[15:07:16] Ysbq: SESSION 13 ----------------- PAST PAPERS JUNE-2009 Q1. and Q2. [15:07:38] Ysbq: 15 min Reading time for Q1.. Start now [15:07:50] yaroslava: ok [15:17:17] savvy2012: {Ysbq} Happy Birthday :D [15:17:37] Ysbq: {savvy2012} Thanks a lot [15:17:44] savvy2012: :) [15:18:36] yaroslava: {Ysbq} didn know it was your birthday...wish you more happy days...your present is to help you pass this exam. [15:19:02] Ysbq: {yaroslava} lolz thanks a lot no problem :D [15:27:03] Ysbq: Guys are u done reading [15:27:42] yaroslava: i need three more minutes please [15:27:49] Ysbq: ok [15:29:01] eoglasain: I arrived late, so don't wait on my account. Am fast reader, will catch up [15:29:31] Ysbq: {eoglasain} man please change ur font color , i am no superman [15:29:32] Ysbq: :D [15:29:50] eoglasain: sorry, just did. I couldnt read it either [15:29:51] Ysbq: {eoglasain} its fine we will start in couple of minutes [15:30:27] Ysbq: i want all guys to be ready for attempting the question [15:32:33] yaroslava: dont let me hold you [15:34:43] yaroslava: done [15:35:57] Ysbq: Ok guys lets start Part (a). [15:36:22] Ysbq: it is a 12 mark question on SWOT every body's favoruite [15:37:07] savvy2012: omg.. [15:37:10] Ysbq: we gottta analyse the current strategic position and i ask us to do in light of swot [15:37:21] savvy2012: lol i read wrong question. i read dec 09 :( [15:37:42] savvy2012: never mind. plese start i will catch up :) [15:38:44] Ysbq: its not that hard to attempt the best way to attempt this part is to diviide the answer into headings with reation to Strenghts Weakness oppoutunity and thrests [15:38:48] Ysbq: threats [15:38:48] yaroslava: SWOT analysis is useful if changed to TOWS on answering a question. one element should trigger the other. [15:39:26] Ysbq: {yaroslava} yeah sure but i think TOWS is much better used in options , what u say abt that [15:39:37] Ysbq: i meant strategic options [15:39:59] yaroslava: {Ysbq} yes [15:40:19] Ysbq: this question is more like ant strategic analysis [15:40:25] Ysbq: Strenghts??? [15:41:09] lotte77: the same management since 1990, technical know-how in supplying appropriate components [15:41:28] yaroslava: they are good in gree technology and have the core competences [15:41:36] Ysbq: yes, and big cash resources [15:41:40] lotte77: a good financial position, they have cash surplus [15:42:40] lotte77: they have a differentiation approach [15:42:45] eoglasain: 17m that they cant agree what to do with. Financially liquid, anyway. could also be a weakness though. Idle money [15:43:18] yaroslava: they have grown steadly in size over the years and that my mean EOS and scope [15:43:40] yaroslava: {eoglasain} strengths first [15:43:54] Ysbq: so we can say that greentech is financially sound company with growing customer base as seen from inflating revenues, this is based on specialised knowledge to manage and deliver environmental friendly components [15:44:09] lotte77: they have extensive hardware testing facilities [15:44:37] Ysbq: {lotte77} yeah so financially and techinically they are well to do [15:44:49] ms1689: high market share [15:45:27] Ysbq: {ms1689} where did u get that ? [15:45:59] Ysbq: {ms1689} ok i got it 70% usage in indysty [15:46:09] ms1689: the 70% of global industry use greenteck components [15:46:13] yaroslava: they want they computers to be extremely quiet and efficient and they have the skill set to do so, and hence polularity with the customers, we are not told much of the competition whci i think helps thier sthregth [15:47:05] Ysbq: {yaroslava} so we can say they have created a barrier for new entrants till now based on there core competnces and skill set [15:47:16] Ysbq: i guess all strenghts are done for now [15:47:25] Ysbq: any one else wanna add sth here [15:47:34] yaroslava: {Ysbq} why didn i say that yes of coz [15:48:45] yaroslava: did we say anything about thier sales figures over the three years? [15:49:11] Ysbq: yeah we did [15:49:40] Ysbq: i guess eog,, is up to sth [15:49:49] yaroslava: ok wot did we say? [15:50:21] eoglasain: yeah, all set [15:50:37] Ysbq: increasing revenue means the customer base is increasing [15:50:48] Ysbq: ok lets move on to Weaknesses [15:50:52] Ysbq: WEAKNESSES? [15:50:59] eoglasain: no manufacturing capability [15:51:04] Ysbq: good [15:51:12] Ysbq: so what does hat implies [15:51:25] Ysbq: {eoglasain} discuss it further [15:51:59] eoglasain: either unable to, of they have decided it is not part of their core competencies or business plan [15:52:29] yaroslava: that may mean high cost to pay suppliers who may charge a high price whenever they like as we are not told about the many suppliers in the industry [15:52:31] lotte77: they rely on suppliers, suppliers might be acquired by competition, organic growth would mean reduction of costs [15:52:49] yaroslava: {lotte77} yes [15:52:57] Ysbq: {lotte77} {yaroslava} yeah that is nicely described [15:53:01] ms1689: no plan ahead strategy in place as they dont know what to do with their cash [15:53:26] Ysbq: ok next weakness [15:53:50] lotte77: missing capability for development of products since they have the same management since 1990 [15:54:48] Ysbq: guys do they have R&D facilities as they should since they are operating in a highly changing industry [15:55:05] eoglasain: swim lane analysis has spotted poor design in processes which have recieved poor customer feedback [15:55:06] Ysbq: i guess that is one of the most imporatnt weakness [15:55:39] Ysbq: {eoglasain} yeah that is other weakness poor business process designs [15:55:49] Ysbq: and late deliveries [15:55:55] ms1689: poor customer feedback [15:56:04] Ysbq: yes [15:56:08] yaroslava: there is not