SEMESTER-II

Subject Name : Business Transformation

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INSTRUCTIONS

a) Students are required to submit all three assignment sets.

ASSIGNMENT DETAILS MARKS

Assignment A Five Subjective Questions 10

Assignment B Three Subjective Questions + Case Study 10

Assignment C 40 Objective Type Questions 10

b) Total weightage given to these assignments is 30%. OR 30 Marks c) All assignments are to be completed as typed in word/pdf. d) All questions are required to be attempted. e) All the three assignments are to be completed by due dates and need to be submitted for

evaluation by Amity University.

f) The students have to attached a scan signature in the form.

Signature : _________________________________

Date : _________________________________

( ) Tick mark in front of the assignments submitted

Assignment

A Assignment B Assignment C

Business Transformation

Assignment A

Q . 1 B us i n es s t r ans fo r ma t i on bu i ld s on t h e dynamic interplay among value, complexity, and

change. What are the major considerations that usually revolve around any transformation process?Also

Discuss the various types of Business Transformation.

Q . 2 Write short Notes on

a) Business Model Innovation b) Incremental Strategy Development c) Elements of Strategic Decision-making Process

Q . 3 a ) How does Environmental Scanning using SWOT ,can keep a close watch over environmental

factors that affect your start-up and prepare adequately to face the emerging challenges?

b ) VRIO is an acronym for the four question framework. Discuss the Questions which can help a firm attain the competitive Advantage.

Q . 4 a ) What are critical questions answered by corporate-level strategists. Discuss the various types of

Corporate Strategies and how does Stricklands Grand Strategy Selection Matrix help in Making strategic Choices?

b) Differentiate between BCG and GE Matrix. Also cite the demerits of BCG matrix in brief.

Q . 5 Organizational structures imply formal relationships with well defined duties and responsibilities. Discuss the various types of Organizational Structures.

Assignment B:

Q . 1 Explain the term Strategic Decision Making .Do you agree that in Strategic decision making

situations-Options are consequential, situations may not have clear cause-and-effect outcomes. Q . 2 The balanced scorecard suggests that we view the organization from four perspectives, and to

develop metrics, collect data and analyze it relative to each of these perspectives. Explain the same with

the help of example and relevant model

Q . 3 . The understanding for any business is that its core competency is rooted in the process of

transformation itself, rather than being focused rather narrowly on competitive advantage in service or

delivery of product. Comment.

C a s e S tud y

Section - C : Compulsory question

Nestl (NESN) has long been known for making chocolate treats for the common man. Think Kit Kat or Crunch

bars. But demand for pricier premium chocolates is growing faster than that of plain old candy. So the Vevey

(Switzerland)-based company has devised a novel strategy to move up the value chain: customized confections.

Internet shoppers in Switzerland and Liechtenstein can now order a taster pack from Nestls Maison Cailler

line of expensive Swiss chocolates. After nibbling the samples of five kinds of Ecuador-sourced chocolate with

various cocoa content, consumers complete an online survey to determine their chocolate personality. They

then can order larger boxes of the candies, marrying their favored chocolate with preferred fillings ranging from

peppercorn and vanilla to raspberry and verbena.

The bespoke chocolate experience doesnt come at Baby Ruth prices. A 16-piece box of the Maison Cailler

chocolates costs 26 Swiss francs ($28.30). Thats just 128 grams of chocolate, or slightly more than 4 ounces,

so these custom sweets price out to more than $100 a pound. Yet such luxe pricing can succeed even amid the

economic downturn, says Laurent Freixe, head of Nestls European business. It may sound counterintuitive,

but whats happening in the [financial] crisis is a quest by consumers for value, for more-affordable product, but

also for products that overtake their expectations.

In high-end chocolate, Nestl hopes to mimic a strategy it used to build demand for its Nespresso capsule,

which helped create the luxury home-coffee market. That single-serving espresso-maker business began in only

two countries in 1986, with Nestl introducing online sales in the 1990s and stores in 2002. Now its a 3 billion

Swiss franc ($3.3 billion) brand, with about half its sales coming from the Internet and more than 250 boutiques

worldwide. Nestl already has tried its hand at other premium, customized goods. The company in 2011 began

selling BabyNes formula milk capsules, which fit its own $272 single-serving machine. A year earlier it debuted

pricey Special.T pods containing top-quality tea in France.

