023, the sensor market is on path to be a 241-billion-dollar industry. The different market segments within the sensor industry is divided by the type of sensor, the technology used, the industry they are used for, and geography. There has been a recent surge in Research & Development into sensors from some very large corporations such as STMicroelectronics, Qualcomm Technologies, Inc., and Sony. The interest from these companies will lead to sensors improvement in both quality and efficiency. (Allied Market Research).
Some obvious strengths of these companies are the very large amount of resources they have. The large corporations who make millions of sales per day have more money to invest into their products. They have the manpower to continue to research the latest and greatest technology for their sensors. This also includes the ability to use the most efficient technology to make their sensors with a quick turnaround time. They also have the means to advertise as much as they need to in order to drive up product awareness. One weakness is the fact that there are so many of these large corporations wanting to produce the latest and greatest sensor. Having so many competitors will possibly drive down the price, which would be beneficial to the consumer, but not to their profit margins.
One thing is for certain, sensors are here to stay. The sensor industry is one of the fastest growing markets and they are only going to get bigger and more profitable. Consumers are using sensors in a wide variety of products from their cars and phones, to their wearable technology. There is also a huge trend in converting your home into a smart home which is made possible with the use of sensors. The possibilities are endless with sensors.
Communication is key to success. Creative input is encouraged from every team member on the project. It’s very important for a team to define and delegate goals and stick to them, knowing everyone’s part and responsibilities. Ineffective communication has proven to be a barrier that many teams face within a group. The inability to converse in a language that is not understood by both the sender and receiver seems to be the greatest barrier to effective communication.
Team Andrews has had its downfalls within the first weeks. With so many different things going on with each one of us, including the fact that Capsim is new to all, has caused some setbacks, but nothing that the team can’t handle. We are getting to know each other and even though we are in different time zones and have different schedules, we are coming together focusing on our assignments and simulations. We try to get on it by the beginning of the week, that way we know what we need to do individually and have plenty of time to achieve. We have been in contact mostly by text and email.
Like any business, for it to be successful, all departments have to work together. The same concept goes for teamwork. By the same token, our team seems to work in concert. We often contribute equally on given assignments. Thus far, our assignments have never been later. Each week we each take turns on uploading the decisions, but we can’t seem to pass a certain point. As for how or what we can improve, I would suggest that as individuals we must each continue to watch videos and practice and hopefully, we’ll get better at Capsim. Otherwise, from that, nothing else needs improvement.
As the weeks go by, the team has a better grasp of the simulations, which we all agree that was the most confusing part of the Team Project. We are communicating more often now that we better understand what the goal is.
The company immediately decided to change its strategy after the mistakes made in 2019. The company performed production audits and realized that there was plant capacity which was unnecessarily left. This analysis led the company to create a new strategy in 2020. Before transitioning to a new strategy, the company was struggling with profits, inventory, contribution margins, and other ratios. In order to recover quickly and perform better, the company decided to sell its existing plant capacity. As the transition took place, the strategic move resulted in improvements in net profits, ROE, ROS, ROA and performed well in other categories. We are expecting the same result in 2021. We also initiated the production of a new product which we expect to perform well in the high-tech market. This will allow the company to designate a product for each low and high-tech companies, improving profits, and market shares. This strategy was able to help the company recover faster; the company knew that they immediately needed to select a permanent strategy in order to improve company’s performance consistently.
The company had to take a $119,748 worth emergency loan in order to facilitate company’s actions. After carefully going through all available numbers, the company realized that they made two wrong decisions. Those two wrong decisions are as follows:
Company’s pricing strategy: After going through the prices of the competitors, the company realized that the company has priced its products incorrectly. That is one of the major reasons behind company’s low contribution margin (products are less profitable).
Inventory Management: The company forecasted for more sales than occurred, leading to the product’s inventory to build. Excess inventory must be stored, where it remains in the warehouse, instead of being purchased by customers.