sector avg or previous years to aid comparison or benchmarking thier perfomance for instance if thier PBIT was 10m in 2008 how do we konw if this has improved or will improve in the futuere? [15:56:36] lotte77: nope, they firstly had a B2B approach and then they started with B2C, which lead to a competition with their own commercial customers [15:56:53] Ysbq: they cab benchmark with sector [15:57:01] Ysbq: can [15:57:19] yaroslava: didn see the sector figures [15:57:29] Ysbq: like SCM can be benchmarked with other companies of trading sector [15:57:51] yaroslava: are we presented with them? [15:58:07] Ysbq: {yaroslava} but they commit a delivery date [15:58:11] ms1689: {lotte77} what is B2B and B2C [15:58:29] Ysbq: {ms1689} business to business and business to cutomer [15:58:36] lotte77: business to bussiness and business to customer [15:58:43] ms1689: THANKS [15:59:13] Ysbq: {yaroslava} so it think since they have outsourced the delivery they should meet the delivery targets [15:59:25] Ysbq: as they agree with the customers [15:59:32] Ysbq: do u agree [16:00:37] yaroslava: I meanrnt we dont know how they arrive at 10m PBIT and its hard to compare current and prev perfom on that note..thus a weakiness [16:00:50] lotte77: might be two problems: delay in delivery because of the supplier or delay because of the inside process [16:00:54] yaroslava: but i get your proint [16:01:07] Ysbq: {lotte77} yes [16:02:05] yaroslava: Poor customer feedback surely points a weakiness that may need fixing [16:02:13] ms1689: the customer is given the delivery date before the credit check and possibly could get rejected after the credit check [16:02:14] Ysbq: {yaroslava} so i think that we should compare it with last years as a benchmark, i think we should term that as a weakness as it would be hard to justify in exam scripts , rest is up to u [16:02:37] yaroslava: {Ysbq} cool [16:02:50] Ysbq: ok just summarizr the weaknesses .... all together [16:03:29] yaroslava: No manufacturing capabilities [16:03:41] yaroslava: reliance on one supplier [16:03:44] Ysbq: inapporpriate business processes, lack of manufactring facilities, lack of R&D , Pathetic Delivery times [16:04:11] ms1689: not efficient ordering process [16:04:35] yaroslava: Poor feedback on ordering of fully assembled green comps [16:04:51] yaroslava: to be fixed [16:04:58] Ysbq: Reliance on specilist supplier is a good one we can argue here that bargaining power of suppliers is high [16:05:11] Ysbq: so prices cannot be controlled [16:05:12] Ysbq: :D [16:05:38] Ysbq: Ok Lets move on [16:05:53] Ysbq: THREATS: [16:05:58] yaroslava: {Ysbq} true ans suggest that if they have a contract the supplier might have put high switching costs [16:07:08] lotte77: government agreed a preferential procurement policy for energy efficient computers [16:07:17] Ysbq: so i think that we can relate these elements to PORTERS FIve forces to supplement our answer [16:07:20] yaroslava: The ever increaing marketing costs could eat away revenues and reduce profitability in the longrun [16:07:39] lotte77: sorry [16:07:47] lotte77: I was thinking of opportunities [16:07:52] Ysbq: {lotte77} lolz [16:08:28] Ysbq: {yaroslava} ok [16:09:24] Ysbq: Threats are external.... any one with me on that [16:09:30] lotte77: there is nothing in the scenario about the competition, since the government encourages the energy efficient computers,, present competititors or new one might enter in the market [16:10:19] lotte77: reliance on suppliers [16:10:52] lotte77: i guess this is internal (reliance) [16:10:58] lotte77: not a threat [16:11:16] Ysbq: ok it is growing market so this means tht the profitability of sector would be high due to lack of companies hence we can argue that new entrants pose threat [16:11:28] yaroslava: If the cash surplus is used to fund the chosen option that means diverting funds from marketing to option three which may or may not be successful and therefore resulting in poor liquidity which is a signaling effect [16:12:34] ms1689: having a television program to decide what strategy to follow may lead to a competitor stealing their ideas? [16:13:13] Ysbq: {ms1689} i guess they not gonna tell the contrat terms with supplier in tele [16:13:49] Ysbq: {yaroslava} that is part (b0 [16:14:17] yaroslava: but it can be a threat [16:15:01] ms1689: greentech is a components manufacturing company so there is a possibility that upset customers may move to fully configured computers? [16:15:06] lotte77: if they need a television company to support them in fix their problems, that means that shareholders and stakeholders will not be so confident about the company's capability [16:15:35] lotte77: in fixing [16:15:55] yaroslava: {lotte77} {ms1689} i like [16:16:14] Ysbq: {yaroslava} {lotte77} {ms1689} ok guys i guess that we have ran out of finding more threat hence we are lingering around [16:16:27] Ysbq: lets move on to Oppoutunities [16:16:39] Ysbq: Oppoutunities? [16:17:19] lotte77: market expanding-fully assembled green computers [16:17:37] Ysbq: governement suppoort for green tech [16:17:41] yaroslava: Company doctor programme presents an opportunity in which Greenwich could showcase its competences [16:17:42] lotte77: expand product range, acquire the suppliers [16:17:57] savvy2012: to exoand into other sectors where quietness, low emmissions and recyclable technology are appreciated. [16:18:04] ms1689: They can improve their e-ternet system so customers can easily compose the components they want [16:18:05] savvy2012: expand [16:18:14] lotte77: differentian approach, being a supplier of green technology [16:19:21] yaroslava: Can even take over their specialist supplier{foward intergration} which