While Kit Kat bars are the worlds ninth-biggest chocolate brand, according to Euromonitor International, the

company has had mixed success in the premium sweets segment in the past. Nestl, which merged with Cailler

in 1929, sought to revamp the brand in 2006 with higher prices and packaging designed by architect Jean

Nouvel. The overhaul was scrapped after it failed to boost revenue. Cailler still isnt well-known outside of

Switzerland, with only 8 percent of sales coming from abroad. Nestl is a strong player in the mass-market, but

in the premium segment, it doesnt have a strong reputation, says Patrick Hasenboehler, an analyst at Bank

Sarasin in Zurich.

Chocolate producers including Swiss rival Lindt & Sprngli Group (LISP) already sell online, but only for

standard products. Bespoke chocolate is generally sold by niche chocolatiers. Maison Caillers online store will

generate the bulk of its revenue, although some sales will come from a boutique in Broc, Switzerland, home to

the 193-year-old Cailler brand. Nestl plans to expand the custom candies to neighboring countries beginning

next year. The big objective is to make it sustainable, make it something which will enter into consumption

habits and which will not be just a one-off, Freixe says.

C a s e S tud y Qu es t io ns

Q.1 Discuss the Value Chain adopted by Nestle to enhance Value for its Target Audience while competing with

their counterparts?

Q.2. Nestl does a big business in low-priced candy bars. Now its selling $100-a-pound chocolates customized

to buyers personal tastes. Comment on the Generic Business Strategy followed here.

A s s ign men t C (4 0 Mul t i p l e ch o i ce q ues t i ons )

1

A tendency of individuals to

adopt the perspective of the

group as a whole. It occurs when

decision makers dont question the underlying assumptions. Think Tank Group Think

Out of Box

Thinking

Questionable

Thinking

2

Clusters of firms within an

industry that share certain critical

asset configurations and follow

common strategies.

Strategic

Business Units

Strategic

Groups

Sectoral

Groups Rival Groups

3

Focus the firms efforts and resources in one industry. Diversification Concentration Integration Outsourcing

4

The costs incurred when a buyer

switches from one supplier to

another. Fixed Costs

Switching

Costs Transfer Cost Variable Costs

5

Aggressiveness in Pricing by a

firm against its rivals with the

intent of driving them out of

business.

Penetration

Pricing

Predatory

Pricing Skim Pricing Mark Up Pricing

6

Factors that reduce entry of new

players or entrants into an

industry. Exit Barriers Entry Barriers

Mobility

Barriers

Defensive

Barriers

7

To monitor, evaluate and

disseminate information from the

external environment to key

people within the firm.

Information

Sharing

Environmental

Scanning Data Churning Data Mining

8

An unfavorable trend or

development in the firms external environment that may

lead to an erosion of the firms competitive position. Weaknesses Threats Strengths Opportunities

9

statements indicating the

desired strategic future for the

firm Purpose Vision Mission Objective

10

The rate over time at which

innovations are copied by rivals Learning Curve

Diffusion

Curve

Life Cycle

Curve

Innovation

Curve

11

Looking inside the business and

identifying strengths and

weaknesses of the firm

External

Appraisal

Internal

Appraisal

SWOT

Analysis ETOP Analysis

12

Each product and enterprise is

considered as an individual

responsibility center for purposes

of strategy formulation.

Parenting

Anlaysis

Portfolio

Analysis

Pareto

Analysis PEST Analysis

13

Individuals and groups inside and

outside the firm who have an

interest in the actions and

decisions of the firm. Shareholders Stakeholders

Human

Capital Directors

14

A checklist of questions that

provide an assessment of a firms strategic position and

performance.

Strategic

Schedule Strategic Audit

Strategic

Questionnaire

Strategic

Accounting

15

Unplanned strategy that emerge

from within the organization

intended

Strategy

Emergent

Strategy

Deliberate

Strategy

Realised

Strategy

16

The development of long-range

plans for the management of

environmental opportunities and

threats, in light of the firms

strengths and weaknesses.

Strategy

Formulation

Strategy

Analysis

Strategy

Implementatio

n

Strategy

Evaluation

17

Compares performance with

desired results and provides the

feedback for management to

evaluate results and take

corrective action.

Strategy

Controls

Strategy

Objectives

Strategy

Actions

Strategy

statements

18

A strategy serving a specialized

part of the market Focus

Cost

Leadership Differentiation

Best Solution

Provider

19

The process by which strategies

and policies are put into action

through the development of

programs, budgets, and

procedures.

