What Business Goals Were Set By Knudstorap

1) How did information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?

With a wide variety of vehicles and manufacturers due to low switching costs, the bargaining power of customers is very high in the automobile industry. Also foreign brands are selling vehicles in the Indian markets, adding to the bargaining power of customers in this industry. Thus the value created by the firm lies in adding differentiating features by innovating and increasing the customer’s willingness to pay while reducing the supplier’s opportunity cost.

Business Strategic Objectives: Under the Administration section of the case study, the three new strategies are underlined. List them with an elaboration on each. Add one not listed/related to the three and discuss it. There are also three federal and state mandates listed which can be considered and incorporated as your new strategic objective. Do not incorporate old technology such as the use of cell phones and fax machines. Be innovative and consider the use

Peripheral changes were seen as a type of quick-fix solution to a problem vice development of business strategy and well-planned implementation, this nearly guaranteed their failure. When any organization is in danger of failing, short-term solutions that have the biggest impact are initiated first and sometimes without analysis, planning, or communication. Regardless of the type of change an organization requires to remain successful, they must make sure that the organizational design is aligned with both organizational strategy and strategic plans.

There are many barriers to new organizations in the toy industry, making the threat of new entrants low. Lego and other big toy companies like Mattel benefit from economies of scale. An economy of scale is achieved by lower costs through large volume production (Textbook glossary). Economies of scale can occur in many departments within the organization including production, marketing, research and development, and finance. Some manufacturing of Lego products was shifted to Central Europe and Mexico in order to benefit from lower wages and to shorten product supply chains (p. 13 of case). The management of Lego additionally holds expertise on production, distribution and customer needs; which are absent in a new organization. To enter the toy sector a potential entrant needs to calculate the start of production at a level that will give a competitive position and production costs lower than the market.

Q.1: How did the information systems and the organization design changes implemented by knudstorp align with the changes in business strategy?

By reducing the introduction of new products, cost such as product development, R&D and advertising can be avoided.

5. Is change needed in its long-term direction? its objectives? strategy? its approach to strategy

1. What was the organization design that was in place at McKinsey and what did they want to change? Did the change in design complement their strategy? What were the key barriers to implementing change?

1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?

Concept forces the company to be more innovative since more people buy their products because of its beauty and symbols of their lifestyle. Expanding to service areas increase its innovation because CDS can learn from design houses collaborated and from customer’s requirements. Design house also expect full service, including fast and tailored distribution service from CDS; thus, it forces CDS to improve its availability. Quality of new products and services can partly be guaranteed due to high quality moulds ordered from

A product-oriented company mainly focuses its efforts on the strength of products that company aims to sell. They simply put their products on top priority that are technically advanced, well-engineered and high standard. As long as the product was of a high quality, consumer would definitely make a purchase and consume it. This product-oriented approach will press the stress on research and development department’s shoulders, as they have to invest their time and effort on revolution during the life cycle of product in order to keep balance and maintain the attention of potential consumers for that product. Besides improving the quality of product, reducing cost of it is also considered equally as the factor in the fight to satisfy and attract customers. There are many advantages of product-oriented company in term of the quality perspective and the technological investment perspective. The first advantage of product-oriented method is that the company doesn’t have to

EPD is struggling to face a transformation of business model. They should change their business from product oriented to customer oriented because the key success factor of the component market is not technological advantage anymore. In the instable component market, it is needed to have market-oriented people and built a close communication among teams in order to introduce new product into market quickly. They also don’t have enough marketing staff and their evaluation

The market introduction project of a new product is as important as its design project. When a company is budgeting for a new product project, it is fundamental to include the marketing expenses in the initial budget, thus, the company will not have future surprises. Dr. Levoy, in his article, The difference between efficiency and effectiveness, he explains that it may be a waste of time if a company has an entirely efficient manufacturing process, however, at the end is not effective, or does not achieve its objective, such as bringing more clients or selling a new product, (Levoy, B., 2011). This is the importance of a marketing project, the marketing professionals can sell ideas, products, services, anything that is marketable, and if a company is launching a product I believe that the goal is to reach the customers. Therefore, to understand well our plan for Fiat Chrysler and the launching of the new Jeep Wrangler Pickup Truck, we design the following schema to explain the plan details: 1. A fast explanation of the actual market and some challenges; 2. Explanation of the nature of the new product to be launched and its industry; 3. The marketing project to introduce the new product to the customers; 4. Explanation of how we will use the Total Quality Management - TQM tools to measure and control the marketing plan execution; 5. How FCA already applies TQM philosophy to achieve client satisfaction and how we can expand the use of TQM

In order to match consumers’ want, BAL reorganized its structure to obtain better cross-functional cooperation among Marketing, R&D and Production departments. New products were introduced periodically and spare parts were sold nation-wide with low cost, which reinforced BAL’s competitiveness. Beside strengthening cost advantage, they established a technology acquisition agreement with Orbital, which provided solutions to improve fuel efficiency and decrease emission levels.