will help reduce costs and ensure availablity of supplies [16:19:38] Ysbq: expansion , better operations of logistics and cutomer suppport to supplement cusotmer service [16:19:54] Ysbq: {yaroslava} back integration [16:20:15] yaroslava: {Ysbq} thank you, but you got the point [16:20:27] Ysbq: so they need to develop marrkets and find new customers [16:20:49] Ysbq: what abt targeting other than domestic markets [16:21:32] Ysbq: since they have huge cash resources they could venture were the they find oppourtunity [16:22:50] yaroslava: they have actually taken option three with viguor which shows thier confidnece in thier resources and competences to carry out market development and meintan a competetive edge [16:23:15] Ysbq: they can engage another delivery company to streamline their operations and reduce delays in delivery [16:23:41] Ysbq: ok i guess we are done with question 1 a. [16:23:48] Ysbq: lets move on to Part b. [16:24:12] Ysbq: It is a 20 mark question [16:24:31] ms1689: {Ysbq} big q/n [16:24:41] yaroslava: however its woth mentioning that the webservice is still underdevelopment and competitors may use a watch-and-see attutude with the intention of coming in when the industry is viable [16:24:56] yaroslava: ok [16:24:59] Ysbq: yesh [16:25:27] Ysbq: so we gotta discuss all the three options in details on the ansoff matrix [16:26:39] yaroslava: and we can use the J&S SFA test here as well becoz we a evaluating options [16:26:58] Ysbq: so here how we gonna do the discussion , first we gonna list that what resources it requires and then we gonna discuss it SFA and evaluate it crtically [16:27:11] yaroslava: the word justification sways me that way [16:27:36] Ysbq: yeah lets start with market penetration [16:28:10] ms1689: {yaroslava} we have to talk in favour of their choice after the discussion of the options [16:28:27] yaroslava: {ms1689} ok [16:29:24] Ysbq: ok Lewis _ Read people suggest that it is STAR SBU / business since it has high market share and high market growth [16:29:30] Ysbq: any one differs with me [16:29:49] ms1689: Lewis Reid's proposal seems good point as they have already proved increasing turnover and increasing customer base. So, if they are already doing well, why change. [16:30:20] savvy2012: {Ysbq} isnt a Star when there is already no more room to grow? [16:30:40] savvy2012: ors am i thinkiong about cash cow.. [16:30:44] Ysbq: {savvy2012} i guess thats cash cow [16:30:53] savvy2012: ok [16:31:10] Ysbq: so STAR needs to be build [16:31:17] Ysbq: is not that the casee [16:31:30] ms1689: {Ysbq} yes build what they already got [16:31:55] Ysbq: build means that they stay in the same markets and invest in the same products [16:32:23] Ysbq: and seeks the benefits in the long ru [16:32:30] savvy2012: {Ysbq} yes# [16:33:29] savvy2012: in that way they are expandin on tried and tested sector without facing too much risk of entering into new markets or products [16:33:55] yaroslava: market penetration meansto in crease share by aggresively selling more of the current products to the existinbg customers possibly through inceased adverts and discounting [16:34:08] savvy2012: not having risk to waste money on reserch and development of different products which might be unseccessful [16:34:23] ms1689: {Ysbq} However, this means that they don't have a backup or replacement product (question mark) to replace the start. [16:34:30] yaroslava: but it says this segnment of the market is rapidly expanding and unexploited [16:34:50] Ysbq: so investing in products could means that they aquire a supplier to ensure better margins and then they can engage in aggresive marketing when their supply is gurrantteed after aquisition [16:35:28] Ysbq: ok lets move to critism of this plan [16:36:20] Ysbq: why should not the persue it [16:37:45] unknown: good afternoon guys [16:37:54] yaroslava: May be because we are already spending on marketing which will be a requirement for market penetration and will therefore not yield nay further income [16:38:01] yaroslava: {unknown} hello [16:38:27] Ysbq: {yaroslava} good i was also think on the same lines [16:38:49] savvy2012: {yaroslava} yeah what they spend on marketing and expansion might not justofy extra revenue earned [16:39:07] savvy2012: and might put even mnore strain on their already poor admin system [16:39:12] yaroslava: Company will have to rely on the loyalty of its customers and reputation but that may not help in the longterm [16:39:27] yaroslava: {savvy2012} {Ysbq} true [16:39:59] savvy2012: if whole electronics indutry suffers downturn then they have no backup plan , no divesrification [16:40:08] Ysbq: yeah as new entrants enter the market the profit margins would errode [16:40:30] savvy2012: say if there is recession and customers start buying cheper products as they wont care paying exptra for being green or quiet any more [16:41:00] Ysbq: {savvy2012} yeah an electronic sector is highly evolving hence they are at high risk of change in technology [16:41:12] unknown: ie strict on disposable money [16:41:31] Ysbq: {savvy2012} and economic conditions [16:41:33] savvy2012: yes so their technology could become outdated or overtaken by competitors/new entrants [16:41:53] Ysbq: ok lets move on to nezt strategy [16:42:31] savvy2012: selling more green computers to home customers might make them fall out with business customers [16:44:15] Ysbq: {savvy2012} yeah good point [16:44:23] Ysbq: {savvy2012} have u heard on cannabalism [16:44:33] yaroslava: that means employing a generic strategy of being a differentiator,with production based on customers needs and specifications [16:44:57] yaroslava: this may enhance profitability though costs may