Strategy

Implementation

Strategy

Evaluation

Strategy

Formulation

Strategy

Analysis

20

Fit between what the

environment wants and what the

firm has to offer Strategic Fit

Strategic

Direction

Strategic

Disparity

Strategic

Balance

21

Where one firm has full

ownership and control over all

the stages in the production of a

product Full integration

Taper

Intergration

Quasi

Integration

Horizontal

Integration

22

A portfolio planning model based

on analysing the relative market

share and market growth rates for

a companys products and/or strategic business units BCG Matrix

Probability

Matrix PIMS Matrix GE Matrix

23

These units typically generate

cash in excess of the amount of

cash needed to maintain the

business. They are regarded as

staid and boring, in a "mature"

market, and every corporation

would be thrilled to own as many

as possible. Cash Cows Dogs Stars Question Marks

24

The business unit has low market

share compared to competitors,

however it is doing business in

high-growth market. Most of the

new businesses start in this

quadrant. There are well

established businesses in this

market and new businesses try to

grow and capture more market

share. This market is growing

and there are opportunities for

new businesses. Question Marks Cash Cows Dogs Stars

25

GE Matrix compares different

products or businesses on

"Business Strength" and "Market

Attractiveness" variables and in

addition the size of the bubbles

represents the market size.It is

also known as

Multifactor

Portfolio

Analysis Model ETOP Model Hofer Model Ansoff Model

26

It is a collection of businesses

ranging from primary producers,

processors, distributors and

retailers that progressively create

consumer value in a specific

market segment. Value chain Supply Chain

Distribution

Chain Food Chain

27

It is positive disposition of a

customer toward a particular

enterprise. It however, also

includes intangible assets or

qualities of the company, or its

management, that cause people to

hold the company in high regard. Goodwill Patents Copyrights Competencies

28

It is the return of information

about the impact of an activity. In

other uses it can also mean the

return of a portion of the output

of a process as new input. Feedback

Reverse

Logistics

Reverse

Information Relative Input

29

These are resources under the

control of an enterprise that are

typically non-physical and not of

a monetary nature, and that are

critical for the success of the

business. These resources include

things such as brand image,

customer and employee loyalty,

quality of business relationships,

social standing

Intangible

Resouces

Tangible

Resources

Valuable

Resources

Human

Resources

30

It is an organization that is able

to adapt to change, move

forward, and transform itself by

acquiring new knowledge, skills,

or behaviors.

Learning

Organisation

Lean

Organisation

Flat

Organisation

Tall

Organisation

31

It is a cost/benefit comparison of

the cost of an investment or

activity compared with the

financial and/or non-financial

benefits that result. Cost of Return

Cost of

investment Break Even

Return on

Investment

32

A _________ is appropriate

where the target customer

segment is not price-sensitive,

the market is competitive or

saturated, customers have very

specific needs which are possibly

under-served, and the firm has

unique resources and capabilities

which enable it to satisfy these

needs in ways that are difficult to

copy

Best Solution

Strategy Focus strategy

Cost

Leadership

Strategy

differentiation

strategy

33

A _________ should target

market segments that are less

vulnerable to substitutes or where

a competition is weakest to earn

above-average return on

investment.

Best Solution

Strategy

Cost

Leadership

Strategy

differentiation

strategy focused strategy

34

The Primary Activities of the

Value Chain which are the

transformation activities that

change inputs into outputs that

are sold to customers. Here, your

operational systems create value. Operations Logistics Marketing

Customer

Service

35

These are all the processes

related to receiving, storing, and

distributing inputs internally.

Your supplier relationships are a

key factor in creating value here.

Inbound

Logistics

Outbound

Logistics Warehousing Transportation

36

These are a company's support

systems, and the functions that

allow it to maintain daily

operations. Accounting, legal,

administrative, and general

management are examples of

necessary infrastructure that

businesses can use to their

advantage. Infrastructure

Human

Resource

Management Procurement

Research and

Technology

37

Restitching business portfolio according to changes in market

requirements allows corporate

managers to focus on the best

market opportunities. Patching Co evolving Regeneration Refocus

38

Ability of two or more business

units to generate greater value

working together than they could

working apart, synergy has its

sources in shared resources,

knowledge and skills,

coordinated strategies, vertical

integration or establishing

internal alliances in enterprise Co-Evolution Diversification Differentiation Business Splits

39

It is usually a restructuring plan

and is adopted when a turnaround

has been attempted but has

proved to be unsuccessful or it

was ignored. Divestment

Captive

Company Bankruptcy Stability

40

It is any combination of Data,

Information, and Knowledge

concerning the Business

environment in which a company

operates that, when acted upon,

will confer a significant

Competitive advantage or enable

sound decisions to be made

Action with

Intelligence

Innovation with

Intellegence

Business

Intelligence

Business

Decisions