Lecture 06 - Recitation

Question 1

Congruence Model
(Xerox - documentation)
In the early 1990s, the organizational structure resembled that of the Soviet Union, with a pyramid-like hierarchy.

However, the new CEO embarked on a mission to envision strategies for restructuring the business.

• Problems (2)
• Solutions (2)

Answer 1

Problems

• Bureaucracy complexity hindering managers from making key decisions.
• Excessive internal focus
  at the expense of customer demand.

Solutions
Comprehensive transformation touching all aspects: work, structure, culture, and personnel. Dual-focused approach targeting

• social
  (individual & cultural)
• structural
  (strategy & work performance) enhancements.

Question 2

PEST(LE) analysis:
TESCO - supermarket chain (8)

Answer 2

Political:
Governments encourage domestic job creation in retail.

Economic:
Declining disposable income shifts focus to value brands.

Social:
UK consumers favor bulk & one-stop shopping, increasing non-food item sales.

Technological:
Online shopping with home delivery and self-checkout.

Legal:
FRC proposes a Code of Practice banning certain practices, like price changes without notice.

Question 3

SWOT Analysis
(Amazon GO)

(4)

Answer 3

Question 4

Roche - largest pharmaceutical Company

• Strategic goals
  (vision, mission, objective)
• Stakeholder

(4)

Answer 4

Strategic goals

• Vision → Improve and save lives.
• Mission → Doing now what patients need next.
• Strategic objectives → Continuous growth, being a trustworthy partner.

Stakeholder
Published their key stakeholders (next to their shareholders)

• Patients, caregivers, and patient organizations
• Healthcare professionals
• scientific community
• etc

Question 5

Business-Level Strategie
Swatch Group

• Problems (3)
• Solutions (3)

Answer 5

Problems:
1970s decline, mainly due to …

• quartz watch invention,
• Swiss companies’ self-satisfaction,
• Chinese competition.

Solutions:

• Shared production bases
  for cost efficiencies.
• Utilized (Nutzung)
  Swiss watch tradition
  for affordable, stylish products.
• Diversified into …
  Affordable vs. Expensive
  Sports vs. Refined categories.

Question 6

What can cause a strategy to fail? X

Answer 6

● Missing congruence and culture

Question 7

What are the three independent entities of the company (Bluesky holdings)? (3x2) X
What is the structure?

Answer 7

● Greenfields:
General contracting - design, development, and construction
(divisional)
● Redtail:
Maintenance and internal project
(regional)
● Yellowfin:
Servicing both previous companies
(Hybrid: Divisional and regional)

Question 8

How is blue sky holdings structured (rough)? (6) X

Answer 8

● PME = Project Management and Engineering
● GC = General Contracting
● DA = Design Authority

● CLSP = Strategic Purchasing
● CLTS = Transport Services
● CLSCM = Supply Chain Management

Question 9

What is the strategy and the steps of Greenfields Engineering and construction (roughly)? (2) X

Answer 9

● Strategy:
○ Growth and cost leadership
○ Expansion to achieve market dominance

● Steps: Developed external market of suppliers

Question 10

What is the strategy and the steps of Redtail Maintenance and Plant Ltd (roughly)? (2) X

Answer 10

● Strategy:
○ Niche Specialisation
○ Do nothing (muddling through)

● Steps taken: Reliance on specialized expertise

Question 11

What is the strategy and the steps of Yellowtail Construction Logistics Ltd (roughly)? (2) X

Answer 11

● Strategy:
○ Growth, Differentiation and Cost-Leadership
○ Forward integration (e.g., Warehousing)

● Steps taken: Defined transformation project: Pay-per-use of items

Question 12

Key Differences in Financial Metrics (3x2)

• Operating Income
  (Operating Profit)
• Net Profit
  (Net Income)
• EBITDA
  (Earnings Before Interest, Taxes, Depreciation, and Amortization)

Answer 12

Inclusion of Interest and Taxes:

• Operating Income excludes.
• Net Profit includes.
• EBITDA excludes.

Treatment of Depreciation and Amortization:

• Operating Income may or may not include.
• Net Profit includes.
• EBITDA excludes.