be high [16:45:03] Ysbq: {savvy2012} is happens in business also [16:45:05] savvy2012: lso once lots of customers have green computers there might be less and less demand as there will be less people neededing a replacement computer [16:45:44] savvy2012: {Ysbq} cannabalism is when people eat people? lol [16:46:17] yaroslava: As we said earlier taking over a supplier will guarantee greenwich supplies and hence not worry about logistic issues [16:46:31] Ysbq: very right but in business it also happen when sales of ones segments lower the sale of other segment of related good [16:46:35] Ysbq: good [16:46:39] yaroslava: and lack of resource of supplier price hikes [16:47:18] Ysbq: so it means that sales to home user might lower sales to industrial customers in long term [16:47:22] Ysbq: LOLZ [16:47:28] yaroslava: this actually gives the company a competitive edge [16:47:34] savvy2012: {Ysbq} ok [16:48:26] Ysbq: so lets talk abt product development [16:48:45] yaroslava: how about the downside of the above [16:49:02] Ysbq: downside of product development [16:49:04] Ysbq: ? [16:49:07] Ysbq: u mean [16:49:22] yaroslava: of the strategy yes [16:49:46] Ysbq: i see u listed all the pros of product development [16:50:29] yaroslava: k move on [16:50:30] Ysbq: u could say a lot of investment in the same sector hence no risk diversification [16:51:28] Ysbq: and then, i could be hard to divest if it is specialised industry [16:51:39] yaroslava: acquisition costs and running an olready establish enterprise may have its own challenges [16:52:26] yaroslava: what will the stakeholders thing of this move? [16:52:51] Ysbq: most important that they have no manufaturing capabilty , this could lead to problesm as the operate as a trader and venturing into manufacturinng is venture into unknow plabe [16:52:57] savvy2012: guys are u discussing second option now? [16:52:57] Ysbq: place [16:53:08] Ysbq: yeah we are almost done [16:53:15] savvy2012: ok [16:53:16] yaroslava: {savvy2012} yes we have been [16:53:47] Ysbq: lets wait for a minutes so every one gets to same level [16:53:50] yaroslava: opportunity cost of the use of cash surplus [16:54:24] ms1689: are we doing pros or cons of the 2nd option [16:54:37] yaroslava: yeah [16:54:40] Ysbq: we are almost done [16:54:53] Ysbq: {yaroslava} u wanna add sth [16:55:13] yaroslava: no i am happy to move on [16:55:49] ms1689: as they already are popular with their current product, may be it is a good idea to introduce a new product to the same market [16:55:54] unknown: is it part c now [16:56:40] yaroslava: {unknown} b [16:57:18] Ysbq: ok lets move to Market develpoment [16:57:21] Ysbq: Pros [16:58:05] yaroslava: MD means offering an existing product to a new market [16:58:31] Ysbq: yeah [16:59:23] Ysbq: so they should seek more markets where the unique selling features are the same as there products [16:59:39] yaroslava: EOS may be achieved as a reult of inceased volumes and reduces the risks of greenwich reliances on a single market [16:59:41] Ysbq: like quitness, eco friendliness, and etc [17:00:19] SALINE: p4 anyone ? [17:00:57] Ysbq: infact we would say they that should target governements and industries that are working on sustainable growth technologies [17:01:21] Ysbq: so they could venture into international markets [17:01:36] yaroslava: A web service is still underdevelopment therefore prevents competition becoming established in a hitherto unexploited market [17:01:38] Ysbq: as a quality supplier [17:02:00] Ysbq: {yaroslava} yes [17:02:34] Ysbq: what else [17:03:30] yaroslava: they have unique resources and core competences and can easly be suppliers of technology which presnts a good opportunity for profitablity in the long run and being a cost leader [17:04:33] Ysbq: {yaroslava} we could use SO from TOWS here [17:05:02] yaroslava: {Ysbq} oh now i see what you meant [17:05:35] Ysbq: {yaroslava} since we can good techinical testitng team hence they could be strenght that could be used to exlpore opportuiniies [17:05:47] marymcgrath: Apologies which question? [17:05:52] yaroslava: cash{sthrenght} and therefore can take {opp} of being a supplier of tech [17:05:56] Ysbq: {marymcgrath} greentech [17:06:07] Ysbq: Q1 Part c. gonna start [17:06:15] Ysbq: {yaroslava} yeah [17:07:01] yaroslava: problems could be that of cultural issues or exchange risks shoulkd they lanch overseas [17:07:15] savvy2012: {marymcgrath} june 09 Q1 or Q50 from BPP kit [17:07:30] savvy2012: {marymcgrath} Green Tech [17:07:34] Ysbq: funny thing we have not USED SF [17:07:39] Ysbq: SFA [17:07:42] savvy2012: lol [17:07:42] marymcgrath: got it [17:08:14] Ysbq: {yaroslava} well what are the cons [17:08:29] Ysbq: oh u listed them [17:08:37] yaroslava: this where we should but part {1} of it wanted pros and cons [17:08:59] savvy2012: {Ysbq} i think all of them are feasable and acceptable and suitable [17:09:34] yaroslava: its a market we have little knowledge of maybe we should still with a position based approach not resources based [17:09:35] Ysbq: exchange rate risk , lack of knowledge to operate in new markets and political risk is also present [17:09:41] Ysbq: {savvy2012} yeah i got it [17:09:54] yaroslava: {savvy2012} yep [17:10:18] Ysbq: ok lets justify this option [17:10:20] yaroslava: now lets do the sfa test for this particular option [17:10:30] yaroslava: {Ysbq} yes [17:10:53] Ysbq: what we analyse in suitability of strategy [17:11:26] yaroslava: does this like with out current stratery? [17:12:17] Ysbq: ok we see the internal resources , economic conditons and culture on S [17:12:19] Ysbq: in S [17:12:30] yaroslava: can we build on our strgnth an grap opportunities [17:12:57] Ysbq: of course