Scenario: John is operating a business in the Caribbean in the manufacturing sector. Over the years the business has grown and become profitable and as a result the structure of the organization must reflect the changing business needs. He started off with just an accountant and general administrative department. Due to the growth of the organization, there is now a need for a marketing and sales department, IT department, production department, risk department, operations department, human resource department, finance department, research and development department and health and safety department. John is considering implementing a functional structure. This way specialist departments are able to focus on their tasks and meet their objectives. John is also concerned about his value chain and would like further insight on this grey area in his business function. Since the business is doing well locally, John is considering expanding to parts of the United Kingdom, Canada and Asia. As such, he is considering the development of a global strategy. John understands that to shape the organization’s overall strategy there are various strategic drivers both internal and external which must be considered and wants expert advice on these drivers relevant to his business. Though the market is competitive John’s company is known to be innovative. He has also demonstrated a care for the environment which has added value to his organization and his success. As a Strategic Management Consultant: 1. Explain to John what value chain analysis is. What is the relevance of this to the manufacturing sector? Discuss four (4) major cost drivers that would play a role in determining John’s company’s costs in each activity segment of the value chain. Make relevant links to manufacturing firms in the Caribbean. 2.As discussed in the course, state three (3) benefits and three (3) drawbacks of the global strategy if John is to pursue this.
Scenario:
John is operating a business in the Caribbean in the manufacturing sector. Over the years the business has grown and become profitable and as a result the structure of the organization must reflect the changing business needs. He started off with just an accountant and general administrative department. Due to the growth of the organization, there is now a need for a marketing and sales department, IT department, production department, risk department, operations department, human resource department, finance department, research and development department and health and safety department. John is considering implementing a functional structure. This way specialist departments are able to focus on their tasks and meet their objectives. John is also concerned about his value chain and would like further insight on this grey area in his business function. Since the business is doing well locally, John is considering expanding to parts of the United Kingdom, Canada and Asia. As such, he is considering the development of a global strategy. John understands that to shape the organization’s overall strategy there are various strategic drivers both internal and external which must be considered and wants expert advice on these drivers relevant to his business. Though the market is competitive John’s company is known to be innovative. He has also demonstrated a care for the environment which has added value to his organization and his success. As a Strategic Management Consultant:
1. Explain to John what value chain analysis is. What is the relevance of this to the manufacturing sector? Discuss four (4) major cost drivers that would play a role in determining John’s company’s costs in each activity segment of the value chain. Make relevant links to manufacturing firms in the Caribbean.
2.As discussed in the course, state three (3) benefits and three (3) drawbacks of the global strategy if John is to pursue this.
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Discuss Gold and Campbell's five tests based on good general design principles and how this will influence the structures discussed in 1.
by Bartleby ExpertWhat are the drawbacks of global strategy if John is to pursue
Reduction in adaption to cultural impacts on customer behaviour
Lower responsiveness and flexibility to address customer needs
Product standardisation may lead to unmet needs and unsatisfied customers
by Bartleby ExpertWhat are the benefits of global strategy if John is to pursue
Cost reduction
Improved Quality of Products and Programs
Enhanced Customer Perspective
by Bartleby ExpertDiscuss four (4) major cost drivers that would play a role in determining John’s company’s costs in each activity segment of the value chain if he used economies of scale, learning and experience curve effects, the percentage of capacity utilisation and the benefits of vertical integration verus outsourcing. Make relevant links to manufacturing firms in the Caribbean.
by Bartleby Expert