The emergency loan was caused by excess inventory in which we had adjusted selling off this inventory We must account for inventory carrying over when setting our production schedule. Our priority should be to try and sell off excess inventory of the product where possible. Regardless of the cause, we kept a close eye on closing cash positions. Projected closing cash positions is a great indicator of emergency loans, but they depend on how accurately we have forecasted. In most cases, forecasting is an extremely difficult task. So, having a small buffer of cash can help avoid future emergency loans.
The company also has cash from Current Debt Borrowing, which means it is a short-term debt. The company is making enough profits to pay off this debt in one payment. At the same time, using these debts have helped increase our net income in comparison to Chester, Erie, and Baldwin. Making Digby our most high-ranking sales position coming in with $224,564 of net income. Chester has sales of common stock of $2,000 but Digby has the upper hand with $3,600 while the rest of the teams are at $0. The long-term debt that has been issued is under Digby for about $6,163 and another $3,000 on Chester, which will retire in the next round, hoping not to borrow Emergency Loan money.
Overall the report so far is as follows.
For sales: The industry average for Sales was $122,640. 4 out of 6 teams earned stars. The top Sales performer was Digby: $224,564. The bottom Sales performer was Ferris: $18,312.
Team Andrews sales were $105,526
Profit: The industry average for Profit was $21,763. 5 out of 6 teams earned stars. The top Profit performer was Digby: $42,883. The bottom Profit performer was Ferris: ($51).
Team Andrews Profits were $23,268
Contribution Margin: The industry average for Contribution Margin was 35.6%. 3 out of 6 teams earned stars. The top Contribution Margin performer was Digby: 43.0%. The bottom Contribution Margin performer was Ferris: 17.4%.
Team Andrews Contributions were 40.78%
Stock Price: The industry average for Stock Price was $88.22. 5 out of 6 teams earned stars. The top Stock Price performer was Digby: $135.87 The bottom Stock Price performer was Ferris: $27.78. Team Andrews Stock Price was $63.97
Emergency Loans: Team Andrews had Emergency Loans for:
Year 5: $118,328
Year 6: $50,328
Year 7: $31,181
With a gross total of $119,748 at the end of the simulation.
The team has been working hard in trying to change our strategy to have better outcomes and acquiring better numbers in upcoming rounds. The company is already seeing positive changes and progress.
What must be updated since you originally created that document? What have you learned?
There is not too much that team Andrews would change to achieve our deliverables of the project as well as our CAPSIM simulations. As stated in our team charter though, everyone has picked up additional tasks during that time and those that were occupied elsewhere have stepped up to do more than average work the following week. During our weekly meetings there is a great deal of discussions that take place allowing some to answer questions about why we are making the decisions we are for the company and then it is a group effort to answers those questions. Our overall project is progressing a bit slower than the simulations as we continue to struggle to find solid statistics for the sensors we discovered. We are all working to build that information for the end project.
We wanted to provide the sensor industry with premium products. Therefore, we wanted to create a brand focused on premium products by focusing to serve high tech customers. This means we would be creating 1 updated product at the end of each year. This was to meet high-tech customer demands. Also, our products must keep in pace with the market in order to capture the high-tech market segment. By playing around in the simulation we did not change our focus target segment, but we kept on playing with developing R&D, marketing, production as well as finances.
Porter’s Generic Strategy: Which strategy did your team choose initially, and how did it change as the course moved on?
We adapted Niche Differentiation strategy, which allowed us to particularly focus on High tech customers segment. This allowed us to gain a competitive edge by distinguishing our products to be most updates, fresh, high quality, high awareness, as well as high accessibility. We have developed our R&D such that we are able to come out with a new product at the end of each year, which helped keeping our design fresh and kept our customers excited in buying our products. We tried to focus more on reducing the size and improving performance so that we can perform well on the R&D of our products. We priced our products higher than average. We gradually kept increasing our prices when we came out with an updated product. We gradually changed the capacity with increasing demand during each of our competition rounds. We tried creating a brand with premium products and we are going to ace it.