that i said in SO strategy [17:13:39] yaroslava: will this strategy fit in with our org culture? [17:14:38] Ysbq: i guess it will since it is a growth startegy and the numbers of Turnover suggest tthat the entity seeks growth and growth over the years [17:14:49] Ysbq: any one objects to that [17:14:51] Ysbq: ? [17:14:54] savvy2012: no [17:15:06] Ysbq: {savvy2012} :) [17:15:13] yaroslava: {savvy2012} go on [17:15:26] savvy2012: i said i dont object, means i agree with u :) [17:16:03] savvy2012: it also supports their "green" culture very much [17:16:21] Ysbq: economic climeate is good since the government is supportive of green technology hence it would mean that the people are also concious abt environmental factors [17:17:25] Ysbq: and internal resources , we have strenghts in testing the components to see whether they are fit for green purpose or not [17:17:46] yaroslava: this wot we score against for suitability..culture, employees,internal communications,customers,structure,finance,supplirs,competion,tech. you can pick one of these and link [17:18:00] yaroslava: {Ysbq} yes [17:18:41] Ysbq: {yaroslava} i though u were up to sth bid :D [17:18:48] yaroslava: we have a good supplier,customer base and capable employees to carry on [17:18:56] Ysbq: lets now tallk abt feasibilty [17:19:50] yaroslava: The company has a cash surplus and therefore capable of carry out a project like this one [17:19:53] Ysbq: here we gonna disucss the financial , techinical and human resources required for the operation [17:20:06] Ysbq: Guys do we have that ?????????? [17:20:59] yaroslava: we have the resources and competences and since the web service is new there is no threat of competiotn yet [17:21:22] Ysbq: ok lets move on to acceptability [17:22:04] Ysbq: it is line with the culture of the organisation [17:22:06] yaroslava: we look at reurn, risk,stake holders here [17:22:23] yaroslava: reaction [17:22:26] Ysbq: and stakeholder expectations [17:23:25] ms1689: I think the stakeholders will be happy to experience and try new market...something different [17:23:41] Ysbq: i think it is medium risk strategy and will be accpetable to shareholders as they are entering into new mmarkets with current products [17:24:16] yaroslava: our stakeholders (key players} are customers and they want out product and therefore we can contuneue to provide quality and specific requirements [17:24:32] savvy2012: and stakeholders will be happier that cash is not being underutilised and its invested to good use [17:24:41] savvy2012: and possible increased future returns [17:24:42] Ysbq: {savvy2012} yeah [17:25:11] Ysbq: idle cash errodes itself due to inflation [17:25:14] Ysbq: :D [17:25:24] yaroslava: Governemnt{keep satisfied} encourages energy efficient computers, we are in the right track [17:25:36] Ysbq: {yaroslava} yeah [17:25:38] Ysbq: i guess we are done with part b. [17:26:46] yaroslava: we have to conclude on the option..therefore passes the j&s sfa test and is justifiable to carry on...blur blur blur [17:27:47] Ysbq: part c. [17:28:12] yaroslava: this is a business Process chapter bit [17:28:23] Ysbq: i guess this is to done on self basis [17:28:28] Ysbq: {yaroslava} yeah i agree [17:28:42] Ysbq: it would involve process redesign [17:29:22] yaroslava: {Ysbq} yeah re-enginereering [17:29:47] Ysbq: ok [17:30:12] yaroslava: with a swime lane we: look for [17:30:13] Ysbq: i think re-ehgineering would be a bit excessive [17:30:25] lotte77: re-engineering or redesign? because there are different situations as I know [17:30:29] yaroslava: processes that take long [17:30:35] lotte77: re-engineering is fundamental [17:30:38] lotte77: change [17:30:42] yaroslava: are in an illogical order [17:30:54] Ysbq: {lotte77} {yaroslava} redesign [17:30:54] lotte77: and redesigning is improving [17:30:56] yaroslava: seem pointless [17:31:06] Ysbq: ok guys hold on [17:31:13] yaroslava: seem overcomplicated [17:31:37] yaroslava: rely on others to do something important [17:31:52] yaroslava: not be userfriendly [17:32:02] Ysbq: we have got there stage of change starting with the first one is process improvement , then we have redesign and in the last we have re-engineering [17:32:07] yaroslava: and upset customers [17:32:44] yaroslava: this help answer any question with a swim lane esp if you have to give a solution [17:33:02] marymcgrath: Would it be wise to redesign the whole process or just better to improve [17:33:15] Ysbq: so redesign is the option as re-engineerinng would mean to start from zero and make a new process [17:33:29] marymcgrath: I agree [17:33:37] Ysbq: {marymcgrath} ok [17:33:48] Ysbq: lets move to part c(ii) [17:34:05] Ysbq: its Paul Harmans Matrix [17:34:18] Ysbq: any one has read that [17:34:25] Ysbq: in business process change [17:34:56] savvy2012: no.. [17:35:22] yaroslava: is that scope oif change and nature of change? [17:35:26] Ysbq: ok so we need to study it before attemptin it [17:35:31] Ysbq: leave this part [17:35:48] Ysbq: we will do on sat after discussing the matric [17:35:57] yaroslava: {Ysbq} wjch is it? [17:36:20] yaroslava: Harmon? [17:36:41] Ysbq: {yaroslava} same on the one that involve the scope of change and the strategic importance [17:36:45] Ysbq: {yaroslava} yeah [17:37:05] yaroslava: Harmno is outsourcing [17:37:18] yaroslava: ok lets move on [17:37:32] Ysbq: lets move to Q2. [17:37:48] Ysbq: READING TIME 10 MINUTES [17:37:53] Ysbq: Starts now [17:38:06] savvy2012: whats it called please? [17:38:07] Ysbq: Rock bottom [17:38:14] savvy2012: i dont want to read wrong Q again :) [17:38:15] yaroslava: please guys read business process, i ve not seen a question without it plus e-issues [17:38:17] savvy2012: ok thanks [17:38:38] Ysbq: {yaroslava} exaclty i it is an important topic [17:55:24] Ysbq: ok guys are u done reading [17:55:30] marymcgrath: yes [17:55:35] Ysbq: ok [17:55:36] yaroslava: yes [17:55:44] lotte77: yes [17:56:20] Ysbq: PART (a) [17:56:46] Ysbq: this question is about life cycle model [17:57:00] Ysbq: lets discuss Stage q [17:57:05] Ysbq: Stage 1 [17:57:59] yaroslava: success? [17:58:05] yaroslava: or together with fauilure? [17:58:11] lotte77: succes [17:58:11] Ysbq: ? [17:58:13] marymcgrath: Success could be due to his high profile, which results in the publicised of his company [17:58:41] Ysbq: nooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo it is introduction and Growth [17:58:54] marymcgrath: ok [17:59:16] Ysbq: life cycle model any one remebers :D [18:00:05] marymcgrath: Ansoff's growth matrix [18:00:12] lotte77: introduction, development, growth, maturity, decline [18:00:13] yaroslava: I think this is not abt the cycle becoz all phases he does something different..here we a doing a generic strategy for the first one i think [18:00:26] Ysbq: {lotte77} yeah [18:00:42] Ysbq: ok guys i think lets read the suggested answers [18:00:43] ms1689: introduction of cheap and economical product [18:01:11] Ysbq: since we all are confused it seems [18:01:22] yaroslava: please lets not, we cant learn anythin like that we need to try and answer then read [18:01:53] lotte77: I see no clue leading to life cycle model to be used here [18:02:12] Ysbq: {yaroslava} ok read the stage 1 and analyse it with repect to llife cycle [18:02:13] marymcgrath: yes me too [18:02:21] yaroslava: basicall you are saying what made him suceed in 1965-1988 and then talk abt his HRMgt stlye [18:02:54] yaroslava: there are about three topics involved in here and each phase represents one [18:03:06] lotte77: true [18:03:18] Ysbq: it is in growth stage and hence higher profts and higher growth rate [18:03:47] Ysbq: so the csf in this stage is ensuring more and more stores [18:03:57] Ysbq: high capital investemnt [18:04:16] yaroslava: so first its he chooses Japaneese instead of domestic, it he a cost leasder, diid that help? then wot did he do after that that went wrong? [18:04:51] Ysbq: the industry started to mature [18:05:05] lotte77: he did not create entry barriers to competitiors [18:05:09] Ysbq: and the porducts started to lack there lustre [18:05:22] yaroslava: {lotte77} yeah like that [18:05:34] marymcgrath: New products came to market [18:06:17] Ysbq: ok i might be the odd one here , so u can attempt the answer in any way , u just have to justify the examiner [18:06:19] ms1689: 80% of sales was music centres where rock music in the 80s was popular [18:06:55] Ysbq: lilke what happened to walkmans [18:07:17] yaroslava: he was selling sofisticated Japanees stuff which was all cheap and allowed his team to express themselves{morden stlye leadership} contributed to his sucess in this phase [18:07:37] Ysbq: {yaroslava} ok [18:07:40] lotte77: I think phase one is very straight forward regarding his success [18:08:06] yaroslava: IN 1980success reduced because of new competition [18:08:28] yaroslava: marking his products standerd as they were similar [18:08:32] Ysbq: {yaroslava} yeah so that was the shakeout stage or maturity [18:09:06] yaroslava: thus losing EOS to be a STUCK IN THE MIDDLE company [18:09:38] Ysbq: ok what ever the argument we can use life cycle model to study the industry in which the Rock Bottom is operating [18:09:57] yaroslava: yes please [18:10:06] ms1689: he was both CEO and Chairman which can lead to dominance by one person [18:10:25] Ysbq: {ms1689} we are discussing stage one [18:10:28] yaroslava: phase one can use life clycle i agree [18:10:33] Ysbq: ok [18:10:34] ms1689: oh [18:11:07] Ysbq: ok why did they succeeded at first stage [18:11:08] Ysbq: ? [18:11:13] Ysbq: any one [18:11:25] marymcgrath: cheaper products [18:11:28] lotte77: specialisation in the sale of electrical goods introducing imported Japanese products which compete with domestic products [18:11:29] yaroslava: They were a cost leader [18:11:43] yaroslava: cheaper products, EOS [18:11:50] Ysbq: yeah [18:12:08] yaroslava: Beat local competition and they were innovative [18:12:13] lotte77: employment of young people which understood capabilities of products [18:12:15] Ysbq: infact they are selling hybrid procuts [18:12:23] yaroslava: Morden stlye leadership [18:12:36] yaroslava: {lotte77} yes [18:12:47] Ysbq: the age of ROCk music, beatles and stuff lead to greater sales [18:12:56] yaroslava: {yaroslava} understood the proct [18:13:06] Ysbq: lolz [18:13:11] ms1689: charismatic boss and encourages store managers to input their own style [18:13:32] Ysbq: good direction and management style to drive growth [18:13:34] lotte77: segmentation [18:13:45] yaroslava: {ms1689} emp;loyees were motivated to express themselves with the product [18:13:45] Ysbq: yeah [18:13:57] ms1689: yes [18:14:06] Ysbq: does any one listen to beatlles here? [18:14:19] lotte77: the company had a functional structure easy to be controlled [18:14:19] ms1689: yep [18:14:26] marymcgrath: good salaries and generous bonus scheme [18:14:28] Ysbq: oh good [18:14:57] yaroslava: Salaries, bonuses and outomony...i would have worked for this guy,,he throw money to employees like candy [18:15:11] yaroslava: Failures? [18:15:20] Ysbq: yeah [18:15:23] Ysbq: failures [18:16:13] yaroslava: Competition on similar products mearnt that the product became standard and hence knowlegeable customers will not pay more [18:16:52] yaroslava: Heard of stuck-in- the -middle? [18:16:57] ms1689: he was only specialising into electronic goods so when the domestic companies entered into this