Target Market: Which of the two market segments did your team choose initially, and what has happened since?
We did not try to focus more on being present on every segment. We tried to focus on High tech customer segment, which is very famous for electronic industry. Since we are focused on creating sensors, we focused and targeted high-tech customers. High tech customer segment demands products with high quality design and must be produced new and fresh every year and this is how we choose on selling to high tech customers. We priced our products higher than average, but our targeted segment was ready to pay us the price for each updated product we produced. To meet their expectations, we spent more on promotions and sales budgets and increased our chances on automation by lowering our production costs.
Project Plan: How did your team do hit the milestones? What had to be added or should have been added? Did any specific project management skills help in this area?
Our team is performing and coordinating well enough for us to get through the class simulations as well as the course project work. We designed our communication plan and worked on our project more wisely. These steps would help build project proposals, initial request analysis that will determine our business’ team meetings, which helped the team keep updated through group texting as well as WebEx meetings.
Project management is all about working in teams. Our team working skills are above and beyond everyone, which will help us win the competition rounds as well as ace the course.
Conflict Management Plan: Give examples of how this worked for your team.
The team continues to impress me with their dedication and problem-solving skills. Francis is an excellent organizer and communicator, Paul is always willing to take on additional tasks, and Marc is very positive and enthusiastic that he motivates the whole team.
Member misses a meeting – Take minutes. documented for their review. We did this for our team members in case they missed a meeting.
Member does not complete work on time – Other members takes on their task, while the member missing will take on additional tasks the following week.
Member has an unavoidable emergency that delays work- The remaining members team up to complete the task.
How will you resolve minor disagreements? We set up a team meeting to discuss and resolve any conflicts.
Team Rules: Share the team rules and explain how they helped your team.
We decided to do the simulations in our team meetings, which helped us perform well and bring solutions for doubts we had on the simulations as well as competition rounds.
We focused more on weekly communication so that none of our team members is held back in any portion of the course, whether it be discussion threads, simulations, project milestones, or competition rounds.
Team leader monitors our individual performances and notifies each other with any issues or concerns, helping us win as a team. This is how we focus in succeeding as a team in class.
As stated in our team charter, others have picked up additional tasks during that time and those that were occupied elsewhere have stepped up to do more than average work the following week.
Ethics: How has your team adhered to ethical principles?
As stated in our team charter, our team is committed to upholding ethical business practices and operating with integrity when it comes to the work submitted for this course by the group. Responsibilities will be divided equally; we will support each other when necessary. Communication will be effective, efficient and constructive, while being delivered in a positive manner. All work submitted will be original unless properly cited. Decisions will be made with equal input and in a voting manner, if an immediate decision needs to be made, the group leader will intersect the discussion to complete.
Andrews will use the SWOT Model to analyze the company strategies.
Cost leadership on traditional and low-end market segments.
As determined by the market structure, the two market segments taking up the most percentage of market shares are traditional and low-end. Thus, in the first and second year, Andrews’ focus is on the fast penetration of such segments through lowering down variable costs and increasing degree of automation. The cost-focusing strategy allows Andrews to capture second most market shares in the traditional and low-end markets, which in turn enables us to have more capital to invest in R&D in high-end, and performance segments in future years when the growth rate for these two segments advances.
Demand forecasting and swift adjustment to capacity and production
Capacity has come to Andrews notice that demand forecasting could help the company produce the accurate number of products to satisfy demands from different market segments, so managers can have the ability to capture growth opportunities with enough inventory. Demand forecasting is also key to ensure smooth cash flow as Andrews’ can unlock cash that would be otherwise tied up in excess stock resulting from overproduction. Another critical focus is on Andrews’ capability to adjust swiftly to customer demand. As the market share across different segments are not fixed, the total industry unit demands are changing from year to year. Hence, keeping a close watch on the market condition and having the ability to change swiftly, enable the company to adjust capacity and production levels promptly to better serve customer demand.