market, customers can easily swayed into the domestic companies where they can find a wide range of goods as well as electronic goods [18:16:59] lotte77: there is no evidence of performance indicators for managers evaluation since they were highly rewarded [18:17:01] Ysbq: {yaroslava} yeah they forgot to open specialised sections [18:17:08] Ysbq: {lotte77} yesh [18:17:30] yaroslava: thus the market became perfect taking given market prices,,no monopoly on prices [18:17:38] Ysbq: so this means that they have failed to undertake customer analysis for segementation purposes [18:18:12] Ysbq: ok lets move to Stage 2 [18:18:36] ms1689: he changed his style [18:18:44] ms1689: to satisfy the banks [18:18:54] yaroslava: Heins became less flamboyant..which was what made his sucesseful in the first place, so as to please the Banks who probably didn take them seriously [18:19:04] yaroslava: {ms1689} yes [18:19:32] ms1689: {yaroslava} please banks but lose customers [18:19:36] Ysbq: lets start from addressing the external enviroment of industry then we will get back to company [18:19:50] yaroslava: {ms1689} yeah silly man [18:20:10] marymcgrath: There in the maturity produce stage [18:20:23] Ysbq: the industry was in maturiy satge and the market share was declinign [18:20:38] ms1689: {yaroslava} listening to banks is a tip to recession [18:20:39] yaroslava: {Ysbq} true [18:20:58] yaroslava: {ms1689} these days haha [18:21:02] Ysbq: lets now talk about the internal factors [18:21:08] Ysbq: of ROck Bottom [18:21:09] ms1689: no barriers to new entrants [18:21:24] Ysbq: the comapny did not invest in R&D [18:22:14] yaroslava: thier sthength was the outrageous qualities that put them up--human resource management [18:22:47] Ysbq: the company was unable to diversify and retain its human capitall [18:22:50] lotte77: he was already in maturity stage, and he did not focus on introduction of new products [18:22:52] nyzfynest786: interesting [18:23:12] Ysbq: {lotte77} yeah since we there was no R&D [18:23:14] Ysbq: :d [18:23:24] lotte77: true :) [18:23:34] Ysbq: the culture could be also the factor [18:23:38] lotte77: he wasted the money [18:23:46] ms1689: he was very excited with his current status and did not plan ahead [18:23:48] yaroslava: didn not have a strategy for suitaining a competitive advantage, used threshold resources and competences that the competition we able to replicate [18:24:00] Ysbq: yeah he had incompitable roles of both CEO and Chairman [18:24:15] marymcgrath: the culture changed [18:24:31] Ysbq: this means that he did not liked to be suuugested for new business avenues [18:24:35] yaroslava: {Ysbq} thus for phase two..question wants us to do them in phases [18:24:55] Ysbq: yeah :) [18:25:00] lotte77: he was more focused to fit to the new financial and reporting requirements then developing new strategies [18:25:03] ms1689: are we doing phase 1 or 2 [18:25:10] lotte77: 2 [18:25:21] yaroslava: lets go to phasse two before we stray [18:25:40] ms1689: controls became more central and formal and the store managers can't handle it [18:26:36] yaroslava: Francising is the topic..why ways this strategy a success? [18:26:46] Ysbq: the listin of company led to problems as the company could be argued to be subject to tighter code of corporate rules [18:27:19] marymcgrath: he lost control and didn't like it [18:27:24] ms1689: criticisms fom the media ...bad reputaion [18:27:25] Ysbq: yeah [18:28:17] ms1689: extravagant spending in partying and gifts [18:28:51] Ysbq: one more factor we invested in same markets whihc had no prospects of growth [18:28:56] Ysbq: dumb wit [18:29:01] yaroslava: Franchising meanrt that he could collect rayalties, the fee and control the francisee activities [18:29:27] marymcgrath: where in the past he was known for his outrageous stunts, he is now been shown up for his large salary [18:29:29] Ysbq: but we went into expansion in a matured market , not a wise startegy to persue [18:29:54] Ysbq: lack of performance related pay [18:30:00] Ysbq: in the organisations [18:30:09] yaroslava: but providing resources in terms ofmaterial, r&d and protecting image could be a cost [18:30:18] Ysbq: yeah [18:30:25] yaroslava: {Ysbq} yes [18:30:27] Ysbq: lets move on to stage 3 [18:30:31] ms1689: he was a bit inexperienced in business and company development as he was fresh from uni when he started Rockbottom [18:30:43] Ysbq: STAGE 3 [18:32:07] Ysbq: lack to business startegy in place to provide direction and the business was in decline stage where it should be divested , and amazing we delisted the company and bought it back [18:32:08] Ysbq: lolz [18:32:10] yaroslava: To be acquired, meant not having to worry about financial issues but being made private after having been listed meant the company is not known again [18:32:24] Ysbq: we=he [18:32:51] ms1689: change of culture in the business world...his store managers did not like his style. It worked in the 60s, 70s but not anymore [18:33:10] Ysbq: then the big blow came, the invest for technology and they he was dooomed [18:33:40] marymcgrath: again he was extravagant with his money [18:33:49] lotte77: he lost capabilities due to his bad reputation [18:34:09] Ysbq: since he did not forsee the change in technology that would impact the business and change the business of music on fundamental basis [18:34:15] Ysbq: {lotte77} yes [18:34:45] Ysbq: so we failed to keep up with the changing markets trends and tastes [18:34:53] Ysbq: we=he [18:34:59] lotte77: there is no innovation, no market research, no customer oriented [18:35:30] Ysbq: exactly lack of marketin research and customer analysis [18:35:39] yaroslava: using his own personal fortune to re-acquire for shareholders means he does not differentiate himself from the company and also spending on parites shows lack of focus and unstandanding the co's strategy [18:36:09] Ysbq: guys have u read my comment for divestement [18:36:11] ms1689: luck of respect from his own staff [18:36:19] marymcgrath: he too lost focus [18:36:41] yaroslava: so what are his leadetship qualities in this phase? [18:37:06] ms1689: {yaroslava} self oriented, dominant soul [18:37:13] Ysbq: autocratic [18:37:24] marymcgrath: he didn't move with the market or technology, he became autocratic [18:37:40] Ysbq: assertive and rigid [18:37:45] yaroslava: {Ysbq} {ms1689} yes please [18:38:12] Ysbq: ok ok [18:38:25] ms1689: he was like a lost dog [18:38:25] Ysbq: lets move to part b [18:38:27] yaroslava: here they competely failed there is not element of sucess [18:38:36] Ysbq: {ms1689} ok ok [18:38:40] Ysbq: PART b. [18:38:48] Ysbq: this is an easy one [18:38:51] yaroslava: {ms1689} lost dog indeed [18:39:23] Ysbq: guys lets finish it i need to go with my friends [18:39:29] Ysbq: PART b. [18:39:56] yaroslava: so feasiblity in 1988 then [18:40:00] marymcgrath: in 1988 Rock Bottom was a thriving sucessful business [18:40:03] savvy2012: {Ysbq} you need to go throw a big party just like Hein :D [18:40:07] lotte77: in 1988 he had a good reputation so others were interested in franchising [18:40:15] lotte77: :)) [18:40:16] Ysbq: {savvy2012} lolz [18:40:56] yaroslava: had an established brand and therefore goodwill to help maintain a customer base [18:40:58] Ysbq: well i cannot affoord celebrities flying in at this stage of life :D [18:41:03] Ysbq: {yaroslava} yes [18:41:14] savvy2012: franchising could make brand even bigger creating bigger barriers to entry for competitors [18:41:16] yaroslava: Good Human mangement stlye [18:41:27] savvy2012: {Ysbq} lol [18:41:30] ms1689: {savvy2012} his company was popular and other would happly represent him [18:41:49] savvy2012: {Ysbq} i can dress as Ricky Martin and Yaro can dress as Britney Spears [18:41:52] yaroslava: Innovation..outrageous and employing competent young blood [18:42:08] yaroslava: {savvy2012} bet i will look fab [18:42:15] savvy2012: lol [18:42:18] johnclarke: peraly2 : hello [18:42:23] yaroslava: {savvy2012} and sell more [18:42:48] lotte77: customers were loyal to the company [18:42:55] lotte77: in 1988 [18:43:02] yaroslava: {lotte77} yep [18:43:08] Ysbq: the business was in Growth stage so the CSF at Growth stage is making the product available everywhere and huge capital investment is required , hence franchisin would help gain requisite capital while ensuring same quality [18:43:19] johnclarke: pearly2 : its says you don't accept private messages [18:43:53] yaroslava: The company had EOS and a competitive edge [18:44:26] Ysbq: while in 2008 we have decline stage and hence investment is a blunder as the products are going out the consumer tastes and trends [18:44:32] yaroslava: Ok why would the same statergy not work in 2007? [18:44:39] savvy2012: they could have used money raised by franchising to diversify into different markets or into R&D [18:44:52] marymcgrath: In 2007 the business has declined due to new products available on the market, Rock Bottom is in decline stage [18:45:05] Ysbq: {marymcgrath} yeah [18:45:28] ms1689: {yaroslava} it is in the dog stage and no one would be interested in it [18:45:36] Ysbq: yes [18:45:40] yaroslava: Hein's reputation demaged business already here [18:45:44] Ysbq: ok [18:45:58] ms1689: besides there are other companies who offer the same product [18:46:34] Ysbq: Enough for 7 marks [18:46:53] ms1689: {Ysbq} are we late for z party? [18:47:33] yaroslava: they ceased trading..simplie!!!!! [18:47:39] savvy2012: in 2007 he only started to become successful again because of internet sales and there would be no point selling stores franchises as they were still unsuccessful [18:48:13] savvy2012: by the way what does "plummeted" mean? is it go up or down?? [18:48:25] Ysbq: ok Guys thanks a lot for participartion , well if u could fly in my place , time would not matter for the party, since here the city sleeps after 0200 am :D [18:48:25] yaroslava: they we being acquired and the acquirer might have had a different strategy to thiers [18:48:46] yaroslava: thank [18:48:47] savvy2012: {Ysbq} are in in Mauricius? [18:48:56] Ysbq: :no: [18:48:59] Ysbq: gtg [18:49:00] lotte77: thank you for today [18:49:03] savvy2012: {Ysbq} where? [18:49:08] savvy2012: im coming, wait :D [18:49:09] ms1689: {Ysbq} we have miserable weather here in the UK [18:49:21] marymcgrath: same here in Jersey [18:49:28] savvy2012: {lotte77}thanks a lot for session! could we please solve dec 09 next since i read the scenario lol [18:49:30] Ysbq: well u would not get the visa that quickly lolz [18:49:32] yaroslava: cheers guys, whats the next question for saturday? [18:49:48] Ysbq: guess/.... [18:49:52] savvy2012: {Ysbq} i can photoshop my passport [18:50:04] yaroslava: that sghould be the next plus question 2 [18:50:13] yaroslava: {savvy2012} yes [18:50:23] yaroslava: {Ysbq} do you agree? [18:50:29] ms1689: have we done dec09? [18:50:31] Ysbq: we are gonna do some discusion on business change on sat [18:50:33] savvy2012: no [18:50:38] savvy2012: ok [18:50:55] Ysbq: and attempt the questions we left today [18:50:58] savvy2012: {Ysbq} you are a good teacher :) [18:51:04] yaroslava: {Ysbq} i think we should do questions dude [18:51:05] marymcgrath: Thanks for todays session, what time on saturday [18:51:14] Ysbq: PLS. Keep checking the forums for details [18:51:16] savvy2012: {Ysbq} which questions?? [18:51:23] marymcgrath: ok [18:51:39] Ysbq: bye guys thanks alot once again