Management on ROE and ROA
Return on equity (ROE) and return on asset (ROA) are two major indicators to measure company’s profitability and efficiency in using assets. In order to improve both ROE and ROA, we focus on improving sales margins, offering dividends to shareholders, increasing leverage for the company. The benefits of offering dividends is to boost shareholders’ trust and confidence, which in turn increases share value and market capitalization, as well as to serve as a means to distribute the idle cash to maximize ROE and ROA.
We also have tight control on taking loans, especially to the issuance of emergency loans, which could have a negative impact on our cash flow. Our strategy is to take long-term loans in the first few rounds to ensure enough working capital for expanding capacity, automation and raising the sales budget to increase market recognition from potential consumers. Yet we carefully measure the leverage ratio to ensure our company is not over leveraged and thus becomes too risky to meet immediate financial obligations.
Product differentiation and diversification
The high-end and size market segments become growing more prominent in the market structure. Instead of concentrating heavily on price, the underlying factors contributing to the consumers’ buying criteria include product positioning and reliability. Hence, the practice of continuing one-size-for-all undifferentiated strategy and product development is unfit for us to capture the new demands from these nonprice-sensitive segments. Against this background, we adopt product differentiation strategy in a bid to create differentiated products to target at different market segments shaped by distinctive consumer requirements.
Additionally, we strive to diversify our products within the same market segment in order to maximize market share and capture consumers by brand diversification. The most noticeable advantage of having multiple brands within the same segment as it can increase brand exposure and appeal to different buying motives.
Porter’s Five Forces Model
Team Andrews customized version of Porter’s Five Forces model (MindTools, n.d.) with significant application for the purpose of internal competition analysis. However, the sensor industry is an oligopolistic area, industry monopoly, which means that there are no new entrants and external replacements that may threaten Andrew. On the other hand, every company has their own plan of R&D, which means each product has their own characteristic in different companies. This will indicate the bargaining power of the suppliers is low. Due to the characteristic of high-end production, the power of customers is higher than others. Additionally, the internal rivals of threat are high.
What strategic planning recommendations would you make and why?
For the strategic plan, the perfect recommendations are likely required to be made for deciding the specific annual objectives and policies. The companies follow several paths to formulate better strategies so that they can sustain economically longer. The organization is required to set correct objectives for interpreting organizational goals. The objective is the sequential map that is necessary to be correctly decided, as based on the objectives the strategies of work conduction are depending. Therefore, to lead the strategic process for any plan it is necessary to define the objective correctly.
These policies are also an important part of the organization’s strategic plan as the policies are the companies’ guidelines or it can be said rules and regulations that hold the organization to maintain their portfolio to work ethically. To complete the strategic plan, policies boost the organization to maintain a working framework and keep the correct track of work that helps the organization to obtain the positive outcome in terms of growth and development.
Strategy reviews and evaluations are an important process for measuring the correct formulation in the strategic plan. Suppose an organization is working on a defined strategic plan, through its formulation the organization is leading the day to day processes. It is necessary to make a review on the process as the strategy may require any alterations in its design so that a better structure can be implemented. Monitoring or reviewing the strategy may lead to obtaining any flaws that may cause threats to the organization in the future. Therefore, reviewing the strategy that is working on the organizational process is recommended.
The strategic plans of evaluations are necessary to ease future welcoming of critical moments in the organization. These evaluations are based on the following aspects:
Achieved goals as per the organizational needs
Fulfillment of the customer’s needs
Updated the standard as per the market innovation
Monitoring competitors perception value in the market
Observing the growing capabilities and the decline rate
The above evaluations listed are necessary for the correct enabling of strategic plans so the process and work standards can be maintained successfully.